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			811-03692
Morgan Stanley Variable Investment Series
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York					10036
(Address of principal executive offices)					(Zip code)
John H. Gernon 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code:				212-296-0289
Date of fiscal year end:	December 31,
Date of reporting period:		June 30, 2015

Item 1 - Report to Shareholders

MORGAN STANLEY
VARIABLE INVESTMENT SERIES

Semi-Annual Report

JUNE 30, 2015

The Portfolios are intended to be the funding vehicle for variable annuity contracts and variable life insurance policies offered by the separate accounts of certain life insurance companies.

Morgan Stanley Variable Investment Series

Table of Contents

Letter to the Shareholders	1
Fund Performance	10
Expense Examples	11
Investment Advisory Agreement Approval	14
Portfolio of Investments:
Money Market	18
Limited Duration	22
Income Plus	31
European Equity	42
Multi Cap Growth	45
Financial Statements:
Statements of Assets and Liabilities	50
Statements of Operations	52
Statements of Changes in Net Assets	54
Notes to Financial Statements	58
Financial Highlights	90

Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)

Dear Shareholder:

Asset class performance was mixed in the six-month period ended June 30, 2015, with U.S. stock and bond markets struggling, while international equities staged a rebound. Investors continued to keep a watchful eye on central bank policies as global economies remained on diverging paths and inflation remained subdued. The U.S. Federal Reserve (Fed) was expected to begin raising interest rates for the first time in nearly a decade, and the European Central Bank (ECB) announced a long-awaited quantitative easing (QE) stimulus plan. Financial markets also continued to adjust to significantly lower oil prices and a stronger U.S. dollar relative to major currencies.

Domestic and International Equity Overview

A soft patch in the U.S. economy, uncertainty about monetary policy changes, lower oil prices and a stronger U.S. dollar kept a lid on U.S. stock market gains during the six-month period ended June 30, 2015. Economic growth contracted in the first quarter of 2015, which analysts attributed to cold winter weather and a port strike in the western U.S. Although these influences were considered to be temporary and growth was expected to rebound in the second quarter (second quarter gross domestic product data were not yet released at the time of this writing), the economy's overall weakness caused the Fed to reassess its outlook and delay the "normalization" of interest rates. Investors also worried about U.S. corporate earnings growth, as lower oil prices continued to weigh on energy companies' share prices and appreciation in the dollar diminished multinationals' earnings. In this environment, the utilities sector, which investors consider to be sensitive to interest rates, and the energy sector were among the weakest performing groups for the period. Conversely, the health care sector posted a robust gain, bolstered by an increase in merger and acquisition activity across the sector.

International equities generally fared better than their U.S. counterparts, with both the MSCI EAFE Index and MSCI Emerging Markets Index outperforming the S&P 500 Index for the period. European equities posted a strong return (as measured by the MSCI Europe Index), fueled by the ECB's policy intervention (QE plan announced in January) and an improving economic outlook for the region. Toward the end of the period, however, the market lost a bit of its positive momentum, as a worsening of the Greek debt crisis increased the risk of Greece possibly exiting the euro. In general, cyclical sectors outperformed more defensive ones, with autos, diversified financials and media outperforming the Index, while technology, utilities and energy underperformed during the reporting period.

Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

Fixed Income Overview

Concerns about the Fed's policy shift kept bond markets turbulent during the period. Although the Fed continued to imply that rate increases would be implemented slowly and over time, bond markets remained jittery about the transition, particularly as jobs market data continued to show improvement.

The Treasury market was up in the first quarter of 2015 but gave back some of its gains in the second quarter. Greece's debt woes intensified, which led Treasury bonds to rally at several points during the period as investors sought the perceived safe haven of U.S. government bonds. However, these rallies were outweighed by concerns about the Fed's imminent rate hike, pushing Treasury yields higher for the six-month period overall (bond prices and yields move in opposite directions).

In the corporate credit markets, the investment grade segment performed poorly for the period overall. The investment grade market has been flooded with new issuance in recent months as corporations seek to refinance debt in the still-low interest rate environment, putting downward pressure on prices. However, high yield bonds were one of the few fixed income sectors with positive performance over the period. Investors' preference for bonds with less perceived interest rate sensitivity benefited the high yield market.

Money market yields continued to be constrained by the Fed's near-zero interest rate policy. The actions of the Federal Open Market Committee (FOMC) — including the testing of the tool designed to help control short-term interest rates, the tapering of its QE program, and the forthcoming rate increase — continued to be a major focus in the money markets.

Money Market Portfolio

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in such funds.

As of June 30, 2015, Variable Investment Series – Money Market Portfolio had net assets of approximately $56.3 million with an average portfolio maturity of 16 days. For the seven-day period ended June 30, 2015, the Portfolio's Class X shares provided an effective annualized yield of 0.01% (subsidized) and -0.56% (non-subsidized) and a current yield of 0.01% (subsidized) and -0.56% (non-subsidized), while its 30-day moving average yield for June 30, 2015 was 0.01% (subsidized) and -0.59% (non-subsidized). Yield quotations more closely reflect the current earnings of the Portfolio. The non-subsidized yield reflects what the yield would have been had a fee and/or expense waiver not been in place during the period shown. For the six-month period ended June 30, 2015, the Portfolio's Class X shares returned 0.00%. Past performance is no guarantee of future results.

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Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

For the seven-day period ended June 30, 2015, the Portfolio's Class Y shares provided an effective annualized yield of 0.01% (subsidized) and -0.81% (non-subsidized) and a current yield of 0.01% (subsidized) and -0.81% (non-subsidized), while its 30-day moving average yield for June 30, 2015 was 0.01% (subsidized) and -0.84% (non-subsidized). Yield quotations more closely reflect the current earnings of the Portfolio. The non-subsidized yield reflects what the yield would have been had a fee and/or expense waiver not been in place during the period shown. For the six-month period ended June 30, 2015, the Portfolio's Class Y shares returned 0.00%. Past performance is no guarantee of future results.

The performance of the Portfolio's two share classes varies because each has different expenses. The Portfolio's total returns assume the reinvestment of all distributions but do not reflect the deduction of any charges by your insurance company. Such costs would lower performance.

We remain quite comfortable in our conservative approach to managing the Portfolio, focusing on securities with high liquidity and short durations. We believe our investment process and focus on credit research and risk management, combined with the high degree of liquidity and short maturity position of the Portfolio, has put us in a favorable position to respond to market uncertainty. Our investment philosophy continues to revolve around prudent credit and risk management and portfolios that are positioned defensively and with very high levels of liquidity.

There is no guarantee that any sectors mentioned will continue to perform as discussed above or that securities in such sectors will be held by the Portfolio in the future.

Limited Duration Portfolio

For the six-month period ended June 30, 2015, Variable Investment Series – Limited Duration Portfolio Class X shares produced a total return of 0.38%, underperforming the Barclays U.S. Government/Credit Index (1-5 Year) (the "Index"),¹ which returned 0.94%. For the same period, the Portfolio's Class Y shares returned 0.36%. Past performance is no guarantee of future results.

The performance of the Portfolio's two share classes varies because each has different expenses. The Portfolio's total returns assume the reinvestment of all distributions but do not reflect the deduction of any charges by your insurance company. Such costs would lower performance.

The Portfolio was underweight in the U.S. Treasury sector and maintained a slightly lower duration than the Index using U.S. Treasury futures, which detracted from relative performance.

1  The Barclays U.S. Government/Credit Index (1-5 Year) tracks the performance of U.S. government and corporate obligations, including U.S. government agency and Treasury securities, and corporate and Yankee bonds with maturities of one to five years. 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.

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Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

However, the Portfolio's overweight position in the investment-grade credit sector contributed positively, with its focus on the banking sector was especially beneficial.

Small overweight positions in agency mortgage-backed securities, non-agency mortgage-backed securities, commercial mortgage-backed securities and high yield credit also added to returns, with much of the relative outperformance coming from the attractive yield offered by these sectors.

There is no guarantee that any sectors mentioned will continue to perform as discussed above or that securities in such sectors will be held by the Portfolio in the future.

Income Plus Portfolio

For the six-month period ended June 30, 2015, Variable Investment Series – Income Plus Portfolio Class X shares produced a total return of -0.60%, outperforming the Barclays U.S. Corporate Index (the "Index"),² which returned -0.92%. For the same period, the Portfolio's Class Y shares returned -0.73%. Past performance is no guarantee of future results.

The performance of the Portfolio's two share classes varies because each has different expenses. The Portfolio's total returns assume the reinvestment of all distributions but do not reflect the deduction of any charges by your insurance company. Such costs would lower performance.

The first six months of 2015 were a tough environment for the corporate credit market. Early in the year, market participants were focused on the potential for volatility associated with the Federal Reserve's (Fed) tightening policy. Inflection points in monetary policy have often been accompanied by a period of market volatility, which may help to explain recent price movements. Another more recent focus of the market has been the broader impact of a failure of the Greek government to come to an agreement with its creditors, the potential for an uncontrolled exit from the euro currency and possibly the European Union, and the implications of a potential broader market contagion if this came to pass. While the latest headlines at the time of this writing suggest an agreement between Greece and its creditors appears within reach, and policymakers now have many tools in place to react quickly if that is not the case, the market nevertheless remains fixated on the situation and the potential for contagion. Finally, amidst these and other economic and geopolitical worries, the U.S. credit markets have also endured record amounts of new issuance, which have pressured yield spreads wider.

2  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.

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Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

Despite these macro headwinds, the Portfolio weathered this volatility relatively well and outperformed the Index in the reporting period. The primary contributor to relative returns was the Portfolio's positioning within the investment grade segment of the market. Underweight on a spread duration weighted basis, the Portfolio outperformed as investment grade spreads widened. Holdings of select BB-rated high yield corporate bonds also benefited performance during the period as BB-rated corporates generated positive excess returns (as opposed to negative excess returns for investment grade corporates).

The primary detractor from performance was the Portfolio's duration positioning. The Portfolio has been positioned defensively from a duration perspective (i.e. positioned to benefit from a rise in interest rates). Specifically, the Portfolio was positioned underweight in interest rates on the front end of the yield curve, where rates were relatively unchanged over the period. Another modest detractor was holdings of credit default swaps (both single-name and index swaps), which were held as partial hedges against the Portfolio's long credit exposures. Over the course of the period, these spreads were roughly unchanged, generating some modest underperformance for the Portfolio.

We currently see value within several segments of the corporate market, especially after the spread widening that has taken place during the past six months. Spreads are now as wide as they were during the "taper tantrum" of 2013, making them quite attractive in our view. Within investment grade bonds, we remain positive on the financial sector where we believe fundamentals are strong and valuations remain attractive relative to non-financial credits. We remain defensively positioned within non-financial sectors, as many of these companies have become increasingly shareholder-friendly by sacrificing their balance sheet to fund acquisitions, increase stock buybacks or raise dividends. However, given the recent underperformance of this space, we believe some segments of the non-financial market have become relatively more interesting and may offer attractive investment opportunities for the remainder of 2015.

There is no guarantee that any sectors mentioned will continue to perform as discussed above or that securities in such sectors will be held by the Portfolio in the future.

European Equity Portfolio

For the six-month period ended June 30, 2015, Variable Investment Series – European Equity Portfolio Class X shares produced a total return of 5.30%, outperforming the MSCI Europe Index (the "Index"),³ which returned 3.82%. For the same period, the Portfolio's Class Y shares returned 5.20%. Past performance is no guarantee of future results.

3  The MSCI Europe Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. 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. 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.

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Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

The performance of the Portfolio's two share classes varies because each has different expenses. The Portfolio's total returns assume the reinvestment of all distributions but do not reflect the deduction of any charges by your insurance company. Such costs would lower performance.

The primary country-level contributors to relative performance included our stock selection in France and Germany, along with both our stock selection in and overweight allocations to Switzerland and Ireland. However, our stock selection in the U.K. and an underweight allocation to Denmark somewhat dampened relative returns.

On an industry level, key positive contributors were stock selection in materials, health care equipment, insurance and consumer services. In addition, both stock selection in and an underweight allocation to utilities added to overall performance. Detractors from performance included stock selection in media and an underweight allocation to diversified financials, a group that strongly outperformed within the Index during the period.

Individual holdings that helped relative performance included a Swiss chemical company that saw its share price rise on news of a takeover bid from a competitor, a French industrial company that benefited from its exposure to the economic recovery and the stronger U.S. dollar, a German health care company that reported better-than-expected results and also benefited from the rising U.S. dollar, and an Irish building materials firm with strong exposure to the rebound in U.S. residential construction and to the U.S. dollar. The Portfolio had no exposure to an underperforming Spanish bank, which was advantageous to relative performance as well. However, other holdings detracted from relative performance. The Portfolio did not own a Danish pharmaceutical company that performed particularly well in the Index during the period. The Portfolio's positions in a U.K. mining company hurt by languishing demand from China, a U.K. oil and gas company that received a takeover bid from a competitor, and a German industrial company that reported disappointing results were also unfavorable to relative performance during the period.

Our outlook remains positive for European equities, due to improving economic conditions (as leading indicators have been pointing to a substantial positive growth for Europe for 2015), falling commodity prices (as the region has a substantial energy deficit), a weakening euro (which could benefit export-led companies), and positive earnings revisions (for the first time in four years, estimates point to positive earnings per share growth for Europe for 2015). In addition, we see a bolder stance by both the European Central Bank, with the announcement of its quantitative easing program that is intended to run through September 2016, and governments, which appear more inclined to support their underlying economies. Finally, we consider European equities attractively valued compared to other regional equities and fixed

6

Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

income securities. Not only is the European market currently cheaper than the U.S. market, but European equities are also discounting a higher level of earnings growth.

We believe that exposure to the economic recovery and cheap valuations provide strong support to our favorable thesis on European equities. Our investment approach remains the same. We continue to seek high-quality companies with high earnings visibility and predictability, stable and strong cash flow, and low levels of debt, trading at attractive valuations.

There is no guarantee that any sectors mentioned will continue to perform as discussed above or that securities in such sectors will be held by the Portfolio in the future.

Multi Cap Growth Portfolio

For the six-month period ended June 30, 2015, Variable Investment Series – Multi Cap Growth Portfolio Class X shares produced a total return of 7.50%, outperforming the Russell 3000^® Growth Index (the "Index"),⁴ which returned 4.33%. For the same period, the Portfolio's Class Y shares returned 7.37%. Past performance is no guarantee of future results.

The performance of the Portfolio's two share classes varies because each has different expenses. The Portfolio's total returns assume the reinvestment of all distributions but do not reflect the deduction of any charges by your insurance company. Such costs would lower performance.

The Portfolio's relative outperformance was driven almost entirely by favorable stock selection in the consumer discretionary sector. A holding in a leading Internet retailer was the top contributor to the sector as well as the overall Portfolio. The financials sector also provided a modest relative gain. The Portfolio's exposure to a provider of exchange-traded funds (ETFs), which performed well during the period, and its overall underweight in the financials sector, which had a negative return in the Index, were beneficial to relative returns.

Conversely, the consumer staples sector somewhat dampened relative gains. A holding in a leading single-serve coffee provider was the largest detractor in the sector and the overall Portfolio. Stock selection in the information technology (IT) sector also hurt relative performance. A Chinese e-commerce company, which is not represented in the Index, and a maker of consumer electronics and computers were the main laggards in the IT sector.

4  The Russell 3000^® Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000^® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000^® Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. 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.

7

Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

There is no guarantee that any sectors mentioned will continue to perform as discussed above or that securities in such sectors will be held by the Portfolio in the future.

We appreciate your ongoing support of Morgan Stanley Variable Investment Series and look forward to continuing to serve your investment needs.

Very truly yours,

John H. Gernon
President and Principal Executive Officer

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Morgan Stanley Variable Investment Series

Letter to the Shareholders nJune 30, 2015 (unaudited)continued

For More Information About Portfolio Holdings

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semiannual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters. The semiannual reports and the 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 semiannual and annual reports to fund shareholders and makes these reports available on its public web site, 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 and monthly holdings for each money market fund on Form N-MFP. Morgan Stanley does not deliver these reports to shareholders, nor are the first and third fiscal quarter reports posted to the Morgan Stanley public web site. However, the holdings for each money market fund are posted to the Morgan Stanley public web site. You may obtain the Form N-Q filings (as well as the Form N-CSR, N-CSRS and N-MFP filings) by accessing the SEC's web site, http://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 at (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's e-mail address (publicinfo@sec.gov) or by writing the public reference section of the SEC, Washington, DC 20549-1520.

Proxy Voting Policy and Procedures and Proxy Voting Record

You may obtain a copy of the Portfolios' Proxy Voting Policy and Procedures without charge, upon request, by calling toll free (800) 548-7786 or by visiting the Mutual Fund Center on our web site at www.morganstanley.com/im. It is also available on the SEC's web site at http://www.sec.gov.

You may obtain information regarding how the Portfolios voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 without charge by visiting the Mutual Fund Center on our web site at www.morganstanley.com/im. This information is also available on the SEC's web site at http://www.sec.gov.

9

Morgan Stanley Variable Investment Series

Fund Performance nJune 30, 2015 (unaudited)

Average Annual Total Returns—Period Ended June 30, 2015(1)
Class X	1 Year			5 Years			10 Years			Since Inception			Gross Expense Ratio			Date of Inception
European Equity		-6.23	%		11.08	%		5.59	%		8.54	%		1.26	%	3/1/1991
Income Plus		0.68			6.28			5.90			7.13			0.64		3/1/1987
Limited Duration		0.38			1.80			0.77			1.87			0.80		5/4/1999
Money Market		0.01			0.01			1.36			3.85			0.70		3/9/1984
Multi Cap Growth		11.52			19.92			11.70			11.78			0.57		3/9/1984
Class Y
European Equity		-6.45			10.80			5.33			2.31			1.51		6/5/2000
Income Plus		0.37			6.00			5.62			6.33			0.89		6/5/2000
Limited Duration		0.09			1.54			0.52			1.53			1.05		6/5/2000
Money Market		0.01			0.01			1.27			1.51			0.95		6/5/2000
Multi Cap Growth		11.24			19.62			11.42			5.39			0.82		6/5/2000

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. For most recent month-end performance figures, please contact the issuing insurance company or speak with your Financial Advisor. Investment return and principal value will fluctuate. When you sell Portfolio shares, they may be worth 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 for Class Y shares will vary from the performance of Class X shares due to differences in expenses. Expenses are as of each Portfolio's fiscal year end as outlined in the Portfolio's current prospectus.

⁽¹⁾  Figure assumes reinvestment of all distributions for the underlying fund based on net asset value ("NAV"). It does not reflect the deduction of insurance expenses, an annual contract maintenance fee, or surrender charges. If performance information included the effect of these additional charges, the total returns would be lower.

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Morgan Stanley Variable Investment Series

Expense Examples nJune 30, 2015 (unaudited)

As a shareholder of a Portfolio, you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, including advisory fees, administration fees, distribution and services (12b-1) fees, and other Portfolio expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period 01/01/15 – 06/30/15.

Actual Expenses

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the tables below provides information about 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 cost 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 tables are meant to highlight your ongoing costs only and do not reflect any insurance company charges. Therefore, the second line of the tables is useful in comparing ongoing costs, and will not help you determine the relative total cost of owning different funds. In addition, if these insurance company charges were included, your costs would have been higher.

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Morgan Stanley Variable Investment Series

Expense Examples nJune 30, 2015 (unaudited)continued

Money Market

	Beginning Account Value		Ending Account Value		Expenses Paid During Period@
	01/01/15		06/30/15		01/01/15 – 06/30/15
Class X
Actual (0.00% return)	$	1,000.00	$	1,000.05	$	1.04
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,023.75	$	1.05
Class Y
Actual (0.00% return)	$	1,000.00	$	1,000.05	$	1.04
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,023.75	$	1.05

  @  Expenses are equal to the Portfolio's annualized expense ratios of 0.21% and 0.21% for Class X and Class Y shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). If the Portfolio had borne all of its expenses, the annualized expense ratios would have been 0.76% and 1.01% for Class X and Class Y shares, respectively.

Limited Duration

	Beginning Account Value		Ending Account Value		Expenses Paid During Period@
	01/01/15		06/30/15		01/01/15 – 06/30/15
Class X
Actual (0.38% return)	$	1,000.00	$	1,003.80	$	4.37
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,020.43	$	4.41
Class Y
Actual (0.36% return)	$	1,000.00	$	1,003.60	$	5.61
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,019.19	$	5.66

  @  Expenses are equal to the Portfolio's annualized expense ratios of 0.88% and 1.13% for Class X and Class Y shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Income Plus

	Beginning Account Value		Ending Account Value		Expenses Paid During Period@
	01/01/15		06/30/15		01/01/15 – 06/30/15
Class X
Actual (-0.60% return)	$	1,000.00	$	994.00	$	3.26
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,021.52	$	3.31
Class Y
Actual (-0.73% return)	$	1,000.00	$	992.70	$	4.50
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,020.28	$	4.56

  @  Expenses are equal to the Portfolio's annualized expense ratios of 0.66% and 0.91% for Class X and Class Y shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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Morgan Stanley Variable Investment Series

Expense Examples nJune 30, 2015 (unaudited)continued

European Equity

	Beginning Account Value		Ending Account Value		Expenses Paid During Period@
	01/01/15		06/30/15		01/01/15 – 06/30/15
Class X
Actual (5.30% return)	$	1,000.00	$	1,053.00	$	5.09
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,019.84	$	5.01
Class Y
Actual (5.20% return)	$	1,000.00	$	1,052.00	$	6.36
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,018.60	$	6.26

  @  Expenses are equal to the Portfolio's annualized expense ratios of 1.00% and 1.25% for Class X and Class Y shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). If the Portfolio had borne all of its expenses, the annualized expense ratios would have been 1.30% and 1.55% for Class X and Class Y shares, respectively.

Multi Cap Growth

	Beginning Account Value		Ending Account Value		Expenses Paid During Period@
	01/01/15		06/30/15		01/01/15 – 06/30/15
Class X
Actual (7.50% return)	$	1,000.00	$	1,075.00	$	2.93
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,021.97	$	2.86
Class Y
Actual (7.37% return)	$	1,000.00	$	1,073.70	$	4.22
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,020.73	$	4.11

  @  Expenses are equal to the Portfolio's annualized expense ratios of 0.57% and 0.82% for Class X and Class Y shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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Morgan Stanley Variable Investment Series

Investment Advisory Agreement Approval nJune 30, 2015 (unaudited)

Nature, Extent and Quality of Services

The Board reviewed and considered the nature and extent of the investment advisory services provided by Morgan Stanley Investment Management Inc. (the "Adviser") under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board reviewed similar information and factors regarding Morgan Stanley Investment Management Limited (the "Sub-Adviser"), for the European Equity Portfolio. 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 Portfolios. (The Adviser and Sub-Adviser together are referred to as the "Adviser" and the advisory, sub-advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as 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 Portfolios. 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 Portfolios and supported its decision to approve the Management Agreement.

Performance, Fees and Expenses of the Portfolios

The Board reviewed the performance, fees and expenses of the Portfolios compared to their 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 Portfolios. 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, they discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel.

Performance

The Board noted that the performance of each of the Income Plus and Money Market Portfolios was better than that of its respective peer group averages for the one-, three- and five-year periods.

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Investment Advisory Agreement Approval nJune 30, 2015 (unaudited) continued

The Board noted that the performance of each of the European Equity and Multi Cap Growth Portfolios was better than that of its respective peer group average for the three- and five-year periods but below its peer group average for the one-year period.

The Board noted that the performance of the Limited Duration Portfolio was below its peer group average for the one-, three- and five-year periods.

Performance Conclusions

With respect to the European Equity, Income Plus, Money Market and Multi Cap Growth Portfolios, after discussion, the Board concluded that performance was competitive with the peer group averages.

With respect to the Limited Duration Portfolio, after discussion, the Board concluded that performance was acceptable.

Fees and Expenses

The Board members discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for the Portfolios relative to comparable funds and/or other accounts advised by the Adviser and/or compared to their respective peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolios' total expense ratios. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps.

The Board noted that the contractual management fee for the European Equity Portfolio was higher but close to its peer group average, the actual management fee was lower than its peer group average and the total expense ratio was higher but close to its peer group average.

The Board noted that management fees and total expense ratios for the Income Plus and Multi Cap Growth Portfolios were lower than their respective peer group averages.

The Board noted that while the Limited Duration Portfolio's management fee was lower than its peer group average, the total expense ratio was higher than its peer group average.

The Board noted that the contractual management fee for the Money Market Portfolio was higher than its peer group average and the actual management fee and total expense ratio were lower than its peer group averages.

Fee and Expense Conclusions

With respect to the European Equity, Income Plus, Money Market and Multi Cap Growth Portfolios, after discussion, the Board concluded that the management fees and total expense ratios were competitive with those of their peer group averages.

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Investment Advisory Agreement Approval nJune 30, 2015 (unaudited) continued

With respect to the Limited Duration Portfolio, after discussion, the Board concluded that (i) the management fee was competitive with its peer group average and (ii) the total expense ratio was acceptable.

Economies of Scale

The Board considered the size and growth prospects of the Portfolios and how that relates to the Portfolios' total expense ratios and particularly the Portfolios' management fee rates (which, for all the Portfolios except Limited Duration, include one or more 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 Portfolios 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 each 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 Portfolios 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.

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 Portfolios 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 Portfolios 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 Portfolios and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Portfolios' 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

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the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Portfolios to continue their 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 Portfolios' 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 Portfolios 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.

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Morgan Stanley Variable Investment Series - Money Market

Portfolio of Investments n June 30, 2015 (unaudited)

PRINCIPAL AMOUNT (000)			ANNUALIZED YIELD ON DATE OF PURCHASE			MATURITY DATE	VALUE
		Repurchase Agreements (52.6%)
$	10,000	ABN Amro Securities LLC, (dated 06/30/15; proceeds $10,000,039; fully collateralized by various U.S. Government agency securities, 0.75% - 10.50% due 01/12/18 - 10/20/64 and U.S. Government obligations, 0.88% - 3.75% due 01/15/18 - 08/15/41; valued at $10,231,586)		0.14	%	07/01/15	$	10,000,000
	1,000	ABN Amro Securities LLC, (dated 04/23/15; proceeds $1,000,708; fully collateralized by Cash; valued at $1,000,000) (Demand 07/07/15)		0.28	(a)	07/23/15		1,000,000
	9,840	BNP Paribas Securities Corp., (dated 06/30/15; proceeds $9,840,027; fully collateralized by various U.S. Government agency securities, 1.00% - 6.50% due 09/27/17 - 10/20/64 and U.S. Government obligations, Zero Coupon due 08/15/15 - 08/15/40; valued at $10,111,557)		0.10		07/01/15		9,840,000
	5,000	Credit Agricole Corp., (dated 06/30/15; proceeds $5,000,019; fully collateralized by various U.S. Government obligations, Zero Coupon - 6.25% due 07/23/15 - 05/15/44; valued at $5,100,030)		0.14		07/01/15		5,000,000
	1,000	Credit Suisse Securities USA, (dated 05/04/15; proceeds $1,001,716; fully collateralized by a Corporate Bond, 5.40% due 01/14/20; valued at $1,051,644)		0.68		08/03/15		1,000,000
	500	ING Financial Markets LLC, (dated 06/30/15; proceeds $500,004; fully collateralized by various Corporate Bonds, 7.00% - 10.50% due 02/28/18 - 02/15/21; valued at $531,617)		0.28		07/01/15		500,000
	500	Merrill Lynch Pierce Fenner & Smith, (dated 01/29/15; proceeds $501,480; fully collateralized by various Common Stocks; valued at $525,015) (Demand 07/01/15)		0.57	(a)	08/04/15		500,000

See Notes to Financial Statements
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Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			ANNUALIZED YIELD ON DATE OF PURCHASE			MATURITY DATE	VALUE
$	750	RBC Capital Markets LLC, (dated 05/06/15; proceeds $750,656; fully collateralized by various Corporate Bonds, 5.38% - 10.00% due 03/15/16 - 07/15/22; valued at $795,000) (Demand 07/07/15)		0.35	(a)%	08/04/15	$	750,000
	250	RBC Capital Markets LLC, (dated 06/15/15; proceeds $250,221; fully collateralized by various Corporate Bonds, 6.75% - 9.50% due 03/15/16 - 07/15/22; valued at $265,000) (Demand 07/07/15)		0.35	(a)	09/14/15		250,000
	750	Wells Fargo Securities LLC, (dated 04/27/15; proceeds $751,287; fully collateralized by various Convertible Bonds, 0.25% - 5.00% due 09/15/18 - 02/15/44 and Convertible Preferred Stocks; valued at $847,500)		0.68		07/27/15		750,000
		Total Repurchase Agreements (Cost $29,590,000)						29,590,000

		COUPON RATE(a)			DEMAND DATE(b)
	Floating Rate Notes (16.9%)
	Domestic Banks (9.8%)
1,000	HSBC Bank USA NA		0.28	%	08/04/15	08/04/15	1,000,000
2,000	JP Morgan Chase Bank NA		0.44		09/08/15	06/07/16	2,000,000
500	U.S. Bank NA		0.25		07/27/15	07/27/15	500,000
1,000	Wells Fargo Bank NA (c)		0.39		07/20/15	06/17/16	1,000,000
1,000	Wells Fargo Bank NA		0.41		09/15/15	06/14/16	1,000,000
							5,500,000
	International Banks (7.1%)
2,000	Bank of Nova Scotia		0.28 - 0.41		07/30/15 - 09/03/15	08/04/15 - 01/29/16	2,000,000
500	BNP Paribas SA		0.44		07/23/15	12/23/15	500,000
300	Rabobank Nederland NY		0.32		07/06/15	07/06/15	300,000
500	Sumitomo Mitsui Banking Corp.		0.33		07/27/15	08/27/15	500,000
700	Toronto Dominion Bank		0.28		07/22/15	07/22/15	700,000
							4,000,000
	Total Floating Rate Notes (Cost $9,500,000)						9,500,000

See Notes to Financial Statements
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Morgan Stanley Variable Investment Series - Money Market

Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			ANNUALIZED YIELD ON DATE OF PURCHASE			MATURITY DATE	VALUE
		Certificates of Deposit (14.2%)
		International Banks
$	2,000	Bank of Montreal		0.13	%	07/06/15	$	2,000,000
	1,000	Landesbank Hessen Thuringen Girozentrale		0.14		07/02/15		1,000,000
	1,000	Mizuho Bank Ltd.		0.28		09/16/15		1,000,000
	1,000	Oversea Chinese Banking Corp.		0.19		07/06/15 - 07/07/15		999,998
	1,000	Sumitomo Mitsui Banking Corp.		0.28		09/17/15		1,000,000
	2,000	Swedbank AB		0.10		07/07/15		2,000,000
		Total Certificates of Deposit (Cost $7,999,998)						7,999,998
		Time Deposits (7.1%)
		International Banks
	2,000	Canadian Imperial Bank of Commerce		0.03		07/01/15		2,000,000
	2,000	Skandinaviska Enskilda Banken AB		0.04		07/01/15		2,000,000
		Total Time Deposits (Cost $4,000,000)						4,000,000
		Commercial Paper (5.3%)
		International Banks
	2,000	Macquarie Bank Ltd.		0.32		09/17/15		1,998,613
	1,000	Sumitomo Mitsui Trust Bank Ltd.		0.17		07/02/15		999,996
		Total Commercial Paper (Cost $2,998,609)						2,998,609

		COUPON RATE(a)			DEMAND DATE(b)
	Extendible Floating Rate Notes (4.1%)
	International Banks
1,000	Royal Bank of Canada (Extendible Maturity Date 06/30/16)		0.39	%	07/01/15	04/01/19	999,970

See Notes to Financial Statements
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Morgan Stanley Variable Investment Series - Money Market

Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE(a)			DEMAND DATE(b)	MATURITY DATE	VALUE
$	1,300	Svenska Handelsbanken AB (c) (Extendible Maturity Date 12/15/15)		0.36	%	07/15/15	05/13/16	$	1,300,000
		Total Extendible Floating Rate Notes (Cost $2,299,970)							2,299,970

Total Investments (Cost $56,388,577)	100.2	%		56,388,577
Liabilities in Excess of Other Assets	(0.2	)		(128,304	)
Net Assets	100.0	%	$	56,260,273

  (a)  Rate shown is the rate in effect at June 30, 2015.

  (b)  Date of next interest rate reset.

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

MATURITY SCHEDULE†

1 - 30 Days	82.3	%
31 - 60 Days	4.4
61 - 90 Days	13.3
	100.0	%

†  As a percentage of total investments

See Notes to Financial Statements
21

Morgan Stanley Variable Investment Series - Limited Duration

Portfolio of Investments n June 30, 2015 (unaudited)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
		Corporate Bonds (72.1%)
		Basic Materials (1.7%)
$	115	Ecolab, Inc.		3.00	%	12/08/16	$	117,730
	175	Glencore Funding LLC (Switzerland) (a)		2.875		04/16/20		171,720
	175	Goldcorp, Inc. (Canada)		2.125		03/15/18		175,518
	125	Rio Tinto Finance USA PLC (United Kingdom)		1.375		06/17/16		125,443
								590,411
		Communications (7.1%)
	150	Amazon.com, Inc.		2.60		12/05/19		151,094
	400	AT&T, Inc.		2.45		06/30/20		392,564
	225	Baidu, Inc. (China)		3.25		08/06/18		231,905
	200	CBS Corp.		2.30		08/15/19		197,854
	180	Comcast Corp.		5.70		05/15/18		200,316
	225	Orange SA (France)		2.75		02/06/19		228,528
	175	Scripps Networks Interactive, Inc.		2.75		11/15/19		175,549
	125	Thomson Reuters Corp. (Canada)		1.30		02/23/17		124,759
	50	Thomson Reuters Corp. (Canada)		1.65		09/29/17		50,011
	175	Time Warner Cable, Inc.		6.75		07/01/18		195,250
	225	Verizon Communications, Inc.		2.55		06/17/19		228,289
	225	Viacom, Inc.		2.50		09/01/18		227,516
								2,403,635
		Consumer, Cyclical (4.9%)
	250	Daimler Finance North America LLC (Germany) (a)		2.375		08/01/18		253,591
	83	Harley-Davidson Financial Services, Inc. (a)		1.55		11/17/17		83,106
	100	Harley-Davidson Financial Services, Inc. (a)		2.15		02/26/20		99,248
	100	Hyundai Capital America (Korea, Republic of) (a)		2.60		03/19/20		100,144
	175	McDonald's Corp., MTN		2.20		05/26/20		173,300
	240	Nissan Motor Acceptance Corp. (Japan) (a)		2.65		09/26/18		246,348
	175	Southwest Airlines Co.		2.75		11/06/19		177,732
	200	Volkswagen Group of America Finance LLC (Germany) (a)		2.40		05/22/20		199,115
	135	Wesfarmers Ltd. (Australia) (a)		2.983		05/18/16		137,464
	175	Yum! Brands, Inc.		3.875		11/01/20		182,020
								1,652,068
		Consumer, Non-Cyclical (11.1%)
	175	AbbVie, Inc.		2.50		05/14/20		173,401
	280	Actavis Funding SCS		3.00		03/12/20		281,335
	150	Amgen, Inc.		2.50		11/15/16		152,854
	150	BAT International Finance PLC (United Kingdom) (a)		2.75		06/15/20		151,024

See Notes to Financial Statements
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Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	175	Baxalta, Inc. (a)		2.875	%	06/23/20	$	174,945
	200	Bayer US Finance LLC (Germany) (a)		2.375		10/08/19		200,831
	100	Becton Dickinson and Co.		2.675		12/15/19		100,180
	175	EMD Finance LLC (Germany) (a)		2.40		03/19/20		174,212
	210	Experian Finance PLC (United Kingdom) (a)		2.375		06/15/17		211,153
	75	JM Smucker Co. (The) (a)		2.50		03/15/20		74,647
	75	Kraft Foods Group, Inc.		2.25		06/05/17		76,059
	150	Kroger Co. (The)		2.30		01/15/19		150,686
	370	McKesson Corp.		3.25		03/01/16		375,643
	175	Medtronic, Inc. (a)		2.50		03/15/20		175,408
	250	Quest Diagnostics, Inc.		2.70		04/01/19		252,288
	175	Reynolds American, Inc.		2.30		06/12/18		176,433
	300	Synchrony Financial		3.00		08/15/19		302,420
	250	Tyson Foods, Inc.		2.65		08/15/19		251,889
	100	Ventas Realty LP		1.55		09/26/16		100,399
	200	Wm Wrigley Jr. Co. (a)		1.40		10/21/16		200,576
								3,756,383
		Diversified (1.2%)
	200	Hutchison Whampoa International 14 Ltd. (Hong Kong) (a)		1.625		10/31/17		199,626
	200	LVMH Moet Hennessy Louis Vuitton SE (France) (a)		1.625		06/29/17		201,344
								400,970
		Energy (4.4%)
	200	Anadarko Petroleum Corp.		5.95		09/15/16		211,044
	225	DCP Midstream Operating LP		2.70		04/01/19		212,527
	50	Enbridge, Inc. (Canada)		0.734	(b)	06/02/17		49,425
	175	Energy Transfer Partners LP		2.50		06/15/18		175,390
	175	EnLink Midstream Partners LP		2.70		04/01/19		172,928
	125	Enterprise Products Operating LLC		2.55		10/15/19		125,090
	200	Kinder Morgan, Inc.		3.05		12/01/19		199,983
	175	Marathon Oil Corp.		2.70		06/01/20		173,793
	180	Marathon Petroleum Corp.		3.50		03/01/16		183,069
								1,503,249
		Finance (31.1%)
	265	ABB Treasury Center USA, Inc. (Switzerland) (a)		2.50		06/15/16		268,555
	120	Abbey National Treasury Services PLC (United Kingdom)		3.05		08/23/18		124,244
	230	ABN Amro Bank N.V. (Netherlands) (a)		2.50		10/30/18		233,788

See Notes to Financial Statements
23

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Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	225	American Express Credit Corp.		2.25	%	08/15/19	$	225,511
	400	Bank of America Corp.		2.60		01/15/19		404,695
	250	Bank of Nova Scotia (The) (Canada)		1.70		06/11/18		250,271
	210	BB&T Corp., MTN		2.25		02/01/19		211,078
	100	BioMed Realty LP		2.625		05/01/19		99,667
	210	BNP Paribas SA, MTN (France)		2.70		08/20/18		215,061
	260	BNZ International Funding Ltd. (New Zealand) (a)		2.35		03/04/19		260,580
	275	BPCE SA, MTN (France)		2.25		01/27/20		272,833
	110	Canadian Imperial Bank of Commerce (Canada)		1.55		01/23/18		110,023
	175	Capital One Financial Corp.		2.45		04/24/19		175,176
	150	Citigroup, Inc.		8.50		05/22/19		183,110
	250	Commonwealth Bank of Australia (Australia)		2.50		09/20/18		256,203
	250	Compass Bank		1.85		09/29/17		249,836
	115	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA (Netherlands)		3.375		01/19/17		118,832
	250	Credit Agricole SA (France) (a)		2.125		04/17/18		251,710
	250	Credit Suisse (Switzerland)		2.30		05/28/19		249,704
	225	DBS Group Holdings Ltd. (Singapore) (a)		2.246		07/16/19		225,492
	250	Discover Bank		2.00		02/21/18		249,547
	205	DNB Bank ASA (Norway) (a)		3.20		04/03/17		211,533
	175	ERP Operating LP		2.375		07/01/19		175,901
	275	Ford Motor Credit Co., LLC		5.00		05/15/18		295,847
	325	Goldman Sachs Group, Inc. (The)		2.375		01/22/18		330,065
	220	HSBC USA, Inc.		2.25		06/23/19		218,415
	200	ING Bank N.V. (Netherlands) (a)		3.75		03/07/17		207,891
	200	Intesa Sanpaolo SpA (Italy)		3.875		01/16/18		206,591
	100	JPMorgan Chase & Co.		2.20		10/22/19		99,180
	100	Lloyds Bank PLC (United Kingdom) (a)		6.50		09/14/20		115,389
	201	Macquarie Bank Ltd. (Australia) (a)		2.60		06/24/19		202,310
	175	Metropolitan Life Global Funding I (See Note 7) (a)		2.00		04/14/20		172,662
	230	Mizuho Bank Ltd. (Japan) (a)		1.85		03/21/18		230,484
	150	New York Life Global Funding (a)		1.30		10/30/17		149,642
	250	Principal Financial Group, Inc.		1.85		11/15/17		251,935
	320	Prudential Financial, Inc., MTN		4.75		09/17/15		322,492
	200	QBE Insurance Group Ltd. (Australia) (a)		2.40		05/01/18		201,243
	250	Santander Bank NA		2.00		01/12/18		250,116
	200	Skandinaviska Enskilda Banken AB (Sweden) (a)		1.75		03/19/18		200,115
	300	Standard Chartered PLC (United Kingdom) (a)		1.50		09/08/17		299,730
	260	Sumitomo Mitsui Banking Corp. (Japan)		2.45		01/10/19		263,050
	200	Swedbank AB (Sweden) (a)		1.75		03/12/18		200,412

See Notes to Financial Statements
24

Morgan Stanley Variable Investment Series - Limited Duration

Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	225	Toronto-Dominion Bank (The), MTN (Canada)		2.625	%	09/10/18	$	232,038
	300	UBS AG, MTN (Switzerland)		2.375		08/14/19		300,151
	200	WEA Finance LLC/Westfield UK & Europe Finance PLC (Australia) (a)		2.70		09/17/19		200,489
	120	Wells Fargo & Co.		2.15		01/15/19		120,807
	100	Wells Fargo & Co., MTN		1.40		09/08/17		100,288
	350	Westpac Banking Corp. (Australia) (a)		1.375		05/30/18		348,851
								10,543,543
		Industrials (3.5%)
	215	Eaton Corp.		1.50		11/02/17		214,975
	115	Ingersoll-Rand Global Holding Co., Ltd.		2.875		01/15/19		117,025
	75	L-3 Communications Corp.		1.50		05/28/17		74,520
	50	Precision Castparts Corp.		0.70		12/20/15		49,981
	50	Ryder System, Inc., MTN		2.65		03/02/20		49,974
	250	Siemens Financieringsmaatschappij N.V. (Germany) (a)		2.15		05/27/20		247,167
	175	Union Pacific Corp.		2.25		06/19/20		175,712
	250	Waste Management, Inc.		2.60		09/01/16		254,456
								1,183,810
		Technology (2.3%)
	100	Altera Corp.		2.50		11/15/18		102,234
	160	Applied Materials, Inc.		2.65		06/15/16		162,560
	200	Oracle Corp.		2.25		10/08/19		201,280
	300	TSMC Global Ltd. (Taiwan) (a)		1.625		04/03/18		296,765
								762,839
		Utilities (4.8%)
	275	Dominion Gas Holdings LLC		2.50		12/15/19		278,165
	175	Eversource Energy		1.45		05/01/18		174,090
	225	GDF Suez (France) (a)		1.625		10/10/17		226,378
	200	Origin Energy Finance Ltd. (Australia) (a)		3.50		10/09/18		205,325
	200	PSEG Power LLC		5.50		12/01/15		203,798
	175	Sempra Energy		2.40		03/15/20		173,830
	250	Southern Co. (The)		2.15		09/01/19		247,669
	100	Xcel Energy, Inc.		1.20		06/01/17		100,066
								1,609,321
		Total Corporate Bonds (Cost $24,284,289)						24,406,229

See Notes to Financial Statements
25

Morgan Stanley Variable Investment Series - Limited Duration

Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
		Asset-Backed Securities (10.9%)
$	145	CAM Mortgage LLC (a)		3.50	%	07/15/64	$	145,000
	180	Chrysler Capital Auto Receivables Trust (a)		1.22		07/15/19		180,029
	150	Citibank Credit Card Issuance Trust		2.88		01/23/23		154,673
	132	Colony American Homes (a)		1.40	(b)	05/17/31		131,519
		Discover Card Execution Note Trust
	230			0.616	(b)	07/15/21		230,768
	200			1.22		10/15/19		200,405
	381	Ford Credit Auto Owner Trust (a)		2.26		11/15/25		386,076
	152	GM Financial Automobile Leasing Trust (a)		0.73		02/20/17		152,325
	106	Invitation Homes Trust (a)		2.933	(b)	08/17/32		106,284
	98	Nationstar HECM Loan Trust (a)		3.844		05/25/18		97,735
	425	Nissan Auto Receivables Owner Trust		1.05		10/15/19		423,255
	225	North Carolina State Education Assistance Authority		1.056	(b)	07/25/25		226,382
	75	Panhandle-Plains Higher Education Authority, Inc.		1.234	(b)	07/01/24		75,082
	152	Rmat Depositor LLC		4.826		06/25/35		152,143
	91	Skopos Auto Receivables Trust (a)		3.10		12/15/23		91,160
	88	VOLT NPL X LLC (a)		4.75		10/26/54		86,824
	100	VOLT XIX LLC (a)		5.00		04/25/55		100,441
	100	VOLT XXII LLC (a)		4.25		02/25/55		98,975
	100	VOLT XXX LLC (a)		4.75		10/25/57		99,873
	100	VOLT XXXI LLC (a)		4.50		02/25/55		98,612
	200	VOLT XXXIII LLC (a)		4.25		03/25/55		196,989
	137	Volvo Financial Equipment LLC (a)		0.74		03/15/17		136,878
	113	World Omni Automobile Lease Securitization Trust		1.10		12/15/16		113,167
		Total Asset-Backed Securities (Cost $3,658,878)						3,684,595
		Agency Adjustable Rate Mortgages (5.2%)
		Federal Home Loan Mortgage Corporation, Conventional Pools:
	131			2.304		07/01/36		139,021
	147			2.336		06/01/36		156,653
	133			2.338		07/01/38		141,450
	307			2.463		07/01/38		328,700
	34			2.662		01/01/38		36,473

See Notes to Financial Statements
26

Morgan Stanley Variable Investment Series - Limited Duration

Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
		Federal National Mortgage Association, Conventional Pools:
$	193			2.266	%	10/01/39	$	204,962
	177			2.293		09/01/38		188,854
	285			2.314		04/01/38		305,822
	143			2.384		05/01/35		152,559
		Government National Mortgage Association, Various Pools:
	45			1.625		11/20/39		46,701
	54			1.75		02/20/40		55,893
		Total Agency Adjustable Rate Mortgages (Cost $1,757,235)						1,757,088
		Mortgages - Other (4.1%)
	115	CHL Mortgage Pass-Through Trust		5.50		05/25/34		118,696
	119	Fannie Mae Connecticut Avenue Securities		1.335	(b)	05/25/25		118,762
		Freddie Mac Structured Agency Credit Risk Debt Notes
	246			1.082		10/25/27		245,775
	221			1.187	(b)	02/25/24		221,300
	136	JP Morgan Mortgage Trust		2.703	(b)	07/25/35		136,466
	176	Merrill Lynch Mortgage Investors Trust		2.165	(b)	12/25/34		176,643
	195	New Residential Mortgage Loan Trust (a)		3.75	(b)	04/25/52 - 05/25/54		200,677
	175	Sequoia Mortgage Trust		0.807	(b)	08/20/34		166,120
		Total Mortgages - Other (Cost $1,386,969)						1,384,439
		Commercial Mortgage-Backed Securities (2.0%)
	195	BLCP Hotel Trust (a)		1.136	(b)	08/15/29		195,010
	185	CDGJ Commercial Mortgage Trust (a)		1.586	(b)	12/15/27		185,534
	93	Citigroup Commercial Mortgage Trust (a)		2.11		01/12/30		94,003
	99	Hilton USA Trust (a)		1.185	(b)	11/05/30		98,564
	100	JP Morgan Chase Commercial Mortgage Securities Trust (a)		1.166	(b)	07/15/31		99,977
		Total Commercial Mortgage-Backed Securities (Cost $673,922)						673,088
		Collateralized Mortgage Obligations - Agency Collateral Series (1.7%)
	150	Federal Home Loan Mortgage Corporation, REMIC		7.50		09/15/29		174,311
	111	Federal National Mortgage Association		1.083		02/25/16		111,233

See Notes to Financial Statements
27

Morgan Stanley Variable Investment Series - Limited Duration

Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE			VALUE
		Government National Mortgage Association,
		IO
$	366			6.043	(b)%	03/20/43			$	66,621
	451			6.313	(b)	05/20/40				87,816
		IO PAC
	634			5.963	(b)	10/20/41				89,389
	599			6.315	(b)	08/16/39				65,502
		Total Collateralized Mortgage Obligations - Agency Collateral Series (Cost $534,573)								594,872
		Sovereign (0.7%)
	245	Korea Development Bank (The) (Korea, Republic of) (Cost $242,428)		1.50		01/22/18				243,617
		Agency Fixed Rate Mortgages (0.5%)
		Federal National Mortgage Association, Conventional Pools:
	85			6.50		01/01/32 - 11/01/33				97,779
	53			7.00		12/01/31 - 06/01/32				58,502
		Total Agency Fixed Rate Mortgages (Cost $144,451)								156,281
		Short-Term Investments (1.6%)
		U.S. Treasury Security (0.6%)
	201	U.S. Treasury Bill (c)(d) (Cost $200,920)		0.089		12/10/15				200,966
NUMBER OF SHARES (000)
		Investment Company (1.0%)
	346	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (See Note 7) (Cost $346,020)								346,020
		Total Short-Term Investments (Cost $546,940)								546,986
		Total Investments (Cost $33,229,685) (e)					98.8	%		33,447,195
		Other Assets in Excess of Liabilities					1.2			407,624
		Net Assets					100.0	%	$	33,854,819

  IO  Interest Only.

  MTN  Medium Term Note.

  PAC  Planned Amortization Class.

See Notes to Financial Statements
28

Morgan Stanley Variable Investment Series - Limited Duration

Portfolio of Investments n June 30, 2015 (unaudited) continued

  REMIC  Real Estate Mortgage Investment Conduit.

  (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 June 30, 2015.

  (c)  Rate shown is the yield to maturity at June 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 open futures contracts and swap agreements.

FUTURES CONTRACTS OPEN AT JUNE 30, 2015:

NUMBER OF CONTRACTS		LONG/SHORT	DESCRIPTION, DELIVERY MONTH AND YEAR	UNDERLYING FACE AMOUNT AT VALUE			UNREALIZED APPRECIATION (DEPRECIATION)
	11	Long	U.S. Treasury 2 yr. Note, Sep-15	$	2,408,313		$	4,313
	12	Long	U.S. Treasury 5 yr. Note, Sep-15		1,431,094			70
	2	Long	U.S. Treasury Ultra Bond, Sep-15		308,125			812
	1	Short	U.S. Treasury 10 yr. Note, Sep-15		(126,172	)		(828	)
	1	Short	U.S. Treasury Long Bond, Sep-15		(150,843	)		(31	)
Net Unrealized Appreciation							$	4,336

CREDIT DEFAULT SWAP AGREEMENTS OPEN AT JUNE 30, 2015:

SWAP COUNTERPARTY & REFERENCE OBLIGATION	BUY/SELL PROTECTION	NOTIONAL AMOUNT (000)		INTEREST RATE			TERMINATION DATE	UNREALIZED APPRECIATION (DEPRECIATION)			UPFRONT PAYMENTS PAID (RECEIVED)			VALUE			CREDIT RATING OF REFERENCE OBLIGATION†
Barclays Bank PLC Yum! Brands, Inc.	Buy	$	225		1.00	%	12/20/18	$	26		$	(3,905	)	$	(3,879	)	BBB
Barclays Bank PLC Quest   Diagnostics, Inc.	Buy		250		1.00		03/20/19		(8,815	)		4,798			(4,017	)	BBB+
Morgan Stanley & Co., LLC*  CDX.NA.IG.24	Buy		400		1.00		06/20/20		1,778			(7,585	)		(5,807	)	NR
Total Credit Default Swaps		$	875					$	(7,011	)	$	(6,692	)	$	(13,703	)

See Notes to Financial Statements
29

Morgan Stanley Variable Investment Series - Limited Duration

Portfolio of Investments n June 30, 2015 (unaudited) continued

INTEREST RATE SWAP AGREEMENT OPEN AT JUNE 30, 2015:

SWAP COUNTERPARTY	NOTIONAL AMOUNT (000)		FLOATING RATE INDEX		PAY/RECEIVE FLOATING RATE	FIXED RATE			TERMINATION DATE	UNREALIZED APPRECIATION
Morgan Stanley & Co., LLC*	$	2,700		3 Month LIBOR	Receive		1.58	%	03/24/20	$	5,068

  LIBOR  London Interbank Offered Rate.

  NR  Not Rated.

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

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

LONG TERM CREDIT ANALYSIS+

AAA	12.1	%
AA	19.8
A	38.4
BBB	25.2
Not Rated	4.5
	100.0	%++

+  The ratings shown are based on the Portfolio's security ratings as determined by Standard & Poor's, Moody's or Fitch, each a Nationally Recognized Statistical Ratings Organization ("NRSRO").

++  Does not include open long/short futures contracts with an underlying face amount of $4,424,547 with net unrealized appreciation of $4,336. Also does not include open swap agreements with net unrealized depreciation of $1,943.

See Notes to Financial Statements
30

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
		Corporate Bonds (95.5%)
		Basic Materials (4.0%)
$	600	Anglo American Capital PLC (United Kingdom) (a)		3.625	%	05/14/20	$	600,733
	225	Ashland, Inc.		6.875		05/15/43		229,500
	240	BHP Billiton Finance USA Ltd. (Australia)		3.85		09/30/23		246,881
	225	BHP Billiton Finance USA Ltd. (Australia)		5.00		09/30/43		234,453
	390	Eldorado Gold Corp. (Canada) (a)		6.125		12/15/20		388,050
	440	Freeport-McMoRan, Inc.		3.875		03/15/23		400,357
	690	Glencore Funding LLC (Switzerland) (a)		4.125		05/30/23		668,627
	175	Goldcorp, Inc. (Canada)		5.45		06/09/44		167,196
	545	Lubrizol Corp.		8.875		02/01/19		670,008
	246	Lundin Mining Corp. (Canada) (a)		7.50		11/01/20		265,680
	300	LyondellBasell Industries N.V.		4.625		02/26/55		265,307
	470	NOVA Chemicals Corp. (Canada) (a)		5.25		08/01/23		478,812
	115	Southern Copper Corp. (Mexico)		7.50		07/27/35		129,368
	295	Vale Overseas Ltd. (Brazil)		6.875		11/21/36		286,684
								5,031,656
		Communications (12.1%)
	725	21st Century Fox America, Inc.		4.75		09/15/44		711,648
	700	Alibaba Group Holding Ltd. (China) (a)		2.50		11/28/19		693,074
	250	Amazon.com, Inc.		3.80		12/05/24		251,418
	175	Amazon.com, Inc.		4.95		12/05/44		171,187
	80	AT&T, Inc.		4.75		05/15/46		73,079
	200	AT&T, Inc.		5.55		08/15/41		205,626
	875	AT&T, Inc.		6.30		01/15/38		974,651
	525	Baidu, Inc. (China)		2.75		06/09/19		526,234
	200	Baidu, Inc. (China)		3.25		08/06/18		206,138
	310	Cablevision Systems Corp.		7.75		04/15/18		335,575
	100	CBS Corp.		4.60		01/15/45		89,632
	150	CBS Corp.		4.90		08/15/44		139,081
	670	Comcast Corp.		6.40		05/15/38		816,867
	195	CSC Holdings LLC		6.75		11/15/21		206,212
	251	Ctrip.com International Ltd.		1.25		10/15/18		287,081
	50	Deutsche Telekom International Finance BV (Germany)		8.75		06/15/30		70,512
	300	DirecTV Holdings LLC/DIRECTV Financing Co., Inc.		5.15		03/15/42		283,233
	340	Empresa Nacional de Telecomunicaciones SA (Chile) (a)		4.75		08/01/26		335,183
	329	Liberty Media Corp.		1.375		10/15/23		314,195
	725	Motorola Solutions, Inc.		4.00		09/01/24		704,564
	425	NBC Universal Media LLC		5.95		04/01/41		498,960
	310	Netflix, Inc. (a)		5.50		02/15/22		321,625
	350	Omnicom Group, Inc.		3.625		05/01/22		352,560
	93	Omnicom Group, Inc.		3.65		11/01/24		91,505

See Notes to Financial Statements
31

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	900	Ooredoo International Finance Ltd. (Qatar) (a)		3.25	%	02/21/23	$	870,079
	250	Priceline Group, Inc. (The)		0.35		06/15/20		278,437
	330	Telefonica Europe BV (Spain)		8.25		09/15/30		443,738
	255	Telstra Corp., Ltd. (Australia) (a)		3.125		04/07/25		249,597
	350	Time Warner Cable, Inc.		4.50		09/15/42		286,518
	1,025	Time Warner Cable, Inc.		6.75		07/01/18		1,143,608
	175	Time Warner, Inc.		4.65		06/01/44		167,008
	410	Time Warner, Inc.		7.70		05/01/32		539,984
	425	Twitter, Inc. (a)		0.25		09/15/19		381,969
	1,190	Verizon Communications, Inc. (a)		4.672		03/15/55		1,039,547
	909	Verizon Communications, Inc.		5.012		08/21/54		837,479
	200	Vodafone Group PLC (United Kingdom)		4.375		02/19/43		172,837
	226	Yahoo!, Inc.		0.00		12/01/18		232,921
								15,303,562
		Consumer, Cyclical (5.7%)
	393	American Airlines Pass-Through Trust		4.00		07/15/25		397,506
	622	British Airways Pass-Through Trust (United Kingdom) (a)		4.625		06/20/24		656,506
	395	Daimler Finance North America LLC (Germany)		8.50		01/18/31		581,369
	350	Family Tree Escrow LLC (a)		5.75		03/01/23		367,500
	325	Home Depot, Inc.		5.875		12/16/36		391,941
	141	Iconix Brand Group, Inc.		2.50		06/01/16		145,142
	350	Jarden Corp.		1.125		03/15/34		409,281
KRW	200,000	Lotte Shopping Co., Ltd., Series LOTT (Korea, Republic of)		0.00		01/24/18		187,279
$	300	McDonald's Corp., MTN		4.60		05/26/45		293,855
	575	QVC, Inc.		4.375		03/15/23		566,062
	125	Target Corp.		4.00		07/01/42		118,406
	336	Tesla Motors, Inc.		1.25		03/01/21		330,330
	150	Tiffany & Co.		4.90		10/01/44		143,733
	220	Toll Brothers Finance Corp.		0.50		09/15/32		229,350
	855	United Airlines Pass-Through Trust, Class A		4.30		08/15/25		880,432
	65	United Airlines Pass-Through Trust, Series A		3.75		09/03/26		64,350
	150	Walgreens Boots Alliance, Inc.		3.80		11/18/24		147,193
	360	Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. (a)		5.50		03/01/25		344,700
	600	Yum! Brands, Inc.		3.875		11/01/20		624,068
	350	ZF North America Capital, Inc. (Germany) (a)		4.50		04/29/22		344,155
								7,223,158
		Consumer, Non-Cyclical (11.9%)
	225	AbbVie, Inc.		3.60		05/14/25		222,846
	50	AbbVie, Inc.		4.40		11/06/42		47,493
	40	Actavis Funding SCS		3.80		03/15/25		39,372
	525	Actavis Funding SCS		4.75		03/15/45		501,768

See Notes to Financial Statements
32

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	150	Actavis Funding SCS		4.85	%	06/15/44	$	145,271
	500	ADT Corp. (The)		3.50		07/15/22		455,000
	400	Albea Beauty Holdings SA (a)		8.375		11/01/19		430,000
	365	Altria Group, Inc.		5.375		01/31/44		387,505
	469	Amgen, Inc.		5.15		11/15/41		483,374
	775	Anheuser-Busch InBev Finance, Inc. (Belgium)		3.70		02/01/24		794,090
	340	Aramark Services, Inc.		5.75		03/15/20		355,598
	325	AstraZeneca PLC (United Kingdom)		6.45		09/15/37		415,045
	275	BAT International Finance PLC (United Kingdom) (a)		3.50		06/15/22		277,932
	350	Baxalta, Inc. (a)		5.25		06/23/45		352,700
	200	Bayer US Finance LLC (a)		3.375		10/08/24		199,182
	260	BRF SA (Brazil) (a)		3.95		05/22/23		247,325
	450	Cardinal Health, Inc.		3.75		09/15/25		448,637
	250	Cencosud SA (Chile) (a)		6.625		02/12/45		236,301
	712	EMD Finance LLC (Germany) (a)		3.25		03/19/25		691,920
	75	Gilead Sciences, Inc.		4.50		02/01/45		74,893
	225	Gilead Sciences, Inc.		4.80		04/01/44		232,116
	250	GlaxoSmithKline Capital, Inc. (United Kingdom)		6.375		05/15/38		315,297
HKD	2,000	Hengan International Group Co., Ltd. (China)		0.00		06/27/18		275,751
$	316	Illumina, Inc.		0.00		06/15/19		371,498
	100	Mallinckrodt International Finance SA/Mallinckrodt CB LLC (a)		5.50		04/15/25		97,375
	525	Medtronic, Inc. (a)		4.625		03/15/45		532,773
	325	Novartis Capital Corp. (Switzerland)		4.40		05/06/44		336,433
	775	PepsiCo, Inc.		3.60		03/01/24		798,173
	600	Philip Morris International, Inc.		4.50		03/20/42		585,973
	875	Quest Diagnostics, Inc.		2.70		04/01/19		883,008
	800	Sigma Alimentos SA de CV (Mexico) (a)		5.625		04/14/18		869,240
	100	Spectrum Brands, Inc. (a)		5.75		07/15/25		102,000
	98	Teva Pharmaceutical Finance IV BV (Israel)		3.65		11/10/21		100,022
	130	Tyson Foods, Inc.		3.95		08/15/24		131,197
	370	United Rentals North America, Inc.		5.75		11/15/24		366,300
	350	UnitedHealth Group, Inc.		2.875		12/15/21		350,269
	750	UnitedHealth Group, Inc.		2.875		03/15/23		722,713
	930	WM Wrigley Jr. Co. (a)		2.90		10/21/19		947,883
	190	Zimmer Biomet Holdings, Inc.		5.75		11/30/39		212,008
								15,036,281
		Diversified (0.2%)
	200	Alfa SAB de CV (Mexico) (a)		5.25		03/25/24		206,000
		Energy (9.7%)
	400	Anadarko Petroleum Corp.		6.45		09/15/36		462,960
	675	APT Pipelines Ltd. (Australia) (a)		4.20		03/23/25		661,432

See Notes to Financial Statements
33

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	200	BG Energy Capital PLC (United Kingdom) (a)		5.125	%	10/15/41	$	209,681
	500	BP Capital Markets PLC (United Kingdom)		3.506		03/17/25		493,684
	675	Buckeye Partners LP		4.15		07/01/23		659,007
	275	Carrizo Oil & Gas, Inc.		6.25		04/15/23		277,063
	400	Cimarex Energy Co.		5.875		05/01/22		430,000
	125	Continental Resources, Inc.		3.80		06/01/24		114,311
	200	DCP Midstream LLC (a)		5.35		03/15/20		206,234
	600	DCP Midstream Operating LP		3.875		03/15/23		556,159
	120	Denbury Resources, Inc.		5.50		05/01/22		107,700
	425	Devon Energy Corp.		4.75		05/15/42		407,040
	475	Energy Transfer Partners LP		6.50		02/01/42		490,874
	150	EnLink Midstream Partners LP		5.60		04/01/44		146,255
	250	Ensco PLC		5.75		10/01/44		223,530
	600	Enterprise Products Operating LLC		5.95		02/01/41		655,274
	220	Hilcorp Energy I LP/Hilcorp Finance Co. (a)		5.75		10/01/25		212,300
	75	Kinder Morgan, Inc.		4.30		06/01/25		72,548
	625	Kinder Morgan, Inc.		5.55		06/01/45		579,694
	300	Kinder Morgan, Inc. (a)		5.625		11/15/23		319,643
	225	Marathon Oil Corp.		6.60		10/01/37		254,523
	325	MPLX LP		4.00		02/15/25		317,718
	500	Nexen Energy ULC (China)		6.40		05/15/37		600,978
	225	Noble Energy, Inc.		3.90		11/15/24		222,272
	200	Noble Energy, Inc.		5.05		11/15/44		192,342
	100	Phillips 66 Partners LP		4.68		02/15/45		88,363
	245	Plains All American Pipeline LP/PAA Finance Corp.		6.70		05/15/36		288,015
	300	Rowan Cos., Inc.		5.85		01/15/44		254,767
	575	Shell International Finance BV (Netherlands)		2.125		05/11/20		574,423
	325	SM Energy Co. (a)		6.125		11/15/22		335,628
	325	Spectra Energy Capital LLC		7.50		09/15/38		370,073
	275	TransCanada PipeLines Ltd. (Canada)		7.625		01/15/39		362,710
	175	Transocean, Inc.		4.30		10/15/22		132,563
	450	Transocean, Inc.		6.875		12/15/21		406,125
	475	Williams Partners LP/ACMP Finance Corp.		4.875		05/15/23		469,301
								12,155,190
		Finance (35.7%)
	390	ABB Treasury Center USA, Inc. (Switzerland) (a)		4.00		06/15/21		415,192
	800	ABN Amro Bank N.V. (Netherlands) (a)		2.50		10/30/18		813,174
	475	ACE INA Holdings, Inc.		3.35		05/15/24		476,201
	420	AerCap Ireland Capital Ltd./AerCap Global Aviation Trust (Netherlands) (a)		3.75		05/15/19		416,325
	375	Alexandria Real Estate Equities, Inc.		3.90		06/15/23		374,068
	350	Ally Financial, Inc.		4.125		03/30/20		350,217

See Notes to Financial Statements
34

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	325	American Campus Communities Operating Partnership LP		3.75	%	04/15/23	$	319,677
	300	American Express Co.		3.625		12/05/24		292,471
	350	American Express Credit Corp., MTN		2.375		05/26/20		347,729
	125	American International Group, Inc.		4.50		07/16/44		119,376
	375	American International Group, Inc.		4.875		06/01/22		411,951
	280	American International Group, Inc.		6.40		12/15/20		333,267
	825	Banco de Credito del Peru (Peru) (a)		6.125	(b)	04/24/27		883,781
	555	Bank of America Corp.		7.75		05/14/38		741,240
	620	Bank of America Corp., MTN		4.00		04/01/24		632,055
	440	Bank of America Corp., MTN		4.00		01/22/25		429,530
	136	Bank of America Corp., MTN		4.25		10/22/26		133,522
	175	Bank of America Corp., MTN		4.75		04/21/45		162,914
	375	Bank of America Corp., MTN		5.00		01/21/44		390,857
	800	BBVA Bancomer SA (Mexico) (a)		6.50		03/10/21		870,000
	610	Bear Stearns Cos., LLC (The)		5.55		01/22/17		647,302
	300	Billion Express Investments Ltd. (China)		0.75		10/18/15		302,625
	200	BNP Paribas SA (France)		4.25		10/15/24		197,533
	365	BNP Paribas SA (France)		5.00		01/15/21		403,738
	75	Boston Properties LP		3.80		02/01/24		76,036
	425	BPCE SA (France) (a)		5.15		07/21/24		432,560
	936	Capital One Bank, USA NA		3.375		02/15/23		910,721
	250	Capital One Financial Corp.		2.45		04/24/19		250,252
	170	Citigroup, Inc.		5.50		09/13/25		184,097
	170	Citigroup, Inc.		6.675		09/13/43		206,615
	650	Citigroup, Inc.		8.125		07/15/39		935,938
	375	CNA Financial Corp.		7.35		11/15/19		444,099
	1,175	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA (Netherlands)		3.95		11/09/22		1,176,700
	260	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA (Netherlands) (a)		11.00	(b)	06/30/19(c)		330,525
	270	Credit Agricole SA (France) (a)		7.875	(b)	01/23/24(c)		278,409
	825	Credit Suisse AG (Switzerland) (a)		6.50		08/08/23		904,292
	825	DBS Group Holdings Ltd. (Singapore) (a)		2.246		07/16/19		826,803
	425	Discover Bank		7.00		04/15/20		495,143
	715	Discover Financial Services		3.85		11/21/22		711,051
	300	Discover Financial Services		3.95		11/06/24		292,063
	325	Embraer Netherlands Finance BV (Brazil)		5.05		06/15/25		325,000
	450	Five Corners Funding Trust (a)		4.419		11/15/23		465,643
	600	Ford Motor Credit Co., LLC		5.00		05/15/18		645,484
	400	Ford Motor Credit Co., LLC		5.875		08/02/21		455,972
	545	General Electric Capital Corp.		5.30		02/11/21		613,266
	1,170	General Electric Capital Corp., MTN		5.875		01/14/38		1,402,157

See Notes to Financial Statements
35

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	275	General Motors Financial Co., Inc.		4.00	%	01/15/25	$	270,367
	500	General Motors Financial Co., Inc.		4.375		09/25/21		520,361
	295	Genworth Holdings, Inc.		7.70		06/15/20		320,069
	375	Goldman Sachs Group, Inc. (The)		6.25		02/01/41		444,745
	900	Goldman Sachs Group, Inc. (The)		6.75		10/01/37		1,058,901
	400	Goldman Sachs Group, Inc. (The), MTN		4.80		07/08/44		395,771
	950	Goodman Funding Pty Ltd. (Australia) (a)		6.375		04/15/21		1,092,883
	600	Hartford Financial Services Group, Inc. (The)		5.50		03/30/20		673,539
	1,675	HBOS PLC, Series G (United Kingdom) (a)		6.75		05/21/18		1,861,349
	400	Healthcare Trust of America Holdings LP		3.70		04/15/23		386,922
	410	HSBC Finance Corp.		6.676		01/15/21		474,888
	200	HSBC Holdings PLC (United Kingdom)		6.375	(b)	09/17/24(c)		200,750
	705	HSBC Holdings PLC (United Kingdom)		6.50		05/02/36		840,964
	300	Industrial & Commercial Bank of China Ltd., MTN (China)		3.231		11/13/19		305,904
	400	ING Bank N.V. (Netherlands) (a)		5.80		09/25/23		437,481
	200	ING Groep N.V. (Netherlands)		6.00	(b)	04/16/20(c)		198,375
	420	Intesa Sanpaolo SpA (Italy)		5.25		01/12/24		447,076
	500	JPMorgan Chase & Co.		3.125		01/23/25		477,962
	480	JPMorgan Chase & Co.		4.95		06/01/45		468,383
	650	JPMorgan Chase & Co.		5.50		10/15/40		730,711
	650	KeyBank NA		1.70		06/01/18		649,430
	200	Liberty Mutual Group, Inc. (a)		4.85		08/01/44		193,978
	275	Lincoln National Corp.		7.00		06/15/40		346,055
	1,170	Lloyds Bank PLC (United Kingdom) (a)		6.50		09/14/20		1,350,056
	125	Massachusetts Mutual Life Insurance Co. (a)		4.50		04/15/65		111,313
	1,000	MetLife, Inc. (See Note 7)		3.00		03/01/25		958,010
	1,315	Nationwide Building Society (United Kingdom) (a)		6.25		02/25/20		1,534,901
	425	Principal Financial Group, Inc.		8.875		05/15/19		523,637
	675	Prudential Financial, Inc.		5.625	(b)	06/15/43		701,325
	135	Prudential Financial, Inc., MTN		6.625		12/01/37		163,353
	775	QBE Capital Funding III Ltd. (Australia) (a)		7.25	(b)	05/24/41		860,067
	575	Realty Income Corp.		3.25		10/15/22		559,092
	325	Santander UK PLC (United Kingdom) (a)		5.00		11/07/23		333,132
	675	SpareBank 1 Boligkreditt (Norway) (a)		2.30		06/30/17		690,652
	350	TD Ameritrade Holding Corp.		3.625		04/01/25		355,868
	575	Weingarten Realty Investors		3.375		10/15/22		559,891
	284	Wells Fargo & Co.		5.606		01/15/44		312,608
	450	Wells Fargo & Co., MTN		4.10		06/03/26		452,489
								45,090,829

See Notes to Financial Statements
36

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
		Industrials (5.4%)
$	325	BAE Systems Holdings, Inc. (United Kingdom) (a)		3.80	%	10/07/24	$	326,969
	377	Bombardier, Inc. (Canada) (a)		6.125		01/15/23		336,473
	375	Burlington Northern Santa Fe LLC		4.55		09/01/44		370,596
	300	Caterpillar Financial Services Corp., MTN		3.25		12/01/24		297,437
	425	Caterpillar, Inc.		3.803		08/15/42		392,108
	330	CEVA Group PLC (United Kingdom) (a)		7.00		03/01/21		320,100
	480	CRH America, Inc. (Ireland)		8.125		07/15/18		563,340
	200	FedEx Corp.		4.10		02/01/45		180,381
	248	General Cable Corp.		4.50	(d)	11/15/29		206,770
	220	General Electric Co.		4.50		03/11/44		223,971
	1,060	Heathrow Funding Ltd. (United Kingdom) (a)		4.875		07/15/21		1,162,799
	510	MasTec, Inc.		4.875		03/15/23		467,925
	575	Siemens Financieringsmaatschappij N.V. (Germany) (a)		3.25		05/27/25		565,349
	700	Trinity Industries, Inc.		4.55		10/01/24		676,551
	748	Union Pacific Railroad Co., Pass-Through Trust		3.227		05/14/26		745,558
								6,836,327
		Technology (2.4%)
	475	Apple, Inc.		4.45		05/06/44		475,481
	375	Citrix Systems, Inc.		0.50		04/15/19		397,969
	264	Nuance Communications, Inc.		2.75		11/01/31		268,455
	227	NVIDIA Corp.		1.00		12/01/18		261,192
	395	QUALCOMM, Inc.		4.80		05/20/45		379,925
	300	Red Hat, Inc. (a)		0.25		10/01/19		368,625
	438	Salesforce.com, Inc.		0.25		04/01/18		533,539
	375	SanDisk Corp.		0.50		10/15/20		365,390
								3,050,576
		Utilities (8.4%)
	400	Alabama Power Co.		3.75		03/01/45		360,312
	475	Appalachian Power Co.		3.40		06/01/25		469,213
	525	Boston Gas Co. (a)		4.487		02/15/42		528,120
	530	CEZ AS (Czech Republic) (a)		4.25		04/03/22		556,379
	495	CMS Energy Corp.		5.05		03/15/22		545,484
	280	CMS Energy Corp.		6.25		02/01/20		324,612
	275	Duke Energy Carolinas LLC		3.75		06/01/45		251,434
	330	EDP Finance BV (Portugal) (a)		5.25		01/14/21		346,424
	225	Enel Finance International N.V. (Italy) (a)		6.00		10/07/39		250,679
	210	Enel SpA (Italy) (a)		8.75	(b)	09/24/73		241,762
	225	Entergy Corp. (e)		4.00		07/15/22		227,068
	1,400	Exelon Generation Co., LLC		4.00		10/01/20		1,462,293
	199	Fermaca Enterprises S de RL de CV (Mexico) (a)		6.375		03/30/38		202,518

See Notes to Financial Statements
37

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

PRINCIPAL AMOUNT (000)			COUPON RATE			MATURITY DATE	VALUE
$	200	GNL Quintero SA (Chile) (a)		4.634	%	07/31/29	$	201,075
	850	Jersey Central Power & Light Co. (a)		4.70		04/01/24		893,044
	275	Oncor Electric Delivery Co., LLC (a)		2.95		04/01/25		264,221
	325	Origin Energy Finance Ltd. (Australia) (a)		3.50		10/09/18		333,653
	590	Puget Energy, Inc.		6.50		12/15/20		691,492
	675	Sempra Energy		2.40		03/15/20		670,489
	250	South Carolina Electric & Gas Co.		4.50		06/01/64		228,134
	870	TransAlta Corp. (Canada)		4.50		11/15/22		864,765
	475	Virginia Electric & Power Co.		4.20		05/15/45		460,163
	250	WEC Energy Group, Inc.		3.55		06/15/25		249,860
								10,623,194
		Total Corporate Bonds(Cost $118,717,731)						120,556,773
		Asset-Backed Securities (0.9%)
		CVS Pass-Through Trust
	892			6.036		12/10/28		1,017,506
	104	(a)		8.353		07/10/31		138,880
		Total Asset-Backed Securities(Cost $996,800)						1,156,386
		Sovereign (0.6%)
	240	Pertamina Persero PT (Indonesia) (a)		6.45		05/30/44		237,600
	550	Sinopec Group Overseas Development 2015 Ltd. (China) (a)		2.50		04/28/20		542,327
		Total Sovereign(Cost $788,460)						779,927
		Variable Rate Senior Loan Interests (0.8%)
		Consumer, Cyclical (0.2%)
	278	Diamond Resorts Corp., Term Loan		5.50		07/31/15		278,962
		Energy (0.3%)
	372	Drillships Ocean Ventures, Inc., Term B (Cyprus)		5.50		07/27/15		318,220
		Technology (0.3%)
	353	Aspect Software, Inc., Term B		7.25		08/11/15		350,715
		Total Variable Rate Senior Loan Interests(Cost $1,009,489)						947,897
		Short-Term Investments (1.9%)
		U.S. Treasury Security (1.1%)
	1,389	U.S. Treasury Bill (f)(g) (Cost $1,388,450)		0.089		12/10/15		1,388,765

See Notes to Financial Statements
38

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

NUMBER OF SHARES (000)					VALUE
		Investment Company (0.8%)
	1,052	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (See Note 7) (Cost $1,051,830)			$	1,051,830
		Total Short-Term Investments(Cost $2,440,280)				2,440,595
		Total Investments(Cost $123,952,760) (h)	99.7	%		125,881,578
		Other Assets in Excess of Liabilities	0.3			377,164
		Net Assets	100.0	%	$	126,258,742

  MTN  Medium Term Note.

  (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 June 30, 2015.

  (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 June 30, 2015.

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

  (e)  When-issued security.

  (f)  Rate shown is the yield to maturity at June 30, 2015.

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

  (h)  Securities are available for collateral in connection with purchase of when-issued security, open foreign currency forward exchange contracts, futures contracts and swap agreements.

FOREIGN CURRENCY FORWARD EXCHANGE CONTRACTS OPEN AT JUNE 30, 2015:

COUNTERPARTY	CONTRACTS TO DELIVER		IN EXCHANGE FOR		DELIVERY DATE	UNREALIZED APPRECIATION (DEPRECIATION)
Citibank NA	EUR	114,252	$	124,910	07/03/15	$	(2,466	)
HSBC Bank PLC	HKD	2,082,500	$	268,587	07/03/15		(69	)
HSBC Bank PLC	$	127,222	EUR	114,252	07/03/15		154
HSBC Bank PLC	EUR	114,252	$	127,274	08/05/15		(156	)
Net Unrealized Depreciation						$	(2,537	)

See Notes to Financial Statements
39

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

FUTURES CONTRACTS OPEN AT JUNE 30, 2015:

NUMBER OF CONTRACTS		LONG/SHORT	DESCRIPTION, DELIVERY MONTH AND YEAR	UNDERLYING FACE AMOUNT AT VALUE			UNREALIZED APPRECIATION (DEPRECIATION)
	64	Long	U.S. Treasury 2 yr. Note, Sep-15	$	14,012,000		$	23,344
	51	Long	U.S. Treasury 5 yr. Note, Sep-15		6,082,148			(5,977	)
	25	Long	U.S. Treasury Long Bond, Sep-15		3,771,094			(17,217	)
	27	Short	U.S. Treasury Ultra Long Bond, Sep-15		(4,159,688	)		76,750
	78	Short	U.S. Treasury 10 yr. Note, Sep-15		(9,841,406	)		67,140
Net Unrealized Appreciation							$	144,040

CREDIT DEFAULT SWAP AGREEMENTS OPEN AT JUNE 30, 2015:

SWAP COUNTERPARTY & REFERENCE OBLIGATION	BUY/SELL PROTECTION	NOTIONAL AMOUNT (000)		INTEREST RATE			TERMINATION DATE	UNREALIZED APPRECIATION (DEPRECIATION)			UPFRONT PAYMENTS PAID (RECEIVED)			VALUE			CREDIT RATING OF REFERENCE OBLIGATION†
Barclays Bank PLC Yum! Brands, Inc.	Buy	$	825		1.00	%	12/20/18	$	95		$	(14,319	)	$	(14,224	)	BBB
Barclays Bank PLC Quest   Diagnostics, Inc.	Buy		845		1.00		03/20/19		(29,793	)		16,217			(13,576	)	BBB+
Morgan Stanley & Co., LLC*  CDX.NA.HY.24	Buy		3,267		5.00		06/20/20		44,573			(253,096	)		(208,523	)	NR
Morgan Stanley & Co., LLC*  CDX.NA.IG.24	Buy		11,650		1.00		06/20/20		51,776			(220,903	)		(169,127	)	NR
Total Credit Default Swaps		$	16,587					$	66,651		$	(472,101	)	$	(405,450	)

See Notes to Financial Statements
40

Morgan Stanley Variable Investment Series - Income Plus

Portfolio of Investments n June 30, 2015 (unaudited)(continued)

INTEREST RATE SWAP AGREEMENTS OPEN AT JUNE 30, 2015:

SWAP COUNTERPARTY	NOTIONAL AMOUNT (000)		FLOATING RATE INDEX	PAY/RECEIVE FLOATING RATE	FIXED RATE			TERMINATION DATE	UNREALIZED APPRECIATION (DEPRECIATION)
Morgan Stanley & Co., LLC*	$	9,700	3 Month LIBOR	Receive		1.59	%	05/05/20	$	49,328
Morgan Stanley & Co., LLC*		4,500	3 Month LIBOR	Receive		2.49		06/09/25		(22,528	)
Net Unrealized Appreciation									$	26,800

  LIBOR  London Interbank Offered Rate.

  NR  Not Rated.

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

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

Currency Abbreviations:

EUR  Euro.

HKD  Hong Kong Dollar.

KRW  South Korean Won.

LONG TERM CREDIT ANALYSIS+

AA	7.0	%
A	31.8
BBB	47.7
BB	7.9
B or Below	2.9
Not Rated	2.7
	100.0	%++

  +  The ratings shown are based on the Portfolio's security ratings as determined by Standard & Poor's, Moody's or Fitch, each a Nationally Recognized Statistical Ratings Organization ("NRSRO").

  ++  Does not include open long/short futures contracts with an underlying face amount of $37,866,336 with net unrealized appreciation of $144,040. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of $2,537. Also does not include open swap agreements with net unrealized appreciation of $93,451.

See Notes to Financial Statements
41

Morgan Stanley Variable Investment Series - European Equity

Portfolio of Investments n June 30, 2015 (unaudited)

NUMBER OF SHARES			VALUE
		Common Stocks (98.9%)
		France (21.7%)
		Aerospace & Defense
	14,528	Airbus Group SE	$	942,638
		Banks
	16,978	BNP Paribas SA		1,024,947
	57,338	Credit Agricole SA		852,736
				1,877,683
		Communications Equipment
	172,632	Alcatel-Lucent (a)		628,955
		Electrical Equipment
	14,241	Schneider Electric SE		983,236
		Hotels, Restaurants & Leisure
	19,283	Accor SA		973,199
		Insurance
	39,434	AXA SA		994,882
		Media
	12,611	Publicis Groupe SA		932,417
	25,402	SES SA		853,406
				1,785,823
		Multi-Utilities
	45,564	Suez Environnement Co.		847,548
		Total France		9,033,964
		Germany (13.1%)
		Automobiles
	13,485	Daimler AG (Registered)		1,227,355
	3,726	Volkswagen AG (Preference)		864,018
				2,091,373
		Health Care Providers & Services
	16,926	Fresenius SE & Co., KGaA		1,085,965
		Industrial Conglomerates
	9,070	Siemens AG (Registered)		913,591
		Pharmaceuticals
	9,729	Bayer AG (Registered)		1,361,762
		Total Germany		5,452,691

NUMBER OF SHARES			VALUE
		Ireland (2.2%)
		Construction Materials
	32,836	CRH PLC	$	926,894
		Italy (2.2%)
		Banks
	136,193	UniCredit SpA		914,804
		Netherlands (4.2%)
		Diversified Telecommunication Services
	223,046	Koninklijke KPN N.V.		852,913
		Media
	37,531	Reed Elsevier N.V.		890,177
		Total Netherlands		1,743,090
		Spain (4.1%)
		Banks
	89,938	Banco Bilbao Vizcaya Argentaria SA		881,550
		Information Technology Services
	20,766	Amadeus IT Holding SA, Class A		827,763
		Total Spain		1,709,313
		Sweden (1.8%)
		Machinery
	60,705	Volvo AB, Class B		753,517
		Switzerland (17.6%)
		Chemicals
	1,964	Syngenta AG (Registered)		798,246
		Food Products
	26,342	Nestle SA (Registered)		1,901,797
		Insurance
	3,298	Zurich Insurance Group AG (a)		1,003,915

See Notes to Financial Statements
42

Morgan Stanley Variable Investment Series - European Equity

Portfolio of Investments n June 30, 2015 (unaudited) continued

NUMBER OF SHARES			VALUE
		Pharmaceuticals
	19,463	Novartis AG (Registered)	$	1,918,301
	6,139	Roche Holding AG (Genusschein)		1,720,325
				3,638,626
		Total Switzerland		7,342,584
		United Kingdom (32.0%)
		Aerospace & Defense
	46,946	Rolls-Royce Holdings PLC (a)		641,746
		Banks
	283,952	Barclays PLC		1,162,246
		Household Products
	14,031	Reckitt Benckiser Group PLC		1,209,896
		Insurance
	47,961	Prudential PLC		1,154,872
		Media
	40,306	Pearson PLC		763,136
		Metals & Mining
	31,822	BHP Billiton PLC		624,504
	195,648	Glencore PLC (a)		784,822
				1,409,326
		Oil, Gas & Consumable Fuels
	176,161	BP PLC		1,162,946
	37,444	Royal Dutch Shell PLC, Class A		1,051,067
				2,214,013
		Pharmaceuticals
	46,406	GlaxoSmithKline PLC		964,306
		Tobacco
	24,730	British American Tobacco PLC		1,326,967
	22,733	Imperial Tobacco Group PLC		1,095,509
				2,422,476
		Wireless Telecommunication Services
	376,649	Vodafone Group PLC		1,360,275
		Total United Kingdom		13,302,292
		Total Common Stocks(Cost $31,053,566)		41,179,149

NUMBER OF SHARES (000)					VALUE
		Short-Term Investment (0.6%)
		Investment Company
	261	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (See Note 7) (Cost $261,367)			$	261,367
Total Investments(Cost $31,314,933)			99.5	%		41,440,516
Other Assets in Excess of Liabilities			0.5			196,595
Net Assets			100.0	%	$	41,637,111

  (a)  Non-income producing security.

See Notes to Financial Statements
43

Morgan Stanley Variable Investment Series - European Equity

Summary of Investments n June 30, 2015 (unaudited)

INDUSTRY	VALUE		PERCENT OF TOTAL INVESTMENTS
Pharmaceuticals	$	5,964,694		14.4	%
Banks		4,836,283		11.7
Media		3,439,136		8.3
Insurance		3,153,669		7.6
Tobacco		2,422,476		5.9
Oil, Gas & Consumable Fuels		2,214,013		5.3
Automobiles		2,091,373		5.1
Food Products		1,901,797		4.6
Aerospace & Defense		1,584,384		3.8
Metals & Mining		1,409,326		3.4
Wireless Telecommunication Services		1,360,275		3.3
Household Products		1,209,896		2.9
Health Care Providers & Services		1,085,965		2.6
Electrical Equipment		983,236		2.4
Hotels, Restaurants & Leisure		973,199		2.4
Construction Materials		926,894		2.2
Industrial Conglomerates		913,591		2.2
Diversified Telecommunication Services		852,913		2.1
Multi-Utilities		847,548		2.0
Information Technology Services		827,763		2.0
Chemicals		798,246		1.9
Machinery		753,517		1.8
Communications Equipment		628,955		1.5
Investment Company		261,367		0.6
	$	41,440,516		100.0	%

See Notes to Financial Statements
44

Morgan Stanley Variable Investment Series - Multi Cap Growth

Portfolio of Investments n June 30, 2015 (unaudited)

NUMBER OF SHARES			VALUE
		Common Stocks (92.6%)
		Air Freight & Logistics (0.9%)
	51,560	XPO Logistics, Inc. (a)	$	2,329,481
		Automobiles (4.5%)
	42,252	Tesla Motors, Inc. (a)		11,334,522
		Biotechnology (0.5%)
	11,012	Alnylam Pharmaceuticals, Inc. (a)		1,320,008
		Capital Markets (1.1%)
	132,379	WisdomTree Investments, Inc.		2,907,705
		Electrical Equipment (1.5%)
	76,971	Babcock & Wilcox Co. (The)		2,524,649
	21,724	SolarCity Corp. (a)(b)		1,163,320
				3,687,969
		Food Products (4.4%)
	53,552	Keurig Green Mountain, Inc.		4,103,690
	79,143	Mead Johnson Nutrition Co.		7,140,281
				11,243,971
		Health Care Equipment & Supplies (3.8%)
	19,710	Intuitive Surgical, Inc. (a)		9,549,495
		Health Care Technology (3.7%)
	59,995	athenahealth, Inc. (a)		6,874,227
	45,843	Medidata Solutions, Inc. (a)		2,490,192
				9,364,419
		Hotels, Restaurants & Leisure (3.4%)
	53,197	Fiesta Restaurant Group, Inc. (a)		2,659,850
	110,443	Starbucks Corp.		5,921,401
				8,581,251
		Information Technology Services (4.4%)
	69,517	Mastercard, Inc., Class A		6,498,449
	70,062	Visa, Inc., Class A		4,704,664
				11,203,113

NUMBER OF SHARES			VALUE
		Internet & Catalog Retail (12.5%)
	48,239	Amazon.com, Inc. (a)	$	20,940,068
	93,580	JD.com, Inc. ADR (China) (a)		3,191,078
	6,644	Priceline Group, Inc. (The) (a)		7,649,702
				31,780,848
		Internet Software & Services (20.2%)
	38,997	Alibaba Group Holding Ltd. ADR (China) (a)		3,208,283
	235,409	Facebook, Inc., Class A (a)		20,189,853
	21,812	Google, Inc., Class C (a)		11,353,364
	36,924	LinkedIn Corp., Class A (a)		7,629,606
	243,294	Twitter, Inc. (a)		8,812,109
				51,193,215
		Life Sciences Tools & Services (5.5%)
	64,547	Illumina, Inc. (a)		14,094,483
		Machinery (1.0%)
	130,348	Manitowoc Co., Inc. (The)		2,554,821
		Media (1.8%)
	29,405	Naspers Ltd., Class N (South Africa)		4,580,180
		Pharmaceuticals (7.1%)
	46,804	Valeant Pharmaceuticals International, Inc. (Canada) (a)		10,397,508
	156,780	Zoetis, Inc.		7,559,932
				17,957,440
		Professional Services (1.0%)
	29,802	CEB, Inc.		2,594,562
		Software (9.6%)
	44,303	FireEye, Inc. (a)		2,166,860
	115,320	Salesforce.com, Inc. (a)		8,029,731
	114,711	Splunk, Inc. (a)		7,986,180
	80,456	Workday, Inc., Class A (a)		6,146,034
				24,328,805

See Notes to Financial Statements
45

Morgan Stanley Variable Investment Series - Multi Cap Growth

Portfolio of Investments n June 30, 2015 (unaudited) continued

NUMBER OF SHARES			VALUE
		Specialty Retail (2.2%)
	74,182	Five Below, Inc. (a)	$	2,932,414
	28,452	Restoration Hardware Holdings, Inc. (a)		2,777,769
				5,710,183
		Tech Hardware, Storage & Peripherals (3.5%)
	32,369	3D Systems Corp. (a)(b)		631,843
	62,670	Apple, Inc.		7,860,385
	10,924	Stratasys Ltd. (a)		381,575
				8,873,803
		Total Common Stocks (Cost $129,230,278)		235,190,274
		Preferred Stocks (4.2%)
		Hotels, Restaurants & Leisure (1.5%)
	114,561	Blue Bottle Coffee, Inc., Series B (a)(c)(d)(e) (acquisition cost - $1,657,606; acquired 01/24/14)		3,817,172
		Internet & Catalog Retail (1.4%)
	42,717	Airbnb, Inc., Series D (a)(c)(d)(e) (acquisition cost - $1,739,139; acquired 04/16/14)		3,617,276
		Life Sciences Tools & Services (0.8%)
	627,809	10X Technologies, Inc., Series B (a)(d)(e)		2,059,213
		Software (0.5%)
	141,612	Lookout, Inc., Series F (a)(c)(d)(e) (acquisition cost - $1,617,648; acquired 06/17/14)		1,139,977
		Total Preferred Stocks(Cost $7,067,328)		10,633,638

NOTIONAL AMOUNT			VALUE
		Call Options Purchased (0.0%)
		Foreign Currency Options
	33,880,017	USD/CNY June 2016 @ CNY 6.70	$	73,825
	41,582,002	USD/CNY November 2015 @ CNY 6.65		16,466
		Total Call Options Purchased(Cost $268,121)		90,291
NUMBER OF SHARES (000)
		Short-Term Investments (3.6%) Securities held as Collateral on Loaned Securities (0.3%)
		Investment Company (0.2%)
	521	Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (See Note 7)		521,378
PRINCIPAL AMOUNT (000)
		Repurchase Agreements (0.1%)
$	171	Barclays Capital, Inc. (0.10%, dated 06/30/15, due 07/01/15; proceeds $171,189; fully collateralized by various U.S. Government obligations; 0.88% - 2.00% due 02/28/17 - 10/31/21; valued at $174,613)		171,189

See Notes to Financial Statements
46

Morgan Stanley Variable Investment Series - Multi Cap Growth

Portfolio of Investments n June 30, 2015 (unaudited) continued

PRINCIPAL AMOUNT (000)			VALUE
$	19	BNP Paribas Securities Corp. (0.10%, dated 06/30/15, due 07/01/15; proceeds $19,021; fully collateralized by various U.S. Government agency securities; 2.35% - 5.50% due 12/22/15 - 06/15/43 and a U.S. Government obligation; 0.63% due 07/15/16; valued at $19,402)	$	19,021
	26	Merrill Lynch & Co., Inc. (0.11%, dated 06/30/15, due 07/01/15; proceeds $25,666; fully collateralized by various U.S. Government obligations; Zero Coupon - 0.25% due 05/15/16 - 02/15/24; valued at $26,179)		25,666
				215,876
		Total Securities held as Collateral on Loaned Securities(Cost $737,254)		737,254

NUMBER OF SHARES (000)					VALUE
		Investment Company (3.3%)
	8,346	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (See Note 7) (Cost $8,345,927)			$	8,345,927
		Total Short-Term Investments(Cost $9,083,181)				9,083,181
Total Investments(Cost $145,648,908)			100.4	%		254,997,384
Liabilities in Excess of Other Assets			(0.4	)		(1,139,005	)
Net Assets			100.0	%	$	253,858,379

  ADR  American Depositary Receipt.

  (a)  Non-income producing security.

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

  (c)  Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The 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 June 30, 2015 amounts to $8,574,425 and represents 3.4% of net assets.

See Notes to Financial Statements
47

Morgan Stanley Variable Investment Series - Multi Cap Growth

Portfolio of Investments n June 30, 2015 (unaudited) continued

  (d)  Illiquid security.

  (e)  At June 30, 2015, the Portfolio held fair valued securities valued at $10,633,638, representing 4.2% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

Currency Abbreviation:

CNY  Chinese Yuan Renminbi.

USD  United States Dollar.

SUMMARY OF INVESTMENTS INDUSTRY	VALUE			PERCENT OF TOTAL INVESTMENTS
Internet Software & Services	$	51,193,215			20.1	%
Internet & Catalog Retail		35,398,124			13.9
Software		25,468,782			10.0
Pharmaceuticals		17,957,440			7.1
Life Sciences Tools & Services		16,153,696			6.4
Hotels, Restaurants & Leisure		12,398,423			4.9
Automobiles		11,334,522			4.5
Food Products		11,243,971			4.4
Information Technology Services		11,203,113			4.4
Health Care Equipment & Supplies		9,549,495			3.8
Health Care Technology		9,364,419			3.7
Tech Hardware, Storage & Peripherals		8,873,803			3.5
Investment Company		8,345,927			3.3
Specialty Retail		5,710,183			2.2
Media		4,580,180			1.8
Electrical Equipment		3,687,969			1.5
Capital Markets		2,907,705			1.1
Professional Services		2,594,562			1.0
Machinery		2,554,821			1.0
Air Freight & Logistics		2,329,481			0.9
Biotechnology		1,320,008			0.5
Other		90,291			0.0	+
	$	254,260,130	++		100.0	%

+  Amounts less than 0.05%.

++  Does not reflect the value of securities held as collateral on loaned securities.

See Notes to Financial Statements
48

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Morgan Stanley Variable Investment Series

Financial Statements

Statements of Assets and Liabilities
June 30, 2015 (unaudited)

	Money Market			Limited Duration			Income Plus
Assets:
Investments in securities, at value*	$	56,388,577	(1)	$	32,928,513		$	123,871,738
Investment in affiliates, at value**		—			518,682			2,009,840
Total investments in securities, at value		56,388,577			33,447,195			125,881,578
Unrealized appreciation on open swap agreements		—			26			95
Unrealized appreciation on open foreign currency forward exchange contracts		—			—			154
Cash		18,849			—			—
Receivable for:
Interest		8,752			182,821			1,388,773
Shares of beneficial interest sold		6,454			559			319,420
Investments sold		—			306,579			1,202
Foreign withholding taxes reclaimed		—			—			—
Dividends		—			—			—
Premium paid on open swap agreements		—			4,798			16,217
Interest and Dividends from affiliates		—			888			9,941
Variation margin on open swap agreements		—			251			—
Due from Adviser		5,149			—			—
Prepaid expenses and other assets		12,989			6,367			13,684
Total Assets		56,440,770			33,949,484			127,631,064
Liabilities:
Collateral on securities loaned, at value		—			—			—
Unrealized depreciation on open swap agreements		—			8,815			29,793
Unrealized depreciation on open foreign currency forward exchange contracts		—			—			2,691
Payable to bank		—			28			1,201
Due to broker		—			—			—
Payable for:
Investments purchased		—			—			1,152,840
Shares of beneficial interest redeemed		135,399			18,839			42
Advisory fee		—			8,875			46,760
Distribution fee (Class Y)		—			5,814			14,063
Administration fee		—			2,389			8,938
Variation margin on open swap agreements		—			—			24,144
Premium received on open swap agreements		—			3,905			14,319
Variation margin on open futures contracts		—			1,869			5,044
Transfer and sub transfer agent fee		350			384			345
Accrued expenses and other payables		44,748			43,747			72,142
Total Liabilities		180,497			94,665			1,372,322
Net Assets	$	56,260,273		$	33,854,819		$	126,258,742
Composition of Net Assets:
Paid-in-capital	$	56,265,271		$	61,092,519		$	120,425,124
Net unrealized appreciation (depreciation)		—			219,903			2,163,772
Accumulated undistributed net investment income (net investment loss)		(3,604	)		159,806			2,165,110
Accumulated net realized gain (loss)		(1,394	)		(27,617,409	)		1,504,736
Net Assets	$	56,260,273		$	33,854,819		$	126,258,742
* Cost	$	56,388,577		$	32,709,433		$	121,913,680
** Affiliated Cost	$	—		$	520,252		$	2,039,080
Class X Shares:
Net Assets	$	27,380,311		$	7,489,299		$	62,614,817
Shares Outstanding (unlimited shares authorized, $0.01 par value)		27,381,989			1,009,590			5,538,258
Net Asset Value Per Share	$	1.00		$	7.42		$	11.31
Class Y Shares:
Net Assets	$	28,879,962		$	26,365,520		$	63,643,925
Shares Outstanding (unlimited shares authorized, $0.01 par value)		28,882,365			3,555,620			5,636,099
Net Asset Value Per Share	$	1.00		$	7.42		$	11.29

⁽¹⁾  Including repurchase agreement of $29,590,000.

⁽²⁾  Including security loaned at value of $733,267.

⁽³⁾  Including foreign currency valued at $43,452 with a cost of $43,644.

See Notes to Financial Statements
50

	European Equity			Multi Cap Growth
Assets:
Investments in securities, at value*	$	41,179,149		$	246,130,079	(2)
Investment in affiliates, at value**		261,367			8,867,305
Total investments in securities, at value		41,440,516			254,997,384
Unrealized appreciation on open swap agreements		—			—
Unrealized appreciation on open foreign currency forward exchange contracts		—			—
Cash		43,452	(3)		13,349
Receivable for:
Interest		—			—
Shares of beneficial interest sold		2,632			10,057
Investments sold		10,591			—
Foreign withholding taxes reclaimed		133,070			—
Dividends		82,956			48,043
Premium paid on open swap agreements		—			—
Interest and Dividends from affiliates		52			1,599
Variation margin on open swap agreements		—			—
Due from Adviser		—			—
Prepaid expenses and other assets		12,995			21,632
Total Assets		41,726,264			255,092,064
Liabilities:
Collateral on securities loaned, at value		—			750,603
Unrealized depreciation on open swap agreements		—			—
Unrealized depreciation on open foreign currency forward exchange contracts		—			—
Payable to bank		—			—
Due to broker		—			60,000
Payable for:
Investments purchased		—			—
Shares of beneficial interest redeemed		17,205			229,722
Advisory fee		20,167			94,874
Distribution fee (Class Y)		1,838			12,376
Administration fee		3,056			18,077
Variation margin on open swap agreements		—			—
Premium received on open swap agreements		—			—
Variation margin on open futures contracts		—			—
Transfer and sub transfer agent fee		462			336
Accrued expenses and other payables		46,425			67,697
Total Liabilities		89,153			1,233,685
Net Assets	$	41,637,111		$	253,858,379
Composition of Net Assets:
Paid-in-capital	$	37,690,710		$	126,894,523
Net unrealized appreciation (depreciation)		10,125,314			109,348,476
Accumulated undistributed net investment income (net investment loss)		845,214			(386,885	)
Accumulated net realized gain (loss)		(7,024,127	)		18,002,265
Net Assets	$	41,637,111		$	253,858,379
* Cost	$	31,053,566		$	136,781,603
** Affiliated Cost	$	261,367		$	8,867,305
Class X Shares:
Net Assets	$	33,698,210		$	198,445,331
Shares Outstanding (unlimited shares authorized, $0.01 par value)		1,882,672			3,978,386
Net Asset Value Per Share	$	17.90		$	49.88
Class Y Shares:
Net Assets	$	7,938,901		$	55,413,048
Shares Outstanding (unlimited shares authorized, $0.01 par value)		444,100			1,134,552
Net Asset Value Per Share	$	17.88		$	48.84

51

Morgan Stanley Variable Investment Series

Financial Statements continued

Statements of Operations
For the six months ended June 30, 2015 (unaudited)

	Money Market			Limited Duration			Income Plus
Net Investment Income:
Income
Interest	$	61,961		$	341,041		$	2,760,106
Dividends†		—			—			—
Income from securities loaned - net		—			—			—
Interest and dividends from affiliates (Note 7)		—			2,389			23,610
Total Income		61,961			343,430			2,783,716
†Net of foreign withholding taxes		—			—			—
Expenses
Advisory fee (Note 4)		129,455			52,400			278,872
Distribution fee (Class Y shares) (Note 5)		37,879			34,034			83,645
Professional fees		36,643			47,184			48,600
Administration fee (Note 4)		14,384			13,973			53,118
Custodian fees		13,289			14,050			20,024
Shareholder reports and notices		6,039			6,186			9,144
Trustees' fees and expenses		679			1,531			3,356
Transfer agent fees and expenses (Note 6)		1,528			1,488			1,514
Other		15,343			17,963			24,291
Total Expenses		255,239			188,809			522,564
Less: amounts waived		(196,154	)(4)		—			—
Less: rebate from Morgan Stanley affiliated cash sweep (Note 7)		—			(315	)		(1,269	)
Net Expenses		59,085			188,494			521,295
Net Investment Income (Loss)		2,876			154,936			2,262,421
Realized and Unrealized Gain (Loss):
Realized Gain on:
Investments		92			56,376			2,042,065
Investments in affiliates (Note 7)		—			3,317			147,000
Futures contracts		—			(37,891	)		630,827
Swap agreements		—			(189,568	)		(1,201,372	)
Foreign currency forward exchange contracts		—			—			53,717
Foreign currency translation		—			—			(6,970	)
Net Realized Gain (Loss)		92			(167,766	)		1,665,267
Change in Unrealized Appreciation (Depreciation) on:
Investments		—			24,045			(4,936,518	)
Investments in affiliates (Note 7)		—			(1,493	)		(165,740	)
Futures contracts		—			29,742			29,304
Swap agreements		—			79,867			476,279
Foreign currency forward exchange contracts		—			—			(24,514	)
Foreign currency translation		—			—			7,592
Net Change in Unrealized Appreciation (Depreciation)		—			132,161			(4,613,597	)
Net Gain (Loss)		92			(35,605	)		(2,948,330	)
Net Increase (Decrease)	$	2,968		$	119,331		$	(685,909	)

⁽⁴⁾  See Note 5.

⁽⁵⁾  See Note 4.

See Notes to Financial Statements
52

	European Equity			Multi Cap Growth
Net Investment Income:
Income
Interest	$	—		$	—
Dividends†		1,060,985			343,992
Income from securities loaned - net		15,219			83,520
Interest and dividends from affiliates (Note 7)		401			7,348
Total Income		1,076,605			434,860
†Net of foreign withholding taxes		95,490			—
Expenses
Advisory fee (Note 4)		188,413			540,252
Distribution fee (Class Y shares) (Note 5)		10,605			70,013
Professional fees		43,009			48,349
Administration fee (Note 4)		17,325			102,905
Custodian fees		9,816			9,855
Shareholder reports and notices		12,892			15,382
Trustees' fees and expenses		318			4,201
Transfer agent fees and expenses (Note 6)		1,631			1,562
Other		7,302			11,097
Total Expenses		291,311			803,616
Less: amounts waived		(64,140	)(5)		(404	)(5)
Less: rebate from Morgan Stanley affiliated cash sweep (Note 7)		(256	)		(4,637	)
Net Expenses		226,915			798,575
Net Investment Income (Loss)		849,690			(363,715	)
Realized and Unrealized Gain (Loss):
Realized Gain on:
Investments		997,301			18,128,409
Investments in affiliates (Note 7)		—			—
Futures contracts		—			—
Swap agreements		—			—
Foreign currency forward exchange contracts		—			—
Foreign currency translation		(11,569	)		(2,974	)
Net Realized Gain (Loss)		985,732			18,125,435
Change in Unrealized Appreciation (Depreciation) on:
Investments		425,185			1,021,388
Investments in affiliates (Note 7)		—			—
Futures contracts		—			—
Swap agreements		—			—
Foreign currency forward exchange contracts		—			—
Foreign currency translation		8,183			—
Net Change in Unrealized Appreciation (Depreciation)		433,368			1,021,388
Net Gain (Loss)		1,419,100			19,146,823
Net Increase (Decrease)	$	2,268,790		$	18,783,108

53

Morgan Stanley Variable Investment Series

Financial Statements continued

Statements of Changes in Net Assets

	Money Market						Limited Duration						Income Plus
	For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014			For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014			For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014
	(unaudited)						(unaudited)						(unaudited)
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss)	$	2,876		$	6,785		$	154,936		$	352,903		$	2,262,421		$	5,034,886
Net realized gain (loss)		92			61			(167,766	)		302,812			1,665,267			6,974,571
Net change in unrealized appreciation (depreciation)		—			—			132,161			(264,862	)		(4,613,597	)		(956,670	)
Net Increase (Decrease)		2,968			6,846			119,331			390,853			(685,909	)		11,052,787
Dividends and Distributions to Shareholders from:
Net investment income
Class X shares		(1,361	)		(3,152	)		(98,343	)		(155,915	)		(2,505,911	)		(3,018,703	)
Class Y shares		(1,515	)		(3,633	)		(270,785	)		(458,467	)		(2,354,828	)		(2,962,049	)
Net realized gain
Class X shares		—			—			—			—			(39,367	)		—
Class Y shares		—			—			—			—			(39,986	)		—
Total Dividends and Distributions		(2,876	)		(6,785	)		(369,128	)		(614,382	)		(4,940,092	)		(5,980,752	)
Net decrease from transactions in shares of beneficial interest		(3,567,766	)		(13,474,244	)		(2,125,310	)		(5,866,557	)		(5,735,656	)		(23,878,164	)
Net Decrease		(3,567,674	)		(13,474,183	)		(2,375,107	)		(6,090,086	)		(11,361,657	)		(18,806,129	)
Net Assets:
Beginning of period		59,827,947			73,302,130			36,229,926			42,320,012			137,620,399			156,426,528
End of Period	$	56,260,273		$	59,827,947		$	33,854,819		$	36,229,926		$	126,258,742		$	137,620,399
Accumulated Undistributed Net Investment Income (Loss)	$	(3,604	)	$	(3,604	)	$	159,806		$	373,998		$	2,165,110		$	4,763,428

See Notes to Financial Statements
54

	European Equity						Multi Cap Growth
	For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014			For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014
	(unaudited)						(unaudited)
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss)	$	849,690		$	2,065,456		$	(363,715	)	$	(436,456	)
Net realized gain (loss)		985,732			4,257,032			18,125,435			44,256,463
Net change in unrealized appreciation (depreciation)		433,368			(10,780,202	)		1,021,388			(29,486,704	)
Net Increase (Decrease)		2,268,790			(4,457,714	)		18,783,108			14,333,303
Dividends and Distributions to Shareholders from:
Net investment income
Class X shares		(1,678,581	)		(966,435	)		—			—
Class Y shares		(371,093	)		(223,195	)		—			—
Net realized gain
Class X shares		—			—			(34,189,702	)		(26,529,060	)
Class Y shares		—			—			(9,724,711	)		(7,687,678	)
Total Dividends and Distributions		(2,049,674	)		(1,189,630	)		(43,914,413	)		(34,216,738	)
Net decrease from transactions in shares of beneficial interest		(983,285	)		(7,172,394	)		22,052,179			(19,003,025	)
Net Decrease		(764,169	)		(12,819,738	)		(3,079,126	)		(38,886,460	)
Net Assets:
Beginning of period		42,401,280			55,221,018			256,937,505			295,823,965
End of Period	$	41,637,111		$	42,401,280		$	253,858,379		$	256,937,505
Accumulated Undistributed Net Investment Income (Loss)	$	845,214		$	2,045,198		$	(386,885	)	$	(23,170	)

55

Morgan Stanley Variable Investment Series

Financial Statements continued

Statements of Changes in Net Assets continued
Summary of Transactions in Shares of Beneficial Interest

	Money Market						Limited Duration						Income Plus
	For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014			For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014			For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014
	(unaudited)						(unaudited)						(unaudited)
Class X Shares
Shares
Sold		4,108,725			7,901,527			7,134			25,009			15,072			89,199
Reinvestment of dividends and distributions		1,361			3,152			13,254			20,817			225,047			257,788
Redeemed		(5,174,356	)		(13,410,900	)		(77,619	)		(219,174	)		(448,695	)		(1,043,394	)
Net Increase (Decrease) - Class X		(1,064,270	)		(5,506,221	)		(57,231	)		(173,348	)		(208,576	)		(696,407	)
Amount
Sold	$	4,108,725		$	7,901,527		$	53,575		$	188,893		$	180,929		$	1,058,089
Reinvestment of dividends and distributions		1,361			3,152			98,343			155,915			2,545,278			3,018,703
Redeemed		(5,174,356	)		(13,410,900	)		(583,827	)		(1,652,333	)		(5,399,419	)		(12,342,942	)
Net Increase (Decrease) - Class X	$	(1,064,270	)	$	(5,506,221	)	$	(431,909	)	$	(1,307,525	)	$	(2,673,212	)	$	(8,266,150	)
Class Y Shares
Shares
Sold		1,878,374			10,258,750			10,861			176,604			39,844			74,014
Reinvestment of dividends and distributions		1,515			3,633			36,494			61,211			212,118			253,383
Redeemed		(4,383,385	)		(18,230,406	)		(272,645	)		(843,432	)		(494,550	)		(1,649,311	)
Net Increase (Decrease) - Class Y		(2,503,496	)		(7,968,023	)		(225,290	)		(605,617	)		(242,588	)		(1,321,914	)
Amount
Sold	$	1,878,374		$	10,258,750		$	81,446		$	1,329,503		$	458,409		$	874,502
Reinvestment of dividends and distributions		1,515			3,633			270,785			458,467			2,394,814			2,962,049
Redeemed		(4,383,385	)		(18,230,406	)		(2,045,632	)		(6,347,002	)		(5,915,667	)		(19,448,565	)
Net Increase (Decrease) - Class Y	$	(2,503,496	)	$	(7,968,023	)	$	(1,693,401	)	$	(4,559,032	)	$	(3,062,444	)	$	(15,612,014	)

See Notes to Financial Statements
56

	European Equity						Multi Cap Growth
	For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014			For The Six Months Ended June 30, 2015			For The Year Ended December 31, 2014
	(unaudited)						(unaudited)
Class X Shares
Shares
Sold		15,664			36,123			11,521			22,492
Reinvestment of dividends and distributions		93,775			48,105			685,439			491,006
Redeemed		(120,958	)		(343,945	)		(303,249	)		(615,764	)
Net Increase (Decrease) - Class X		(11,519	)		(259,717	)		393,711			(102,266	)
Amount
Sold	$	302,474		$	706,890		$	677,126		$	1,295,711
Reinvestment of dividends and distributions		1,678,581			966,435			34,189,702			26,529,060
Redeemed		(2,304,987	)		(6,713,399	)		(17,912,803	)		(35,562,273	)
Net Increase (Decrease) - Class X	$	(323,932	)	$	(5,040,074	)	$	16,954,025		$	(7,737,502	)
Class Y Shares
Shares
Sold		2,499			6,485			5,452			8,326
Reinvestment of dividends and distributions		20,755			11,132			199,114			144,424
Redeemed		(56,846	)		(127,690	)		(85,948	)		(339,838	)
Net Increase (Decrease) - Class Y		(33,592	)		(110,073	)		118,618			(187,088	)
Amount
Sold	$	49,222		$	126,463		$	322,772		$	463,171
Reinvestment of dividends and distributions		371,093			223,195			9,724,711			7,687,678
Redeemed		(1,079,668	)		(2,481,978	)		(4,949,329	)		(19,416,372	)
Net Increase (Decrease) - Class Y	$	(659,353	)	$	(2,132,320	)	$	5,098,154		$	(11,265,523	)

57

Morgan Stanley Variable Investment Series

Notes to Financial Statements nJune 30, 2015 (unaudited)

1. Organization and Accounting Policies

Morgan Stanley Variable Investment Series (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 offered exclusively to life insurance companies in connection with particular life insurance and/or annuity contracts they offer. The Fund applies investment company accounting and reporting guidance.

The Fund, organized on February 25, 1983 as a Massachusetts business trust, consists of five portfolios ("Portfolios") which commenced operations as follows:

PORTFOLIO	COMMENCEMENT OF OPERATIONS	PORTFOLIO	COMMENCEMENT OF OPERATIONS
Money Market	March 9, 1984	European Equity	March 1, 1991
Limited Duration	May 4, 1999	Multi Cap Growth	March 9, 1984
Income Plus	March 1, 1987

Each Portfolio is classified as diversified. On June 5, 2000, the Fund commenced offering one additional class of shares (Class Y shares). Each Portfolio currently offers two share classes — Class X shares and Class Y shares. The two classes are identical except that Class Y shares incur distribution expenses. Class X shares are generally available to holders of contracts offered before May 1, 2000. Class Y shares are available to holders of contracts offered on or after June 5, 2000.

The investment objectives of each Portfolio are as follows:

PORTFOLIO	INVESTMENT OBJECTIVE
Money Market	Seeks high current income, preservation of capital and liquidity.
Limited Duration	Seeks to provide a high level of current income, consistent with the preservation of capital.
Income Plus	Seeks, as its primary objective, to provide a high level of current income by investing primarily in U.S. government securities and other fixed-income securities. As a secondary objective, the Portfolio seeks capital appreciation but only when consistent with its primary objective.
European Equity	Seeks to maximize the capital appreciation of its investments.
Multi Cap Growth	Seeks, as its primary objective, growth of capital through investments in common stocks of companies believed by the "Adviser" Morgan Stanley Investment Management Inc. to have potential for superior growth. As a secondary objective, the Portfolio seeks income but only when consistent with its primary objective.

58

Morgan Stanley Variable Investment Series

Notes to Financial Statements nJune 30, 2015 (unaudited) continued

The following is a summary of significant accounting policies:

A. Valuation of Investments — Money Market: Portfolio securities are valued at amortized cost, which approximates fair value, in accordance with Rule 2a-7 under the Act. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. All remaining Portfolios: (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) 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 New York Stock Exchange ("NYSE"); (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 Fund's Board of Trustees (the "Trustees") or quotes from a broker or dealer; (7) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (8) when market quotations are not readily available, including circumstances under which the Adviser or Morgan Stanley Investment Management Limited (the "Sub-Adviser"), each a wholly owned subsidiary of Morgan Stanley, 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 on the 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; (9) certain portfolio securities may be valued by an outside pricing

59

Morgan Stanley Variable Investment Series

Notes to Financial Statements nJune 30, 2015 (unaudited) continued

service approved by 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 portfolio securities valued by such pricing service; (10) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the NAV as of the close of each business day; and (11) 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.

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

60

Morgan Stanley Variable Investment Series

Notes to Financial Statements nJune 30, 2015 (unaudited) continued

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.

B. Accounting for Investments — Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on security transactions are determined by the identified cost method. Dividend income and other distributions are recorded on the ex-dividend date, except for certain dividends on foreign securities which are recorded as soon as the Fund is informed after the ex-dividend date. Interest income is accrued daily as earned except where collection is not expected. Discounts are accreted and premiums are amortized over the life of the respective securities and are included in interest income.

C. Repurchase Agreements — The Fund invests directly with institutions in repurchase agreements. The Fund's custodian receives the collateral, which is marked-to-market daily 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.

Repurchase agreements are subject to Master Repurchase Agreements, which are agreements between the Fund and its counterparties that typically include provisions which provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statements of Assets and Liabilities are not net settlement amounts but gross. As indicated on the Portfolio of Investments, the cash or securities to be repurchased exceeds the repurchase price to be paid under the agreement reducing the net settlement amount to zero.

D. Multiple Class Allocations — Investment income, expenses (other than distribution fees), and realized and unrealized gains and losses are allocated to each class of shares based upon the relative net asset value on the date such items are recognized. Distribution fees are charged directly to the respective class.

E. Foreign Currency Translation and Foreign Investments — The books and records of the Portfolios 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.

61

Morgan Stanley Variable Investment Series

Notes to Financial Statements nJune 30, 2015 (unaudited) continued

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Portfolios' 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 Statements of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statements of Operations.

F. Restricted Securities — Certain Portfolios may invest 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, if any, are identified in the Portfolio of Investments.

62

Morgan Stanley Variable Investment Series

Notes to Financial Statements nJune 30, 2015 (unaudited) continued

G. 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.

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

I. Securities Lending — Certain Portfolios may lend 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 receives 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.

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

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

	GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES
PORTFOLIO	GROSS ASSET AMOUNTS PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES			FINANCIAL INSTRUMENT		COLLATERAL RECEIVED			NET AMOUNT (NOT LESS THAN $0)
Multi Cap Growth	$	733,267	(a)		—	$	(733,267	)(b)(c)	$	0

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

^(b)  The Portfolio received cash collateral of $750,603, of which $737,254 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2015 there was uninvested cash of $13,349, which is not reflected in the Portfolio of Investments.

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

J. Dividends and Distributions to Shareholders — Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually (except for Money Market, which declares and pays daily). Net realized capital gains, if any, are distributed at least annually.

K. Expenses — Direct expenses are charged to the respective Portfolio and general Fund expenses are allocated on the basis of relative net assets or equally among the Portfolios.

L. Use of Estimates — The preparation of financial statements in accordance with generally accepted accounting principles in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates.

M. 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.

2. Fair Valuation Measurements

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

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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 each Portfolio's investments as of June 30, 2015.

Investment Type	Level 1 Unadjusted Quoted Prices		Level 2 Other Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Money Market
Assets:
Repurchase Agreements	$	—	$	29,590,000	$	—	$	29,590,000
Floating Rate Notes		—		9,500,000		—		9,500,000
Certificates of Deposit		—		7,999,998		—		7,999,998
Time Deposits		—		4,000,000		—		4,000,000
Commercial Paper		—		2,998,609		—		2,998,609
Extendible Floating Rate Notes		—		2,299,970		—		2,299,970
Total Assets	$	—	$	56,388,577	$	—	$	56,388,577

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Investment Type	Level 1 Unadjusted Quoted Prices			Level 2 Other Significant Observable Inputs			Level 3 Significant Unobservable Inputs		Total
Limited Duration
Assets:
Fixed Income Securities
Corporate Bonds	$	—		$	24,406,229		$	—	$	24,406,229
Asset-Backed Securities		—			3,684,595			—		3,684,595
Agency Adjustable Rate Mortgages		—			1,757,088			—		1,757,088
Mortgages — Other		—			1,384,439			—		1,384,439
Commercial Mortgage-Backed Securities		—			673,088			—		673,088
Collateralized Mortgage Obligations — Agency Collateral Series		—			594,872			—		594,872
Sovereign		—			243,617			—		243,617
Agency Fixed Rate Mortgages		—			156,281			—		156,281
Total Fixed Income Securities		—			32,900,209			—		32,900,209
Short-Term Investments
U.S. Treasury Security		—			200,966			—		200,966
Investment Company		346,020			—			—		346,020
Total Short-Term Investments		346,020			200,966			—		546,986
Futures Contracts		5,195			—			—		5,195
Credit Default Swap Agreements		—			1,804			—		1,804
Interest Rate Swap Agreement		—			5,068			—		5,068
Total Assets		351,215			33,108,047			—		33,459,262
Liabilities:
Futures Contracts		(859	)		—			—		(859	)
Credit Default Swap Agreement		—			(8,815	)		—		(8,815	)
Total Liabilities		(859	)		(8,815	)		—		(9,674	)
Total	$	350,356		$	33,099,232		$	—	$	33,449,588
Income Plus
Assets:
Fixed Income Securities
Corporate Bonds	$	—		$	120,556,773		$	—	$	120,556,773
Asset-Backed Securities		—			1,156,386			—		1,156,386
Sovereign		—			779,927			—		779,927
Variable Rate Senior Loan Interests		—			947,897			—		947,897
Total Fixed Income Securities		—			123,440,983			—		123,440,983

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Investment Type	Level 1 Unadjusted Quoted Prices			Level 2 Other Significant Observable Inputs			Level 3 Significant Unobservable Inputs		Total
Income Plus (continued)
Short-Term Investments
U.S. Treasury Security	$	—		$	1,388,765		$	—	$	1,388,765
Investment Company		1,051,830			—			—		1,051,830
Total Short-Term Investments		1,051,830			1,388,765			—		2,440,595
Foreign Currency Forward Exchange Contract		—			154			—		154
Futures Contracts		167,234			—			—		167,234
Credit Default Swap Agreements		—			96,444			—		96,444
Interest Rate Swap Agreement		—			49,328			—		49,328
Total Assets		1,219,064			124,975,674			—		126,194,738
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(2,691	)		—		(2,691	)
Futures Contracts		(23,194	)		—			—		(23,194	)
Credit Default Swap Agreement		—			(29,793	)		—		(29,793	)
Interest Rate Swap Agreement		—			(22,528	)		—		(22,528	)
Total Liabilities		(23,194	)		(55,012	)		—		(78,206	)
Total	$	1,195,870		$	124,920,662		$	—	$	126,116,532
European Equity
Assets:
Common Stocks
Aerospace & Defense	$	1,584,384		$	—		$	—	$	1,584,384
Automobiles		2,091,373			—			—		2,091,373
Banks		4,836,283			—			—		4,836,283
Chemicals		798,246			—			—		798,246
Communications Equipment		628,955			—			—		628,955
Construction Materials		926,894			—			—		926,894
Diversified Telecommunication Services		852,913			—			—		852,913
Electrical Equipment		983,236			—			—		983,236
Food Products		1,901,797			—			—		1,901,797
Health Care Providers & Services		1,085,965			—			—		1,085,965
Hotels, Restaurants & Leisure		973,199			—			—		973,199
Household Products		1,209,896			—			—		1,209,896
Industrial Conglomerates		913,591			—			—		913,591
Information Technology Services		827,763			—			—		827,763
Insurance		3,153,669			—			—		3,153,669
Machinery		753,517			—			—		753,517

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Investment Type	Level 1 Unadjusted Quoted Prices		Level 2 Other Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
European Equity (continued)
Media	$	3,439,136	$	—	$	—	$	3,439,136
Metals & Mining		1,409,326		—		—		1,409,326
Multi-Utilities		847,548		—		—		847,548
Oil, Gas & Consumable Fuels		2,214,013		—		—		2,214,013
Pharmaceuticals		5,964,694		—		—		5,964,694
Tobacco		2,422,476		—		—		2,422,476
Wireless Telecommunication Services		1,360,275		—		—		1,360,275
Total Common Stocks		41,179,149		—		—		41,179,149
Short-Term Investment
Investment Company		261,367		—		—		261,367
Total Assets	$	41,440,516	$	—	$	—	$	41,440,516
Multi Cap Growth
Assets:
Common Stocks
Air Freight & Logistics	$	2,329,481	$	—	$	—	$	2,329,481
Automobiles		11,334,522		—		—		11,334,522
Biotechnology		1,320,008		—		—		1,320,008
Capital Markets		2,907,705		—		—		2,907,705
Electrical Equipment		3,687,969		—		—		3,687,969
Food Products		11,243,971		—		—		11,243,971
Health Care Equipment & Supplies		9,549,495		—		—		9,549,495
Health Care Technology		9,364,419		—		—		9,364,419
Hotels, Restaurants & Leisure		8,581,251		—		—		8,581,251
Information Technology Services		11,203,113		—		—		11,203,113
Internet & Catalog Retail		31,780,848		—		—		31,780,848
Internet Software & Services		51,193,215		—		—		51,193,215
Life Sciences Tools & Services		14,094,483		—		—		14,094,483
Machinery		2,554,821		—		—		2,554,821
Media		4,580,180		—		—		4,580,180
Pharmaceuticals		17,957,440		—		—		17,957,440
Professional Services		2,594,562		—		—		2,594,562
Software		24,328,805		—		—		24,328,805
Specialty Retail		5,710,183		—		—		5,710,183
Tech Hardware, Storage & Peripherals		8,873,803		—		—		8,873,803
Total Common Stocks		235,190,274		—		—		235,190,274

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Investment Type	Level 1 Unadjusted Quoted Prices		Level 2 Other Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Multi Cap Growth (continued)
Preferred Stocks	$	—	$	—	$	10,633,638	$	10,633,638
Call Options Purchased		—		90,291		—		90,291
Short-Term Investments
Investment Company		8,867,305		—		—		8,867,305
Repurchase Agreements		—		215,876		—		215,876
Total Short-Term Investments		8,867,305		215,876		—		9,083,181
Total Assets	$	244,057,579	$	306,167	$	10,633,638	$	254,997,384

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of December 31, 2014, 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. As of June 30, 2015, securities transferred from Level 2 to Level 1. The values of the transfers were as follows:

EUROPEAN EQUITY		MULTI CAP GROWTH
$	38,180,627	$	4,580,180

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

	Multi Cap Growth
	Preferred Stocks
Beginning Balance	$	7,369,698
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		3,263,940
Realized gains (losses)		—
Ending Balance	$	10,633,638
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2015	$	3,263,940

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The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2015. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance.

Multi Cap Growth

	Fair Value at June 30, 2015		Valuation Technique	Unobservable Input	Range						Selected Value			Impact to Valuation from an Increase in Input
Hotels, Restaurants &Leisure
Preferred Stock	$	3,817,172	Market Transaction Method	Issuance Price of Financing	$	33.32		$	33.32		$	33.32			Increase
Internet & Catalog Retail
Preferred Stock	$	3,617,276	Market Transaction Method	Pending Precedent Transaction	$	93.38		$	93.38		$	93.38			Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		15.0	%		17.0	%		16.0	%		Decrease
				Perpetual Growth Rate		3.0	%		4.0	%		3.5	%		Increase
			Market Comparable Companies	Enterprise Value/Revenue		10.2	x		15.5	x		15.5	x		Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%		Decrease
Life Sciences Tools &Services
Preferred Stock	$	2,059,213	Market Transaction Method	Precedent Transaction	$	3.27		$	3.27		$	3.27			Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		32.0	%		34.0	%		33.0	%		Decrease
				Perpetual Growth Rate		3.0	%		4.0	%		3.5	%		Increase
			Market Comparable Companies	Enterprise Value/Revenue		2.4	x		5.0	x		5.0	x		Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%		Decrease

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	Fair Value at June 30, 2015		Valuation Technique	Unobservable Input	Range						Selected Value			Impact to Valuation from an Increase in Input
Software
Preferred Stock	$	1,139,977	Market Transaction Method	Precedent Transaction of Preferred Stock	$	11.42		$	11.42		$	11.42			Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		18.5	%		20.5	%		19.5	%		Decrease
				Perpetual Growth Rate		3.0	%		4.0	%		3.5	%		Increase
			Market Comparable Companies	Enterprise Value/Revenue		16.2	x		28.7	x		23.0	x		Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%		Decrease

3. Derivatives

Certain Portfolios may, but are 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 a 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 risk of loss. Leverage associated with derivative transactions may cause a Portfolio to liquidate portfolio

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positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission ("SEC") rules and regulations, or may cause a 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 a Portfolio used during the period and their associated risks:

Options With respect to options, certain Portfolios are subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If a 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 a Portfolio. A Portfolio may purchase and/or sell put and call options. Purchasing call options tends to increase a Portfolio's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease a Portfolio's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, a Portfolio bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, a 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 Statements of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If a Portfolio sells an option, it sells to another party the right to buy from or sell to a 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 a Portfolio. When options are purchased OTC, a 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 a 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.

Foreign Currency Forward Exchange Contracts In connection with their investments in foreign securities, certain Portfolios 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

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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 a Portfolio's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for a Portfolio than if it had not entered into such currency 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 term of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by a Portfolio as unrealized gain or loss. A 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.

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 a 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 a Portfolio of margin deposits in the event of bankruptcy of a broker with which a Portfolio has open positions in the futures contract.

Swaps A 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

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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). A 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 help reduce counterparty credit risk. In a cleared swap, a 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 a 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.

A 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. A Portfolio may be either the buyer or seller in a credit default swap. As the buyer in a credit default swap, a Portfolio would pay to the counterparty the periodic stream of payments. If no default occurs, a Portfolio would receive no benefit from the contract. As the seller in a credit default swap, a Portfolio would receive the stream of payments but would be subject to exposure on the notional amount of the swap, which it would be required to pay in the event of default. The use of credit default swaps could result in losses to a Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

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.

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When a 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 Statements of Assets and Liabilities.

Upfront payments received or paid by a Portfolio will be reflected as an asset or liability, respectively, in the Statements 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 a Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on a Portfolio's financial position and results of operations.

The following table sets forth the fair value of each Portfolio's derivative contracts by primary risk exposure as of June 30, 2015.

PORTFOLIO	PRIMARY RISK EXPOSURE	ASSET DERIVATIVES STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FAIR VALUE			LIABILITY DERIVATIVES STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FAIR VALUE
Limited Duration	Interest Rate Risk	Variation margin on open futures contracts	$	5,195	(d)	Variation margin on open futures contracts	$	(859	)(d)
		Variation margin on open swap agreement		5,068	(d)	Variation margin on open swap agreements		—
	Credit Risk	Variation margin on open swap agreement		1,778	(d)	Variation margin on open swap agreements		—
		Unrealized appreciation on open swap agreement		26		Unrealized depreciation on open swap agreement		(8,815	)
			$	12,067			$	(9,674	)
Income Plus	Interest Rate Risk	Variation margin on open futures contracts	$	167,234	(d)	Variation margin on open futures contracts	$	(23,194	)(d)
		Variation margin on open swap agreement		49,328	(d)	Variation margin on open swap agreement		(22,528	)(d)
	Credit Risk	Variation margin on open swap agreements		96,349	(d)	Variation margin on open swap agreement		—
		Unrealized appreciation on open swap agreement		95		Unrealized depreciation on open swap agreements		(29,793	)

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PORTFOLIO	PRIMARY RISK EXPOSURE	ASSET DERIVATIVES STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FAIR VALUE			LIABILITY DERIVATIVES STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FAIR VALUE
	Foreign Currency Risk	Unrealized appreciation on open foreign currency forward exchange contract	$	154		Unrealized depreciation on open foreign currency forward exchange contracts	$	(2,691	)
			$	313,160			$	(78,206	)
Multi Cap Growth	Foreign Currency Risk	Investments, at Value (Call Options Purchased)	$	90,291	(e)	Investments, at Value (Call Options Purchased)	$	—

^(d)  Includes cumulative appreciation (depreciation) as reported in the Portfolio of Investments. Only current day's net variation margin is reported within the Statements of Assets and Liabilities.

^(e)  Amounts are included in Investments in securities in the Statements of Assets and Liabilities.

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

AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS

PORTFOLIO	PRIMARY RISK EXPOSURE	FUTURES			CALL OPTIONS PURCHASED(g)			FOREIGN CURRENCY FORWARD EXCHANGE		SWAP AGREEMENTS
Limited Duration	Interest Rate Risk	$	(37,891	)	$	—		$	—	$	(184,543	)
	Credit Risk		—			—			—		(5,025	)
	Total	$	(37,891	)	$	—		$	—	$	(189,568	)
Income Plus	Interest Rate Risk	$	630,827		$	—		$	—	$	(1,072,643	)
	Credit Risk		—			—			—		(128,729	)
	Foreign Currency Risk		—			—			53,717		—
	Total	$	630,827		$	—		$	53,717	$	(1,201,372	)
Multi Cap Growth	Foreign Currency Risk	$	—		$	(136,508	)	$	—	$	—

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CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS

PORTFOLIO	PRIMARY RISK EXPOSURE	FUTURES		CALL OPTIONS PURCHASED(f)			FOREIGN CURRENCY FORWARD EXCHANGE			SWAP AGREEMENTS
Limited Duration	Interest Rate Risk	$	29,742	$	—		$	—		$	13,935
	Credit Risk		—		—			—			65,932
	Total	$	29,742	$	—		$	—		$	79,867
Income Plus	Interest Rate Risk	$	29,304	$	—		$	—		$	41,794
	Credit Risk		—		—			—			434,485
	Foreign Currency Risk		—		—			(24,514	)		—
	Total	$	29,304	$	—		$	(24,514	)	$	476,279
Multi Cap Growth	Foreign Currency Risk	$	—	$	(199,645	)	$	—		$	—

^(f)  Amounts are included in Investments in the Statements of Operations.

At June 30, 2015, each Portfolio's derivative assets and liabilities are as follows:

GROSS AMOUNTS OF ASSETS AND LIABILITIES PRESENTED
IN THE STATEMENTS OF ASSETS AND LIABILITIES

PORTFOLIO	DERIVATIVES(g)	ASSETS(h)			LIABILITIES(h)
Limited Duration	Swap Agreements	$	26		$	(8,815	)
Income Plus	Foreign Currency Forward Exchange Contracts	$	154		$	(2,691	)
	Swap Agreements		95			(29,793	)
	Total	$	249		$	(32,484	)
Multi Cap Growth	Call Options Purchased	$	90,291	(e)	$	—

^(e)  Amounts are included in Investments in securities in the Statements of Assets and Liabilities.

^(g)  Excludes exchange traded derivatives.

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

Certain Portfolios typically enter into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with their respective contract counterparties for certain OTC derivatives in order to, among other things,

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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, a 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 a 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 a 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 a 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 June 30, 2015.

  GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES

PORTFOLIO	COUNTERPARTY	GROSS ASSET DERIVATIVES PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES		FINANCIAL INSTRUMENT			COLLATERAL RECEIVED(i)			NET AMOUNT (NOT LESS THAN $0)
Limited Duration	Barclays Bank PLC	$	26	$	(26	)	$	—		$	0
Income Plus	Barclays Bank PLC	$	95	$	(95	)	$	—		$	0
	HSBC Bank PLC		154		(154	)		—			0
	Total	$	249	$	(249	)	$	—		$	0
Multi Cap Growth	Royal Bank of Scotland	$	90,291	$	—		$	(60,000	)	$	30,291

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

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  GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES

PORTFOLIO	COUNTERPARTY	GROSS LIABILITIES DERIVATIVES PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES		FINANCIAL INSTRUMENT			COLLATERAL PLEDGED		NET AMOUNT (NOT LESS THAN $0)
Limited Duration	Barclays Bank PLC	$	8,815	$	(26	)	$	—	$	8,789
Income Plus	Barclays Bank PLC	$	29,793	$	(95	)	$	—	$	29,698
	Citibank NA		2,466		—			—		2,466
	HSBC Bank PLC		225		(154	)		—		71
	Total	$	32,484	$	(249	)	$	—	$	32,235

For the six months ended June 30, 2015, the average monthly amount outstanding for each derivative type is as follows:

Limited Duration:
Futures Contracts:
Average monthly original value	$	17,795,562
Swap Agreements:
Average monthly notional amount	$	9,768,368
Income Plus:
Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	1,047,260
Futures Contracts:
Average monthly original value	$	133,564,785
Swap Agreements:
Average monthly notional amount	$	66,276,476
Multi Cap Growth:
Call Options Purchased:
Average monthly notional amount		88,054,390

4. Advisory/Administration and Sub-Advisory Agreements

Pursuant to an Investment Advisory Agreement with the Adviser and Sub-Adviser, the Fund pays an advisory fee, accrued daily and payable monthly, by applying the annual rates listed below to each Portfolio's net assets determined at the close of each business day.

Money Market — 0.45% to the portion of the daily net assets not exceeding $250 million; 0.375% to the portion of the daily net assets exceeding $250 million but not exceeding $750 million; 0.325% to the portion

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of the daily net assets exceeding $750 million but not exceeding $1.25 billion; 0.30% to the portion of the daily net assets exceeding $1.25 billion but not exceeding $1.5 billion; and 0.275% to the portion of the daily net assets in excess of $1.5 billion. For the six months ended June 30, 2015, the advisory fee rate (net of waivers) was equivalent to an annual effective rate of 0.00% of the Portfolio's average daily net assets.

Limited Duration — 0.30%.

Income Plus — 0.42% to the portion of the daily net assets not exceeding $500 million; 0.35% to the portion of the daily net assets exceeding $500 million but not exceeding $1.25 billion; and 0.22% to the portion of the daily net assets in excess of $1.25 billion. For the six months ended June 30, 2015, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.42% of the Portfolio's average daily net assets.

European Equity — 0.87% to the portion of the daily net assets not exceeding $500 million; 0.82% to the portion of the daily net assets exceeding $500 million but not exceeding $2 billion; 0.77% to the portion of the daily net assets exceeding $2 billion but not exceeding $3 billion; and 0.745% to the portion of the daily net assets in excess of $3 billion. For the six months ended June 30, 2015, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.57% of the Portfolio's average daily net assets.

Multi Cap Growth — 0.42% to the portion of the daily net assets not exceeding $1 billion; 0.395% to the portion of the daily net assets exceeding $1 billion but not exceeding $2 billion; and 0.37% to the portion of the daily net assets in excess of $2 billion. For the six months ended June 30, 2015, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.42% of the Portfolio's average daily net assets.

Under the Sub-Advisory Agreement between the Adviser and Sub-Adviser, the Sub-Adviser provides European Equity 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.

The Adviser also serves as the 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% (Money Market Portfolio's rate is 0.05%) of each Portfolio's average daily net assets.

The Adviser/Administrator has agreed to reduce its advisory fee, its administration fee and/or reimburse European Equity Portfolio so that total annual Portfolio operating expenses, excluding certain investment related expenses, 12b-1 fees, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00%. The fee waivers and/or expense reimbursements will continue for at least one year from the

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date of the Portfolio's prospectus(es) 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 six months ended June 30, 2015, $64,140 of advisory fees were waived pursuant to this arrangement.

The Adviser/Administrator has agreed to reduce its advisory fee, its administration fee and/or reimburse Multi Cap Growth Portfolio so that total Portfolio operating expenses, excluding certain investment related expenses, 12b-1 fees, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.57%. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus(es) 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 six months ended June 30, 2015, $404 of advisory fees were waived pursuant to this agreement.

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 each Portfolio.

5. Plan of Distribution

Shares of the Fund are distributed by Morgan Stanley Distribution, Inc. (the "Distributor"), an affiliate of the Adviser/Administrator and Sub-Adviser. The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act. Under the Plan, Class Y shares of each Portfolio bear a distribution fee which is accrued daily and paid monthly at the annual rate of 0.25% of the average daily net assets of the class.

The Distributor and Adviser/Administrator have agreed to waive/reimburse all or a portion of the Money Market Portfolio's distribution fee, advisory fee and administration fee, respectively, to the extent that total expenses exceed total income of the Money Market Portfolio on a daily basis. For the six months ended June 30, 2015, the Distributor waived $37,879, the Adviser waived $129,455 and the Administrator waived $14,384. For the same period, the Adviser reimbursed additional expenses to the extent the Portfolio's total expenses exceeded total income on a daily basis in the amount of $14,436. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus(es) or until such time that the Trustees act to discontinue all or a portion of such waivers and/or expense reimbursements when they deem such action is appropriate.

6. 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.

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7. Security Transactions and Transactions with Affiliates

For the six months ended June 30, 2015, purchases and sales of investment securities, excluding short-term investments, were as follows:

	U.S. GOVERNMENT SECURITIES				OTHER
PORTFOLIO	PURCHASES		SALES		PURCHASES		SALES
Limited Duration	$	317,023	$	930,657	$	7,890,522	$	10,222,790
Income Plus		—		—		36,944,355		42,557,882
European Equity		—		—		3,973,696		6,185,560
Multi Cap Growth		—		—		23,593,268		44,719,821

Each Portfolio (except Money Market) 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 each Portfolio are reduced by an amount equal to its pro-rata share of advisory and administrative fees paid by each Portfolio due to its investment in the Liquidity Funds.

A summary of each Portfolio's transactions in shares of the Liquidity Funds during the six months ended June 30, 2015 is as follows:

PORTFOLIO	VALUE DECEMBER 31, 2014		PURCHASES AT COST		SALES		DIVIDEND INCOME		VALUE JUNE 30, 2015
Limited Duration	$	101,467	$	6,338,775	$	6,094,222	$	506	$	346,020
Income Plus		2,651,873		17,137,243		18,737,286		2,023		1,051,830
European Equity		369,100		3,933,385		4,041,118		401		261,367
Multi Cap Growth		11,810,239		35,412,620		38,355,554		7,348		8,867,305

For the six months ended June 30, 2015, advisory fees paid were reduced by the following relating to each Portfolio's investment in the Liquidity Funds:

PORTFOLIO	ADVISORY FEE REDUCTION
Limited Duration	$	315
Income Plus		1,269
European Equity		256
Multi Cap Growth		4,637

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The following Portfolios had transactions with the following affiliates of the Fund:

PORTFOLIO	ISSUER	VALUE DECEMBER 31, 2014		PURCHASES AT COST		SALES			NET REALIZED GAIN		INTEREST INCOME		VALUE JUNE 30, 2015
Limited Duration	Metropolitan Life Global Funding I	$	273,487	$	174,232	$	(276,881	)	$	3,317	$	1,883	$	172,662
Income Plus	MetLife Capital Trust IV		769,500		—		(780,000	)		147,000		17,587		—
	MetLife, Inc.		—		987,250		—			—		4,000		958,010

For the six months ended June 30, 2015, the Fund did not incur brokerage commissions with Morgan Stanley & Co., LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Trustees of the Fund who will have served as independent Trustees for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Trustees voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003.

Aggregate pension costs for the six months ended June 30, 2015, included in "Trustees' fees and expenses" in the Statements of Operations and the accrued pension liability included in "Accrued expenses and other payables" in the Statements of Assets and Liabilities are as follows:

  AGGREGATE PENSION COSTS

LIMITED DURATION		INCOME PLUS		EUROPEAN EQUITY		MULTI CAP GROWTH
$	113	$	455	$	72	$	681

  AGGREGATE PENSION LIABILITY

MONEY MARKET		LIMITED DURATION		INCOME PLUS		EUROPEAN EQUITY		MULTI CAP GROWTH
$	3,414	$	2,098	$	7,908	$	2,717	$	15,550

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment

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options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

8. Federal Income Tax Status

It is the Portfolios' 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.

A 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.

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 Portfolios recognize interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statements of Operations. The Portfolios file tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended December 31, 2014, 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 2014 and 2013 was as follows:

	2014 DISTRIBUTIONS PAID FROM:				2013 DISTRIBUTIONS PAID FROM:
PORTFOLIO	ORDINARY INCOME		LONG-TERM CAPITAL GAIN		ORDINARY INCOME		LONG-TERM CAPITAL GAIN
Money Market	$	6,785	$	—	$	8,318	$	—
Limited Duration		614,382		—		1,067,043		—
Income Plus		5,980,752		—		8,060,938		—
European Equity		1,189,630		—		1,517,812		—
Multi Cap Growth		4,912,286		29,304,452		951,967		3,478,094

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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 primarily due 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 differing treatments of gains (losses) related to foreign currency transactions, swap transactions, paydown adjustments, expiring capital losses, net operating losses, book amortization of premium on debt securities and nondeductible expenses, resulted in the following reclassifications among the Portfolio's components of net assets at December 31, 2014:

PORTFOLIO	ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME			(DISTRIBUTIONS IN EXCESS OF) NET REALIZED GAIN (LOSS)			ACCUMULATED PAID-IN-CAPITAL
Money Market	$	(1,023	)	$	100		$	923
Limited Duration		10,739			2,221,789			(2,232,528	)
Income Plus		(271,522	)		271,522			—
European Equity		(16,147	)		16,147			—
Multi Cap Growth		431,733			(431,733	)		—

At December 31, 2014, the components of distributable earnings on a tax basis were as follows:

PORTFOLIO	UNDISTRIBUTED ORDINARY INCOME		UNDISTRIBUTED LONG-TERM CAPITAL GAIN
Money Market	$	3,166	$	—
Limited Duration		369,126		—
Income Plus		4,860,732		79,278
European Equity		2,049,673		—
Multi Cap Growth		1,218,034		42,696,360

At June 30, 2015, cost, unrealized appreciation, unrealized depreciation, and net unrealized appreciation (depreciation) for U.S. Federal income tax purposes of the investments of each of the Portfolios were:

PORTFOLIO	COST		APPRECIATION		DEPRECIATION			NET APPRECIATION (DEPRECIATION)
Money Market	$	56,388,577	$	—	$	—		$	—
Limited Duration		33,229,685		392,324		(174,814	)		217,510
Income Plus		123,952,760		4,870,562		(2,941,744	)		1,928,818
European Equity		31,314,933		11,969,378		(1,843,795	)		10,125,583
Multi Cap Growth		145,648,908		115,394,349		(6,045,873	)		109,348,476

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At December 31, 2014, the following Portfolios had available for Federal income tax purposes unused short term and/or long term capital losses that will not expire:

PORTFOLIO	SHORT TERM LOSSES (NO EXPIRATION)		LONG TERM LOSSES (NO EXPIRATION)
Money Market	$	1,486	$	—
Limited Duration		—		286,694

In addition, At December 31, 2014, the following Portfolios had available capital loss carryforwards to offset future net capital gains, to the extent provided by regulations, through the indicated expiration dates:

	AMOUNTS IN THOUSANDS AVAILABLE THROUGH DECEMBER 31,
PORTFOLIO	2015		2016		2017		2018		TOTAL
Limited Duration	$	1,063	$	17,119	$	8,980	$	—	$	27,162
European Equity		—		—		4,122		3,315		7,437

During the year ended December 31, 2014, the following Portfolio expired capital loss carryforwards for U.S. Federal income tax purposes of:

PORTFOLIO	EXPIRED CAPITAL LOSS CARRYFORWARDS
Limited Duration	$	2,232,528

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 a 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 December 31, 2014, the following Portfolios utilized capital loss carryforwards for U.S. Federal income tax purposes of:

PORTFOLIO	UTILIZED CAPITAL LOSS CARRYFORWARDS
Money Market	$	160
Limited Duration		52,673
Income Plus		7,195,869
European Equity		4,159,451

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9. Purposes of and Risks Relating to Certain Financial Instruments

Certain Portfolios may lend securities to qualified financial institutions, such as broker-dealers, to earn additional income. 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.

Certain Portfolios may invest in mortgage securities, including securities issued by the Federal National Mortgage Association ("FNMA") and Federal Home Loan Mortgage Corporation ("FHLMC"). These are fixed income securities that derive their value from or represent interests in a pool of mortgages or mortgage securities. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of a mortgage-backed security and could result in losses to the Portfolios. The risk of such defaults is generally higher in the case of mortgage pools that include sub-prime mortgages. Sub-prime mortgages refer to loans made to borrowers with weakened credit histories or with a lower capacity to make timely payments on their mortgages. The securities issued by FNMA and FHLMC that are held by the Portfolios are not backed by sub-prime mortgages.

Additionally, securities issued by FNMA and FHLMC are not backed by or entitled to the full faith and credit of the United States; rather, they are supported by the right of the issuer to borrow from the U.S. Department of the Treasury.

The Federal Housing Finance Agency ("FHFA") serves as conservator of FNMA and FHLMC and the U.S. Department of the Treasury has agreed to provide capital as needed to ensure FNMA and FHLMC continue to provide liquidity to the housing and mortgage markets.

The Money Market Portfolio may enter into repurchase agreements under which the Portfolio sends cash and takes possession of securities with an agreement that the counterparty will repurchase such securities. 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 certain costs and delays.

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.

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At June 30, 2015, European Equity Portfolio's investments in securities of issuers in the United Kingdom, France and Switzerland represented 32.0%, 21.7% and 17.6%, respectively of the Portfolio's net assets. These investments, as well as other non-U.S. investments, which involve risks and considerations not present with respect to U.S. securities, may be affected by economic or political developments in these countries.

10. Money Market Fund Regulation

The SEC recently adopted changes to the rules that govern money market funds. These changes have a phase-in period ranging from mid-2015 (primarily for certain new disclosure-related requirements) to the latter half of 2016 (for the most significant changes, such as the possible imposition of redemption fees and/or the temporary suspension of redemption privileges if a fund's portfolio liquidity falls below certain required minimum levels because of market conditions or other factors). At this time, management is evaluating the implications of these amendments and their impact to the Money Market Portfolio's operations, financial statements and accompanying notes.

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Morgan Stanley Variable Investment Series

Financial Highlights

FOR THE YEAR ENDED DECEMBER 31			NET ASSET VALUE BEGINNING OF PERIOD		NET INVESTMENT INCOME(a)			NET REALIZED AND UNREALIZED GAIN (LOSS)			TOTAL FROM INVESTMENT OPERATIONS			DIVIDENDS TO SHAREHOLDERS			DISTRIBUTIONS TO SHAREHOLDERS		TOTAL DIVIDENDS AND DISTRIBUTIONS
MONEY MARKET CLASS X SHARES
	2010	^	$	1.00	$	0.000	(c)		—		$	0.000	(c)	$	(0.000	)(c)		—	$	(0.000	)(c)
	2011			1.00		0.000	(c)	$	(0.000	)(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2012			1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2013			1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2014			1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2015	^^		1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
CLASS Y SHARES
	2010	^		1.00		0.000	(c)		—			0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2011			1.00		0.000	(c)		(0.000	)(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2012			1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2013			1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2014			1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
	2015	^^		1.00		0.000	(c)		0.000	(c)		0.000	(c)		(0.000	)(c)		—		(0.000	)(c)
LIMITED DURATION CLASS X SHARES
	2010	^		7.84		0.18			0.00			0.18			(0.28	)		—		(0.28	)
	2011			7.74		0.17			0.04			0.21			(0.26	)		—		(0.26	)
	2012			7.69		0.12			0.13			0.25			(0.23	)		—		(0.23	)
	2013			7.71		0.10			(0.07	)		0.03			(0.20	)		—		(0.20	)
	2014			7.54		0.08			0.01			0.09			(0.14	)		—		(0.14	)
	2015	^^		7.49		0.04			(0.01	)		0.03			(0.10	)		—		(0.10	)
CLASS Y SHARES
	2010	^		7.81		0.16			0.01			0.17			(0.26	)		—		(0.26	)
	2011			7.72		0.15			0.04			0.19			(0.24	)		—		(0.24	)
	2012			7.67		0.10			0.13			0.23			(0.21	)		—		(0.21	)
	2013			7.69		0.08			(0.07	)		0.01			(0.18	)		—		(0.18	)
	2014			7.52		0.06			—			0.06			(0.11	)		—		(0.11	)
	2015	^^		7.47		0.03			—			0.03			(0.08	)		—		(0.08	)

See Notes to Financial Statements
90

										RATIO TO AVERAGE NET ASSETS
FOR THE YEAR ENDED DECEMBER 31			NET ASSET VALUE END OF PERIOD		TOTAL RETURN(b)			NET ASSETS END OF PERIOD (000'S)		EXPENSES			NET INVESTMENT INCOME			REBATE FROM MORGAN STANLEY AFFILIATE			PORTFOLIO TURNOVER RATE
MONEY MARKET CLASS X SHARES
	2010	^	$	1.00		0.01	%	$	59,932		0.29	%(d)		0.00	%(d)(e)		—			N/A
	2011			1.00		0.01			51,431		0.22	(d)		0.01	(d)		—			N/A
	2012			1.00		0.01			42,267		0.27	(d)		0.01	(d)		—			N/A
	2013			1.00		0.01			33,951		0.19	(d)		0.01	(d)		—			N/A
	2014			1.00		0.01			28,445		0.19	(d)		0.01	(d)		—			N/A
	2015	^^		1.00		0.00	(e)(i)		27,380		0.21	(d)(j)		0.01	(d)(j)		—			N/A
CLASS Y SHARES
	2010	^		1.00		0.01			67,139		0.29	(d)		0.00	(d)(e)		—			N/A
	2011			1.00		0.01			55,849		0.22	(d)		0.01	(d)		—			N/A
	2012			1.00		0.01			48,565		0.27	(d)		0.01	(d)		—			N/A
	2013			1.00		0.01			39,351		0.19	(d)		0.01	(d)		—			N/A
	2014			1.00		0.01			31,383		0.19	(d)		0.01	(d)		—			N/A
	2015	^^		1.00		0.00	(e)(i)		28,880		0.21	(d)(j)		0.01	(d)(j)		—			N/A
LIMITED DURATION CLASS X SHARES
	2010	^		7.74		2.35			14,921		0.55	(f)		2.25	(f)		0.00	%(e)		88	%
	2011			7.69		2.75			12,693		0.60	(f)		2.15	(f)		0.00	(e)		45
	2012			7.71		3.34			10,628		0.63	(f)		1.52	(f)		0.00	(e)		58
	2013			7.54		0.39			9,346		0.75	(f)		1.27	(f)		0.00	(e)		53
	2014			7.49		1.13			7,986		0.80	(f)		1.09	(f)		0.00	(e)		51
	2015	^^		7.42		0.38	(i)		7,489		0.88	(f)(j)		1.08	(f)(j)		0.00	(e)(j)		24	(i)
CLASS Y SHARES
	2010	^		7.72		2.22			53,760		0.80	(f)		2.00	(f)		0.00	(e)		88
	2011			7.67		2.45			44,085		0.85	(f)		1.90	(f)		0.00	(e)		45
	2012			7.69		3.05			38,736		0.88	(f)		1.27	(f)		0.00	(e)		58
	2013			7.52		0.09			32,974		1.00	(f)		1.02	(f)		0.00	(e)		53
	2014			7.47		0.84			28,244		1.05	(f)		0.84	(f)		0.00	(e)		51
	2015	^^		7.42		0.36	(i)		26,366		1.13	(f)(j)		0.83	(f)(j)		0.00	(e)(j)		24	(i)

91

Morgan Stanley Variable Investment Series

Financial Highlights continued

FOR THE YEAR ENDED DECEMBER 31			NET ASSET VALUE BEGINNING OF PERIOD		NET INVESTMENT INCOME (LOSS)(a)			NET REALIZED AND UNREALIZED GAIN (LOSS)			TOTAL FROM INVESTMENT OPERATIONS			DIVIDENDS TO SHAREHOLDERS			DISTRIBUTIONS TO SHAREHOLDERS			TOTAL DIVIDENDS AND DISTRIBUTIONS
INCOME PLUS CLASS X SHARES
	2010	^	$	10.99	$	0.58		$	0.39		$	0.97		$	(0.70	)		—		$	(0.70	)
	2011			11.26		0.57			(0.02	)		0.55			(0.68	)		—			(0.68	)
	2012			11.13		0.48			1.04			1.52			(0.68	)		—			(0.68	)
	2013			11.97		0.45			(0.35	)		0.10			(0.59	)		—			(0.59	)
	2014			11.48		0.42			0.47			0.89			(0.51	)		—			(0.51	)
	2015	^^		11.86		0.21			(0.28	)		(0.07	)		(0.47	)	$	(0.01	)		(0.48	)
CLASS Y SHARES
	2010	^		10.95		0.55			0.39			0.94			(0.67	)		—			(0.67	)
	2011			11.22		0.54			(0.02	)		0.52			(0.65	)		—			(0.65	)
	2012			11.09		0.45			1.04			1.49			(0.65	)		—			(0.65	)
	2013			11.93		0.41			(0.33	)		0.08			(0.56	)		—			(0.56	)
	2014			11.45		0.39			0.45			0.84			(0.47	)		—			(0.47	)
	2015	^^		11.82		0.19			(0.27	)		(0.08	)		(0.44	)		(0.01	)		(0.45	)
EUROPEAN EQUITY CLASS X SHARES
	2010	^		15.42		0.26			0.76			1.02			(0.39	)		—			(0.39	)
	2011			16.05		0.41			(1.90	)		(1.49	)		(0.37	)		—			(0.37	)
	2012			14.19		0.53			2.03			2.56			(0.43	)		—			(0.43	)
	2013			16.32		0.42			3.95			4.37			(0.53	)		—			(0.53	)
	2014			20.16		0.82			(2.61	)		(1.79	)		(0.48	)		—			(0.48	)
	2015	^^		17.89		0.38			0.57			0.95			(0.94	)		—			(0.94	)
CLASS Y SHARES
	2010	^		15.35		0.22			0.76			0.98			(0.35	)		—			(0.35	)
	2011			15.98		0.37			(1.90	)		(1.53	)		(0.33	)		—			(0.33	)
	2012			14.12		0.49			2.03			2.52			(0.38	)		—			(0.38	)
	2013			16.26		0.33			3.98			4.31			(0.48	)		—			(0.48	)
	2014			20.09		0.77			(2.60	)		(1.83	)		(0.43	)		—			(0.43	)
	2015	^^		17.83		0.35			0.58			0.93			(0.88	)		—			(0.88	)
MULTI CAP GROWTH CLASS X SHARES
	2010	^		31.42		0.06			8.65			8.71			(0.06	)		—			(0.06	)
	2011			40.07		0.01			(2.70	)		(2.69	)		(0.07	)		—			(0.07	)
	2012			37.31		0.20			4.40			4.60			—			(0.90	)		(0.90	)
	2013			41.01		(0.03	)		20.55			20.52			(0.20	)		(0.66	)		(0.86	)
	2014			60.67		(0.06	)		3.23			3.17			—			(7.79	)		(7.79	)
	2015	^^		56.05		(0.07	)		4.27			4.20			—			(10.37	)		(10.37	)

See Notes to Financial Statements
92

										RATIO TO AVERAGE NET ASSETS
FOR THE YEAR ENDED DECEMBER 31			NET ASSET VALUE END OF PERIOD		TOTAL RETURN(b)			NET ASSETS END OF PERIOD (000'S)		EXPENSES			NET INVESTMENT INCOME (LOSS)			REBATE FROM MORGAN STANLEY AFFILIATE			PORTFOLIO TURNOVER RATE
INCOME PLUS CLASS X SHARES
	2010	^	$	11.26		9.28	%	$	106,363		0.59	%(f)		5.23	%(f)		0.00	%(e)		53	%
	2011			11.13		5.01			90,876		0.59	(f)		5.01	(f)		0.00	(e)		43
	2012			11.97		14.09			86,765		0.61	(f)		4.14	(f)		0.00	(e)		68
	2013			11.48		1.03			73,998		0.62	(f)		3.82	(f)		0.00	(e)		55
	2014			11.86		7.79			68,129		0.64	(f)		3.52	(f)		0.00	(e)		43
	2015	^^		11.31		(0.60	)(i)		62,615		0.66	(f)(j)		3.53	(f)(j)		0.00	(e)(j)		29	(i)
CLASS Y SHARES
	2010	^		11.22		9.01			124,322		0.84	(f)		4.98	(f)		0.00	(e)		53
	2011			11.09		4.71			102,948		0.84	(f)		4.76	(f)		0.00	(e)		43
	2012			11.93		13.82			97,579		0.86	(f)		3.89	(f)		0.00	(e)		68
	2013			11.45		0.81			82,429		0.87	(f)		3.57	(f)		0.00	(e)		55
	2014			11.82		7.40			69,491		0.89	(f)		3.27	(f)		0.00	(e)		43
	2015	^^		11.29		(0.73	)(i)		63,644		0.91	(f)(j)		3.28	(f)(j)		0.00	(e)(j)		29	(i)
EUROPEAN EQUITY CLASS X SHARES
	2010	^		16.05		7.23	(h)		54,824		1.00	(f)(g)		1.81	(f)(g)		0.00	(e)		22
	2011			14.19		(9.64	)		41,181		1.00	(f)(g)		2.56	(f)(g)		0.00	(e)		11
	2012			16.32		18.51			40,141		1.00	(f)(g)		3.50	(f)(g)		0.00	(e)		11
	2013			20.16		27.50			43,414		1.00	(f)(g)		2.32	(f)(g)		0.00	(e)		10
	2014			17.89		(9.14	)		33,884		1.00	(f)(g)		4.17	(f)(g)		0.00	(e)		21
	2015	^^		17.90		5.30	(i)		33,698		1.00	(f)(g)(j)		3.98	(f)(g)(j)		0.00	(e)(j)		9	(i)
CLASS Y SHARES
	2010	^		15.98		6.96	(h)		17,821		1.25	(f)(g)		1.56	(f)(g)		0.00	(e)		22
	2011			14.12		(9.85	)		11,668		1.25	(f)(g)		2.31	(f)(g)		0.00	(e)		11
	2012			16.26		18.16			11,773		1.25	(f)(g)		3.25	(f)(g)		0.00	(e)		11
	2013			20.09		27.20			11,807		1.25	(f)(g)		2.07	(f)(g)		0.00	(e)		10
	2014			17.83		(9.37	)		8,518		1.25	(f)(g)		3.92	(f)(g)		0.00	(e)		21
	2015	^^		17.88		5.20	(i)		7,939		1.25	(f)(g)(j)		3.71	(f)(g)(j)		0.00	(e)(j)		9	(i)
MULTI CAP GROWTH CLASS X SHARES
	2010	^		40.07		27.76			220,553		0.58	(f)		0.19	(f)		0.00	(e)		29
	2011			37.31		(6.74	)		173,284		0.56	(f)		0.03	(f)		0.00	(e)		24
	2012			41.01		12.37			164,917		0.58	(f)		0.48	(f)		0.00	(e)		44
	2013			60.67		50.76			223,689		0.57	(f)		(0.06	)(f)		0.00	(e)		34
	2014			56.05		5.71			200,910		0.54	(f)		(0.11	)(f)		0.00	(e)		29
	2015	^^		49.88		7.50	(i)		198,445		0.57	(f)(j)		(0.23	)(f)(j)		0.00	(e)(j)		10	(i)

93

Morgan Stanley Variable Investment Series

Financial Highlights continued

FOR THE YEAR ENDED DECEMBER 31			NET ASSET VALUE BEGINNING OF PERIOD		NET INVESTMENT INCOME (LOSS)(a)			NET REALIZED AND UNREALIZED GAIN (LOSS)			TOTAL FROM INVESTMENT OPERATIONS			DIVIDENDS TO SHAREHOLDERS			DISTRIBUTIONS TO SHAREHOLDERS			TOTAL DIVIDENDS AND DISTRIBUTIONS
MULTI CAP GROWTH CLASS Y SHARES
	2010	^	$	31.21	$	(0.02	)	$	8.58		$	8.56			—			—			—
	2011			39.77		(0.09	)		(2.68	)		(2.77	)		—			—			—
	2012			37.00		0.09			4.37			4.46			—		$	(0.90	)	$	(0.90	)
	2013			40.56		(0.15	)		20.32			20.17		$	(0.11	)		(0.66	)		(0.77	)
	2014			59.96		(0.20	)		3.18			2.98			—			(7.79	)		(7.79	)
	2015	^^		55.15		(0.14	)		4.20			4.06			—			(10.37	)		(10.37	)

  ^  Beginning with the year ended December 31, 2011, the Fund was audited by Ernst & Young LLP. The previous year was audited by another independent registered public accounting firm.

  ^^  For the six months ended June 30, 2015 (unaudited).

(a)  The per share amounts were computed using an average number of shares outstanding during the period.

(b)  Calculated based on the net asset value as of the last business day of the period. Performance shown does not reflect fees and expenses imposed by your insurance company. If performance information included the effect of these additional charges, the total returns would be lower.

(c)  Amount is less than $0.001.

(d)  If the Portfolio had borne all of its expenses that were reimbursed or waived by the Distributor and Adviser/Administrator, the annualized expense and net investment loss ratios, would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT LOSS RATIO
June 30, 2015
Class X		0.76	%		(0.54	)%
Class Y		1.01			(0.79	)
December 31, 2014
Class X		0.70			(0.50	)
Class Y		0.95			(0.75	)
December 31, 2013
Class X		0.66			(0.46	)
Class Y		0.91			(0.71	)
December 31, 2012
Class X		0.63			(0.35	)
Class Y		0.88			(0.60	)
December 31, 2011
Class X		0.60			(0.37	)
Class Y		0.85			(0.62	)
December 31, 2010
Class X		0.62			(0.33	)
Class Y		0.87			(0.58	)

See Notes to Financial Statements
94

										RATIO TO AVERAGE NET ASSETS
FOR THE YEAR ENDED DECEMBER 31			NET ASSET VALUE END OF PERIOD		TOTAL RETURN(b)			NET ASSETS END OF PERIOD (000'S)		EXPENSES			NET INVESTMENT INCOME (LOSS)			REBATE FROM MORGAN STANLEY AFFILIATE			PORTFOLIO TURNOVER RATE
MULTI CAP GROWTH CLASS Y SHARES
	2010	^	$	39.77		27.43	%	$	67,303		0.83	%(f)		(0.06	)%(f)		0.00	%(e)		29	%
	2011			37.00		(6.97	)		49,678		0.81	(f)		(0.22	)(f)		0.00	(e)		24
	2012			40.56		12.09			45,556		0.83	(f)		0.23	(f)		0.00	(e)		44
	2013			59.96		50.37			72,135		0.82	(f)		(0.31	)(f)		0.00	(e)		34
	2014			55.15		5.44			56,027		0.79	(f)		(0.36	)(f)		0.00	(e)		29
	2015	^^		48.84		7.37	(i)		55,413		0.82	(f)(j)		(0.48	)(f)(j)		0.00	(e)(j)		10	(i)

(e)  Amount is less than 0.005%.

(f)  The ratios reflect the rebate of certain Portfolio expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as "Rebate from Morgan Stanley affiliate."

(g)  If the Portfolio had borne all of its expenses that were reimbursed or waived by the Adviser/Administrator, the annualized expense and net investment income ratios, would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME RATIO
June 30, 2015
Class X		1.30	%		3.68	%
Class Y		1.55			3.41
December 31, 2014
Class X		1.26			3.91
Class Y		1.51			3.66
December 31, 2013
Class X		1.22			2.10
Class Y		1.47			1.85
December 31, 2012
Class X		1.22			3.28
Class Y		1.47			3.03
December 31, 2011
Class X		1.17			2.39
Class Y		1.42			2.14
December 31, 2010
Class X		1.16			1.65
Class Y		1.41			1.40

(h)  During the year ended December 31, 2010, the Portfolio received a regulatory settlement from an unaffiliated third party which had an impact of approximately 0.14% and 0.14% for Class X and Y, respectively, on the total return. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class X and Y shares would have been approximately 7.09% and 6.82%, respectively.

(i)  Not annualized.

(j)  Annualized.

95

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Trustees
Frank L. Bowman	Dr. Manuel H. Johnson
Michael Bozic	Joseph J. Kearns
Kathleen A. Dennis	Michael F. Klein
Nancy C. Everett	Michael E. Nugent
Jakki L. Haussler	W. Allen Reed
James F. Higgins	Fergus Reid
Officers
Michael E. Nugent Chairperson of the Board
John H. Gernon President and Principal Executive Officer
Stefanie V. Chang Yu Chief Compliance Officer
Joseph C. Benedetti Vice President
Francis J. Smith Treasurer and Principal Financial Officer
Mary E. Mullin Secretary
Transfer Agent	Custodian
Boston Financial Data Services, Inc. 2000 Crown Colony Drive Quincy, Massachusetts 02169	State Street Bank and Trust Company One Lincoln Street Boston, Massachusetts 02111
Independent Registered Public Accounting Firm	Legal Counsel
Ernst & Young LLP 200 Clarendon Street Boston, Massachusetts 02116	Dechert LLP 1095 Avenue of the Americas New York, New York 10036
Counsel to the Independent Trustees	Adviser and Administrator
Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas New York, New York 10036	Morgan Stanley Investment Management Inc. 522 Fifth Avenue New York, New York 10036
Sub-Adviser (solely with respect to European Equity Portfolio)
Morgan Stanley Investment Management Limited 25 Cabot Square, Canary Wharf London, E14 4QA, England

This report is submitted for the general information of shareholders of the Fund. For more detailed information about the Fund, its fees and expenses and other pertinent information, please read its Prospectus. The Fund's Statement of Additional Information contains additional information about the Fund, including its trustees. It is available without charge, by calling (800) 548-7786.

This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective Prospectus. Read the Prospectus carefully before investing.

Morgan Stanley Distribution, Inc., member FINRA.

#40113A

VARINSAN
1260626 EXP 8.31.16

Item 2.  Code of Ethics.

Not applicable for semiannual reports.

Item 3.  Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semiannual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

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) Code of Ethics — Not applicable for semiannual reports.

(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 Variable Investment Series

/s/ John H. Gernon

John H. Gernon

Principal Executive Officer

August 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

August 19, 2015

/s/ Francis Smith

Francis Smith

Principal Financial Officer

August 19, 2015