UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03980

Morgan Stanley Institutional Fund Trust

(Exact name of registrant as specified in charter)

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

John H. Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

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

Date of fiscal year end: September 30,

Date of reporting period: March 31, 2021

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	19
Statement of Operations	21
Statements of Changes in Net Assets	22
Financial Highlights	24
Notes to Financial Statements	29
Liquidity Risk Management Program	41
U.S. Customer Privacy Notice	42
Trustee and Officer Information	45

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Core Plus Fixed Income Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Core Plus Fixed Income Portfolio Class I	$	1,000.00	$	991.40	$	1,022.94	$	1.99	$	2.02		0.40	%
Core Plus Fixed Income Portfolio Class A		1,000.00		989.00		1,021.34		3.57		3.63		0.72
Core Plus Fixed Income Portfolio Class L		1,000.00		988.60		1,019.95		4.96		5.04		1.00
Core Plus Fixed Income Portfolio Class C		1,000.00		986.40		1,017.85		7.03		7.14		1.42
Core Plus Fixed Income Portfolio Class IS		1,000.00		991.70		1,023.19		1.74		1.77		0.35

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.7%)
Agency Adjustable Rate Mortgage (0.0%)
Federal Home Loan Mortgage Corporation, Conventional Pool: 12 Month USD LIBOR + 1.62%, 3.18%, 7/1/45	$	29	$	30
Agency Fixed Rate Mortgages (22.3%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
2.50%, 11/1/49		1,249		1,283
3.00%, 11/1/49 - 12/1/49		1,057		1,085
3.50%, 8/1/49		484		502
4.00%, 4/1/49 - 11/1/49		2,119		2,240
4.50%, 2/1/49		853		929
Gold Pools:
3.00%, 3/1/47 - 6/1/49		2,013		2,116
3.50%, 1/1/44 - 4/1/49		1,181		1,270
4.00%, 6/1/44 - 1/1/48		700		764
5.41%, 7/1/37 - 8/1/37		19		21
5.44%, 1/1/37 - 2/1/38		49		54
5.46%, 5/1/37 - 1/1/38		41		46
5.48%, 8/1/37		11		12
5.50%, 8/1/37 - 4/1/38		58		65
5.52%, 10/1/37		5		6
5.62%, 12/1/36 - 8/1/37		57		65
6.00%, 10/1/36 - 8/1/38		89		102
6.50%, 12/1/25 - 8/1/33		67		76
7.00%, 6/1/28 - 11/1/31		28		29
Federal National Mortgage Association,
April TBA:
3.00%, 4/1/51 (a)		14,625		15,235
3.50%, 4/1/51 (a)		26,400		27,890
Conventional Pools:
2.50%, 10/1/49 - 2/1/50		2,264		2,312
3.00%, 6/1/40 - 1/1/50		6,506		6,735
3.50%, 8/1/45 - 1/1/50		6,983		7,340
4.00%, 11/1/41 - 9/1/49		4,895		5,296
4.50%, 3/1/41 - 8/1/49		2,097		2,290
5.00%, 3/1/41		133		154
5.50%, 6/1/35 - 1/1/37		44		52
5.62%, 12/1/36		19		20
6.50%, 4/1/24 - 1/1/34		607		685
7.00%, 5/1/28 - 12/1/33		98		106
9.50%, 4/1/30		39		43
June TBA:
1.50%, 6/1/51 (a)		4,350		4,187
2.00%, 6/1/51 (a)		94,075		93,542
2.50%, 6/1/51 (a)		46,650		47,672
Government National Mortgage Association,
Various Pools:
3.50%, 11/20/40 - 7/20/49		1,436		1,537
4.00%, 8/20/41 - 11/20/49		5,992		6,429
4.50%, 4/20/49 - 7/20/49		933		1,005

	Face Amount (000)		Value (000)
5.00%, 12/20/48 - 2/20/49	$	104	$	112
6.50%, 5/15/40		365		429
				233,736
Asset-Backed Securities (12.1%)
AASET 2018-2 US Ltd.,
4.45%, 11/18/38 (b)		3,397		3,431
Accredited Mortgage Loan Trust,
1 Month USD LIBOR + 0.60%, 0.71%, 4/25/34 (c)		639		633
Ajax Mortgage Loan Trust,
1.70%, 5/25/59 (b)		2,279		2,308
2.24%, 6/25/66 (b)		2,427		2,421
American Homes 4 Rent Trust,
6.07%, 10/17/52 (b)		601		661
AMSR Trust,
2.77%, 1/19/39 (b)		3,100		3,233
Aqua Finance Trust,
3.47%, 7/16/40 (b)		900		948
Avant Loans Funding Trust,
4.65%, 4/15/26 (b)		850		860
5.00%, 11/17/25 (b)		357		358
BCMSC Trust,
7.51%, 1/15/29 (c)		1,384		1,344
Blackbird Capital Aircraft Lease Securitization Ltd.,
5.68%, 12/16/41 (b)		752		745
Cascade Funding Mortgage Trust,
5.60%, 4/25/30 (b)(c)		1,000		1,060
7.30%, 4/25/30 (b)(c)		2,000		2,143
Cascade MH Asset Trust,
4.00%, 11/25/44 (b)(c)		1,447		1,520
CFMT 2020-HB3 LLC,
6.28%, 5/25/30 (b)(c)		1,100		1,108
CFMT 2020-HB4 LLC,
2.72%, 12/26/30 (b)(c)		3,850		3,850
Conn's Receivables Funding LLC,
3.62%, 6/17/24 (b)		890		894
Consumer Loan Underlying Bond Credit Trust,
4.41%, 10/15/26 (b)		2,000		2,025
4.66%, 7/15/26 (b)		1,000		1,028
5.21%, 7/15/25 (b)		1,136		1,158
ContiMortgage Home Equity Loan Trust,
8.10%, 8/15/25		19		15
CWABS Asset-Backed Certificates Trust,
1 Month USD LIBOR + 1.58%, 1.68%, 12/25/34 (c)		3,680		3,691
Diamond Resorts Owner Trust,
4.02%, 2/20/32 (b)		1,023		1,021
Fair Square Issuance Trust,
2.90%, 9/20/24 (b)		900		910
Falcon Aerospace Ltd.,
3.60%, 9/15/39 (b)		875		883
FCI Funding 2019-1 LLC,
3.63%, 2/18/31 (b)		211		214

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
Foundation Finance Trust,
3.86%, 11/15/34 (b)	$	489	$	506
FREED ABS Trust,
3.19%, 11/18/26 (b)		2,000		2,032
3.87%, 6/18/26 (b)		404		408
4.52%, 6/18/27 (b)		414		418
4.61%, 10/20/25 (b)		833		840
GAIA Aviation Ltd.,
7.00%, 12/15/44 (b)		1,316		1,054
GCI Funding I LLC,
2.82%, 10/18/45 (b)		961		985
Golub Capital Partners ABS Funding Ltd.,
2.77%, 4/20/29 (b)(d)		875		875
Class A2
3.21%, 1/22/29 (b)		3,290		3,253
Goodgreen Trust,
5.53%, 4/15/55 (b)		2,743		2,824
Home Partners of America Trust,
1 Month USD LIBOR + 1.45%, 1.56%, 7/17/37 (b)(c)		2,200		2,205
Invitation Homes Trust,
Class E 1 Month USD LIBOR + 2.00%, 2.11%, 7/17/37 (b)(c)		2,146		2,151
JOL Air Ltd.,
4.95%, 4/15/44 (b)		241		227
Lunar Aircraft Ltd.,
3.38%, 2/15/45 (b)		448		440
MACH 1 Cayman Ltd.,
3.47%, 10/15/39 (b)		1,004		1,013
MAPS Ltd.,
4.21%, 5/15/43 (b)		543		549
METAL LLC,
4.58%, 10/15/42 (b)		623		514
Mosaic Solar Loan Trust,
2.10%, 4/20/46 (b)		913		924
Nationstar HECM Loan Trust,
2.82%, 9/25/30 (b)(c)		775		778
Navistar Financial Dealer Note Master Trust,
1 Month USD LIBOR + 2.90%, 3.01%, 7/25/25 (b)(c)		1,300		1,318
New Residential Mortgage LLC,
5.44%, 6/25/25 - 7/25/25 (b)		4,876		4,984
New Residential Mortgage LLC,
4.69%, 5/25/23 (b)		296		296
Newday Funding Master Issuer PLC,
SOFR + 1.10%, 1.15%, 3/15/29 (b)(c)		4,150		4,155
NewDay Funding PLC,
1 Month GBP LIBOR + 2.10%, 2.15%, 8/15/26 (b)(c)	GBP	500		686
Newtek Small Business Loan Trust,
Daily U.S. Prime Rate - 0.55%, 2.70%, 2/25/44 (b)(c)	$	511		499

	Face Amount (000)		Value (000)
NYCTL Trust,
2.19%, 11/10/32 (b)	$	868	$	874
Oxford Finance Funding LLC,
3.10%, 2/15/28 (b)		1,000		1,034
5.44%, 2/15/27 (b)		543		562
PNMAC GMSR Issuer Trust,
1 Month USD LIBOR + 2.35%, 2.46%, 4/25/23 (b)(c)		1,050		1,042
1 Month USD LIBOR + 2.65%, 2.76%, 8/25/25 (b)(c)		1,400		1,395
1 Month USD LIBOR + 2.85%, 2.96%, 2/25/23 (b)(c)		500		500
1 Month USD LIBOR + 3.00%, 3.12%, 3/25/26 (b)(c)		3,900		3,900
Prosper Marketplace Issuance Trust,
3.20%, 2/17/26 (b)		1,150		1,160
3.59%, 7/15/25 (b)		1,250		1,257
5.50%, 10/15/24 (b)		1,192		1,192
Raptor Aircraft Finance I LLC,
4.21%, 8/23/44 (b)		2,278		2,169
RCO V Mortgage LLC,
3.47%, 11/25/24 (b)		1,827		1,839
ReadyCap Lending Small Business Loan Trust,
Daily U.S. Prime Rate - 0.50%, 2.75%, 12/27/44 (b)(c)		752		719
Republic FInance Issuance Trust,
3.43%, 11/22/27 (b)		1,100		1,116
Republic Finance Issuance Trust,
3.54%, 11/20/30 (b)		1,385		1,428
Republic FInance Issuance Trust,
3.93%, 11/22/27 (b)		500		511
S-Jets Ltd.,
3.97%, 8/15/42 (b)		3,414		3,354
7.02%, 8/15/42 (b)		1,044		647
SFS Asset Securitization LLC,
4.24%, 6/10/25 (b)		2,137		2,141
SLM Student Loan Trust,
3 Month EURIBOR + 0.55%, 0.01%, 7/25/39 (c)	EUR	1,986		2,255
3 Month EURIBOR + 0.55%, 0.01%, 1/25/40 (c)		1,900		2,095
Small Business Lending Trust,
2.85%, 7/15/26 (b)	$	129		129
Small Business Origination Loan Trust,
3.85%, 12/15/27	GBP	751		994
Sofi Consumer Loan Program Trust,
3.79%, 4/26/27 (b)	$	508		514
4.02%, 8/25/27 (b)		200		204
Sprite Ltd.,
4.25%, 12/15/37 (b)		514		520
START Ireland,
4.09%, 3/15/44 (b)		339		342
Start Ltd.,
4.09%, 5/15/43 (b)		3,493		3,464

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
Sunbird Engine Finance LLC,
3.67%, 2/15/45 (b)	$	994	$	965
Tricon American Homes Trust,
5.10%, 1/17/36 (b)		3,500		3,630
5.15%, 9/17/34 (b)		1,200		1,223
Upgrade Receivables Trust,
5.17%, 11/15/24 (b)		56		56
Upstart Securitization Trust,
3.73%, 9/20/29 (b)		1,700		1,735
VCAT LLC,
3.67%, 8/25/50 (b)		1,583		1,600
Verizon Owner Trust,
0.41%, 4/21/25		6,620		6,624
1.94%, 4/22/24		1,700		1,730
				127,316
Collateralized Mortgage Obligations — Agency Collateral Series (1.3%)
Federal Home Loan Mortgage Corporation,
IO
2.74%, 8/25/48 (c)		5,484		1,136
Federal Home Loan Mortgage Corporation,
1 Month USD LIBOR + 4.35%, 4.47%, 12/25/26 (b)(c)		93		93
1 Month USD LIBOR + 5.05%, 5.17%, 7/25/23 (c)		99		101
1 Month USD LIBOR + 5.25%, 5.37%, 7/25/26 (b)(c)		46		47
IO
0.33%, 11/25/27 (c)		23,697		491
2.63%, 1/25/49 (c)		4,091		851
2.65%, 2/25/49 (c)		9,522		2,031
2.73%, 9/25/48 (c)		16,800		3,601
2.75%, 1/25/49 (c)		17,200		3,680
3.46%, 10/25/38 (c)		3,500		1,271
IO REMIC
6.00% - 1 Month USD LIBOR, 5.89%, 11/15/43 (e)		689		117
6.05% - 1 Month USD LIBOR, 5.94%, 4/15/39 (e)		7		—	@
IO STRIPS
7.50%, 12/15/29		17		3
Federal National Mortgage Association,
IO PAC REMIC
8.00%, 9/18/27		56		8
IO REMIC
6.00%, 7/25/33		45		6
IO STRIPS
6.50%, 9/25/29 - 12/25/29		237		30
8.00%, 4/25/24		20		—	@
8.50%, 10/25/25		17		2
9.00%, 11/25/26		18		2
REMIC
7.00%, 9/25/32		139		167

	Face Amount (000)		Value (000)
Government National Mortgage Association,
IO
5.00%, 2/16/41	$	132	$	25
IO PAC
6.15% - 1 Month USD LIBOR, 6.04%, 10/20/41 (e)		306		8
				13,670
Commercial Mortgage-Backed Securities (4.8%)
Bancorp Commercial Mortgage Trust,
1 Month USD LIBOR + 2.30%, 2.41%, 9/15/36 (b)(c)		1,400		1,388
BANK 2019-BNK21,
IO
0.87%, 10/17/52 (c)		14,928		892
BANK 2020-BNK30,
2.92%, 12/15/53 (c)		4,200		3,773
Benchmark Mortgage Trust,
3.76%, 7/15/53 (b)		2,000		2,042
IO
0.88%, 9/15/48 (b)(c)		31,000		1,379
BF 2019-NYT Mortgage Trust,
1 Month USD LIBOR + 1.70%, 1.81%, 12/15/35 (b)(c)		2,500		2,492
BXP Trust,
1 Month USD LIBOR + 3.00%, 3.11%, 11/15/34 (b)(c)		1,150		1,017
CG-CCRE Commercial Mortgage Trust,
1 Month USD LIBOR + 1.85%, 1.96%, 11/15/31 (b)(c)		569		547
Citigroup Commercial Mortgage Trust,
3.50%, 12/10/41 (b)(c)		1,100		846
IO
0.78%, 11/10/48 (c)		2,508		68
0.88%, 9/10/58 (c)		4,492		149
COMM Mortgage Trust,
3.40%, 8/15/57 (b)(c)		1,400		1,355
IO
0.09%, 7/10/45 (c)		12,081		19
0.72%, 10/10/47 (c)		3,150		63
1.00%, 7/15/47 (c)		2,930		77
CSMC 2020-TMIC,
Class A
1 Month USD LIBOR + 3.00%, 3.25%, 12/15/35 (b)(c)		5,275		5,338
CSWF 2018-TOP,
1 Month USD LIBOR + 1.45%, 1.56%, 8/15/35 (b)(c)		2,240		2,242
GS Mortgage Securities Trust,
4.74%, 8/10/46 (b)(c)		500		491
IO
0.73%, 9/10/47 (c)		5,062		104
1.22%, 10/10/48 (c)		4,864		221
InTown Hotel Portfolio Trust,
1 Month USD LIBOR + 2.30%, 2.41%, 1/15/33 (b)(c)		579		578

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
Jackson Park Trust LIC,
3.24%, 10/14/39 (b)(c)	$	1,700	$	1,542
JP Morgan Chase Commercial Mortgage Securities Trust,
IO
0.51%, 4/15/46 (c)		6,956		72
0.68%, 12/15/49 (c)		4,108		101
1.71%, 7/15/47 (c)		7,087		104
JPMBB Commercial Mortgage Securities Trust,
4.67%, 4/15/47 (b)(c)		775		756
IO
0.99%, 8/15/47 (c)		3,780		101
Manhattan West,
2.34%, 9/10/39 (b)(c)		1,500		1,466
MFT Trust,
3.28%, 8/10/40 (b)(c)		1,000		991
3.48%, 2/10/42 (b)(c)		800		743
MKT 2020-525M Mortgage Trust,
2.94%, 2/12/40 (b)(c)		1,000		889
Multifamily Connecticut Avenue Securities Trust,
1 Month USD LIBOR + 1.70%, 1.81%, 10/15/49 (b)(c)		436		438
1 Month USD LIBOR + 1.95%, 2.06%, 3/25/50 (b)(c)		2,458		2,478
Natixis Commercial Mortgage
1 Month USD LIBOR + 2.20%, 2.31%, 7/15/36 (b)(c)		2,300		2,308
4.13%, 5/15/39(b)(c)		2,300		2,257
4.32%, 1/15/43 (b)(c)		800		791
4.41%, 2/15/39 (b)(c)		1,941		1,810
Olympic Tower 2017-OT Mortgage Trust,
3.57%, 5/10/39 (b)		2,900		3,084
SG Commercial Mortgage Securities Trust,
3.73%, 3/15/37 (b)(c)		1,900		1,915
4.51%, 2/15/41 (b)(c)		1,250		1,116
Wells Fargo Commercial Mortgage Trust,
1 Month USD LIBOR + 1.74%, 1.85%, 2/15/37 (b)(c)		900		886
1 Month USD LIBOR + 2.21%, 2.32%, 1/15/35 (b)(c)		500		500
WFRBS Commercial Mortgage Trust,
4.14%, 5/15/45 (b)(c)		425		417
				49,846
Corporate Bonds (36.1%)
Energy (0.0%)
Midwest Connector Capital Co. LLC,
3.63%, 4/1/22 (b)(f)		400		406
Finance (14.5%)
AerCap Ireland Capital DAC/AerCap Global Aviation Trust,
4.13%, 7/3/23		1,150		1,221

	Face Amount (000)		Value (000)
Aflac, Inc.,
4.75%, 1/15/49	$	500	$	621
Air Lease Corp.,
2.30%, 2/1/25		1,325		1,355
American Express Co.,
4.20%, 11/6/25		1,625		1,839
American International Group, Inc.,
4.50%, 7/16/44		1,075		1,220
4.88%, 6/1/22		375		394
Anthem, Inc.,
2.25%, 5/15/30		1,325		1,305
Aon Corp.,
2.80%, 5/15/30		1,750		1,791
Australia & New Zealand Banking Group Ltd.,
2.57%, 11/25/35 (b)		875		824
AvalonBay Communities, Inc.,
2.95%, 5/11/26		375		402
Avolon Holdings Funding Ltd.,
2.88%, 2/15/25 (b)		2,650		2,643
Banco Bradesco SA,
3.20%, 1/27/25 (b)		2,790		2,859
Banco Santander Chile,
2.70%, 1/10/25 (b)		1,125		1,178
Banco Santander SA,
5.18%, 11/19/25		600		681
Bank of America Corp.,
2.68%, 6/19/41		703		660
3.25%, 10/21/27		2,300		2,474
MTN
4.00%, 1/22/25		1,055		1,156
Series N
2.65%, 3/11/32		5,375		5,393
Bank of Montreal,
3.80%, 12/15/32		2,700		2,969
Banque Federative du Credit Mutuel SA,
3.75%, 7/20/23 (b)		1,530		1,640
BBVA USA,
3.50%, 6/11/21		800		803
Belrose Funding Trust,
2.33%, 8/15/30 (b)		1,225		1,182
BNP Paribas SA,
2.82%, 11/19/25 - 1/26/41(b)		1,450		1,412
4.40%, 8/14/28 (b)		1,050		1,198
Boston Properties LP,
3.80%, 2/1/24		700		754
BPCE SA,
5.15%, 7/21/24 (b)		2,750		3,080
Brookfield Finance LLC,
3.45%, 4/15/50		1,350		1,281
Brookfield Finance, Inc.,
4.00%, 4/1/24		775		842

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Brown & Brown, Inc.,
2.38%, 3/15/31	$	900	$	867
4.20%, 9/15/24		1,150		1,265
Canadian Imperial Bank of Commerce,
2.25%, 1/28/25		2,300		2,387
Capital One Financial Corp.,
3.30%, 10/30/24		3,525		3,802
Chubb INA Holdings, Inc.,
1.38%, 9/15/30		2,275		2,080
Citigroup, Inc.,
2.57%, 6/3/31		375		375
2.67%, 1/29/31		2,650		2,666
4.41%, 3/31/31		1,788		2,043
Citizens Bank NA,
MTN
2.55%, 5/13/21		250		250
CNO Financial Group, Inc.,
5.25%, 5/30/29		885		1,023
Commonwealth Bank of Australia,
3.31%, 3/11/41 (b)		1,675		1,628
Cooperatieve Rabobank UA,
3.95%, 11/9/22		650		685
Credit Agricole SA,
3.25%, 10/4/24 (b)		725		779
Credit Suisse Group AG,
2.59%, 9/11/25 (b)		4,800		4,980
Crown Castle International Corp.,
3.30%, 7/1/30		950		996
4.15%, 7/1/50		725		781
Danske Bank A/S,
5.00%, 1/12/23 (b)		350		361
Deutsche Bank AG,
3.95%, 2/27/23		850		898
Equinix, Inc.,
1.00%, 9/15/25		2,500		2,457
GA Global Funding Trust,
1.00%, 4/8/24		1,875		1,873
GE Capital International Funding Co., Unlimited Co.,
4.42%, 11/15/35		1,965		2,252
GLP Capital LP/GLP Financing II, Inc.,
5.38%, 4/15/26		1,250		1,406
Goldman Sachs Group, Inc. (The),
1.99%, 1/27/32		3,550		3,372
MTN
4.80%, 7/8/44		625		770
Grupo Aval Ltd.,
4.38%, 2/4/30 (b)		770		779
Howard Hughes Corp. (The),
4.38%, 2/1/31 (b)		1,480		1,451
HSBC Holdings PLC,
4.25%, 3/14/24		2,325		2,532
4.00%, 12/31/99 (g)		2,300		2,294

	Face Amount (000)		Value (000)
HSBC USA, Inc.,
3.50%, 6/23/24	$	1,450	$	1,568
Intercontinental Exchange, Inc.,
1.85%, 9/15/32		2,675		2,452
Intesa Sanpaolo SpA,
5.25%, 1/12/24		610		679
Itau Unibanco Holding SA,
2.90%, 1/24/23 (b)		3,100		3,168
Jefferies Finance LLC/JFIN Co-Issuer Corp.,
6.25%, 6/3/26 (b)		1,325		1,398
JPMorgan Chase & Co.,
1.95%, 2/4/32		3,175		3,012
4.13%, 12/15/26		3,225		3,635
Kimco Realty Corp.,
3.70%, 10/1/49		1,050		1,056
Lloyds Banking Group PLC,
3.57%, 11/7/28		250		270
4.38%, 3/22/28		1,525		1,713
Macquarie Bank Ltd.,
2.30%, 1/22/25 (b)		1,700		1,762
Marsh & McLennan Cos., Inc.,
5.88%, 8/1/33		1,554		2,045
Massachusetts Mutual Life Insurance Co.,
5.08%, 2/15/69		950		1,108
MassMutual Global Funding II,
3.40%, 3/8/26 (b)		1,040		1,142
Mastercard, Inc.,
1.90%, 3/15/31		1,400		1,378
MetLife, Inc.,
4.55%, 3/23/30		325		379
Metropolitan Life Global Funding I,
2.95%, 4/9/30 (b)		1,300		1,356
Mizuho Financial Group, Inc.,
2.63%, 4/12/21 (b)		600		600
MPT Operating Partnership LP/ MPT Finance Corp.,
5.00%, 10/15/27		965		1,017
Nationwide Building Society,
3.96%, 7/18/30 (b)		1,200		1,311
4.30%, 3/8/29 (b)		1,550		1,717
4.36%, 8/1/24 (b)		500		540
Natwest Group PLC,
3.88%, 9/12/23		875		939
NTT Finance Corp.,
1.59%, 4/3/28 (b)		3,900		3,810
Ooredoo International Finance Ltd.,
2.63%, 4/8/31		1,470		1,454
Oversea-Chinese Banking Corp. Ltd.,
1.83%, 9/10/30 (b)		970		962
Pine Street Trust I,
4.57%, 2/15/29 (b)		575		647
Progressive Corp. (The),
3.20%, 3/26/30		725		780
4.00%, 3/1/29		575		653

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Quicken Loans LLC/Quicken Loans Co-Issuer, Inc.,
3.88%, 3/1/31 (b)	$	1,350	$	1,303
Realty Income Corp.,
0.75%, 3/15/26		1,602		1,545
Santander UK Group Holdings PLC,
3.57%, 1/10/23		2,400		2,454
SBA Communications Corp.,
3.13%, 2/1/29 (b)		1,610		1,550
Societe Generale SA,
2.63%, 1/22/25 (b)		1,625		1,685
Standard Chartered PLC,
4.64%, 4/1/31 (b)		526		598
SVB Financial Group,
1.80%, 2/2/31		2,900		2,680
Syngenta Finance N.V.,
4.89%, 4/24/25 (b)		975		1,044
TD Ameritrade Holding Corp.,
3.63%, 4/1/25		500		546
Travelers Cos., Inc. (The),
3.75%, 5/15/46		800		868
UnitedHealth Group, Inc.,
3.75%, 7/15/25		1,675		1,856
Wells Fargo & Co.,
2.57%, 2/11/31		1,125		1,132
5.01%, 4/4/51		1,000		1,285
Westpac Banking Corp.,
2.67%, 11/15/35		775		736
				152,062
Industrials (20.0%)
7-Eleven, Inc.,
1.80%, 2/10/31 (b)		2,500		2,338
AbbVie, Inc.,
4.25%, 11/21/49		2,400		2,720
Adobe, Inc.,
2.30%, 2/1/30		1,975		1,999
AHS Hospital Corp.,
Series 2021
2.78%, 7/1/51		650		603
Akamai Technologies, Inc.,
0.38%, 9/1/27		925		1,008
Albertsons Cos., Inc./Safeway, Inc./
New Albertsons LP/Albertsons LLC,
3.50%, 2/15/23 (b)		700		715
Alibaba Group Holding Ltd.,
2.13%, 2/9/31		825		788
Altria Group, Inc.,
3.40%, 2/4/41		2,225		2,067
Amazon.com, Inc.,
2.70%, 6/3/60		1,075		956

	Face Amount (000)		Value (000)
American Airlines Inc/AAdvantage Loyalty IP Ltd.,
5.75%, 4/20/29 (b)	$	1,590	$	1,693
Amgen, Inc.,
3.15%, 2/21/40		1,100		1,093
Anheuser-Busch InBev Worldwide, Inc.,
3.50%, 6/1/30		650		705
4.50%, 6/1/50		1,425		1,620
4.60%, 4/15/48		1,233		1,415
Anthem, Inc.,
2.38%, 1/15/25		550		575
Apple, Inc.,
2.05%, 9/11/26		375		388
2.65%, 2/8/51		2,025		1,854
Arches Buyer, Inc.,
4.25%, 6/1/28 (b)		1,550		1,550
AT&T, Inc.,
2.55%, 12/1/33 (b)		1,725		1,639
3.55%, 9/15/55 (b)		3,075		2,819
3.65%, 9/15/59 (b)		275		252
Automatic Data Processing, Inc.,
1.25%, 9/1/30		2,250		2,063
Baidu, Inc.,
1.72%, 4/9/26		1,450		1,446
BAT Capital Corp.,
3.56%, 8/15/27		2,100		2,237
Becton Dickinson and Co.,
2.89%, 6/6/22		512		525
Berry Global, Inc.,
4.50%, 2/15/26 (b)(f)		2,225		2,285
Boeing Co. (The),
2.95%, 2/1/30		650		649
3.25%, 2/1/35		225		218
3.95%, 8/1/59		350		337
Booking Holdings, Inc.,
0.90%, 9/15/21		950		1,116
BP Capital Markets America, Inc.,
3.12%, 5/4/26		2,250		2,423
BP Capital Markets PLC,
4.38%, 12/31/99 (g)		700		742
4.88%, 12/31/99 (g)		700		752
Braskem Netherlands Finance BV,
4.50%, 1/31/30 (b)		1,200		1,207
Burlington Northern Santa Fe LLC,
3.30%, 9/15/51		850		855
Campbell Soup Co.,
3.13%, 4/24/50		1,975		1,846
Charter Communications Operating LLC/ Charter Communications Operating Capital,
2.30%, 2/1/32		1,200		1,117

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
3.50%, 6/1/41	$	900	$	855
3.85%, 4/1/61		2,150		1,975
Chevron Corp.,
3.08%, 5/11/50		800		767
Children's Health System of Texas,
2.51%, 8/15/50		800		707
Cigna Corp.,
2.40%, 3/15/30		2,150		2,133
3.05%, 10/15/27		350		375
4.90%, 12/15/48		1,400		1,719
Citrix Systems, Inc.,
1.25%, 3/1/26		1,275		1,254
CNOOC Finance 2013 Ltd.,
3.00%, 5/9/23		540		562
Coca-Cola Femsa SAB de CV,
2.75%, 1/22/30		1,600		1,610
Comcast Corp.,
1.95%, 1/15/31		3,725		3,591
2.45%, 8/15/52		1,050		900
2.80%, 1/15/51		825		758
Conagra Brands, Inc.,
1.38%, 11/1/27		3,075		2,966
ConocoPhillips,
4.88%, 10/1/47 (b)		575		700
CVS Health Corp.,
1.88%, 2/28/31		2,555		2,402
5.13%, 7/20/45		425		521
Deere & Co.,
3.10%, 4/15/30		500		535
Dell International LLC/EMC Corp.,
5.85%, 7/15/25 (b)		400		467
6.02%, 6/15/26 (b)		1,475		1,748
Delta Air Lines, Inc.,
Series AA
3.20%, 10/25/25		1,050		1,089
DexCom, Inc.,
0.25%, 11/15/25 (b)		1,175		1,160
Diageo Capital PLC,
2.13%, 10/24/24		1,475		1,541
Diamond Sports Group LLC/ Diamond Sports Finance Co.,
6.63%, 8/15/27 (b)(f)		700		365
Diamondback Energy, Inc.,
3.25%, 12/1/26		1,750		1,847
Duke University,
Series 2020
2.83%, 10/1/55		1,600		1,555
Enbridge, Inc.,
2.50%, 1/15/25		925		965
Energy Transfer Operating LP,
2.90%, 5/15/25		1,575		1,641

	Face Amount (000)		Value (000)
Enterprise Products Operating LLC,
4.20%, 1/31/50	$	2,075	$	2,217
Fiserv, Inc.,
2.65%, 6/1/30		500		504
Ford Motor Credit Co., LLC,
3.10%, 5/4/23		400		407
4.39%, 1/8/26		800		842
Fortive Corp.,
0.88%, 2/15/22		1,044		1,064
Fortune Brands Home & Security, Inc.,
4.00%, 9/21/23		675		729
Fox Corp.,
5.58%, 1/25/49		925		1,182
Galaxy Pipeline Assets Bidco Ltd.,
1.75%, 9/30/27 (b)		3,050		3,053
General Motors Co.,
6.60%, 4/1/36		200		260
General Motors Financial Co., Inc.,
3.85%, 1/5/28		800		863
4.35%, 1/17/27		1,825		2,029
Georgia-Pacific LLC,
2.30%, 4/30/30 (b)		1,525		1,521
Gilead Sciences, Inc.,
2.80%, 10/1/50		700		623
Glencore Funding LLC,
4.13%, 3/12/24 (b)		2,375		2,574
Global Payments, Inc.,
1.20%, 3/1/26		1,075		1,059
Grifols SA,
2.25%, 11/15/27 (b)	EUR	800		951
GSK Finance No 3 PLC,
0.00%, 6/22/23 (b)		1,500		1,624
HCA, Inc.,
5.25%, 6/15/49	$	1,900		2,330
Heathrow Funding Ltd.,
4.88%, 7/15/23 (b)		525		530
Hyundai Capital America,
1.80%, 1/10/28 (b)		2,650		2,536
Imperial Brands Finance PLC,
3.13%, 7/26/24 (b)		1,000		1,058
International Business Machines Corp.,
2.95%, 5/15/50		1,450		1,353
3.30%, 5/15/26		2,750		2,998
J2 Global, Inc.,
1.75%, 11/1/26 (Convertible) (b)		825		971
4.63%, 10/15/30 (b)		1,250		1,265
Jazz Investments I Ltd.,
1.88%, 8/15/21		1,000		1,026
Johns Hopkins University,
Series A
2.81%, 1/1/60		1,170		1,099
Kimberly-Clark de Mexico SAB de CV,
2.43%, 7/1/31 (b)		1,375		1,344

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Las Vegas Sands Corp.,
3.20%, 8/8/24	$	850	$	887
Level 3 Financing, Inc.,
3.40%, 3/1/27 (b)		1,275		1,352
Lions Gate Capital Holdings LLC,
5.50%, 4/15/29 (b)(d)		1,570		1,574
Lowe's Cos., Inc.,
1.30%, 4/15/28		200		190
1.70%, 10/15/30		350		329
2.50%, 4/15/26		775		816
LYB International Finance III LLC,
4.20%, 5/1/50		550		593
MARB BondCo PLC,
3.95%, 1/29/31 (b)		2,720		2,591
Marriott Vacations Worldwide Corp.,
1.50%, 9/15/22		915		1,188
Masco Corp.,
2.00%, 2/15/31		1,675		1,591
McLaren Health Care Corp.,
Series A
4.39%, 5/15/48		1,175		1,393
Meituan,
2.13%, 10/28/25 (b)		930		927
Microsoft Corp.,
2.53%, 6/1/50		650		593
2.92%, 3/17/52		100		99
Mondelez International Holdings Netherlands BV,
2.25%, 9/19/24 (b)		2,925		3,061
Newcastle Coal Infrastructure Group Pty Ltd.,
4.40%, 9/29/27 (b)		2,550		2,590
Newmont Corp.,
2.25%, 10/1/30		1,150		1,121
NIKE, Inc.,
2.85%, 3/27/30		1,225		1,291
Nissan Motor Co. Ltd.,
3.04%, 9/15/23 (b)		2,400		2,512
NVIDIA Corp.,
2.85%, 4/1/30		1,250		1,314
Occidental Petroleum Corp.,
3.20%, 8/15/26		160		154
5.55%, 3/15/26		925		980
ONEOK, Inc.,
4.45%, 9/1/49		275		275
5.20%, 7/15/48		450		493
Oracle Corp.,
2.50%, 4/1/25		1,900		1,998
3.95%, 3/25/51		950		981
Procter & Gamble Co. (The),
1.20%, 10/29/30		1,050		973
Raytheon Technologies Corp.,
3.13%, 7/1/50		425		412

	Face Amount (000)		Value (000)
Resorts World Las Vegas LLC/ RWLV Capital, Inc.,
4.63%, 4/16/29 (b)	$	2,800	$	2,826
Rockies Express Pipeline LLC,
3.60%, 5/15/25 (b)		2,125		2,134
Ross Stores, Inc.,
0.88%, 4/15/26		2,100		2,034
Royalty Pharma PLC,
3.55%, 9/2/50 (b)		925		884
Saudi Arabian Oil Co.,
3.25%, 11/24/50 (b)		960		870
Seattle Children's Hospital,
Series 2021
2.72%, 10/1/50		2,750		2,525
Shell International Finance BV,
3.13%, 11/7/49		575		556
3.25%, 5/11/25		1,150		1,243
Sherwin-Williams Co. (The),
2.30%, 5/15/30		925		912
2.95%, 8/15/29		625		652
Siemens Financieringsmaatschappij N.V.,
2.35%, 10/15/26 (b)		2,050		2,123
Silgan Holdings, Inc.,
1.40%, 4/1/26 (b)		2,150		2,107
Splunk, Inc.,
1.13%, 6/15/27 (b)		1,200		1,144
Sprint Spectrum Co., LLC/Sprint Spectrum Co., II LLC/Sprint Spectrum Co., III LLC,
3.36%, 3/20/23 (b)		423		427
Standard Industries, Inc.,
2.25%, 11/21/26 (b)	EUR	575		686
Sunoco Logistics Partners Operations LP,
3.90%, 7/15/26	$	750		808
T-Mobile USA, Inc.,
2.25%, 11/15/31 (b)(f)		1,700		1,617
3.60%, 11/15/60 (b)		650		625
Targa Resources Partners LP/Targa Resources Partners Finance Corp.,
4.00%, 1/15/32 (b)		2,695		2,538
Telefonica Emisiones SA,
4.10%, 3/8/27		1,800		2,014
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21		162		162
TOTAL SE,
Series FP
0.50%, 12/2/22		1,200		1,252
Trimble, Inc.,
4.15%, 6/15/23		1,150		1,229
TSMC Global Ltd.,
0.75%, 9/28/25 (b)		1,325		1,295
Twitter, Inc.,
1.00%, 9/15/21		1,433		1,489

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Verizon Communications, Inc.,
1.50%, 9/18/30	$	350	$	322
2.65%, 11/20/40		2,050		1,876
2.99%, 10/30/56 (b)		2,550		2,256
3.40%, 3/22/41		275		280
Viatris, Inc.,
4.00%, 6/22/50 (b)		725		741
Volkswagen Group of America Finance LLC,
4.75%, 11/13/28 (b)		1,025		1,189
Vontier Corp.,
2.40%, 4/1/28 (b)		2,700		2,659
VTR Finance,
6.38%, 7/15/28 (b)(f)		1,050		1,137
Walmart, Inc.,
2.95%, 9/24/49		222		219
3.70%, 6/26/28 (f)		250		281
Walt Disney Co. (The),
2.75%, 9/1/49		2,491		2,285
3.60%, 1/13/51		281		300
Western Digital Corp.,
1.50%, 2/1/24		1,055		1,083
Western Midstream Operating LP,
4.35%, 2/1/25		1,200		1,244
Williams Cos., Inc. (The),
4.85%, 3/1/48		2,225		2,474
Zynga, Inc.,
0.00%, 12/15/26 (b)		1,150		1,225
				209,336
Utilities (1.6%)
Calpine Corp.,
4.50%, 2/15/28 (b)		1,450		1,464
DTE Electric Co.,
2.95%, 3/1/50		350		333
Duke Energy Indiana LLC,
2.75%, 4/1/50		185		166
Series YYY
3.25%, 10/1/49		273		270
Enel Finance International N.V.,
3.63%, 5/25/27 (b)		1,800		1,950
FirstEnergy Corp.,
Series C
3.40%, 3/1/50		725		638
Korea Hydro & Nuclear Power Co., Ltd.,
3.75%, 7/25/23 (b)		1,380		1,481
Mississippi Power Co.,
3.95%, 3/30/28		2,325		2,566
Northern States Power Co.,
2.90%, 3/1/50		1,400		1,342
NRG Energy, Inc.,
3.63%, 2/15/31 (b)		1,530		1,495

	Face Amount (000)		Value (000)
Oglethorpe Power Corp.,
5.05%, 10/1/48	$	1,325	$	1,565
Pacific Gas and Electric Co.,
3.30%, 8/1/40		1,025		931
Piedmont Natural Gas Co., Inc.,
2.50%, 3/15/31		975		967
Xcel Energy, Inc.,
2.60%, 12/1/29		1,850		1,869
				17,037
				378,841
Mortgages — Other (12.8%)
Adjustable Rate Mortgage Trust,
3.26%, 6/25/35 (c)		139		141
Ajax Mortgage Loan Trust,
2.35%, 9/25/65 (b)(c)		725		704
Alternative Loan Trust,
1 Month USD LIBOR + 0.18%, 0.29%, 5/25/47 (c)		100		96
Banc of America Alternative Loan Trust,
1 Month USD LIBOR + 0.65%, 0.76%, 7/25/46 (c)		141		107
6.36%, 10/25/36		463		211
Banc of America Funding Trust,
5.25%, 7/25/37		52		52
Bear Stearns ARM Trust,
2.71%, 2/25/34 (c)		638		653
BRAVO Residential Funding Trust,
2.00%, 5/25/59 (b)(c)		2,410		2,449
Brean Asset Backed Securities Trust,
1.40%, 10/25/63 (b)(c)		1,900		1,811
Bunker Hill Loan Depositary Trust,
1.72%, 2/25/55 (b)(c)		2,379		2,418
Cascade Funding Mortgage Trust,
4.00%, 10/25/68 (b)(c)		1,868		1,897
CFMT 2020-ABC1 LLC,
1.94%, 9/25/50 (b)(c)		4,325		4,281
CFMT 2021-HB5 LLC,
2.91%, 2/25/31 (b)(c)		3,800		3,780
ChaseFlex Trust,
6.00%, 2/25/37		647		380
Classic RMBS Trust,
3.06%, 8/16/49 (b)	CAD	996		793
CSMC Trust,
3.89%, 12/15/23		3,300		3,314
E-MAC NL 2004-I BV,
3 Month EURIBOR + 0.18%, 1.72%, 7/25/36 (c)	EUR	456		530
Eurosail BV,
3 Month EURIBOR + 1.80%, 1.25%, 10/17/40 (c)		700		824
Eurosail PLC,
3 Month GBP LIBOR + 0.95%, 1.03%, 6/13/45 (c)	GBP	642		866

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
Farringdon Mortgages No. 2 PLC,
3 Month GBP LIBOR + 1.50%, 1.53%, 7/15/47 (c)	GBP	209	$	290
Federal Home Loan Mortgage Corporation,
1 Month USD LIBOR + 2.35%, 2.46%, 4/25/30 (c)	$	941		957
1 Month USD LIBOR + 5.15%, 5.26%, 10/25/29 (c)		300		324
3.00%, 7/25/46 - 5/25/47		1,874		1,852
3.50%, 5/25/45 - 5/25/47		906		906
3.88%, 5/25/45 (b)(c)		15		15
4.00%, 5/25/45		31		31
FMC GMSR Issuer Trust,
4.23%, 9/25/24 (b)(c)		1,900		1,899
4.45%, 1/25/26 (b)(c)		3,500		3,484
5.07%, 5/25/24 (b)(c)		3,600		3,626
Grifonas Finance PLC,
6 Month EURIBOR + 0.28%, 0.00%, 8/28/39 (c)	EUR	333		383
HarborView Mortgage Loan Trust,
1 Month USD LIBOR + 0.19%,
0.30%, 1/19/38 (c)	$	383		368
Headlands Residential LLC,
3.97%, 6/25/24 (b)		500		502
IM Pastor 3 FTH,
3 Month EURIBOR + 0.14%, 0.00%, 3/22/43 (c)	EUR	484		525
JP Morgan Mortgage Trust,
3.51%, 6/25/37 (c)	$	89		80
6.00%, 6/25/37		44		49
L1C 2020-1 LLC,
5.29%, 8/25/51 (b)		1,600		1,604
Landmark Mortgage Securities No. 1 PLC,
3 Month EURIBOR + 0.60%, 0.06%, 6/17/38 (c)	EUR	768		851
Legacy Mortgage Asset Trust,
3.25%, 2/25/60 (b)		3,621		3,666
Lehman Mortgage Trust,
6.50%, 9/25/37	$	635		295
LHOME Mortgage Trust,
3.23%, 10/25/24 (b)		675		680
4.58%, 10/25/23 (b)		607		610
Mello Warehouse Securitization Trust,
1 Month USD LIBOR + 0.70%, 0.81%, 2/25/55 (b)(c)		2,215		2,217
1 Month USD LIBOR + 1.30%, 1.41%, 11/25/53 (b)(c)		2,000		2,005
New Residential Mortgage Loan Trust,
3.23%, 8/25/60 (b)		489		494
New Residential Mortgage Loan Trust,
4.00%, 9/25/57 (b)(c)		686		727
Newgate Funding PLC,
3 Month GBP LIBOR + 0.16%, 0.24%, 12/15/50 (c)	GBP	1,385		1,836

	Face Amount (000)		Value (000)
NRPL Trust,
4.25%, 7/25/67 (b)	$	879	$	886
NYMT Loan Trust,
2.94%, 10/25/60 (b)(c)		1,886		1,895
3.96%, 6/25/25 (b)		3,633		3,652
OBX Trust,
3.50%, 10/25/59 - 2/25/60 (b)(c)		1,394		1,431
Paragon Mortgages No. 13 PLC,
3 Month GBP LIBOR + 0.40%, 0.43%, 1/15/39 (c)	GBP	260		359
Pepper Residential Securities Trust,
1 Month USD LIBOR + 0.93%, 1.04%, 3/12/61 (b)(c)	$	1,088		1,088
Preston Ridge Partners LLC,
2.86%, 9/25/25 (b)		2,708		2,730
PRPM LLC,
3.50%, 10/25/24 (b)(c)		1,619		1,634
RMF Buyout Issuance Trust,
1.71%, 6/25/30 (b)(c)		1,701		1,707
2.15%, 6/25/30 (b)(c)		750		754
Rochester Financing No. 2 PLC,
3 Month GBP LIBOR + 2.75%, 3.83%, 6/18/45 (c)	GBP	750		1,035
Seasoned Credit Risk Transfer Trust,
3.00%, 9/25/55 - 5/25/60	$	16,606		17,458
4.00%, 7/25/56 (c)		450		456
4.00%, 8/25/56 (b)(c)		1,000		1,025
4.00%, 8/25/58 - 2/25/59		1,888		2,075
4.25%, 8/25/59 - 5/25/60 (b)(c)		5,800		5,837
4.50%, 6/25/57		1,870		2,084
4.75%, 7/25/56 - 6/25/57 (b)(c)		1,408		1,443
4.75%, 10/25/58 (c)		1,300		1,367
Stratton Mortgage Funding 2019-1 PLC,
2.15%, 5/25/51	GBP	2,500		3,460
Structured Asset Securities Corp. Reverse Mortgage Loan Trust,
1 Month USD LIBOR + 1.85%, 1.96%, 5/25/47 (b)(c)	$	1,480		1,312
TDA 27 FTA,
3 Month EURIBOR + 0.19%, 0.00%, 12/28/50 (c)	EUR	1,600		1,548
Toorak Mortgage Corp. Ltd.,
3.72%, 9/25/22	$	2,000		2,031
Towd Point HE Trust,
0.92%, 2/25/63 (b)(c)		6,122		6,126
Towd Point Mortgage Funding 2019-Granite 5 PLC,
SONIA 3 Month + 1.80%, 1.85%, 7/20/44 (c)	GBP	1,800		2,460
Towd Point Mortgage Funding 2019-Vantage2 PLC,
2.40%, 2/20/54		2,400		3,311
TVC Mortgage Trust,
3.47%, 9/25/24 (b)	$	850		857
Vista Point Securitization Trust,
1.76%, 3/25/65 (b)(c)		2,729		2,763

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
VOLT XCIII LLC,
1.89%, 2/27/51 (b)	$	2,723	$	2,711
VOLT XCIV LLC,
2.24%, 2/27/51 (b)		3,428		3,429
				134,507
Municipal Bonds (1.1%)
Chicago O'Hare International Airport, IL, O'Hare International Airport Revenue Series 2010B
6.40%, 1/1/40		255		367
City of New York, NY,
Series G-1
5.97%, 3/1/36		270		363
Illinois State Toll Highway Authority, IL, Highway Revenue, Build America Bonds Series A
6.18%, 1/1/34		477		653
Methodist Hospital (The), NY,
Series 20A
2.71%, 12/1/50		1,520		1,404
New York City Transitional Finance Authority Future Tax Secured Revenue, NY, Transitional Finance Authority Future Tax Secured Revenue Series A
5.27%, 5/1/27		320		385
Onondaga Civic Development Corp., NY,
3.07%, 12/1/55		2,925		2,626
Pennsylvania State University (The), PA,
Series D
2.84%, 9/1/50		1,425		1,396
University of Virginia, VA,
2.26%, 9/1/50		1,550		1,347
Series C-1
2.97%, 9/1/49		1,440		1,444
Series C-2
2.97%, 9/1/49		1,020		1,023
				11,008
Sovereign (5.6%)
Australia Government Bond,
3.25%, 4/21/25	AUD	10,500		8,856
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/25	BRL	12,400		2,325
Croatia Government International Bond,
1.50%, 6/17/31	EUR	1,307		1,618
Dominican Republic International Bond,
4.88%, 9/23/32 (b)	$	410		419
5.88%, 1/30/60 (b)		2,310		2,221
Ecuador Government International Bond,
0.50%, 7/31/40 (b)(h)		261		114
Egypt Government Bond,
13.77%, 1/5/24	EGP	16,300		1,031
Egypt Government International Bond,
6.38%, 4/11/31 (b)	EUR	2,025		2,442

	Face Amount (000)		Value (000)
7.50%, 2/16/61 (b)	$	290	$	263
8.15%, 11/20/59 (b)		210		201
8.88%, 5/29/50 (b)		410		420
Export-Import Bank of India,
3.25%, 1/15/30 (b)		670		667
3.88%, 2/1/28 (b)		505		540
Export-Import Bank of Korea,
0.63%, 2/9/26 (f)		3,400		3,307
Honduras Government International Bond,
5.63%, 6/24/30 (b)		350		367
Italy Buoni Poliennali Del Tesoro,
0.65%, 10/28/27 (b)	EUR	1,280		1,583
1.30%, 5/15/28 (b)		1,176		1,589
Ivory Coast Government International Bond,
4.88%, 1/30/32 (b)		1,360		1,559
Korea Development Bank (The),
0.80%, 7/19/26	$	4,970		4,858
Mexican Bonos,
Series M
7.75%, 5/29/31	MXN	74,500		3,888
Mexico Government International Bond,
3.25%, 4/16/30 (f)	$	750		758
3.75%, 4/19/71		850		739
Morocco Government International Bond,
4.00%, 12/15/50 (b)		790		701
Nigeria Government International Bond,
9.25%, 1/21/49 (b)(f)		2,270		2,500
North Macedonia Government International Bond,
1.63%, 3/10/28 (b)	EUR	940		1,079
Pertamina Persero PT,
6.50%, 11/7/48 (b)	$	1,325		1,703
Petroleos Mexicanos,
6.50%, 1/23/29		525		531
6.84%, 1/23/30		570		580
6.88%, 10/16/25 (b)(f)		840		911
6.95%, 1/28/60		350		301
7.69%, 1/23/50		536		497
Qatar Government International Bond,
5.10%, 4/23/48 (b)		1,480		1,875
Republic of Belarus Ministry of Finance,
6.38%, 2/24/31 (b)		1,150		1,069
Republic of South Africa Government Bond,
8.00%, 1/31/30	ZAR	22,750		1,407
8.25%, 3/31/32		59,630		3,494
Republic of Uzbekistan Bond,
3.70%, 11/25/30 (b)(f)	$	840		818
Senegal Government International Bond,
6.25%, 5/23/33 (b)		705		706
Serbia International Bond,
1.65%, 3/3/33 (b)	EUR	800		912
				58,849

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Supranational (0.2%)
Banque Ouest Africaine de Developpement,
2.75%, 1/22/33 (b)	EUR	590	$	715
4.70%, 10/22/31 (b)	$	1,240		1,325
				2,040
Variable Rate Senior Loan Interests (2.4%)
American Airlines, Inc.,
2018 Term Loan B
1 Month USD LIBOR + 1.75%, 1.86%, 6/27/25 (c)		990		878
American Builders & Contractors Supply Co., Inc.,
2019 Term Loan
1 Month USD LIBOR + 2.00%, 2.11%, 1/15/27 (c)		997		991
Asurion LLC,
2020 Term Loan B8
1 Month USD LIBOR + 3.25%, 3.36%, 12/23/26 (c)		998		993
Bausch Health Cos., Inc.,
2018 Term Loan B
3 Month USD LIBOR + 3.00%, 3.11%, 6/2/25 (c)		943		941
BWAY Holding Co.,
2017 Term Loan B
3 Month USD LIBOR + 3.25%, 3.44%, 4/3/24 (c)		985		965
Carrols Restaurant Group, Inc.,
Term Loan B
1 Month USD LIBOR + 3.25%, 3.37%, 4/30/26 (c)		985		975
CenturyLink, Inc.,
2020 Term Loan B
1 Month USD LIBOR + 2.25%, 2.36%, 3/15/27 (c)		995		986
Chemours Company (The),
2018 USD Term Loan B
3 Month USD LIBOR + 1.75%, 1.86%, 4/3/25 (c)		987		961
Core & Main LP,
2017 Term Loan B
3 Month USD LIBOR + 2.75%, 3.75%, 8/1/24 (c)		987		985
CPG International, Inc.,
2017 Term Loan
3 Month USD LIBOR + 2.50%, 3.25%, 5/5/24 (c)		218		218
Creative Artists Agency LLC,
2019 Term Loan B
1 Month USD LIBOR + 3.75%, 3.86%, 11/26/26 (c)		948		939
DaVita, Inc.,
2020 Term Loan B
1 Month USD LIBOR + 1.75%, 1.86%, 8/12/26 (c)		988		983

	Face Amount (000)		Value (000)
Froneri International Ltd.,
2020 USD Term Loan
1 Month USD LIBOR + 2.25%, 2.36%, 1/29/27 (c)	$	995	$	983
Grifols Worldwide Operations USA, Inc.,
USD 2019 Term Loan B
1 Month USD LIBOR + 2.00%, 2.08%, 11/15/27 (c)		988		978
Hargray Communications Group, Inc.,
2017 Term Loan B
1 Month USD LIBOR + 2.75%, 3.75%, 5/16/24 (c)		844		844
Level 3 Financing, Inc.,
2019 Term Loan B
1 Month USD LIBOR + 1.75%, 1.86%, 3/1/27 (c)		1,000		988
Lions Gate Capital Holdings LLC,
2018 Term Loan B
3 Month USD LIBOR + 2.25%, 2.36%, 3/24/25 (c)		984		971
Medallion Midland Acquisition LLC,
1st Lien Term Loan
3 Month USD LIBOR + 3.25%, 4.25%, 10/30/24 (c)		790		784
Scientific Games International, Inc.,
2018 Term Loan B5
3 Month USD LIBOR + 2.75%, 0.00%, 8/14/24 (c)(i)		997		980
Surf Holdings LLC,
USD Term Loan
3 Month USD LIBOR + 3.50%, 3.68%, 3/5/27 (c)		744		738
Surgery Center Holdings, Inc.,
2017 Term Loan B
3 Month USD LIBOR + 3.25%, 4.25%, 9/3/24 (c)		987		979
TransDigm, Inc.,
2020 Term Loan F
1 Month USD LIBOR + 2.25%, 2.36%, 12/9/25 (c)		997		978
Univision Communications, Inc.,
2020 Replacement Term Loan
1 Month USD LIBOR + 3.75%, 4.75%, 3/15/26 (c)		904		905
US Foods, Inc.,
2019 Term Loan B
3 Month USD LIBOR + 2.00%, 2.11%, 9/13/26 (c)		997		980
Verifone Systems, Inc.,
2018 1st Lien Term Loan
3 Month USD LIBOR + 4.00%, 4.18%, 8/20/25 (c)		987		966
Virgin Media Bristol LLC,
USD Term Loan N
1 Month USD LIBOR + 2.50%, 2.61%, 1/31/28 (c)		1,000		993

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Variable Rate Senior Loan Interests (cont'd)
Ziggo Financing Partnership,
USD Term Loan I
1 Month USD LIBOR + 2.50%, 2.61%, 4/30/28 (c)	$	1,500	$	1,487
				25,369
Total Fixed Income Securities (Cost $1,032,421)				1,035,212
	Shares
Short-Term Investments (19.9%)
Investment Company (18.7%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $196,295)		196,295,233		196,295
Securities held as Collateral on Loaned Securities (0.8%)
Investment Company (0.8%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $8,248)		8,248,225		8,248
	Face Amount (000)
U.S. Treasury Securities (0.4%)
U.S. Treasury Bills,
0.03%, 6/3/21 (j)	$	950		950
0.04%, 6/3/21 (j)		1,050		1,050
0.09%, 6/3/21 (j)		2,518		2,518
Total U.S. Treasury Security (Cost $4,518)				4,518
Total Short-Term Investments (Cost $209,061)				209,061
Total Investments (118.6%) (Cost $1,241,482) Including $9,309 of Securities Loaned (k)(l)				1,244,273
Liabilities in Excess of Other Assets (–18.6%)				(194,921	)
Net Assets (100.0%)			$	1,049,352

(a)  Security is subject to delayed delivery.

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

(c)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(d)  When-issued security.

(e)  Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at March 31, 2021.

(f)  All or a portion of this security was on loan at March 31, 2021.

(g)  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 March 31, 2021.

(h)  Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2021. Maturity date disclosed is the ultimate maturity date.

(i)  Unsettled Position. The contract rate does not take effect until settlement date.

(j)  Rate shown is the yield to maturity at March 31, 2021.

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

(l)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $22,547,000 and the aggregate gross unrealized depreciation is approximately $19,698,000, resulting in net unrealized appreciation of approximately $2,849,000.

EURIBOR  Euro Interbank Offered Rate.

IO  Interest Only.

LIBOR  London Interbank Offered Rate.

MTN  Medium Term Note.

OAT  Obligations Assimilables du Trésor (French Treasury Obligation).

PAC  Planned Amortization Class.

REMIC  Real Estate Mortgage Investment Conduit.

SOFR  Secured Overnight Financing Rate.

SONIA  Sterling Overnight Index Average.

STRIPS  Separate Trading of Registered Interest and Principal of Securities.

TBA  To Be Announced.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 31, 2021:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Bank of America NA	AUD	14,536	$	11,512	5/25/21	$	469
Bank of America NA	$	2,075	AUD	2,686	5/25/21		(34	)
Bank of America NA	$	2	CAD	2	5/25/21		—	@
Barclays Bank PLC	BRL	13,963	$	2,571	5/25/21		99
Barclays Bank PLC	CAD	5,333	$	4,227	5/25/21		(16	)
Barclays Bank PLC	EUR	116	$	141	5/25/21		4
BNP Paribas SA	CHF	2,300	$	2,572	5/25/21		135
BNP Paribas SA	CHF	2,485	$	2,766	5/25/21		133
BNP Paribas SA	GBP	5,306	$	7,464	5/25/21		148
BNP Paribas SA	IDR	25,403,382	$	1,782	5/25/21		40
BNP Paribas SA	MXN	55,483	$	2,628	5/25/21		(72	)
BNP Paribas SA	$	260	CAD	325	5/25/21		(1	)
BNP Paribas SA	$	2,450	KRW	2,709,025	5/25/21		(57	)
BNP Paribas SA	ZAR	43,471	$	2,814	5/25/21		(112	)
Citibank NA	EUR	925	$	1,104	5/25/21		18
Citibank NA	$	2,618	CNY	17,030	5/25/21		(30	)
JPMorgan Chase Bank NA	EUR	18,292	$	22,263	5/25/21		790
JPMorgan Chase Bank NA	IDR	35,429,638	$	2,428	5/25/21		(3	)
JPMorgan Chase Bank NA	$	43	GBP	31	5/25/21		(1	)
JPMorgan Chase Bank NA	$	843	ZAR	13,094	5/25/21		38
Royal Bank of Canada	$	2,652	JPY	278,322	5/25/21		(137	)
Royal Bank of Canada	$	8,094	NOK	68,682	5/25/21		(64	)
State Street Bank and Trust Co.	$	2,723	CAD	3,406	5/25/21		(12	)
UBS AG	MXN	33,166	$	1,592	5/25/21		(22	)
UBS AG	SEK	44,430	$	5,378	5/25/21		288
UBS AG	$	2,689	JPY	282,395	5/25/21		(137	)
UBS AG	$	1,187	ZAR	18,405	5/25/21		52
UBS AG	$	695	ZAR	10,448	5/25/21		9
UBS AG	ZAR	76,758	$	5,116	5/25/21		(51	)
						$	1,474

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2021:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		509	Jun-21	$	101,800		$	112,350		$	(103	)
U.S. Treasury 30 yr. Bond		43	Jun-21		4,300			6,648			(212	)
U.S. Treasury 5 yr. Note		480	Jun-21		48,000			59,231			(643	)
U.S. Treasury Ultra Bond		212	Jun-21		21,200			38,418			(1,247	)
Short:
Euro OAT		69	Jun-21	EUR	(6,900	)		(13,104	)		23
German Euro 30 yr. Bond		4	Jun-21		(400	)		(967	)		15
German Euro BTP		15	Jun-21		(1,500	)		(2,626	)		(13	)
German Euro Bund		16	Jun-21		(1,600	)		(3,214	)		4
U.S. Treasury 10 yr. Note		162	Jun-21	$	(16,200	)		(21,212	)		518
U.S. Treasury Ultra Long Bond		92	Jun-21		(9,200	)		(13,219	)		203
UK Long Gilt Bond		36	Jun-21	GBP	(3,600	)		(6,332	)		39
										$	(1,416	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

@  —  Value is less than $500.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CNY  —  Chinese Yuan Renminbi

EGP  —  Egyptian Pound

EUR  —  Euro

GBP  —  British Pound

IDR  —  Indonesian Rupiah

JPY  —  Japanese Yen

KRW  —  South Korean Won

MXN  —  Mexican Peso

NOK  —  Norwegian Krone

SEK  —  Swedish Krona

USD  —  United States Dollar

ZAR  —  South African Rand

Portfolio Composition*

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		18.9	%
Industrials		16.9
Short-Term Investments		16.3
Other**		14.4
Finance		12.3
Mortgages — Other		10.9
Asset-Backed Securities		10.3
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2021.

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

***  Does not include open long/short futures contracts with a value of approximately $277,321,000 and net unrealized depreciation of approximately $1,416,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $1,474,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $1,036,939)	$	1,039,730
Investment in Security of Affiliated Issuer, at Value (Cost $204,543)		204,543
Total Investments in Securities, at Value (Cost $1,241,482)		1,244,273
Foreign Currency, at Value (Cost $4,952)		4,918
Cash		431
Receivable for Investments Sold		436,290
Interest Receivable		4,418
Receivable for Fund Shares Sold		4,235
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		2,223
Receivable for Variation Margin on Futures Contracts		2,149
Tax Reclaim Receivable		11
Receivable from Affiliate		4
Receivable from Securities Lending Income		2
Other Assets		178
Total Assets		1,699,132
Liabilities:
Payable for Investments Purchased		636,312
Collateral on Securities Loaned, at Value		8,248
Payable for Fund Shares Redeemed		2,974
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		749
Due to Broker		535
Payable for Advisory Fees		488
Deferred Capital Gain Country Tax		96
Payable for Sub Transfer Agency Fees — Class I		66
Payable for Sub Transfer Agency Fees — Class A		17
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Administration Fees		72
Payable for Professional Fees		63
Payable for Shareholder Services Fees — Class A		28
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		24
Payable for Custodian Fees		38
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		65
Total Liabilities		649,780
Net Assets	$	1,049,352
Net Assets Consist of:
Paid-in-Capital	$	1,049,963
Total Accumulated Loss		(611	)
Net Assets	$	1,049,352

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2021 (000)
CLASS I:
Net Assets	$	794,168
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		69,806,587
Net Asset Value, Offering and Redemption Price Per Share	$	11.38
CLASS A:
Net Assets	$	129,469
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		11,363,336
Net Asset Value, Redemption Price Per Share	$	11.39
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.38
Maximum Offering Price Per Share	$	11.77
CLASS L:
Net Assets	$	1,107
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		97,036
Net Asset Value, Offering and Redemption Price Per Share	$	11.41
CLASS C:
Net Assets	$	28,004
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,476,725
Net Asset Value, Offering and Redemption Price Per Share	$	11.31
CLASS IS:
Net Assets	$	96,604
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		8,496,468
Net Asset Value, Offering and Redemption Price Per Share	$	11.37
(1) Including: Securities on Loan, at Value:	$	9,309

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $65 of Foreign Taxes Withheld)	$	13,376
Dividends from Security of Affiliated Issuer (Note G)		23
Income from Securities Loaned — Net		14
Total Investment Income		13,413
Expenses:
Advisory Fees (Note B)		1,905
Sub Transfer Agency Fees — Class I		340
Sub Transfer Agency Fees — Class A		76
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		7
Administration Fees (Note C)		410
Shareholder Services Fees — Class A (Note D)		162
Distribution and Shareholder Services Fees — Class L (Note D)		3
Distribution and Shareholder Services Fees — Class C (Note D)		138
Professional Fees		74
Registration Fees		73
Pricing Fees		44
Custodian Fees (Note F)		42
Shareholder Reporting Fees		33
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		8
Other Expenses		15
Total Expenses		3,340
Waiver of Advisory Fees (Note B)		(710	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(152	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(95	)
Net Expenses		2,382
Net Investment Income		11,031
Realized Gain (Loss):
Investments Sold (Net of $13 of Capital Gain Country Tax)		2,089
Foreign Currency Forward Exchange Contracts		(3,346	)
Foreign Currency Translation		(38	)
Futures Contracts		(2,703	)
Swap Agreements		(897	)
Net Realized Loss		(4,895	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $6)		(16,847	)
Foreign Currency Forward Exchange Contracts		1,337
Foreign Currency Translation		(42	)
Futures Contracts		(1,450	)
Swap Agreements		134
Net Change in Unrealized Appreciation (Depreciation)		(16,868	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(21,763	)
Net Decrease in Net Assets Resulting from Operations	$	(10,732	)

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	11,031		$	20,033
Net Realized Gain (Loss)		(4,895	)		27,385
Net Change in Unrealized Appreciation (Depreciation)		(16,868	)		(484	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(10,732	)		46,934
Dividends and Distributions to Shareholders:
Class I		(28,235	)		(18,149	)
Class A		(4,625	)		(2,980	)
Class L		(35	)		(20	)
Class C		(864	)		(432	)
Class IS		(3,521	)		(2,603	)
Total Dividends and Distributions to Shareholders		(37,280	)		(24,184	)
Capital Share Transactions:(1)
Class I:
Subscribed		295,664			449,352
Distributions Reinvested		27,980			17,870
Redeemed		(155,949	)		(278,475	)
Class A:
Subscribed		39,579			59,971
Distributions Reinvested		4,625			2,980
Redeemed		(23,085	)		(43,470	)
Class L:
Exchanged		398			73
Distributions Reinvested		35			20
Redeemed		(89	)		(24	)
Class C:
Subscribed		5,541			15,394
Distributions Reinvested		862			427
Redeemed		(3,110	)		(5,020	)
Class IS:
Subscribed		4,870			102,407
Distributions Reinvested		3,168			2,250
Redeemed		(3,288	)		(11,558	)
Net Increase in Net Assets Resulting from Capital Share Transactions		197,201			312,197
Total Increase in Net Assets		149,189			334,947
Net Assets:
Beginning of Period		900,163			565,216
End of Period	$	1,049,352		$	900,163

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		25,137			38,635
Shares Issued on Distributions Reinvested		2,390			1,542
Shares Redeemed		(13,356	)		(24,048	)
Net Increase in Class I Shares Outstanding		14,171			16,129
Class A:
Shares Subscribed		3,358			5,160
Shares Issued on Distributions Reinvested		394			257
Shares Redeemed		(1,978	)		(3,776	)
Net Increase in Class A Shares Outstanding		1,774			1,641
Class L:
Shares Exchanged		34			6
Shares Issued on Distributions Reinvested		3			2
Shares Redeemed		(8	)		(2	)
Net Increase in Class L Shares Outstanding		29			6
Class C:
Shares Subscribed		474			1,325
Shares Issued on Distributions Reinvested		74			37
Shares Redeemed		(266	)		(442	)
Net Increase in Class C Shares Outstanding		282			920
Class IS:
Shares Subscribed		418			8,888
Shares Issued on Distributions Reinvested		271			194
Shares Redeemed		(277	)		(998	)
Net Increase in Class IS Shares Outstanding		412			8,084

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	11.91		$	11.58		$	10.84		$	11.17		$	11.22		$	10.18
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.13			0.31			0.37			0.34			0.32			0.34
Net Realized and Unrealized Gain (Loss)		(0.23	)		0.40			0.78			(0.38	)		(0.02	)		1.11
Total from Investment Operations		(0.10	)		0.71			1.15			(0.04	)		0.30			1.45
Distributions from and/or in Excess of:
Net Investment Income		(0.12	)		(0.30	)		(0.41	)		(0.29	)		(0.35	)		(0.41	)
Net Realized Gain		(0.31	)		(0.08	)		—			—			—			—
Total Distributions		(0.43	)		(0.38	)		(0.41	)		(0.29	)		(0.35	)		(0.41	)
Net Asset Value, End of Period	$	11.38		$	11.91		$	11.58		$	10.84		$	11.17		$	11.22
Total Return(3)		(0.86	)%(9)		6.27	%		10.83	%(4)		(0.36	)%		2.79	%(5)		14.80	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	794,168		$	662,724		$	457,610		$	257,605		$	265,958		$	193,976
Ratio of Expenses Before Expense Limitation		0.60	%(10)		0.64	%		0.67	%		0.70	%		0.73	%		0.74	%
Ratio of Expenses After Expense Limitation		0.40	%(7)(10)		0.40	%(7)		0.41	%(7)		0.40	%(7)		0.40	%(7)		0.43	%(7)(8)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.40	%(7)		N/A			N/A			N/A			N/A
Ratio of Net Investment Income		2.22	%(7)(10)		2.63	%(7)		3.29	%(7)		3.09	%(7)		2.94	%(7)		3.31	%(7)(8)
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%(10)		0.02	%		0.01	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		238	%(9)		287	%		217	%		248	%		350	%		262	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  Performance was positively impacted by approximately 0.20% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 I shares would have been approximately 10.63%.

(5)  Performance was positively impacted by approximately 0.46% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 2.33%.

(6)  Performance was positively impacted by approximately 7.72% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 7.08%.

(7)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.42% for Class I shares. Prior to January 4, 2016, the maximum ratio was 0.52% for Class I shares.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Core Plus Fixed Income Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	11.93		$	11.60		$	10.85		$	11.18		$	11.23		$	10.19
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.11			0.27			0.33			0.30			0.28			0.30
Net Realized and Unrealized Gain (Loss)		(0.24	)		0.40			0.79			(0.38	)		(0.02	)		1.12
Total from Investment Operations		(0.13	)		0.67			1.12			(0.08	)		0.26			1.42
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		(0.26	)		(0.37	)		(0.25	)		(0.31	)		(0.38	)
Net Realized Gain		(0.31	)		(0.08	)		—			—			—			—
Total Distributions		(0.41	)		(0.34	)		(0.37	)		(0.25	)		(0.31	)		(0.38	)
Net Asset Value, End of Period	$	11.39		$	11.93		$	11.60		$	10.85		$	11.18		$	11.23
Total Return(3)		(1.10	)%(9)		5.91	%		10.49	%(4)		(0.70	)%		2.43	%(5)		14.31	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	129,469		$	114,387		$	92,191		$	65,647		$	60,874		$	24,071
Ratio of Expenses Before Expense Limitation		0.88	%(10)		0.92	%		0.97	%		1.00	%		1.02	%		1.15	%
Ratio of Expenses After Expense Limitation		0.72	%(7)(10)		0.74	%(7)		0.75	%(7)		0.75	%(7)		0.75	%(7)		0.76	%(7)(8)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.74	%(7)		N/A			N/A			N/A			N/A
Ratio of Net Investment Income		1.90	%(7)(10)		2.29	%(7)		2.96	%(7)		2.73	%(7)		2.58	%(7)		2.82	%(7)(8)
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%(10)		0.02	%		0.01	%		0.02	%		0.02	%		0.02	%
Portfolio Turnover Rate		238	%(9)		287	%		217	%		248	%		350	%		262	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  Performance was positively impacted by approximately 0.20% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 A shares would have been approximately 10.29%.

(5)  Performance was positively impacted by approximately 0.46% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 1.97%.

(6)  Performance was positively impacted by approximately 7.76% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 6.55%.

(7)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.77% for Class A shares. Prior to January 4, 2016, the maximum ratio was 0.87% for Class A shares.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	11.94		$	11.61		$	10.86		$	11.17		$	11.23		$	10.18
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.09			0.24			0.30			0.27			0.26			0.28
Net Realized and Unrealized Gain (Loss)		(0.22	)		0.40			0.78			(0.37	)		(0.03	)		1.12
Total from Investment Operations		(0.13	)		0.64			1.08			(0.10	)		0.23			1.40
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.23	)		(0.33	)		(0.21	)		(0.29	)		(0.35	)
Net Realized Gain		(0.31	)		(0.08	)		—			—			—			—
Total Distributions		(0.40	)		(0.31	)		(0.33	)		(0.21	)		(0.29	)		(0.35	)
Net Asset Value, End of Period	$	11.41		$	11.94		$	11.61		$	10.86		$	11.17		$	11.23
Total Return(3)		(1.14	)%(9)		5.63	%		10.12	%(4)		(0.95	)%		2.16	%(5)		14.10	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,107		$	812		$	720		$	464		$	1,138		$	841
Ratio of Expenses Before Expense Limitation		1.22	%(10)		1.37	%		1.45	%		1.41	%		1.35	%		1.82	%
Ratio of Expenses After Expense Limitation		1.00	%(7)(10)		1.00	%(7)		1.01	%(7)		1.00	%(7)		1.00	%(7)		1.03	%(7)(8)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.00	%(7)		N/A			N/A			N/A			N/A
Ratio of Net Investment Income		1.61	%(7)(10)		2.04	%(7)		2.70	%(7)		2.46	%(7)		2.37	%(7)		2.65	%(7)(8)
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%(10)		0.02	%		0.01	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		238	%(9)		287	%		217	%		248	%		350	%		262	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  Performance was positively impacted by approximately 0.20% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 L shares would have been approximately 9.92%.

(5)  Performance was positively impacted by approximately 0.46% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 1.70%.

(6)  Performance was positively impacted by approximately 7.76% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 6.34%.

(7)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.02% for Class L shares. Prior to January 4, 2016, the maximum ratio was 1.12% for Class L shares.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Core Plus Fixed Income Portfolio

	Class C
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	11.84		$	11.52		$	10.77		$	11.10		$	11.17		$	10.16
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.07			0.18			0.25			0.22			0.20			0.22
Net Realized and Unrealized Gain (Loss)		(0.23	)		0.41			0.78			(0.37	)		(0.03	)		1.12
Total from Investment Operations		(0.16	)		0.59			1.03			(0.15	)		0.17			1.34
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.19	)		(0.28	)		(0.18	)		(0.24	)		(0.33	)
Net Realized Gain		(0.31	)		(0.08	)		—			—			—			—
Total Distributions		(0.37	)		(0.27	)		(0.28	)		(0.18	)		(0.24	)		(0.33	)
Net Asset Value, End of Period	$	11.31		$	11.84		$	11.52		$	10.77		$	11.10		$	11.17
Total Return(3)		(1.36	)%(9)		5.16	%		9.70	%(4)		(1.39	)%		1.57	%(5)		13.52	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	28,004		$	25,989		$	14,684		$	6,873		$	4,890		$	3,528
Ratio of Expenses Before Expense Limitation		1.58	%(10)		1.62	%		1.68	%		1.73	%		1.74	%		2.00	%
Ratio of Expenses After Expense Limitation		1.42	%(7)(10)		1.43	%(7)		1.46	%(7)		1.50	%(7)		1.50	%(7)		1.51	%(7)(8)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.43	%(7)		N/A			N/A			N/A			N/A
Ratio of Net Investment Income		1.20	%(7)(10)		1.60	%(7)		2.23	%(7)		2.01	%(7)		1.86	%(7)		2.04	%(7)(8)
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%(10)		0.02	%		0.01	%		0.02	%		0.02	%		0.02	%
Portfolio Turnover Rate		238	%(9)		287	%		217	%		248	%		350	%		262	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  Performance was positively impacted by approximately 0.20% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 C shares would have been approximately 9.50%.

(5)  Performance was positively impacted by approximately 0.46% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 1.11%.

(6)  Performance was positively impacted by approximately 7.75% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 5.77%.

(7)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.52% for Class C shares. Prior to January 4, 2016, the maximum ratio was 1.62% for Class C shares.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Core Plus Fixed Income Portfolio

	Class IS
	Six Months Ended March 31, 2021			Year Ended September 30,						Period from June 15, 2018(1) to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			September 30, 2018
Net Asset Value, Beginning of Period	$	11.91		$	11.58		$	10.84		$	10.85
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.13			0.31			0.37			0.10
Net Realized and Unrealized Gain (Loss)		(0.23	)		0.41			0.78			(0.04	)
Total from Investment Operations		(0.10	)		0.72			1.15			0.06
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.31	)		(0.41	)		(0.07	)
Net Realized Gain		(0.31	)		(0.08	)		—			—
Total Distributions		(0.44	)		(0.39	)		(0.41	)		(0.07	)
Net Asset Value, End of Period	$	11.37		$	11.91		$	11.58		$	10.84
Total Return(3)		(0.83	)%(6)		6.24	%		10.89	%(4)		0.56	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	96,604		$	96,251		$	11		$	10
Ratio of Expenses Before Expense Limitation		0.51	%(7)		0.54	%		18.96	%		18.71	%(7)
Ratio of Expenses After Expense Limitation		0.35	%(5)(7)		0.35	%(5)		0.35	%(5)		0.35	%(5)(7)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.35	%(5)		N/A			N/A
Ratio of Net Investment Income		2.27	%(5)(7)		2.67	%(5)		3.33	%(5)		3.17	%(5)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%(7)		0.02	%		0.01	%		0.02	%(7)
Portfolio Turnover Rate		238	%(6)		287	%		217	%		248	%(6)

(1)  Commencement of Offering.

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

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

(4)  Performance was positively impacted by approximately 0.20% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 IS shares would have been approximately 10.69%.

(5)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

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

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

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option of purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

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

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

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valua-

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

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

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

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

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

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgage	$	—	$	30	$	—	$	30
Agency Fixed Rate Mortgages		—		233,736		—		233,736
Asset-Backed Securities		—		127,316		—		127,316
Collateralized Mortgage Obligations — Agency Collateral Series		—		13,670		—		13,670

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Fixed Income Securities (cont'd)
Commercial Mortgage- Backed Securities	$	—		$	49,846		$	—	$	49,846
Corporate Bonds		—			378,841			—		378,841
Mortgages — Other		—			134,870			—		134,870
Municipal Bonds		—			10,645			—		10,645
Sovereign		—			58,849			—		58,849
Supranational		—			2,040			—		2,040
Variable Rate Senior Loan Interests		—			25,369			—		25,369
Total Fixed Income Securities		—			1,035,212			—		1,035,212
Short-Term Investments
Investment Company		204,543			—			—		204,543
U.S. Treasury Securities		—			4,518			—		4,518
Total Short-Term Investments		204,543			4,518			—		209,061
Foreign Currency Forward Exchange Contracts		—			2,223			—		2,223
Futures Contracts		802			—			—		802
Total Assets		205,345			1,041,953			—		1,247,298
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(749	)		—		(749	)
Futures Contracts		(2,218	)		—			—		(2,218	)
Total Liabilities		(2,218	)		(749	)		—		(2,967	)
Total	$	203,127		$	1,041,204		$	—	$	1,244,331

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

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

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

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

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the ef-

fect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Statement of Operations.

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

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

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

eign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

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

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

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

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

Swaps: The Fund may enter into OTC swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Fund's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Fund's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional

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

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

When the Fund has an unrealized loss on a swap agreement, the Fund has instructed the custodian to pledge cash or liquid securities as collateral with a value approx-

33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

imately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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

As of March 31, 2021, the Fund did not have any open swap agreements.

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund also entered into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. In addition, the Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund than if it had not entered into such

contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized gain or loss. The Fund records 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.

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

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2021:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Appreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	2,223
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		802	(a)
Total			$	3,025
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Depreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	(749	)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(2,218	)(a)
Total			$	(2,967	)

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

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative

34

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

contract for the six months ended March 31, 2021 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(3,346	)
Interest Rate Risk	Futures Contracts		(2,703	)
Credit Risk	Swap Agreements		(897	)
Total		$	(6,946	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	1,337
Interest Rate Risk	Futures Contracts		(1,450	)
Credit Risk	Swap Agreements		134
Total		$	21

At March 31, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	2,223	$	(749	)

(b) Excludes exchange-traded derivatives.

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

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its contract counterparties for certain OTC derivatives in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that

improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received (000)(d)			Net Amount (not less than $0) (000)
Bank of America NA	$	469	$	(34	)	$	(255	)	$	180
Barclays Bank PLC		103		(16	)		—			87
BNP Paribas SA		456		(242	)		—			214
Citibank NA		18		(18	)		—			0
JPMorgan Chase Bank NA		828		(4	)		—			824
UBS AG		349		(210	)		(139	)		0
Total	$	2,223	$	(524	)	$	(394	)	$	1,305
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)(d)			Net Amount (not less than $0) (000)
Bank of America NA	$	34	$	(34	)	$	—		$	0
Barclays Bank PLC		16		(16	)		—			0
BNP Paribas SA		242		(242	)		—			0
Citibank NA		30		(18	)		—			12
JPMorgan Chase Bank NA		4		(4	)		—			0
Royal Bank Of Canada		201		—			(201	)		0
State Street Bank and Trust Co.		12		—			—			12
UBS AG		210		(210	)		—			0
Total	$	749	$	(524	)	$	(201	)	$	24

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

35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

For the six months ended March 31, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	139,020,000
Futures Contracts:
Average monthly notional value	$	291,200,000
Swap Agreements:
Average monthly notional amount	$	7,026,000

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

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

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

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	9,309	(e)	$	—	$	(9,309	)(f)(g)	$	0

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

(f) The Fund received cash collateral of approximately $8,248,000, which was subsequently invested in Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $1,244,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining contractual maturity of those transactions as of March 31, 2021:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Corporate Bonds	$	4,674	$	—	$	—	$	—	$	4,674
Sovereign		3,574		—		—		—		3,574
Total	$	8,248	$	—	$	—	$	—	$	8,248
Total Borrowings	$	8,248	$	—	$	—	$	—	$	8,248
Gross amount of recognized liabilities for securities lending transactions									$	8,248

6.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no

36

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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

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

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

and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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

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

For the six months ended March 31, 2021, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.21% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.42% for Class I shares, 0.77% for Class A shares, 1.02% for Class L shares, 1.52% for Class C shares and 0.37% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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 March 31, 2021, approximately $710,000 of advisory fees were waived and approximately $153,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agree-

37

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

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

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

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

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term in-

vestments were approximately $400,926,000 and $270,263,000, respectively. For the six months ended March 31, 2021, purchases and sales of long-term U.S. Government securities were approximately $2,143,227,000 and $2,104,892,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by approximately $95,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	160,007	$	296,282	$	251,746	$	23

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	204,543

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

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

38

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

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

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	21,516	$	2,668	$	14,473	$	—

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

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

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2020.

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	25,539	$	2,687

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 35.9%.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

39

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

L. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

40

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

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

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

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

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

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

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

41

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice   April 2021

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

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

42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

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

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How does MSIM collect my personal information?	We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?	Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

Definitions

Investment Management Affiliates	MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
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Other Important Information

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

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

44

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

45

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

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

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCPFISAN
3565511 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Corporate Bond Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	12
Statement of Operations	14
Statements of Changes in Net Assets	15
Financial Highlights	16
Notes to Financial Statements	20
Liquidity Risk Management Program	30
U.S. Customer Privacy Notice	31
Trustee and Officer Information	34

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Corporate Bond Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Corporate Bond Portfolio Class I	$	1,000.00	$	983.10	$	1,021.44	$	3.46	$	3.53		0.70	%
Corporate Bond Portfolio Class A		1,000.00		982.90		1,020.59		4.30		4.38		0.87
Corporate Bond Portfolio Class L		1,000.00		980.00		1,018.50		6.37		6.49		1.29
Corporate Bond Portfolio Class C		1,000.00		977.90		1,016.21		8.63		8.80		1.75

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (97.3%)
Corporate Bonds (97.3%)
Energy (0.3%)
Equinor ASA
3.70%, 4/6/50	$	300	$	320
Midwest Connector Capital Co. LLC
3.63%, 4/1/22 (a)(b)		375		380
				700
Finance (34.1%)
Aflac, Inc.
4.75%, 1/15/49		150		186
Air Lease Corp.,
2.88%, 1/15/26		150		156
3.75%, 6/1/26		450		481
Alexandria Real Estate Equities, Inc.
1.88%, 2/1/33		325		296
Allstate Corp. (The)
1.45%, 12/15/30		550		505
Ally Financial, Inc.
8.00%, 11/1/31		550		767
American International Group, Inc.,
3.88%, 1/15/35		350		381
3.90%, 4/1/26		450		497
AmFam Holdings, Inc.
2.81%, 3/11/31 (a)		450		447
Anthem, Inc.
2.25%, 5/15/30		350		345
Aon Corp.
2.80%, 5/15/30		500		512
Arch Capital Group Ltd.
3.64%, 6/30/50		300		301
Australia & New Zealand Banking Group Ltd.
2.57%, 11/25/35 (a)		300		282
Avolon Holdings Funding Ltd.
2.88%, 2/15/25 (a)		550		549
Banco de Credito del Peru
2.70%, 1/11/25 (a)		325		335
Banco Santander Chile
2.70%, 1/10/25 (a)		425		445
Bank of America Corp.,
Series N
2.65%, 3/11/32		1,775		1,781
2.68%, 6/19/41		1,761		1,652
3.25%, 10/21/27		475		511
6.11%, 1/29/37		200		265
Barclays PLC
2.85%, 5/7/26		1,225		1,284
Belrose Funding Trust
2.33%, 8/15/30 (a)		475		458
BNP Paribas SA,
2.82%, 1/26/41 (a)(b)		275		248
4.40%, 8/14/28 (a)		850		970

	Face Amount (000)		Value (000)
BPCE SA,
1.65%, 10/6/26 (a)	$	625	$	624
5.15%, 7/21/24 (a)		1,025		1,148
Brown & Brown, Inc.
2.38%, 3/15/31		1,000		964
Charles Schwab Corp. (The)
1.65%, 3/11/31		700		654
Chubb INA Holdings, Inc.
1.38%, 9/15/30		1,050		960
Citigroup, Inc.,
1.68%, 5/15/24		375		383
2.57%, 6/3/31		325		325
2.67%, 1/29/31		1,049		1,055
4.41%, 3/31/31		1,557		1,779
Commerzbank AG
8.13%, 9/19/23 (a)		550		630
Commonwealth Bank of Australia
3.31%, 3/11/41 (a)		525		510
Credit Agricole SA
4.13%, 1/10/27 (a)		250		280
Credit Suisse Group AG
2.59%, 9/11/25 (a)		675		700
Deutsche Bank AG
3.70%, 5/30/24		100		107
Digital Realty Trust LP
4.45%, 7/15/28		475		538
Discover Financial Services
3.95%, 11/6/24		625		682
Duke Realty LP
1.75%, 7/1/30		775		723
Equinix, Inc.
2.95%, 9/15/51		475		419
Equitable Financial Life Global Funding,
1.40%, 8/27/27 (a)		375		362
1.75%, 11/15/30 (a)		725		678
Fairfax Financial Holdings Ltd.
3.38%, 3/3/31 (a)		975		973
Federal Realty Investment Trust
3.63%, 8/1/46		225		214
Five Corners Funding Trust II
2.85%, 5/15/30 (a)		475		490
GE Capital International Funding Co., Unlimited Co.
4.42%, 11/15/35		486		557
General Motors Financial Co., Inc.
2.35%, 1/8/31		475		454
Global Atlantic Fin Co.
4.40%, 10/15/29 (a)		1,575		1,662
GLP Capital LP/GLP Financing II, Inc.
4.00%, 1/15/30		350		365
Goldman Sachs Group, Inc. (The),
1.99%, 1/27/32		1,825		1,734
MTN
4.80%, 7/8/44		275		339

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Grupo Aval Ltd.
4.38%, 2/4/30 (a)	$	625	$	632
High Street Funding Trust I
4.11%, 2/15/28 (a)		850		947
HSBC Holdings PLC,
1.59%, 5/24/27		850		837
3.97%, 5/22/30		300		325
4.00%, 3/9/26 (c)		450		449
4.38%, 11/23/26		625		697
ING Groep N.V.
4.63%, 1/6/26 (a)		1,000		1,135
Intercontinental Exchange, Inc.
1.85%, 9/15/32		950		871
Itau Unibanco Holding SA
2.90%, 1/24/23 (a)		850		869
JPMorgan Chase & Co.
1.95%, 2/4/32		4,050		3,842
JPMorgan Chase Bank NA
0.00%, 8/7/22		200		282
Kilroy Realty LP,
2.50%, 11/15/32		200		188
3.05%, 2/15/30		150		151
Kimco Realty Corp.
3.70%, 10/1/49		275		277
LeasePlan Corp.
2.88%, 10/24/24 (a)		675		710
Lloyds Banking Group PLC
3.57%, 11/7/28		425		459
Marsh & McLennan Cos., Inc.
5.88%, 8/1/33		675		888
MDC GMTN BV
4.50%, 11/7/28 (a)		425		493
MetLife, Inc.
4.55%, 3/23/30		725		846
National Australia Bank Ltd.
2.33%, 8/21/30 (a)		850		805
National Securities Clearing Corp.
1.50%, 4/23/25 (a)		450		455
Nationwide Building Society
4.30%, 3/8/29 (a)		275		305
NTT Finance Corp.,
1.59%, 4/3/28 (a)		950		928
2.07%, 4/3/31 (a)(b)		250		247
Omega Healthcare Investors, Inc.
3.25%, 4/15/33		700		672
Ooredoo International Finance Co.
2.63%, 4/8/31		520		514
Oversea-Chinese Banking Corp. Ltd.
1.83%, 9/10/30 (a)		390		387
Pine Street Trust I
4.57%, 2/15/29 (a)		375		422

	Face Amount (000)		Value (000)
Progressive Corp. (The),
3.20%, 3/26/30	$	450	$	484
4.00%, 3/1/29		75		85
Prologis LP
1.25%, 10/15/30		1,050		954
Quicken Loans LLC/Quicken Loans Co-Issuer, Inc.
3.88%, 3/1/31 (a)		290		280
Realty Income Corp.
0.75%, 3/15/26		662		638
Santander UK Group Holdings PLC
4.80%, 11/15/24		575		633
SBA Communications Corp.
3.13%, 2/1/29 (a)		320		308
Shinhan Bank Co., Ltd.
4.00%, 4/23/29 (a)		600		655
Shinhan Financial Group Co. Ltd.
1.35%, 1/10/26 (a)		460		457
Societe Generale SA
2.63%, 1/22/25 (a)		625		648
Standard Chartered PLC
0.99%, 1/12/25 (a)		1,350		1,343
SVB Financial Group
1.80%, 2/2/31		1,475		1,363
Syngenta Finance N.V.
4.89%, 4/24/25 (a)		300		321
UnitedHealth Group, Inc.
2.90%, 5/15/50		750		720
Wells Fargo & Co.,
2.41%, 10/30/25		225		235
2.57%, 2/11/31		1,350		1,358
3.07%, 4/30/41		525		516
Westpac Banking Corp.
2.67%, 11/15/35		225		214
				64,808
Industrials (54.2%)
7-Eleven, Inc.
1.80%, 2/10/31 (a)		750		701
AbbVie, Inc.
4.25%, 11/21/49		1,175		1,332
Activision Blizzard, Inc.
2.50%, 9/15/50		425		357
Adobe, Inc.
2.30%, 2/1/30		525		531
Agilent Technologies, Inc.
2.30%, 3/12/31		500		488
Air Products and Chemicals, Inc.
2.80%, 5/15/50		325		301
Akamai Technologies, Inc.
0.38%, 9/1/27		344		375
Aker BP ASA
4.75%, 6/15/24 (a)		800		821
Alaska Airlines 2020-1 Class A Pass Through Trust
4.80%, 2/15/29 (a)		312		343

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Alibaba Group Holding Ltd.
2.70%, 2/9/41	$	240	$	218
Alphabet, Inc.
1.10%, 8/15/30		475		437
Altria Group, Inc.,
3.40%, 2/4/41		900		836
3.88%, 9/16/46		175		170
Amazon.com, Inc.
2.70%, 6/3/60		750		667
American Airlines Inc/AAdvantage Loyalty IP Ltd.
5.75%, 4/20/29 (a)		290		309
Amgen, Inc.
3.15%, 2/21/40		375		373
Anheuser-Busch InBev Worldwide, Inc.,
4.35%, 6/1/40		175		198
4.38%, 4/15/38		300		341
4.50%, 6/1/50		850		966
4.60%, 4/15/48		475		545
Anthem, Inc.
2.38%, 1/15/25		275		288
Apple, Inc.
2.65%, 2/8/51		1,225		1,122
APT Pipelines Ltd.
4.20%, 3/23/25 (a)		300		327
AT&T, Inc.,
2.55%, 12/1/33 (a)		1,300		1,236
3.55%, 9/15/55 (a)		1,902		1,744
3.65%, 9/15/59 (a)		203		186
Automatic Data Processing, Inc.
1.25%, 9/1/30		850		779
Aviation Capital Group LLC
4.38%, 1/30/24 (a)		475		505
Baidu, Inc.
1.72%, 4/9/26		450		449
BAT Capital Corp.,
2.73%, 3/25/31		625		605
3.56%, 8/15/27		675		719
3.73%, 9/25/40		250		239
Berry Global, Inc.,
1.57%, 1/15/26 (a)		400		394
4.88%, 7/15/26 (a)		413		437
Boeing Co. (The),
1.17%, 2/4/23		250		253
2.95%, 2/1/30		825		823
3.25%, 2/1/35		250		243
3.95%, 8/1/59		225		217
5.15%, 5/1/30		500		577
Booking Holdings, Inc.
0.90%, 9/15/21		225		264
Boston Scientific Corp.
2.65%, 6/1/30		650		657

	Face Amount (000)		Value (000)
BP Capital Markets America, Inc.
3.38%, 2/8/61	$	200	$	186
BP Capital Markets PLC,
4.38%, 6/22/25 (c)		500		530
4.88%, 3/22/30 (c)		775		832
Braskem Netherlands Finance BV
4.50%, 1/31/30 (a)		340		342
Bristol-Myers Squibb Co.,
1.45%, 11/13/30		525		491
2.55%, 11/13/50		200		178
Broadcom, Inc.,
2.45%, 2/15/31 (a)		125		118
4.15%, 11/15/30		575		621
Burlington Northern Santa Fe LLC,
3.05%, 2/15/51		400		388
3.30%, 9/15/51		500		503
4.40%, 3/15/42		75		88
4.55%, 9/1/44		185		219
Campbell Soup Co.
3.13%, 4/24/50		200		187
Caterpillar, Inc.
3.25%, 9/19/49		225		231
Charter Communications Operating LLC/ Charter Communications Operating Capital,
2.30%, 2/1/32		350		326
3.50%, 6/1/41		275		261
3.85%, 4/1/61		525		482
4.80%, 3/1/50		200		215
5.13%, 7/1/49		375		423
5.75%, 4/1/48		75		91
Chevron Corp.
3.08%, 5/11/50		250		240
Chevron USA, Inc.
2.34%, 8/12/50		350		292
Cigna Corp.,
2.40%, 3/15/30		375		372
3.05%, 10/15/27		150		161
4.90%, 12/15/48		225		276
Cimarex Energy Co.,
3.90%, 5/15/27		475		518
4.38%, 3/15/29		425		471
Citrix Systems, Inc.
1.25%, 3/1/26		500		492
Clorox Co. (The)
1.80%, 5/15/30		525		501
Coca-Cola Femsa SAB de CV
2.75%, 1/22/30		600		604
Comcast Corp.,
1.95%, 1/15/31		800		771
2.45%, 8/15/52		1,100		943
2.80%, 1/15/51		375		345
Conagra Brands, Inc.
4.60%, 11/1/25		1,125		1,278

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
ConocoPhillips
4.88%, 10/1/47 (a)	$	250	$	304
CVS Health Corp.,
1.88%, 2/28/31		1,535		1,443
5.13%, 7/20/45		75		92
Daimler Finance North America LLC
3.30%, 5/19/25 (a)		575		618
Dell International LLC/EMC Corp.,
5.85%, 7/15/25 (a)		125		146
6.02%, 6/15/26 (a)		975		1,155
Delta Air Lines, Inc.,
Series AA
3.20%, 10/25/25		450		467
3.63%, 3/15/22		475		480
Diamond Sports Group LLC/Diamond Sports Finance Co.
6.63%, 8/15/27 (a)(b)		200		104
Diamondback Energy, Inc.,
3.13%, 3/24/31		600		600
3.25%, 12/1/26		800		844
Dollar General Corp.
4.13%, 4/3/50		325		361
DP World PLC
5.63%, 9/25/48 (a)		500		588
DuPont de Nemours, Inc.
5.32%, 11/15/38		225		283
Embraer Netherlands Finance BV
5.40%, 2/1/27		330		345
Enbridge, Inc.
3.13%, 11/15/29		150		156
Energy Transfer Operating LP
5.00%, 5/15/50		200		207
Enterprise Products Operating LLC
4.20%, 1/31/50		825		881
Equinix, Inc.
1.55%, 3/15/28		600		574
Exxon Mobil Corp.
3.45%, 4/15/51		200		202
Ford Motor Credit Co., LLC
4.39%, 1/8/26		725		763
Fortune Brands Home & Security, Inc.
4.00%, 9/21/23		475		513
Fox Corp.
5.58%, 1/25/49		350		447
Galaxy Pipeline Assets Bidco Ltd.
1.75%, 9/30/27 (a)		1,350		1,351
General Electric Co.
4.35%, 5/1/50		325		362
General Motors Co.,
6.60%, 4/1/36		325		422
6.75%, 4/1/46		150		203

	Face Amount (000)		Value (000)
General Motors Financial Co., Inc.,
3.85%, 1/5/28	$	475	$	512
4.35%, 1/17/27		175		195
Georgia-Pacific LLC
2.30%, 4/30/30 (a)		1,075		1,072
Gilead Sciences, Inc.
2.80%, 10/1/50		225		200
Glencore Funding LLC,
2.50%, 9/1/30 (a)		600		577
4.13%, 3/12/24 (a)		325		352
Global Payments, Inc.
2.90%, 5/15/30		400		409
Grifols SA
2.25%, 11/15/27 (a)	EUR	200		238
HCA, Inc.
5.25%, 6/15/49	$	525		644
Home Depot, Inc. (The),
1.38%, 3/15/31		275		255
2.38%, 3/15/51		700		602
Hyundai Capital America,
2.38%, 2/10/23 (a)		500		514
3.00%, 2/10/27 (a)		1,375		1,433
Imperial Brands Finance PLC
3.13%, 7/26/24 (a)		1,000		1,058
Intel Corp.
3.25%, 11/15/49		150		151
International Business Machines Corp.,
2.85%, 5/15/40		700		677
2.95%, 5/15/50		325		303
Inversiones CMPC SA
3.85%, 1/13/30		200		214
J2 Global, Inc.
1.75%, 11/1/26 (a)		270		318
JetBlue Pass Through Trust,
Series AA
2.75%, 11/15/33		482		486
John Deere Capital Corp.
2.45%, 1/9/30		475		483
Johnson Controls International plc/Tyco Fire & Security Finance SCA
1.75%, 9/15/30		400		375
Juniper Networks, Inc.
2.00%, 12/10/30		375		346
Keurig Dr Pepper, Inc.
3.35%, 3/15/51		500		499
Kimberly-Clark de Mexico SAB de CV
2.43%, 7/1/31 (a)		275		269
Kinder Morgan, Inc.
3.60%, 2/15/51		325		303
Kohl's Corp.
3.38%, 5/1/31		625		627
Las Vegas Sands Corp.
3.20%, 8/8/24		925		965

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Level 3 Financing, Inc.
3.40%, 3/1/27 (a)	$	625	$	663
Marathon Petroleum Corp.
4.70%, 5/1/25		1,025		1,153
Marriott International, Inc.,
Series HH
2.85%, 4/15/31		275		270
Masco Corp.
2.00%, 2/15/31		775		736
Meituan
2.13%, 10/28/25 (a)		390		389
Microsoft Corp.,
2.53%, 6/1/50		525		479
2.92%, 3/17/52		400		395
MPLX LP
5.20%, 12/1/47		100		114
Newcastle Coal Infrastructure Group Pty Ltd.
4.40%, 9/29/27 (a)		1,125		1,143
Newmont Corp.
2.25%, 10/1/30		425		414
NIKE, Inc.
3.38%, 3/27/50		500		526
Nissan Motor Co. Ltd.
3.04%, 9/15/23 (a)		1,000		1,047
NOVA Chemicals Corp.
4.88%, 6/1/24 (a)		300		314
Nutrition & Biosciences, Inc.
2.30%, 11/1/30 (a)		475		461
NVIDIA Corp.
3.50%, 4/1/50		425		450
NXP BV/NXP Funding LLC/NXP USA, Inc.
3.40%, 5/1/30 (a)		925		978
Occidental Petroleum Corp.
3.50%, 8/15/29		200		188
ONEOK, Inc.,
4.45%, 9/1/49		175		175
5.20%, 7/15/48		275		301
Oracle Corp.,
3.85%, 4/1/60		100		98
3.95%, 3/25/51		850		878
PayPal Holdings, Inc.,
2.30%, 6/1/30		559		554
2.85%, 10/1/29		525		548
Phillips 66
2.15%, 12/15/30		425		403
Pioneer Natural Resources Co.
0.25%, 5/15/25 (a)		275		432
POSCO
4.00%, 8/1/23 (a)		475		509
Prosus NV
3.68%, 1/21/30 (a)		775		801
Pure Storage, Inc.
0.13%, 4/15/23		310		344

	Face Amount (000)		Value (000)
Q-Park Holding I BV
1.50%, 3/1/25 (a)	EUR	150	$	170
Resorts World Las Vegas LLC/RWLV Capital, Inc.
4.63%, 4/16/29 (a)	$	500		505
Rockies Express Pipeline LLC
3.60%, 5/15/25 (a)		400		402
Royalty Pharma PLC,
2.20%, 9/2/30 (a)		400		382
3.55%, 9/2/50 (a)		350		334
Sabine Pass Liquefaction LLC
4.50%, 5/15/30		1,200		1,349
Saudi Arabian Oil Co.,
2.25%, 11/24/30 (a)		570		547
3.50%, 4/16/29 (a)		500		533
Shell International Finance BV
3.13%, 11/7/49		425		411
Sherwin-Williams Co. (The)
2.30%, 5/15/30		375		370
Sigma Alimentos SA de CV
4.13%, 5/2/26		225		244
Silgan Holdings, Inc.
1.40%, 4/1/26 (a)		850		833
Smithfield Foods, Inc.
3.00%, 10/15/30 (a)		475		473
Spectra Energy Partners LP
4.50%, 3/15/45		150		162
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC,
4.74%, 9/20/29 (a)		400		430
5.15%, 9/20/29 (a)		550		628
Standard Industries, Inc.
2.25%, 11/21/26 (a)	EUR	100		119
Stryker Corp.
2.90%, 6/15/50	$	325		308
Suncor Energy, Inc.
3.75%, 3/4/51		700		682
Sunoco Logistics Partners Operations LP,
3.90%, 7/15/26		275		296
4.00%, 10/1/27		750		807
T-Mobile USA, Inc.,
2.25%, 11/15/31 (a)(b)		400		381
2.88%, 2/15/31		310		300
3.60%, 11/15/60 (a)		650		625
Tencent Holdings Ltd.,
2.39%, 6/3/30 (a)		200		193
3.60%, 1/19/28 (a)		1,050		1,127
Transcontinental Gas Pipe Line Co. LLC
3.95%, 5/15/50		525		539
Transportadora de Gas Internacional SA ESP
5.55%, 11/1/28 (a)		400		455
Transurban Finance Co. Pty Ltd.
2.45%, 3/16/31 (a)		500		487

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
TSMC Global Ltd.
0.75%, 9/28/25 (a)	$	1,200	$	1,173
Twitter, Inc.
1.00%, 9/15/21		280		291
Union Pacific Corp.
2.97%, 9/16/62 (a)		425		379
Upjohn, Inc.
4.00%, 6/22/50 (a)		600		613
Verint Systems, Inc.
1.50%, 6/1/21		225		254
Verizon Communications, Inc.,
1.50%, 9/18/30		850		781
2.65%, 11/20/40		525		480
2.99%, 10/30/56 (a)		1,107		979
3.40%, 3/22/41		300		305
Viatris, Inc.
1.65%, 6/22/25 (a)		500		502
Visa, Inc.
2.70%, 4/15/40		225		221
Volkswagen Group of America Finance LLC
1.25%, 11/24/25 (a)		775		766
Vontier Corp.
2.95%, 4/1/31 (a)		725		709
Walt Disney Co. (The),
2.75%, 9/1/49		759		696
3.60%, 1/13/51		331		353
Western Digital Corp.
1.50%, 2/1/24		350		359
Western Midstream Operating LP
4.35%, 2/1/25		375		389
Williams Cos., Inc. (The)
4.85%, 3/1/48		500		556
				102,998
Utilities (8.7%)
Ameren Illinois Co.
1.55%, 11/15/30		700		653
American Electric Power Co., Inc.,
Series N
1.00%, 11/1/25		750		736
Berkshire Hathaway Energy Co.
2.85%, 5/15/51		550		494
Cleveland Electric Illuminating Co. (The)
4.55%, 11/15/30 (a)		250		278
Consorcio Transmantaro SA
4.70%, 4/16/34 (a)		400		453
Consumers Energy Co.,
2.50%, 5/1/60		325		271
3.50%, 8/1/51		175		185
DTE Electric Co.
3.95%, 3/1/49		450		504
Duke Energy Corp.
4.20%, 6/15/49		600		641

	Face Amount (000)		Value (000)
Duke Energy Indiana LLC,
2.75%, 4/1/50	$	155	$	140
Series YYY
3.25%, 10/1/49		227		224
Duke Energy Progress LLC
3.45%, 3/15/29		275		299
Entergy Arkansas LLC
3.50%, 4/1/26		458		501
Entergy Texas, Inc.
3.55%, 9/30/49		200		200
FirstEnergy Corp.,
Series C
3.40%, 3/1/50		250		220
Georgia Power Co.,
Series A
3.25%, 3/15/51		275		264
Interstate Power and Light Co.,
2.30%, 6/1/30		550		544
3.50%, 9/30/49		175		174
Mississippi Power Co.
3.95%, 3/30/28		575		635
NextEra Energy Capital Holdings, Inc.
2.25%, 6/1/30		975		955
NiSource, Inc.,
1.70%, 2/15/31		500		464
2.95%, 9/1/29		400		412
Northern States Power Co.
2.90%, 3/1/50		475		455
NRG Energy, Inc.
3.63%, 2/15/31 (a)		300		293
Oglethorpe Power Corp.
5.05%, 10/1/48		500		591
ONEOK, Inc.
3.10%, 3/15/30		500		504
Pacific Gas and Electric Co.
3.30%, 8/1/40		525		477
PacifiCorp
2.70%, 9/15/30		825		847
PECO Energy Co.
3.05%, 3/15/51		325		318
Piedmont Natural Gas Co., Inc.
2.50%, 3/15/31		475		471
Public Service Co. of Colorado,
Series 34
3.20%, 3/1/50		275		276
Southern California Edison Co.
4.00%, 4/1/47		250		258
Southern Co. (The)
4.40%, 7/1/46		850		949
Virginia Electric and Power Co.,
2.45%, 12/15/50		275		235
Series A
2.88%, 7/15/29		825		862

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Utilities (cont'd)
Xcel Energy, Inc.
2.60%, 12/1/29	$	775	$	783
				16,566
Total Fixed Income Securities (Cost $187,072)				185,072
	Shares
Short-Term Investments (2.5%)
Investment Company (1.2%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $2,279)		2,278,729		2,279
Securities held as Collateral on Loaned Securities (0.3%)
Investment Company (0.3%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $626)		625,875		626

	Face Amount (000)		Value (000)
U.S. Treasury Security (1.0%)
U.S. Treasury Bill
0.09%, 6/3/21 (d)(e) (Cost $1,865)	$	1,865	$	1,865
Total Short-Term Investments (Cost $4,770)				4,770
Total Investments (99.8%) (Cost $191,842) Including $1,469 of Securities Loaned (f)(g)				189,842
Other Assets in Excess of Liabilities (0.2%)				295
Net Assets (100.0%)			$	190,137

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

(b)  All or a portion of this security was on loan at March 31, 2021.

(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 March 31, 2021.

(d)  Rate shown is the yield to maturity at March 31, 2021.

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

(f)  Securities are available for collateral in connection with open foreign currency forward exchange contract and open futures contracts.

(g)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $5,040,000 and the aggregate gross unrealized depreciation is approximately $6,349,000, resulting in net unrealized depreciation of approximately $1,309,000.

MTN  Medium Term Note.

Foreign Currency Forward Exchange Contract:

The Fund had the following foreign currency forward exchange contract open at March 31, 2021:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (000)
JPMorgan Chase Bank NA	EUR	441	$	537	5/25/21	$	19

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2021:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 10 yr. Note		17	Jun-21	$	1,700		$	2,226		$	(18	)
U.S. Treasury 2 yr. Note		90	Jun-21		18,000			19,866			(12	)
U.S. Treasury 30 yr. Bond		101	Jun-21		10,100			15,614			(618	)
U.S. Treasury 5 yr. Note		48	Jun-21		4,800			5,923			(58	)
Short:
U.S. Treasury 10 yr. Ultra Long Bond		265	Jun-21		(26,500	)		(38,077	)		1,297
U.S. Treasury Ultra Long Bond		15	Jun-21		(1,500	)		(2,718	)		81
German Euro Bund		2	Jun-21	EUR	(200	)		(402	)		—	@
German Euro BOBL		1	Jun-21		(100	)		(159	)		(—	@)
										$	672

@    Value is less than $500.

EUR    Euro.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Industrials		54.4	%
Finance		34.3
Utilities		8.7
Other**		2.6
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2021.

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

***  Does not include open long/short futures contracts with a value of approximately $84,985,000 and net unrealized appreciation of approximately $672,000. Does not include an open foreign currency forward exchange contract with total unrealized appreciation of approximately $19,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $188,937)	$	186,937
Investment in Security of Affiliated Issuer, at Value (Cost $2,905)		2,905
Total Investments in Securities, at Value (Cost $191,842)		189,842
Foreign Currency, at Value (Cost —@)		—	@
Cash		34
Receivable for Investments Sold		1,566
Interest Receivable		1,303
Receivable for Fund Shares Sold		838
Receivable for Variation Margin on Futures Contracts		49
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		19
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		80
Total Assets		193,731
Liabilities:
Payable for Investments Purchased		2,060
Collateral on Securities Loaned, at Value		626
Payable for Fund Shares Redeemed		520
Payable for Advisory Fees		160
Payable for Professional Fees		65
Payable for Trustees' Fees and Expenses		41
Deferred Capital Gain Country Tax		23
Payable for Transfer Agency Fees — Class I		18
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Custodian Fees		18
Payable for Administration Fees		13
Payable for Sub Transfer Agency Fees — Class I		10
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Shareholder Services Fees — Class A		2
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		3
Other Liabilities		34
Total Liabilities		3,594
Net Assets	$	190,137
Net Assets Consist of:
Paid-in-Capital	$	187,693
Total Distributable Earnings		2,444
Net Assets	$	190,137

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2021 (000)
CLASS I:
Net Assets	$	165,073
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		13,018,957
Net Asset Value, Offering and Redemption Price Per Share	$	12.68
CLASS A:
Net Assets	$	20,375
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,604,764
Net Asset Value, Redemption Price Per Share	$	12.70
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.43
Maximum Offering Price Per Share	$	13.13
CLASS L:
Net Assets	$	1,559
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		122,886
Net Asset Value, Offering and Redemption Price Per Share	$	12.68
CLASS C:
Net Assets	$	3,130
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		248,495
Net Asset Value, Offering and Redemption Price Per Share	$	12.60
(1) Including: Securities on Loan, at Value:	$	1,469

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Corporate Bond Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $—@ of Foreign Taxes Withheld)	$	2,664
Income from Securities Loaned — Net		3
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		2,667
Expenses:
Advisory Fees (Note B)		384
Administration Fees (Note C)		82
Professional Fees		72
Sub Transfer Agency Fees — Class I		63
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		1
Transfer Agency Fees — Class I (Note E)		51
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Shareholder Services Fees — Class A (Note D)		17
Distribution and Shareholder Services Fees — Class L (Note D)		4
Distribution and Shareholder Services Fees — Class C (Note D)		16
Registration Fees		33
Shareholder Reporting Fees		19
Custodian Fees (Note F)		18
Pricing Fees		18
Trustees' Fees and Expenses		4
Other Expenses		9
Total Expenses		800
Reimbursement of Class Specific Expenses — Class I (Note B)		(44	)
Waiver of Shareholder Services Fees — Class A (Note D)		(7	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		747
Net Investment Income		1,920
Realized Gain (Loss):
Investments Sold		4,113
Foreign Currency Forward Exchange Contracts		(10	)
Foreign Currency Translation		(2	)
Futures Contracts		457
Swap Agreements		(14	)
Net Realized Gain		4,544
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $4)		(10,799	)
Foreign Currency Forward Exchange Contracts		2
Foreign Currency Translation		—	@
Futures Contracts		857
Swap Agreements		(52	)
Net Change in Unrealized Appreciation (Depreciation)		(9,992	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(5,448	)
Net Decrease in Net Assets Resulting from Operations	$	(3,528	)

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Corporate Bond Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,920		$	3,715
Net Realized Gain		4,544			7,235
Net Change in Unrealized Appreciation (Depreciation)		(9,992	)		735
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,528	)		11,685
Dividends and Distributions to Shareholders:
Class I		(8,552	)		(3,443	)
Class A		(562	)		(177	)
Class L		(68	)		(32	)
Class C		(127	)		(36	)
Total Dividends and Distributions to Shareholders		(9,309	)		(3,688	)
Capital Share Transactions:(1)
Class I:
Subscribed		52,853			76,817
Distributions Reinvested		8,135			3,197
Redeemed		(66,358	)		(27,783	)
Class A:
Subscribed		12,999			7,693
Distributions Reinvested		562			176
Redeemed		(3,063	)		(3,877	)
Class L:
Distributions Reinvested		68			32
Redeemed		(137	)		(67	)
Class C:
Subscribed		755			2,884
Distributions Reinvested		125			36
Redeemed		(791	)		(2,601	)
Net Increase in Net Assets Resulting from Capital Share Transactions		5,148			56,507
Total Increase (Decrease) in Net Assets		(7,689	)		64,504
Net Assets:
Beginning of Period		197,826			133,322
End of Period	$	190,137		$	197,826
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,981			5,836
Shares Issued on Distributions Reinvested		613			246
Shares Redeemed		(5,073	)		(2,162	)
Net Increase (Decrease) in Class I Shares Outstanding		(479	)		3,920
Class A:
Shares Subscribed		996			582
Shares Issued on Distributions Reinvested		42			14
Shares Redeemed		(233	)		(296	)
Net Increase in Class A Shares Outstanding		805			300
Class L:
Shares Issued on Distributions Reinvested		5			2
Shares Redeemed		(10	)		(5	)
Net Decrease in Class L Shares Outstanding		(5	)		(3	)
Class C:
Shares Subscribed		59			221
Shares Issued on Distributions Reinvested		9			3
Shares Redeemed		(60	)		(204	)
Net Increase in Class C Shares Outstanding		8			20

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Corporate Bond Portfolio

	Class I
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	13.49		$	12.78		$	11.80		$	12.32		$	12.33		$	10.80
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.13			0.32			0.40			0.39			0.34			0.37
Net Realized and Unrealized Gain (Loss)		(0.33	)		0.72			1.04			(0.58	)		0.01			1.51
Total from Investment Operations		(0.20	)		1.04			1.44			(0.19	)		0.35			1.88
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.33	)		(0.46	)		(0.33	)		(0.36	)		(0.35	)
Net Realized Gain		(0.48	)		—			—			—			—			—
Total Distributions		(0.61	)		(0.33	)		(0.46	)		(0.33	)		(0.36	)		(0.35	)
Net Asset Value, End of Period	$	12.68		$	13.49		$	12.78		$	11.80		$	12.32		$	12.33
Total Return(3)		(1.69	)%(8)		8.19	%		12.64	%		(1.60	)%		2.95	%(4)		17.79	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	165,073		$	182,070		$	122,450		$	108,809		$	37,993		$	31,873
Ratio of Expenses Before Expense Limitation		0.75	%(9)		0.86	%		1.01	%		0.97	%		1.26	%		1.28	%
Ratio of Expenses After Expense Limitation		0.70	%(6)(9)		0.70	%(6)		0.70	%(6)		0.70	%(6)		0.70	%(6)		0.69	%(6)
Ratio of Net Investment Income		1.91	%(6)(9)		2.49	%(6)		3.34	%(6)		3.29	%(6)		2.85	%(6)		3.28	%(6)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(7)(9)		0.00	%(7)		0.00	%(7)		0.00	%(7)		0.00	%(7)		0.01	%
Portfolio Turnover Rate		73	%(8)		133	%		64	%		37	%		33	%		41	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  Performance was positively impacted by approximately 0.85% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 2.10%.

(5)  Performance was positively impacted by approximately 9.01% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 8.78%.

(6)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7)  Amount is less than 0.005%.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Corporate Bond Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	13.50		$	12.80		$	11.81		$	12.32		$	12.34		$	10.81
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.11			0.29			0.37			0.33			0.30			0.32
Net Realized and Unrealized Gain (Loss)		(0.32	)		0.70			1.04			(0.56	)		(0.00	)(3)		1.53
Total from Investment Operations		(0.21	)		0.99			1.41			(0.23	)		0.30			1.85
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.29	)		(0.42	)		(0.28	)		(0.32	)		(0.32	)
Net Realized Gain		(0.48	)		—			—			—			—			—
Total Distributions		(0.59	)		(0.29	)		(0.42	)		(0.28	)		(0.32	)		(0.32	)
Net Asset Value, End of Period	$	12.70		$	13.50		$	12.80		$	11.81		$	12.32		$	12.34
Total Return(4)		(1.71	)%(9)		7.88	%		12.25	%		(1.87	)%		2.54	%(5)		17.41	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	20,375		$	10,807		$	6,400		$	4,496		$	7,911		$	6,916
Ratio of Expenses Before Expense Limitation		0.97	%(10)		1.10	%		1.21	%		1.29	%		1.62	%		1.51	%
Ratio of Expenses After Expense Limitation		0.87	%(7)(10)		0.99	%(7)		0.99	%(7)		1.01	%(7)		1.05	%(7)		0.99	%(7)
Ratio of Net Investment Income		1.74	%(7)(10)		2.20	%(7)		3.04	%(7)		2.78	%(7)		2.50	%(7)		2.78	%(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(8)(10)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.01	%
Portfolio Turnover Rate		73	%(9)		133	%		64	%		37	%		33	%		41	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

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

(5)  Performance was positively impacted by approximately 0.85% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 1.69%.

(6)  Performance was positively impacted by approximately 8.97% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 8.44%.

(7)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Corporate Bond Portfolio

	Class L
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	13.49		$	12.79		$	11.79		$	12.30		$	12.32		$	10.79
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.09			0.24			0.32			0.29			0.26			0.30
Net Realized and Unrealized Gain (Loss)		(0.33	)		0.70			1.04			(0.56	)		(0.00	)(3)		1.51
Total from Investment Operations		(0.24	)		0.94			1.36			(0.27	)		0.26			1.81
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.24	)		(0.36	)		(0.24	)		(0.28	)		(0.28	)
Net Realized Gain		(0.48	)		—			—			—			—			—
Total Distributions		(0.57	)		(0.24	)		(0.36	)		(0.24	)		(0.28	)		(0.28	)
Net Asset Value, End of Period	$	12.68		$	13.49		$	12.79		$	11.79		$	12.30		$	12.32
Total Return(4)		(2.00	)%(9)		7.47	%		11.82	%		(2.19	)%		2.20	%(5)		17.06	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,559		$	1,727		$	1,671		$	1,499		$	1,749		$	2,151
Ratio of Expenses Before Expense Limitation		1.30	%(10)		1.39	%		1.49	%		1.56	%		1.80	%		1.75	%
Ratio of Expenses After Expense Limitation		1.29	%(7)(10)		1.38	%(7)		1.38	%(7)		1.38	%(7)		1.34	%(7)		1.33	%(7)
Ratio of Net Investment Income		1.30	%(7)(10)		1.84	%(7)		2.67	%(7)		2.45	%(7)		2.20	%(7)		2.64	%(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(8)(10)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.01	%		0.01	%
Portfolio Turnover Rate		73	%(9)		133	%		64	%		37	%		33	%		41	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

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

(5)  Performance was positively impacted by approximately 0.84% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 1.36%.

(6)  Performance was positively impacted by approximately 9.05% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 8.01%.

(7)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Corporate Bond Portfolio

	Class C
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	13.41		$	12.71		$	11.72		$	12.25		$	12.27		$	10.77
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.06			0.18			0.27			0.25			0.21			0.22
Net Realized and Unrealized Gain (Loss)		(0.33	)		0.71			1.03			(0.57	)		0.00	(3)		1.53
Total from Investment Operations		(0.27	)		0.89			1.30			(0.32	)		0.21			1.75
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.19	)		(0.31	)		(0.21	)		(0.23	)		(0.25	)
Net Realized Gain		(0.48	)		—			—			—			—			—
Total Distributions		(0.54	)		(0.19	)		(0.31	)		(0.21	)		(0.23	)		(0.25	)
Net Asset Value, End of Period	$	12.60		$	13.41		$	12.71		$	11.72		$	12.25		$	12.27
Total Return(4)		(2.21	)%(9)		7.09	%		11.34	%		(2.64	)%		1.81	%(5)		16.47	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,130		$	3,222		$	2,801		$	2,074		$	1,084		$	126
Ratio of Expenses Before Expense Limitation		1.76	%(10)		1.90	%		2.01	%		2.15	%		2.82	%		4.45	%
Ratio of Expenses After Expense Limitation		1.75	%(7)(10)		1.80	%(7)		1.80	%(7)		1.80	%(7)		1.80	%(7)		1.79	%(7)
Ratio of Net Investment Income		0.86	%(7)(10)		1.42	%(7)		2.24	%(7)		2.10	%(7)		1.71	%(7)		1.90	%(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(8)(10)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.01	%
Portfolio Turnover Rate		73	%(9)		133	%		64	%		37	%		33	%		41	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

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

(5)  Performance was positively impacted by approximately 0.85% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 0.96%.

(6)  Performance was positively impacted by approximately 8.85% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 7.62%.

(7)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

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

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

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option to purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

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

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the

"Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

approved by the Trustees. Under procedures approved by the Trustees, the Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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

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

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

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

suer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Corporate Bonds	$	—		$	185,072	$	—	$	185,072
Short-Term Investments
Investment Company		2,905			—		—		2,905
U.S. Treasury Security		—			1,865		—		1,865
Total Short-Term Investments		2,905			1,865		—		4,770
Foreign Currency Forward Exchange Contract		—			19		—		19
Futures Contracts		1,378			—		—		1,378
Total Assets		4,283			186,956		—		191,239
Liabilities:
Futures Contracts		(706	)		—		—		(706	)
Total	$	3,577		$	186,956	$	—	$	190,533

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

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

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

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

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition of foreign currency, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Statement of Operations.

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

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result,

an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

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

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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

rency 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 the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

Swaps: The Fund may enter into OTC swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Fund's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional

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

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

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

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

As of March 31, 2021, the Fund did not have any open swap agreements.

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

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2021:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contract	Unrealized Appreciation on Foreign Currency Forward Exchange Contract	Currency Risk	$	19
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		1,378	(a)
Total			$	1,397
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk	$	(706	)(a)

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

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2021 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(10	)
Interest Rate Risk	Futures Contracts		457
Credit Risk	Swap Agreements		(14	)
	Total	$	433
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk Foreign Currency Forward	Exchange Contracts	$	2
Interest Rate Risk	Futures Contracts		857
Credit Risk	Swap Agreements		(52	)
	Total	$	807

At March 31, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contract	$	19	$	—

(b) Excludes exchange-traded derivatives.

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

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

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received (000)		Net Amount (not less than $0) (000)
JPMorgan Chase Bank NA	$	19	$	—	$	—	$	19

For the six months ended March 31, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	1,132,000
Futures Contracts:
Average monthly notional value	$	101,264,000
Swap Agreements:
Average monthly notional amount	$	612,000

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

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

than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

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

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	1,469	(d)	$	—	$	(1,469	)(e)(f)	$	0

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

(e) The Fund received cash collateral of approximately $626,000 which was subsequently invested in Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $874,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining contractual maturity of those transactions as of March 31, 2021:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Corporate Bonds	$	626	$	—	$	—	$	—	$	626
Total Borrowings	$	626	$	—	$	—	$	—	$	626
Gross amount of recognized liabilities for securities lending transactions									$	626

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

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

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.70% for Class I shares, 1.05% for Class A shares, 1.52% for Class L shares and 1.80% for Class C shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until

such time as the 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 March 31, 2021, approximately $44,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares. The Distributor has agreed to waive the 12b-1 fees on Class A shares of the Fund to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. For the six months ended March 31, 2021, this waiver amounted to approximately $7,000.

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

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

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

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

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $147,820,000 and $145,480,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	9,032	$	67,637	$	73,764	$	—	@

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	2,905

@ Amount is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

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

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

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

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From: Ordinary Income (000)		2019 Distributions Paid From: Ordinary Income (000)
$	3,688	$	4,571

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

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

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2020.

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	2,479	$	4,127

During the year ended September 30, 2020, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $1,265,000.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The

interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 30.9%.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

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

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

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

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

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

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

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice   April 2021

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

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

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

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

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

Definitions

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

Other Important Information

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

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

33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

34

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

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

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCBSAN
3565542 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Discovery Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	7
Statement of Operations	9
Statements of Changes in Net Assets	10
Financial Highlights	12
Notes to Financial Statements	17
Liquidity Risk Management Program	29
U.S. Customer Privacy Notice	30
Trustee and Officer Information	33

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Discovery Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Discovery Portfolio Class I	$	1,000.00	$	1,191.70	$	1,021.64	$	3.61	$	3.33		0.66	%
Discovery Portfolio Class A		1,000.00		1,190.20		1,020.34		5.02		4.63		0.92
Discovery Portfolio Class L		1,000.00		1,187.00		1,017.85		7.74		7.14		1.42
Discovery Portfolio Class C		1,000.00		1,185.90		1,016.70		8.99		8.30		1.65
Discovery Portfolio Class IS		1,000.00		1,191.90		1,021.99		3.22		2.97		0.59

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Discovery Portfolio

	Shares		Value (000)
Common Stocks (90.0%)
Aerospace & Defense (2.7%)
Axon Enterprise, Inc. (a)		938,423	$	133,650
Biotechnology (3.0%)
Alnylam Pharmaceuticals, Inc. (a)		187,428		26,463
Exact Sciences Corp. (a)		414,023		54,560
Moderna, Inc. (a)		525,105		68,762
				149,785
Diversified Holding Companies (0.7%)
BowX Acquisition Corp., Class A, SPAC		568,869		6,645
Soaring Eagle Acquisition Corp., SPAC		3,035,505		30,719
				37,364
Entertainment (5.0%)
ROBLOX Corp., Class A (a)		426,618		27,658
Roku, Inc. (a)		222,621		72,523
Skillz, Inc. (a)(b)		7,983,161		151,999
				252,180
Health Care Equipment & Supplies (2.6%)
DexCom, Inc. (a)		224,921		80,835
Penumbra, Inc. (a)		188,651		51,045
				131,880
Health Care Providers & Services (4.3%)
Covetrus, Inc. (a)		4,438,575		133,024
Guardant Health, Inc. (a)		360,380		55,012
Oak Street Health, Inc. (a)		554,490		30,092
				218,128
Health Care Technology (5.9%)
Agilon Health Topco, Inc. (a)(c)(d) (acquisition cost — $2,693; acquired 11/7/18)		7,122		7,745
GoodRx Holdings, Inc., Class A (a)		1,311,248		51,165
Teladoc Health, Inc. (a)		274,920		49,967
Veeva Systems, Inc., Class A (a)		722,493		188,744
				297,621
Information Technology Services (17.2%)
Affirm Holdings, Inc. (a)		322,617		22,815
Fastly, Inc., Class A (a)		2,939,413		197,764
MongoDB, Inc. (a)		459,185		122,800
Okta, Inc. (a)		644,702		142,112
Snowflake, Inc., Class A (a)		554,958		127,241
Twilio, Inc., Class A (a)		750,162		255,625
				868,357
Interactive Media & Services (13.8%)
Pinterest, Inc., Class A (a)		3,838,257		284,146
Twitter, Inc. (a)		4,213,135		268,082
Zillow Group, Inc., Class C (a)		587,052		76,105
ZoomInfo Technologies, Inc., Class A (a)		1,385,045		67,729
				696,062

	Shares		Value (000)
Internet & Direct Marketing Retail (13.3%)
Chewy, Inc., Class A (a)		538,258	$	45,596
ContextLogic, Inc., Class A (a)(b)		3,937,094		62,206
DoorDash, Inc., Class A (a)		1,327,357		174,056
Farfetch Ltd., Class A (a)		2,259,844		119,817
Overstock.com, Inc. (a)		909,911		60,291
Stitch Fix, Inc., Class A (a)		1,170,406		57,982
Wayfair, Inc., Class A (a)		475,889		149,786
				669,734
Leisure Products (1.2%)
Peloton Interactive, Inc., Class A (a)		516,499		58,075
Life Sciences Tools & Services (2.1%)
10X Genomics, Inc., Class A (a)		297,137		53,782
NanoString Technologies, Inc. (a)		804,747		52,880
				106,662
Metals & Mining (0.8%)
MP Materials Corp. (a)(b)		723,671		26,016
Royal Gold, Inc.		142,673		15,354
				41,370
Oil, Gas & Consumable Fuels (0.7%)
Texas Pacific Land Corp. (b)		21,360		33,950
Pharmaceuticals (3.4%)
Royalty Pharma PLC, Class A (United Kingdom)		3,927,344		171,311
Real Estate Management & Development (1.6%)
Opendoor Technologies, Inc. (a)(b)		1,050,777		22,266
Redfin Corp. (a)		849,774		56,586
				78,852
Software (8.1%)
Appian Corp. (a)		133,243		17,715
Cloudflare, Inc., Class A (a)		1,076,474		75,633
Coupa Software, Inc. (a)		392,021		99,761
MicroStrategy, Inc., Class A (a)		42,253		28,681
Nuance Communications, Inc. (a)		1,196,294		52,206
Qualtrics International, Inc., Class A (a)		806,670		26,548
Trade Desk, Inc. (The), Class A (a)		118,876		77,467
Unity Software, Inc. (a)		283,024		28,390
				406,401
Specialty Retail (3.6%)
Carvana Co. (a)		699,042		183,429
Total Common Stocks (Cost $3,843,409)				4,534,811
Preferred Stocks (0.1%)
Internet & Direct Marketing Retail (0.1%)
Overstock.com, Inc. Series A-1 (a) (Cost $337)		44,025		3,073
Short-Term Investments (12.1%)
Securities held as Collateral on Loaned Securities (1.9%)
Investment Company (1.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		77,740,917		77,741

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Discovery Portfolio

	Face Amount (000)		Value (000)
Repurchase Agreements (0.4%)
HSBC Securities USA, Inc., (0.01%, dated 3/31/21, due 4/1/21; proceeds $4,026; fully collateralized by U.S. Government obligations; 1.75% - 2.13% due 6/30/21 - 5/15/22; valued at $4,107)	$	4,026	$	4,026
Merrill Lynch & Co., Inc., (0.01%, dated 3/31/21, due 4/1/21; proceeds $16,937; fully collateralized by U.S. Government obligations; 0.38% - 2.88% due 9/30/23 - 4/30/25; valued at $17,275)		16,937		16,937
				20,963
Total Securities held as Collateral on Loaned Securities (Cost $98,704)				98,704

	Shares		Value (000)
Investment Company (10.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $511,892)		511,891,516	$	511,892
Total Short-Term Investments (Cost $610,596)				610,596
Total Investments Excluding Purchased Options (102.2%) (Cost $4,454,342)				5,148,480
Total Purchased Options Outstanding (0.1%) (Cost $19,678)				7,489
Total Investments (102.3%) (Cost $4,474,020) Including $126,788 of Securities Loaned (e)(f)				5,155,969
Liabilities in Excess of Other Assets (–2.3%)				(116,426	)
Net Assets (100.0%)			$	5,039,543

The Fund had the following Derivative Contracts - PIPE open at March 31, 2021.

Counterparty	Referenced Obligation	Notional Amount		Settlement Date	Unrealized Appreciation (Depreciation) (000)			% of Net Assets
Good Works Acquisition Corp.	Cipher Mining (a)(c)(d)(g)(i)	$	26,838,570	05/31/21	$	2,228			0.04	%
Thoma Bravo Advantage	IronSource Ltd. (a)(c)(d)(h)(i)		49,802,000	05/31/21		(1,693	)		(0.03	)
					$	535			0.01	%

(a)  Non-income producing security.

(b)  All or a portion of this security was on loan at March 31, 2021.

(c)  Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at March 31, 2021 amounts to approximately $8,280,000 and represents 0.2% of net assets.

(d)  At March 31, 2021, the Fund held a fair valued security valued at approximately $8,280,000, representing 0.2% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Trust's (as defined herein) Trustees.

(e)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $890,377,000 and the aggregate gross unrealized depreciation is approximately $207,893,000, resulting in net unrealized appreciation of approximately $682,484,000.

(f)  Securities are available for collateral in connection with securities purchased on a forward commitment basis.

(g)  Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 2,683,857 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Cipher Mining, and Good Works Acquisition Corp., a special purpose acquisition company (SPAC). The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Good Works Acquisition Corp., and Cipher Mining, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Good Works Acquisition Corp., and Cipher Mining. The investment is restricted from resale until the settlement date.

(h)  Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 4,980,200 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between IronSource Ltd., and Thoma Bravo Advantage, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both IronSource Ltd., and Thoma Bravo Advantage, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to IronSource Ltd., and Thoma Bravo Advantage. The investment is restricted from resale until the settlement date.

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

SPAC  Special Purpose Acquisition Company.

PIPE  Private Investment in Public Equity.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Discovery Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at March 31, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
BNP Paribas	USD/CNH	CNH	7.99	Sep-21		451,174,389		451,174	$	128	$	2,732	$	(2,604	)
BNP Paribas	USD/CNH	CNH	7.45	Jan-22		890,518,565		890,519		2,647		4,754		(2,107	)
BNP Paribas	USD/CNH	CNH	7.64	Nov-21		655,329,970		655,330		872		3,559		(2,687	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		986,402,861		986,403		3,787		4,899		(1,112	)
Royal Bank of Scotland	USD/CNH	CNH	8.06	Jul-21		437,306,829		437,307		54		2,319		(2,265	)
Royal Bank of Scotland	USD/CNH	CNH	8.48	May-21		226,595,778		226,596		1		1,415		(1,414	)
									$	7,489	$	19,678	$	(12,189	)

CNH  —  Chinese Yuan Renminbi Offshore

USD  —  United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		26.7	%
Information Technology Services		17.2
Interactive Media & Services		13.8
Internet & Direct Marketing Retail		13.3
Short-Term Investments		10.1
Software		8.0
Health Care Technology		5.9
Entertainment		5.0
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2021.

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

***  Does not include open PIPE contracts with net unrealized appreciation of approximately $535,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Discovery Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $3,884,387)	$	4,566,336
Investment in Security of Affiliated Issuer, at Value (Cost $589,633)		589,633
Total Investments in Securities, at Value (Cost $4,474,020)		5,155,969
Derivative Contract — PIPE, at value		2,228
Foreign Currency, at Value (Cost $1)		1
Cash from Securities Lending		184
Receivable for Fund Shares Sold		14,671
Receivable from Securities Lending Income		356
Dividends Receivable		43
Receivable from Affiliate		4
Other Assets		1,211
Total Assets		5,174,667
Liabilities:
Derivative Contract — PIPE, at value		1,693
Collateral on Securities Loaned, at Value		98,888
Payable for Investments Purchased		13,486
Payable for Fund Shares Redeemed		9,480
Payable for Advisory Fees		6,659
Due to Broker		3,725
Payable for Shareholder Services Fees — Class A		538
Payable for Distribution and Shareholder Services Fees — Class L		10
Payable for Distribution and Shareholder Services Fees — Class C		55
Payable for Administration Fees		361
Payable for Professional Fees		67
Payable for Trustees' Fees and Expenses		40
Payable for Custodian Fees		18
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		3
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class IS		1
Payable for Sub Transfer Agency Fees — Class L		1
Other Liabilities		98
Total Liabilities		135,124
Net Assets	$	5,039,543
Net Assets Consist of:
Paid-in-Capital	$	3,619,556
Total Distributable Earnings		1,419,987
Net Assets	$	5,039,543

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Discovery Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2021 (000)
CLASS I:
Net Assets	$	1,999,500
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		47,275,128
Net Asset Value, Offering and Redemption Price Per Share	$	42.29
CLASS A:
Net Assets	$	2,388,404
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		73,738,330
Net Asset Value, Redemption Price Per Share	$	32.39
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.79
Maximum Offering Price Per Share	$	34.18
CLASS L:
Net Assets	$	15,579
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		570,967
Net Asset Value, Offering and Redemption Price Per Share	$	27.28
CLASS C:
Net Assets	$	63,949
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,071,419
Net Asset Value, Offering and Redemption Price Per Share	$	30.87
CLASS IS:
Net Assets	$	572,111
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		13,324,418
Net Asset Value, Offering and Redemption Price Per Share	$	42.94
(1) Including: Securities on Loan, at Value:	$	126,788

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Discovery Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Income from Securities Loaned — Net	$	2,108
Dividends from Securities of Unaffiliated Issuers		1,576
Dividends from Security of Affiliated Issuer (Note G)		21
Total Investment Income		3,705
Expenses:
Advisory Fees (Note B)		11,753
Shareholder Services Fees — Class A (Note D)		2,718
Distribution and Shareholder Services Fees — Class L (Note D)		61
Distribution and Shareholder Services Fees — Class C (Note D)		268
Sub Transfer Agency Fees — Class I		677
Sub Transfer Agency Fees — Class A		838
Sub Transfer Agency Fees — Class L		4
Sub Transfer Agency Fees — Class C		13
Administration Fees (Note C)		1,880
Registration Fees		258
Shareholder Reporting Fees		71
Professional Fees		67
Transfer Agency Fees — Class I (Note E)		15
Transfer Agency Fees — Class A (Note E)		21
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class IS (Note E)		3
Custodian Fees (Note F)		30
Trustees' Fees and Expenses		23
Pricing Fees		2
Other Expenses		30
Total Expenses		18,736
Rebate from Morgan Stanley Affiliate (Note G)		(197	)
Net Expenses		18,539
Net Investment Loss		(14,834	)
Realized Gain (Loss):
Investments Sold		885,665
Foreign Currency Translation		(63	)
Net Realized Gain		885,602
Change in Unrealized Appreciation (Depreciation):
Investments		(316,296	)
Derivative Contracts — PIPE		535
Foreign Currency Translation		—	@
Net Change in Unrealized Appreciation (Depreciation)		(315,761	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		569,841
Net Increase in Net Assets Resulting from Operations	$	555,007

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Discovery Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(14,834	)	$	(9,402	)
Net Realized Gain		885,602			256,443
Net Change in Unrealized Appreciation (Depreciation)		(315,761	)		953,720
Net Increase in Net Assets Resulting from Operations		555,007			1,200,761
Dividends and Distributions to Shareholders:
Class I		(135,191	)		(37,434	)
Class A		(187,887	)		(47,691	)
Class L		(1,715	)		(1,239	)
Class C		(4,704	)		(1,011	)
Class IS		(35,866	)		(14,656	)
Total Dividends and Distributions to Shareholders		(365,363	)		(102,031	)
Capital Share Transactions:(1)
Class I:
Subscribed		1,098,996			724,696
Distributions Reinvested		133,437			37,394
Redeemed		(640,568	)		(344,262	)
Class A:
Subscribed		1,589,085			894,159
Distributions Reinvested		186,773			47,483
Redeemed		(824,381	)		(380,841	)
Class L:
Exchanged		107			117
Distributions Reinvested		1,708			1,231
Redeemed		(1,236	)		(1,927	)
Class C:
Subscribed		32,887			18,597
Distributions Reinvested		4,528			1,003
Redeemed		(7,498	)		(2,622	)
Class IS:
Subscribed		218,419			138,795
Distributions Reinvested		35,841			14,656
Redeemed		(66,708	)		(82,016	)
Net Increase in Net Assets Resulting from Capital Share Transactions		1,761,390			1,066,463
Total Increase in Net Assets		1,951,034			2,165,193
Net Assets:
Beginning of Period		3,088,509			923,316
End of Period	$	5,039,543		$	3,088,509

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Discovery Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		25,122			26,530
Shares Issued on Distributions Reinvested		3,083			1,994
Shares Redeemed		(14,520	)		(13,746	)
Net Increase in Class I Shares Outstanding		13,685			14,778
Class A:
Shares Subscribed		45,548			37,384
Shares Issued on Distributions Reinvested		5,631			3,226
Shares Redeemed		(24,361	)		(18,715	)
Net Increase in Class A Shares Outstanding		26,818			21,895
Class L:
Shares Exchanged		4			6
Shares Issued on Distributions Reinvested		61			97
Shares Redeemed		(46	)		(123	)
Net Increase (Decrease) in Class L Shares Outstanding		19			(20	)
Class C:
Shares Subscribed		980			833
Shares Issued on Distributions Reinvested		143			71
Shares Redeemed		(227	)		(145	)
Net Increase in Class C Shares Outstanding		896			759
Class IS:
Shares Subscribed		4,857			4,897
Shares Issued on Distributions Reinvested		816			772
Shares Redeemed		(1,494	)		(3,009	)
Net Increase in Class IS Shares Outstanding		4,179			2,660

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Discovery Portfolio

	Class I
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	38.19		$	19.92		$	23.30		$	22.30		$	31.85		$	35.96
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		(0.11	)		(0.15	)		(0.05	)		(0.07	)		0.05			0.03
Net Realized and Unrealized Gain		7.51			20.73			0.35			7.99			1.99			0.18
Total from Investment Operations		7.40			20.58			0.30			7.92			2.04			0.21
Distributions from and/or in Excess of:
Net Realized Gain		(3.30	)		(2.31	)		(3.68	)		(6.92	)		(11.59	)		(4.32	)
Net Asset Value, End of Period	$	42.29		$	38.19		$	19.92		$	23.30		$	22.30		$	31.85
Total Return(3)		19.17	%(6)		115.34	%		4.71	%		47.85	%		16.16	%		0.19	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,999,500		$	1,282,828		$	374,736		$	304,179		$	242,140		$	563,397
Ratio of Expenses Before Expense Limitation		0.67	%(7)		0.74	%		0.74	%		0.72	%		0.72	%		0.74	%
Ratio of Expenses After Expense Limitation		0.66	%(4)(7)		0.73	%(4)		0.73	%(4)		0.71	%(4)		0.72	%(4)		0.73	%(4)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.73	%(4)		0.73	%(4)		0.71	%(4)		0.71	%(4)		N/A
Ratio of Net Investment Income (Loss)		(0.51	)%(4)(7)		(0.57	)%(4)		(0.27	)%(4)		(0.35	)%(4)		0.21	%(4)		0.09	%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(7)		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%(5)
Portfolio Turnover Rate		72	%(6)		65	%		116	%		86	%		59	%		23	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation would have been 0.005% higher and the Ratio of Net Investment Income would have been 0.005% lower had the custodian not reimbursed the Fund.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (Loss) reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Discovery Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	29.92		$	16.12		$	19.71		$	19.92		$	29.86		$	34.06
Income (Loss) from Investment Operations:
Net Investment Loss(2)		(0.13	)		(0.17	)		(0.09	)		(0.11	)		(0.03	)		(0.05	)
Net Realized and Unrealized Gain		5.90			16.28			0.18			6.82			1.68			0.17
Total from Investment Operations		5.77			16.11			0.09			6.71			1.65			0.12
Distributions from and/or in Excess of:
Net Realized Gain		(3.30	)		(2.31	)		(3.68	)		(6.92	)		(11.59	)		(4.32	)
Net Asset Value, End of Period	$	32.39		$	29.92		$	16.12		$	19.71		$	19.92		$	29.86
Total Return(3)		19.02	%(6)		114.87	%		4.40	%		47.36	%		15.85	%		(0.12	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,388,404		$	1,403,660		$	403,285		$	304,921		$	289,123		$	480,488
Ratio of Expenses Before Expense Limitation		0.93	%(7)		1.01	%		1.00	%		1.02	%		1.01	%		1.00	%
Ratio of Expenses After Expense Limitation		0.92	%(4)(7)		1.00	%(4)		0.99	%(4)		1.01	%(4)		1.01	%(4)		0.99	%(4)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.00	%(4)		0.99	%(4)		1.01	%(4)		1.00	%(4)		N/A
Ratio of Net Investment Loss		(0.76	)%(4)(7)		(0.82	)%(4)		(0.52	)%(4)		(0.65	)%(4)		(0.17	)%(4)		(0.17	)%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(7)		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%(5)
Portfolio Turnover Rate		72	%(6)		65	%		116	%		86	%		59	%		23	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Loss would have been less than 0.005% lower had the custodian not reimbursed the Fund.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Discovery Portfolio

	Class L
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	25.69		$	14.21		$	17.96		$	18.79		$	29.01		$	33.39
Income (Loss) from Investment Operations:
Net Investment Loss(2)		(0.18	)		(0.21	)		(0.15	)		(0.18	)		(0.16	)		(0.22	)
Net Realized and Unrealized Gain		5.07			14.00			0.08			6.27			1.53			0.16
Total from Investment Operations		4.89			13.79			(0.07	)		6.09			1.37			(0.06	)
Distributions from and/or in Excess of:
Net Realized Gain		(3.30	)		(2.31	)		(3.68	)		(6.92	)		(11.59	)		(4.32	)
Net Asset Value, End of Period	$	27.28		$	25.69		$	14.21		$	17.96		$	18.79		$	29.01
Total Return(3)		18.70	%(6)		113.70	%		3.90	%		46.73	%		15.07	%		(0.73	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15,579		$	14,173		$	8,124		$	9,572		$	8,091		$	9,874
Ratio of Expenses Before Expense Limitation		1.42	(7)		1.50	%		1.51	%		1.51	%		1.64	%		1.61	%
Ratio of Expenses After Expense Limitation		1.42	%(4)(7)		1.49	%(4)		1.50	%(4)		1.50	%(4)		1.63	%(4)		1.60	%(4)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.49	%(4)		1.50	%(4)		1.50	%(4)		1.63	%(4)		N/A
Ratio of Net Investment Loss		(1.26	)%(4)(7)		(1.27	)%(4)		(1.06	)%(4)		(1.15	)%(4)		(0.85	)%(4)		(0.76	)%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(7)		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%(5)
Portfolio Turnover Rate		72	%(6)		65	%		116	%		86	%		59	%		23	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Loss would have been less than 0.005% lower had the custodian not reimbursed the Fund.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Discovery Portfolio

	Class C
	Six Months Ended March 31, 2021			Year Ended September 30,									Period from May 31, 2017(1) to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			September 30, 2017
Net Asset Value, Beginning of Period	$	28.74		$	15.67		$	19.42		$	19.85		$	19.34
Income (Loss) from Investment Operations:
Net Investment Loss(2)		(0.24	)		(0.32	)		(0.22	)		(0.29	)		(0.09	)
Net Realized and Unrealized Gain		5.67			15.70			0.15			6.78			0.60
Total from Investment Operations		5.43			15.38			(0.07	)		6.49			0.51
Distributions from and/or in Excess of:
Net Realized Gain		(3.30	)		(2.31	)		(3.68	)		(6.92	)		—
Net Asset Value, End of Period	$	30.87		$	28.74		$	15.67		$	19.42		$	19.85
Total Return(3)		18.59	%(6)		113.21	%		3.55	%		46.08	%		2.64	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	63,949		$	33,781		$	6,518		$	536		$	10
Ratio of Expenses Before Expense Limitation		1.66	%(7)		1.75	%		1.84	%		3.69	%		15.31	%(7)
Ratio of Expenses After Expense Limitation		1.65	%(4)(7)		1.74	%(4)		1.83	%(4)		1.89	%(4)		1.90	%(4)(7)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.74	%(4)		1.83	%(4)		1.89	%(4)		1.90	%(4)(7)
Ratio of Net Investment Loss		(1.49	)%(4)(7)		(1.59	)%(4)		(1.32	)%(4)		(1.58	)%(4)		(1.34	)%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(7)		0.01	%		0.01	%		0.01	%		0.00	%(5)(7)
Portfolio Turnover Rate		72	%(6)		65	%		116	%		86	%		59	%(6)

(1)  Commencement of Offering.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Discovery Portfolio

	Class IS
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	38.72		$	20.15		$	23.50		$	22.43		$	31.94		$	36.03
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		(0.10	)		(0.12	)		(0.04	)		(0.06	)		0.04			0.07
Net Realized and Unrealized Gain		7.62			21.00			0.37			8.05			2.04			0.16
Total from Investment Operations		7.52			20.88			0.33			7.99			2.08			0.23
Distributions from and/or in Excess of:
Net Realized Gain		(3.30	)		(2.31	)		(3.68	)		(6.92	)		(11.59	)		(4.32	)
Net Asset Value, End of Period	$	42.94		$	38.72		$	20.15		$	23.50		$	22.43		$	31.94
Total Return(3)		19.19	%(6)		115.65	%		4.77	%		47.89	%		16.24	%		0.25	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	572,111		$	354,067		$	130,653		$	93,005		$	63,225		$	219,255
Ratio of Expenses Before Expense Limitation		0.60	%(7)		0.64	%		0.64	%		0.66	%		0.65	%		0.62	%
Ratio of Expenses After Expense Limitation		0.59	%(4)(7)		0.63	%(4)		0.63	%(4)		0.65	%(4)		0.65	%(4)		0.61	%(4)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.63	%(4)		0.63	%(4)		0.65	%(4)		0.65	%(4)		N/A
Ratio of Net Investment Income (Loss)		(0.44	)%(4)(7)		(0.44	)%(4)		(0.18	)%(4)		(0.30	)%(4)		0.18	%(4)		0.22	%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(7)		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%(5)
Portfolio Turnover Rate		72	%(6)		65	%		116	%		86	%		59	%		23	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (Loss) reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

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

The accompanying financial statements relate to the Discovery Portfolio. The Fund seeks long-term capital growth. The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class IS.

The Fund has suspended offering of Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option of purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

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

1.  Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for

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

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

(5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement"

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

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

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

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

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

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	133,650	$	—	$	—		$	133,650
Biotechnology		149,785		—		—			149,785
Diversified Holding Companies		37,364		—		—			37,364
Entertainment		252,180		—		—			252,180
Health Care Equipment & Supplies		131,880		—		—			131,880
Health Care Providers & Services		218,128		—		—			218,128
Health Care Technology		289,876		—		7,745			297,621
Information Technology Services		868,357		—		—			868,357
Interactive Media & Services		696,062		—		—			696,062
Internet & Direct Marketing Retail		669,734		—		—			669,734
Leisure Products		58,075		—		—			58,075
Life Sciences Tools & Services		106,662		—		—			106,662
Metals & Mining		41,370		—		—			41,370
Oil, Gas & Consumable Fuels		33,950		—		—			33,950
Pharmaceuticals		171,311		—		—			171,311
Real Estate Management & Development		78,852		—		—			78,852
Software		406,401		—		—			406,401
Specialty Retail		183,429		—		—			183,429
Total Common Stocks		4,527,066		—		7,745			4,534,811
Preferred Stocks
Internet & Direct Marketing Retail		3,073		—		—			3,073
Call Options Purchased		—		7,489		—			7,489
Short-Term Investments
Investment Company		589,633		—		—			589,633
Repurchase Agreements		—		20,963		—			20,963
Total Short-Term Investments		589,633		20,963		—			610,596
Derivative Contracts — PIPE		—		—		2,228			2,228
Total Assets		5,119,772		28,452		9,973			5,158,197
Liabilities:
Derivative Contracts — PIPE		—		—		(1,693	)		(1,693	)
Total	$	5,119,772	$	28,452	$	8,280		$	5,156,504

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

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

	Common Stock (000)		Derivative Contracts — PIPE (000)
Beginning Balance	$	3,980	$	—
Purchases		—		—
Sales		—		—
PIPE transaction		—		535
Amortization of discount		—		—
Transfers in		—		—
Transfers out		—		—
Corporate actions		—		—
Change in unrealized appreciation (depreciation)		3,765		—
Realized gains (losses)		—		—
Ending Balance	$	7,745	$	535
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2021	$	3,765	$	535

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of March 31, 2021:

	Fair Value at March 31, 2021 (000)		Valuation Technique	Unobservable Input	Amount*			Impact to Valuation from an Increase in Input**
Common Stock	$	7,745	Discounted Cash Flow	Weighted Average Cost of Capital		11.0	%	Decrease
				Perpetual Growth Rate		3.5	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		3.0x		Increase
				Discount for Lack of Marketability		7.0	%	Decrease
PIPE's	$	535	Market Implied	Discount for Lack of Marketability and Transaction Risk		0.0	%–7.6%	Decrease

*  Amount is indicative of the weighted average.

**  Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.

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

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

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

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

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Statement of Operations.

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

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

5.  Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates,

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

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

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

Options: With respect to options, the Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Statement of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Private Investment in Public Equity ("PIPE"): The Fund may acquire equity securities of an issuer that are issued through a private investment in public equity transaction, including on a when-issued basis. PIPE transactions typically involve the purchase of securities directly from a publicly traded company or its affiliates in a private placement transaction, typically at a discount to the market price of the company's securities. The Fund's PIPE investment represents an unfunded subscription agreement in a private investment in public equity. The Fund will generally segregate an amount of cash or high quality securities equal to the amount of its commitment to purchase the when-issued securities.

At March 31, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Portfolio of Investments.

FASB ASC 815, "Derivatives and Hedging" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these de-

rivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2021:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Purchased Options	Investments, at Value (Purchased Options)	Currency Risk	$	7,489	(a)
PIPE	Derivative Contracts — PIPE	Equity Risk		2,228
Total			$	9,717
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
PIPE	Derivative Contracts — PIPE	Equity Risk	$	1,693

(a) Amounts are included in Investments in Securities in the Statement of Assets and Liabilities.

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2021 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(865	)(b)

(b) Amounts are included in Investments Sold in the Statement of Operations.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(8,076	)(c)
Equity Risk	Derivative Contracts — PIPE		535
	Total	$	(7,541	)

(c) Amounts are included in Investments in the Statement of Operations.

At March 31, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Purchased Options	$	7,489	(a)	$	—
Derivative Contracts — PIPE		2,228			(1,693	)
Total	$	9,717		$	(1,693	)

(a) Amounts are included in Investments in Securities in the Statement of Assets and Liabilities.

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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities(a) (000)		Financial Instrument (000)		Collateral Received(e) (000)			Net Amount (not less than $0) (000)
BNP Paribas	$	3,647	$	—	$	(3,647	)	$	0
Goldman Sachs International		3,787		—		—			3,787
Good Works Acquisition Corp.		2,228		—		—			2,228
Royal Bank of Scotland		55		—		(45	)		10
Total	$	9,717	$	—	$	(3,692	)	$	6,025
Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liabilities Derivatives Presented in the Statement of Assets and Liabilities(a) (000)		Financial Instrument (000)		Collateral Received(e) (000)			Net Amount (not less than $0) (000)
Thomas Bravo Advantage	$	1,693	$	—	$	—		$	1,693

(a) Amounts are included in Investments in Securities in the Statement of Assets and Liabilities.

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

For the six months ended March 31, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		2,369,838,000
PIPE Purchased:
Average monthly notional amount	$	7,664,000

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

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	126,788	(f)	$	—	$	(124,276	)(g)	$	2,512

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

(g)  The Fund received cash collateral of approximately $98,888,000, of which approximately $98,704,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of March 31, 2021, there was uninvested cash of approximately $184,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $25,388,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining contractual maturity of those transactions as of March 31, 2021:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	98,888	$	—	$	—	$	—	$	98,888
Total Borrowings	$	98,888	$	—	$	—	$	—	$	98,888
Gross amount of recognized liabilities for securities lending transactions									$	98,888

7.  Restricted Securities: The Fund invests in unregistered or otherwise restricted securities. The term "restricted securities" refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale. As a result, restricted securities may be more difficult to value and the Fund may have difficulty disposing of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Fund, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Fund can sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and the acquirer of the securities. The Fund would, in either case, bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

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

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

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.50% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.80% for Class I shares, 1.15% for Class A shares, 1.65% for Class L shares, 1.90% for Class C shares and 0.73% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

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

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

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

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

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

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $3,985,121,000 and $2,992,718,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by approximately $197,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	89,721	$	2,252,655	$	1,752,743	$	21

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	589,633

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

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

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

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

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	21,323	$	80,708	$	10,731	$	110,644

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.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

Permanent differences, due to tax adjustments related to real estate investment trusts sold by the Fund, resulted in the following reclassifications among the components of net assets at September 30, 2020:

Total Distributable Earnings (000)		Paid-in- Capital (000)
$	150	$	(150	)

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	56,162	$	192,756

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 41.8%.

K. Principal Risks:

Market: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted.

If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

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

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

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

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

company may have limited operating experience, a smaller size, limited product lines, markets, distribution channels and financial and managerial resources. Investing in the securities of smaller companies involves greater risk, and portfolio price volatility.

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

L. Subsequent Event: Effective April 1, 2021, the Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the "Subsidiary"). The Fund may have exposure to bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The initial startup cost, including legal and other costs associated with the creation of the Subsidiary, was approximately $47,000.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

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

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

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

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

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

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

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice  April 2021

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

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

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

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

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

Definitions

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

Other Important Information

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

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

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

33

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

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

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTMCGSAN
3568284 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Dynamic Value Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	9
Statement of Operations	10
Statement of Changes in Net Assets	11
Financial Highlights	12
Notes to Financial Statements	16
Liquidity Risk Management Program	24
U.S. Customer Privacy Notice	25
Trustee and Officer Information	28

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Dynamic Value Portfolio (the "Fund") performed during the period beginning March 19, 2021 (when the Fund commenced operations) and ended March 31, 2021.

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Dynamic Value Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 3/19/21-3/31/21.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 3/19/21		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Dynamic Value Portfolio Class I^	$	1,000.00	$	1,002.00	$	1,001.47	$	0.17	$	0.17		0.53	%
Dynamic Value Portfolio Class A^		1,000.00		1,002.00		1,001.35		0.30		0.30		0.90
Dynamic Value Portfolio Class C^		1,000.00		1,002.00		1,001.10		0.54		0.54		1.65
Dynamic Value Portfolio Class IS^		1,000.00		1,002.00		1,001.48		0.16		0.16		0.50

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 12/365 (to reflect the actual days in the period).

**  Annualized.

^  The Fund commenced operations on March 19, 2021.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Dynamic Value Portfolio

	Shares		Value (000)
Common Stocks (92.7%)
Aerospace & Defense (2.5%)
Curtiss-Wright Corp.		210	$	25
General Dynamics Corp.		141		26
Huntington Ingalls Industries, Inc.		127		26
Northrop Grumman Corp.		80		26
Textron, Inc.		456		25
				128
Air Freight & Logistics (0.6%)
FedEx Corp.		101		29
Auto Components (0.5%)
BorgWarner, Inc.		524		24
Automobiles (0.5%)
General Motors Co.		426		24
Banks (1.7%)
Associated Banc-Corp		1,968		42
M&T Bank Corp.		292		44
				86
Beverages (0.5%)
Molson Coors Brewing Co., Class B		499		25
Biotechnology (2.0%)
AbbVie, Inc.		242		26
Biogen, Inc. (a)		96		27
Regeneron Pharmaceuticals, Inc. (a)		53		25
United Therapeutics Corp. (a)		147		25
				103
Building Products (0.5%)
Owens Corning		278		26
Capital Markets (3.3%)
Franklin Resources, Inc.		1,379		41
Invesco Ltd.		1,618		41
State Street Corp.		477		40
Virtu Financial, Inc., Class A		1,387		43
				165
Chemicals (0.8%)
Chemours Co. (The)		754		21
LyondellBasell Industries N.V., Class A		187		19
				40
Commercial Banks (4.3%)
BOK Financial Corp.		476		43
First Horizon National Corp.		2,577		44
FNB Corp.		3,408		43
Popular, Inc.		625		44
Prosperity Bancshares, Inc.		567		42
				216
Commercial Services & Supplies (0.2%)
ADT, Inc.		1,161		10

	Shares		Value (000)
Consumer Finance (3.3%)
Ally Financial, Inc.		897	$	41
OneMain Holdings, Inc.		748		40
Santander Consumer USA Holdings, Inc.		1,480		40
SLM Corp.		2,392		43
				164
Containers & Packaging (2.0%)
Berry Global Group, Inc. (a)		345		21
Graphic Packaging Holding Co.		1,112		20
International Paper Co.		375		21
Silgan Holdings, Inc.		480		20
WestRock Co.		387		20
				102
Distributors (0.3%)
LKQ Corp. (a)		326		14
Diversified Consumer Services (1.4%)
Graham Holdings Co., Class B		29		16
Grand Canyon Education, Inc. (a)		158		17
H&R Block, Inc.		830		18
Service Corp. International		356		18
				69
Diversified Financial Services (0.7%)
Jefferies Financial Group, Inc.		1,208		36
Diversified Telecommunication Services (2.5%)
Lumen Technologies, Inc.		9,541		127
Electric Utilities (2.9%)
Exelon Corp.		664		29
NRG Energy, Inc.		779		29
OGE Energy Corp.		873		28
PG&E Corp. (a)		2,511		30
PPL Corp.		956		28
				144
Electrical Equipment (1.1%)
Acuity Brands, Inc.		184		30
GrafTech International Ltd.		2,108		26
				56
Electronic Equipment, Instruments & Components (1.0%)
Arrow Electronics, Inc. (a)		153		17
Jabil, Inc.		331		17
SYNNEX Corp.		160		19
				53
Electronics (0.3%)
Avnet, Inc.		403		17
Energy Equipment & Services (0.8%)
Baker Hughes Co.		1,877		40
Equity Real Estate Investment Trusts (REITs) (4.5%)
Apartment Investment and Management Co. REIT		2,345		14
Boston Properties, Inc. REIT		126		13
Brandywine Realty Trust REIT		977		13

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Dynamic Value Portfolio

	Shares		Value (000)
Equity Real Estate Investment Trusts (REITs) (cont'd)
Corporate Office Properties Trust REIT		475	$	13
Cousins Properties, Inc. REIT		365		13
Equity Commonwealth REIT		469		13
Gaming and Leisure Properties, Inc. REIT		310		13
Highwoods Properties, Inc. REIT		304		13
Kimco Realty Corp. REIT		694		13
Medical Properties Trust, Inc. REIT		623		13
SL Green Realty Corp. REIT		177		12
Starwood Property Trust, Inc. REIT		1,627		40
VEREIT, Inc. REIT		340		13
VICI Properties, Inc. REIT		474		13
WP Carey, Inc. REIT		191		14
				223
Food & Staples Retailing (1.6%)
Kroger Co. (The)		1,049		38
Sprouts Farmers Market, Inc. (a)		1,514		40
				78
Food Products (2.9%)
Archer-Daniels-Midland Co.		426		24
Bunge Ltd.		312		25
Ingredion, Inc.		269		24
JM Smucker Co. (The)		198		25
Kraft Heinz Co. (The)		630		25
Tyson Foods, Inc., Class A		319		24
				147
Gas Utilities (0.6%)
UGI Corp.		698		29
Health Care Equipment & Supplies (1.0%)
Hologic, Inc. (a)		350		26
Quidel Corp. (a)		184		24
				50
Health Care Providers & Services (5.0%)
Anthem, Inc.		70		25
Centene Corp. (a)		390		25
Cigna Corp.		102		25
CVS Health Corp.		333		25
DaVita, Inc. (a)		227		24
Henry Schein, Inc. (a)		366		25
Laboratory Corp. of America Holdings (a)		103		26
Premier, Inc., Class A		733		25
Quest Diagnostics, Inc.		199		26
Universal Health Services, Inc., Class B		178		24
				250
Hotels, Restaurants & Leisure (1.0%)
Extended Stay America, Inc. (Units) (b)		900		18
Wendy's Co. (The)		847		17
Yum China Holdings, Inc. (China)		287		17
				52

	Shares		Value (000)
Household Durables (1.5%)
DR Horton, Inc.		141	$	13
Lennar Corp., Class A		123		12
Lennar Corp., Class B		151		12
Pulte Group, Inc.		241		13
Toll Brothers, Inc.		216		12
Whirlpool Corp.		54		12
				74
Household Products (0.8%)
Spectrum Brands Holdings, Inc.		450		38
Independent Power & Renewable Electricity Producer (0.6%)
Vistra Energy Corp.		1,690		30
Information Technology Services (1.7%)
Accenture PLC, Class A		24		7
Akamai Technologies, Inc. (a)		66		7
Alliance Data Systems Corp.		57		6
Amdocs Ltd.		81		6
Broadridge Financial Solutions, Inc.		45		7
Cognizant Technology Solutions Corp., Class A		85		7
Concentrix Corp. (a)		48		7
DXC Technology Co.		231		7
Fidelity National Information Services, Inc.		45		6
Fiserv, Inc. (a)		53		6
Genpact Ltd.		152		7
International Business Machines Corp.		50		7
Western Union Co. (The)		260		6
				86
Insurance (3.3%)
American National Group, Inc.		165		18
Assured Guaranty Ltd.		421		18
Athene Holding Ltd., Class A (a)		367		19
First American Financial Corp.		342		19
Hartford Financial Services Group, Inc. (The)		270		18
Old Republic International Corp.		826		18
Principal Financial Group, Inc.		304		18
RenaissanceRe Holdings Ltd.		109		17
Unum Group		646		18
				163
Internet & Direct Marketing Retail (0.3%)
Qurate Retail, Inc.		1,107		13
Life Sciences Tools & Services (0.5%)
PerkinElmer, Inc.		198		25
Machinery (3.5%)
AGCO Corp.		171		25
Allison Transmission Holdings, Inc.		589		24
Gates Industrial Corp. PLC (a)		1,506		24
Oshkosh Corp.		211		25
Timken Co. (The)		297		24
Trinity Industries, Inc.		904		26
Westinghouse Air Brake Technologies Corp.		331		26
				174

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Dynamic Value Portfolio

	Shares		Value (000)
Media (5.7%)
Comcast Corp., Class A		563	$	31
Discovery, Inc., Class C (a)		490		18
DISH Network Corp., Class A (a)		835		30
Fox Corp., Class A		733		27
Fox Corp., Class B		778		27
Interpublic Group of Cos., Inc. (The)		1,059		31
Liberty Media Corp-Liberty SiriusXM, Class C (a)		689		30
John Wiley & Sons, Inc., Class A		607		33
Nexstar Media Group, Inc., Class A		201		28
Omnicom Group, Inc.		407		30
				285
Metals & Mining (1.7%)
Newmont Corp.		325		20
Nucor Corp.		287		23
Reliance Steel & Aluminum Co.		135		20
Steel Dynamics, Inc.		427		22
				85
Multi-Line Retail (0.3%)
Dollar Tree, Inc. (a)		135		15
Multi-Utilities (0.6%)
MDU Resources Group, Inc.		918		29
Oil, Gas & Consumable Fuels (4.5%)
Antero Midstream Corp.		5,056		46
Equitrans Midstream Corp.		5,508		45
Kinder Morgan, Inc.		2,737		46
ONEOK, Inc.		895		45
Targa Resources Corp.		1,332		42
				224
Personal Products (0.7%)
Nu Skin Enterprises, Inc., Class A		713		38
Pharmaceuticals (3.0%)
Bristol-Myers Squibb Co.		403		26
Jazz Pharmaceuticals PLC (a)		148		24
Merck & Co., Inc.		325		25
Perrigo Co., PLC		600		24
Pfizer, Inc.		702		26
Viatris, Inc. (a)		1,720		24
				149
Professional Services (0.7%)
CACI International, Inc., Class A (a)		37		9
Jacobs Engineering Group, Inc.		74		10
Leidos Holdings, Inc.		95		9
Science Applications International Corp.		95		8
				36
Real Estate Management & Development (0.3%)
Jones Lang LaSalle, Inc. (a)		75		13

	Shares		Value (000)
Road & Rail (2.1%)
AMERCO		44	$	27
Knight-Swift Transportation Holdings, Inc.		580		28
Ryder System, Inc.		356		27
Schneider National, Inc., Class B		1,048		26
				108
Semiconductors & Semiconductor Equipment (3.3%)
Cirrus Logic, Inc. (a)		334		28
First Solar, Inc. (a)		336		30
Intel Corp.		409		26
Micron Technology, Inc. (a)		290		26
MKS Instruments, Inc.		152		28
Qorvo, Inc. (a)		148		27
				165
Software (1.2%)
CDK Global, Inc.		123		7
Citrix Systems, Inc.		49		7
McAfee Corp., Class A		273		6
NortonLifeLock, Inc.		307		6
Oracle Corp.		97		7
SolarWinds Corp. (a)		386		7
SS&C Technologies Holdings, Inc.		95		7
Teradata Corp. (a)		153		6
VMware, Inc., Class A (a)		44		6
				59
Specialty Retail (1.4%)
AutoNation, Inc. (a)		157		15
Best Buy Co., Inc.		125		14
Dick's Sporting Goods, Inc.		183		14
Foot Locker, Inc.		251		14
Penske Automotive Group, Inc.		172		14
				71
Tech Hardware, Storage & Peripherals (1.3%)
Hewlett Packard Enterprise Co.		1,061		17
HP, Inc.		545		17
NCR Corp. (a)		442		17
Xerox Holdings Corp.		667		16
				67
Thrifts & Mortgage Finance (1.9%)
MGIC Investment Corp.		3,439		48
New York Community Bancorp, Inc.		3,676		46
				94
Trading Companies & Distributors (1.5%)
Air Lease Corp.		512		25
United Rentals, Inc. (a)		79		26
Univar Solutions, Inc. (a)		1,186		26
				77
Total Common Stocks (Cost $4,644)				4,645

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Dynamic Value Portfolio

	Shares		Value (000)
Short-Term Investment (7.1%)
Investment Company (7.1%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $357)		357,249	$	357
Total Investments (99.8%) (Cost $5,001) (c)				5,002
Other Assets in Excess of Liabilities (0.2%)				9
Net Assets (100.0%)			$	5,011

(a)  Non-income producing security.

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

(c)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $104,000 and the aggregate gross unrealized depreciation is approximately $96,000, resulting in net unrealized appreciation of approximately $8,000.

LIBOR  London Interbank Offered Rate.

REIT  Real Estate Investment Trust.

USD  United States Dollar.

Total Return Swap Agreements:

The Fund had the following total return swap agreements open at March 31, 2021:

Swap Counterparty	Index	Pay/Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (000)
JPMorgan Chase Bank NA	Russell 1000 Value Factor Basket Index††	Receive	3 Month USD LIBOR plus 1.00%	Quarterly	3/23/22	$	1,848	$	—	@	$	—	$	—	@
JPMorgan Chase  Bank NA	Russell 1000 Growth Factor Basket Index††	Pay	3 Month USD LIBOR plus 1.00%	Quarterly	3/23/22		1,499		7			—		7
								$	7		$	—	$	7

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

The following table represents the equity basket holdings underlying the total return swap with Russell 1000 Value Factor Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
Russell 1000 Value Factor Basket Index
Lumen Technologies, Inc.		20,517	$	274		2.74	%
MGIC Investment Corp.		7,396		102		1.03
New York Community BanCorp., Inc.		7,906		100		1.00
Antero Midstream Corp.		10,874		98		0.98
Kinder Morgan, Inc.		5,885		98		0.98
Equitrans Midstream Corp.		11,846		97		0.97
ONEOK, Inc.		1,924		97		0.98
M&T Bank Corp.		628		95		0.95
Popular, Inc.		1,344		95		0.95
First Horizon Corp.		5,543		94		0.94
FNB Corp.		7,330		93		0.93
Virtu Financial, Inc.		2,982		93		0.93
SLM Corp.		5,145		92		0.93
BOK Financial Corp.		1,024		91		0.92
Prosperity Bancshares, Inc.		1,220		91		0.91
Targa Resources Corp.		2,864		91		0.91
Associated Banc-Corp.		4,232		90		0.90
Franklin Resources, Inc.		2,966		88		0.88
Invesco Ltd.		3,480		88		0.88
Ally Financial, Inc.		1,930		87		0.87
Baker Hughes Co.		4,036		87		0.87
Sprouts Farmers Market, Inc.		3,255		87		0.87

Security Description	Shares		Value (000)		Index Weight
Russell 1000 Value Factor Basket Index (cont'd)
Starwood Property Trust, Inc.		3,500	$	87		0.87	%
OneMain Holdings, Inc.		1,609		86		0.87
Santander Consumer USA Holdings, Inc.		3,184		86		0.86
State Street Corp.		1,026		86		0.86
Spectrum Brands Holdings, Inc.		968		82		0.82
Kroger Co. (The)		2,257		81		0.81
Nu Skin Enterprises, Inc.		1,533		81		0.81
Jefferies Financial Group, Inc.		2,597		78		0.78
John Wiley & Sons, Inc.		1,305		71		0.71
Interpublic Group of Cos, Inc. (The)		2,278		67		0.67
Acuity Brands, Inc.		395		65		0.65
Comcast Corp.		1,210		65		0.66
DISH Network Corp.		1,796		65		0.65
Liberty Media Corp.-Liberty SiriusXM		1,482		65		0.65
Omnicom Group, Inc.		875		65		0.65
Vistra Corp.		3,634		64		0.64
First Solar, Inc.		722		63		0.63
NRG Energy, Inc.		1,676		63		0.63
PG&E Corp.		5,399		63		0.63
Exelon Corp.		1,429		62		0.63
FedEx Corp.		217		62		0.62
MDU Resources Group, Inc.		1,973		62		0.62
UGI Corp.		1,502		62		0.62
Cirrus Logic, Inc.		718		61		0.61

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Dynamic Value Portfolio

Security Description	Shares		Value (000)		Index Weight
Russell 1000 Value Factor Basket Index (cont'd)
Nexstar Media Group, Inc.		433	$	61		0.61	%
OGE Energy Corp.		1,878		61		0.61
Knight-Swift Transportation Holdings, Inc.		1,248		60		0.60
MKS Instruments, Inc.		326		60		0.61

The following table represents the equity basket holdings underlying the total return swap with Russell 1000 Growth Factor Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
Russell 1000 Growth Factor Basket Index
T-Mobile US, Inc.		2,317	$	290		2.92	%
Hess Corp.		1,393		99		0.99
Bank Of America Corp.		2,532		98		0.99
First Republic Bank		577		96		0.97
Pnc Financial Services Group, Inc. (The)		548		96		0.97
Tfs Financial Corp.		4,720		96		0.97
Commerce Bancshares, Inc.		1,234		95		0.95
Umpqua Holdings Corp.		5,344		94		0.94
Wells Fargo & Co.		2,416		94		0.95
Moody's Corp.		307		92		0.92
Pacwest BanCorp.		2,425		92		0.93
Ares Management Corp.		1,619		91		0.91
Halliburton Co.		4,228		91		0.91
MSCI, Inc.		218		91		0.92
Valero Energy Corp.		1,272		91		0.93
S&P Global, Inc.		254		90		0.90
Tradeweb Markets, Inc.		1,215		90		0.90
American Express Co.		620		88		0.88
Cme Group, Inc.		430		88		0.88
Coty, Inc.		9,739		88		0.88
Marketaxess Holdings, Inc.		176		88		0.88
Svb Financial Group		179		88		0.89
Apa Corp.		4,872		87		0.88
Lendingtree, Inc.		409		87		0.88
Nov, Inc.		6,188		85		0.85
Estee Lauder Cos, Inc. (The)		289		84		0.85

Security Description	Shares		Value (000)		Index Weight
Russell 1000 Growth Factor Basket Index (cont'd)
Helmerich & Payne, Inc.		3,098	$	84		0.84	%
Morningstar, Inc.		374		84		0.85
Grocery Outlet Holding Corp.		2,235		82		0.83
Sysco Corp.		1,004		79		0.79
Pinterest, Inc.		984		73		0.73
American Water Works Co, Inc.		444		67		0.67
Spotify Technology SA		251		67		0.68
Zillow Group, Inc.		518		67		0.68
Eversource Energy		758		66		0.66
Live Nation Entertainment, Inc.		777		66		0.66
Nextera Energy, Inc.		867		66		0.66
Wec Energy Group, Inc.		700		66		0.66
Cms Energy Corp.		1,063		65		0.65
Essential Utilities, Inc.		1,452		65		0.65
Roku, Inc.		200		65		0.65
Twitter, Inc.		1,024		65		0.66
Zillow Group, Inc.		496		65		0.65
Aes Corp. (The)		2,372		64		0.64
Match Group, Inc.		464		64		0.64
Madison Square Garden Sports Corp.		350		63		0.63
Nisource, Inc.		2,616		63		0.63
Tripadvisor, Inc.		1,162		63		0.63
Enphase Energy, Inc.		381		62		0.62
Boston Beer Co., Inc. (The)		50		61		0.61

Portfolio Composition

Classification	Percentage of Total Investments
Other*		82.2	%
Short-Term Investments		7.1
Media		5.7
Health Care Providers & Services		5.0
Total Investments		100.0	%**

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

**  Does not include open swap agreements with total unrealized appreciation of approximately $7,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Dynamic Value Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $4,644)	$	4,645
Investment in Security of Affiliated Issuer, at Value (Cost $357)		357
Total Investments in Securities, at Value (Cost $5,001)		5,002
Prepaid Offering Costs		157
Due from Adviser		11
Unrealized Appreciation on Swap Agreements		7
Dividends Receivable		3
Receivable from Affiliate		—	@
Total Assets		5,180
Liabilities:
Payable for Offering Costs		162
Payable for Professional Fees		5
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Custodian Fees		—	@
Payable for Administration Fees		—	@
Other Liabilities		2
Total Liabilities		169
Net Assets	$	5,011
Net Assets Consist of:
Paid-in-Capital	$	5,000
Total Distributable Earnings		11
Net Assets	$	5,011
CLASS I:
Net Assets	$	4,981
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		497,000
Net Asset Value, Offering and Redemption Price Per Share	$	10.02
CLASS A:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Redemption Price Per Share	$	10.02
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.56
Maximum Offering Price Per Share	$	10.58
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	10.02
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	10.02

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Dynamic Value Portfolio

Statement of Operations	Period from March 19, 2021^ to March 31, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	4
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		4
Expenses:
Professional Fees		5
Offering Costs		5
Advisory Fees (Note B)		1
Shareholder Reporting Fees		1
Transfer Agency Fees — Class I (Note E)		—	@
Transfer Agency Fees — Class A (Note E)		—	@
Transfer Agency Fees — Class C (Note E)		—	@
Transfer Agency Fees — Class IS (Note E)		—	@
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Custodian Fees (Note F)		—	@
Administration Fees (Note C)		—	@
Pricing Fees		—	@
Other Expenses		1
Total Expenses		13
Expenses Reimbursed by Adviser (Note B)		(11	)
Waiver of Advisory Fees (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(—	@)
Net Expenses		1
Net Investment Income		3
Change in Unrealized Appreciation (Depreciation):
Investments		1
Swap Agreements		7
Net Change in Unrealized Appreciation (Depreciation)		8
Net Increase in Net Assets Resulting from Operations	$	11

^  Commencement of Operations.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Dynamic Value Portfolio

Statement of Changes in Net Assets	Period from March 19, 2021^ to March 31, 2021 (unaudited) (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	3
Net Change in Unrealized Appreciation (Depreciation)		8
Net Increase in Net Assets Resulting from Operations		11
Capital Share Transactions:(1)
Class I:
Subscribed		4,970
Class A:
Subscribed		10
Class C:
Subscribed		10
Class IS:
Subscribed		10
Net Increase in Net Assets Resulting from Capital Share Transactions		5,000
Total Increase in Net Assets		5,011
Net Assets:
Beginning of Period		—
End of Period	$	5,011
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		497
Class A:
Shares Subscribed		1
Class C:
Shares Subscribed		1
Class IS:
Shares Subscribed		1

^  Commencement of Operations.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Dynamic Value Portfolio

	Class I
Selected Per Share Data and Ratios	Period from March 19, 2021(1) to March 31, 2021 (unaudited)
Net Asset Value, Beginning of Period	$	10.00
Income from Investment Operations:
Net Investment Income(2)		0.01
Net Realized and Unrealized Gain		0.01
Total from Investment Operations		0.02
Net Asset Value, End of Period	$	10.02
Total Return(3)		0.20	%(4)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,981
Ratio of Expenses Before Expense Limitation		7.54	%(5)
Ratio of Expenses After Expense Limitation		0.53	%(5)
Ratio of Net Investment Income		1.77	%(5)
Portfolio Turnover Rate		0	%(4)

(1)  Commencement of Operations.

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

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

(4)  Not annualized.

(5)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Dynamic Value Portfolio

	Class A
Selected Per Share Data and Ratios	Period from March 19, 2021(1) to March 31, 2021 (unaudited)
Net Asset Value, Beginning of Period	$	10.00
Income from Investment Operations:
Net Investment Income(2)		0.00	(3)
Net Realized and Unrealized Gain		0.02
Total from Investment Operations		0.02
Net Asset Value, End of Period	$	10.02
Total Return(4)		0.20	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses Before Expense Limitation		21.65	%(6)
Ratio of Expenses After Expense Limitation		0.90	%(6)
Ratio of Net Investment Income		1.24	%(6)
Portfolio Turnover Rate		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Dynamic Value Portfolio

	Class C
Selected Per Share Data and Ratios	Period from March 19, 2021(1) to March 31, 2021 (unaudited)
Net Asset Value, Beginning of Period	$	10.00
Income from Investment Operations:
Net Investment Income(2)		0.00	(3)
Net Realized and Unrealized Gain		0.02
Total from Investment Operations		0.02
Net Asset Value, End of Period	$	10.02
Total Return(4)		0.20	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses Before Expense Limitation		22.39	%(6)
Ratio of Expenses After Expense Limitation		1.65	%(6)
Ratio of Net Investment Income		0.49	%(6)
Portfolio Turnover Rate		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Dynamic Value Portfolio

	Class IS
Selected Per Share Data and Ratios	Period from March 19, 2021(1) to March 31, 2021 (unaudited)
Net Asset Value, Beginning of Period	$	10.00
Income from Investment Operations:
Net Investment Income(2)		0.01
Net Realized and Unrealized Gain		0.01
Total from Investment Operations		0.02
Net Asset Value, End of Period	$	10.02
Total Return(3)		0.20	%(4)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses Before Expense Limitation		21.39	%(5)
Ratio of Expenses After Expense Limitation		0.50	%(5)
Ratio of Net Investment Income		1.64	%(5)
Portfolio Turnover Rate		0	%(4)

(1)  Commencement of Operations.

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

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

(4)  Not annualized.

(5)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

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

The accompanying financial statements relate to the Dynamic Value Portfolio. The Fund seeks capital appreciation.

The Fund commenced operations on March 19, 2021 and offers four classes of shares — Class I, Class A, Class C and Class IS.

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

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

1.  Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued

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

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) OTC swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange. Total return swaps may also be fair valued using direct accrual/return calculations if prices on the reference asset on the total return leg of the swap are available from a pricing service/vendor for such instrument. In the event that the reference asset on the total return leg of the swap is a benchmark index, then price of such reference asset may be obtained from a pricing service provider or from the benchmark index sponsor; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies

and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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

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

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

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

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	128	$	—	$	—	$	128
Air Freight & Logistics		29		—		—		29
Auto Components		24		—		—		24
Automobiles		24		—		—		24
Banks		86		—		—		86
Beverages		25		—		—		25
Biotechnology		103		—		—		103
Building Products		26		—		—		26
Capital Markets		165		—		—		165
Chemicals		40		—		—		40
Commercial Banks		216		—		—		216
Commercial Services & Supplies		10		—		—		10
Consumer Finance		164		—		—		164
Containers & Packaging		102		—		—		102
Distributors		14		—		—		14
Diversified Consumer Services		69		—		—		69
Diversified Financial Services		36		—		—		36
Diversified Telecommunication Services		127		—		—		127
Electric Utilities		144		—		—		144
Electrical Equipment		56		—		—		56
Electronic Equipment, Instruments & Components		53		—		—		53
Electronics		17		—		—		17
Energy Equipment & Services		40		—		—		40
Equity Real Estate Investment Trusts (REITs)		223		—		—		223
Food & Staples Retailing		78		—		—		78
Food Products		147		—		—		147
Gas Utilities		29		—		—		29
Health Care Equipment & Supplies		50		—		—		50
Health Care Providers & Services		250		—		—		250
Hotels, Restaurants & Leisure		52		—		—		52
Household Durables		74		—		—		74
Household Products		38		—		—		38

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Independent Power & Renewable Electricity Producers	$	30	$	—	$	—	$	30
Information Technology Services		86		—		—		86
Insurance		163		—		—		163
Internet & Direct Marketing Retail		13		—		—		13
Life Sciences Tools & Services		25		—		—		25
Machinery		174		—		—		174
Media		285		—		—		285
Metals & Mining		85		—		—		85
Multi-Line Retail		15		—		—		15
Multi-Utilities		29		—		—		29
Oil, Gas & Consumable Fuels		224		—		—		224
Personal Products		38		—		—		38
Pharmaceuticals		149		—		—		149
Professional Services		36		—		—		36
Real Estate Management & Development		13		—		—		13
Road & Rail		108		—		—		108
Semiconductors & Semiconductor Equipment		165		—		—		165
Software		59		—		—		59
Specialty Retail		71		—		—		71
Tech Hardware, Storage & Peripherals		67		—		—		67
Thrifts & Mortgage Finance		94		—		—		94
Trading Companies & Distributors		77		—		—		77
Total Common Stocks		4,645		—		—		4,645
Short-Term Investment
Investment Company		357		—		—		357
Total Return Swap Agreements		—		7		—		7
Total Assets	$	5,002	$	7	$	—	$	5,009

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

3.  Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

Swaps: The Fund may enter into OTC swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Fund's obligations or rights under a swap contract entered into on a net basis will generally

be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Fund's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Fund or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis based on the type of market participant and U.S. Commission ("CFTC") approval of contracts for central clearing and exchange trading.

The Fund my enter into total return swaps in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include, but not be limited to, a specified security, basket of securities or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. Total return swaps may be used to obtain long or short exposure to a security or market without owning or taking physical custody of such security or investing directly in such market. Total return swaps may effectively add leverage to the Fund's portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. Total return swaps are subject to the risk that a counterparty will default on its payment obligations to the Fund thereunder, and conversely, that the Fund will not be able to meet its obligation to the counterparty.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2021:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk	$	7

The following table sets forth by primary risk exposure the Fund's change in unrealized appreciation (depreciation) by type of derivative contract for the period ended March 31, 2021 in accordance with ASC 815:

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Swap Agreements	$	7

At March 31, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(a)	Assets(b) (000)		Liabilities(b) (000)
Swap Agreements	$	7	$	—

(a) Excludes exchange-traded derivatives.

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

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its contract counter-

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

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received (000)		Net Amount (not less than $0) (000)
JPMorgan Chase Bank NA	$	7	$	—	$	—	$	7

For the period ended March 31, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Swap Agreements:
Average monthly notional amount	$	1,536,000

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.35% of the daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.55% for Class I shares, 0.90% for Class A shares, 1.65% for Class C shares and 0.50% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at

least one year from the date of the Fund's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the period ended March 31, 2021, approximately $1,000 of advisory fees were waived and approximately $11,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets.

Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

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

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

E. Dividend Disbursing and Transfer Agent: The Trust's dividend disbursing and transfer agent is DST Asset

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Trust pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.

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

G. Security Transactions and Transactions with Affiliates: For the period ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $4,643,000 and $0, respectively. There were no purchases and sales of long-term U.S. Government securities for the period ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. This arrangement had no effect for the period ended March 31, 2021.

A summary of the Fund's transactions in shares of affiliated investments during the period ended March 31, 2021 is as follows:

Affiliated Investment Company	Value March 19, 2021 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	—	$	5,357	$	5,000	$	—	@

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	357

@  Amount is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with

Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the period ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

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

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

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

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

I. Other: At March 31, 2021, the Fund did not have record owners of 10% or greater.

J. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could im-

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

pact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

K. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any

securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

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

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

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

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

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

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

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S.Customer Privacy Notice  April 2021

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

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

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

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

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

Definitions

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

Other Important Information

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

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

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

28

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

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

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTDYVSAN
3565573 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Strategist Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Consolidated Expense Example	3
Consolidated Portfolio of Investments	4
Consolidated Statement of Assets and Liabilities	37
Consolidated Statement of Operations	39
Consolidated Statements of Changes in Net Assets	40
Consolidated Financial Highlights	42
Notes to Consolidated Financial Statements	47
Liquidity Risk Management Program	60
U.S. Customer Privacy Notice	61
Trustee and Officer Information	64

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Expense Example

Global Strategist Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Strategist Portfolio Class I	$	1,000.00	$	1,150.80	$	1,021.34	$	3.86	$	3.63		0.72	%
Global Strategist Portfolio Class A		1,000.00		1,148.60		1,019.90		5.41		5.09		1.01
Global Strategist Portfolio Class L		1,000.00		1,145.90		1,017.35		8.13		7.64		1.52
Global Strategist Portfolio Class C		1,000.00		1,144.50		1,015.81		9.78		9.20		1.83
Global Strategist Portfolio Class IS		1,000.00		1,150.40		1,021.54		3.65		3.43		0.68

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (42.5%)
Agency Adjustable Rate Mortgage (0.0%)
United States (0.0%)
Federal Home Loan Mortgage Corporation
Conventional Pool:
12 Month USD LIBOR + 1.62%, 3.18%, 7/1/45	$	37	$	39
Agency Fixed Rate Mortgages (3.5%)
United States (3.5%)
Federal Home Loan Mortgage Corporation,
Conventional Pool:
4.50%, 1/1/49		169		184
Gold Pools:
3.50%, 1/1/44 - 6/1/45		735		794
4.50%, 1/1/49		49		53
6.50%, 5/1/32 - 7/1/32		27		30
7.50%, 5/1/35		3		3
Federal National Mortgage Association,
April TBA:
3.00%, 4/1/51 (a)		5,150		5,365
3.50%, 4/1/51 (a)		2,000		2,113
Conventional Pools:
3.00%, 7/1/49		467		484
3.50%, 3/1/47		87		93
4.00%, 4/1/45 - 9/1/45		732		808
4.50%, 3/1/41 - 11/1/44		155		173
5.00%, 1/1/41 - 3/1/41		357		410
6.00%, 1/1/38		3		4
6.50%, 12/1/29		9		10
7.50%, 8/1/37		5		6
June TBA:
2.00%, 6/1/51 (a)		1,900		1,889
2.50%, 6/1/51 (a)		1,200		1,226
Government National Mortgage Association,
Various Pools:
4.00%, 8/20/41 - 11/20/42		208		231
4.50%, 6/20/49		73		79
5.00%, 2/20/49 - 6/20/49		218		236
5.50%, 8/15/39		16		18
				14,209
Asset-Backed Securities (0.4%)
United States (0.4%)
Freed ABS Trust,
3.06%, 3/18/27 (b)		300		305
New Century Home Equity Loan Trust,
1 Month USD LIBOR + 1.35%, 1.46%, 3/25/33 (c)		206		206
NovaStar Mortgage Funding Trust,
1 Month USD LIBOR + 1.58%, 1.68%, 12/25/34 (c)		200		201
Renaissance Home Equity Loan Trust,
1 Month USD LIBOR + 0.76%, 0.87%, 12/25/32 (c)		227		221

	Face Amount (000)		Value (000)
SASCO Mortgage Loan Trust,
1 Month USD LIBOR + 2.18%, 2.28%, 5/25/34 (c)	$	261	$	262
SLM Student Loan Trust,
3 Month EURIBOR + 0.55%, 0.01%, 7/25/39 (c)	EUR	447		507
				1,702
Collateralized Mortgage Obligations — Agency Collateral Series (0.0%)
United States (0.0%)
Federal Home Loan Mortgage Corporation
IO REMIC,
6.05% - 1 Month USD LIBOR, 5.94%, 4/15/39 (d)	$	1		—	@
Commercial Mortgage-Backed Securities (0.5%)
United Kingdom (0.0%)
Taurus 2018-2 UK DAC,
3 Month GBP LIBOR + 1.10%, 1.16%, 5/22/28 (c)	GBP	151		205
United States (0.5%)
Ashford Hospitality Trust,
1 Month USD LIBOR + 1.85%, 1.96%, 6/15/35 (b)(c)	$	250		248
COMM Mortgage Trust,
3.28%, 1/10/46		305		317
4.74%, 7/15/47 (b)(c)		152		155
Federal Home Loan Mortgage Corporation,
2.79%, 1/25/22		63		64
2.97%, 10/25/21		81		82
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		262
Wells Fargo Commercial Mortgage Trust,
1 Month USD LIBOR + 1.14%, 1.25%, 1/15/35 (b)(c)		400		401
WFRBS Commercial Mortgage Trust,
4.00%, 10/15/57 (b)(c)		200		200
5.01%, 9/15/46 (b)(c)		375		303
				2,032
				2,237
Corporate Bonds (12.1%)
Australia (0.4%)
Australia & New Zealand Banking Group Ltd.,
2.57%, 11/25/35 (b)		400		377
Macquarie Bank Ltd.,
6.63%, 4/7/21 (b)		270		270
Macquarie Group Ltd.,
4.15%, 3/27/24 (b)		125		133
Transurban Finance Co. Pty Ltd.,
2.00%, 8/28/25	EUR	350		442
Westpac Banking Corp.,
2.67%, 11/15/35	$	325		309
				1,531

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Belgium (0.1%)
Anheuser-Busch InBev SA N.V.,
2.75%, 3/17/36	EUR	350	$	497
Canada (0.6%)
Enbridge, Inc.,
2.50%, 1/15/25	$	475		496
Province of British Columbia Canada,
2.00%, 10/23/22		860		884
Province of Ontario Canada,
2.30%, 6/15/26		860		911
Royal Bank of Canada,
2.75%, 2/1/22		350		357
				2,648
China (0.2%)
Alibaba Group Holding Ltd.,
2.13%, 2/9/31		200		191
Baidu, Inc.,
2.88%, 7/6/22		200		205
Meituan,
3.05%, 10/28/30		400		390
				786
Colombia (0.2%)
Ecopetrol SA,
5.88%, 9/18/23		780		863
Denmark (0.1%)
Danske Bank A/S,
5.00%, 1/12/23 (b)		200		206
France (0.8%)
Banque Federative du Credit Mutuel SA,
0.75%, 7/17/25	EUR	400		485
1.75%, 12/19/24	GBP	400		570
BNP Paribas SA,
1.13%, 6/11/26	EUR	485		593
BPCE SA,
5.15%, 7/21/24 (b)	$	725		812
Orange SA,
5.00%, 10/1/26 (e)	EUR	250		352
TOTAL SE,
2.71%, 12/29/49 (e)		100		122
3.88%, 12/29/49 (e)		250		305
				3,239
Germany (0.8%)
Bayer US Finance II LLC,
3.88%, 12/15/23 (b)	$	675		728
Daimler Finance North America LLC,
2.70%, 6/14/24 (b)		325		342
Deutsche Telekom International Finance BV,
3.60%, 1/19/27 (b)		625		686
Kreditanstalt fuer Wiederaufbau,
1.13%, 9/15/32	EUR	640		845

	Face Amount (000)		Value (000)
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen,
6.00%, 5/26/41	EUR	400	$	473
Volkswagen International Finance N.V.,
Series 10Y
1.88%, 3/30/27		300		381
				3,455
Hong Kong (0.1%)
CK Hutchison International 16 Ltd.,
1.88%, 10/3/21 (b)	$	200		201
India (0.2%)
ONGC Videsh Vankorneft Pte Ltd.,
3.75%, 7/27/26		820		871
Ireland (0.1%)
Avolon Holdings Funding Ltd.,
2.88%, 2/15/25 (b)		250		249
Israel (0.0%)
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21		82		82
Japan (0.1%)
NTT Finance Corp.,
1.59%, 4/3/28 (b)		600		586
Korea, Republic of (0.4%)
Korea Electric Power Corp.,
2.50%, 6/24/24 (b)		610		647
Korea Hydro & Nuclear Power Co., Ltd.,
3.75%, 7/25/23 (b)		510		547
Korea Southern Power Co. Ltd.,
0.75%, 1/27/26 (b)		530		514
				1,708
Netherlands (0.2%)
ASR Nederland N.V.,
5.00%, 9/30/24 (e)	EUR	425		567
Cooperatieve Rabobank UA,
3.95%, 11/9/22	$	250		263
				830
Qatar (0.1%)
Ooredoo International Finance Ltd.,
2.63%, 4/8/31		200		198
Saudi Arabia (0.1%)
Saudi Arabian Oil Co.,
3.50%, 4/16/29		490		522
Spain (0.4%)
Banco Santander SA,
3.13%, 1/19/27	EUR	400		531
5.18%, 11/19/25	$	600		681
CaixaBank SA,
0.75%, 4/18/23	EUR	400		477
				1,689

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Switzerland (0.4%)
Credit Suisse Group AG,
2.19%, 6/5/26 (b)	$	325	$	330
Syngenta Finance N.V.,
4.44%, 4/24/23 (b)		200		210
UBS Group Funding Switzerland AG,
3.49%, 5/23/23 (b)		900		929
				1,469
United Arab Emirates (0.2%)
ADCB Finance Cayman Ltd.,
4.00%, 3/29/23 (b)		200		212
Galaxy Pipeline Assets Bidco Ltd.,
2.63%, 3/31/36 (b)		450		432
				644
United Kingdom (1.2%)
BAT Capital Corp.,
3.56%, 8/15/27		525		559
BP Capital Markets PLC,
2.50%, 11/6/22		275		284
HSBC Holdings PLC,
2.26%, 11/13/26	GBP	300		429
2.63%, 11/7/25	$	525		549
4.25%, 3/14/24		400		436
Lloyds Banking Group PLC,
1.75%, 9/7/28	EUR	330		400
2.25%, 10/16/24	GBP	400		573
Nationwide Building Society,
3.77%, 3/8/24 (b)	$	300		317
4.36%, 8/1/24 (b)		200		216
Natwest Group PLC,
3.88%, 9/12/23		750		804
NGG Finance PLC,
5.63%, 6/18/73	GBP	350		544
				5,111
United States (5.4%)
7-Eleven, Inc.,
1.30%, 2/10/28 (b)	$	425		408
Air Lease Corp.,
2.30%, 2/1/25		300		307
Altria Group, Inc.,
2.45%, 2/4/32		225		215
Amazon.com, Inc.,
2.70%, 6/3/60		200		178
American International Group, Inc.,
4.88%, 6/1/22		400		420
American Tower Corp.,
2.40%, 3/15/25		200		209
AT&T, Inc.,
1.80%, 9/5/26	EUR	400		506
2.90%, 12/4/26	GBP	350		521

	Face Amount (000)		Value (000)
Bank of America Corp.,
MTN
4.00%, 1/22/25	$	825	$	904
Boeing Co. (The),
5.15%, 5/1/30		200		231
Burlington Northern Santa Fe LLC,
3.05%, 2/15/51		125		121
4.55%, 9/1/44		45		53
Campbell Soup Co.,
2.38%, 4/24/30		325		318
Capital One Financial Corp.,
3.30%, 10/30/24		325		351
Charter Communications Operating LLC/ Charter Communications Operating Capital,
2.30%, 2/1/32		250		233
4.80%, 3/1/50		100		108
5.75%, 4/1/48		50		61
Chubb INA Holdings, Inc.,
0.88%, 6/15/27	EUR	400		486
Cigna Corp.,
2.40%, 3/15/30	$	75		74
3.88%, 10/15/47		200		214
Citigroup, Inc.,
2.67%, 1/29/31		106		107
2.98%, 11/5/30		45		47
4.41%, 3/31/31		149		170
5.50%, 9/13/25		425		493
Comcast Corp.,
1.95%, 1/15/31		525		506
Crown Castle International Corp.,
3.30%, 7/1/30		125		131
CVS Health Corp.,
3.75%, 4/1/30		400		437
Deere & Co.,
3.10%, 4/15/30		350		375
Diamondback Energy, Inc.,
2.88%, 12/1/24		425		449
Emerson Electric Co.,
1.25%, 10/15/25	EUR	450		558
Energy Transfer Operating LP,
2.90%, 5/15/25	$	600		625
Enterprise Products Operating LLC,
3.95%, 1/31/60		225		226
Ford Motor Credit Co. LLC,
3.09%, 1/9/23		300		305
Fox Corp.,
4.71%, 1/25/29		400		461
GE Capital International Funding Co., Unlimited Co.,
4.42%, 11/15/35		250		286
Georgia-Pacific LLC,
2.30%, 4/30/30 (b)		525		524

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
Global Payments, Inc.,
1.20%, 3/1/26	$	150	$	148
Goldman Sachs Group, Inc. (The),
2.88%, 10/31/22		350		355
HCA, Inc.,
5.25%, 6/15/49		100		123
HSBC USA, Inc.,
3.50%, 6/23/24		100		108
JPMorgan Chase & Co.,
1.95%, 2/4/32		350		332
3.70%, 5/6/30		200		218
Las Vegas Sands Corp.,
3.20%, 8/8/24		75		78
3.50%, 8/18/26		125		130
Level 3 Financing, Inc.,
3.40%, 3/1/27 (b)		425		451
Lowe's Cos., Inc.,
1.30%, 4/15/28		200		190
1.70%, 10/15/30		325		306
McDonald's Corp.,
MTN
3.38%, 5/26/25		275		299
Metropolitan Life Global Funding I,
2.95%, 4/9/30 (b)		425		443
NextEra Energy Capital Holdings, Inc.,
2.25%, 6/1/30		325		318
2.75%, 5/1/25		450		476
NIKE, Inc.,
2.85%, 3/27/30		275		290
NiSource, Inc.,
3.60%, 5/1/30		500		543
NVIDIA Corp.,
2.85%, 4/1/30		700		736
Occidental Petroleum Corp.,
3.20%, 8/15/26		40		38
5.55%, 3/15/26		350		371
Oracle Corp.,
2.50%, 4/1/25		150		158
2.88%, 3/25/31		225		229
2.95%, 4/1/30		125		129
Pacific Gas and Electric Co.,
2.50%, 2/1/31		150		142
PepsiCo, Inc.,
2.63%, 4/28/26	EUR	400		531
Prologis Euro Finance LLC,
1.88%, 1/5/29		300		390
Synchrony Bank,
3.00%, 6/15/22	$	875		899
Union Pacific Corp.,
3.95%, 9/10/28		190		213
Verizon Communications, Inc.,
2.99%, 10/30/56 (b)		225		199
3.40%, 3/22/41		375		381

	Face Amount (000)		Value (000)
Vontier Corp.,
2.40%, 4/1/28 (b)	$	250	$	246
Walt Disney Co. (The),
2.65%, 1/13/31		350		358
Wells Fargo & Co.,
2.57%, 2/11/31		500		503
5.01%, 4/4/51		300		385
				22,334
				49,719
Mortgages — Other (0.5%)
Netherlands (0.1%)
E-MAC NL 2006-II BV,
3 Month EURIBOR + 0.13%, 0.68%, 1/25/39 (c)	EUR	218		245
United Kingdom (0.1%)
Great Hall Mortgages No 1 PLC,
0.00%, 6/18/38 (c)		200		224
Landmark Mortgage Securities No 3 PLC,
3 Month GBP LIBOR + 2.10%, 2.13%, 4/17/44 (c)	GBP	241		330
				554
United States (0.3%)
Banc of America Alternative Loan Trust,
6.36%, 10/25/36	$	26		12
ChaseFlex Trust,
6.00%, 2/25/37		22		13
Federal Home Loan Mortgage Corporation,
3.00%, 9/25/45 - 5/25/47		485		484
3.50%, 5/25/45 - 7/25/46		199		202
4.00%, 5/25/45		19		19
GSR Mortgage Loan Trust,
5.75%, 1/25/37		10		8
Lehman Mortgage Trust,
6.50%, 9/25/37		17		8
Seasoned Credit Risk Transfer Trust,
3.00%, 7/25/58 - 10/25/58		357		373
4.00%, 10/25/58		41		45
				1,164
				1,963
Sovereign (21.5%)
Australia (1.1%)
Australia Government Bond,
0.25%, 11/21/24 - 11/21/25	AUD	4,740		3,559
2.50%, 5/21/30		390		318
2.75%, 11/21/29		830		692
				4,569
Austria (0.1%)
Republic of Austria Government Bond,
Zero Coupon, 2/20/30 (b)	EUR	280		333

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Belgium (0.4%)
Kingdom of Belgium Government Bond,
0.90%, 6/22/29 (b)	EUR	130	$	167
1.70%, 6/22/50 (b)		370		539
1.90%, 6/22/38 (b)		590		865
				1,571
Brazil (2.0%)
Brazil Letras do Tesouro Nacional,
Zero Coupon, 1/1/24	BRL	57,000		8,243
Canada (1.3%)
Canadian Government Bond,
2.25%, 6/1/29	CAD	5,410		4,602
Province of Quebec Canada,
1.35%, 5/28/30	$	950		904
				5,506
China (1.8%)
Agricultural Development Bank of China,
2.25%, 4/22/25	CNY	2,850		416
3.79%, 10/26/30		2,710		419
China Development Bank,
3.07%, 3/10/30		5,380		786
3.34%, 7/14/25		2,710		413
China Government Bond,
3.13%, 11/21/29		20,150		3,050
3.27%, 11/19/30		5,070		779
3.81%, 9/14/50		380		59
3.86%, 7/22/49		6,000		940
Export-Import Bank of China (The),
2.93%, 3/2/25		2,740		411
				7,273
Colombia (0.0%)
Colombian TES Series B,
7.75%, 9/18/30	COP	479,600		138
Denmark (0.1%)
Denmark Government Bond,
0.50%, 11/15/27	DKK	2,330		388
Finland (0.1%)
Finland Government Bond,
1.13%, 4/15/34 (b)	EUR	290		386
France (1.2%)
Agence Francaise de Developpement EPIC,
1.50%, 10/31/34		400		535
French Republic Government Bond OAT,
0.00%, 11/25/29		2,350		2,792
2.00%, 5/25/48 (b)		670		1,038
SNCF Reseau,
1.88%, 3/30/34		400		554
				4,919
Germany (1.1%)
Bundesrepublik Deutschland Bundesanleihe,
0.25%, 2/15/29		2,210		2,739

	Face Amount (000)		Value (000)
4.25%, 7/4/39	EUR	140	$	292
4.75%, 7/4/34		70		137
State of North Rhine-Westphalia Germany,
1.65%, 2/22/38		1,030		1,455
				4,623
Greece (2.6%)
Hellenic Republic Government Bond,
3.75%, 1/30/28		7,463		10,672
Hong Kong (0.1%)
Hong Kong Government International Bond,
2.50%, 5/28/24 (b)	$	250		266
Hungary (0.0%)
Hungary Government Bond,
3.00%, 8/21/30	HUF	18,150		62
Indonesia (0.2%)
Indonesia Government International Bond,
1.75%, 4/24/25	EUR	440		539
Indonesia Treasury Bond,
6.50%, 2/15/31	IDR	2,000,000		135
8.25%, 5/15/29		1,408,000		106
8.38%, 3/15/34		3,572,000		270
				1,050
Ireland (0.1%)
Ireland Government Bond,
0.20%, 10/18/30	EUR	320		384
Italy (0.9%)
Italy Buoni Poliennali Del Tesoro,
1.40%, 5/26/25 (b)		202		253
1.85%, 7/1/25 (b)		1,520		1,928
2.45%, 9/1/50 (b)		970		1,353
				3,534
Japan (4.6%)
Japan Government Five Year Bond,
0.10%, 6/20/24	JPY	470,000		4,276
Japan Government Ten Year Bond,
0.10%, 6/20/26 - 6/20/29		746,000		6,792
Japan Government Thirty Year Bond,
0.30%, 6/20/46		161,000		1,357
0.40%, 9/20/49		83,000		701
1.70%, 6/20/33		266,000		2,840
2.00%, 9/20/40		272,000		3,155
				19,121
Korea, Republic of (0.5%)
Export-Import Bank of Korea,
0.63%, 2/9/26	$	440		428
2.38%, 6/25/24		510		539
Korea Development Bank (The),
0.80%, 7/19/26		590		577
Korea International Bond,
2.00%, 6/19/24		350		367
				1,911

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Malaysia (0.3%)
Malaysia Government Bond,
3.89%, 8/15/29	MYR	1,810	$	455
Petronas Capital Ltd.,
3.50%, 3/18/25 (b)	$	675		730
				1,185
Mexico (0.3%)
Mexican Bonos,
Series M
7.50%, 6/3/27	MXN	6,000		313
7.75%, 5/29/31		5,000		261
8.50%, 5/31/29		1,900		104
Mexico Government International Bond,
4.50%, 4/22/29	$	330		367
Petroleos Mexicanos,
6.95%, 1/28/60		105		90
				1,135
Netherlands (0.3%)
Nederlandse Waterschapsbank,
1.00%, 5/28/30 (b)	EUR	376		349
Netherlands Government Bond,
0.00%, 7/15/30 (b)		750		899
2.75%, 1/15/47 (b)		70		134
				1,382
New Zealand (0.1%)
New Zealand Government Bond,
0.25%, 5/15/28	NZD	320		207
Nigeria (0.1%)
Africa Finance Corp.,
4.38%, 4/17/26 (b)	$	200		217
Norway (0.0%)
Norway Government Bond,
1.38%, 8/19/30 (b)	NOK	840		98
Poland (0.1%)
Republic of Poland Government Bond,
2.50%, 7/25/27	PLN	870		239
Portugal (0.1%)
Portugal Obrigacoes do Tesouro OT,
0.70%, 10/15/27 (b)	EUR	420		519
Russia (0.1%)
Russian Federal Bond — OFZ,
7.95%, 10/7/26	RUB	22,410		314
Spain (0.5%)
Spain Government Bond,
1.25%, 10/31/30 (b)	EUR	1,260		1,615
2.70%, 10/31/48 (b)		320		508
3.45%, 7/30/66 (b)		90		169
				2,292

	Face Amount (000)		Value (000)
Sweden (0.1%)
Sweden Government Bond,
0.75%, 5/12/28	SEK	1,690	$	202
1.00%, 11/12/26		1,440		174
				376
United Kingdom (1.3%)
United Kingdom Gilt,
0.38%, 10/22/30	GBP	580		763
0.63%, 10/22/50		470		529
1.63%, 10/22/28		1,120		1,655
3.50%, 1/22/45		650		1,283
4.25%, 9/7/39		510		1,048
				5,278
				88,191
Supranational (1.0%)
European Investment Bank,
0.20%, 7/15/24	EUR	760		915
International Bank for Reconstruction & Development,
SOFR + 0.43%, 0.45%, 8/19/27 (c)	AUD	1,290		1,298
2.20%, 2/27/24		2,400		1,915
				4,128
U.S. Treasury Securities (3.0%)
United States (3.0%)
U.S. Treasury Bonds,
1.13%, 5/15/40	$	3,030		2,473
1.25%, 5/15/50		1,270		959
1.50%, 2/15/30		780		771
1.88%, 7/31/22		3,700		3,787
2.13%, 5/15/25		750		794
2.50%, 2/15/45		1,320		1,348
3.13%, 5/15/48		2,000		2,295
				12,427
Total Fixed Income Securities (Cost $169,972)				174,615
	Shares
Common Stocks (45.1%)
Australia (1.3%)
AGL Energy Ltd.		2,839		21
Alumina Ltd.		10,308		14
Amcor PLC CDI		4,870		57
AMP Ltd.		12,339		12
Ampol Ltd.		1,156		22
APA Group		4,577		35
Aristocrat Leisure Ltd.		2,236		58
ASX Ltd.		793		43
Aurizon Holdings Ltd.		8,490		25
AusNet Services		9,005		13
Australia & New Zealand Banking Group Ltd.		14,253		305
Bank of Queensland Ltd.		2,121		14
Bendigo & Adelaide Bank Ltd.		2,788		21
BHP Group Ltd.		32,260		1,110

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Australia (cont'd)
Boral Ltd. (f)		5,167	$	21
Brambles Ltd.		6,675		54
Challenger Ltd.		2,700		13
CIMIC Group Ltd. (f)		482		6
Coca-Cola Amatil Ltd.		2,643		27
Cochlear Ltd.		236		38
Coles Group Ltd.		4,680		57
Commonwealth Bank of Australia		6,945		454
Computershare Ltd.		2,016		23
Crown Resorts Ltd. (f)		1,581		14
CSL Ltd.		1,784		359
Dexus REIT		4,008		30
Domino's Pizza Enterprises Ltd.		283		21
Flight Centre Travel Group Ltd. (f)		309		4
Fortescue Metals Group Ltd.		19,573		297
Goodman Group REIT		7,549		104
GPT Group (The) REIT		7,767		27
Harvey Norman Holdings Ltd.		2,707		12
Incitec Pivot Ltd. (f)		7,322		16
Insurance Australia Group Ltd.		9,758		35
James Hardie Industries PLC CDI		1,872		57
Lend Lease Group REIT		2,377		23
Macquarie Group Ltd.		1,301		151
Medibank Pvt Ltd.		11,358		24
Mirvac Group REIT		15,390		29
National Australia Bank Ltd.		13,314		263
Newcrest Mining Ltd.		3,128		58
Oil Search Ltd.		5,861		18
OneMarket Ltd. (f)		390		—
Orica Ltd.		1,614		17
Origin Energy Ltd.		7,216		26
Qantas Airways Ltd. (f)		1,704		7
QBE Insurance Group Ltd.		6,684		49
Ramsay Health Care Ltd.		572		29
REA Group Ltd.		244		26
Rio Tinto Ltd.		1,740		146
Santos Ltd.		7,600		41
Scentre Group REIT		22,321		48
Seek Ltd. (f)		1,438		31
Shopping Centres Australasia Property Group REIT		61		—	@
Sonic Healthcare Ltd.		1,754		47
South32 Ltd.		21,732		46
Stockland REIT		11,153		37
Suncorp Group Ltd.		5,329		40
Sydney Airport (f)		4,743		22
Tabcorp Holdings Ltd.		8,379		30
Telstra Corp., Ltd.		17,769		46
TPG Telecom Ltd.		1,682		8
Transurban Group		8,503		86
Treasury Wine Estates Ltd.		3,156		25
Tuas Ltd. (f)		904		—	@

	Shares		Value (000)
Vicinity Centres REIT		14,354	$	18
Vocus Group Ltd. (f)		2,719		11
Wesfarmers Ltd.		4,680		187
Westpac Banking Corp.		14,258		264
Woodside Petroleum Ltd.		3,435		63
Woolworths Group Ltd.		5,535		172
				5,507
Austria (0.0%)
IMMOFINANZ AG (f)		332		7
voestalpine AG		1,205		50
				57
Belgium (0.1%)
Ageas		751		45
Anheuser-Busch InBev SA N.V.		3,075		194
Colruyt SA		239		14
Groupe Bruxelles Lambert SA		320		33
KBC Group N.V. (f)		1,004		73
Proximus SADP		606		13
Solvay SA		296		37
Telenet Group Holding N.V.		212		9
UCB SA		499		47
Umicore SA		746		40
				505
Brazil (0.1%)
Vale SA		22,805		397
Canada (1.7%)
Agnico Eagle Mines Ltd.		1,200		69
Alimentation Couche-Tard, Inc., Class B		3,462		112
AltaGas Ltd.		1,100		18
ARC Resources Ltd.		1,345		8
Atco Ltd., Class I		600		20
Bank of Montreal		2,898		258
Bank of Nova Scotia (The)		4,911		307
Barrick Gold Corp. (LSE)		2,532		50
Barrick Gold Corp. (NYSE)		3,826		76
Bausch Health Cos., Inc. (f)		1,400		44
BCE, Inc.		1,100		50
Bombardier, Inc., Class B (f)		9,698		7
Brookfield Asset Management, Inc., Class A		5,019		223
CAE, Inc.		1,300		37
Cameco Corp.		1,634		27
Canadian Imperial Bank of Commerce		1,438		141
Canadian National Railway Co.		3,176		369
Canadian Natural Resources Ltd.		4,429		137
Canadian Pacific Railway Ltd.		1,100		420
Canadian Tire Corp., Ltd., Class A		600		85
Canadian Utilities Ltd., Class A		1,000		27
CCL Industries, Inc., Class B		1,200		66
Cenovus Energy, Inc.		4,301		32
CGI, Inc. (f)		1,200		100
CI Financial Corp.		1,100		16
Constellation Software, Inc.		100		140

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
Crescent Point Energy Corp.		2,613	$	11
Dollarama, Inc.		1,700		75
Eldorado Gold Corp. (f)		738		8
Element Fleet Management Corp.		1,838		20
Emera, Inc.		500		22
Empire Co., Ltd., Class A		1,100		34
Enbridge, Inc.		3,947		144
Fairfax Financial Holdings Ltd.		100		44
Finning International, Inc.		1,100		28
First Quantum Minerals Ltd.		2,794		53
Fortis, Inc.		1,634		71
Franco-Nevada Corp.		1,100		138
George Weston Ltd.		631		56
Gildan Activewear, Inc.		1,300		40
Great-West Lifeco, Inc.		1,200		32
H&R Real Estate Investment Trust REIT		1,100		12
Hydro One Ltd.		1,100		26
IA Financial Corp., Inc.		800		44
IGM Financial, Inc.		700		21
Imperial Oil Ltd.		1,156		28
Intact Financial Corp.		1,000		123
Inter Pipeline Ltd.		1,545		22
Keyera Corp.		1,100		23
Kinross Gold Corp.		4,714		31
Linamar Corp.		500		29
Loblaw Cos., Ltd.		1,373		77
Magna International, Inc.		1,338		118
Manulife Financial Corp.		7,883		170
Methanex Corp.		700		26
Metro, Inc.		1,200		55
National Bank of Canada		1,400		95
Nutrien Ltd.		2,769		149
Onex Corp.		700		44
Open Text Corp.		1,100		52
Pembina Pipeline Corp.		2,258		65
Peyto Exploration & Development Corp.		1,200		5
Power Corp. of Canada		2,412		63
PrairieSky Royalty Ltd.		977		11
Restaurant Brands International, Inc.		1,200		78
RioCan REIT		1,100		17
Rogers Communications, Inc., Class B		1,442		67
Royal Bank of Canada		5,667		523
Saputo, Inc.		1,300		39
Seven Generations Energy Ltd., Class A (f)		1,400		9
Shaw Communications, Inc., Class B		1,634		42
SmartCentres Real Estate Investment Trust REIT		600		13
SNC-Lavalin Group, Inc.		1,100		24
Sun Life Financial, Inc.		2,605		132
Suncor Energy, Inc.		6,788		142
TC Energy Corp.		3,362		154
Teck Resources Ltd., Class B		2,409		46

	Shares		Value (000)
TELUS Corp.		1,800	$	36
Thomson Reuters Corp.		1,389		122
Topicus.com, Inc. (f)		185		12
Toronto-Dominion Bank (The)		7,209		470
Tourmaline Oil Corp.		1,200		23
Trisura Group Ltd. (f)		27		3
Turquoise Hill Resources Ltd. (f)		534		9
Vermilion Energy, Inc.		800		6
West Fraser Timber Co., Ltd.		600		43
Wheaton Precious Metals Corp.		1,831		70
Yamana Gold, Inc.		3,562		15
				6,999
China (0.0%)
Brilliance China Automotive Holdings Ltd. (g)		6,621		6
BYD Co., Ltd. H Shares (g)		2,005		43
China Common Rich Renewable Energy Investments Ltd. (f)		42,000		—
Dongfeng Motor Group Co., Ltd. H Shares (g)		5,898		6
Geely Automobile Holdings Ltd. (g)		12,879		33
Great Wall Motor Co., Ltd. H Shares (g)		7,330		20
Guangzhou Automobile Group Co., Ltd. H Shares (g)		6,426		5
Wharf Holdings Ltd. (The) (g)		13,200		35
Yadea Group Holdings Ltd. (g)		2,295		5
				153
Denmark (0.4%)
AP Moller — Maersk A/S Series A		13		28
AP Moller — Maersk A/S Series B		27		63
Carlsberg A/S Series B		51		8
Coloplast A/S Series B		61		9
Danske Bank A/S		2,908		55
Drilling Co of 1972 A/S (The) (f)		104		4
DSV Panalpina A/S		1,658		325
Novo Nordisk A/S Series B		9,366		635
Novozymes A/S Series B		1,333		85
Vestas Wind Systems A/S		1,677		344
				1,556
Finland (0.2%)
Elisa Oyj		601		36
Fortum Oyj		1,836		49
Kone Oyj, Class B		1,416		116
Metso Outotec Oyj		2,033		23
Neles Oyj		473		6
Neste Oyj		1,646		87
Nokian Renkaat Oyj		486		18
Nordea Bank Abp (OMXH)		194		2
Nordea Bank Abp (SSE)		13,037		128
Orion Oyj, Class B		439		17
Sampo Oyj, Class A		1,873		84
Stora Enso Oyj, Class R		2,345		44
UPM-Kymmene Oyj		2,245		81
Wartsila Oyj Abp		1,880		20
				711

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
France (2.7%)
Accor SA (f)		8,882	$	335
Aeroports de Paris (f)		7,632		912
Air Liquide SA		1,936		316
Airbus SE (f)		2,412		273
Alstom SA (f)		631		31
Amundi SA (f)		245		20
ArcelorMittal SA (f)		2,718		79
Arkema SA		279		34
Atos SE (f)		393		31
AXA SA		7,969		214
BioMerieux		172		22
BNP Paribas SA (f)		4,613		281
Bollore SA		3,563		17
Bouygues SA		876		35
Bureau Veritas SA (f)		1,088		31
Capgemini SE		660		112
Carrefour SA		2,338		42
Casino Guichard Perrachon SA (f)		226		8
Cie de Saint-Gobain (f)		2,095		124
Cie Generale des Etablissements Michelin SCA		702		105
CNP Assurances (f)		694		13
Covivio REIT		137		12
Credit Agricole SA (f)		4,654		67
Danone SA		2,491		171
Dassault Aviation SA (f)		11		12
Dassault Systemes SE		537		115
Edenred		915		48
Eiffage SA (f)		3,428		343
Electricite de France SA (f)		2,348		31
Engie SA (f)		7,578		108
EssilorLuxottica SA		851		139
Eurazeo SE (f)		194		15
Eurofins Scientific SE (f)		460		44
Eutelsat Communications SA		722		9
Faurecia SE (f)		530		28
Gecina SA REIT		195		27
Getlink SE (f)		1,904		29
Hermes International		130		144
ICADE REIT		137		10
Iliad SA		107		20
Imerys SA		153		7
Ipsen SA		155		13
JCDecaux SA (f)		304		8
Kering SA		313		216
Klepierre SA REIT		902		21
L'Oreal SA		1,040		399
Lagardere SCA (f)		490		13
Legrand SA		1,087		101
LVMH Moet Hennessy Louis Vuitton SE		1,154		769
Natixis SA (f)		3,881		19
Orange SA		8,178		101
Pernod Ricard SA		887		166

	Shares		Value (000)
Publicis Groupe SA		854	$	52
Remy Cointreau SA		95		18
Renault SA (f)		787		34
Rexel SA (f)		1,228		24
Safran SA (f)		1,368		186
Sanofi		4,584		453
Schneider Electric SE		2,332		356
SCOR SE (f)		706		24
SEB SA		103		18
SES SA		1,501		12
Societe BIC SA		117		7
Societe Generale SA (f)		3,139		82
Sodexo SA (f)		378		36
Stellantis		13,132		232
STMicroelectronics N.V.		2,775		106
Suez SA		1,805		38
Teleperformance		239		87
Thales SA		439		44
TOTAL SE		9,675		451
Ubisoft Entertainment SA (f)		260		20
Unibail-Rodamco-Westfield REIT (f)		408		33
Unibail-Rodamco-Westfield REIT CDI		2,974		12
Valeo SA		982		33
Veolia Environnement SA		2,032		52
Vinci SA		21,071		2,159
Vivendi SA		4,239		139
Wendel SA		115		14
Worldline SA (f)		156		13
				10,975
Germany (1.8%)
1&1 Drillisch AG		229		6
Adidas AG (f)		769		240
Allianz SE (Registered)		1,840		468
BASF SE		3,783		314
Bayer AG (Registered)		3,413		216
Bayerische Motoren Werke AG		2,086		216
Bayerische Motoren Werke AG (Preference)		352		28
Beiersdorf AG		416		44
Brenntag SE		639		55
Commerzbank AG (f)		4,353		27
Continental AG (f)		450		59
Covestro AG		662		44
Daimler AG (Registered)		5,816		518
Deutsche Bank AG (Registered) (f)		8,417		101
Deutsche Boerse AG		772		128
Deutsche Lufthansa AG (Registered) (f)		974		13
Deutsche Post AG (Registered)		3,982		218
Deutsche Telekom AG (Registered)		13,693		276
Deutsche Wohnen SE		1,453		68
E.ON SE		9,245		108
Evonik Industries AG		668		24
Fraport AG Frankfurt Airport Services Worldwide (f)		7,121		433

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Germany (cont'd)
Fresenius Medical Care AG & Co., KGaA		888	$	65
Fresenius SE & Co., KGaA		1,711		76
Fuchs Petrolub SE (Preference)		287		14
GEA Group AG		721		29
Hannover Rueck SE (Registered)		245		45
HeidelbergCement AG		623		57
Henkel AG & Co., KGaA		429		42
Henkel AG & Co., KGaA (Preference)		738		83
Hochtief AG		79		7
Hugo Boss AG		264		10
Infineon Technologies AG		4,808		204
K+S AG (Registered)		780		8
KION Group AG		294		29
LANXESS AG		377		28
Linde PLC		1,635		458
Linde PLC (f)		1,188		333
Merck KGaA		531		91
METRO AG		736		8
MTU Aero Engines AG		213		50
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)		636		196
OSRAM Licht AG (f)		408		25
Porsche Automobil Holding SE (Preference)		970		103
ProSiebenSat.1 Media SE (Registered) (f)		968		20
Puma SE (f)		261		26
QIAGEN N.V. (f)		896		43
RTL Group SA (f)		159		9
RWE AG		2,186		86
SAP SE		4,031		494
Schaeffler AG (Preference)		1,000		9
Siemens AG (Registered)		3,170		520
Siemens Energy AG (f)		1,585		57
Symrise AG		512		62
Telefonica Deutschland Holding AG		3,079		9
thyssenKrupp AG (f)		1,787		24
Uniper SE		829		30
United Internet AG (Registered)		503		20
Volkswagen AG		204		74
Volkswagen AG (Preference)		1,179		330
Vonovia SE		2,015		132
Wirecard AG (f)		496		—	@
Zalando SE (f)		465		46
				7,556
Greece (0.0%)
National Bank of Greece SA (f)		9		—	@
Hong Kong (0.5%)
AIA Group Ltd.		46,000		558
ASM Pacific Technology Ltd.		900		11
Bank of East Asia Ltd. (The)		5,594		12
BOC Hong Kong Holdings Ltd.		16,000		56
Cathay Pacific Airways Ltd. (f)		5,000		5
CK Asset Holdings Ltd.		11,364		69

	Shares		Value (000)
CK Hutchison Holdings Ltd.		9,364	$	75
CK Infrastructure Holdings Ltd.		3,500		21
CLP Holdings Ltd.		6,000		58
First Pacific Co., Ltd.		10,000		3
Galaxy Entertainment Group Ltd. (f)		9,000		81
Hang Lung Group Ltd.		5,000		13
Hang Lung Properties Ltd.		9,000		23
Hang Seng Bank Ltd.		3,300		64
Henderson Land Development Co., Ltd.		6,644		30
HK Electric Investments & HK Electric Investments Ltd.		10,500		10
HKT Trust & HKT Ltd.		10,000		14
Hong Kong & China Gas Co., Ltd.		45,561		72
Hong Kong Exchanges & Clearing Ltd.		4,940		291
Hongkong Land Holdings Ltd.		5,000		25
Hysan Development Co., Ltd.		4,000		16
I-CABLE Communications Ltd. (f)		7,559		—	@
Jardine Matheson Holdings Ltd.		900		59
Kerry Properties Ltd.		3,000		10
Link REIT		9,092		83
Melco Resorts & Entertainment Ltd. ADR		800		16
MGM China Holdings Ltd.		3,200		6
MTR Corp., Ltd.		5,937		34
New World Development Co. Ltd.		6,841		35
NWS Holdings Ltd.		7,000		7
Pacific Century Premium Developments Ltd. (f)		2,160		—	@
PCCW Ltd.		17,000		10
Power Assets Holdings Ltd.		5,000		29
Sands China Ltd. (f)		10,800		54
Shangri-La Asia Ltd. (f)		8,000		8
Sino Land Co., Ltd.		16,505		23
SJM Holdings Ltd.		8,000		10
Sun Hung Kai Properties Ltd.		5,504		83
Swire Pacific Ltd., Class A		2,000		15
Swire Properties Ltd.		5,150		16
Techtronic Industries Co., Ltd.		5,000		85
WH Group Ltd.		34,500		28
Wharf Real Estate Investment Co., Ltd.		11,200		63
Wynn Macau Ltd. (f)		6,400		12
Yue Yuen Industrial Holdings Ltd.		3,500		9
				2,202
Ireland (0.1%)
AIB Group PLC (f)		3,316		9
Bank of Ireland Group PLC (f)		3,768		18
CRH PLC		3,431		161
Flutter Entertainment PLC (f)		332		71
Kerry Group PLC, Class A		645		81
				340
Italy (0.5%)
Assicurazioni Generali SpA (f)		5,058		101
Atlantia SpA (f)		28,439		532
CNH Industrial N.V. (f)		4,274		66

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Italy (cont'd)
Davide Campari-Milano N.V.		2,426	$	27
Enel SpA		33,642		335
Eni SpA		10,436		129
EXOR N.V.		444		38
Ferrari N.V.		785		164
Intesa Sanpaolo SpA (f)		55,945		152
Leonardo SpA		1,685		14
Mediobanca Banca di Credito Finanziario SpA (f)		2,344		26
Poste Italiane SpA		2,151		27
Prysmian SpA		852		28
Recordati SpA		449		24
Snam SpA		9,450		52
Telecom Italia SpA (Milano)		71,769		39
Tenaris SA		1,951		22
Terna Rete Elettrica Nazionale SpA		5,867		44
UniCredit SpA (f)		8,182		87
UnipolSai Assicurazioni SpA		4,062		12
				1,919
Japan (0.2%)
Honda Motor Co., Ltd.		3,554		107
Isuzu Motors Ltd.		1,210		13
Mazda Motor Corp.		1,230		10
Nissan Motor Co., Ltd. (f)		5,066		28
Subaru Corp.		1,338		27
Suzuki Motor Corp.		804		36
Toyota Motor Corp.		4,625		360
Yamaha Motor Co., Ltd.		615		15
				596
Netherlands (0.6%)
ABN Amro Bank N.V. CVA (f)		1,755		21
Aegon N.V.		7,272		35
AerCap Holdings N.V. (f)		600		35
Akzo Nobel N.V.		923		103
ASML Holding N.V.		1,629		988
Basic-Fit N.V. (f)		3,193		123
Boskalis Westminster (f)		373		12
Coca-Cola European Partners PLC		900		47
Heineken Holding N.V.		475		42
Heineken N.V.		1,070		110
ING Groep N.V.		16,088		197
Koninklijke Ahold Delhaize N.V.		5,421		151
Koninklijke DSM N.V.		746		126
Koninklijke KPN N.V.		14,131		48
Koninklijke Philips N.V. (f)		3,947		225
Koninklijke Vopak N.V.		288		15
NN Group N.V.		1,251		61
Randstad N.V.		485		34
Wolters Kluwer N.V.		1,242		108
				2,481

	Shares		Value (000)
New Zealand (0.0%)
Auckland International Airport Ltd. (f)		5,890	$	32
Contact Energy Ltd.		4,269		21
Fletcher Building Ltd.		4,028		20
Mercury NZ Ltd.		4,136		19
Meridian Energy Ltd.		7,665		29
Ryman Healthcare Ltd.		2,256		24
Spark New Zealand Ltd.		11,038		34
				179
Norway (0.1%)
Akastor ASA (f)		892		1
Aker Carbon Capture AS (f)		669		1
Aker Offshore Wind AS (f)		669		1
Aker Solutions ASA (f)		1,560		3
DNB ASA		4,055		86
Equinor ASA		4,510		88
Norsk Hydro ASA		4,720		30
Orkla ASA		3,510		34
REC Silicon ASA (f)		649		2
Seadrill Ltd. (f)		1		—	@
Subsea 7 SA (f)		1,071		11
Telenor ASA		5,574		98
Yara International ASA		699		36
				391
Portugal (0.0%)
Galp Energia SGPS SA		2,600		30
Jeronimo Martins SGPS SA		2,786		47
Pharol SGPS SA (Registered) (f)		11,120		1
				78
South Africa (0.0%)
Nedbank Group Ltd.		633		6
Old Mutual Ltd.		19,716		17
				23
Spain (1.0%)
ACS Actividades de Construccion y Servicios SA		1,049		35
Aena SME SA (f)		12,229		1,983
Amadeus IT Group SA (f)		1,807		128
Banco Bilbao Vizcaya Argentaria SA		27,331		142
Banco de Sabadell SA		22,275		12
Banco Santander SA (f)		66,432		226
Bankinter SA		2,774		19
CaixaBank SA		17,690		55
Enagas SA		939		20
Endesa SA		1,308		35
Ferrovial SA		25,592		667
Grifols SA		1,228		32
Iberdrola SA		23,703		305
Industria de Diseno Textil SA		4,465		147
International Consolidated Airlines Group SA (f)		2,565		7
Mapfre SA		4,445		9
Melia Hotels International SA (f)		7,700		57
Naturgy Energy Group SA		1,452		36

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Spain (cont'd)
Red Electrica Corp., SA		1,793	$	32
Repsol SA		5,281		65
Siemens Gamesa Renewable Energy SA		1,000		39
Telefonica SA		18,669		84
Telepizza Group SA (f)		156		1
				4,136
Sweden (0.5%)
Alfa Laval AB (f)		1,274		39
Assa Abloy AB, Class B		4,340		125
Atlas Copco AB, Class A		2,881		175
Atlas Copco AB, Class B		1,677		87
Boliden AB		1,163		43
Electrolux AB, Class B		1,030		29
Electrolux Professional AB (f)		1,099		6
Epiroc AB, Class A		2,881		65
Epiroc AB, Class B		1,784		37
Essity AB, Class B		2,647		84
Getinge AB, Class B		1,053		29
Hennes & Mauritz AB, Class B (f)		4,002		90
Hexagon AB, Class B		1,108		102
Husqvarna AB, Class B		1,860		27
ICA Gruppen AB		370		18
Industrivarden AB, Class C (f)		791		28
Investor AB, Class B		2,000		159
Kinnevik AB (f)		1,071		52
L E Lundbergforetagen AB, Class B (f)		362		20
Lundin Petroleum AB		819		26
Millicom International Cellular SA SDR (f)		310		12
Modern Times Group MTG AB, Class B (f)		44		1
Nordic Entertainment Group AB, Class B (f)		44		2
Sandvik AB (f)		4,777		130
Securitas AB, Class B		1,370		23
Skandinaviska Enskilda Banken AB, Class A (f)		6,558		80
Skanska AB, Class B		1,458		37
SKF AB, Class B		1,635		46
Svenska Handelsbanken AB, Class A		6,476		70
Swedbank AB, Class A		3,877		68
Swedish Match AB		777		61
Tele2 AB, Class B		1,568		21
Telefonaktiebolaget LM Ericsson, Class B		13,580		180
Telia Co., AB		11,122		48
Volvo AB, Class B (f)		6,684		169
				2,189
Switzerland (1.5%)
ABB Ltd. (Registered)		14,349		434
Adecco Group AG (Registered)		580		39
Alcon, Inc. (f)		1,805		126
Cie Financiere Richemont SA (Registered)		2,038		196
Credit Suisse Group AG (Registered)		6,768		71
Geberit AG (Registered)		344		219
Givaudan SA (Registered)		41		158

	Shares		Value (000)
Idorsia Ltd. (f)		481	$	13
Julius Baer Group Ltd. (f)		971		62
Kuehne & Nagel International AG (Registered)		309		88
LafargeHolcim Ltd. (Registered) (f) (Euronext)		1,752		103
LafargeHolcim Ltd. (Registered) (f) (SIX)		159		9
Lonza Group AG (Registered) (f)		215		120
Nestle SA (Registered)		14,983		1,670
Novartis AG (Registered)		9,272		792
Roche Holding AG (Genusschein)		2,524		816
SGS SA (Registered)		24		68
Sonova Holding AG (Registered) (f)		399		106
Swatch Group AG (The)		147		42
Swiss Re AG		568		56
Swisscom AG (Registered)		286		153
Transocean Ltd. (f)		1,913		7
UBS Group Funding Switzerland AG (Registered)		11,656		181
Zurich Insurance Group AG		995		425
				5,954
United Kingdom (2.6%)
3i Group PLC		4,087		65
Admiral Group PLC		845		36
Anglo American PLC		5,302		208
Antofagasta PLC		1,719		40
Ashtead Group PLC		2,118		126
Associated British Foods PLC (f)		1,501		50
AstraZeneca PLC		5,043		504
Auto Trader Group PLC (f)		4,386		33
Aviva PLC		17,227		97
Babcock International Group PLC (f)		1,273		4
BAE Systems PLC		13,390		93
Barclays PLC		67,582		173
Barratt Developments PLC (f)		4,173		43
Berkeley Group Holdings PLC		545		33
BHP Group PLC		8,750		253
BP PLC		77,715		316
British American Tobacco PLC		8,951		342
British Land Co., PLC (The) REIT		4,241		29
BT Group PLC (f)		35,924		77
Bunzl PLC		1,407		45
Burberry Group PLC (f)		1,856		49
Capita PLC (f)		3,863		2
Carnival PLC		822		18
Centrica PLC (f)		22,964		17
Coca-Cola HBC AG		816		26
Compass Group PLC (f)		6,241		126
ConvaTec Group PLC		6,055		16
Croda International PLC		537		47
DCC PLC		387		34
Diageo PLC		9,890		408
Direct Line Insurance Group PLC		5,712		25
Dixons Carphone PLC (f)		4,797		9
easyJet PLC (f)		750		10

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Experian PLC		4,000	$	138
Ferguson PLC		1,040		124
Fresnillo PLC		1,019		12
G4S PLC (f)		6,550		22
GlaxoSmithKline PLC		19,530		347
Glencore PLC (f)		48,743		191
Hammerson PLC REIT		793		—	@
Hargreaves Lansdown PLC		1,132		24
Hikma Pharmaceuticals PLC		611		19
HSBC Holdings PLC		79,791		465
IMI PLC		1,184		22
Imperial Brands PLC		3,680		76
InterContinental Hotels Group PLC (f)		5,583		383
Intertek Group PLC		691		53
Intu Properties PLC REIT (f)		5,299		—	@
Investec PLC		3,178		10
ITV PLC (f)		15,504		26
J Sainsbury PLC		7,064		24
Johnson Matthey PLC		818		34
Kingfisher PLC (f)		9,010		39
Land Securities Group PLC REIT		3,201		30
Legal & General Group PLC		25,311		97
Lloyds Banking Group PLC (f)		284,652		167
London Stock Exchange Group PLC		1,361		130
M&G PLC		10,500		30
Marks & Spencer Group PLC (f)		7,366		15
Mediclinic International PLC (f)		1,785		7
Meggitt PLC (f)		3,426		23
Melrose Industries PLC (f)		15,581		36
Micro Focus International PLC		1,395		11
Mondi PLC		1,540		39
National Grid PLC		13,456		160
Next PLC (f)		601		65
Ninety One PLC		1,589		5
Paragon Offshore PLC (f)(h)		303		—
Pearson PLC		3,575		38
Persimmon PLC		1,279		52
Provident Financial PLC (f)		917		3
Prudential PLC		10,248		218
Quilter PLC		7,228		16
Reckitt Benckiser Group PLC		2,670		239
RELX PLC (Euronext N.V.)		4,366		110
RELX PLC (LSE)		4,550		114
Rio Tinto PLC		11,787		902
Rolls-Royce Holdings PLC (f)		7,183		10
Royal Bank of Scotland Group PLC		15,066		41
Royal Dutch Shell PLC, Class A		17,778		346
Royal Dutch Shell PLC, Class B		14,892		274
Royal Mail PLC (f)		4,129		29
RSA Insurance Group PLC		4,761		45
Sage Group PLC (The)		4,613		39
Schroders PLC		539		26

	Shares		Value (000)
Segro PLC REIT		4,222	$	55
Severn Trent PLC		1,048		33
Smith & Nephew PLC		3,728		71
Smiths Group PLC		1,685		36
SSE PLC		4,269		86
St. James's Place PLC		2,253		40
Standard Chartered PLC		14,078		97
Standard Life Aberdeen PLC		9,833		39
Tate & Lyle PLC		1,994		21
Taylor Wimpey PLC (f)		14,012		35
Tesco PLC		28,434		90
Travis Perkins PLC (f)		1,099		23
TUI AG (f)		2,014		10
Unilever PLC		6,121		341
Unilever PLC CVA		5,039		282
United Utilities Group PLC		2,869		37
Vodafone Group PLC		105,901		193
Weir Group PLC (The) (f)		952		23
Whitbread PLC (f)		5,251		248
Wm Morrison Supermarkets PLC		9,000		23
WPP PLC		5,435		69
				10,532
United States (29.2%)
3M Co.		1,701		328
Abbott Laboratories		5,134		615
AbbVie, Inc.		5,194		562
ABIOMED, Inc. (f)		264		84
Accenture PLC, Class A		1,855		512
Activision Blizzard, Inc.		2,093		195
Acuity Brands, Inc.		338		56
Adobe, Inc. (f)		1,527		726
Advance Auto Parts, Inc.		349		64
Advanced Micro Devices, Inc. (f)		2,901		228
AES Corp. (The)		2,445		66
Affiliated Managers Group, Inc.		383		57
Aflac, Inc.		2,234		114
Agilent Technologies, Inc.		1,017		129
AGNC Investment Corp. REIT		1,884		32
Air Products & Chemicals, Inc.		679		191
Akamai Technologies, Inc. (f)		476		49
Alaska Air Group, Inc.		1,704		118
Albemarle Corp.		364		53
Alexandria Real Estate Equities, Inc. REIT		297		49
Alexion Pharmaceuticals, Inc. (f)		596		91
Align Technology, Inc. (f)		270		146
Alkermes PLC (f)		449		8
Alleghany Corp. (f)		51		32
Allegiant Travel Co.		220		54
Allegion PLC		331		42
Alliance Data Systems Corp.		368		41
Alliant Energy Corp.		640		35
Allstate Corp. (The)		1,069		123

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Ally Financial, Inc.		1,601	$	72
Alnylam Pharmaceuticals, Inc. (f)		343		48
Alphabet, Inc., Class A (f)		759		1,565
Alphabet, Inc., Class C (f)		1,113		2,302
Altice USA, Inc., Class A (f)		1,577		51
Altria Group, Inc.		5,425		278
Amazon.com, Inc. (f)		1,268		3,923
Amcor PLC		4,738		55
AMERCO		31		19
Ameren Corp.		669		54
American Airlines Group, Inc.		292		7
American Electric Power Co., Inc.		1,553		132
American Express Co.		2,033		288
American Financial Group, Inc.		367		42
American International Group, Inc.		2,447		113
American Tower Corp. REIT		1,264		302
American Water Works Co., Inc.		443		66
Ameriprise Financial, Inc.		378		88
AmerisourceBergen Corp.		458		54
AMETEK, Inc.		593		76
Amgen, Inc.		1,733		431
Amphenol Corp., Class A		1,480		98
Analog Devices, Inc.		1,287		200
Annaly Capital Management, Inc. REIT		5,134		44
ANSYS, Inc. (f)		296		101
Anthem, Inc.		684		246
AO Smith Corp.		587		40
Aon PLC		646		149
APA Corp.		1,419		25
Apple, Inc.		53,628		6,551
Applied Materials, Inc.		2,790		373
Aptiv PLC		691		95
Aramark		868		33
Arch Capital Group Ltd. (f)		1,619		62
Archer-Daniels-Midland Co.		1,559		89
Arconic Corp. (f)		457		12
Arista Networks, Inc. (f)		285		86
Arrow Electronics, Inc. (f)		393		44
Arthur J Gallagher & Co.		650		81
Assurant, Inc.		317		45
AT&T, Inc.		20,732		628
Athene Holding Ltd., Class A (f)		470		24
Atmos Energy Corp.		315		31
Autodesk, Inc. (f)		679		188
Autoliv, Inc.		384		36
Automatic Data Processing, Inc.		1,347		254
AutoZone, Inc. (f)		87		122
AvalonBay Communities, Inc. REIT		489		90
Avery Dennison Corp.		302		55
Axalta Coating Systems Ltd. (f)		838		25
Baker Hughes Co.		1,908		41
Ball Corp.		1,141		97

	Shares		Value (000)
Bank of America Corp.		26,464	$	1,024
Bank of New York Mellon Corp. (The)		2,449		116
Baxter International, Inc.		1,530		129
Becton Dickinson & Co.		659		160
Berkshire Hathaway, Inc., Class B (f)		3,608		922
Best Buy Co., Inc.		639		73
Biogen, Inc. (f)		593		166
BioMarin Pharmaceutical, Inc. (f)		628		47
BlackRock, Inc.		320		241
Boeing Co. (The)		1,580		402
Booking Holdings, Inc. (f)		158		368
BorgWarner, Inc.		813		38
Boston Properties, Inc. REIT		645		65
Boston Scientific Corp. (f)		3,963		153
Brighthouse Financial, Inc. (f)		368		16
Bristol-Myers Squibb Co.		6,722		424
Broadcom, Inc.		1,073		498
Broadridge Financial Solutions, Inc.		307		47
Brown-Forman Corp., Class B		887		61
Bunge Ltd.		593		47
Burlington Stores, Inc. (f)		332		99
Cabot Oil & Gas Corp.		21,135		397
Cadence Design Systems, Inc. (f)		700		96
Camden Property Trust REIT		441		48
Campbell Soup Co.		584		29
Capital One Financial Corp.		1,447		184
Capri Holdings Ltd. (f)		611		31
Cardinal Health, Inc.		754		46
CarMax, Inc. (f)		596		79
Carnival Corp.		1,668		44
Carrier Global Corp.		2,957		125
Caterpillar, Inc.		1,697		393
Cboe Global Markets, Inc.		391		39
CBRE Group, Inc., Class A (f)		1,332		105
CDK Global, Inc.		434		23
CDW Corp.		512		85
Celanese Corp.		341		51
Centene Corp. (f)		2,062		132
CenterPoint Energy, Inc.		1,975		45
Cerner Corp.		1,049		75
CF Industries Holdings, Inc.		966		44
CH Robinson Worldwide, Inc.		469		45
Charles Schwab Corp. (The)		4,527		295
Charter Communications, Inc., Class A (f)		453		280
Chemours Co. (The)		464		13
Cheniere Energy, Inc. (f)		612		44
Chevron Corp.		5,648		592
Chipotle Mexican Grill, Inc. (f)		92		131
Choice Hotels International, Inc.		1,376		148
Chubb Ltd.		1,420		224
Church & Dwight Co., Inc.		667		58
Cigna Corp.		1,021		247
Cimarex Energy Co.		354		21

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Cincinnati Financial Corp.		447	$	46
Cintas Corp.		313		107
Cisco Systems, Inc.		12,642		654
CIT Group, Inc.		377		19
Citigroup, Inc.		6,693		487
Citizens Financial Group, Inc.		1,648		73
Citrix Systems, Inc.		360		51
Clorox Co. (The)		346		67
CME Group, Inc.		1,264		258
CMS Energy Corp.		708		43
Coca-Cola Co. (The)		11,834		624
Cognex Corp.		595		49
Cognizant Technology Solutions Corp., Class A		1,626		127
Colgate-Palmolive Co.		2,280		180
Comcast Corp., Class A		13,030		705
Comerica, Inc.		632		45
CommScope Holding Co., Inc. (f)		668		10
Conagra Brands, Inc.		1,309		49
ConocoPhillips		61,231		3,243
Consolidated Edison, Inc.		1,041		78
Constellation Brands, Inc., Class A		582		133
Continental Resources, Inc.		431		11
Cooper Cos., Inc. (The)		277		106
Copart, Inc. (f)		621		67
Corning, Inc.		2,238		97
Corteva, Inc.		2,110		98
CoStar Group, Inc. (f)		329		270
Costco Wholesale Corp.		1,343		473
Coty, Inc., Class A		1,260		11
Crown Castle International Corp. REIT		1,281		221
Crown Holdings, Inc.		478		46
CSX Corp.		2,104		203
Cummins, Inc.		518		134
CVS Health Corp.		3,639		274
Danaher Corp.		1,863		419
Darden Restaurants, Inc.		429		61
DaVita, Inc. (f)		435		47
Deere & Co.		757		283
Dell Technologies, Inc., Class C (f)		441		39
Delta Air Lines, Inc.		8,206		396
DENTSPLY SIRONA, Inc.		880		56
Devon Energy Corp.		27,119		593
DexCom, Inc. (f)		327		118
Diamondback Energy, Inc.		641		47
Digital Realty Trust, Inc. REIT		636		90
Discover Financial Services		1,155		110
Discovery, Inc., Class A (f)		441		19
Discovery, Inc., Class C (f)		1,444		53
DISH Network Corp., Class A (f)		805		29
DocuSign, Inc. (f)		264		53
Dollar General Corp.		623		126
Dollar Tree, Inc. (f)		636		73

	Shares		Value (000)
Dominion Energy, Inc.		2,333	$	177
Domino's Pizza, Inc.		336		124
Dover Corp.		504		69
Dow, Inc.		2,105		135
DR Horton, Inc.		1,119		100
Dropbox, Inc., Class A (f)		671		18
DTE Energy Co.		446		59
Duke Energy Corp.		2,086		201
Duke Realty Corp. REIT		1,268		53
DuPont de Nemours, Inc.		2,074		160
DXC Technology Co.		828		26
East West Bancorp, Inc.		592		44
Eastman Chemical Co.		477		53
Eaton Corp., PLC		1,358		188
eBay, Inc.		2,447		150
Ecolab, Inc.		622		133
Edison International		1,149		67
Edwards Lifesciences Corp. (f)		2,244		188
Elanco Animal Health, Inc. (f)		880		26
Electronic Arts, Inc.		763		103
Eli Lilly & Co.		2,754		515
Emerson Electric Co.		1,714		155
Empire State Realty Trust, Inc., Class A REIT		15,914		177
Entergy Corp.		471		47
EOG Resources, Inc.		1,648		120
EPAM Systems, Inc. (f)		292		116
Equifax, Inc.		325		59
Equinix, Inc. REIT		285		194
Equitable Holdings, Inc.		1,031		34
Equity Lifestyle Properties, Inc. REIT		470		30
Equity Residential REIT		1,306		94
Erie Indemnity Co., Class A		90		20
Essex Property Trust, Inc. REIT		332		90
Estee Lauder Cos., Inc. (The), Class A		664		193
Everest Re Group Ltd.		343		85
Evergy, Inc.		700		42
Eversource Energy		1,025		89
Exact Sciences Corp. (f)		451		59
Exelon Corp.		2,835		124
Expedia Group, Inc.		425		73
Expeditors International of Washington, Inc.		596		64
Extended Stay America, Inc. (Units) (i)		4,528		89
Extra Space Storage, Inc. REIT		349		46
Exxon Mobil Corp.		12,019		671
F5 Networks, Inc. (f)		306		64
Facebook, Inc., Class A (f)		7,017		2,067
Factset Research Systems, Inc.		335		103
Fastenal Co.		1,571		79
Federal Realty Investment Trust REIT		362		37
FedEx Corp.		646		183
Fidelity National Financial, Inc.		965		39
Fidelity National Information Services, Inc.		1,616		227
Fifth Third Bancorp		2,302		86

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
First Republic Bank		456	$	76
FirstEnergy Corp.		1,579		55
Fiserv, Inc. (f)		1,688		201
FleetCor Technologies, Inc. (f)		303		81
Flex Ltd. (f)		2,000		37
FLIR Systems, Inc.		470		27
Flowserve Corp.		455		18
Fluor Corp.		478		11
FMC Corp.		364		40
Ford Motor Co. (f)		19,345		237
Fortinet, Inc. (f)		515		95
Fortive Corp.		747		53
Fortune Brands Home & Security, Inc.		485		46
Fox Corp., Class A		1,428		52
Fox Corp., Class B		604		21
Franklin Resources, Inc.		1,166		35
Freeport-McMoRan, Inc. (f)		3,892		128
Gap, Inc. (The) (f)		878		26
Garmin Ltd.		364		48
Gartner, Inc. (f)		317		58
General Dynamics Corp.		660		120
General Electric Co.		24,892		327
General Mills, Inc.		1,601		98
General Motors Co.		6,435		370
Genuine Parts Co.		608		70
Gilead Sciences, Inc.		3,584		232
Global Payments, Inc.		744		150
Globe Life, Inc.		374		36
GoDaddy, Inc., Class A (f)		607		47
Goldman Sachs Group, Inc. (The)		1,064		348
GrubHub, Inc. (f)		408		24
H&R Block, Inc.		822		18
Halliburton Co.		3,160		68
Hanesbrands, Inc.		1,449		29
Harley-Davidson, Inc.		452		18
Hartford Financial Services Group, Inc. (The)		1,263		84
Hasbro, Inc.		417		40
HCA Healthcare, Inc.		656		124
Healthpeak Properties, Inc. REIT		1,891		60
HEICO Corp.		353		44
HEICO Corp., Class A		370		42
Helmerich & Payne, Inc.		378		10
Henry Schein, Inc. (f)		620		43
Hershey Co. (The)		522		83
Hess Corp.		13,578		961
Hewlett Packard Enterprise Co.		4,856		76
Hilton Worldwide Holdings, Inc.		8,366		1,012
HollyFrontier Corp.		465		17
Hologic, Inc. (f)		643		48
Home Depot, Inc. (The)		3,232		987
Honeywell International, Inc.		2,052		445
Hormel Foods Corp.		743		36

	Shares		Value (000)
Host Hotels & Resorts, Inc. REIT		2,794	$	47
Howmet Aerospace, Inc.		1,631		52
HP, Inc.		4,424		140
Humana, Inc.		364		153
Huntington Bancshares, Inc.		3,952		62
Huntington Ingalls Industries, Inc.		346		71
Hyatt Hotels Corp., Class A		3,250		269
IAC/InterActiveCorp (f)		274		59
IDEX Corp.		266		56
IDEXX Laboratories, Inc. (f)		305		149
IHS Markit Ltd.		1,036		100
Illinois Tool Works, Inc.		1,026		227
Illumina, Inc. (f)		617		237
Incyte Corp. (f)		650		53
Ingersoll Rand, Inc. (f)		742		37
Ingredion, Inc.		434		39
Intel Corp.		12,677		811
Intercontinental Exchange, Inc.		1,610		180
International Business Machines Corp.		2,721		363
International Flavors & Fragrances, Inc.		356		50
International Paper Co.		1,030		56
Interpublic Group of Cos., Inc. (The)		1,436		42
Intuit, Inc.		709		272
Intuitive Surgical, Inc. (f)		311		230
Invesco Ltd.		1,570		40
Invitation Homes, Inc. REIT		1,668		53
Ionis Pharmaceuticals, Inc. (f)		464		21
IPG Photonics Corp. (f)		329		69
IQVIA Holdings, Inc. (f)		598		116
Iron Mountain, Inc. REIT		997		37
Jack Henry & Associates, Inc.		270		41
Jacobs Engineering Group, Inc.		485		63
Jazz Pharmaceuticals PLC (f)		307		50
JB Hunt Transport Services, Inc.		292		49
Jefferies Financial Group, Inc.		888		27
JetBlue Airways Corp. (f)		3,759		76
JM Smucker Co. (The)		302		38
Johnson & Johnson		7,615		1,252
Johnson Controls International PLC		2,301		137
Jones Lang LaSalle, Inc. (f)		279		50
JPMorgan Chase & Co.		9,616		1,464
Juniper Networks, Inc.		1,312		33
Kansas City Southern		353		93
Kellogg Co.		701		44
KeyCorp		3,647		73
Keysight Technologies, Inc. (f)		459		66
Kimberly-Clark Corp.		1,109		154
Kimco Realty Corp. REIT		1,685		32
Kinder Morgan, Inc.		5,744		96
KKR & Co., Inc., Class A		1,499		73
KLA Corp.		468		155
Knight-Swift Transportation Holdings, Inc.		439		21
Kohl's Corp.		471		28

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Kraft Heinz Co. (The)		1,955	$	78
Kroger Co. (The)		2,280		82
L Brands, Inc.		801		50
L3Harris Technologies, Inc.		673		136
Laboratory Corp. of America Holdings (f)		347		89
Lam Research Corp.		426		254
Lamb Weston Holdings, Inc.		620		48
Las Vegas Sands Corp.		1,025		62
Lear Corp.		303		55
Leggett & Platt, Inc.		452		21
Leidos Holdings, Inc.		590		57
Lennar Corp., Class A		696		70
Lennox International, Inc.		325		101
Liberty Broadband Corp., Class C (f)		276		41
Liberty Global PLC, Class A (f)		643		17
Liberty Global PLC Series C (f)		1,649		42
Liberty Media Corp-Liberty SiriusXM, Class A (f)		405		18
Liberty Media Corp-Liberty SiriusXM, Class C (f)		590		26
Liberty Media Corp.-Liberty Formula One, Class C (f)		813		35
Lincoln National Corp.		817		51
Live Nation Entertainment, Inc. (f)		621		53
LKQ Corp. (f)		1,288		55
Lockheed Martin Corp.		698		258
Loews Corp.		888		46
Lowe's Cos., Inc.		2,266		431
Lululemon Athletica, Inc. (f)		285		87
Lumen Technologies, Inc.		3,606		48
LyondellBasell Industries N.V., Class A		732		76
M&T Bank Corp.		361		55
Macerich Co. (The) REIT		413		5
Macy's, Inc.		1,048		17
ManpowerGroup, Inc.		407		40
Marathon Oil Corp.		2,955		32
Marathon Petroleum Corp.		1,960		105
Markel Corp. (f)		49		56
MarketAxess Holdings, Inc.		332		165
Marriott International, Inc., Class A		9,939		1,472
Marriott Vacations Worldwide Corp.		1,066		186
Marsh & McLennan Cos., Inc.		1,574		192
Martin Marietta Materials, Inc.		320		107
Marvell Technology Group Ltd.		1,689		83
Masco Corp.		723		43
Mastercard, Inc., Class A		2,838		1,010
Match Group, Inc. (f)		591		81
Maxim Integrated Products, Inc.		660		60
McCormick & Co., Inc.		464		41
McDonald's Corp.		2,116		474
McKesson Corp.		467		91
Medtronic PLC		3,965		468
MercadoLibre, Inc. (f)		352		518
Merck & Co., Inc.		7,459		575
MetLife, Inc.		2,260		137

	Shares		Value (000)
Mettler-Toledo International, Inc. (f)		89	$	103
MGM Resorts International		1,897		72
Microchip Technology, Inc.		626		97
Micron Technology, Inc. (f)		3,197		282
Microsoft Corp.		20,944		4,938
Mid-America Apartment Communities, Inc. REIT		305		44
Middleby Corp. (The) (f)		295		49
Mohawk Industries, Inc. (f)		415		80
Molson Coors Brewing Co., Class B		667		34
Mondelez International, Inc., Class A		3,907		229
MongoDB, Inc. (f)		316		85
Monster Beverage Corp. (f)		1,339		122
Moody's Corp.		604		180
Mosaic Co. (The)		1,562		49
Motorola Solutions, Inc.		476		90
MSCI, Inc.		297		125
Nasdaq, Inc.		308		45
National Retail Properties, Inc. REIT		471		21
Nektar Therapeutics (f)		610		12
NetApp, Inc.		867		63
Netflix, Inc. (f)		1,263		659
Newell Brands, Inc.		1,637		44
Newmont Corp.		2,284		138
News Corp., Class A		1,455		37
NextEra Energy, Inc.		5,924		448
Nielsen Holdings PLC		1,450		36
NIKE, Inc., Class B		3,636		483
NiSource, Inc.		1,426		34
Nordstrom, Inc.		402		15
Norfolk Southern Corp.		634		170
Northern Trust Corp.		632		66
Northrop Grumman Corp.		469		152
NortonLifeLock, Inc.		2,248		48
Norwegian Cruise Line Holdings Ltd. (f)		863		24
NOV, Inc.		1,444		20
NRG Energy, Inc.		890		34
Nucor Corp.		1,156		93
NVIDIA Corp.		1,608		859
NVR, Inc. (f)		32		151
NXP Semiconductors N.V.		1,400		282
O'Reilly Automotive, Inc. (f)		271		137
Occidental Petroleum Corp.		3,163		84
OGE Energy Corp.		806		26
Okta, Inc. (f)		267		59
Old Dominion Freight Line, Inc.		480		115
Omnicom Group, Inc.		683		51
ON Semiconductor Corp. (f)		1,615		67
ONEOK, Inc.		1,649		84
Oracle Corp.		7,249		509
Otis Worldwide Corp.		1,528		105
Ovintiv, Inc.		909		22
Owens Corning		381		35
PACCAR, Inc.		1,001		93

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Packaging Corp. of America		432	$	58
Palo Alto Networks, Inc. (f)		333		107
Paramount Group, Inc. REIT		20,687		210
Parker Hannifin Corp.		340		107
Paychex, Inc.		1,040		102
Paycom Software, Inc. (f)		276		102
PayPal Holdings, Inc. (f)		3,165		769
Pentair PLC		465		29
People's United Financial, Inc.		1,579		28
PepsiCo, Inc.		3,980		563
PerkinElmer, Inc.		296		38
Perrigo Co., PLC		449		18
Pfizer, Inc.		16,222		588
Philip Morris International, Inc.		4,568		405
Phillips 66		1,297		106
Pinnacle West Capital Corp.		400		33
Pioneer Natural Resources Co.		10,179		1,617
Plains GP Holdings LP, Class A (f)		437		4
PNC Financial Services Group, Inc. (The)		1,351		237
Polaris, Inc.		299		40
PPG Industries, Inc.		621		93
PPL Corp.		2,065		60
Principal Financial Group, Inc.		873		52
Procter & Gamble Co. (The)		7,219		978
Progressive Corp. (The)		1,665		159
Prologis, Inc. REIT		2,098		222
Prudential Financial, Inc.		1,333		121
PTC, Inc. (f)		399		55
Public Service Enterprise Group, Inc.		1,587		96
Public Storage REIT		454		112
Pulte Group, Inc.		1,009		53
PVH Corp.		362		38
Qorvo, Inc. (f)		330		60
QUALCOMM, Inc.		3,427		454
Quest Diagnostics, Inc.		375		48
Qurate Retail, Inc.		1,588		19
Ralph Lauren Corp.		382		47
Raymond James Financial, Inc.		445		55
Raytheon Technologies Corp.		4,034		312
Realty Income Corp. REIT		872		55
Regency Centers Corp. REIT		590		33
Regeneron Pharmaceuticals, Inc. (f)		285		135
Regions Financial Corp.		3,672		76
Reinsurance Group of America, Inc.		420		53
RenaissanceRe Holdings Ltd.		350		56
Republic Services, Inc.		601		60
ResMed, Inc.		409		79
Robert Half International, Inc.		411		32
Rockwell Automation, Inc.		309		82
Rollins, Inc.		878		30
Roper Technologies, Inc.		264		106
Ross Stores, Inc.		1,275		153

	Shares		Value (000)
Royal Caribbean Cruises Ltd.		630	$	54
S&P Global, Inc.		677		239
Sabre Corp.		866		13
salesforce.com, Inc. (f)		2,307		489
SBA Communications Corp. REIT		298		83
Schlumberger Ltd.		3,973		108
Seagate Technology PLC		877		67
Seagen, Inc. (f)		302		42
Sealed Air Corp.		448		21
SEI Investments Co.		458		28
Sempra Energy		670		89
Sensata Technologies Holding PLC (f)		472		27
ServiceNow, Inc. (f)		646		323
Sherwin-Williams Co. (The)		291		215
Signature Bank (New York)		347		78
Simon Property Group, Inc. REIT		987		112
Sirius XM Holdings, Inc.		5,912		36
Skyworks Solutions, Inc.		607		111
SL Green Realty Corp. REIT		7,024		492
Snap, Inc., Class A (f)		2,277		119
Snap-On, Inc.		292		67
Southern Co. (The)		3,084		192
Southwest Airlines Co.		8,291		506
Spectrum Brands Holdings, Inc.		14		1
Spirit AeroSystems Holdings, Inc., Class A		370		18
Splunk, Inc. (f)		427		58
Square, Inc., Class A (f)		1,018		231
SS&C Technologies Holdings, Inc.		596		42
Stanley Black & Decker, Inc.		525		105
Starbucks Corp.		3,590		392
State Street Corp.		1,025		86
Steel Dynamics, Inc.		873		44
STERIS PLC		303		58
Stryker Corp.		1,197		292
Sun Communities, Inc. REIT		306		46
SVB Financial Group (f)		339		167
Synchrony Financial		2,250		91
Synopsys, Inc. (f)		530		131
Sysco Corp.		1,309		103
T Rowe Price Group, Inc.		633		109
T-Mobile US, Inc. (f)		1,347		169
Take-Two Interactive Software, Inc. (f)		299		53
Tapestry, Inc.		893		37
Targa Resources Corp.		803		25
Target Corp.		1,494		296
TE Connectivity Ltd.		1,177		152
Teleflex, Inc.		263		109
Tesla, Inc. (f)		1,445		965
Texas Instruments, Inc.		2,790		527
Textron, Inc.		812		46
Thermo Fisher Scientific, Inc.		1,339		611
TJX Cos., Inc. (The)		3,606		239
Tractor Supply Co.		318		56

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Trane Technologies PLC		641	$	106
TransDigm Group, Inc. (f)		267		157
TransUnion		656		59
Travelers Cos., Inc. (The)		630		95
Trimble, Inc. (f)		679		53
TripAdvisor, Inc. (f)		381		20
Truist Financial Corp.		3,702		216
Twilio, Inc., Class A (f)		300		102
Twitter, Inc. (f)		2,062		131
Tyson Foods, Inc., Class A		748		56
Uber Technologies, Inc. (f)		658		36
UDR, Inc. REIT		874		38
UGI Corp.		619		25
Ulta Beauty, Inc. (f)		297		92
Under Armour, Inc., Class A (f)		645		14
Under Armour, Inc., Class C (f)		659		12
Union Pacific Corp.		2,036		449
United Airlines Holdings, Inc. (f)		5,816		335
United Parcel Service, Inc., Class B		1,909		325
United Rentals, Inc. (f)		272		90
UnitedHealth Group, Inc.		2,825		1,051
Universal Health Services, Inc., Class B		292		39
Unum Group		848		24
US Bancorp		4,438		245
Vail Resorts, Inc.		341		99
Valero Energy Corp.		1,262		90
Varian Medical Systems, Inc. (f)		319		56
Veeva Systems, Inc., Class A (f)		345		90
Ventas, Inc. REIT		1,163		62
VEREIT, Inc. REIT		683		26
VeriSign, Inc. (f)		282		56
Verisk Analytics, Inc.		449		79
Verizon Communications, Inc.		11,831		688
Vertex Pharmaceuticals, Inc. (f)		706		152
VF Corp.		1,072		86
ViacomCBS, Inc., Class B		1,702		77
Viatris, Inc. (f)		3,920		55
Visa, Inc., Class A		5,131		1,086
Vistra Energy Corp.		1,575		28
VMware, Inc., Class A (f)		294		44
Vontier Corp. (f)		359		11
Vornado Realty Trust REIT		18,415		836
Voya Financial, Inc.		612		39
Vulcan Materials Co.		368		62
Walgreens Boots Alliance, Inc.		2,320		127
Walmart, Inc.		3,903		530
Walt Disney Co. (The) (f)		5,089		939
Waste Connections, Inc.		633		68
Waste Management, Inc.		1,296		167
Waters Corp. (f)		352		100
Wayfair, Inc., Class A (f)		314		99
WEC Energy Group, Inc.		1,120		105

	Shares		Value (000)
Wells Fargo & Co.		12,417	$	485
Welltower, Inc. REIT		1,270		91
Western Digital Corp.		1,113		74
Western Union Co. (The)		1,632		40
Westinghouse Air Brake Technologies Corp.		449		36
Westlake Chemical Corp.		332		29
WestRock Co.		886		46
Weyerhaeuser Co. REIT		2,246		80
Whirlpool Corp.		319		70
Williams Cos., Inc. (The)		3,436		81
Willis Towers Watson PLC		357		82
Workday, Inc., Class A (f)		538		134
WP Carey, Inc. REIT		586		41
WR Berkley Corp.		619		47
WW Grainger, Inc.		263		105
Wyndham Hotels & Resorts, Inc.		2,110		147
Wynn Resorts Ltd.		438		55
Xcel Energy, Inc.		1,625		108
Xerox Holdings Corp.		821		20
Xilinx, Inc.		685		85
XPO Logistics, Inc. (f)		363		45
Xylem, Inc.		629		66
Yum! Brands, Inc.		987		107
Zebra Technologies Corp., Class A (f)		286		139
Zillow Group, Inc., Class C (f)		439		57
Zimmer Biomet Holdings, Inc.		620		99
Zions Bancorp NA		602		33
Zoetis, Inc.		1,304		205
				119,879
Total Common Stocks (Cost $121,389)				185,315
Preferred Stocks (0.0%)
United States (0.0%)
Qurate Retail, Inc. (f) (Cost $5)		41		4
	No. of Rights
Rights (0.0%)
Australia (0.0%)
Computershare Ltd. (f)		229		—	@
Italy (0.0%)
Snam SpA (f)		9,450		—	@
Total Rights (Cost $—)				—	@
	No. of Warrants
Warrants (0.0%)
Canada (0.0%)
Cenovus Energy, Inc., expires 1/1/26 (f)		110		—	@
France (0.0%)
CGG SA, expires 2/21/22 (f)		59		—	@
Switzerland (0.0%)
Cie Financiere Richemont SA, expires 11/22/23 (f)		4,444		2

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	No. of Warrants		Value (000)
United States (0.0%)
Occidental Petroleum Corp., expires 8/3/27 (f)		457	$	5
Total Warrants (Cost $3)				7
	Shares
Short-Term Investments (13.8%)
Investment Company (13.3%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $54,468)		54,468,088		54,468
	Face Amount (000)
U.S. Treasury Security (0.5%)
U.S. Treasury Bill,
0.09%, 6/3/21 (j) (Cost $2,126)	$	2,126		2,126
Total Short-Term Investments (Cost $56,594)				56,594
Total Investments (101.4%) (Cost $347,963) (k)(l)				416,535
Liabilities in Excess of Other Assets (–1.4%)				(5,597	)
Net Assets (100.0%)			$	410,938

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

(a)  Security is subject to delayed delivery.

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

(c)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Consolidated Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Consolidated Portfolio of Investments.

(d)  Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at March 31, 2021.

(e)  Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2021.

(f)  Non-income producing security.

(g)  Security trades on the Hong Kong exchange.

(h)  At March 31, 2021, the Fund held a fair valued security valued $0, representing 0.0% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Trust's (as defined herein) Trustees.

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

(j)  Rate shown is the yield to maturity at March 31, 2021.

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

(l)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $79,527,000 and the aggregate gross unrealized depreciation is approximately $12,331,000, resulting in net unrealized appreciation of approximately $67,196,000.

@  Value is less than $500.

ADR  American Depositary Receipt.

CDI  CHESS Depositary Interest.

CVA  Certificaten Van Aandelen.

EURIBOR  Euro Interbank Offered Rate.

Euronext  Euronext Paris Exchange.

Euronext N.V.  Euronext Amsterdam Stock Market.

IO  Interest Only.

LIBOR  London Interbank Offered Rate.

LSE  London Stock Exchange.

MTN  Medium Term Note.

NYSE  New York Stock Exchange.

OAT  Obligations Assimilables du Trésor (Treasury Obligation).

OFZ  Obilgatsyi Federal'novo Zaima (Russian Federal Loan Obligation).

OMXH  Helsinki Stock Exchange.

REIT  Real Estate Investment Trust.

REMIC  Real Estate Mortgage Investment Conduit.

SDR  Swedish Depositary Receipt.

SIX  Swiss Exchange.

SOFR  Secured Overnight Financing Rate.

SSE  Stockholm Stock Exchange.

TBA  To Be Announced.

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 31, 2021:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Bank of America NA	AUD	3,405	$	2,697	5/25/21	$	110
Bank of America NA	CNH	10,096	$	1,542	6/17/21		13
Bank of America NA	EUR	320	$	377	5/25/21		1
Bank of America NA	PLN	252	$	65	6/17/21		1
Bank of America NA	$	102	CAD	130	5/25/21		1
Bank of America NA	$	316	ILS	1,040	6/17/21		(5	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Bank of New York Mellon	EUR	359	$	428	6/17/21	$	6
Barclays Bank PLC	CAD	302	$	239	5/25/21		(1	)
Barclays Bank PLC	EUR	77	$	91	6/17/21		1
Barclays Bank PLC	JPY	65,013	$	587	4/5/21		(—	@)
Barclays Bank PLC	$	535	EUR	444	5/25/21		(15	)
Barclays Bank PLC	$	15	GBP	11	5/25/21		(—	@)
Barclays Bank PLC	$	587	JPY	65,013	5/25/21		—	@
Barclays Bank PLC	$	149	PEN	545	5/25/21		(4	)
Barclays Bank PLC	$	1,736	CNY	11,353	6/17/21		(14	)
Barclays Bank PLC	$	69	COP	242,881	6/17/21		(2	)
BNP Paribas SA	CAD	161	$	128	4/6/21		(—	@)
BNP Paribas SA	CAD	135	$	107	6/17/21		(—	@)
BNP Paribas SA	EUR	848	$	1,010	6/17/21		15
BNP Paribas SA	EUR	515	$	615	6/17/21		9
BNP Paribas SA	EUR	206	$	246	6/17/21		4
BNP Paribas SA	EUR	206	$	246	6/17/21		4
BNP Paribas SA	GBP	1,116	$	1,570	5/25/21		31
BNP Paribas SA	HKD	4,091	$	527	6/17/21		1
BNP Paribas SA	IDR	547,914	$	38	5/25/21		1
BNP Paribas SA	INR	4,772	$	65	6/17/21		—	@
BNP Paribas SA	JPY	40,218	$	370	6/17/21		6
BNP Paribas SA	JPY	16,069	$	148	6/17/21		2
BNP Paribas SA	JPY	16,069	$	148	6/17/21		3
BNP Paribas SA	KRW	84,831	$	75	6/17/21		(—	@)
BNP Paribas SA	NZD	172	$	123	6/17/21		4
BNP Paribas SA	RUB	2,327	$	31	6/17/21		1
BNP Paribas SA	RUB	6,171	$	83	5/25/21		1
BNP Paribas SA	SEK	234	$	27	6/17/21		1
BNP Paribas SA	TWD	1,768	$	63	6/17/21		1
BNP Paribas SA	$	131	CHF	121	6/17/21		(3	)
BNP Paribas SA	$	431	EUR	361	6/17/21		(7	)
BNP Paribas SA	$	890	EUR	756	6/17/21		(2	)
BNP Paribas SA	$	1,413	GBP	1,017	6/17/21		(11	)
BNP Paribas SA	$	325	HKD	2,523	6/17/21		(—	@)
BNP Paribas SA	$	20	IDR	285,595	6/17/21		(—	@)
BNP Paribas SA	$	2,030	JPY	221,162	6/17/21		(32	)
BNP Paribas SA	$	259	JPY	28,185	6/17/21		(4	)
BNP Paribas SA	$	716	JPY	79,061	6/17/21		(1	)
BNP Paribas SA	$	180	KRW	203,153	6/17/21		(1	)
BNP Paribas SA	$	1,054	MXN	21,914	6/17/21		9
BNP Paribas SA	$	1,122	MXN	23,113	6/17/21		(—	@)
BNP Paribas SA	$	11	PEN	39	6/17/21		(—	@)
BNP Paribas SA	$	537	SGD	722	6/17/21		—	@
BNP Paribas SA	$	111	SGD	150	6/17/21		(—	@)
BNP Paribas SA	$	128	CAD	161	5/25/21		—	@
BNP Paribas SA	$	856	CHF	766	5/25/21		(45	)
BNP Paribas SA	$	56	IDR	810,175	5/25/21		(—	@)
BNP Paribas SA	$	1,813	KRW	2,004,312	5/25/21		(42	)
BNP Paribas SA	$	70	PLN	260	5/25/21		(4	)
BNP Paribas SA	$	530	THB	15,946	5/25/21		(20	)
Citibank NA	$	10	CZK	229	6/17/21		(—	@)
Citibank NA	$	146	ILS	479	6/17/21		(2	)
Citibank NA	$	7	THB	223	6/17/21		(—	@)
Citibank NA	$	3,597	CNH	23,422	5/25/21		(43	)
Citibank NA	$	185	CZK	3,944	5/25/21		(8	)
Citibank NA	$	119	RON	481	5/25/21		(5	)
Citibank NA	$	307	SGD	406	5/25/21		(5	)
Commonwealth Bank of Australia	EUR	140	$	167	6/17/21		2
Commonwealth Bank of Australia	NZD	41	$	30	6/17/21		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Credit Suisse International	EUR	97	$	116	6/17/21	$	2
Goldman Sachs International	BRL	98,050	$	17,383	6/17/21		50
Goldman Sachs International	EUR	2,088	$	2,489	6/17/21		36
Goldman Sachs International	$	71	HUF	21,123	5/25/21		(3	)
Goldman Sachs International	$	9,099	BRL	50,463	6/17/21		(178	)
Goldman Sachs International	$	222	CHF	205	6/17/21		(5	)
Goldman Sachs International	$	28	CLP	20,309	6/17/21		(—	@)
Goldman Sachs International	$	13	CZK	278	6/17/21		(—	@)
JPMorgan Chase Bank NA	AUD	2,089	$	1,613	5/25/21		26
JPMorgan Chase Bank NA	CAD	272	$	215	5/25/21		(1	)
JPMorgan Chase Bank NA	CAD	248	$	200	6/17/21		2
JPMorgan Chase Bank NA	CNH	2,595	$	373	8/12/21		(18	)
JPMorgan Chase Bank NA	CNH	2,063	$	303	8/12/21		(9	)
JPMorgan Chase Bank NA	CNH	78,238	$	11,980	8/12/21		176
JPMorgan Chase Bank NA	DKK	379	$	62	5/25/21		2
JPMorgan Chase Bank NA	EUR	2,488	$	2,965	6/17/21		43
JPMorgan Chase Bank NA	EUR	49	$	60	5/25/21		2
JPMorgan Chase Bank NA	JPY	26,948	$	244	5/25/21		—	@
JPMorgan Chase Bank NA	NOK	474	$	56	6/17/21		—	@
JPMorgan Chase Bank NA	$	589	CNH	4,185	8/12/21		42
JPMorgan Chase Bank NA	$	10,322	CNH	73,272	8/12/21		732
JPMorgan Chase Bank NA	$	788	CNH	5,273	8/12/21		8
JPMorgan Chase Bank NA	$	25	CNH	165	8/12/21		(—	@)
JPMorgan Chase Bank NA	$	6,877	EUR	5,650	5/25/21		(244	)
JPMorgan Chase Bank NA	$	1,171	GBP	840	5/25/21		(13	)
JPMorgan Chase Bank NA	$	284	JPY	30,187	5/25/21		(11	)
JPMorgan Chase Bank NA	$	158	CHF	148	6/17/21		(1	)
JPMorgan Chase Bank NA	$	27	JPY	2,886	5/25/21		(—	@)
Royal Bank of Canada	$	1,629	JPY	170,944	5/25/21		(84	)
Royal Bank of Canada	$	58	NOK	495	5/25/21		(—	@)
State Street Bank and Trust Co.	AUD	58	$	45	6/17/21		1
UBS AG	AUD	186	$	144	6/17/21		3
UBS AG	CAD	213	$	171	6/17/21		2
UBS AG	CHF	802	$	855	6/17/21		6
UBS AG	DKK	370	$	59	6/17/21		1
UBS AG	EUR	725	$	855	6/17/21		4
UBS AG	EUR	163	$	192	6/17/21		1
UBS AG	GBP	623	$	856	6/17/21		(3	)
UBS AG	JPY	93,265	$	855	6/17/21		12
UBS AG	MXN	6,408	$	308	5/25/21		(4	)
UBS AG	TRY	3,482	$	392	6/17/21		(8	)
UBS AG	TRY	20,682	$	2,330	6/17/21		(47	)
UBS AG	TRY	3,927	$	445	6/17/21		(6	)
UBS AG	$	20	AUD	26	5/25/21		(—	@)
UBS AG	$	324	SEK	2,678	5/25/21		(17	)
UBS AG	$	1,311	CHF	1,211	6/17/21		(27	)
UBS AG	$	116	EUR	97	6/17/21		(2	)
UBS AG	$	130	EUR	109	6/17/21		(2	)
UBS AG	$	572	GBP	412	6/17/21		(4	)
UBS AG	$	15	HUF	4,751	6/17/21		—	@
UBS AG	$	798	JPY	86,870	6/17/21		(12	)
UBS AG	$	69	JPY	7,547	6/17/21		(1	)
UBS AG	$	78	JPY	8,511	6/17/21		(2	)
UBS AG	$	3,077	TRY	24,088	6/17/21		(308	)
UBS AG	$	472	TRY	3,545	6/17/21		(65	)
UBS AG	ZAR	1,082	$	72	6/17/21		(1	)
						$	28

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2021:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
Euro STOXX 50 Index (Germany)		44	Jun-21	EUR	—	@	$	1,995		$	47
NIKKEI 225 Index (Japan)		5	Jun-21	JPY	3			663			9
SGX MSCI Singapore (Singapore)		26	Apr-21	SGD	3			692			3
South Korea 10 yr. Bond (Korea, Republic of)		17	Jun-21	KRW	1,700,000			1,894			(3	)
U.S. Treasury 10 yr. Note (United States)		135	Jun-21	$	13,500			17,676			(282	)
U.S. Treasury 5 yr. Note (United States)		161	Jun-21		16,100			19,867			(253	)
Short:
FTSE 100 Index (United Kingdom)		2	Jun-21	GBP	(—	@)		(184	)		1
German Euro BTP (Germany)		48	Jun-21	EUR	(4,800	)		(8,405	)		(43	)
MSCI Emerging Market E Mini (United States)		27	Jun-21	$	(1	)		(1,785	)		14
U.S. Treasury 10 yr. Note (United States)		2	Jun-21		(200	)		(262	)		7
U.S. Treasury 30 yr. Bond (United States)		3	Jun-21		(300	)		(464	)		9
U.S. Treasury Ultra Long Bond (United States)		52	Jun-21		(5,200	)		(9,423	)		440
U.S. Treasury 10 yr. Ultra Long Bond (United States)		91	Jun-21		(9,100	)		(13,076	)		473
										$	422

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 31, 2021:

Swap Counterparty	Floating Rate Index	Pay/ Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley &  US CPI All Urban  Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.24	%	Quarterly	3/30/30	$	1,286	$	152		$	—	$	152
Morgan Stanley &  US CPI All Urban Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.27		Quarterly	3/30/30		4,644		535			—		535
Morgan Stanley &  US CPI All Urban  Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.30		Quarterly	3/30/30		1,286		144			—		144
Morgan Stanley &  US CPI All Urban  Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.18		Quarterly	3/31/30		2,143		266			—		266
Morgan Stanley &  US CPI All Urban  Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.31		Quarterly	4/28/30		790		89			—		89
Morgan Stanley &  US CPI All Urban Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.37		Quarterly	5/29/30		628		71			—		71
Morgan Stanley &  US CPI All Urban  Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.75		Quarterly	7/30/30		318		29			—		29
Morgan Stanley &  US CPI All Urban Semi-Annual/  Co. LLC*	Consumers Index	Receive		1.96		Quarterly	8/28/30		591		39			—		39
Morgan Stanley &  US CPI All Urban Semi-Annual/  Co. LLC*	Consumers Index	Receive		2.18		Quarterly	12/23/30		1,679		59			—		59
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.78		Quarterly	10/3/30	MXN	21,597		(76	)		—		(76	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.78		Quarterly	10/4/30		28,012		(99	)		—		(99	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.78		Quarterly	10/4/30		28,049		(100	)		—		(100	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Swap Counterparty	Floating Rate Index	Pay/ Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.58	%	Quarterly	11/1/30	MXN	17,247	$	(75	)	$	—	$	(75	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.59		Quarterly	11/1/30		17,250		(74	)		—		(74	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.60		Quarterly	11/1/30		33,825		(143	)		—		(143	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.61		Quarterly	11/1/30		28,185		(119	)		—		(119	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.61		Quarterly	11/1/30		39,460		(166	)		—		(166	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		5.61		Quarterly	11/1/30		39,460		(166	)		—		(166	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		6.03		Quarterly	2/12/31		22,253		(64	)		—		(64	)
Morgan Stanley &  Quarterly/  Co. LLC*	1 Month TIIE	Pay		6.03		Quarterly	2/12/31		22,253		(64	)		—		(64	)
										$	238		$	—	$	238

Total Return Swap Agreements:

The Fund had the following total return swap agreements open at March 31, 2021:

Swap Counterparty	Index	Pay/Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC	Barclays Electric Vehicles Basket Index	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	2/22/22	$	1,476	$	296		$	—	$	296
Barclays Bank PLC	Barclays Electric Vehicles Basket Index	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	2/22/22		358		(24	)		—		(24	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.25%	Quarterly	9/16/21		2,821		(32	)		—		(32	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.25%	Quarterly	9/16/21		1,348		(15	)		—		(15	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.25%	Quarterly	9/16/21		1,340		(15	)		—		(15	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.15%	Quarterly	9/16/21		957		(11	)		—		(11	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.25%	Quarterly	9/16/21		1,632		(18	)		—		(18	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.25%	Quarterly	9/16/21		2,174		(24	)		—		(24	)
BNP Paribas SA	MSCI Emerging Markets ex China Index	Receive	3 Month USD LIBOR plus 0.52%	Quarterly	1/13/22		1,660		(23	)		—		(23	)
BNP Paribas SA	MSCI Japan Net Total Return Index	Receive	3 Month USD LIBOR plus 0.18%	Quarterly	2/10/22		16,614		(502	)		—		(502	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Swap Counterparty	Index	Pay/Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Goldman Sachs International	MSCI Emerging Markets Net Total Return Index	Receive	3 Month USD LIBOR plus 0.18%	Quarterly	1/26/22	$	35,325	$	(1,846	)	$	—	$	(1,846	)
JPMorgan Chase Bank NA	JPM SPX 500 Growth Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/10/22		16,749		(343	)		—		(343	)
JPMorgan Chase Bank NA	JPM SPX 500 Low Vol Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/10/22		7,606		(304	)		—		(304	)
JPMorgan Chase Bank NA	JPM SPX 500 Value Basket Index††	Receive	3 Month USD LIBOR plus 0.20%	Quarterly	3/10/22		24,693		648			—		648
JPMorgan Chase Bank NA	JPM SPX 1500 Growth Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,808		32			—		32
JPMorgan Chase Bank NA	JPM SPX 1500 Growth Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,787		60			—		60
JPMorgan Chase Bank NA	JPM SPX 1500 Growth Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,739		101			—		101
JPMorgan Chase Bank NA	JPM SPX 1500 Growth Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,546		101			—		101
JPMorgan Chase Bank NA	JPM SPX 1500 Low Vol Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,344		(53	)		—		(53	)
JPMorgan Chase Bank NA	JPM SPX 1500 Low Vol Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,337		(54	)		—		(54	)
JPMorgan Chase Bank NA	JPM SPX 1500 Low Vol Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,308		(36	)		—		(36	)
JPMorgan Chase Bank NA	JPM SPX 1500 Low Vol Basket Index††	Pay	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		2,276		(30	)		—		(30	)
JPMorgan Chase Bank NA	JPM SPX 1500 Value Basket Index††	Receive	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		5,104		74			—		74
JPMorgan Chase Bank NA	JPM SPX 1500 Value Basket Index††	Receive	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		5,139		48			—		48
JPMorgan Chase Bank NA	JPM SPX 1500 Value Basket Index††	Receive	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		5,038		(25	)		—		(25	)
JPMorgan Chase Bank NA	JPM SPX 1500 Value Basket Index††	Receive	3 Month USD LIBOR plus 0.20%	Quarterly	3/11/22		4,867		(69	)		—		(69	)
								$	(2,064	)	$	—	$	(2,064	)

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

The following table represents the equity basket holdings underlying the total return swap with BNP U.S. Banks Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
BNP U.S. Banks Basket Index
JPMorgan Chase & Co.		110,953	$	16,890		29.87	%
Bank of America Corp.		308,343		11,930		21.09
Citigroup, Inc.		79,236		5,764		10.19
Wells Fargo & Co.		146,120		5,709		10.09
US Bancorp		51,605		2,854		5.05
Pnc Financial Services Group		15,425		2,706		4.78
Truist Financial Corp.		45,852		2,674		4.73
First Republic Bank		5,750		959		1.69
Fifth Third Bancorp		25,079		939		1.66
Svb Financial Group		1,793		885		1.56
Regions Financial Corp.		34,597		715		1.26
Citizens Financial Group		15,687		693		1.22
Keycorp		34,389		687		1.21
M & T Bank Corp.		4,440		673		1.19
Huntington Bancshares, Inc.		35,695		561		0.99
Signature Bank		1,907		431		0.76
Comerica, Inc.		5,287		379		0.67
East West Bancorp, Inc.		4,961		366		0.65
Zions Bancorp NA		6,245		343		0.61
People's United Financial		13,619		244		0.43
CIT Group, Inc.		3,298		170		0.30

The following table represents the equity basket holdings underlying the total return swap with JPM SPX 500 Growth Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
JPM SPX 500 Growth Basket Index
American Tower Corp.		490	$	117		1.14	%
American Airlines Group, Inc.		4,794		115		1.12
Boeing Co. (The)		439		112		1.09
Crown Castle International Corp.		653		112		1.09
SBA Communications Corp.		405		112		1.09
United Airlines Holdings, Inc.		1,941		112		1.09
Enphase Energy, Inc.		683		111		1.08
Tesla, Inc.		164		110		1.07
Equinix, Inc.		161		109		1.06
WEC Energy Group, Inc.		1,161		109		1.07
American Water Works Co., Inc.		721		108		1.05
Ansys, Inc.		318		108		1.05
Fortinet, Inc.		585		108		1.05
Nisource, Inc.		4,485		108		1.05
Mettler-Toledo International		92		107		1.04
Old Dominion Freight Line		446		107		1.04
Sherwin-Williams Co. (The)		145		107		1.04
Adobe, Inc.		222		106		1.03
Cadence Design Systems, Inc.		774		106		1.03
Zoetis, Inc.		673		106		1.04
Air Products & Chemicals, Inc.		372		105		1.02
Alaska Air Group, Inc.		1,511		105		1.02
Chipotle Mexican Grill, Inc.		74		105		1.02
Eversource Energy		1,215		105		1.02
Host Hotels & Resorts, Inc.		6,205		105		1.02
Nextera Energy, Inc.		1,387		105		1.02
Nvidia Corp.		197		105		1.02
Southwest Airlines Co.		1,722		105		1.02

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM SPX 500 Growth Basket Index (cont'd)
West Pharmaceutical Services		374	$	105		1.04	%
Abiomed, Inc.		325		104		1.01
IDEX Corp.		495		104		1.01
Monolithic Power Systems, Inc.		294		104		1.01
Tyler Technologies, Inc.		244		104		1.01
Illinois Tool Works		467		103		1.01
Monster Beverage Corp.		1,134		103		1.01
Resmed, Inc.		530		103		1.00
S&P Global, Inc.		293		103		1.01
Verisk Analytics, Inc.		583		103		1.00
Xylem, Inc.		978		103		1.00
Autodesk, Inc.		367		102		0.99
Coca-Cola Co. (The)		1,930		102		0.99
Delta Air Lines, Inc.		2,122		102		1.00
Intuitive Surgical, Inc.		137		102		0.99
Marsh & Mclennan Cos		838		102		0.99
Moody's Corp.		341		102		0.99
Rollins, Inc.		2,976		102		1.00
Starbucks Corp.		932		102		0.99
AES Corp.		3,772		101		0.98
Ball Corp.		1,193		101		0.98
Ecolab, Inc.		472		101		0.98

The following table represents the equity basket holdings underlying the total return swap with JPM SPX 500 Low Vol Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
JPM SPX 500 Low Vol Basket Index
Kansas City Southern		508	$	134		1.27	%
American Tower Corp.		538		129		1.22
Home Depot, Inc.		424		129		1.23
Autozone, Inc.		88		124		1.17
Crown Castle International Corp.		716		123		1.17
SBA Communications Corp.		444		123		1.17
Dollar General Corp.		602		122		1.15
Linde PLC		434		122		1.15
Tractor Supply Company		690		122		1.16
Amerisourcebergen Corp.		1,026		121		1.15
Texas Instruments, Inc.		640		121		1.15
Ameren Corporation		1,476		120		1.14
Expeditors Intl Wash, Inc.		1,114		120		1.14
Accenture PLC — Class A		431		119		1.13
CMS Energy Corp.		1,942		119		1.13
Dominion Energy, Inc.		1,539		117		1.11
O'Reilly Automotive, Inc.		231		117		1.11
Sherwin-Williams Co. (The)		159		117		1.11
Waste Management, Inc.		906		117		1.11
Xcel Energy, Inc.		1,753		117		1.10
Adobe, Inc.		244		116		1.10
Assurant, Inc.		815		116		1.09
Atmos Energy Corp.		1,172		116		1.10
Baxter International, Inc.		1,377		116		1.10
Duke Realty Corp.		2,760		116		1.10
FMC Corp.		1,047		116		1.10
Garmin Ltd.		878		116		1.10
Mcdonald's Corp.		519		116		1.10

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM SPX 500 Low Vol Basket Index (cont'd)
Mid-America Apartment Communities, Inc.		803	$	116		1.10	%
Procter & Gamble Co. (The)		854		116		1.09
Steris PLC		607		116		1.10
Zoetis, Inc.		738		116		1.10
3M Co.		595		115		1.09
Air Products & Chemicals, Inc.		408		115		1.09
Eversource Energy		1,333		115		1.09
Progressive Corp.		1,201		115		1.09
Unitedhealth Group, Inc.		310		115		1.09
Automatic Data Processing		603		114		1.08
IDEX Corp.		543		114		1.08
Kimberly-Clark Corp.		817		114		1.08
Paychex, Inc.		1,167		114		1.08
Pepsico, Inc.		808		114		1.08
Akamai Technologies, Inc.		1,107		113		1.07
Hershey Co. (The)		715		113		1.07
Honeywell International, Inc.		521		113		1.07
Illinois Tool Works		512		113		1.07
Johnson & Johnson		689		113		1.07
Merck & Co., Inc..		1,470		113		1.07
Otis Worldwide Corp.		1,658		113		1.07
Public Storage		457		113		1.07

The following table represents the equity basket holdings underlying the total return swap with JPM SPX 500 Value Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
JPM SPX 500 Value Basket Index
Nucor Corp.		1,602	$	129		1.22	%
Hartford Financial Services Group, Inc.		1,880		126		1.20
Lennar Corp. — Class A		1,172		119		1.13
Netapp, Inc.		1,643		119		1.14
Corning, Inc.		2,691		117		1.12
Pultegroup, Inc.		2,204		116		1.10
Carrier Global Corp.		2,729		115		1.10
DXC Technology Co.		3,693		115		1.10
Dr Horton, Inc.		1,276		114		1.08
Whirlpool Corp.		516		114		1.09
Alliant Energy Corp.		2,083		113		1.07
Best Buy Co., Inc.		980		113		1.07
Cisco Systems, Inc.		2,179		113		1.07
Fortune Brands Home & Security		1,175		113		1.07
Franklin Resources, Inc.		3,808		113		1.07
Entergy Corp.		1,131		112		1.07
Huntington Ingalls Industries		543		112		1.06
Molson Coors Beverage Co. — Class B		2,184		112		1.06
Dollar Tree, Inc.		968		111		1.06
Exelon Corp.		2,543		111		1.06
Fedex Corp.		392		111		1.06
Consolidated Edison, Inc.		1,476		110		1.05
Hewlett Packard Enterprise		6,999		110		1.05
Newell Brands, Inc.		4,091		110		1.04
Quest Diagnostics, Inc.		854		110		1.04
United Rentals, Inc.		335		110		1.05
Intl Business Machines Corp.		821		109		1.04
L3Harris Technologies, Inc.		539		109		1.04

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM SPX 500 Value Basket Index (cont'd)
Stanley Black & Decker, Inc.		544	$	109		1.03	%
Textron, Inc.		1,942		109		1.04
Anthem, Inc.		302		108		1.03
Dish Network Corp. — Class A		2,981		108		1.03
General Motors Co.		1,875		108		1.03
HP, Inc.		3,388		108		1.02
Jm Smucker Co. (The)		852		108		1.03
Laboratory Corp. of Amer Holdings		424		108		1.03
CVS Health Corp.		1,427		107		1.02
General Dynamics Corp.		591		107		1.02
Invesco Ltd.		4,242		107		1.02
Juniper Networks, Inc.		4,233		107		1.02
Kraft Heinz Co. (The)		2,663		107		1.01
Leidos Holdings, Inc.		1,111		107		1.02
Newmont Corp.		1,776		107		1.02
Snap-on, Inc.		464		107		1.02
State Street Corp.		1,269		107		1.02
Wabtec Corp.		1,351		107		1.03
Bank Of New York Mellon Corp.		2,238		106		1.01
Centene Corp.		1,665		106		1.01
Cigna Corp.		437		106		1.01
Intel Corp.		1,659		106		1.01

The following table represents the equity basket holdings underlying the total return swap with JPM SPX 1500 Growth Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
JPM SPX 1500 Growth Basket Index
Staar Surgical Co.		649	$	68		0.68	%
Fluor Corp.		2,765		64		0.63
Tabula Rasa Healthcare, Inc.		1,379		64		0.63
Enphase Energy, Inc.		388		63		0.63
3D Systems Corp.		2,242		62		0.61
American Tower Corp.		258		62		0.62
Cytokinetics, Inc.		2,672		62		0.62
Titan International, Inc.		6,721		62		0.62
Universal Display Corp.		257		61		0.60
Crown Castle International Corp.		349		60		0.60
Monolithic Power Systems, Inc.		170		60		0.60
Neogenomics, Inc.		1,234		60		0.59
Solaredge Technologies, Inc.		208		60		0.59
Cree, Inc.		545		59		0.59
Equinix, Inc.		86		59		0.58
Sba Communications Corp.		211		59		0.58
Boeing Co. (The)		229		58		0.59
Boston Beer Company, Inc. — Class A		48		58		0.57
Ceva, Inc.		1,036		58		0.58
Fastenal Co.		1,148		58		0.57
Tactile Systems Technology		1,072		58		0.58
Tripadvisor, Inc.		1,077		58		0.58
Cognex Corp.		682		57		0.57
Generac Holdings, Inc.		174		57		0.57
Amedisys, Inc.		210		56		0.55
Barnes & Noble Education, Inc.		6,921		56		0.56
Cutera, Inc.		1,868		56		0.56
Graco, Inc.		776		56		0.55

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM SPX 1500 Growth Basket Index (cont'd)
Nisource, Inc.		2,327	$	56		0.56	%
Old Dominion Freight Line		235		56		0.56
Saia, Inc.		244		56		0.56
Wec Energy Group, Inc.		594		56		0.55
Zoetis, Inc.		353		56		0.55
Coresite Realty Corp.		457		55		0.54
Duke Energy Corp.		568		55		0.55
Eversource Energy		636		55		0.55
Garmin Ltd.		419		55		0.55
Lennox International, Inc.		175		55		0.54
LHC Group, Inc.		290		55		0.55
Livent Corp.		3,185		55		0.55
Nextera Energy, Inc.		724		55		0.54
Paypal Holdings, Inc.		227		55		0.55
Repligen Corp.		283		55		0.55
Servicenow, Inc.		111		55		0.55
ETSY, Inc.		270		54		0.54
Granite Construction, Inc.		1,345		54		0.54
Green Plains, Inc.		2,012		54		0.54
Liveramp Holdings, Inc.		1,050		54		0.54
Rollins, Inc.		1,578		54		0.54
United Parcel Service — Class B		319		54		0.54

The following table represents the equity basket holdings underlying the total return swap with JPM SPX 1500 Low Vol Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
JPM SPX 1500 Low Vol Basket Index
Kansas City Southern		258	$	68		0.66	%
American Tower Corp.		274		65		0.63
Crown Castle Intl Corp.		370		64		0.62
Home Depot, Inc.		210		64		0.62
Corning, Inc.		1,445		63		0.61
Lowe's Cos, Inc.		334		63		0.61
Murphy USA, Inc.		432		63		0.61
Texas Instruments, Inc.		335		63		0.61
Costco Wholesale Corp.		175		62		0.60
Hawaiian Electric Industries		1,402		62		0.60
SBA Communications Corp.		224		62		0.60
Synopsys, Inc.		249		62		0.60
Adobe, Inc.		129		61		0.59
Autozone, Inc.		44		61		0.60
Dollar General Corp.		299		61		0.59
Expeditors Intl Wash, Inc.		564		61		0.59
Agilent Technologies, Inc.		468		60		0.58
Ameren Corporation		733		60		0.58
Amerisourcebergen Corp.		506		60		0.58
Broadcom, Inc.		129		60		0.58
Domino'S Pizza, Inc.		163		60		0.58
Linde PLC		214		60		0.58
Prologis, Inc.		566		60		0.58
Steris PLC		315		60		0.58
Tractor Supply Company		338		60		0.58
Watsco, Inc.		229		60		0.57
Allegion PLC		467		59		0.57
Amgen, Inc.		239		59		0.58

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM SPX 1500 Low Vol Basket Index (cont'd)
Analog Devices, Inc.		377	$	59		0.57	%
Atmos Energy Corp.		593		59		0.57
Baxter International, Inc.		694		59		0.57
Cisco Systems, Inc.		1,144		59		0.57
Duke Realty Corp.		1,397		59		0.57
Graco, Inc.		822		59		0.57
Jacobs Engineering Group, Inc.		460		59		0.58
Resmed, Inc.		303		59		0.57
Zoetis, Inc.		374		59		0.57
Amphenol Corp. — Class A		886		58		0.57
CDW Corp.		350		58		0.56
Eversource Energy		674		58		0.57
FMC Corp.		527		58		0.57
Garmin Ltd.		444		58		0.57
Henry Schein, Inc.		839		58		0.56
McDonald'S Corp.		260		58		0.56
Mid-America Apartment Communities		405		58		0.57
Newmont Corp.		964		58		0.56
O'Reilly Automotive, Inc.		115		58		0.56
Pepsico, Inc.		411		58		0.56
Sherwin-Williams Co. (The)		79		58		0.56
Xcel Energy, Inc.		877		58		0.57

The following table represents the equity basket holdings underlying the total return swap with JPM SPX 1500 Value Basket Index as of March 31, 2021:

Security Description	Shares		Value (000)		Index Weight
JPM SPX 1500 Value Basket Index
Ichor Holdings Ltd.		1,342	$	72		0.71	%
Ultra Clean Holdings, Inc.		1,235		72		0.69
Acuity Brands, Inc.		399		66		0.64
First Solar, Inc.		734		64		0.63
Synnex Corp.		557		64		0.63
Edgewell Personal Care Co.		1,591		63		0.62
Jabil, Inc.		1,201		63		0.61
Meridian Bioscience, Inc.		2,370		62		0.61
Ebix, Inc.		1,898		61		0.60
Facebook Inc — Class A		205		61		0.59
Amkor Technology, Inc.		2,539		60		0.59
Ebay, Inc.		980		60		0.59
Caci International Inc — Class A		240		59		0.58
Central Garden And Pet Co. — Class A		1,146		59		0.58
Dxc Technology Co.		1,872		59		0.57
Essent Group Ltd.		1,238		59		0.58
Myr Group, Inc.		826		59		0.58
Owens & Minor, Inc.		1,567		59		0.58
Avista Corp.		1,225		58		0.57
Corecivic, Inc.		6,435		58		0.57
Mgic Investment Corp.		4,202		58		0.57
Navient Corp.		4,069		58		0.57
Photronics, Inc.		4,521		58		0.57
Agco Corp.		394		57		0.55
Arrow Electronics, Inc.		514		57		0.55
First American Financial		999		57		0.56
Jack In The Box, Inc.		523		57		0.56
M/I Homes, Inc.		970		57		0.56

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM SPX 1500 Value Basket Index (cont'd)
Odp Corp. (The)		1,310	$	57		0.56	%
Vista Outdoor, Inc.		1,776		57		0.56
Alliance Data Systems Corp.		498		56		0.55
Boise Cascade Co.		943		56		0.55
Chemours Co. (The)		1,990		56		0.55
Customers Bancorp, Inc.		1,748		56		0.55
H.B. Fuller Co.		884		56		0.55
Hewlett Packard Enterprise		3,541		56		0.55
Hibbett Sports, Inc.		809		56		0.55
Hill-Rom Holdings, Inc.		502		56		0.54
Huntington Ingalls Industries		274		56		0.55
Intl Business Machines Corp.		420		56		0.55
Knight-Swift Transportation		1,157		56		0.55
Laboratory Corp of Amer Holdings		218		56		0.55
Molson Coors Beverage Co. — Class B		1,100		56		0.55
Quest Diagnostics, Inc.		433		56		0.55
Sanmina Corp.		1,352		56		0.55
Wabtec Corp.		705		56		0.55
Atlas Air Worldwide Holdings		914		55		0.54
CVS Health Corp.		731		55		0.54
Dish Network Corp. — Class A		1,506		55		0.53
Equitrans Midstream Corp.		6,698		55		0.54

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

@    Value is less than $500.

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

BTP    Buoni del Tesoro Poliennali.

CPI    Consumer Price Index.

FTSE    Financial Times Stock Exchange.

LIBOR  London Interbank Offered Rate.

SGX    Singapore Exchange Ltd.

TIIE    Interbank Equilibrium Interest Rate.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CLP  —  Chilean Peso

CNH  —  Chinese Yuan Renminbi Offshore

CNY  —  Chinese Yuan Renminbi

COP  —  Colombian Peso

CZK  —  Czech Koruna

DKK  —  Danish Krone

EUR  —  Euro

GBP  —  British Pound

HKD  —  Hong Kong Dollar

HUF  —  Hungarian Forint

IDR  —  Indonesian Rupiah

ILS  —  Israeli Shekel

INR  —  Indian Rupee

JPY  —  Japanese Yen

KRW  —  South Korean Won

MXN  —  Mexican Peso

MYR  —  Malaysian Ringgit

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

PEN  —  Peruvian Nuevo Sol

PLN  —  Polish Zloty

RON  —  Romanian New Leu

RUB  —  Russian Ruble

SEK  —  Swedish Krona

SGD  —  Singapore Dollar

THB  —  Thai Baht

TRY  —  Turkish Lira

TWD  —  Taiwan Dollar

USD  —  United States Dollar

ZAR  —  South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Common Stocks		44.5	%
Fixed Income Securities		41.9
Short-Term Investments		13.6
Other**		0.0	***
Total Investments		100.0	%****

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

***  Amount is less than 0.05%.

****  Does not include open long/short futures contracts with a value of approximately $76,386,000 and net unrealized appreciation of approximately $422,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $28,000. Also does not include open swap agreements with net unrealized depreciation of approximately $1,826,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $293,495)	$	362,067
Investment in Security of Affiliated Issuer, at Value (Cost $54,468)		54,468
Total Investments in Securities, at Value (Cost $347,963)		416,535
Foreign Currency, at Value (Cost $1,405)		1,395
Receivable for Investments Sold		16,543
Due from Broker		4,402
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		1,380
Unrealized Appreciation on Swap Agreements		1,360
Receivable for Variation Margin on Futures Contracts		1,286
Interest Receivable		920
Dividends Receivable		236
Tax Reclaim Receivable		191
Receivable for Fund Shares Sold		153
Receivable for Variation Margin on Swap Agreements		21
Receivable from Affiliate		1
Other Assets		104
Total Assets		444,527
Liabilities:
Payable for Investments Purchased		26,290
Unrealized Depreciation on Swap Agreements		3,424
Due to Broker		1,482
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		1,352
Payable for Advisory Fees		448
Payable for Trustees' Fees and Expenses		108
Payable for Fund Shares Redeemed		100
Payable for Custodian Fees		96
Payable for Professional Fees		86
Payable for Shareholder Services Fees — Class A		40
Payable for Distribution and Shareholder Services Fees — Class L		9
Payable for Distribution and Shareholder Services Fees — Class C		2
Payable for Sub Transfer Agency Fees — Class I		9
Payable for Sub Transfer Agency Fees — Class A		21
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		28
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		4
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Swap Agreements Termination		4
Deferred Capital Gain Country Tax		3
Bank Overdraft		1
Other Liabilities		79
Total Liabilities		33,589
Net Assets	$	410,938
Net Assets Consist of:
Paid-in-Capital	$	317,038
Total Distributable Earnings		93,900
Net Assets	$	410,938

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	March 31, 2021 (000)
CLASS I:
Net Assets	$	27,134
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,485,895
Net Asset Value, Offering and Redemption Price Per Share	$	18.26
CLASS A:
Net Assets	$	188,516
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		10,426,974
Net Asset Value, Redemption Price Per Share	$	18.08
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.00
Maximum Offering Price Per Share	$	19.08
CLASS L:
Net Assets	$	13,520
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		757,503
Net Asset Value, Offering and Redemption Price Per Share	$	17.85
CLASS C:
Net Assets	$	1,877
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		106,333
Net Asset Value, Offering and Redemption Price Per Share	$	17.66
CLASS IS:
Net Assets	$	179,891
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		9,844,920
Net Asset Value, Offering and Redemption Price Per Share	$	18.27

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $67 of Foreign Taxes Withheld)	$	1,701
Interest from Securities of Unaffiliated Issuers (Net of $4 of Foreign Taxes Withheld)		1,501
Dividends from Security of Affiliated Issuer (Note G)		7
Total Investment Income		3,209
Expenses:
Advisory Fees (Note B)		910
Shareholder Services Fees — Class A (Note D)		229
Distribution and Shareholder Services Fees — Class L (Note D)		50
Distribution and Shareholder Services Fees — Class C (Note D)		8
Administration Fees (Note C)		162
Custodian Fees (Note F)		103
Professional Fees		97
Sub Transfer Agency Fees — Class I		11
Sub Transfer Agency Fees — Class A		59
Sub Transfer Agency Fees — Class L		4
Sub Transfer Agency Fees — Class C		—	@
Pricing Fees		64
Registration Fees		31
Shareholder Reporting Fees		27
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		11
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		5
Interest Expenses		2
Other Expenses		14
Total Expenses		1,795
Rebate from Morgan Stanley Affiliate (Note G)		(30	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(7	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Net Expenses		1,758
Net Investment Income		1,451
Realized Gain:
Investments Sold (Net of $5 of Capital Gain Country Tax)		10,209
Foreign Currency Forward Exchange Contracts		294
Foreign Currency Translation		1
Futures Contracts		5,292
Swap Agreements		19,732
Net Realized Gain		35,528
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $2)		21,063
Foreign Currency Forward Exchange Contracts		(403	)
Foreign Currency Translation		(30	)
Futures Contracts		189
Swap Agreements		(2,032	)
Net Change in Unrealized Appreciation (Depreciation)		18,787
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		54,315
Net Increase in Net Assets Resulting from Operations	$	55,766

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Global Strategist Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,451		$	3,962
Net Realized Gain (Loss)		35,528			(1,065	)
Net Change in Unrealized Appreciation (Depreciation)		18,787			17,579
Net Increase in Net Assets Resulting from Operations		55,766			20,476
Dividends and Distributions to Shareholders:
Class I		(509	)		(1,022	)
Class A		(1,964	)		(2,927	)
Class L		(78	)		(214	)
Class C		(6	)		(28	)
Class IS		(2,395	)		(2,790	)
Total Dividends and Distributions to Shareholders		(4,952	)		(6,981	)
Capital Share Transactions:(1)
Class I:
Subscribed		5,096			5,888
Distributions Reinvested		506			1,019
Redeemed		(16,887	)		(31,374	)
Class A:
Subscribed		3,874			2,167
Distributions Reinvested		1,928			2,875
Redeemed		(10,953	)		(37,743	)
Class L:
Exchanged		115			321
Distributions Reinvested		76			209
Redeemed		(1,146	)		(1,507	)
Class C:
Subscribed		252			208
Distributions Reinvested		6			28
Redeemed		(24	)		(709	)
Class IS:
Subscribed		1,975			83
Distributions Reinvested		2,395			2,790
Redeemed		(5,209	)		(937	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(17,996	)		(56,682	)
Total Increase (Decrease) in Net Assets		32,818			(43,187	)
Net Assets:
Beginning of Period		378,120			421,307
End of Period	$	410,938		$	378,120

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Global Strategist Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		294			393
Shares Issued on Distributions Reinvested		29			65
Shares Redeemed		(953	)		(2,066	)
Net Decrease in Class I Shares Outstanding		(630	)		(1,608	)
Class A:
Shares Subscribed		221			140
Shares Issued on Distributions Reinvested		111			184
Shares Redeemed		(633	)		(2,489	)
Net Decrease in Class A Shares Outstanding		(301	)		(2,165	)
Class L:
Shares Exchanged		7			23
Shares Issued on Distributions Reinvested		4			14
Shares Redeemed		(69	)		(103	)
Net Decrease in Class L Shares Outstanding		(58	)		(66	)
Class C:
Shares Subscribed		15			14
Shares Issued on Distributions Reinvested		—	@@		2
Shares Redeemed		(1	)		(50	)
Net Increase (Decrease) in Class C Shares Outstanding		14			(34	)
Class IS:
Shares Subscribed		110			5
Shares Issued on Distributions Reinvested		137			177
Shares Redeemed		(294	)		(70	)
Net Increase (Decrease) in Class IS Shares Outstanding		(47	)		112

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Consolidated Financial Highlights

Global Strategist Portfolio

	Class I
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)(2)
Net Asset Value, Beginning of Period	$	16.08		$	15.45		$	17.05		$	17.48		$	15.79		$	14.58
Income from Investment Operations:
Net Investment Income(3)		0.07			0.17			0.27			0.33			0.30			0.28
Net Realized and Unrealized Gain		2.34			0.74			0.17			0.35			1.57			0.95
Total from Investment Operations		2.41			0.91			0.44			0.68			1.87			1.23
Distributions from and/or in Excess of:
Net Investment Income		(0.22	)		(0.03	)		(0.58	)		(0.21	)		(0.18	)		—
Net Realized Gain		(0.01	)		(0.25	)		(1.46	)		(0.90	)		—			(0.02	)
Total Distributions		(0.23	)		(0.28	)		(2.04	)		(1.11	)		(0.18	)		(0.02	)
Net Asset Value, End of Period	$	18.26		$	16.08		$	15.45		$	17.05		$	17.48		$	15.79
Total Return(4)		15.08	%(7)		5.93	%		3.74	%		3.94	%		11.98	%		8.42	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	27,134		$	34,031		$	57,532		$	62,998		$	69,017		$	74,158
Ratio of Expenses Before Expense Limitation		0.78	%(8)		0.84	%		0.84	%		0.85	%		0.85	%		0.81	%
Ratio of Expenses After Expense Limitation		0.72	%(6)(8)		0.72	%(6)		0.72	%(6)		0.73	%(6)		0.72	%(6)		0.68	%(6)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.72	%(6)(8)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income		0.82	%(6)(8)		1.14	%(6)		1.80	%(6)		1.95	%(6)		1.87	%(6)		1.84	%(6)
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%(8)		0.02	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		62	%(7)		109	%		117	%		132	%		176	%		103	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation would have been 0.05% higher and the Ratio of Net Investment Income would have been 0.05% lower had the custodian not reimbursed the Fund.

(2)  Not consolidated.

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

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

(5)  Performance was positively impacted by approximately 0.21% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 8.21%.

(6)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Consolidated Financial Highlights

Global Strategist Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)(2)
Net Asset Value, Beginning of Period	$	15.91		$	15.30		$	16.90		$	17.32		$	15.64		$	14.50
Income from Investment Operations:
Net Investment Income(3)		0.05			0.13			0.23			0.28			0.25			0.23
Net Realized and Unrealized Gain		2.30			0.73			0.15			0.35			1.56			0.93
Total from Investment Operations		2.35			0.86			0.38			0.63			1.81			1.16
Distributions from and/or in Excess of:
Net Investment Income		(0.17	)		—			(0.52	)		(0.15	)		(0.13	)		—
Net Realized Gain		(0.01	)		(0.25	)		(1.46	)		(0.90	)		—			(0.02	)
Total Distributions		(0.18	)		(0.25	)		(1.98	)		(1.05	)		(0.13	)		(0.02	)
Net Asset Value, End of Period	$	18.08		$	15.91		$	15.30		$	16.90		$	17.32		$	15.64
Total Return(4)		14.86	%(7)		5.65	%		3.38	%		3.68	%		11.64	%		7.98	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	188,516		$	170,643		$	197,271		$	221,707		$	247,483		$	259,999
Ratio of Expenses Before Expense Limitation		1.02	%(8)		1.08	%		1.09	%		1.09	%		1.12	%		1.11	%
Ratio of Expenses After Expense Limitation		1.01	%(6)(8)		1.02	%(6)		1.03	%(6)		1.03	%(6)		1.05	%(6)		0.99	%(6)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.01	%(6)(8)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income		0.57	%(6)(8)		0.87	%(6)		1.49	%(6)		1.66	%(6)		1.52	%(6)		1.56	%(6)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(8)		0.02	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		62	%(7)		109	%		117	%		132	%		176	%		103	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation would have been 0.07% higher and the Ratio of Net Investment Income would have been 0.07% lower had the custodian not reimbursed the Fund.

(2)  Not consolidated.

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

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

(5)  Performance was positively impacted by approximately 0.27% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 7.71%.

(6)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Consolidated Financial Highlights

Global Strategist Portfolio

	Class L
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)(2)
Net Asset Value, Beginning of Period	$	15.67		$	15.15		$	16.73		$	17.15		$	15.47		$	14.41
Income from Investment Operations:
Net Investment Income(3)		0.01			0.05			0.15			0.19			0.16			0.15
Net Realized and Unrealized Gain		2.27			0.72			0.16			0.34			1.55			0.93
Total from Investment Operations		2.28			0.77			0.31			0.53			1.71			1.08
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		—			(0.43	)		(0.05	)		(0.03	)		—
Net Realized Gain		(0.01	)		(0.25	)		(1.46	)		(0.90	)		—			(0.02	)
Total Distributions		(0.10	)		(0.25	)		(1.89	)		(0.95	)		(0.03	)		(0.02	)
Net Asset Value, End of Period	$	17.85		$	15.67		$	15.15		$	16.73		$	17.15		$	15.47
Total Return(4)		14.59	%(7)		5.10	%		2.87	%		3.13	%		11.07	%		7.47	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,520		$	12,773		$	13,356		$	17,665		$	20,605		$	23,051
Ratio of Expenses Before Expense Limitation		1.54	%(8)		1.60	%		1.58	%		1.58	%		1.66	%		1.64	%
Ratio of Expenses After Expense Limitation		1.52	%(6)(8)		1.54	%(6)		1.53	%(6)		1.52	%(6)		1.57	%(6)		1.52	%(6)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.52	%(6)(8)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income		0.07	%(6)(8)		0.36	%(6)		0.97	%(6)		1.12	%(6)		1.00	%(6)		1.03	%(6)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(8)		0.02	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		62	%(7)		109	%		117	%		132	%		176	%		103	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation would have been 0.06% higher and the Ratio of Net Investment Income would have been 0.06% lower had the custodian not reimbursed the Fund.

(2)  Not consolidated.

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

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

(5)  Performance was positively impacted by approximately 0.20% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 7.27%.

(6)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
44

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Consolidated Financial Highlights

Global Strategist Portfolio

	Class C
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)(2)
Net Asset Value, Beginning of Period	$	15.49		$	15.02		$	16.65		$	17.08		$	15.42		$	14.41
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(3)		(0.02	)		0.01			0.11			0.21			0.11			0.10
Net Realized and Unrealized Gain		2.25			0.71			0.15			0.27			1.55			0.93
Total from Investment Operations		2.23			0.72			0.26			0.48			1.66			1.03
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		—			(0.43	)		(0.01	)		—			—
Net Realized Gain		(0.01	)		(0.25	)		(1.46	)		(0.90	)		—			(0.02	)
Total Distributions		(0.06	)		(0.25	)		(1.89	)		(0.91	)		—			(0.02	)
Net Asset Value, End of Period	$	17.66		$	15.49		$	15.02		$	16.65		$	17.08		$	15.42
Total Return(4)		14.45	%(7)		4.81	%		2.55	%		2.83	%		10.77	%		7.13	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,877		$	1,435		$	1,906		$	1,885		$	1,386		$	1,613
Ratio of Expenses Before Expense Limitation		1.88	%(8)		1.98	%		1.93	%		1.99	%		2.02	%		1.94	%
Ratio of Expenses After Expense Limitation		1.83	%(6)(8)		1.82	%(6)		1.82	%(6)		1.83	%(6)		1.82	%(6)		1.81	%(6)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.83	%(6)(8)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.24	)%(6)(8)		0.07	%(6)		0.73	%(6)		1.28	%(6)		0.72	%(6)		0.71	%(6)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(8)		0.02	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		62	%(7)		109	%		117	%		132	%		176	%		103	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation would have been 0.02% higher and the Ratio of Net Investment Income would have been 0.02% lower had the custodian not reimbursed the Fund.

(2)  Not consolidated.

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

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

(5)  Performance was positively impacted by approximately 0.21% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 6.92%.

(6)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
45

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Consolidated Financial Highlights

Global Strategist Portfolio

	Class IS
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)(2)
Net Asset Value, Beginning of Period	$	16.10		$	15.46		$	17.06		$	17.49		$	15.79		$	14.59
Income from Investment Operations:
Net Investment Income(3)		0.08			0.19			0.27			0.37			0.31			0.26
Net Realized and Unrealized Gain		2.33			0.74			0.17			0.31			1.57			0.96
Total from Investment Operations		2.41			0.93			0.44			0.68			1.88			1.22
Distributions from and/or in Excess of:
Net Investment Income		(0.23	)		(0.04	)		(0.58	)		(0.21	)		(0.18	)		—
Net Realized Gain		(0.01	)		(0.25	)		(1.46	)		(0.90	)		—			(0.02	)
Total Distributions		(0.24	)		(0.29	)		(2.04	)		(1.11	)		(0.18	)		(0.02	)
Net Asset Value, End of Period	$	18.27		$	16.10		$	15.46		$	17.06		$	17.49		$	15.79
Total Return(4)		15.04	%(7)		6.02	%		3.77	%		3.98	%		12.08	%		8.42	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	179,891		$	159,238		$	151,242		$	166		$	137		$	143
Ratio of Expenses Before Expense Limitation		0.70	%(8)		0.75	%		0.75	%		1.95	%		2.17	%		5.44	%
Ratio of Expenses After Expense Limitation		0.68	%(6)(8)		0.69	%(6)		0.69	%(6)		0.70	%(6)		0.69	%(6)		0.70	%(6)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.68	%(6)(8)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income		0.91	%(6)(8)		1.21	%(6)		1.76	%(6)		2.13	%(6)		1.88	%(6)		1.68	%(6)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%(8)		0.02	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		62	%(7)		109	%		117	%		132	%		176	%		103	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Not consolidated.

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

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

(5)  Performance was positively impacted by approximately 0.35% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class IS shares would have been approximately 8.07%.

(6)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
46

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements

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

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

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option to purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

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

The Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Strategist Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest, directly or indirectly through the use of derivatives, in securities, commodities, commodity-related instruments and other investments, primarily futures, swaps and notes. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of March 31, 2021, the Subsidiary represented approximately $34,721,000 or approximately 8.45% of the total assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to the commodity markets within the limitations of Subchapter M of the Code and recent Internal Revenue Service ("IRS") revenue rulings, which require that a mutual fund receive no more than ten percent of its gross income from such investments in order to receive favorable tax treatment as a regulated investment company ("RIC"). Tax treatment of the income received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

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

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked

47

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) OTC swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the

clearinghouse or exchange. Total return swaps may also be fair valued using direct accrual/return calculations if prices on the reference asset on the total return leg of the swap are available from a pricing service/vendor for such instrument. In the event that the reference asset on the total return leg of the swap is a benchmark index, then price of such reference asset may be obtained from a pricing service provider or from the benchmark index sponsor; (6) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (7) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize

48

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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

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

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

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value

measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgage	$	—	$	39		$	—	$	39
Agency Fixed Rate Mortgages		—		14,209			—		14,209
Asset-Backed Securities		—		1,702			—		1,702
Collateralized Mortgage Obligations — Agency Collateral Series		—		—	@		—		—	@
Commercial Mortgage-Backed Securities		—		2,237			—		2,237
Corporate Bonds		—		49,719			—		49,719
Mortgages — Other		—		1,963			—		1,963
Sovereign		—		88,191			—		88,191
Supranational		—		4,128			—		4,128
U.S. Treasury Securities		—		12,427			—		12,427
Total Fixed Income Securities		—		174,615			—		174,615
Common Stocks
Aerospace & Defense		2,559		—			—		2,559
Air Freight & Logistics		1,234		—			—		1,234
Airlines		1,534		—			—		1,534
Auto Components		623		—			—		623
Automobiles		3,997		6			—		4,003
Banks		11,250		—			—		11,250
Beverages		2,635		—			—		2,635
Biotechnology		2,451		—			—		2,451
Building Products		1,143		—			—		1,143
Capital Markets		4,653		—			—		4,653
Chemicals		4,017		—			—		4,017
Commercial Banks		2		—			—		2
Commercial Services & Supplies		610		—			—		610
Communications Equipment		1,117		—			—		1,117
Construction & Engineering		3,337		—			—		3,337
Construction Materials		604		—			—		604
Consumer Finance		748		—			—		748
Containers & Packaging		557		—			—		557
Distributors		125		—			—		125
Diversified Consumer Services		18		—			—		18
Diversified Financial Services		1,503		—			—		1,503
Diversified Telecommunication Services		2,738		—			—		2,738
Electric Utilities		2,900		—			—		2,900
Electrical Equipment		1,968		—			—		1,968
Electronic Equipment, Instruments & Components		1,029		—			—		1,029

49

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Energy Equipment & Services	$	295	$	—		$	—	†	$	295	†
Entertainment		2,214		—			—			2,214
Equity Real Estate Investment Trusts (REITs)		5,064		—	@		—			5,064
Food & Staples Retailing		2,303		—			—			2,303
Food Products		3,098		—			—			3,098
Gas Utilities		289		—			—			289
Health Care Equipment & Supplies		4,404		—			—			4,404
Health Care Providers & Services		2,932		—			—			2,932
Health Care Technology		165		—			—			165
Hotels, Restaurants & Leisure		6,854		1			—			6,855
Household Durables		874		—			—			874
Household Products		1,886		—			—			1,886
Independent Power & Renewable Electricity Producers		153		—			—			153
Industrial Conglomerates		1,973		—			—			1,973
Information Technology Services		6,350		—			—			6,350
Insurance		6,173		—			—			6,173
Interactive Media & Services		6,491		—			—			6,491
Internet & Direct Marketing Retail		5,220		—			—			5,220
Leisure Products		80		—			—			80
Life Sciences Tools & Services		1,541		—			—			1,541
Machinery		3,131		—			—			3,131
Marine		179		—			—			179
Media		1,847		—			—			1,847
Metals & Mining		4,880		—			—			4,880
Multi-Line Retail		994		—			—			994
Multi-Utilities		1,417		—			—			1,417
Oil, Gas & Consumable Fuels		11,932		—			—			11,932
Paper & Forest Products		207		—			—			207
Personal Products		1,270		—			—			1,270
Pharmaceuticals		7,738		—			—			7,738
Professional Services		1,699		—			—			1,699
Real Estate Management & Development		841		—			—			841
Road & Rail		2,003		—			—			2,003
Semiconductors & Semiconductor Equipment		6,797		—			—			6,797
Software		9,454		12			—			9,466
Specialty Retail		2,893		—			—			2,893
Tech Hardware, Storage & Peripherals		7,030		—			—			7,030
Textiles, Apparel & Luxury Goods		2,744		—			—			2,744
Tobacco		1,162		—			—			1,162

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Trading Companies & Distributors	$	734		$	—		$	—		$	734
Transportation Infrastructure		4,029			—			—			4,029
Water Utilities		136			—			—			136
Wireless Telecommunication Services		468			—			—			468
Total Common Stocks		185,296			19			—	†		185,315	†
Preferred Stocks
Internet & Direct Marketing Retail		4			—			—			4
Rights		—	@		—	@		—			—	@
Warrants		7			—			—			7
Short-Term Investments
Investment Company		54,468			—			—			54,468
U.S. Treasury Security		—			2,126			—			2,126
Total Short-Term Investments		54,468			2,126			—			56,594
Foreign Currency Forward Exchange Contracts		—			1,380			—			1,380
Futures Contracts		1,003			—			—			1,003
Interest Rate Swap Agreements		—			1,384			—			1,384
Total Return Swap Agreements		—			1,360			—			1,360
Total Assets		240,778			180,884			—	†		421,662	†
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(1,352	)		—			(1,352	)
Futures Contracts		(581	)		—			—			(581	)
Interest Rate Swap Agreements		—			(1,146	)		—			(1,146	)
Total Return Swap Agreements		—			(3,424	)		—			(3,424	)
Total Liabilities		(581	)		(5,922	)		—			(6,503	)
Total	$	240,197		$	174,962		$	—	†	$	415,159	†

@  Value is less than $500.

†  Includes a security valued at zero.

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

50

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

	Common Stock (000)
Beginning Balance	$	—	†
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	—	†
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2021	$	—

†  Includes a security valued at zero.

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

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

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

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

securities are treated as ordinary income for U.S. federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Consolidated Statement of Operations.

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

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

4.  Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative

51

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

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

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are

received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

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

52

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis based on the type of market participant and U.S. Commission ("CFTC") approval of contracts for central clearing and exchange trading.

The Fund may enter into total return swaps in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include, but not be limited to, a specified security, basket of securities or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. Total return swaps may be used to obtain long or short exposure to a security or market without owning or taking physical custody of such security or investing directly in such market. Total return swaps may effectively add leverage to the Fund's portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. Total return swaps are subject to the risk that a counterparty will default on its payment obligations to the Fund thereunder, and conversely, that the Fund will not be able to meet its obligation to the counterparty.

The Fund may enter into interest rate swaps which is an agreement between two parties to exchange their respective commitments to pay or receive interest. Interest rate swaps are generally entered into on a net basis. Interest rate swaps do not involve the delivery of securities, other underlying assets, or principal. Accordingly, the risk of market loss with respect to interest rate swaps is typically limited to the net amount of interest payments that the Fund is contractually obligated to make.

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

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

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund also entered into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. In addition, the Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized gain or loss. The Fund

53

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2021:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Appreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	1,380
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		74	(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		929	(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		1,384	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk		1,360
Total			$	5,127
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Depreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	(1,352	)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(581	)(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		(1,146	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Equity Risk		(3,424	)
Total			$	(6,503	)

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

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative

contract for the six months ended March 31, 2021 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	294
Commodity Risk	Futures Contracts		193
Equity Risk	Futures Contracts		3,416
Interest Rate Risk	Futures Contracts		1,683
Equity Risk	Swap Agreements		20,787
Interest Rate Risk	Swap Agreements		(1,055	)
Total		$	25,318
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(403	)
Commodity Risk	Futures Contracts		(26	)
Equity Risk	Futures Contracts		(159	)
Interest Rate Risk	Futures Contracts		374
Equity Risk	Swap Agreements		(1,554	)
Interest Rate Risk	Swap Agreements		(478	)
Total		$	(2,246	)

At March 31, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	1,380	$	(1,352	)
Swap Agreements		1,360		(3,424	)
Total	$	2,740	$	(4,776	)

(b) Excludes exchange-traded derivatives.

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

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its contract counterparties for certain OTC derivatives in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or

54

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	126	$	(5	)	$	—		$	121
Bank of New York Mellon		6		—			—			6
Barclays Bank PLC		297		(25	)		(272	)		0
BNP Paribas SA		93		(93	)		—			0
Commonwealth Bank of Australia		3		—			—			3
Credit Suisse International		2		—			—			2
Goldman Sachs International		86		(86	)		—			0
JPMorgan Chase Bank NA		2,097		(1,211	)		(886	)		0
State Street Bank and Trust Co.		1		—			—			1
UBS AG		29		(29	)		—			0
Total	$	2,740	$	(1,449	)	$	(1,158	)	$	133

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged(d) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	5	$	(5	)	$	—		$	0
Barclays Bank PLC		60		(25	)		—			35
BNP Paribas SA		812		(93	)		(330	)		389
Citibank NA		63		—			—			63
Goldman Sachs International		2,032		(86	)		(1,922	)		24
JPMorgan Chase Bank NA		1,211		(1,211	)		—			0
Royal Bank of Canada		84		—			—			84
UBS AG		509		(29	)		(429	)		51
Total	$	4,776	$	(1,449	)	$	(2,681	)	$	646

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

For the six months ended March 31, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	140,753,000
Futures Contracts:
Average monthly notional value	$	140,301,000
Swap Agreements:
Average monthly notional amount	$	94,669,000

5.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the 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.

55

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

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

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

B. Advisory/Sub-Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.45% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.74% for Class I shares, 1.09% for Class A shares, 1.59% for Class L shares, 1.84% for Class C shares and 0.71% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as 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 March 31, 2021, approximately $7,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has entered into a Sub-Advisory Agreement with the Sub-Adviser, a wholly-owned subsidiary of Morgan Stanley. The Sub-Adviser provides the Fund with advisory services subject to the overall supervision of the Adviser and the Fund's Officers and Trustees. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

The Adviser provides investment advisory services to the Subsidiary pursuant to the Subsidiary Investment Management Agreement (the "Agreement"). Under the Agreement, the Subsidiary will pay the Adviser at the end of each fiscal quarter, calculated by applying a quarterly rate, based on the annual rate of 0.05%, to the average daily net assets of the Subsidiary.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with

56

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

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

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

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

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

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $138,367,000 and

$129,177,000, respectively. For the six months ended March 31, 2021, purchases and sales of long-term U.S. Government securities were approximately $107,693,000 and $100,991,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by approximately $30,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	44,327	$	198,762	$	188,621	$	7

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	54,468

During the six months ended March 31, 2021, the Fund incurred approximately $2,000 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent 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

57

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for consolidated financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded that there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	5,926	$	1,055	$	9,365	$	25,784

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

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

Permanent differences, primarily due to wash sale adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2020:

Total Distributable Earnings (000)		Paid-in- Capital (000)
$	2	$	(2	)

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	4,953	$	—

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 76.3%.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

58

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

L. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

59

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

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

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

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

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

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

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

60

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice  April 2021

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

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

61

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

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

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

62

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

Definitions

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

Other Important Information

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

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

63

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

64

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

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

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTGSSAN
3565606 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

High Yield Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	13
Statement of Operations	15
Statements of Changes in Net Assets	16
Financial Highlights	18
Notes to Financial Statements	25
Liquidity Risk Management Program	32
U.S. Customer Privacy Notice	33
Trustee and Officer Information	36

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

High Yield Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
High Yield Portfolio Class I	$	1,000.00	$	1,077.80	$	1,021.69	$	3.37	*	$	3.28	*		0.65	%
High Yield Portfolio Class A		1,000.00		1,076.10		1,019.95		5.18	*		5.04	*		1.00
High Yield Portfolio Class L		1,000.00		1,074.70		1,018.70		6.47	*		6.29	*		1.25
High Yield Portfolio Class C		1,000.00		1,071.10		1,016.36		8.88	*		8.65	*		1.72
High Yield Portfolio Class IS		1,000.00		1,078.00		1,021.84		3.21	*		3.13	*		0.62
High Yield Portfolio Class IR		1,000.00		1,078.00		1,021.84		3.21	*		3.13	*		0.62
High Yield Portfolio Class W^		1,000.00		1,044.30		1,018.49		0.00	**		0.00	**		0.00

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Expenses are calculated using the Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 135/365 (to reflect the actual days accrued in the period).

***  Annualized.

^  The Fund commenced offering of Class W Shares on November 16, 2020.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.7%)
Corporate Bonds (96.2%)
Basic Materials (5.6%)
Alcoa Nederland Holding BV
5.50%, 12/15/27 (a)	$	300	$	323
Avient Corp.
5.75%, 5/15/25 (a)		500		532
Axalta Coating Systems LLC
3.38%, 2/15/29 (a)		250		244
Axalta Coating Systems LLC/Axalta Coating Systems Dutch Holding B BV
4.75%, 6/15/27 (a)		225		235
Chemours Co. (The)
5.75%, 11/15/28 (a)		650		686
Eldorado Gold Corp.
9.50%, 6/1/24 (a)		500		546
First Quantum Minerals Ltd.,
6.88%, 10/15/27 (a)		250		268
7.50%, 4/1/25 (a)		500		517
HB Fuller Co.
4.25%, 10/15/28		300		305
Hudbay Minerals, Inc.,
4.50%, 4/1/26 (a)		365		380
6.13%, 4/1/29 (a)		385		412
IAMGOLD Corp.
5.75%, 10/15/28 (a)		550		558
Innophos Holdings, Inc.
9.38%, 2/15/28 (a)		1,000		1,081
Kaiser Aluminum Corp.,
4.63%, 3/1/28 (a)		400		410
6.50%, 5/1/25 (a)		300		319
Kraton Polymers LLC/Kraton Polymers Capital Corp.
4.25%, 12/15/25 (a)		300		302
Minerals Technologies, Inc.
5.00%, 7/1/28 (a)		500		517
Novelis Corp.
4.75%, 1/30/30 (a)		500		516
Olin Corp.
9.50%, 6/1/25 (a)		425		525
PQ Corp.
5.75%, 12/15/25 (a)		575		590
Schweitzer-Mauduit International, Inc.
6.88%, 10/1/26 (a)		750		798
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc.
5.13%, 4/1/29 (a)		525		542
				10,606
Communications (11.6%)
Altice Financing SA
5.00%, 1/15/28 (a)		550		544
Altice France SA
5.13%, 1/15/29 (a)		250		254

	Face Amount (000)		Value (000)
Arches Buyer, Inc.
6.13%, 12/1/28 (a)	$	200	$	206
Avaya, Inc.
6.13%, 9/15/28 (a)		500		532
Block Communications, Inc.
4.88%, 3/1/28 (a)		550		561
C&W Senior Financing DAC
6.88%, 9/15/27 (a)		500		534
Cable One, Inc.
4.00%, 11/15/30 (a)		250		248
CCO Holdings LLC/CCO Holdings Capital Corp.
5.00%, 2/1/28 (a)		400		423
CenturyLink, Inc.
4.00%, 2/15/27 (a)		375		384
Clear Channel Outdoor Holdings, Inc.
7.75%, 4/15/28 (a)		425		421
Clear Channel Worldwide Holdings, Inc.,
5.13%, 8/15/27 (a)		250		252
9.25%, 2/15/24		430		448
CSC Holdings LLC
5.75%, 1/15/30 (a)		985		1,039
Diamond Sports Group LLC/Diamond Sports Finance Co.
6.63%, 8/15/27 (a)		650		339
DISH DBS Corp.
7.75%, 7/1/26		500		552
Entercom Media Corp.
6.50%, 5/1/27 (a)		900		933
EW Scripps Co. (The)
5.13%, 5/15/25 (a)		800		816
GCI LLC
4.75%, 10/15/28 (a)		300		308
Gray Television, Inc.
5.88%, 7/15/26 (a)		250		259
iHeartCommunications, Inc.
5.25%, 8/15/27 (a)		750		773
Lamar Media Corp.
4.00%, 2/15/30		250		250
LCPR Senior Secured Financing DAC,
5.13%, 7/15/29 (a)		300		306
6.75%, 10/15/27 (a)		800		854
Level 3 Financing, Inc.
4.63%, 9/15/27 (a)		500		515
MDC Partners, Inc.
7.50%, 5/1/24 (a)(b)		1,039		1,056
Midcontinent Communications/Midcontinent Finance Corp.
5.38%, 8/15/27 (a)		1,000		1,043
Nexstar Broadcasting, Inc.
5.63%, 7/15/27 (a)		500		525
Outfront Media Capital LLC/Outfront Media Capital Corp.
4.63%, 3/15/30 (a)		750		723

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Communications (cont'd)
Radiate Holdco LLC / Radiate Finance, Inc.
6.50%, 9/15/28 (a)	$	750	$	793
Sable International Finance Ltd.
5.75%, 9/7/27 (a)		500		528
Sirius XM Radio, Inc.
5.00%, 8/1/27 (a)		250		263
Switch Ltd.
3.75%, 9/15/28 (a)		300		296
TEGNA, Inc.,
4.63%, 3/15/28		450		459
5.00%, 9/15/29		300		312
TripAdvisor, Inc.
7.00%, 7/15/25 (a)		175		190
Univision Communications, Inc.,
6.63%, 6/1/27 (a)		425		455
9.50%, 5/1/25 (a)		850		935
UPC Holding BV
5.50%, 1/15/28 (a)		250		259
Urban One, Inc.
7.38%, 2/1/28 (a)		800		829
Virgin Media Finance PLC
5.00%, 7/15/30 (a)		900		900
Ziggo Bond Co. BV
5.13%, 2/28/30 (a)		525		537
Ziggo BV
4.88%, 1/15/30 (a)		350		358
				22,212
Consumer, Cyclical (25.6%)
AAG FH LP/AAG FH Finco, Inc.
9.75%, 7/15/24 (a)		550		535
Adient US LLC
9.00%, 4/15/25 (a)		275		306
American Airlines Group, Inc.
5.00%, 6/1/22 (a)		250		246
American Airlines Inc/AAdvantage Loyalty IP Ltd.
5.75%, 4/20/29 (a)		1,000		1,065
American Axle & Manufacturing, Inc.
6.88%, 7/1/28		650		683
American Builders & Contractors Supply Co., Inc.
5.88%, 5/15/26 (a)		250		259
Aramark Services, Inc.,
4.75%, 6/1/26		250		257
6.38%, 5/1/25 (a)		400		425
Asbury Automotive Group, Inc.
4.75%, 3/1/30		250		259
Ashton Woods USA LLC/Ashton Woods Finance Co.
6.63%, 1/15/28 (a)		725		774
At Home Holding III, Inc.
8.75%, 9/1/25 (a)		750		820
Banijay Entertainment SASU
5.38%, 3/1/25 (a)		825		854

	Face Amount (000)		Value (000)
Beacon Roofing Supply, Inc.
4.88%, 11/1/25 (a)	$	500	$	512
Beazer Homes USA, Inc.
5.88%, 10/15/27		750		778
Boyd Gaming Corp.,
4.75%, 12/1/27		200		204
6.00%, 8/15/26		500		522
Boyne USA, Inc.
7.25%, 5/1/25 (a)		830		865
Burlington Coat Factory Warehouse Corp.
6.25%, 4/15/25 (a)		250		265
Carvana Co.
5.88%, 10/1/28 (a)		600		616
CCM Merger, Inc.
6.38%, 5/1/26 (a)		500		532
CD&R Smokey Buyer, Inc.
6.75%, 7/15/25 (a)		750		805
Century Communities, Inc.
6.75%, 6/1/27		300		320
Core & Main Holdings LP
8.63% Cash, 9.38% PIK, 9/15/24 (a)(c)		350		356
Dana, Inc.
5.38%, 11/15/27		500		526
Dealer Tire LLC/DT Issuer LLC
8.00%, 2/1/28 (a)		575		608
Delta Air Lines, Inc./SkyMiles IP Ltd.
4.75%, 10/20/28 (a)		750		816
Downstream Development Authority of the Quapaw Tribe of Oklahoma
10.50%, 2/15/23 (a)		1,268		1,317
Eagle Intermediate Global Holding BV/Ruyi US Finance LLC
7.50%, 5/1/25 (a)		425		368
Empire Communities Corp.
7.00%, 12/15/25 (a)		550		581
FelCor Lodging LP
6.00%, 6/1/25		250		257
Ferrellgas Escrow LLC / FG Operating Finance Escrow Corp.
5.88%, 4/1/29 (a)		950		939
Ford Motor Co.,
8.50%, 4/21/23		500		558
9.00%, 4/22/25		750		909
Ford Motor Credit Co. LLC
4.13%, 8/17/27		250		259
Forestar Group, Inc.
5.00%, 3/1/28 (a)		500		520
Foundation Building Materials, Inc.
6.00%, 3/1/29 (a)		375		371
G-III Apparel Group Ltd.
7.88%, 8/15/25 (a)		400		436
Guitar Center, Inc.
8.50%, 1/15/26 (a)		175		185

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Hanesbrands, Inc.
4.88%, 5/15/26 (a)	$	250	$	269
Hawaiian Brand Intellectual Property Ltd/HawaiianMiles Loyalty Ltd
5.75%, 1/20/26 (a)		500		532
Hilton Domestic Operating Co., Inc.
3.63%, 2/15/32 (a)		250		243
Installed Building Products, Inc.
5.75%, 2/1/28 (a)		250		262
Interface, Inc.
5.50%, 12/1/28 (a)		200		207
International Game Technology PLC
5.25%, 1/15/29 (a)		375		392
IRB Holding Corp.
7.00%, 6/15/25 (a)		500		539
JB Poindexter & Co., Inc.
7.13%, 4/15/26 (a)		750		794
Ken Garff Automotive LLC
4.88%, 9/15/28 (a)		275		275
L Brands, Inc.
6.95%, 3/1/33		750		838
LBM Acquisition LLC
6.25%, 1/15/29 (a)		550		567
LGI Homes, Inc.
6.88%, 7/15/26 (a)		500		523
Lions Gate Capital Holdings LLC
5.50%, 4/15/29 (a)(d)		750		752
Lithia Motors, Inc.
4.63%, 12/15/27 (a)		500		520
Macy's, Inc.
8.38%, 6/15/25 (a)		750		830
Marriott Ownership Resorts, Inc.
6.13%, 9/15/25 (a)		450		479
Mattamy Group Corp.
5.25%, 12/15/27 (a)		500		525
Mclaren Finance PLC
5.75%, 8/1/22 (a)		550		540
Meritor, Inc.,
4.50%, 12/15/28 (a)		120		121
6.25%, 6/1/25 (a)		250		267
MGM Resorts International,
5.50%, 4/15/27		327		352
6.75%, 5/1/25		250		270
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd.
6.50%, 6/20/27 (a)		750		823
Mohegan Gaming & Entertainment
8.00%, 2/1/26 (a)		550		555
Nathan's Famous, Inc.
6.63%, 11/1/25 (a)		1,000		1,030
National CineMedia LLC
5.75%, 8/15/26		500		437

	Face Amount (000)		Value (000)
New Home Co., Inc. (The)
7.25%, 10/15/25 (a)	$	750	$	778
Panther BF Aggregator 2 LP/Panther Finance Co., Inc.
8.50%, 5/15/27 (a)		465		501
Park River Holdings, Inc.
5.63%, 2/1/29 (a)		450		437
Performance Food Group, Inc.,
5.50%, 10/15/27 (a)		300		314
6.88%, 5/1/25 (a)		500		535
PetSmart, Inc./PetSmart Finance Corp.,
4.75%, 2/15/28 (a)		250		256
7.75%, 2/15/29 (a)		250		271
Picasso Finance Sub, Inc.
6.13%, 6/15/25 (a)		563		599
Powdr Corp.
6.00%, 8/1/25 (a)		750		793
Real Hero Merger Sub 2, Inc.
6.25%, 2/1/29 (a)		475		491
Rite Aid Corp.,
7.50%, 7/1/25 (a)		275		286
8.00%, 11/15/26 (a)		380		400
Sally Holdings LLC/Sally Capital, Inc.
5.63%, 12/1/25		250		258
Scientific Games International, Inc.,
7.00%, 5/15/28 (a)		225		241
8.25%, 3/15/26 (a)		500		537
Speedway Motorsports LLC/Speedway Funding II, Inc.
4.88%, 11/1/27 (a)		500		501
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd.
8.00%, 9/20/25 (a)		500		566
Station Casinos LLC
4.50%, 2/15/28 (a)		550		549
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp.
5.88%, 5/15/25 (a)		810		793
Superior Plus LP/Superior General Partner, Inc.
4.50%, 3/15/29 (a)		400		405
Taylor Morrison Communities, Inc.
5.88%, 6/15/27 (a)		250		277
Tempur Sealy International, Inc.
4.00%, 4/15/29 (a)		350		349
Tenneco, Inc.,
5.13%, 4/15/29 (a)		325		321
7.88%, 1/15/29 (a)		325		365
Titan International, Inc.
6.50%, 11/30/23		1,000		1,015
United Airlines Holdings, Inc.
4.88%, 1/15/25		250		255
Vail Resorts, Inc.
6.25%, 5/15/25 (a)		575		614
White Cap Buyer LLC
6.88%, 10/15/28 (a)		300		319

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Winnebago Industries, Inc.
6.25%, 7/15/28 (a)	$	550	$	590
Wolverine World Wide, Inc.,
5.00%, 9/1/26 (a)		500		509
6.38%, 5/15/25 (a)		300		320
Wyndham Destinations, Inc.
4.63%, 3/1/30 (a)		500		519
				48,814
Consumer, Non-Cyclical (13.1%)
Acadia Healthcare Co., Inc.
5.50%, 7/1/28 (a)		500		527
AdaptHealth LLC,
4.63%, 8/1/29 (a)		500		498
6.13%, 8/1/28 (a)		350		372
Ahern Rentals, Inc.
7.38%, 5/15/23 (a)		925		835
Air Methods Corp.
8.00%, 5/15/25 (a)		800		754
Akumin, Inc.
7.00%, 11/1/25 (a)		500		533
Albertsons Cos., Inc./Safeway, Inc./ New Albertson's, Inc./Albertson's LLC
5.88%, 2/15/28 (a)		250		267
Alta Equipment Group, Inc.
5.63%, 4/15/26 (a)(d)		500		508
AMN Healthcare, Inc.
4.00%, 4/15/29 (a)		200		200
Bausch Health Cos, Inc.
9.00%, 12/15/25 (a)		450		490
Catalent Pharma Solutions, Inc.,
3.13%, 2/15/29 (a)		250		240
5.00%, 7/15/27 (a)		250		262
Central Garden & Pet Co.
5.13%, 2/1/28		450		476
Cheplapharm Arzneimittel GmbH
5.50%, 1/15/28 (a)		550		572
Chobani LLC/Chobani Finance Corp., Inc.
7.50%, 4/15/25 (a)		700		730
CHS/Community Health Systems, Inc.
6.88%, 4/15/29 (a)		450		472
CPI CG, Inc.
8.63%, 3/15/26 (a)		500		525
Edgewell Personal Care Co.
5.50%, 6/1/28 (a)		500		529
Emergent BioSolutions, Inc.
3.88%, 8/15/28 (a)		275		269
Encompass Health Corp.
4.63%, 4/1/31		150		155
Endo Dac/Endo Finance LLC/Endo Finco, Inc.
6.00%, 7/15/23 (a)		778		701
Endo Luxembourg Finance Co. I Sarl/Endo US, Inc.
6.13%, 4/1/29 (a)		500		505

	Face Amount (000)		Value (000)
FAGE International SA/FAGE USA Dairy Industry, Inc.
5.63%, 8/15/26 (a)	$	500	$	517
Garda World Security Corp.
9.50%, 11/1/27 (a)		900		998
H-Food Holdings LLC/Hearthside Finance Co., Inc.
8.50%, 6/1/26 (a)		1,000		1,027
Hadrian Merger Sub, Inc.
8.50%, 5/1/26 (a)		350		364
Harsco Corp.
5.75%, 7/31/27 (a)		600		615
Jaguar Holding Co. II/PPD Development LP
5.00%, 6/15/28 (a)		300		313
Lamb Weston Holdings, Inc.
4.88%, 11/1/26 (a)		250		259
Michael Baker International LLC
8.75%, 3/1/23 (a)		800		815
Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc.
7.88%, 10/1/22 (a)		800		791
Nielsen Finance LLC/Nielsen Finance Co.
5.63%, 10/1/28 (a)		500		527
Owens & Minor, Inc.
4.50%, 3/31/29 (a)		175		176
P&L Development LLC/PLD Finance Corp.
7.75%, 11/15/25 (a)		400		429
Post Holdings, Inc.
5.50%, 12/15/29 (a)		150		161
Providence Service Corp. (The)
5.88%, 11/15/25 (a)		350		369
RP Escrow Issuer LLC
5.25%, 12/15/25 (a)		500		519
Select Medical Corp.
6.25%, 8/15/26 (a)		500		532
Service Corp. International
5.13%, 6/1/29		250		269
Signal Parent, Inc.
6.13%, 4/1/29 (a)(d)		600		596
Simmons Foods Inc/Simmons Prepared Foods Inc/Simmons Pet Food Inc/Simmons Feed
4.63%, 3/1/29 (a)		500		505
Sotheby's
7.38%, 10/15/27 (a)		450		487
Spectrum Brands, Inc.
5.00%, 10/1/29 (a)		500		529
Surgery Center Holdings, Inc.,
6.75%, 7/1/25 (a)		650		666
10.00%, 4/15/27 (a)		700		773
Teleflex, Inc.
4.88%, 6/1/26		150		154
Tenet Healthcare Corp.
6.13%, 10/1/28 (a)		250		261

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
Teva Pharmaceutical Finance Netherlands III BV
3.15%, 10/1/26	$	540	$	517
TMS International Holding Corp.
7.25%, 8/15/25 (a)		1,000		1,023
US Foods, Inc.
6.25%, 4/15/25 (a)		436		468
				25,080
Diversified (0.5%)
Trident TPI Holdings, Inc. 6.63%, 11/1/25 (a)		1,000		1,021
Energy (12.0%)
Archrock Partners LP/Archrock Partners Finance Corp.,
6.25%, 4/1/28 (a)		200		204
6.88%, 4/1/27 (a)		300		313
Baytex Energy Corp.
5.63%, 6/1/24 (a)		1,000		942
Blue Racer Midstream LLC/Blue Racer Finance Corp.
6.63%, 7/15/26 (a)		850		875
CITGO Petroleum Corp.
6.38%, 6/15/26 (a)		200		202
CNX Resources Corp.
6.00%, 1/15/29 (a)		750		781
Comstock Resources, Inc.
6.75%, 3/1/29 (a)		500		513
CrownRock LP/CrownRock Finance, Inc.
5.63%, 10/15/25 (a)		825		843
Endeavor Energy Resources LP/EER Finance, Inc.,
5.75%, 1/30/28 (a)		650		688
6.63%, 7/15/25 (a)		250		268
Energy Ventures Gom LLC/EnVen Finance Corp.
11.00%, 2/15/23 (a)		1,200		1,177
Global Partners LP/GLP Finance Corp.
7.00%, 8/1/27		840		888
Hilcorp Energy I LP/Hilcorp Finance Co.
5.75%, 2/1/29 (a)		275		278
Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp.
6.00%, 8/1/26 (a)		700		725
Martin Midstream Partners LP/Martin Midstream Finance Corp.,
10.00%, 2/29/24 (a)		218		229
11.50%, 2/28/25 (a)		992		1,007
Matador Resources Co.
5.88%, 9/15/26		800		780
Murphy Oil Corp.,
5.75%, 8/15/25		110		110
5.88%, 12/1/27		200		196
6.38%, 7/15/28		800		802
Murphy Oil USA, Inc.
5.63%, 5/1/27		500		524

	Face Amount (000)		Value (000)
NuStar Logistics LP
6.38%, 10/1/30	$	900	$	975
Occidental Petroleum Corp.,
2.90%, 8/15/24		875		867
3.20%, 8/15/26		270		260
6.13%, 1/1/31		1,405		1,554
6.95%, 7/1/24		875		962
Oceaneering International, Inc.
6.00%, 2/1/28		775		743
Parkland Corp.
4.50%, 10/1/29 (a)		250		251
Parkland Fuel Corp.
5.88%, 7/15/27 (a)		250		267
PBF Holding Co. LLC/PBF Finance Corp., Series WI
6.00%, 2/15/28		750		555
Rockies Express Pipeline LLC
3.60%, 5/15/25 (a)		500		502
Sunoco LP / Sunoco Finance Corp.
4.50%, 5/15/29 (a)		200		200
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.,
6.00%, 12/31/30 (a)		375		371
7.50%, 10/1/25 (a)		250		270
Targa Resources Partners LP/Targa Resources Partners Finance Corp.,
4.88%, 2/1/31 (a)		400		406
5.50%, 3/1/30		500		525
TransMontaigne Partners LP/TLP Finance Corp.
6.13%, 2/15/26		250		252
Vermilion Energy, Inc.
5.63%, 3/15/25 (a)		750		710
Viper Energy Partners LP
5.38%, 11/1/27 (a)		830		865
				22,880
Finance (7.5%)
AHP Health Partners, Inc.
9.75%, 7/15/26 (a)		940		1,022
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer
6.75%, 10/15/27 (a)		650		693
Compass Group Diversified Holdings LLC
5.25%, 4/15/29 (a)		700		735
CTR Partnership LP/CareTrust Capital Corp.
5.25%, 6/1/25		508		523
Cushman & Wakefield US Borrower LLC
6.75%, 5/15/28 (a)		400		434
Fly Leasing Ltd.
5.25%, 10/15/24		675		690
Freedom Mortgage Corp.,
7.63%, 5/1/26 (a)		325		341
8.25%, 4/15/25 (a)		500		522

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
GTCR AP Finance, Inc.
8.00%, 5/15/27 (a)	$	600	$	646
Howard Hughes Corp. (The)
4.13%, 2/1/29 (a)		300		294
HUB International Ltd.
7.00%, 5/1/26 (a)		482		501
Icahn Enterprises LP/Icahn Enterprises Finance Corp.,
4.38%, 2/1/29 (a)		350		342
5.25%, 5/15/27		250		259
Iron Mountain, Inc.
5.25%, 7/15/30 (a)		300		310
iStar, Inc.
4.25%, 8/1/25		250		252
LD Holdings Group LLC,
6.13%, 4/1/28 (a)		250		254
6.50%, 11/1/25 (a)		350		367
LPL Holdings, Inc.
4.00%, 3/15/29 (a)		300		303
MGIC Investment Corp.
5.25%, 8/15/28		300		312
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.,
4.63%, 6/15/25 (a)		150		158
5.75%, 2/1/27		325		359
MPT Operating Partnership LP/MPT Finance Corp.
4.63%, 8/1/29		500		527
NMI Holdings, Inc.
7.38%, 6/1/25 (a)		400		462
Oxford Finance LLC/Oxford Finance Co-Issuer II, Inc.
6.38%, 12/15/22 (a)		750		764
PennyMac Financial Services, Inc.
5.38%, 10/15/25 (a)		500		519
Radian Group, Inc.
6.63%, 3/15/25		250		280
RHP Hotel Properties LP/RHP Finance Corp.,
4.50%, 2/15/29 (a)		250		252
4.75%, 10/15/27		250		256
SBA Communications Corp., Series WI
3.88%, 2/15/27		300		307
StoneX Group, Inc.
8.63%, 6/15/25 (a)		749		792
United Wholesale Mortgage LLC
5.50%, 4/15/29 (a)		275		275
Vertical US Newco, Inc.
5.25%, 7/15/27 (a)		550		577
				14,328
Industrials (16.6%)
American Woodmark Corp. 4.88%, 3/15/26 (a)		250		257

	Face Amount (000)		Value (000)
Apex Tool Group LLC/BC Mountain Finance, Inc.
9.00%, 2/15/23 (a)	$	1,000	$	1,004
Arcosa, Inc.
4.38%, 4/15/29 (a)		140		140
Bombardier, Inc.
6.13%, 1/15/23 (a)		600		625
Brand Industrial Services, Inc.
8.50%, 7/15/25 (a)		1,000		1,010
Brundage-Bone Concrete Pumping Holdings, Inc.
6.00%, 2/1/26 (a)		400		418
Builders FirstSource, Inc.
5.00%, 3/1/30 (a)		500		525
Cargo Aircraft Management, Inc.
4.75%, 2/1/28 (a)		500		517
Cleaver-Brooks, Inc.
7.88%, 3/1/23 (a)		850		836
Core & Main LP
6.13%, 8/15/25 (a)		500		514
Cornerstone Building Brands, Inc.
6.13%, 1/15/29 (a)		275		293
CP Atlas Buyer, Inc.
7.00%, 12/1/28 (a)		800		842
Dycom Industries, Inc.
4.50%, 4/15/29 (a)(d)		400		402
EnerSys
4.38%, 12/15/27 (a)		350		359
EnPro Industries, Inc.
5.75%, 10/15/26		400		425
Flex Acquisition Co., Inc.
6.88%, 1/15/25 (a)		600		611
FXI Holdings, Inc.
7.88%, 11/1/24 (a)		688		710
GPC Merger Sub, Inc.
7.13%, 8/15/28 (a)		550		586
Greif, Inc.
6.50%, 3/1/27 (a)		175		185
Griffon Corp.
5.75%, 3/1/28		750		799
Grinding Media, Inc./Moly-Cop AltaSteel Ltd.
7.38%, 12/15/23 (a)		800		820
Hillenbrand, Inc.
3.75%, 3/1/31		350		343
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC
6.00%, 9/15/28 (a)		500		517
Intertape Polymer Group, Inc.
7.00%, 10/15/26 (a)		1,075		1,135
JPW Industries Holding Corp.
9.00%, 10/1/24 (a)		1,050		1,060
KBR, Inc.
4.75%, 9/30/28 (a)		330		336
Kenan Advantage Group, Inc. (The)
7.88%, 7/31/23 (a)		1,000		1,000

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Koppers, Inc.
6.00%, 2/15/25 (a)	$	750	$	774
Kratos Defense & Security Solutions, Inc.
6.50%, 11/30/25 (a)		750		791
Manitowoc Co., Inc. (The)
9.00%, 4/1/26 (a)		575		621
Mauser Packaging Solutions Holding Co.
7.25%, 4/15/25 (a)		1,000		1,001
Moog, Inc.
4.25%, 12/15/27 (a)		500		511
New Enterprise Stone & Lime Co., Inc.,
6.25%, 3/15/26 (a)		575		590
9.75%, 7/15/28 (a)		500		562
Owens-Brockway Glass Container, Inc.
6.63%, 5/13/27 (a)		500		545
PGT Escrow Issuer, Inc.
6.75%, 8/1/26 (a)		500		533
Plastipak Holdings, Inc.
6.25%, 10/15/25 (a)		750		773
SRM Escrow Issuer LLC
6.00%, 11/1/28 (a)		550		577
Standard Industries, Inc.
5.00%, 2/15/27 (a)		250		261
Stevens Holding Co., Inc.
6.13%, 10/1/26 (a)		350		377
Summit Materials LLC/Summit Materials Finance Corp.
5.25%, 1/15/29 (a)		500		523
TopBuild Corp.
3.63%, 3/15/29 (a)		350		347
TransDigm, Inc.
5.50%, 11/15/27		750		777
TriMas Corp.
4.13%, 4/15/29 (a)		500		501
Triumph Group, Inc.,
6.25%, 9/15/24 (a)		500		509
8.88%, 6/1/24 (a)		275		310
Trivium Packaging Finance BV
8.50%, 8/15/27 (a)		550		598
TTM Technologies, Inc.
4.00%, 3/1/29 (a)		850		840
Tutor Perini Corp.
6.88%, 5/1/25 (a)		750		776
US Concrete, Inc.
5.13%, 3/1/29 (a)		375		387
VM Consolidated, Inc.
5.50%, 4/15/29 (a)		325		333
Waste Pro USA, Inc.
5.50%, 2/15/26 (a)		475		488
Watco Cos. LLC/Watco Finance Corp.
6.50%, 6/15/27 (a)		750		792

	Face Amount (000)		Value (000)
XPO Logistics, Inc.
6.25%, 5/1/25 (a)	$	300	$	323
				31,689
Technology (2.9%)
Boxer Parent Co., Inc.
7.13%, 10/2/25 (a)		725		779
BY Crown Parent LLC
7.38%, 10/15/24 (a)		428		437
CDK Global, Inc.
5.25%, 5/15/29 (a)		250		268
Crowdstrike Holdings, Inc.
3.00%, 2/15/29		225		220
Diebold Nixdorf, Inc.,
8.50%, 4/15/24		350		358
9.38%, 7/15/25 (a)		325		363
IQVIA, Inc.
5.00%, 5/15/27 (a)		250		264
J2 Global, Inc.
4.63%, 10/15/30 (a)		800		809
NCR Corp.
5.13%, 4/15/29 (a)(d)		250		252
ON Semiconductor Corp.
3.88%, 9/1/28 (a)		200		206
Playtika Holding Corp.
4.25%, 3/15/29 (a)		650		642
Rackspace Technology Global, Inc.
5.38%, 12/1/28 (a)		425		433
Synaptics, Inc.
4.00%, 6/15/29 (a)		125		124
Unisys Corp.
6.88%, 11/1/27 (a)		375		412
				5,567
Utilities (0.8%)
LBC Tank Terminals Holding Netherlands BV
6.88%, 5/15/23 (a)		950		954
PG&E Corp.
5.25%, 7/1/30		500		531
				1,485
				183,682
Variable Rate Senior Loan Interests (2.5%)
Communication Services (0.2%)
CommScope, Inc., 2019 Term B
1 Month USD LIBOR + 3.25%, 3.36%, 4/6/26 (e)		345		343
Communications (0.4%)
Terrier Media Buyer, Inc., Term B
1 Month USD LIBOR + 3.50%, 3.61%, 12/17/26 (e)		700		695

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (0.6%)
Playa Resorts Holding BV, 2017 Term Loan B 3 Month USD LIBOR + 2.75%, 3.75%, 4/29/24 (e)	$	627	$	604
Topgolf International, Inc., Term B 3 Month USD LIBOR + 6.25%, 7.00%, 2/8/26 (e)		490		500
				1,104
Consumer, Non-Cyclical (0.3%)
H Food Holdings LLC, 2018 Term Loan B 1 Month USD LIBOR + 3.69%, 3.80%, 5/23/25 (e)		656		651
Energy (0.0%)
Gavilan Resources LLC, 2nd Lien Term 3 Month USD LIBOR + 6.00%, 7.00%, 3/1/24 (e)(f)(g)		1,000		—
Industrials (1.0%)
Airxcel, Inc., 1st Lien Term 3 Month USD LIBOR + 4.50%, 4.61%, 4/28/25 (e)		631		630
Associated Asphalt Partners LLC, Term B 3 Month USD LIBOR + 5.25%, 6.25%, 4/5/24 (e)		960		899
Titan Acquisition Limited, 2018 Term Loan B 3 Month USD LIBOR + 3.00%, 3.27%, 3/28/25 (e)		509		500
				2,029
				4,822
Total Fixed Income Securities (Cost $182,890)				188,504
	Shares
Common Stocks (0.3%)
Auto Components (0.0%)
Exide Technologies (h)		592		0
Equity Real Estate Investment Trusts (REITs) (0.1%)
American Gilsonite Co. (h)		500		128
Machinery (0.0%)
Iracore International Holdings, Inc., Class A (h)(i)		470		23
Oil, Gas & Consumable Fuels (0.1%)
Lonestar Resources US, Inc. (h)		42,816		240
Semiconductors & Semiconductor Equipment (0.0%)
UC Holdings, Inc. (h)		2,826		26
Transportation (0.1%)
Syncreon Group BV/Syncreon Global Finance US, Inc. (h)		1,441		117
Total Common Stocks (Cost $255)				534

	No. of Warrants		Value (000)
Warrant (0.0%)
Transportation (0.0%)
Syncreon Group BV/Syncreon Global Finance US, Inc. expires 10/2/24 (Cost $—)		2,266	$	50
	Shares
Short-Term Investment (0.2%)
Investment Company (0.2%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $402)		402,485		402
Total Investments (99.2%) (Cost $183,547) (j)(k)				189,490
Other Assets in Excess of Liabilities (0.8%)				1,523
Net Assets (100.0%)			$	191,013

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

(b)  Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2021. Maturity date disclosed is the ultimate maturity date.

(c)  PIK: Payment-in-kind security for which part of the income earned may be paid as additional principal.

(d)  When-issued security.

(e)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(f)  Non-income producing security; bond in default.

(g)  Issuer in bankruptcy.

(h)  Non-income producing security.

(i)  At March 31, 2021, the Fund held a fair valued security valued at approximately $23,000 representing 0.01% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Trust's (as defined herein) Trustees.

(j)  Securities are available for collateral in connection with purchase of a when-issued securities.

(k)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,168,000 and the aggregate gross unrealized depreciation is approximately $2,225,000, resulting in net unrealized appreciation of approximately $5,943,000.

LIBOR  London Interbank Offered Rate.

PIK  Payment-in-Kind. Income may be paid in additional securities or cash at the discretion of the issuer.

REITs  Real Estate Investment Trusts.

USD  United States Dollar.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Consumer, Cyclical		25.8	%
Industrials		16.7
Consumer, Non-Cyclical		13.2
Energy		12.1
Communications		11.7
Finance		7.6
Other*		7.3
Basic Materials		5.6
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $183,145)	$	189,088
Investment in Security of Affiliated Issuer, at Value (Cost $402)		402
Total Investments in Securities, at Value (Cost $183,547)		189,490
Cash		644
Interest Receivable		2,998
Receivable for Investments Sold		1,324
Receivable for Fund Shares Sold		262
Receivable from Affiliate		—	@
Other Assets		116
Total Assets		194,834
Liabilities:
Payable for Investments Purchased		3,450
Payable for Fund Shares Redeemed		140
Payable for Advisory Fees		121
Payable for Professional Fees		30
Payable for Sub Transfer Agency Fees — Class I		17
Payable for Sub Transfer Agency Fees — Class A		3
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Administration Fees		13
Payable for Shareholder Services Fees — Class A		3
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		6
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Custodian Fees		7
Other Liabilities		29
Total Liabilities		3,821
Net Assets	$	191,013
Net Assets Consist of:
Paid-in-Capital	$	199,080
Total Accumulated Loss		(8,067	)
Net Assets	$	191,013

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2021 (000)
CLASS I:
Net Assets	$	159,884
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		16,624,768
Net Asset Value, Offering and Redemption Price Per Share	$	9.62
CLASS A:
Net Assets	$	14,932
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,555,462
Net Asset Value, Redemption Price Per Share	$	9.60
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.32
Maximum Offering Price Per Share	$	9.92
CLASS L:
Net Assets	$	432
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		45,002
Net Asset Value, Offering and Redemption Price Per Share	$	9.60
CLASS C:
Net Assets	$	7,409
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		772,973
Net Asset Value, Offering and Redemption Price Per Share	$	9.59
CLASS IS:
Net Assets	$	8,335
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		866,530
Net Asset Value, Offering and Redemption Price Per Share	$	9.62
CLASS IR:
Net Assets	$	11
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,141
Net Asset Value, Offering and Redemption Price Per Share	$	9.62
CLASS W:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,086
Net Asset Value, Offering and Redemption Price Per Share	$	9.62

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

High Yield Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	5,930
Dividends from Securities of Unaffiliated Issuers		11
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		5,941
Expenses:
Advisory Fees (Note B)		563
Sub Transfer Agency Fees — Class I		91
Sub Transfer Agency Fees — Class A		8
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		3
Professional Fees		79
Administration Fees (Note C)		75
Shareholder Services Fees — Class A (Note D)		19
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		37
Registration Fees		42
Pricing Fees		16
Shareholder Reporting Fees		13
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Transfer Agency Fees — Class IR (Note E)		1
Transfer Agency Fees — Class W (Note E)		1
Custodian Fees (Note F)		8
Trustees' Fees and Expenses		3
Interest Expenses		3
Other Expenses		11
Total Expenses		983
Waiver of Advisory Fees (Note B)		(229	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(71	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class W (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		679
Net Investment Income		5,262
Realized Gain:
Investments Sold		457
Change in Unrealized Appreciation (Depreciation):
Investments		8,251
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		8,708
Net Increase in Net Assets Resulting from Operations	$	13,970

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

High Yield Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	5,262		$	11,662
Net Realized Gain (Loss)		457			(12,570	)
Net Change in Unrealized Appreciation (Depreciation)		8,251			(417	)
Net Increase (Decrease) in Net Assets Resulting from Operations		13,970			(1,325	)
Dividends and Distributions to Shareholders:
Class I		(4,612	)		(10,175	)
Class A		(422	)		(1,185	)
Class L		(11	)		(25	)
Class C		(178	)		(300	)
Class IS		(181	)		(284	)
Class IR		(—	@)		(1	)
Class W		(—	@)		—
Total Dividends and Distributions to Shareholders		(5,404	)		(11,970	)
Capital Share Transactions:(1)
Class I:
Subscribed		15,203			47,804
Distributions Reinvested		4,612			10,167
Redeemed		(22,686	)		(66,806	)
Class A:
Subscribed		4,536			11,003
Distributions Reinvested		420			1,080
Redeemed		(5,338	)		(19,692	)
Class L:
Distributions Reinvested		11			25
Redeemed		(23	)		(40	)
Class C:
Subscribed		971			4,023
Distributions Reinvested		177			297
Redeemed		(1,719	)		(1,823	)
Class IS:
Subscribed		2,442			13,072
Distributions Reinvested		181			284
Redeemed		(23	)		(9,316	)
Class IR:
Distributions Reinvested		—	@		1
Class W:
Subscribed		10	(a)		—
Distributions Reinvested		—	@		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(1,226	)		(9,921	)
Total Increase (Decrease) in Net Assets		7,340			(23,216	)
Net Assets:
Beginning of Period		183,673			206,889
End of Period	$	191,013		$	183,673

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

High Yield Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		1,595			5,249
Shares Issued on Distributions Reinvested		490			1,101
Shares Redeemed		(2,391	)		(7,471	)
Net Decrease in Class I Shares Outstanding		(306	)		(1,121	)
Class A:
Shares Subscribed		481			1,208
Shares Issued on Distributions Reinvested		45			117
Shares Redeemed		(562	)		(2,234	)
Net Decrease in Class A Shares Outstanding		(36	)		(909	)
Class L:
Shares Issued on Distributions Reinvested		1			3
Shares Redeemed		(2	)		(5	)
Net Decrease in Class L Shares Outstanding		(1	)		(2	)
Class C:
Shares Subscribed		102			466
Shares Issued on Distributions Reinvested		19			32
Shares Redeemed		(182	)		(201	)
Net Increase (Decrease) in Class C Shares Outstanding		(61	)		297
Class IS:
Shares Subscribed		254			1,547
Shares Issued on Distributions Reinvested		19			32
Shares Redeemed		(2	)		(1,014	)
Net Increase in Class IS Shares Outstanding		271			565
Class IR:
Shares Issued on Distributions Reinvested		—	@@		—	@@
Class W:
Shares Subscribed		1	(a)		—
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class W Shares Outstanding		1			—

@  Amount is less than $500.

@@  Amount is less than 500 shares.

(a)  For the period November 16, 2020 to March 31, 2021.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

High Yield Portfolio

	Class I
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.19		$	9.78		$	9.96		$	10.15		$	9.92		$	9.80
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.27			0.57			0.63			0.65			0.70			0.67
Net Realized and Unrealized Gain (Loss)		0.44			(0.57	)		(0.19	)		(0.16	)		0.20			0.13
Total from Investment Operations		0.71			0.00			0.44			0.49			0.90			0.80
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.59	)		(0.62	)		(0.68	)		(0.67	)		(0.68	)
Net Asset Value, End of Period	$	9.62		$	9.19		$	9.78		$	9.96		$	10.15		$	9.92
Total Return(3)		7.78	%(7)		0.15	%		4.68	%		5.01	%		9.40	%		8.72	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	159,884		$	155,539		$	176,483		$	149,683		$	64,007		$	49,990
Ratio of Expenses Before Expense Limitation		0.98	%(8)		1.02	%		0.98	%		1.00	%		1.06	%		1.02	%
Ratio of Expenses After Expense Limitation		0.65	%(4)(8)		0.65	%(4)		0.65	%(4)		0.65	%(4)		0.66	%(4)		0.66	%(4)(5)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.65	%(4)(8)		0.65	%(4)		0.65	%(4)		0.65	%(4)		0.65	%(4)		N/A
Ratio of Net Investment Income		5.67	%(4)(8)		6.20	%(4)		6.51	%(4)		6.49	%(4)		7.01	%(4)		7.09	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		30	%(7)		69	%		42	%		39	%		73	%		74	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.65% for Class I shares. Prior to January 4, 2016, the maximum ratio was 0.75% for Class I shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

High Yield Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.17		$	9.76		$	9.94		$	10.13		$	9.90		$	9.78
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.25			0.55			0.60			0.61			0.67			0.64
Net Realized and Unrealized Gain (Loss)		0.44			(0.58	)		(0.20	)		(0.16	)		0.20			0.12
Total from Investment Operations		0.69			(0.03	)		0.40			0.45			0.87			0.76
Distributions from and/or in Excess of:
Net Investment Income		(0.26	)		(0.56	)		(0.58	)		(0.64	)		(0.64	)		(0.64	)
Net Asset Value, End of Period	$	9.60		$	9.17		$	9.76		$	9.94		$	10.13		$	9.90
Total Return(3)		7.61	%(7)		(0.22	)%		4.28	%		4.64	%		9.04	%		8.24	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14,932		$	14,595		$	24,401		$	30,242		$	68,878		$	59,139
Ratio of Expenses Before Expense Limitation		1.24	%(8)		1.31	%		1.23	%		1.29	%		1.34	%		1.33	%
Ratio of Expenses After Expense Limitation		1.00	%(4)(8)		1.00	%(4)		0.99	%(4)		1.00	%(4)		1.01	%(4)		1.02	%(4)(5)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.99	%(4)(8)		1.00	%(4)		0.99	%(4)		1.00	%(4)		1.00	%(4)		N/A
Ratio of Net Investment Income		5.33	%(4)(8)		5.87	%(4)		6.17	%(4)		6.14	%(4)		6.65	%(4)		6.76	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		30	%(7)		69	%		42	%		39	%		73	%		74	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class A shares. Prior to January 4, 2016, the maximum ratio was 1.10% for Class A shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

High Yield Portfolio

	Class L
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.17		$	9.76		$	9.94		$	10.13		$	9.91		$	9.78
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.24			0.52			0.57			0.59			0.64			0.62
Net Realized and Unrealized Gain (Loss)		0.44			(0.58	)		(0.19	)		(0.16	)		0.19			0.13
Total from Investment Operations		0.68			(0.06	)		0.38			0.43			0.83			0.75
Distributions from and/or in Excess of:
Net Investment Income		(0.25	)		(0.53	)		(0.56	)		(0.62	)		(0.61	)		(0.62	)
Net Asset Value, End of Period	$	9.60		$	9.17		$	9.76		$	9.94		$	10.13		$	9.91
Total Return(3)		7.47	%(7)		(0.46	)%		4.06	%		4.37	%		8.75	%		7.95	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	432		$	425		$	468		$	504		$	502		$	628
Ratio of Expenses Before Expense Limitation		1.86	%(8)		1.91	%		1.86	%		1.91	%		1.90	%		1.83	%
Ratio of Expenses After Expense Limitation		1.25	%(4)(8)		1.25	%(4)		1.25	%(4)		1.25	%(4)		1.26	%(4)		1.28	%(4)(5)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.25	%(4)(8)		1.25	%(4)		1.25	%(4)		1.25	%(4)		1.25	%(4)		N/A
Ratio of Net Investment Income		5.08	%(4)(8)		5.60	%(4)		5.93	%(4)		5.90	%(4)		6.40	%(4)		6.51	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		30	%(7)		69	%		42	%		39	%		73	%		74	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class L shares. Prior to January 4, 2016, the maximum ratio was 1.35% for Class L shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

High Yield Portfolio

	Class C
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.16		$	9.75		$	9.93		$	10.12		$	9.89		$	9.78
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.22			0.46			0.52			0.54			0.59			0.57
Net Realized and Unrealized Gain (Loss)		0.43			(0.56	)		(0.19	)		(0.16	)		0.20			0.12
Total from Investment Operations		0.65			(0.10	)		0.33			0.38			0.79			0.69
Distributions from and/or in Excess of:
Net Investment Income		(0.22	)		(0.49	)		(0.51	)		(0.57	)		(0.56	)		(0.58	)
Net Asset Value, End of Period	$	9.59		$	9.16		$	9.75		$	9.93		$	10.12		$	9.89
Total Return(3)		7.11	%(7)		(0.93	)%		3.55	%		3.91	%		8.24	%		7.47	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,409		$	7,633		$	5,226		$	5,811		$	3,585		$	2,908
Ratio of Expenses Before Expense Limitation		1.96	%(8)		2.02	%		1.98	%		2.01	%		2.09	%		2.12	%
Ratio of Expenses After Expense Limitation		1.72	%(4)(8)		1.74	%(4)		1.74	%(4)		1.73	%(4)		1.76	%(4)		1.77	%(4)(5)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.72	%(4)(8)		1.74	%(4)		1.74	%(4)		1.73	%(4)		1.75	%(4)		N/A
Ratio of Net Investment Income		4.60	%(4)(8)		5.06	%(4)		5.43	%(4)		5.41	%(4)		5.90	%(4)		6.00	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		30	%(7)		69	%		42	%		39	%		73	%		74	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class C shares. Prior to January 4, 2016, the maximum ratio was 1.85% for Class C shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

High Yield Portfolio

	Class IS
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.19		$	9.78		$	9.96		$	10.15		$	9.92		$	9.79
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.27			0.55			0.64			0.65			0.69			0.67
Net Realized and Unrealized Gain (Loss)		0.44			(0.55	)		(0.20	)		(0.16	)		0.21			0.14
Total from Investment Operations		0.71			0.00			0.44			0.49			0.90			0.81
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.59	)		(0.62	)		(0.68	)		(0.67	)		(0.68	)
Net Asset Value, End of Period	$	9.62		$	9.19		$	9.78		$	9.96		$	10.15		$	9.92
Total Return(3)		7.80	%(7)		0.18	%		4.71	%		5.04	%		9.43	%		8.75	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8,335		$	5,471		$	301		$	865		$	560		$	13,789
Ratio of Expenses Before Expense Limitation		0.90	%(8)		0.94	%		1.11	%		1.15	%		0.99	%		0.93	%
Ratio of Expenses After Expense Limitation		0.62	%(4)(8)		0.62	%(4)		0.62	%(4)		0.62	%(4)		0.62	%(4)		0.62	%(4)(5)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.62	%(4)(8)		0.62	%(4)		0.62	%(4)		0.62	%(4)		0.62	%(4)		N/A
Ratio of Net Investment Income		5.72	%(4)(8)		6.20	%(4)		6.55	%(4)		6.52	%(4)		6.93	%(4)		7.05	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		30	%(7)		69	%		42	%		39	%		73	%		74	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.62% for Class IS shares. Prior to January 4, 2016, the maximum ratio was 0.72% for Class IS shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

High Yield Portfolio

	Class IR
	Six Months Ended March 31, 2021			Year Ended September 30,						Period from June 15, 2018(1) to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			September 30, 2018
Net Asset Value, Beginning of Period	$	9.19		$	9.78		$	9.96		$	9.93
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.26			0.52			0.56			0.16
Net Realized and Unrealized Gain (Loss)		0.45			(0.52	)		(0.12	)		0.03
Total from Investment Operations		0.71			0.00			0.44			0.19
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.59	)		(0.62	)		(0.16	)
Net Asset Value, End of Period	$	9.62		$	9.19		$	9.78		$	9.96
Total Return(3)		7.80	%(6)		0.18	%		4.71	%		1.92	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	11		$	10		$	10		$	10
Ratio of Expenses Before Expense Limitation		17.16	%(7)		20.43	%		20.17	%		18.62	%(7)
Ratio of Expenses After Expense Limitation		0.62	%(4)(7)		0.62	%(4)		0.62	%(4)		0.62	%(4)(7)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.62	%(4)(7)		0.62	%(4)		0.62	%(4)		0.62	%(4)(7)
Ratio of Net Investment Income		5.45	%(4)(7)		5.70	%(4)		5.80	%(4)		5.75	%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(5)(7)		0.00	%(5)		0.00	%(5)		0.00	%(5)(7)
Portfolio Turnover Rate		30	%(6)		69	%		42	%		39	%(6)

(1)  Commencement of Offering.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

High Yield Portfolio

	Class W
Selected Per Share Data and Ratios	Period from November 16, 2020(1) to March 31, 2021 (unaudited)
Net Asset Value, Beginning of Period	$	9.43
Income from Investment Operations:
Net Investment Income(2)		0.22
Net Realized and Unrealized Gain		0.18
Total from Investment Operations		0.40
Distributions from and/or in Excess of:
Net Investment Income		(0.21	)
Net Asset Value, End of Period	$	9.62
Total Return(3)		4.43	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses Before Expense Limitation		15.01	%(7)
Ratio of Expenses After Expense Limitation		0.00	%(4)(7)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.00	%(4)(7)
Ratio of Net Investment Income		6.29	%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(5)(7)
Portfolio Turnover Rate		30	%(6)

(1)  Commencement of Offering.

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

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

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

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

The accompanying financial statements relate to the High Yield Portfolio. The Fund seeks total return. The Fund offers seven classes of shares — Class I, Class A, Class L, Class C, Class IS, Class IR and Class W. On November 16, 2020, the Fund commenced offering Class W shares.

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option to purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

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

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

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (4) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

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

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

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

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

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

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Corporate Bonds	$	—	$	183,682		$	—	$	183,682
Variable Rate Senior Loan Interests		—		4,822	†		—		4,822	†
Total Fixed Income Securities		—		188,504	†		—		188,504	†
Common Stocks
Auto Components		—		—	†		—		—	†
Equity Real Estate Investment Trusts (REITs)		—		128			—		128
Machinery		—		—			23		23
Oil, Gas & Consumable Fuels		240		—			—		240
Semiconductors & Semiconductor Equipment		—		26			—		26
Transportation		—		117			—		117
Total Common Stocks		240		271	†		23		534	†
Warrant		—		50			—		50
Short-Term Investment
Investment Company		402		—			—		402
Total Assets	$	642	$	188,825	†	$	23	$	189,490	†

†  Includes one or more securities valued at zero.

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

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

	Common Stock (000)
Beginning Balance	$	60
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(37	)
Realized gains (losses)		—
Ending Balance	$	23
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2021	$	(37	)

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 March 31, 2021:

	Fair Value at March 31, 2021 (000)		Valuation Technique	Unobservable Input	Amount*			Impact to Valuation from an Increase in Input**
Common Stock		$23	Market Comparable Companies	Enterprise Value/ EBITDA		5.2x		Increase
				Discount for Lack of Marketability		30.0	%	Decrease

*  Amount is indicative of the weighted average.

**  Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.

3.  Senior Loans: Senior Loans are typically structured by a syndicate of lenders ("Lenders"), one or more of which administers the Senior Loan on behalf of the Lenders ("Agent"). Lenders may sell interests in Senior Loans to third parties ("Participations") or may assign all or a portion of their interest in a Senior Loan to third parties ("Assignments"). Senior Loans are exempt from

registration under the Securities Act of 1933. Presently, Senior Loans are not readily marketable and are often subject to restrictions on resale.

4.  Structured Investments: The Fund invested a portion of its assets in structured investments. A structured investment is a derivative security designed to offer a return linked to a particular underlying security, currency,

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

commodity or market. Structured investments may come in various forms including notes (such as exchange-traded notes), warrants and options to purchase securities. The Fund will typically use structured investments to gain exposure to a permitted underlying security, currency, commodity or market when direct access to a market is limited or inefficient from a tax or cost standpoint. There can be no assurance that structured investments will trade at the same price or have the same value as the underlying security, currency, commodity or market. Investments in structured investments involve risks including issuer risk, counterparty risk and market risk. Holders of structured investments bear risks of the underlying investment and are subject to issuer or counterparty risk because the Fund is relying on the creditworthiness of such issuer or counterparty and has no rights with respect to the underlying investment. Certain structured investments may be thinly traded or have a limited trading market and may have the effect of increasing the Fund's illiquidity to the extent that the Fund, at a particular time, may be unable to find qualified buyers for these securities.

5.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the 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.

6.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses

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

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

8.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. When the Fund buys an interest in a Senior Loan, it may receive a commitment fee which is paid to lenders on an ongoing basis based upon the undrawn portion committed by the lenders of the underlying Senior Loan. The Fund accrues the commitment fee over the expected term of the loan. When the Fund sells an interest in a Senior Loan, it may be required to pay fees or commissions to the purchaser of the interest. Fees received in connection with loan amendments are accrued as earned. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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

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

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

quarterly, at an annual rate of 0.60% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.65% for Class I shares, 1.00% for Class A shares, 1.25% for Class L shares, 1.75% for Class C shares, 0.62% for Class IS shares, 0.62% for Class IR shares and 0.00% for Class W shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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 March 31, 2021, approximately $229,000 of advisory fees were waived and approximately $75,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

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

annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares.

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

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

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

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

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $55,531,000 and $55,298,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by less

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	1,083	$	22,132	$	22,813	$	—	@

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	402

@  Value is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

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

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

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are

earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From: Ordinary Income (000)		2019 Distributions Paid From: Ordinary Income (000)
$	11,970	$	12,254

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

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

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2020.

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	1,067	$	—

At September 30, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $2,758,000 and $12,246,000, respectively, that do not have an expiration date.

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 62.1%.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

L. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continua-

tion of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

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

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

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

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

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

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

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice   April 2021

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

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

33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

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

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

34

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

Definitions

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

Other Important Information

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

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

35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

36

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

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

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTHYSAN
3565666 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Intermediate Municipal Income Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	8
Statement of Operations	9
Statements of Changes in Net Assets	10
Financial Highlights	11
Notes to Financial Statements	15
Liquidity Risk Management Program	20
U.S. Customer Privacy Notice	21
Trustee and Officer Information	24

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Intermediate Municipal Income Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Intermediate Municipal Income Portfolio Class I	$	1,000.00	$	1,012.20	$	1,022.89	$	2.06	$	2.07		0.41	%
Intermediate Municipal Income Portfolio Class A		1,000.00		1,009.60		1,020.94		4.01		4.03		0.80
Intermediate Municipal Income Portfolio Class C		1,000.00		1,006.10		1,017.20		7.75		7.80		1.55
Intermediate Municipal Income Portfolio Class IS		1,000.00		1,012.30		1,022.94		2.01		2.02		0.40

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Intermediate Municipal Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (100.0%)
Municipal Bonds (99.0%)
Alabama (2.4%)
Alabama Public School and College Authority, Series A
5.00%, 11/1/31	$	250	$	337
Black Belt Energy Gas District,
4.00%, 6/1/51 (a)(b)		215		262
				599
Arizona (3.0%)
City of Phoenix Civic Improvement Corp., Series B
5.00%, 7/1/26		190		231
Salt Verde Financial Corp., Senior Gas Revenue Bonds 2007-1
5.00%, 12/1/37		200		277
The Industrial Development Authority of The City of Phoenix, Series 2013 (AMT)
0.18%, 12/1/35 (a)		250		252
				760
California (9.0%)
Bay Area Toll Authority,
0.50%, 4/1/56 (a)		100		100
California County Tobacco Securitization Agency, Series A
4.00%, 6/1/23		175		189
California Health Facilities Financing Authority, Series C
3.00%, 3/1/41 (a)		200		212
5.00%, 10/1/39 (a)		250		299
California Infrastructure & Economic Development Bank,
0.75%, 12/1/50 (a)		125		126
1.20%, 12/1/50 (a)		250		247
City of Los Angeles Department of Airports, Series A
5.00%, 5/15/34		100		130
Los Angeles Department of Airports, California Los Angeles International Airport Subordinate Revenue Bonds, 2018 Series A (AMT)
5.00%, 5/15/28		250		315
Los Angeles Unified School District, Series C
5.00%, 7/1/29		250		330
State of California, Various Purpose General Obligation Refunding Bonds
5.00%, 11/1/30		250		336
				2,284
Colorado (4.3%)
City & County of Denver CO, Airport System Revenue, Series A (AMT)
5.00%, 12/1/26		135		165

	Face Amount (000)		Value (000)
Colorado Health Facilities Authority,
5.00%, 8/1/49 (a)	$	300	$	347
Series A
5.00%, 1/1/27		105		130
Series E
5.00%, 11/15/24		275		314
Regional Transportation District, Series A
5.00%, 7/15/32		100		127
				1,083
Connecticut (1.6%)
Connecticut State, General Obligation Bonds 2019 Series A
5.00%, 4/15/31		200		255
State of Connecticut Special Tax Revenue, Series B
5.00%, 10/1/27		125		158
				413
Delaware (2.0%)
Delaware State Economic Development Authority,
1.05%, 1/1/31 (a)		250		254
1.25%, 10/1/45 (a)		250		249
				503
District of Columbia (1.1%)
District of Columbia, Series 2015
5.00%, 7/15/24		250		287
Florida (5.9%)
Central Florida Expressway Authority, Series B
4.00%, 7/1/30		160		185
County of Miami-Dade, Aviation Revenue Refunding Bonds Series 2016A
5.00%, 10/1/24		225		259
Series C
5.00%, 4/1/30		250		327
JEA Electric System Revenue, Series B
5.00%, 10/1/27		210		264
Miami-Dade County Industrial Development Authority, Series 2011 (AMT)
0.55%, 11/1/41 (a)		250		250
Orlando Utilities Commission, Series B
1.25%, 10/1/46 (a)		215		219
				1,504
Georgia (3.7%)
Main Street Natural Gas, Inc., Series A
4.00%, 4/1/48 (a)		250		271
Series B
4.00%, 8/1/49 (a)		250		280

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Intermediate Municipal Income Portfolio

	Face Amount (000)		Value (000)
Georgia (cont'd)
Municipal Electric Authority of Georgia,
5.00%, 1/1/26 - 11/1/29	$	300	$	385
				936
Illinois (4.1%)
Chicago Board of Education, Series A
5.00%, 12/1/29 - 12/1/34		375		460
County of Cook, Series A
5.00%, 11/15/33		75		97
Illinois Finance Authority, Series A
5.00%, 7/15/30		140		176
State of Illinois, Series B
5.00%, 10/1/30		250		311
				1,044
Kansas (1.0%)
State of Kansas Department of Transportation, Series C-3
1 Month USD LIBOR + 0.40%, 0.48%, 9/1/23 (a)		250		251
Kentucky (2.2%)
County of Trimble, Series A (AMT)
1.30%, 9/1/44 (a)		250		250
Kentucky State Property & Building Commission,
5.00%, 5/1/30		250		308
				558
Louisiana (2.7%)
East Baton Rouge Sewerage Commission, Series A
1.30%, 2/1/41 (a)		125		127
Louisiana Public Facilities Authority, Series A
5.00%, 5/15/50 (a)		250		292
State of Louisiana Gasoline & Fuels Tax Revenue, Series D
0.60%, 5/1/43 (a)		250		251
				670
Maine (0.3%)
Maine Turnpike Authority, Series 2020
5.00%, 7/1/31		50		66
Maryland (0.5%)
Maryland State Transportation Authority, Series A
5.00%, 7/1/31 (b)		100		135
Massachusetts (1.0%)
Massachusetts Development Finance Agency, Series O
5.00%, 12/1/21		255		263

	Face Amount (000)		Value (000)
Michigan (2.5%)
Lansing Board of Water & Light, Series B
2.00%, 7/1/51 (a)	$	300	$	318
Michigan Finance Authority, Series A
5.00%, 6/1/33		250		324
				642
Minnesota (1.1%)
City of Rochester, Series C
4.50%, 11/15/38 (a)		270		277
Missouri (1.8%)
Health & Educational Facilities Authority of the State of Missouri, Series C
5.00%, 5/1/52 (a)(b)		350		445
Nebraska (1.0%)
Nebraska Public Power District, Series A
0.60%, 1/1/51 (a)		250		251
Nevada (3.4%)
Clark County School District, Nevada General Obligation Building and Refunding Bonds Series 2017A
5.00%, 6/15/25		300		354
County of Clark Department of Aviation, Series D
5.00%, 7/1/23		150		166
Series B
5.00%, 7/1/28		260		328
				848
New Jersey (3.4%)
New Jersey Economic Development Authority, Series D
5.00%, 6/15/30		205		246
Series B (AMT)
1.20%, 11/1/34 (a)		250		254
New Jersey Transportation Trust Fund Authority, Series A
5.50%, 12/15/21		125		130
New Jersey Turnpike Authority, Series B
5.00%, 1/1/31		145		180
State of New Jersey, Series A
4.00%, 6/1/31		50		61
				871
New York (16.1%)
City of New York,
5.00%, 4/1/34		100		131
General Obligation Bonds Fiscal 2018 Series C 5.00%, 8/1/29		250		314

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Intermediate Municipal Income Portfolio

	Face Amount (000)		Value (000)
New York (cont'd)
Hudson Yards Infrastructure Corp., Second Indenture Revenue Bonds Fiscal 2017 Series A
5.00%, 2/15/31	$	250	$	304
Series A
5.00%, 2/15/22		125		130
Long Island Power Authority, Series A
5.00%, 9/1/31		125		158
Metropolitan Transportation Authority, Series A
4.00%, 2/1/22		295		303
Series C
5.00%, 11/15/22		160		172
New York City Transitional Finance Authority Future Tax Secured Revenue,
Series C
4.00%, 2/1/27		250		296
5.00%, 11/1/32 (b)		250		330
New York City Water & Sewer System,
5.00%, 6/15/32		300		405
New York State Dormitory Authority,
5.00%, 7/1/26		265		320
Series A
5.00%, 7/1/25		110		129
Series B
5.00%, 2/15/26		205		248
New York Transportation Development Corp., Series A (AMT)
5.00%, 12/1/23 - 12/1/25		300		336
Schenectady County Capital Resource Corp., Series 2017
5.00%, 1/1/22		145		150
Triborough Bridge & Tunnel Authority, SOFR 0.39%, 1/1/32 (a)		350		351
				4,077
North Carolina (2.9%)
North Carolina Medical Care Commission, Series A
5.00%, 6/1/28		155		198
North Carolina Municipal Power Agency No 1, Series A
5.00%, 1/1/27		200		246
North Carolina Turnpike Authority, Series 2020
5.00%, 2/1/24		250		282
				726

	Face Amount (000)		Value (000)
Ohio (2.6%)
Buckeye Tobacco Settlement Financing Authority, Series A-2
5.00%, 6/1/35	$	125	$	158
County of Franklin, Series 2013
0.10%, 12/1/46 (a)		250		250
State of Ohio, Series A
5.00%, 10/1/22		235		252
				660
Oklahoma (0.5%)
Grand River Dam Authority, Series A
5.00%, 6/1/27		100		123
Pennsylvania (3.0%)
Commonwealth Financing Authority,
Series 2018
5.00%, 6/1/23 - 6/1/27		205		240
Pennsylvania Turnpike Commission, Series A
5.00%, 12/1/29		150		193
Philadelphia Gas Works Co., Series A (AGM)
5.00%, 8/1/33		250		321
				754
Puerto Rico (1.1%)
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue,
4.33%, 7/1/40		250		268
South Carolina (1.0%)
South Carolina Transportation Infrastructure Bank, Revenue Refunding Bonds, Series 2003B
1 Month USD LIBOR + 0.45%, 0.53%, 10/1/31 (a)		250		251
South Dakota (0.4%)
South Dakota Health & Educational Facilities Authority, Series A
5.00%, 9/1/27		80		101
Tennessee (1.0%)
Tennessee Energy Acquisition Corp., Series A
5.25%, 9/1/23		125		139
Series C
5.00%, 2/1/22		100		104
				243
Texas (9.7%)
Alamo Heights Independent School District, Series B
2.00%, 2/1/43 (a)		250		258
Central Texas Regional Mobility Authority, Series C
5.00%, 1/1/27 (b)		300		354

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Intermediate Municipal Income Portfolio

	Face Amount (000)		Value (000)
Texas (cont'd)
City of San Antonio TX Electric & Gas Systems Revenue, Series D
1.13%, 12/1/45 (a)	$	125	$	128
Harris County Cultural Education Facilities Finance Corp., Hospital Revenue Bonds Series 2014A
5.00%, 12/1/25		160		185
Series A
0.90%, 5/15/50 (a)		125		125
Love Field Airport Modernization Corp., General Airport Revenue Bonds, Series 2017 (AMT)
5.00%, 11/1/31		250		302
Lower Colorado River Authority,
5.00%, 5/15/33		50		65
North Texas Tollway Authority, Series B
5.00%, 1/1/23		125		135
Pasadena Independent School District, Variable Rate Unlimited Tax School Building Bonds, Series 2015B
1.50%, 2/15/44 (a)		260		270
Southwest Higher Education Authority Inc,
5.00%, 10/1/23		200		223
Texas Municipal Gas Acquisition & Supply Corp. III,
5.00%, 12/15/32		125		166
Texas Municipal Gas Acquisition and Supply Corp. II, Series C
3 Month USD LIBOR + 0.69%, 0.81%, 9/15/27 (a)		250		253
				2,464
Virginia (0.8%)
Hampton Roads Transportation Accountability Commission, Series A
5.00%, 7/1/31		150		202
West Virginia (1.3%)
West Virginia Commissioner of Highways, Series A
5.00%, 9/1/30		260		323
Wisconsin (0.6%)
Wisconsin Health & Educational Facilities Authority, Series 2018
5.00%, 4/1/27		125		157
Total Fixed Income Securities (Cost $24,831)				25,039
	Shares
Short-Term Investments (4.0%)
Investment Company (2.4%)
Morgan Stanley Institutional Liquidity Funds — Tax-Exempt Portfolio — Institutional Class (See Note G) (Cost $604)		603,936		604

	Face Amount (000)		Value (000)
Municipal Bonds (1.6%)
New York (1.2%)
County of Suffolk, Series I
2.00%, 7/22/21	$	50	$	50
Riverhead Central School District, Series B
1.50%, 6/25/21		250		251
				301
North Carolina (0.4%)
University of North Carolina at Charlotte (The), 5.00%, 10/1/21		100		102
				403
Total Short-Term Investments (Cost $1,007)				1,007
Total Investments (103.0%) (Cost $25,838) (c)(d)				26,046
Liabilities in Excess of Other Assets (–3.0%)				(749	)
Net Assets (100.0%)			$	25,297

(a)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(b)  When-issued security.

(c)  Securities are available for collateral in connection with purchase of when-issued security.

(d)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $262,000 and the aggregate gross unrealized depreciation is approximately $54,000, resulting in net unrealized appreciation of approximately $208,000.

AGM  Assured Guaranty Municipal Corporation.

AMT  Alternative Minimum Tax.

LIBOR  London Interbank Offered Rate.

SOFR  Secured Overnight Financing Rate.

USD  United States Dollar.

Portfolio Composition

Classification	Percentage of Total Investments
Fixed Income Securities		96.1	%
Other*		3.9
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Intermediate Municipal Income Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $25,234)	$	25,442
Investment in Security of Affiliated Issuer, at Value (Cost $604)		604
Total Investments in Securities, at Value (Cost $25,838)		26,046
Receivable for Investments Sold		594
Interest Receivable		235
Prepaid Offering Costs		66
Due from Adviser		49
Receivable from Affiliate		—	@
Other Assets		14
Total Assets		27,004
Liabilities:
Payable for Investments Purchased		1,519
Payable for Offering Costs		126
Payable for Professional Fees		51
Payable for Custodian Fees		2
Payable for Administration Fees		2
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		7
Total Liabilities		1,707
Net Assets	$	25,297
Net Assets Consist of:
Paid-in-Capital	$	25,081
Total Distributable Earnings		216
Net Assets	$	25,297
CLASS I:
Net Assets	$	25,267
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,505,034
Net Asset Value, Offering and Redemption Price Per Share	$	10.09
CLASS A:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,002
Net Asset Value, Redemption Price Per Share	$	10.08
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.34
Maximum Offering Price Per Share	$	10.42
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	10.06
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,003
Net Asset Value, Offering and Redemption Price Per Share	$	10.09

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Intermediate Municipal Income Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	130
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		130
Expenses:
Offering Costs		66
Professional Fees		55
Advisory Fees (Note B)		44
Administration Fees (Note C)		10
Shareholder Reporting Fees		7
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		2
Pricing Fees		2
Registration Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		—	@
Other Expenses		3
Total Expenses		194
Expenses Reimbursed by Adviser (Note B)		(96	)
Waiver of Advisory Fees (Note B)		(44	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		51
Net Investment Income		79
Realized Gain:
Investments Sold		11
Change in Unrealized Appreciation (Depreciation):
Investments		207
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		218
Net Increase in Net Assets Resulting from Operations	$	297

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Intermediate Municipal Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Period Ended September 30, 2020^ (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	79		$	(1	)
Net Realized Gain		11			—
Net Change in Unrealized Appreciation (Depreciation)		207			1
Net Increase (Decrease) in Net Assets Resulting from Operations		297			(—	@)
Dividends and Distributions to Shareholders:
Class I		(81	)		—
Class A		(—	@)		—
Class C		(—	@)		—
Class IS		(—	@)		—
Total Dividends and Distributions to Shareholders		(81	)		—
Capital Share Transactions:(1)
Class I:
Subscribed		—			24,970
Distributions Reinvested		81			—
Class A:
Subscribed		—			10
Distributions Reinvested		—	@		—
Class C:
Subscribed		—			10
Distributions Reinvested		—	@		—
Class IS:
Subscribed		—			10
Distributions Reinvested		—	@		—
Net Increase in Net Assets Resulting from Capital Share Transactions		81			25,000
Total Increase in Net Assets		297			25,000
Net Assets:
Beginning of Period		25,000			—
End of Period	$	25,297		$	25,000
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		—			2,497
Shares Issued on Distributions Reinvested		8			—
Net Increase in Class I Shares Outstanding		8			2,497
Class A:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class A Shares Outstanding		—	@@		1
Class C:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class C Shares Outstanding		—	@@		1
Class IS:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class IS Shares Outstanding		—	@@		1

^  Commencement of Operations.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Intermediate Municipal Income Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		0.03			(0.00	)(3)
Net Realized and Unrealized Gain		0.09			0.00	(3)
Total from Investment Operations		0.12			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		—
Net Asset Value, End of Period	$	10.09		$	10.00
Total Return(4)		1.22	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	25,267		$	24,970
Ratio of Expenses Before Expense Limitation		1.52	%(6)		2.03	%(6)
Ratio of Expenses After Expense Limitation		0.41	%(6)		0.41	%(6)
Ratio of Net Investment Income (Loss)		0.63	%(6)		(0.41	)%(6)
Portfolio Turnover Rate		42	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Intermediate Municipal Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		0.01			(0.00	)(3)
Net Realized and Unrealized Gain		0.09			0.00	(3)
Total from Investment Operations		0.10			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		—
Net Asset Value, End of Period	$	10.08		$	10.00
Total Return(4)		0.96	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		19.26	%(6)		16.15	%(6)
Ratio of Expenses After Expense Limitation		0.80	%(6)		0.80	%(6)
Ratio of Net Investment Income (Loss)		0.24	%(6)		(0.80	)%(6)
Portfolio Turnover Rate		42	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Intermediate Municipal Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss(2)		(0.00	)(3)		(0.00	)(3)
Net Realized and Unrealized Gain		0.06			0.00	(3)
Total from Investment Operations		0.06			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.00	)(3)		—
Net Asset Value, End of Period	$	10.06		$	10.00
Total Return(4)		0.61	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		20.04	%(6)		16.88	%(6)
Ratio of Expenses After Expense Limitation		1.55	%(6)		1.55	%(6)
Ratio of Net Investment Loss		(0.50	)%(6)		(1.55	)%(6)
Portfolio Turnover Rate		42	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Intermediate Municipal Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		0.03			(0.00	)(3)
Net Realized and Unrealized Gain		0.09			0.00	(3)
Total from Investment Operations		0.12			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		—
Net Asset Value, End of Period	$	10.09		$	10.00
Total Return(4)		1.23	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		18.99	%(6)		15.89	%(6)
Ratio of Expenses After Expense Limitation		0.40	%(6)		0.40	%(6)
Ratio of Net Investment Income (Loss)		0.63	%(6)		(0.40	)%(6)
Portfolio Turnover Rate		42	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

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

The accompanying financial statements relate to the Intermediate Municipal Income Portfolio. The Fund seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital. The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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

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

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an

outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; and (2) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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

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

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

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

information concerning other securities in similar circumstances.

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Municipal Bonds	$	—	$	25,039	$	—	$	25,039
Short-Term Investments
Investment Company		604		—		—		604
Municipal Bonds		—		403		—		403
Total Short-Term Investments		604		403		—		1,007
Total Assets	$	604	$	25,442	$	—	$	26,046

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

3.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the 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 in-

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

crease the impact that gains (losses) may have on the Fund.

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

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

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

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.35% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.45% for Class I shares, 0.80% for Class A shares, 1.55% for Class C shares and 0.40% for Class IS shares. The

fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. The Adviser may make additional voluntary fee waivers and/or expense reimbursements and may discontinue these voluntary fee waivers and/or expense reimbursements at any time in the future. For the six months ended March 31, 2021, approximately $44,000 of advisory fees were waived and approximately $99,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

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

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

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $28,287,000 and $8,662,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Tax-Exempt Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. This arrangement had no effect for the six months ended March 31, 2021.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	—	$	30,512	$	29,908	$	—	@

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	604

@ Amount is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an af-

filiate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

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

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

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

tax purposes. There were no distributions paid during fiscal year 2020.

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

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

Permanent differences, due to a net operating loss, resulted in the following reclassifications among the components of net assets at September 30, 2020:

Total Accumulated Loss (000)			Paid-in- Capital (000)
$	—	@	$	(—	@)

@ Amount is less than $500.

At September 30, 2020, the Fund had no distributable earnings on a tax basis.

I. Other: At March 31, 2021, the Fund did not have record owners of 10% or greater.

J. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

K. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates

for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

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

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

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

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

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

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

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice   April 2021

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

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

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

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

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

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

Definitions

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

Other Important Information

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

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

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

24

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

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

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTIMISAN
3565690 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Municipal Income Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	8
Statement of Operations	9
Statements of Changes in Net Assets	10
Financial Highlights	11
Notes to Financial Statements	15
Liquidity Risk Management Program	20
U.S. Customer Privacy Notice	21
Trustee and Officer Information	24

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

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

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Municipal Income Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Municipal Income Portfolio Class I	$	1,000.00	$	1,017.00	$	1,022.39	$	2.56	$	2.57		0.51	%
Municipal Income Portfolio Class A		1,000.00		1,015.30		1,020.44		4.52		4.53		0.90
Municipal Income Portfolio Class C		1,000.00		1,011.90		1,016.70		8.28		8.30		1.65
Municipal Income Portfolio Class IS		1,000.00		1,017.00		1,022.44		2.51		2.52		0.50

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Municipal Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (96.8%)
Municipal Bonds (97.8%)
Alabama (1.0%)
Black Belt Energy Gas District, 4.00%, 6/1/51 (a)(b)	$	215	$	263
Arizona (2.7%)
City of Phoenix Civic Improvement Corp.,
4.00%, 7/1/44		130		148
Salt Verde Financial Corp., Senior Gas Revenue Bonds Series 2007-1
5.00%, 12/1/37		200		277
The Industrial Development Authority of The City of Phoenix, Series 2013 (AMT)
0.18%, 12/1/35 (a)		250		252
				677
California (7.6%)
Bay Area Toll Authority,
0.50%, 4/1/56 (a)		100		100
California County Tobacco Securitization Agency, Series A
4.00%, 6/1/23		175		189
California Health Facilities Financing Authority, Series C
5.00%, 10/1/39 (a)		250		299
California Infrastructure & Economic Development Bank,
0.75%, 12/1/50 (a)		125		126
1.20%, 12/1/50 (a)		250		247
Los Angeles Unified School District, Series C
5.00%, 7/1/29		250		330
San Francisco City & County Airport Commission San Francisco International Airport, Series G (AMT)
5.00%, 5/1/27		250		313
State of California Various Purpose General Obligation Refunding Bonds
5.00%, 11/1/30		250		335
				1,939
Colorado (1.7%)
City & County of Denver Colorado Airport System Revenue, Series A (AMT)
5.00%, 12/1/26		135		165
Colorado Health Facilities Authority, Series A-1
4.00%, 8/1/44		250		280
				445
Connecticut (3.5%)
Connecticut State, General Obligation Bonds 2019 Series A
5.00%, 4/15/31		200		255

	Face Amount (000)		Value (000)
State of Connecticut Special Tax Revenue, Series A
5.00%, 5/1/38	$	250	$	316
University of Connecticut, Series A
5.00%, 11/15/43		270		331
				902
Delaware (2.0%)
Delaware State Economic Development Authority, Series A
1.05%, 1/1/31 (a)		250		254
1.25%, 10/1/45 (a)		250		249
				503
Florida (4.2%)
County of Miami-Dade, Series C
5.00%, 4/1/30		250		327
JEA Electric System Revenue, Series B
5.00%, 10/1/27		210		264
Miami-Dade County Industrial Development Authority, Series 2011 (AMT)
0.55%, 11/1/41 (a)		250		250
Orlando Utilities Commission, Series B
1.25%, 10/1/46 (a)		220		224
				1,065
Georgia (4.3%)
Main Street Natural Gas, Inc., Series A
4.00%, 5/15/39		175		196
4.00%, 4/1/48 (a)		250		271
Series B
4.00%, 8/1/49 (a)		250		280
Municipal Electric Authority of Georgia, Series A
5.00%, 1/1/50 - 1/1/56		300		357
				1,104
Illinois (3.4%)
Chicago Board of Education, Series A
5.00%, 12/1/29 - 12/1/34		375		461
County of Cook, Series A
5.00%, 11/15/33		75		97
State of Illinois, Series B
5.00%, 10/1/30		250		311
				869
Kansas (1.0%)
State of Kansas Department of Transportation, Series C-3
1 Month USD LIBOR + 0.40%, 0.51%, 9/1/23 (a)		250		251

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Municipal Income Portfolio

	Face Amount (000)		Value (000)
Kentucky (2.2%)
County of Trimble, Series A (AMT)
1.30%, 9/1/44 (a)	$	250	$	250
Kentucky State Property & Building Commission, Project No. 119
5.00%, 5/1/30		250		308
				558
Louisiana (1.1%)
Louisiana Public Facilities Authority, Series A
4.00%, 5/15/49		250		283
Maine (1.2%)
Maine Turnpike Authority, Series 2020
5.00%, 7/1/50		250		308
Maryland (0.5%)
Maryland State Transportation Authority, Series A
5.00%, 7/1/51 (b)		100		128
Michigan (2.5%)
Lansing Board of Water & Light, Series B
2.00%, 7/1/51 (a)		300		318
Michigan Finance Authority, Series A
5.00%, 6/1/33		250		324
				642
Missouri (2.3%)
Health & Educational Facilities Authority of the State of Missouri, Series A
5.00%, 11/15/32		110		139
Series C
5.00%, 5/1/52 (a)(b)		350		445
				584
Nebraska (1.0%)
Nebraska Public Power District, Series A
0.60%, 1/1/51 (a)		250		251
Nevada (2.2%)
Clark County School District, Series C
5.00%, 6/15/24		280		321
County of Clark Department of Aviation, Series B
5.00%, 7/1/33		200		251
				572
New Jersey (3.4%)
New Jersey Economic Development Authority, Series D
5.00%, 6/15/30		200		240
Series B (AMT)
1.20%, 11/1/34 (a)		250		254

	Face Amount (000)		Value (000)
New Jersey Transportation Trust Fund Authority, Series A
5.50%, 12/15/21	$	125	$	130
South Jersey Transportation Authority, Series A
5.00%, 11/1/45		150		186
State of New Jersey, Series A
4.00%, 6/1/31		50		61
				871
New York (19.5%)
City of New York,
5.00%, 3/1/50		350		436
Series E
5.00%, 8/1/22		175		186
County of Nassau, Series A
5.00%, 1/1/23		135		146
Hudson Yards Infrastructure Corp., Series A
5.00%, 2/15/45		250		297
Long Island Power Authority, Series A
5.00%, 9/1/47		250		301
Metropolitan Transportation Authority, Series A
4.00%, 2/1/22		295		303
Series C
5.00%, 11/15/22		165		177
New York City Transitional Finance Authority Future Tax Secured Revenue, Series C
4.00%, 11/1/37 (b)		250		296
New York City Water & Sewer System, Series AA-1
4.00%, 6/15/50		240		280
New York State Dormitory Authority,
4.00%, 7/1/38		175		203
5.00%, 7/1/26		265		320
Series A
5.00%, 3/15/47		250		299
New York State Thruway Authority, Series B
4.00%, 1/1/38		250		292
New York State Urban Development Corp., Series A
4.00%, 3/15/45		250		288
New York Transportation Development Corp.,
5.00%, 12/1/38		100		123
Series A (AMT)
5.00%, 12/1/23 - 12/1/25		300		337
Port Authority of New York & New Jersey, Consolidated Bonds, Series 212
5.00%, 9/1/35		250		316

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Municipal Income Portfolio

	Face Amount (000)		Value (000)
Triborough Bridge & Tunnel Authority,
SOFR, 0.39%, 1/1/32 (a)	$	350	$	351
				4,951
North Carolina (1.9%)
North Carolina Medical Care Commission, Series A
5.00%, 6/1/28		155		198
North Carolina Turnpike Authority, Series 2020
5.00%, 2/1/24		250		282
				480
Ohio (3.1%)
Buckeye Tobacco Settlement Financing Authority, Series A-2
5.00%, 6/1/55		250		282
County of Franklin, Series 2013
0.10%, 12/1/46 (a)		250		250
State of Ohio, Series A
5.00%, 10/1/22 - 1/1/28		235		252
				784
Oklahoma (1.1%)
Grand River Dam Authority, Series A
5.00%, 6/1/24		235		269
Oregon (0.6%)
Metro,
4.00%, 6/15/21		140		141
Pennsylvania (6.7%)
Bucks County Industrial Development Authority,
4.00%, 7/1/51		300		319
City of Philadelphia PA Water & Wastewater Revenue, Series A
5.00%, 10/1/43		135		166
Commonwealth Financing Authority, Series 2018
5.00%, 6/1/21 - 6/1/26		275		298
Pennsylvania Economic Development Financing Authority, Series A
4.00%, 11/15/22		180		191
Pennsylvania Higher Educational Facilities Authority, Series 2015
5.00%, 8/15/22		100		106
Pennsylvania Turnpike Commission, Series A
5.00%, 12/1/49		250		306
Philadelphia Gas Works Co., Series A (AGM)
5.00%, 8/1/50		250		310
				1,696

	Face Amount (000)		Value (000)
Puerto Rico (1.1%)
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue,
4.33%, 7/1/40	$	250	$	268
South Carolina (1.0%)
South Carolina Transportation Infrastructure Bank, Revenue Refunding Bonds, Series 2003 B
1 Month USD LIBOR + 0.45%, 0.55%, 10/1/31 (a)		250		251
South Dakota (0.4%)
South Dakota Health & Educational Facilities Authority, Series A
5.00%, 9/1/27		80		101
Tennessee (0.9%)
Tennessee Energy Acquisition Corp., Series 2018
4.00%, 11/1/49 (a)		210		239
Texas (9.9%)
Alamo Heights Independent School District, Series B
2.00%, 2/1/43 (a)		250		258
Central Texas Regional Mobility Authority, Series C
5.00%, 1/1/27 (b)		300		354
City of Austin TX Electric Utility Revenue, Series A
5.00%, 11/15/50		250		320
City of San Antonio TX Electric & Gas Systems Revenue, Series D
1.13%, 12/1/45 (a)		125		128
Harris County Cultural Education Facilities Finance Corp., Series A
0.90%, 5/15/50 (a)		125		125
Love Field Airport Modernization Corp., General Airport Revenue Bonds, Series 2017 A (AMT)
5.00%, 11/1/31		250		302
Lower Colorado River Authority, Series A
5.00%, 5/15/33		50		65
North Texas Tollway Authority, Series A
4.00%, 1/1/35		250		292
Pasadena Independent School District Variable Rate Unlimited Tax School Building Bonds, Series 2015B
1.50%, 2/15/44 (a)		240		249
Texas Municipal Gas Acquisition & Supply Corp. III,
5.00%, 12/15/32		125		166
Texas Municipal Gas Acquisition and Supply Corp. II, Series C
3 Month USD LIBOR + 0.69%, 0.81%, 9/15/27 (a)		250		253
				2,512

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Municipal Income Portfolio

	Face Amount (000)		Value (000)
Virginia (1.3%)
Hampton Roads Transportation Accountability Commission, Series A
5.00%, 7/1/45	$	250	$	318
Wisconsin (1.5%)
Wisconsin Health & Educational Facilities Authority, Series 2018
4.00%, 11/15/23		215		234
5.00%, 4/4/32		125		159
				393
Total Fixed Income Securities (Cost $24,318)				24,618
Short-Term Investments (4.9%)
Investment Company (3.7%)
Morgan Stanley Institutional Liquidity Funds — Tax-Exempt Portfolio — Institutional Class, 0.01%, 12/31/30 (See Note G)		935		935
Municipal Bond (1.2%)
New York (1.2%)
County of Suffolk, Series I
2.00%, 7/22/21		50		50
Riverhead Central School District, Series B
1.50%, 6/25/21		250		251
				301
Total Short-Term Investments (Cost $1,236)				1,236
Total Investments (101.7%) (Cost $25,554) (c)(d)				25,854
Liabilities in Excess of Other Assets (–1.7%)				(426	)
Net Assets (100.0%)			$	25,428

(a)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(b)  When-issued security.

(c)  Securities are available for collateral in connection with purchase of when-issued security.

(d)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $357,000 and the aggregate gross unrealized depreciation is approximately $57,000, resulting in net unrealized appreciation of approximately $300,000.

AGM  Assured Guaranty Municipal Corporation.

AMT  Alternative Minimum Tax.

LIBOR  London Interbank Offered Rate.

SOFR  Secured Overnight Financing Rate.

USD  United States Dollar.

Portfolio Composition

Classification	Percentage of Total Investments
Fixed Income Securities		95.2	%
Other*		4.8
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Municipal Income Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $24,619)	$	24,919
Investment in Security of Affiliated Issuer, at Value (Cost $935)		935
Total Investments in Securities, at Value (Cost $25,554)		25,854
Receivable for Investments Sold		888
Interest Receivable		230
Prepaid Offering Costs		66
Due from Adviser		43
Receivable from Affiliate		—	@
Other Assets		14
Total Assets		27,095
Liabilities:
Payable for Investments Purchased		1,478
Payable for Offering Costs		126
Payable for Professional Fees		51
Payable for Custodian Fees		2
Payable for Administration Fees		2
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		8
Total Liabilities		1,667
Net Assets	$	25,428
Net Assets Consist of:
Paid-in-Capital	$	25,125
Total Distributable Earnings		303
Net Assets	$	25,428
CLASS I:
Net Assets	$	25,398
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,509,303
Net Asset Value, Offering and Redemption Price Per Share	$	10.12
CLASS A:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,003
Net Asset Value, Redemption Price Per Share	$	10.12
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.34
Maximum Offering Price Per Share	$	10.46
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,001
Net Asset Value, Offering and Redemption Price Per Share	$	10.10
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,005
Net Asset Value, Offering and Redemption Price Per Share	$	10.12

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Municipal Income Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	169
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		169
Expenses:
Offering Costs		66
Advisory Fees (Note B)		57
Professional Fees		55
Administration Fees (Note C)		10
Shareholder Reporting Fees		7
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		2
Pricing Fees		1
Registration Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		—	@
Other Expenses		4
Total Expenses		207
Expenses Reimbursed by Adviser (Note B)		(83	)
Waiver of Advisory Fees (Note B)		(57	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		64
Net Investment Income		105
Realized Gain:
Investments Sold		24
Change in Unrealized Appreciation (Depreciation):
Investments		305
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		329
Net Increase in Net Assets Resulting from Operations	$	434

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Municipal Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Period Ended September 30, 2020^ (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	105		$	(1	)
Net Realized Gain		24			—
Net Change in Unrealized Appreciation (Depreciation)		305			(5	)
Net Increase (Decrease) in Net Assets Resulting from Operations		434			(6	)
Dividends and Distributions to Shareholders:
Class I		(125	)		—
Class A		(—	@)		—
Class C		(—	@)		—
Class IS		(—	@)		—
Total Dividends and Distributions to Shareholders		(125	)		—
Capital Share Transactions:(1)
Class I:
Subscribed		—			24,970
Distributions Reinvested		125			—
Class A:
Subscribed		—			10
Distributions Reinvested		—	@		—
Class C:
Subscribed		—			10
Distributions Reinvested		—	@		—
Class IS:
Subscribed		—			10
Distributions Reinvested		—	@		—
Net Increase in Net Assets Resulting from Capital Share Transactions		125			25,000
Total Increase in Net Assets		434			24,994
Net Assets:
Beginning of Period		24,994			—
End of Period	$	25,428		$	24,994
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		—			2,497
Shares Issued on Distributions Reinvested		12			—
Net Increase in Class I Shares Outstanding		12			2,497
Class A:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class A Shares Outstanding		—	@@		1
Class C:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class C Shares Outstanding		—	@@		1
Class IS:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class IS Shares Outstanding		—	@@		1

^  Commencement of Operations.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Municipal Income Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		0.04			(0.00	)(3)
Net Realized and Unrealized Gain (Loss)		0.13			(0.00	)(3)
Total from Investment Operations		0.17			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		—
Net Asset Value, End of Period	$	10.12		$	10.00
Total Return(4)		1.70	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	25,398		$	24,964
Ratio of Expenses Before Expense Limitation		1.61	%(6)		2.13	%(6)
Ratio of Expenses After Expense Limitation		0.51	%(6)		0.51	%(6)
Ratio of Net Investment Income (Loss)		0.83	%(6)		(0.51	)%(6)
Portfolio Turnover Rate		50	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Municipal Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		0.02			(0.00	)(3)
Net Realized and Unrealized Gain (Loss)		0.13			(0.00	)(3)
Total from Investment Operations		0.15			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		—
Net Asset Value, End of Period	$	10.12		$	10.00
Total Return(4)		1.53	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		19.29	%(6)		16.22	%(6)
Ratio of Expenses After Expense Limitation		0.90	%(6)		0.90	%(6)
Ratio of Net Investment Income (Loss)		0.43	%(6)		(0.90	)%(6)
Portfolio Turnover Rate		50	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Municipal Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss(2)		(0.02	)		(0.00	)(3)
Net Realized and Unrealized Gain (Loss)		0.13			(0.00	)(3)
Total from Investment Operations		0.11			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		—
Net Asset Value, End of Period	$	10.10		$	10.00
Total Return(4)		1.19	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		20.07	%(6)		16.95	%(6)
Ratio of Expenses After Expense Limitation		1.65	%(6)		1.65	%(6)
Ratio of Net Investment Loss		(0.33	)%(6)		(1.65	)%(6)
Portfolio Turnover Rate		50	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Municipal Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period Ended September 30, 2020(1)
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		0.04			(0.00	)(3)
Net Realized and Unrealized Gain (Loss)		0.13			(0.00	)(3)
Total from Investment Operations		0.17			(0.00	)(3)
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		—
Net Asset Value, End of Period	$	10.12		$	10.00
Total Return(4)		1.70	%(5)		0.00	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		19.02	%(6)		15.96	%(6)
Ratio of Expenses After Expense Limitation		0.50	%(6)		0.50	%(6)
Ratio of Net Investment Income (Loss)		0.84	%(6)		(0.50	)%(6)
Portfolio Turnover Rate		50	%(5)		0	%(5)

(1)  Commencement of Operations.

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

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

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

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

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

The accompanying financial statements relate to the Municipal Income Portfolio. The Fund seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital. The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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

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

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an

outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; and (2) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides adminis-

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

tration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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

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

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

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

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Municipal Bonds	$	—	$	24,618	$	—	$	24,618
Short-Term Investments
Investment Company		935		—		—		935
Municipal Bonds		—		301		—		301
Total Short-Term Investments		935		301		—		1,236
Total Assets	$	935	$	24,919	$	—	$	25,854

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

3.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the 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.

4.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

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

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

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.45% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.55% for Class I shares, 0.90% for Class A shares, 1.65% for Class C shares and 0.50% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such

action is appropriate. The Adviser may make additional voluntary fee waivers and/or expense reimbursements and may discontinue these voluntary fee waivers and/or expense reimbursements at any time in the future. For the six months ended March 31, 2021, approximately $57,000 of advisory fees were waived and approximately $86,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

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

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

E. Dividend Disbursing and Transfer Agent: The Trust's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Trust pays DST a fee based on the

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

number of classes, accounts and transactions relating to the Funds of the Trust.

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

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $29,875,000 and $10,280,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Tax-Exempt Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. This arrangement had no effect for the six months ended March 31, 2021.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	—	$	32,546	$	31,611	$	—	@

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	935

@ Amount is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule.

For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

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

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

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. There were no distributions paid during fiscal year 2020.

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

Permanent differences, due to a net operating loss, resulted in the following reclassifications among the components of net assets at September 30, 2020:

Total Accumulated Loss (000)			Paid-in- Capital (000)
$	—	@	$	(—	@)

@ Amount is less than $500.

At September 30, 2020, the Fund had no distributable earnings on a tax basis.

I. Other: At March 31, 2021, the Fund did not have record owners of 10% or greater.

J. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

K. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates

for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Trustees (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice   April 2021

FACTS	WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?	All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

To limit our sharing	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?	We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?	Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

Definitions

Investment Management Affiliates	MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates	Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates	Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing	A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

Frank L. Bowman
Kathleen A. Dennis
Nancy C. Everett
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia Maleski
W. Allen Reed, Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Trustees

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable fund of Morgan Stanley Institutional Fund Trust, which describes in detail the fund's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Fund, please visit our website at www.morganstanley.com/im/shareholderreports or call toll free 1 (800) 548-7786.

24

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTMISAN
3565711 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Senior Loan Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	11
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Financial Statements	18
Liquidity Risk Management Program	24
U.S. Customer Privacy Notice	25
Trustee and Officer Information	28

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or statement of additional information ("SAI"), which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations and describes in detail each of the Fund's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access fund information including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Senior Loan Portfolio (the "Fund") performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Senior Loan Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Senior Loan Portfolio Class I	$	1,000.00	$	1,049.00	$	1,021.19	$	3.83	$	3.78		0.75	%
Senior Loan Portfolio Class A		1,000.00		1,046.90		1,019.20		5.87		5.79		1.15
Senior Loan Portfolio Class C		1,000.00		1,043.00		1,015.46		9.68		9.55		1.90
Senior Loan Portfolio Class IS		1,000.00		1,049.00		1,021.19		3.83		3.78		0.75

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Senior Loan Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (100.7%)
Corporate Bonds (15.0%)
Communications (3.4%)
Altice France SA 7.38%, 5/1/26 (a)	$	250	$	260
Avaya, Inc. 6.13%, 9/15/28 (a)		250		266
iHeartCommunications, Inc. 4.75%, 1/15/28 (a)		500		505
LCPR Senior Secured Financing DAC 6.75%, 10/15/27 (a)		250		267
MDC Partners, Inc. 7.50%, 5/1/24 (a)(b)		350		356
Univision Communications, Inc. 6.63%, 6/1/27 (a)		92		98
				1,752
Consumer, Cyclical (3.8%)
American Airlines Inc/AAdvantage Loyalty IP Ltd. 5.50%, 4/20/26 (a)		100		104
At Home Holding III, Inc. 8.75%, 9/1/25 (a)		500		547
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/28 (a)		250		272
Downstream Development Authority of the Quapaw Tribe of Oklahoma 10.50%, 2/15/23 (a)		175		182
Rite Aid Corp. 7.50%, 7/1/25 (a)		250		260
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 9/20/25 (a)		100		113
Station Casinos LLC 4.50%, 2/15/28 (a)		250		249
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp. 5.88%, 5/15/25 (a)		250		245
				1,972
Consumer, Non-Cyclical (1.5%)
Chobani LLC/Chobani Finance Corp., Inc. 4.63%, 11/15/28 (a)		200		205
Providence Service Corp. (The) 5.88%, 11/15/25 (a)		100		105
RP Escrow Issuer LLC 5.25%, 12/15/25 (a)		150		156
Sotheby's 7.38%, 10/15/27 (a)		300		325
				791
Diversified (0.1%)
Trident TPI Holdings, Inc. 6.63%, 11/1/25 (a)		45		46
Energy (0.4%)
Global Partners LP/GLP Finance Corp. 7.00%, 8/1/27		175		185
Finance (1.2%)
Fly Leasing Ltd. 5.25%, 10/15/24		200		204

	Face Amount (000)		Value (000)
Oxford Finance LLC/Oxford Finance Co-Issuer II, Inc. 6.38%, 12/15/22 (a)	$	150	$	153
Starwood Property Trust, Inc. 5.50%, 11/1/23 (a)		100		105
StoneX Group, Inc. 8.63%, 6/15/25 (a)		125		132
				594
Industrials (4.0%)
Bombardier, Inc. 6.13%, 1/15/23 (a)		200		208
Brundage-Bone Concrete Pumping Holdings, Inc. 6.00%, 2/1/26 (a)		150		157
Builders FirstSource, Inc. 6.75%, 6/1/27 (a)		89		96
Cleaver-Brooks, Inc. 7.88%, 3/1/23 (a)		450		443
Grinding Media, Inc./Moly-Cop AltaSteel Ltd. 7.38%, 12/15/23 (a)		225		230
Kratos Defense & Security Solutions, Inc. 6.50%, 11/30/25 (a)		100		105
Mauser Packaging Solutions Holding Co. 5.50%, 4/15/24 (a)		250		254
Spirit AeroSystems, Inc. 7.50%, 4/15/25 (a)		200		215
Triumph Group, Inc. 6.25%, 9/15/24 (a)		250		255
TTM Technologies, Inc. 4.00%, 3/1/29 (a)		100		99
				2,062
Technology (0.3%)
Crowdstrike Holdings, Inc. 3.00%, 2/15/29		150		147
Utilities (0.3%)
Calpine Corp. 5.25%, 6/1/26 (a)		168		173
				7,722
Variable Rate Senior Loan Interests (85.7%)
Basic Materials (2.2%)
Asplundh Tree Expert LLC, Term Loan B 1 Month USD LIBOR + 1.75%, 1.86%, 9/7/27 (c)		125		124
Chemours Company (The), Term Loan B2 3 Month USD LIBOR + 1.75%, 1.86%, 4/3/25 (c)		245		239
Cyanco Intermediate Corporation, 2018 Term Loan B 3 Month USD LIBOR + 3.50%, 3.61%, 3/16/25 (c)		493		492
Innophos, Inc., 2020 Term Loan B 1 Month USD LIBOR + 3.50%, 3.61%, 2/7/27 (c)		248		247
				1,102

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Senior Loan Portfolio

	Face Amount (000)		Value (000)
Communications (14.2%)
ABG Intermediate Holdings 2 LLC, 2021 Term Loan B 3 Month USD LIBOR + 3.25%, 4.00%, 9/27/24 (c)	$	249	$	249
Avaya, Inc., 2018 Term Loan B 1 Month USD LIBOR + 4.25%, 4.36%, 12/15/24 (c)		277		277
Block Communications, Inc., 2020 Term Loan 1 Month USD LIBOR + 2.25%, 2.45%, 2/25/27 (c)		495		495
CenturyLink, Inc., 2020 Term Loan B 1 Month USD LIBOR + 2.25%, 2.36%, 3/15/27 (c)		494		489
Clear Channel Outdoor Holdings, Inc., Term Loan B 1 Month USD LIBOR + 3.50%, 3.71%, 8/21/26 (c)		494		476
Cogeco Communications Finance (USA) II L.P., Term Loan B 1 Month USD LIBOR + 2.00%, 2.11%, 1/3/25 (c)		494		489
Colorado Buyer Inc, Term Loan B 5/1/24 (c)(d)		275		266
Coral-US Co-Borrower LLC, 2020 Term Loan B5 1 Month USD LIBOR + 2.25%, 2.36%, 1/31/28 (c)		500		493
CSC Holdings, LLC, 2019 Term Loan B5 1 Month USD LIBOR + 2.50%, 2.61%, 4/15/27 (c)		100		99
Digicel International Finance Limited, Term Loan B 6 Month USD LIBOR + 3.25%, 3.51%, 5/28/24 (c)		247		235
Go Daddy Operating Co. LLC, 2020 Term Loan B3 1 Month USD LIBOR + 2.00%, 2.11%, 8/10/27 (c)		248		247
Hargray Communications Group, Inc., 2017 Term Loan B 1 Month USD LIBOR + 2.75%, 3.75%, 5/16/24 (c)		211		211
I-Logic Technologies Bidco Limited, 2021 USD Term Loan B 1 Month USD LIBOR + 4.00%, 4.50%, 2/16/28 (c)		250		249
LCPR Loan Financing LLC, 2021 Term Loan B 10/15/28		200		201
Level 3 Financing, Inc., 2019 Term Loan B 1 Month USD LIBOR + 1.75%, 1.86%, 3/1/27 (c)		250		247

	Face Amount (000)		Value (000)
MH Sub I LLC, 2020 Incremental Term Loan 3 Month USD LIBOR + 3.75%, 4.75%, 9/13/24 (c)	$	99	$	99
NEP/NCP Holdco, Inc., 2018 1st Lien Term Loan 3 Month USD LIBOR + 3.25%, 3.36%, 10/20/25 (c)		494		480
PUG LLC, Term Loan 1 Month USD LIBOR + 3.50%, 3.61%, 2/12/27 (c)		691		670
Univision Communications, Inc., Term Loan C5 1 Month USD LIBOR + 3.75%, 4.75%, 3/15/26 (c)		354		354
Virgin Media Bristol LLC, Term Loan N 1 Month USD LIBOR + 2.50%, 2.61%, 1/31/28 (c)		250		248
Zacapa SARL, 2018 1st Lien Term Loan B 3 Month USD LIBOR + 4.50%, 4.70%, 7/2/25 (c)		248		249
Ziggo Financing Partnership, Term Loan I 1 Month USD LIBOR + 2.50%, 2.61%, 4/30/28 (c)		500		496
				7,319
Consumer, Cyclical (16.7%)
1011778 B.C. Unlimited Liability Company, Term Loan B4 1 Month USD LIBOR + 1.75%, 1.86%, 11/19/26 (c)		247		243
Aimbridge Acquisition Co., Inc., 2019 Term Loan B 3 Month USD LIBOR + 3.75%, 3.86%, 2/2/26 (c)		523		509
Allegiant Travel Company, 2020 Term Loan 1 Month USD LIBOR + 3.00%, 3.20%, 2/5/24 (c)		495		492
American Airlines, Inc., 2017 1st Lien Term Loan 1 Month USD LIBOR + 1.75%, 1.86%, 1/29/27 (c)		495		453
American Builders & Contractors Supply Co., Inc., 2019 Term Loan 1 Month USD LIBOR + 2.00%, 2.11%, 1/15/27 (c)		395		392
Aramark Services, Inc., 2019 Term Loan B4 1 Month USD LIBOR + 1.75%, 1.86%, 1/15/27 (c)		495		489
Autokiniton US Holdings, Inc., 2021 Term Loan B 3/29/28 (d)		100		100

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Senior Loan Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Burlington Coat Factory Warehouse Corporation, 2017 Term Loan B5 1 Month USD LIBOR + 1.75%, 1.86%, 11/17/24 (c)	$	250	$	249
BW Gas & Convenience Holdings LLC, Term Loan 1 Month USD LIBOR + 6.25%, 6.36%, 11/18/24 (c)		520		526
Caesars Resort Collection LLC, 2020 Term Loan B1 1 Month USD LIBOR + 4.50%, 4.61%, 7/21/25 (c)		149		150
Carrols Restaurant Group, Inc., Term Loan B 3 Month USD LIBOR + 3.25%, 3.37%, 4/30/26 (c)		494		488
CBI Buyer, Inc., Term Loan 1 Month USD LIBOR + 3.25%, 3.75%, 1/6/28 (c)		100		100
Core & Main LP, 2017 Term Loan B 3 Month USD LIBOR + 2.75%, 3.75%, 8/1/24 (c)		494		492
Delta 2 (LUX) S.a.r.l., 2018 USD Term Loan 3 Month USD LIBOR + 2.50%, 3.50%, 2/1/24 (c)		300		298
Golden Nugget, Inc., 2017 Incremental Term Loan B 1 Month USD LIBOR + 2.50%, 3.25%, 10/4/23 (c)		542		535
Harbor Freight Tools USA, Inc., 2018 Term Loan B 3 Month USD LIBOR + 3.25%, 3.75%, 8/18/23 (c)		496		496
IRB Holding Corp, 2020 Term Loan B 1 Month USD LIBOR + 2.75%, 3.75%, 2/5/25 (c)		494		490
JetBlue Airways Corporation, Term Loan 1 Month USD LIBOR + 5.25%, 6.25%, 6/17/24 (c)		96		99
LifeMiles Ltd., Term Loan B 8/18/22 (c)(d)		250		243
Lions Gate Capital Holdings LLC, 2018 Term Loan B 3 Month USD LIBOR + 2.25%, 2.36%, 3/24/25 (c)		243		240
Petco Health and Wellness Company, Inc., 2021 Term Loan B 3 Month USD LIBOR + 3.25%, 4.00%, 2/24/28		150		150
PetSmart, Inc., 2021 Term Loan B 1 Month USD LIBOR + 3.75%, 4.50%, 2/12/28 (c)		100		100

	Face Amount (000)		Value (000)
Playa Resorts Holding BV, 2017 Term Loan B 3 Month USD LIBOR + 2.75%, 3.75%, 4/29/24 (c)	$	343	$	331
Scientific Games International, Inc., 2018 Term Loan B5 3 Month USD LIBOR + 2.75%, 2.86%, 8/14/24 (c)(d)		494		485
Signal Parent, Inc, Term Loan B 1 Month USD LIBOR + 3.50%, 4.25%, 3/25/28		150		149
Truck Hero, Inc., 2021 Term Loan B 1 Month USD LIBOR + 3.75%, 4.50%, 1/31/28 (c)		150		150
WMG Acquisition Corp., 2021 Term Loan G 1 Month USD LIBOR + 2.13%, 2.23%, 1/20/28 (c)		155		154
				8,603
Consumer, Non-Cyclical (17.9%)
Agiliti Health, Inc., Term Loan 1 Month USD LIBOR + 2.75%, 2.88%, 1/4/26 (c)		494		487
Air Methods Corporation, 2017 Term Loan B 3 Month USD LIBOR + 3.50%, 4.50%, 4/22/24 (c)		249		242
Amneal Pharmaceuticals LLC, 2018 Term Loan B 3 Month USD LIBOR + 3.50%, 3.63%, 5/4/25 (c)		222		219
Auris Luxembourg III S.a.r.l., 2019 USD Term Loan B2 2/27/26 (c)(d)		199		194
Bausch Health Cos., Inc., 2018 Term Loan B 3 Month USD LIBOR + 3.00%, 3.11%, 6/2/25 (c)		426		425
Cano Health LLC, Delayed Draw Term Loan 4.75%, 11/19/27 (e)		94		94
Term Loan 1 Month USD LIBOR + 4.75%, 5.50%, 11/19/27 (c)		256		256
Creative Artists Agency LLC, 2019 Term Loan B 1 Month USD LIBOR + 3.75%, 3.86%, 11/26/26 (c)		494		489
DaVita, Inc., 2020 Term Loan B 1 Month USD LIBOR + 1.75%, 1.86%, 8/12/26 (c)		247		246
EyeCare Partners LLC, 2020 Term Loan 1 Month USD LIBOR + 3.75%, 3.86%, 2/18/27 (c)		397		393

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Senior Loan Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
Froneri International Ltd., 2020 USD Term Loan 1 Month USD LIBOR + 2.25%, 2.36%, 1/29/27 (c)	$	496	$	490
Gainwell Acquisition Corp., Term Loan B 10/1/27 (c)(d)		125		125
Garda World Security Corporation, 2021 Term Loan B 1 Month USD LIBOR + 4.25%, 4.37%, 10/30/26		375		376
Gentiva Health Services, Inc., 2020 Term Loan 1 Month USD LIBOR + 2.75%, 2.88%, 7/2/25 (c)		434		432
Grifols Worldwide Operations USA, Inc., 2019 Term Loan B 1 Month USD LIBOR + 2.00%, 2.08%, 11/15/27 (c)		247		244
H Food Holdings LLC, 2018 Term Loan B 3 Month USD LIBOR + 3.69%, 3.80%, 5/23/25 (c)		244		242
HCA, Inc., Term Loan B12 1 Month USD LIBOR + 1.75%, 1.86%, 3/13/25 (c)		494		494
Help at Home, Inc., 2020 Delayed Draw Term Loan 5.50%, 10/29/27 (e)		25		25
2020 Term Loan B 1 Month USD LIBOR + 5.00%, 6.00%, 10/29/27 (c)		200		201
MMM Holdings, Inc., Term Loan B 1 Month USD LIBOR + 5.75%, 6.75%, 12/24/26 (c)		97		98
Pathway Vet Alliance LLC, 2021 Term Loan 1 Month USD LIBOR + 3.75%, 3.86%, 3/31/27 (c)		100		99
Pearl Intermediate Parent LLC, 2018 1st Lien Term Loan 3 Month USD LIBOR + 2.75%, 2.86%, 2/14/25 (c)		494		487
2018 Incremental Term Loan 3 Month USD LIBOR + 3.25%, 3.36%, 2/14/25 (c)		148		147
Pluto Acquisition I, Inc., 2021 Term Loan 1 Month USD LIBOR + 4.50%, 4.61%, 6/22/26 (c)		100		100
Select Medical Corp., 2017 Term Loan B 3 Month USD LIBOR + 2.25%, 2.36%, 3/6/25 (c)		250		249
Surgery Center Holdings, Inc., 2017 Term Loan B 3 Month USD LIBOR + 3.25%, 4.25%, 9/3/24 (c)		740		735

	Face Amount (000)		Value (000)
Syniverse Holdings, Inc., 2018 1st Lien Term Loan 3 Month USD LIBOR + 5.00%, 6.00%, 3/9/23 (c)	$	249	$	246
TMS International Corp., 2018 Term Loan B2 3 Month USD LIBOR + 2.75%, 3.75%, 8/14/24 (c)		493		492
TruGreen Limited Partnership, 2020 2nd Lien Term Loan 1 Month USD LIBOR + 8.50%, 9.25%, 11/2/28 (c)		500		518
US Foods, Inc., 2019 Term Loan B 3 Month USD LIBOR + 2.00%, 2.11%, 9/13/26 (c)		247		243
Wand NewCo 3, Inc., 2020 Term Loan 2/5/26 (c)(d)		125		123
				9,211
Energy (3.3%)
Blackstone CQP Holdco LP, Term Loan B 3 Month USD LIBOR + 3.50%, 3.69%, 9/30/24 (c)		494		493
Lower Cadence Holdings LLC, Term Loan B 3 Month USD LIBOR + 4.00%, 4.11%, 5/22/26 (c)		494		483
Medallion Midland Acquisition LLC, 1st Lien Term Loan 3 Month USD LIBOR + 3.25%, 4.25%, 10/30/24 (c)		494		490
Stonepeak Lonestar Holdings LLC, Term Loan 1 Month USD LIBOR + 4.50%, 4.73%, 10/19/26 (c)		226		227
				1,693
Finance (8.5%)
AqGen Ascensus, Inc., 2020 Term Loan 1 Month USD LIBOR + 4.00%, 5.00%, 12/13/26 (c)		149		149
Asurion LLC, 2020 Term Loan B8 1 Month USD LIBOR + 3.25%, 3.36%, 12/23/26 (c)		125		124
Avolon TLB Borrower 1 (US) LLC, 2020 Term Loan B5 1 Month USD LIBOR + 2.50%, 3.25%, 12/1/27 (c)		274		275
Baldwin Risk Partners LLC, Term Loan B 1 Month USD LIBOR + 4.00%, 4.75%, 10/14/27 (c)		149		149
Blackstone Mortgage Trust, Inc., 2019 Term Loan B 1 Month USD LIBOR + 2.25%, 2.36%, 4/23/26 (c)		494		489

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Senior Loan Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Brookfield Property REIT, Inc., 1st Lien Term Loan B 3 Month USD LIBOR + 2.50%, 2.61%, 8/27/25 (c)	$	494	$	473
Charter Communications Operating LLC, 2019 Term Loan B1 1 Month USD LIBOR + 1.75%, 1.86%, 4/30/25 (c)		223		223
Citadel Securities LP, 2021 Term Loan B 1 Month USD LIBOR + 2.50%, 2.61%, 2/29/28 (c)		475		471
Hub International Limited, 2018 Term Loan B 1 Month USD LIBOR + 2.75%, 2.97% - 3.22%, 4/25/25 (c)		494		487
Illuminate Buyer LLC, Term Loan 1 Month USD LIBOR + 3.50%, 3.61%, 6/30/27 (c)		100		99
Jefferies Finance LLC, 2020 Incremental Term Loan B 1 Month USD LIBOR + 3.75%, 4.50%, 9/30/27 (c)		249		247
Sedgwick Claims Management Services, Inc., 2018 Term Loan B 3 Month USD LIBOR + 3.25%, 3.36%, 12/31/25 (c)		494		488
Vertical Midco GmbH, Term Loan B 6 Month USD LIBOR + 4.25%, 4.48%, 7/30/27 (c)		398		399
VICI Properties 1 LLC, Replacement Term Loan B 1 Month USD LIBOR + 1.75%, 1.86%, 12/20/24 (c)		300		297
				4,370
Government (0.9%)
Seminole Tribe of Florida, 2018 Term Loan B 3 Month USD LIBOR + 1.75%, 1.86%, 7/8/24 (c)		472		472
Health Care (0.3%)
Idera, Inc., 2021 Term Loan 3 Month USD LIBOR + 3.75%, 4.50%, 2/4/28		150		149
Industrials (12.0%)
ACProducts, Inc., 2020 Term Loan B 1 Month USD LIBOR + 6.50%, 7.50%, 8/18/25 (c)		122		125
Alliance Laundry Systems LLC, Term Loan B 1 Month USD LIBOR + 3.50%, 4.25%, 10/8/27 (c)		100		100
Associated Asphalt Partners LLC, 2017 Term Loan B 3 Month USD LIBOR + 5.25%, 6.25%, 4/5/24 (c)		307		288

	Face Amount (000)		Value (000)
Berry Global, Inc., 2021 Term Loan Z 1 Month USD LIBOR + 1.75%, 1.90%, 7/1/26	$	249	$	248
BWAY Holding Co., 2017 Term Loan B 3 Month USD LIBOR + 3.25%, 3.44%, 4/3/24 (c)		249		244
Cornerstone Building Brands, Inc., 2018 Term Loan 3 Month USD LIBOR + 3.75%, 3.86%, 4/12/25 (c)		244		244
CPG International, Inc., 2017 Term Loan 3 Month USD LIBOR + 2.50%, 3.25%, 5/5/24 (c)		295		296
Flex Acquisition Company, Inc., 2021 Term Loan 1 Month USD LIBOR + 3.50%, 4.00%, 2/23/28		476		471
Generac Power Systems, Inc., 2019 Term Loan B 1 Month USD LIBOR + 1.75%, 1.87%, 12/13/26 (c)		500		501
Ingersoll-Rand Services Co., 2020 USD Spinco Term Loan 1 Month USD LIBOR + 1.75%, 1.86%, 3/1/27 (c)		248		245
Patriot Container Corp., 2018 1st Lien Term Loan 3 Month USD LIBOR + 3.50%, 4.50%, 3/20/25 (c)		248		246
Pretium PKG Holdings, Inc., 2020 Term Loan 1 Month USD LIBOR + 4.00%, 4.75%, 11/5/27 (c)		150		150
Proampac PG Borrower LLC, 2020 Term Loan 1 Month USD LIBOR + 4.00%, 5.00%, 11/3/25 (c)		125		125
Quikrete Holdings, Inc., 2016 1st Lien Term Loan 1 Month USD LIBOR + 2.50%, 2.61%, 2/1/27 (c)		494		491
Reynolds Group Holdings, Inc., 2017 Term Loan 1 Month USD LIBOR + 2.75%, 2.86%, 2/5/23 (c)		94		94
Tank Holding Corp., 2020 Term Loan 1 Month USD LIBOR + 3.25%, 3.36%, 3/26/26 (c)		248		245
The Enterprise Development Authority, Term Loan B 2/18/28 (d)		125		125
Titan Acquisition Limited, 2018 Term Loan B 3 Month USD LIBOR + 3.00%, 3.27%, 3/28/25 (c)		247		242

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Senior Loan Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
TransDigm, Inc., 2020 Term Loan F 1 Month USD LIBOR + 2.25%, 2.36%, 12/9/25 (c)	$	494	$	484
Trident TPI Holdings, Inc., 2017 USD Term Loan B1 3 Month USD LIBOR + 3.00%, 4.00%, 10/17/24 (c)		494		490
Tutor Perini Corporation, Term Loan B 1 Month USD LIBOR + 4.50%, 5.50%, 8/13/27 (c)		249		252
XPO Logistics, Inc., 2018 Term Loan B 1 Month USD LIBOR + 1.75%, 1.86%, 2/24/25 (c)		250		249
Zekelman Industries, Inc., 2020 Term Loan 1 Month USD LIBOR + 2.00%, 2.11%, 1/24/27 (c)		243		240
				6,195
Technology (9.3%)
Athenahealth, Inc., 2021 Term Loan B1 1 Month USD LIBOR + 4.25%, 4.45%, 2/11/26 (c)		100		100
Banff Merger Sub, Inc., 2018 USD Term Loan B 3 Month USD LIBOR + 3.75%, 3.86%, 10/2/25 (c)		353		352
By Crown Parent LLC, Term Loan B1 1 Month USD LIBOR + 3.00%, 4.00%, 2/2/26 (c)		347		348
Camelot U.S. Acquisition 1 Co., 2020 Incremental Term Loan B 1 Month USD LIBOR + 3.00%, 4.00%, 10/30/26 (c)		125		125
DCert Buyer, Inc., 2019 Term Loan B 3 Month USD LIBOR + 4.00%, 4.11%, 10/16/26 (c)		248		248
2021 2nd Lien Term Loan 1 Month USD LIBOR + 7.00%, 7.11%, 2/16/29 (c)		125		126
Dell International LLC, 2021 Term Loan B 1 Month USD LIBOR + 1.75%, 2.00%, 9/19/25 (c)		164		164
Hyland Software, Inc., 2018 1st Lien Term Loan 1 Month USD LIBOR + 3.50%, 4.25%, 7/1/24 (c)		149		149
McAfee LLC, 2018 USD Term Loan B 3 Month USD LIBOR + 3.75%, 3.86%, 9/30/24 (c)		446		447

	Face Amount (000)		Value (000)
Rackspace Hosting, Inc., 2021 Term Loan 1 Month USD LIBOR + 2.75%, 3.50%, 2/15/28 (c)	$	450	$	447
Redstone Buyer LLC, Term Loan 1 Month USD LIBOR + 5.00%, 6.00%, 9/1/27 (c)		399		401
Surf Holdings LLC, Term Loan 1 Month USD LIBOR + 3.50%, 3.68%, 3/5/27 (c)		496		492
Verifone Systems, Inc., 2018 1st Lien Term Loan 3 Month USD LIBOR + 4.00%, 4.18%, 8/20/25 (c)		495		484
VS Buyer LLC, Term Loan B 1 Month USD LIBOR + 3.00%, 3.11%, 2/28/27 (c)		495		494
Western Digital Corporation, 2018 Term Loan B4 1 Month USD LIBOR + 1.75%, 1.86%, 4/29/23 (c)		411		412
				4,789
Utilities (0.4%)
Invenergy Thermal Operating I LLC, 2018 Term Loan B 1 Month USD LIBOR + 3.00%, 3.11%, 8/28/25 (c)		123		123
Pacific Gas & Electric Company, 2020 Term Loan 3 Month USD LIBOR + 3.00%, 3.50%, 6/23/25 (c)		99		99
				222
				44,125
Total Fixed Income Securities (Cost $51,640)				51,847
	Shares
Short-Term Investment (2.0%)
Investment Company (2.0%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,048)		1,047,778		1,048
Total Investments (102.7%) (Cost $52,688) (f)				52,895
Liabilities in Excess of Other Assets (–2.7%)				(1,392	)
Net Assets (100.0%)			$	51,503

(a)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b)  Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2021. Maturity date disclosed is the ultimate maturity date.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Senior Loan Portfolio

(c)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(d)  Unsettled Position. The contract rate does not take effect until settlement date.

(e)  In addition to the term loan, the Fund has an unfunded loan commitment of approximately $119,000, which could be extended at the option of the borrower. As of March 31, 2021, Help at Home, Inc. and Cano Health LLC did not draw down any of the commitment.

(f)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $549,000 and the aggregate gross unrealized depreciation is approximately $342,000, resulting in net unrealized appreciation of approximately $207,000.

LIBOR  London Interbank Offered Rate.

REIT  Real Estate Investment Trust.

USD  United States Dollar.

Portfolio Composition

Classification	Percentage of Total Investments
Variable Rate Senior Loan Interests		83.4	%
Corporate Bonds		14.6
Other*		2.0
Total Investments		100.0	%

*  Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Senior Loan Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $51,640)	$	51,847
Investment in Security of Affiliated Issuer, at Value (Cost $1,048)		1,048
Total Investments in Securities, at Value (Cost $52,688)		52,895
Interest Receivable		246
Receivable for Investments Sold		203
Receivable from Affiliate		—	@
Other Assets		59
Total Assets		53,403
Liabilities:
Payable for Investments Purchased		1,527
Payable for Offering Costs		143
Payable for Unfunded Loan Commitments		119
Payable for Professional Fees		67
Payable for Advisory Fees		32
Payable for Administration Fees		3
Payable for Custodian Fees		1
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		8
Total Liabilities		1,900
Net Assets	$	51,503
Net Assets Consist of:
Paid-in-Capital	$	51,959
Total Accumulated Loss		(456	)
Net Assets	$	51,503
CLASS I:
Net Assets	$	51,473
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		5,202,485
Net Asset Value, Offering and Redemption Price Per Share	$	9.89
CLASS A:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,037
Net Asset Value, Redemption Price Per Share	$	9.89
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.33
Maximum Offering Price Per Share	$	10.22
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,028
Net Asset Value, Offering and Redemption Price Per Share	$	9.88
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,041
Net Asset Value, Offering and Redemption Price Per Share	$	9.89

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Senior Loan Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,071
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		1,071
Expenses:
Advisory Fees (Note B)		152
Professional Fees		51
Offering Costs		48
Administration Fees (Note C)		20
Registration Fees		15
Shareholder Reporting Fees		6
Pricing Fees		5
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		2
Trustees' Fees and Expenses		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Other Expenses		3
Total Expenses		307
Waiver of Advisory Fees (Note B)		(113	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		190
Net Investment Income		881
Realized Gain:
Investments Sold		80
Change in Unrealized Appreciation (Depreciation):
Investments		1,448
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		1,528
Net Increase in Net Assets Resulting from Operations	$	2,409

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Senior Loan Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Period from January 31, 2020^ to September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	881		$	1,097
Net Realized Gain (Loss)		80			(763	)
Net Change in Unrealized Appreciation (Depreciation)		1,448			(1,241	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,409			(907	)
Dividends and Distributions to Shareholders:
Class I		(1,013	)		(945	)
Class A		(—	@)		(—	@)
Class C		(—	@)		(—	@)
Class IS		(—	@)		(—	@)
Total Dividends and Distributions to Shareholders		(1,013	)		(945	)
Capital Share Transactions:(1)
Class I:
Subscribed		—			49,971
Distributions Reinvested		1,013			945
Class A:
Subscribed		—			10
Distributions Reinvested		—	@		—	@
Class C:
Subscribed		—			10
Distributions Reinvested		—	@		—	@
Class IS:
Subscribed		—			10
Distributions Reinvested		—	@		—	@
Net Increase in Net Assets Resulting from Capital Share Transactions		1,013			50,946
Total Increase in Net Assets		2,409			49,094
Net Assets:
Beginning of Period		49,094			—
End of Period	$	51,503		$	49,094
(1) Capital Share Transactions:
Class I:
Shares Subscribed		—			4,997
Shares Issued on Distributions Reinvested		104			102
Net Increase in Class I Shares Outstanding		104			5,099
Class A:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class A Shares Outstanding		—	@@		1
Class C:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class C Shares Outstanding		—	@@		1
Class IS:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class IS Shares Outstanding		—	@@		1

^  Commencement of Operations.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Senior Loan Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period from January 31, 2020(1) to September 30, 2020
Net Asset Value, Beginning of Period	$	9.62		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.17			0.22
Net Realized and Unrealized Gain (Loss)		0.30			(0.41	)
Total from Investment Operations		0.47			(0.19	)
Distributions from and/or in Excess of:
Net Investment Income		(0.20	)		(0.19	)
Net Asset Value, End of Period	$	9.89		$	9.62
Total Return(3)		4.90	%(6)		(1.84	)%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	51,473		$	49,064
Ratio of Expenses Before Expense Limitation		1.20	%(7)		1.52	%(7)
Ratio of Expenses After Expense Limitation		0.75	%(4)(7)		0.73	%(4)(7)
Ratio of Net Investment Income		3.49	%(4)(7)		3.49	%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(5)(7)		0.02	%(7)
Portfolio Turnover Rate		19	%(6)		27	%(6)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Senior Loan Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period from January 31, 2020(1) to September 30, 2020
Net Asset Value, Beginning of Period	$	9.62		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.15			0.19
Net Realized and Unrealized Gain (Loss)		0.30			(0.40	)
Total from Investment Operations		0.45			(0.21	)
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		(0.17	)
Net Asset Value, End of Period	$	9.89		$	9.62
Total Return(3)		4.69	%(6)		(2.07	)%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		18.76	%(7)		22.54	%(7)
Ratio of Expenses After Expense Limitation		1.15	%(4)(7)		1.13	%(4)(7)
Ratio of Net Investment Income		3.08	%(4)(7)		3.09	%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(5)(7)		0.02	%(7)
Portfolio Turnover Rate		19	%(6)		27	%(6)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Senior Loan Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period from January 31, 2020(1) to September 30, 2020
Net Asset Value, Beginning of Period	$	9.61		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.11			0.15
Net Realized and Unrealized Gain (Loss)		0.30			(0.42	)
Total from Investment Operations		0.41			(0.27	)
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.12	)
Net Asset Value, End of Period	$	9.88		$	9.61
Total Return(3)		4.30	%(6)		(2.59	)%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		19.55	%(7)		23.27	%(7)
Ratio of Expenses After Expense Limitation		1.90	%(4)(7)		1.88	%(4)(7)
Ratio of Net Investment Income		2.34	%(4)(7)		2.34	%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(5)(7)		0.02	%(7)
Portfolio Turnover Rate		19	%(6)		27	%(6)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Senior Loan Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Period from January 31, 2020(1) to September 30, 2020
Net Asset Value, Beginning of Period	$	9.62		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.17			0.22
Net Realized and Unrealized Gain (Loss)		0.30			(0.41	)
Total from Investment Operations		0.47			(0.19	)
Distributions from and/or in Excess of:
Net Investment Income		(0.20	)		(0.19	)
Net Asset Value, End of Period	$	9.89		$	9.62
Total Return(3)		4.90	%(6)		(1.84	)%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses Before Expense Limitation		18.36	%(7)		22.19	%(7)
Ratio of Expenses After Expense Limitation		0.75	%(4)(7)		0.72	%(4)(7)
Ratio of Net Investment Income		3.48	%(4)(7)		3.49	%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(5)(7)		0.02	%(7)
Portfolio Turnover Rate		19	%(6)		27	%(6)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust is comprised of thirteen separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Senior Loan Portfolio. The Fund seeks a high level of current income. The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Trust in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

In March 2020, the Financial Accounting Standards Board ("FASB") issued an Accounting Standard Update, ASU 2020-04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate ("LIBOR") and other Interbank Offered Rate ("IBOR") based reference rates at the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 on the Fund's investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform.

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on

an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (3) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; and (4) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust's Adviser or a valuation committee, to assist the Trustees in determining fair value and to make the actual calculations

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

pursuant to the fair valuation methodologies previously approved by the Trustees. Under procedures approved by the Trustees, the Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

2.  Fair Value Measurement: FASB Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for

exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Corporate Bonds	$	—	$	7,722	$	—	$	7,722
Variable Rate Senior Loan Interests		—		44,125		—		44,125
Total Fixed Income Securities		—		51,847		—		51,847
Short-Term Investment
Investment Company		1,048		—		—		1,048
Total Assets	$	1,048	$	51,847	$	—	$	52,895

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

3.  Senior Loans: Senior Loans are loans made to borrowers that may be corporations, partnerships or other entities. These borrowers operate in a variety of industries and geographic regions, although most Senior Loans are made to borrowers that are organized or located in the U.S. Senior Loans generally are negotiated between a borrower and several financial institution lenders represented by one or more lenders acting as agent of all the lenders. The agent is responsible for negotiating the loan agreement that establishes the terms and conditions of the Senior Loan and the rights of the borrower and the lenders. The Fund may purchase assignments of portions of Senior Loans from third parties and may invest in participations in Senior Loans. Senior Loans also may take the form of debt obligations of borrowers issued directly to investors in the form of debt securities (i.e., Senior Notes).

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The purchaser of an assignment typically succeeds to all the rights and obligations under the loan agreement of the assigning lender and becomes a lender under the loan agreement. Assignments may, however, be arranged through private negotiations, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender.

When the Fund purchases a participation in a Senior Loan, the Fund will usually have a contractual relationship only with the lender selling the participation and not with the borrower. The Fund may have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of such payments from the borrower. As a result, the Fund may assume the credit risk of both the borrower and the lender selling the participation. In the event of insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender.

The Fund's investment in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.

4.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

5.  Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, if any, are distributed at least annually.

6.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. When the Fund buys an interest in a Senior Loan, it may receive a commitment fee which is paid to lenders on an ongoing

basis based upon the undrawn portion committed by the lenders of the underlying Senior Loan. The Fund accrues the commitment fee over the expected term of the loan. When the Fund sells an interest in a Senior Loan, it may be required to pay fees or commissions to the purchaser of the interest. Fees received in connection with loan amendments are accrued as earned. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at the annual rate based on the daily net assets as follows:

First $1 billion			Next $1.5 billion			Over $2.5 billion
	0.60	%		0.55	%		0.50	%

For the six months ended March 31, 2021, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.15% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.80% for Class I shares, 1.15% for Class A shares, 1.90% for Class C shares and 0.75% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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 March 31, 2021, approximately $113,000 of advisory fees were waived and approximately $3,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust has adopted a Distribution and Shareholder Services Plan with respect to Class C shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.75% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class A and Class C shares.

E. Dividend Disbursing and Transfer/Co-Transfer Agent: The Trust's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Trust pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.

Morgan Stanley Services Company Inc. serves as Co-Transfer Agent and provides certain transfer agency services to the Fund with respect to certain direct transactions with the Fund.

F. Custodian Fees: State Street (the "Custodian") also serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Trust as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $10,823,000 and $9,634,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	55	$	8,644	$	7,651	$	—	@

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	1,048

@ Amount is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for

tax purposes. The tax character of distributions paid during fiscal year 2020 was as follows:

2020 Distributions Paid From: Ordinary Income (000)
$	945

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at September 30, 2020:

Total Accumulated Loss (000)			Paid-in- Capital (000)
$	—	@	$	(—	@)

@ Amount is less than $500.

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	275	$	—

At September 30, 2020, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $765,000 that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund did not have record owners of 10% or greater.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

L. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions,

bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Trustees (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice  April 2021

FACTS	WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?	All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

To limit our sharing	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?	We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?	Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

Definitions

Investment Management Affiliates	MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates	Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates	Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing	A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

Frank L. Bowman
Kathleen A. Dennis
Nancy C. Everett
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia Maleski
W. Allen Reed, Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Co-Transfer Agent

Morgan Stanley Services Company, Inc.
522 Fifth Avenue
New York, New York 10036

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Trustees

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable fund of Morgan Stanley Institutional Fund Trust, which describes in detail the fund's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Fund, please visit our website at www.morganstanley.com/im/shareholderreports or call toll free 1 (800) 548-7786.

28

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTSLSAN
3565734 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Short Duration Income Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	12
Statement of Operations	14
Statements of Changes in Net Assets	15
Financial Highlights	17
Notes to Financial Statements	22
Liquidity Risk Management Program	30
U.S. Customer Privacy Notice	31
Trustee and Officer Information	34

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or statement of additional information ("SAI"), which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations and describes in detail each of the Fund's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access fund information including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Short Duration Income Portfolio (the "Fund") performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Short Duration Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Short Duration Income Portfolio Class I	$	1,000.00	$	1,009.50	$	1,023.44	$	1.50	$	1.51		0.30	%
Short Duration Income Portfolio Class A		1,000.00		1,008.40		1,022.19		2.75		2.77		0.55
Short Duration Income Portfolio Class L		1,000.00		1,007.10		1,020.94		4.00		4.03		0.80
Short Duration Income Portfolio Class C		1,000.00		1,004.00		1,018.45		6.50		6.54		1.30
Short Duration Income Portfolio Class IS		1,000.00		1,009.80		1,023.68		1.25		1.26		0.25

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Short Duration Income Portfolio

	Face Amount (000)			Value (000)
Fixed Income Securities (94.2%)
Agency Adjustable Rate Mortgages (0.1%)
Federal Home Loan Mortgage Corporation, Conventional Pools: 1 Year CMT + 2.32%, 2.57%, 3/1/37	$	250		$	268
1 Year CMT + 2.32%, 2.75%, 7/1/38		190			204
1 Year CMT + 2.34%, 2.95%, 1/1/36		191			204
1 Year CMT + 2.19%, 3.15%, 6/1/38		95			102
					778
Agency Bond — Consumer Discretionary (U.S. Government Guaranteed) (0.1%)
Safina Ltd.
2.00%, 12/30/23		246			252
Agency Fixed Rate Mortgages (0.2%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
4.50%, 12/1/24		118			124
6.50%, 4/1/24		—	@		—	@
7.50%, 5/1/35		16			19
8.00%, 8/1/32		9			10
8.50%, 8/1/31		10			12
Federal National Mortgage Association,
Conventional Pools:
4.50%, 6/1/24 - 7/1/24		188			199
5.00%, 12/1/23 - 12/1/24		86			90
6.00%, 9/1/37		38			46
6.50%, 2/1/28 - 10/1/32		135			154
7.00%, 7/1/29 - 3/1/37		147			167
7.50%, 8/1/37		21			25
8.00%, 4/1/33		38			46
8.50%, 10/1/32		18			22
Government National Mortgage Association,
Various Pools:
6.00%, 11/15/38		68			79
8.50%, 7/15/30		18			20
					1,013
Asset-Backed Securities (16.5%)
Ajax Mortgage Loan Trust,
1.70%, 5/25/59 (a)		716			725
2.24%, 6/25/66 (a)		1,061			1,059
AMSR Trust
2.11%, 9/17/37 (a)		975			966
Aqua Finance Trust
3.14%, 7/16/40 (a)		281			289
Bayview Opportunity Master Fund Trust
3.50%, 1/28/55 (a)(b)		152			157
CarMax Auto Owner Trust
1.70%, 11/15/24		1,800			1,829
Cascade Funding Mortgage Trust
3.40%, 4/25/30 (a)(b)		612			619
CFMT 2020-HB3 LLC
5.11%, 5/25/30 (a)(b)		800			806

	Face Amount (000)		Value (000)
CFMT 2020-HB4 LLC
2.72%, 12/26/30 (a)(b)	$	1,625	$	1,625
CNH Equipment Trust
2.01%, 12/16/24		1,528		1,558
Commonbond Student Loan Trust
1.20%, 3/25/52 (a)		1,800		1,795
Conn's Receivables Funding 2020-A LLC
1.71%, 6/16/25 (a)		498		499
Consumer Loan Underlying Bond Credit Trust,
3.28%, 7/15/26 (a)		845		856
4.07%, 7/15/25 (a)		6		6
ECMC Group Student Loan Trust,
Class A1B
1 Month USD LIBOR + 1.00%, 1.11%, 1/27/70 (a)(b)		1,009		1,022
Fair Square Issuance Trust
2.90%, 9/20/24 (a)		300		303
Falcon Aerospace Ltd.
3.60%, 9/15/39 (a)		364		368
FCI Funding 2019-1 LLC
3.63%, 2/18/31 (a)		133		135
FHF Trust
1.27%, 3/15/27 (a)		660		660
Finance of America HECM Buyout
1.59%, 2/25/31 (a)(b)		500		499
Ford Credit Auto Owner Trust
1.06%, 4/15/33 (a)		3,840		3,811
Foundation Finance Trust,
3.30%, 7/15/33 (a)		140		143
3.86%, 11/15/34 (a)		306		316
FREED ABS Trust,
3.19%, 11/18/26 (a)		900		915
3.87%, 6/18/26 (a)		252		255
4.61%, 10/20/25 (a)		481		486
GAIA Aviation Ltd.
3.97%, 12/15/44 (a)		554		554
GCI Funding I LLC
2.82%, 10/18/45 (a)		1,345		1,379
GM Financial Automobile Leasing Trust,
0.80%, 7/20/23		220		221
1.67%, 12/20/22		830		838
GM Financial Consumer Automobile Receivables Trust
2.81%, 12/16/22		433		437
Golub Capital Partners ABS Funding Ltd.,
2.77%, 4/20/29 (a)(c)		1,725		1,725
Class A2
3.21%, 1/22/29 (a)		1,360		1,345
Kubota Credit Owner Trust
0.59%, 10/15/24 (a)		675		677
LL ABS Trust
2.33%, 1/17/28 (a)		469		473
Loanpal Solar Loan 2021-1 Ltd.
2.29%, 1/20/48 (a)		1,414		1,419

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
Loanpal Solar Loan 2021-2 Ltd.
2.22%, 3/20/48 (a)	$	1,750	$	1,753
Lunar Aircraft Ltd.
3.38%, 2/15/45 (a)		174		171
MACH 1 Cayman Ltd.
3.47%, 10/15/39 (a)		460		464
Mercedes-Benz Auto Receivables Trust
0.55%, 2/18/25		330		331
Mercury Financial Credit Card Master Trust
1.54%, 3/20/26 (a)		1,725		1,727
MFA 2021-NPL1 LLC
2.36%, 3/25/60 (a)		1,700		1,701
Monroe Capital ABS Funding 2021-1 Ltd.
2.82%, 4/22/31 (a)		1,625		1,634
Mosaic Solar Loan Trust,
2.05%, 12/20/46 (a)		1,450		1,433
2.10%, 4/20/46 (a)		332		336
Nationstar HECM Loan Trust,
1.27%, 9/25/30 (a)(b)		801		803
2.27%, 11/25/29 (a)(b)		100		100
Navient Private Education Refi Loan Trust
0.94%, 7/15/69 (a)		1,750		1,750
New Residential Advance Receivables Trust Advance Receivables Backed Notes
1.43%, 8/15/53 (a)		1,170		1,174
1.03%, 12/16/52 (a)		470		470
Newday Funding Master Issuer PLC
SOFR + 1.10%, 1.15%, 3/15/29 (a)(b)		1,760		1,762
North Carolina State Education Assistance Authority
3 Month USD LIBOR + 0.80%, 1.02%, 7/25/25 (b)		45		45
NRZ Advance Receivables Trust,
1.32%, 10/15/52 (a)		675		678
1.48%, 9/15/53 (a)		1,380		1,385
NRZ Excess Spread-Collateralized Notes
2.98%, 3/25/26 (a)		1,675		1,675
NRZ FHT Excess LLC,
Class A
4.21%, 11/25/25 (a)		588		594
NYCTL Trust
2.19%, 11/10/32 (a)		388		391
Ocwen Master Advance Receivables Trust
1.28%, 8/15/52 (a)		1,150		1,154
Option One Mortgage Loan Trust Asset-Backed Certificates
1 Month USD LIBOR + 0.50%, 0.61%, 8/20/30 (b)		82		82
Oscar US Funding X LLC
3.18%, 5/10/23 (a)		793		805
Oscar US Funding XI LLC
2.49%, 8/10/22 (a)		56		56
Oxford Finance Funding LLC
3.10%, 2/15/28 (a)		350		362

	Face Amount (000)		Value (000)
PFS Financing Corp.,
0.97%, 2/15/26 (a)	$	960	$	965
1.27%, 6/15/25 (a)		3,640		3,692
2.23%, 10/15/24 (a)		1,160		1,191
2.86%, 4/15/24 (a)		230		236
3.19%, 4/17/23 (a)		300		301
3.52%, 10/15/23 (a)		162		165
Prosper Marketplace Issuance Trust
3.59%, 7/15/25 (a)		700		704
Raptor Aircraft Finance I LLC
4.21%, 8/23/44 (a)		797		759
RCO V Mortgage LLC
3.47%, 11/25/24 (a)		715		720
ReadyCap Lending Small Business Loan Trust,
Daily U.S. Prime Rate — 0.50%, 2.75%, 12/27/44 (a)(b)		226		216
Republic Finance Issuance Trust
2.47%, 11/20/30 (a)		500		510
3.43%, 11/22/27 (a)		800		812
S-Jets Ltd.
3.97%, 8/15/42 (a)		1,745		1,714
Santander Retail Auto Lease Trust
1.74%, 7/20/23 (a)		1,330		1,354
SFS Asset Securitization LLC
4.24%, 6/10/25 (a)		814		815
Small Business Lending Trust
2.85%, 7/15/26 (a)		61		61
Sofi Consumer Loan Program Trust
3.67%, 8/25/27 (a)		60		60
SPS Servicer Advance Receivables Trust
1.83%, 11/15/55 (a)		2,100		2,068
START Ireland
4.09%, 3/15/44 (a)		802		807
Start Ltd.
4.09%, 5/15/43 (a)		1,677		1,663
TLF National Tax Lien Trust
3.09%, 12/15/29 (a)		24		24
Towd Point Mortgage Trust,
1 Month USD LIBOR + 0.60%, 0.72%, 2/25/57 (a)(b)		196		196
1.75%, 10/25/60 (a)		865		879
2.75%, 4/25/57 (a)(b)		64		65
Upstart Securitization Trust
3.73%, 9/20/29 (a)		850		867
VCAT LLC
3.67%, 8/25/50 (a)		528		533
Vericrest Opportunity Loan Trust
2.98%, 2/25/50 (a)		571		573
Verizon Owner Trust,
0.41%, 4/21/25		2,720		2,722
0.47%, 2/20/25		950		953
2.93%, 9/20/23		600		608
Volkswagen Auto Lease Trust
1.99%, 11/21/22		1,280		1,295
				81,134

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (0.2%)
Federal Home Loan Mortgage Corporation,
REMIC
7.50%, 9/15/29	$	283	$	330
Government National Mortgage Association,
REMIC
1 Month USD LIBOR + 0.50%, 0.62%, 3/20/61 (b)		110		110
1 Month USD LIBOR + 0.56%, 0.68%, 9/20/62 (b)		444		446
				886
Commercial Mortgage-Backed Securities (1.9%)
Alen 2021-ACEN Mortgage Trust
1 Month USD LIBOR + 1.15%, 1.26%, 4/15/34 (a)(b)		1,200		1,203
BAMLL Commercial Mortgage Securities Trust,
Class A
1 Month USD LIBOR + 2.75%, 2.86%, 11/15/30 (a)(b)		2,000		2,049
CSMC 2020-NET
3.53%, 8/15/37 (a)		575		596
CSMC 2020-TMIC,
Class A
1 Month USD LIBOR + 3.00%, 3.25%, 12/15/35 (a)(b)		2,125		2,150
CSWF 2018-TOP
1 Month USD LIBOR + 1.45%, 1.56%, 8/15/35 (a)(b)		640		640
HPLY Trust
1 Month USD LIBOR + 2.35%, 2.46%, 11/15/36 (a)(b)		407		405
Hudsons Bay Simon JV Trust
1 Month USD LIBOR + 1.83%, 1.93%, 8/5/34 (a)(b)		185		173
JP Morgan Chase Commercial Mortgage Securities Corp.
4.13%, 7/5/31 (a)		1,100		1,175
Natixis Commercial Mortgage Securities Trust
1 Month USD LIBOR + 2.20%, 2.31%, 7/15/36 (a)(b)		850		853
				9,244
Corporate Bonds (62.6%)
Energy (0.1%)
Midwest Connector Capital Co. LLC
3.63%, 4/1/22 (a)		475		482
Finance (28.3%)
Aflac, Inc.
1.13%, 3/15/26		2,200		2,184
Air Lease Corp.
2.63%, 7/1/22		1,440		1,472
American International Group, Inc.
4.88%, 6/1/22		2,200		2,311
American Tower Corp.
2.40%, 3/15/25		600		626

	Face Amount (000)		Value (000)
Anthem, Inc.
3.50%, 8/15/24	$	1,200	$	1,298
ANZ New Zealand International Ltd.
1.90%, 2/13/23 (a)		1,510		1,551
Aon Corp.
2.20%, 11/15/22		575		591
Avolon Holdings Funding Ltd.
2.88%, 2/15/25 (a)		625		623
Banco Bilbao Vizcaya Argentaria SA
0.88%, 9/18/23		1,600		1,605
Banco Santander Chile
2.70%, 1/10/25 (a)		800		838
Banco Santander SA
3.85%, 4/12/23		2,200		2,341
Bank of America Corp.,
0.98%, 9/25/25		1,275		1,273
3.88%, 8/1/25		1,700		1,879
4.13%, 1/22/24		2,000		2,187
MTN
0.81%, 10/24/24		1,820		1,825
3.86%, 7/23/24		1,990		2,132
Bank of New York Mellon Corp. (The)
0.75%, 1/28/26		2,040		2,001
Banque Federative du Credit Mutuel SA
2.38%, 11/21/24 (a)		3,480		3,654
Barclays PLC
4.61%, 2/15/23		1,200		1,240
BNP Paribas SA
3.50%, 3/1/23 (a)		1,250		1,319
BPCE SA,
2.38%, 1/14/25 (a)		625		646
4.00%, 9/12/23 (a)		2,850		3,074
Canadian Imperial Bank of Commerce,
2.25%, 1/28/25		1,130		1,173
3.10%, 4/2/24		2,270		2,419
Capital One Financial Corp.
3.20%, 1/30/23		2,500		2,619
Citigroup, Inc.,
0.78%, 10/30/24		2,400		2,399
1.68%, 5/15/24		3,180		3,246
3.30%, 4/27/25		2,000		2,156
3.35%, 4/24/25		1,540		1,649
Cooperatieve Rabobank UA
3.95%, 11/9/22		1,340		1,411
Credit Suisse AG
1.00%, 5/5/23		2,360		2,374
DBS Group Holdings Ltd.
2.85%, 4/16/22 (a)		360		369
Equitable Financial Life Global Funding
1.40%, 7/7/25 (a)		1,000		1,000
GA Global Funding Trust
1.63%, 1/15/26 (a)		2,220		2,219
Goldman Sachs Group, Inc. (The),
3.50%, 1/23/25 - 4/1/25		2,950		3,191
Series VAR
0.63%, 11/17/23		1,750		1,751

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Guardian Life Global Funding
0.88%, 12/10/25 (a)	$	2,450	$	2,400
HSBC Holdings PLC,
3.03%, 11/22/23		1,830		1,904
3.95%, 5/18/24		2,240		2,391
Intercontinental Exchange, Inc.
0.70%, 6/15/23		1,420		1,425
JPMorgan Chase & Co.,
3.13%, 1/23/25		1,550		1,661
3.63%, 5/13/24		1,170		1,276
4.02%, 12/5/24		6,190		6,718
LeasePlan Corp.
2.88%, 10/24/24 (a)		1,275		1,342
Lloyds Banking Group PLC,
0.70%, 5/11/24		2,950		2,950
1.33%, 6/15/23		2,575		2,600
Macquarie Bank Ltd.
2.30%, 1/22/25 (a)		3,475		3,602
Metropolitan Life Global Funding I
0.95%, 7/2/25 (a)		1,275		1,262
National Bank of Canada,
0.90%, 8/15/23		1,810		1,819
2.10%, 2/1/23		1,485		1,527
National Securities Clearing Corp
0.75%, 12/7/25 (a)		4,300		4,199
1.20%, 4/23/23 (a)		710		721
Nationwide Building Society,
2.00%, 1/27/23 (a)		2,030		2,088
3.62%, 4/26/23 (a)		1,600		1,651
New York Life Global Funding
1.10%, 5/5/23 (a)		280		284
NongHyup Bank
1.25%, 7/20/25 (a)		690		687
Nordea Bank Abp
1.00%, 6/9/23 (a)		1,450		1,466
NTT Finance Corp.
1.16%, 4/3/26 (a)		2,650		2,617
People's United Financial, Inc.
3.65%, 12/6/22		1,660		1,731
Principal Life Global Funding II
0.50%, 1/8/24 (a)		2,740		2,735
Protective Life Global Funding
3.10%, 4/15/24 (a)		1,225		1,308
Royal Bank of Canada
2.55%, 7/16/24		1,275		1,345
Santander UK Group Holdings PLC
4.80%, 11/15/24		1,200		1,321
Santander UK PLC
2.10%, 1/13/23		868		892
Societe Generale SA
2.63%, 1/22/25 (a)		1,175		1,219
Standard Chartered PLC,
0.99%, 1/12/25 (a)		3,295		3,279
2.74%, 9/10/22 (a)		1,775		1,791

	Face Amount (000)		Value (000)
Sumitomo Mitsui Financial Group, Inc.,
0.51%, 1/12/24	$	730	$	727
2.35%, 1/15/25		3,360		3,489
Sumitomo Mitsui Trust Bank Ltd.
0.80%, 9/12/23 (a)		2,350		2,358
Suncorp-Metway Ltd.
3.30%, 4/15/24 (a)		1,980		2,126
TD Ameritrade Holding Corp.
3.75%, 4/1/24		1,225		1,332
Truist Bank
2.15%, 12/6/24		1,525		1,597
Wells Fargo & Co.
1.65%, 6/2/24		650		664
				139,150
Industrials (28.9%)
7-Eleven, Inc.
0.80%, 2/10/24 (a)		3,160		3,151
AbbVie, Inc.
3.80%, 3/15/25		6,515		7,123
Alibaba Group Holding Ltd.
2.80%, 6/6/23		1,275		1,331
Alimentation Couche-Tard, Inc.
2.70%, 7/26/22 (a)		800		821
Altria Group, Inc.
2.35%, 5/6/25		1,500		1,556
American Honda Finance Corp.
1.00%, 9/10/25		1,200		1,182
Amgen, Inc.
1.90%, 2/21/25		1,350		1,396
Amphenol Corp.
2.05%, 3/1/25		1,250		1,291
Anheuser-Busch InBev Worldwide, Inc.
4.15%, 1/23/25		2,340		2,602
AT&T, Inc.
3.80%, 3/1/24		2,450		2,651
Bayer US Finance II LLC
3.50%, 6/25/21 (a)		330		331
Bayer US Finance LLC
3.38%, 10/8/24 (a)		1,000		1,079
Berry Global, Inc.
1.57%, 1/15/26 (a)		2,325		2,291
BMW Finance
2.40%, 8/14/24 (a)		1,895		1,988
BMW US Capital LLC
3.45%, 4/12/23 (a)		1,471		1,553
Boeing Co. (The),
1.17%, 2/4/23		1,050		1,064
4.88%, 5/1/25		1,200		1,337
BP Capital Markets America, Inc.
3.19%, 4/6/25		2,565		2,763
Canadian Natural Resources Ltd.
2.95%, 1/15/23		1,250		1,298
Caterpillar Financial Services Corp.
3.30%, 6/9/24		2,430		2,626

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
CC Holdings GS V LLC/Crown Castle GS III Corp.
3.85%, 4/15/23	$	1,225	$	1,305
Charter Communications Operating LLC/Charter Communications Operating Capital
4.91%, 7/23/25		850		964
Chevron Corp.
1.55%, 5/11/25		1,900		1,940
Cigna Corp.,
1.25%, 3/15/26		3,050		3,013
3.75%, 7/15/23		658		704
Citrix Systems, Inc.
1.25%, 3/1/26		1,100		1,082
Cummins, Inc.
0.75%, 9/1/25		1,500		1,477
Daimler Finance North America LLC,
0.75%, 3/1/24 (a)		1,710		1,703
3.30%, 5/19/25 (a)		2,510		2,696
3.35%, 2/22/23 (a)		520		546
Dell International LLC/EMC Corp.
5.45%, 6/15/23 (a)		1,960		2,143
Deutsche Telekom International Finance BV
1.95%, 9/19/21 (a)		1,260		1,267
DuPont de Nemours, Inc.
4.49%, 11/15/25		875		990
Eastern Energy Gas Holdings LLC
3.55%, 11/1/23		2,050		2,182
Enbridge, Inc.
2.50%, 1/15/25		750		783
Enterprise Products Operating LLC
3.90%, 2/15/24		1,200		1,301
Fortune Brands Home & Security, Inc.
4.00%, 9/21/23		1,150		1,242
Fox Corp.
4.03%, 1/25/24		1,200		1,304
General Motors Financial Co., Inc.
3.95%, 4/13/24		1,250		1,346
Georgia-Pacific LLC
1.75%, 9/30/25 (a)		4,080		4,154
Glencore Funding LLC,
3.00%, 10/27/22 (a)		1,275		1,317
4.13%, 3/12/24 (a)		1,225		1,328
Global Payments, Inc.
2.65%, 2/15/25		2,120		2,229
HCA, Inc.
5.00%, 3/15/24		1,600		1,781
Hyundai Capital America,
1.25%, 9/18/23 (a)		1,380		1,391
1.30%, 1/8/26 (a)		1,900		1,859
2.38%, 2/10/23 (a)		590		606
2.85%, 11/1/22 (a)		800		825
3.95%, 2/1/22 (a)		1,270		1,304
Imperial Brands Finance PLC
3.13%, 7/26/24 (a)		2,015		2,131

	Face Amount (000)		Value (000)
Juniper Networks, Inc.
1.20%, 12/10/25	$	575	$	566
Las Vegas Sands Corp.
3.20%, 8/8/24		1,250		1,304
Lowe's Cos., Inc.
3.13%, 9/15/24		1,230		1,321
Meituan
2.13%, 10/28/25 (a)		770		767
Mondelez International Holdings Netherlands BV
2.25%, 9/19/24 (a)		950		994
Nissan Motor Co. Ltd.
3.04%, 9/15/23 (a)		1,750		1,832
Nucor Corp.
2.00%, 6/1/25		975		1,001
Nutrition & Biosciences, Inc.
1.23%, 10/1/25 (a)		2,250		2,213
NXP BV/NXP Funding LLC/NXP USA, Inc.
2.70%, 5/1/25 (a)		1,540		1,616
PayPal Holdings, Inc.
1.65%, 6/1/25		1,150		1,172
Pioneer Natural Resources Co.
1.13%, 1/15/26		4,490		4,412
Royalty Pharma PLC
1.20%, 9/2/25 (a)		1,475		1,446
Sabine Pass Liquefaction LLC
5.63%, 4/15/23		1,320		1,432
Seven & i Holdings Co., Ltd.
3.35%, 9/17/21 (a)		1,750		1,772
Siemens Financieringsmaatschappij N.V.,
0.65%, 3/11/24 (a)		4,880		4,880
3.25%, 5/27/25 (a)		1,500		1,626
Silgan Holdings, Inc.
1.40%, 4/1/26 (a)		1,875		1,838
Sky Ltd.
3.75%, 9/16/24 (a)		2,330		2,561
Takeda Pharmaceutical Co., Ltd.
4.40%, 11/26/23		1,775		1,942
Toyota Motor Corp.
1.34%, 3/25/26		2,300		2,296
TSMC Global Ltd.
0.75%, 9/28/25 (a)		1,575		1,539
Union Pacific Corp.
3.50%, 6/8/23		1,225		1,301
Verizon Communications, Inc.,
0.85%, 11/20/25		2,235		2,189
1.45%, 3/20/26		5,890		5,893
Volkswagen Group of America Finance LLC
2.70%, 9/26/22 (a)		3,230		3,336
Walt Disney Co. (The)
1.75%, 8/30/24		2,150		2,221
Waste Management, Inc.
0.75%, 11/15/25		1,150		1,126
Williams Cos., Inc. (The)
4.30%, 3/4/24		1,330		1,449
				142,392

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Utilities (5.3%)
Ameren Corp.
2.50%, 9/15/24	$	2,510	$	2,641
American Electric Power Co., Inc.,
Series N
1.00%, 11/1/25		1,500		1,471
CenterPoint Energy, Inc.
2.50%, 9/1/24		2,500		2,623
Dominion Energy, Inc.,
Series A
1.45%, 4/15/26 (c)		2,355		2,348
DTE Energy Co.
0.55%, 11/1/22		1,710		1,711
2.25%, 11/1/22		1,800		1,847
Enel Finance International N.V.
4.63%, 9/14/25 (a)		3,130		3,547
NextEra Energy Capital Holdings, Inc.
2.40%, 9/1/21		1,550		1,563
NiSource, Inc.
0.95%, 8/15/25		1,550		1,522
Southern Co. (The),
2.95%, 7/1/23		1,260		1,320
Series 21-A
0.60%, 2/26/24		2,700		2,685
WEC Energy Group, Inc.
0.55%, 9/15/23		2,840		2,836
				26,114
				308,138
Mortgages — Other (11.6%)
Ajax Mortgage Loan Trust
1.07%, 9/25/65 (a)(b)		1,235		1,227
Angel Oak Mortgage Trust LLC
2.07%, 5/25/50 (a)(b)		1,277		1,281
BRAVO Residential Funding Trust
2.00%, 5/25/59 (a)(b)		1,006		1,023
Brean Asset Backed Securities Trust
1.40%, 10/25/63 (a)(b)		2,400		2,288
Bunker Hill Loan Depositary Trust
1.72%, 2/25/55 (a)(b)		726		738
Cascade Funding Mortgage Trust,
2.80%, 6/25/69 (a)(b)		586		600
4.00%, 10/25/68 (a)(b)		477		498
CFMT 2020-ABC1 LLC
1.94%, 9/25/50 (a)(b)		1,725		1,707
CFMT 2021-HB5 LLC
1.37%, 2/25/31 (a)(b)		1,600		1,594
CHL Mortgage Pass-Through Trust
5.50%, 5/25/34		76		76
CIM Trust,
2.57%, 7/25/59 (a)		1,718		1,719
3.00%, 4/25/57 (a)(b)		275		280

	Face Amount (000)		Value (000)
CSMC 2021-NQM2
1.18%, 2/25/66 (a)(b)	$	1,748	$	1,748
Federal Home Loan Mortgage Corporation
1 Month USD LIBOR + 1.20%, 1.31%, 10/25/29 (b)		44		44
FMC GMSR Issuer Trust,
4.23%, 9/25/24 (a)(b)		900		900
4.45%, 1/25/26 (a)(b)		1,500		1,493
5.07%, 5/25/24 (a)(b)		1,700		1,712
Galton Funding Mortgage Trust,
3.50%, 11/25/57 (a)(b)		95		95
4.00%, 2/25/59 (a)(b)		47		47
Gosforth Funding PLC
3 Month USD LIBOR + 0.45%, 0.64%, 8/25/60 (a)(b)		129		129
Government National Mortgage Association,
1 Month USD LIBOR + 0.28%, 0.40%, 5/20/63 (b)		8		8
1 Month USD LIBOR + 0.45%, 0.57%, 5/20/62 (b)		1		1
1 Month USD LIBOR + 0.60%, 0.72%, 1/20/64 (b)		144		145
Headlands Residential LLC
3.97%, 6/25/24 (a)		200		201
Homeward Opportunities Fund Trust
3.23%, 8/25/25 (a)		1,200		1,203
Imperial Fund Mortgage Trust
1.38%, 10/25/55 (a)(b)		1,083		1,087
Lanark Master Issuer PLC,
3 Month USD LIBOR + 0.77%, 0.95%, 12/22/69 (a)(b)		290		291
2.28%, 12/22/69 (a)(b)		360		370
Legacy Mortgage Asset Trust
3.25%, 2/25/60 (a)		1,539		1,558
LHOME Mortgage Trust,
2.09%, 9/25/26 (a)(b)		700		700
3.23%, 10/25/24 (a)		235		237
Mello Warehouse Securitization Trust,
1 Month USD LIBOR + 0.70%, 0.81%, 2/25/55 (a)(b)		960		961
1 Month USD LIBOR + 0.80%, 0.91%, 11/25/53 (a)(b)		840		842
1 Month USD LIBOR + 0.90%, 1.01%, 10/25/53 (a)(b)		1,440		1,442
New Residential Mortgage Loan Trust
3.23%, 8/25/60 (a)		180		182
3.75%, 5/28/52 - 8/25/55(a)(b)		195		207
4.00%, 9/25/57 (a)(b)		393		416
NRPL Trust
4.25%, 7/25/67 (a)		513		517
NYMT Loan Trust,
2.94%, 10/25/60 (a)(b)		754		758
3.96%, 6/25/25 (a)		1,544		1,552
OBX Trust
4.00%, 7/25/58 (a)(b)		174		176

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
Oceanview Mortgage Loan Trust
1.73%, 5/28/50 (a)(b)	$	662	$	667
Pepper Residential Securities Trust,
1 Month USD LIBOR + 0.88%, 0.99%, 1/16/60 (a)(b)		176		176
1 Month USD LIBOR + 0.93%, 1.04%, 3/12/61 (a)(b)		422		421
1 Month USD LIBOR + 0.95%, 1.06%, 8/18/60 (a)(b)		190		190
1 Month USD LIBOR + 1.00%, 1.11%, 6/20/60 (a)(b)		192		192
Preston Ridge Partners LLC,
2.86%, 9/25/25 (a)		1,083		1,092
3.10%, 11/25/25 (a)		1,317		1,327
Pretium Mortgage Credit Partners I LLC
2.24%, 9/27/60 (a)		925		925
Provident Funding Mortgage Warehouse Securitization Trust
1 Month USD LIBOR + 0.70%, 0.81%, 2/25/55 (a)(b)		2,175		2,175
PRPM LLC,
2.12%, 1/25/26 - 3/25/26 (a)(b)		1,795		1,796
3.50%, 10/25/24 (a)(b)		648		654
RESIMAC,
Series 19-2A
1 Month USD LIBOR + 0.95%, 1.06%, 2/10/51 (a)(b)		413		413
RESIMAC Bastille Trust,
1 Month USD LIBOR + 0.85%, 0.95%, 12/5/59 (a)(b)		160		160
1 Month USD LIBOR + 0.93%, 1.03%, 9/5/57 (a)(b)		285		285
RMF Buyout Issuance Trust,
1.71%, 6/25/30 (a)(b)		541		543
1.72%, 10/25/50 (a)(b)		1,375		1,371
2.16%, 2/25/30 (a)(b)		1,260		1,264
Seasoned Credit Risk Transfer Trust
3.00%, 2/25/59		762		808
Sequoia Mortgage Trust
1 Month USD LIBOR + 0.62%, 0.73%, 8/20/34 (b)		147		147
Silver Hill Trust
3.10%, 11/25/49 (a)(b)		1,006		1,042
Station Place Securitization Trust
1 Month USD LIBOR + 0.65%, 0.76%, 1/26/54 (a)(b)		1,610		1,612
Towd Point HE Trust
0.92%, 2/25/63 (a)(b)		2,750		2,752
TVC Mortgage Trust
3.47%, 9/25/24 (a)		300		302
Vista Point Securitization Trust
1.76%, 3/25/65 (a)(b)		848		859
VOLT XCIII LLC
1.89%, 2/27/51 (a)		1,197		1,192

	Face Amount (000)		Value (000)
VOLT XCIV LLC
2.24%, 2/27/51 (a)	$	1,429	$	1,429
VOLT XCVI LLC
2.12%, 3/27/51 (a)		1,361		1,361
				57,208
Sovereign (1.0%)
Corp. Andina de Fomento,
1.63%, 9/23/25		1,750		1,753
2.38%, 5/12/23		1,170		1,209
Korea Development Bank (The)
3.00%, 3/19/22		410		420
Korea National Oil Corp.
0.88%, 10/5/25 (a)		1,680		1,647
				5,029
Total Fixed Income Securities (Cost $461,846)				463,682
Investment Company (2.7%)
iShares Short-Term Corporate Bond ETF (Cost $13,471)		245,000		13,397
	Shares
Short-Term Investments (1.2%)
Investment Company (0.5%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $2,375)		2,375,409		2,375
	Face Amount (000)
U.S. Treasury Security (0.3%)
U.S. Treasury Bill 0.09%, 6/3/21 (d) (Cost $1,350)	$	1,350		1,350
Corporate Bond (0.4%)
Industrial (0.4%)
General Motors Financial Co., Inc.
4.20%, 11/6/21 (Cost $2,041)		2,000		2,043
Total Short-Term Investments (Cost $5,766)				5,768
Total Investments (98.1%) (Cost $481,083) (e)(f)				482,847
Other Assets in Excess of Liabilities (1.9%)				9,547
Net Assets (100.0%)			$	492,394

(a)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(c)  When-issued security.

(d)  Rate shown is the yield to maturity at March 31, 2021.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

(e)  Securities are available for collateral in connection with purchase of when-issued securities and futures contracts.

(f)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $5,651,000 and the aggregate gross unrealized depreciation is approximately $2,116,000, resulting in net unrealized appreciation of approximately $3,535,000.

@  Face Amount/Value is less than $500.

CMT  Constant Maturity Treasury Note Rate.

ETF  Exchange Traded Fund.

LIBOR  London Interbank Offered Rate.

MTN  Medium Term Note.

REMIC  Real Estate Mortgage Investment Conduit.

SOFR  Secured Overnight Financing Rate.

USD  United States Dollar.

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2021:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note (United States)		595	Jun-21	$	119,000		$	131,332		$	(88	)
Short:
U.S. Treasury 5 yr. Note (United States)		1,300	Jun-21		(130,000	)		(160,418	)		1,859
										$	1,771

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		29.5	%
Finance		28.8
Asset-Backed Securities		16.8
Mortgages — Other		11.9
Other*		7.6
Utilities		5.4
Total Investments		100.0	%**

*  Industries and/or investment types representing less than 5% of total investments.

**  Does not include open long/short futures contracts with a value of approximately $291,750,000 and net unrealized appreciation of approximately $1,771,000.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $478,708)	$	480,472
Investment in Security of Affiliated Issuer, at Value (Cost $2,375)		2,375
Total Investments in Securities, at Value (Cost $481,083)		482,847
Foreign Currency, at Value (Cost —@)		—	@
Cash		—	@
Receivable for Fund Shares Sold		11,688
Receivable for Investments Sold		2,211
Interest and Paydown Receivable		1,856
Receivable for Variation Margin on Futures Contracts		185
Receivable from Affiliate		—	@
Other Assets		134
Total Assets		498,921
Liabilities:
Payable for Investments Purchased		4,079
Payable for Fund Shares Redeemed		2,126
Payable for Advisory Fees		74
Payable for Professional Fees		58
Payable for Shareholder Services Fees — Class A		48
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Trustees' Fees and Expenses		40
Payable for Administration Fees		33
Payable for Sub Transfer Agency Fees — Class I		15
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Custodian Fees		8
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		42
Total Liabilities		6,527
Net Assets	$	492,394
Net Assets Consist of:
Paid-in-Capital	$	490,945
Total Distributable Earnings		1,449
Net Assets	$	492,394

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2021 (000)
CLASS I:
Net Assets	$	252,010
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		30,239,574
Net Asset Value, Offering and Redemption Price Per Share	$	8.33
CLASS A:
Net Assets	$	238,253
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		28,513,636
Net Asset Value, Redemption Price Per Share	$	8.36
Maximum Sales Load		2.00	%
Maximum Sales Charge	$	0.17
Maximum Offering Price Per Share	$	8.53
CLASS L:
Net Assets	$	907
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		108,892
Net Asset Value, Offering and Redemption Price Per Share	$	8.33
CLASS C:
Net Assets	$	1,213
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		146,126
Net Asset Value, Offering and Redemption Price Per Share	$	8.30
CLASS IS:
Net Assets	$	11
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,365
Net Asset Value, Offering and Redemption Price Per Share	$	8.34

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Short Duration Income Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	3,513
Dividends from Securities of Unaffiliated Issuers		130
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		3,644
Expenses:
Advisory Fees (Note B)		442
Shareholder Services Fees — Class A (Note D)		235
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		2
Administration Fees (Note C)		177
Sub Transfer Agency Fees — Class I		83
Sub Transfer Agency Fees — Class A		45
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Professional Fees		77
Registration Fees		48
Shareholder Reporting Fees		26
Pricing Fees		19
Custodian Fees (Note F)		11
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		5
Other Expenses		14
Total Expenses		1,193
Waiver of Advisory Fees (Note B)		(264	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(22	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(4	)
Net Expenses		899
Net Investment Income		2,745
Realized Gain:
Investments Sold		1,478
Futures Contracts		590
Net Realized Gain		2,068
Change in Unrealized Appreciation (Depreciation):
Investments		(3,073	)
Foreign Currency Translation		—	@
Futures Contracts		1,874
Net Change in Unrealized Appreciation (Depreciation)		(1,199	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		869
Net Increase in Net Assets Resulting from Operations	$	3,614

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Short Duration Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,745		$	5,405
Net Realized Gain (Loss)		2,068			(1,856	)
Net Change in Unrealized Appreciation (Depreciation)		(1,199	)		3,306
Net Increase in Net Assets Resulting from Operations		3,614			6,855
Dividends and Distributions to Shareholders:
Class I		(1,787	)		(4,012	)
Class A		(1,072	)		(1,778	)
Class L		(4	)		(15	)
Class C		(1	)		(—-	@)
Class IS		(—-	@)		(1	)
Total Dividends and Distributions to Shareholders		(2,864	)		(5,806	)
Capital Share Transactions:(1)
Class I:
Subscribed		114,697			159,179
Distributions Reinvested		1,713			3,802
Redeemed		(98,728	)		(104,693	)
Class A:
Subscribed		139,244			92,883
Distributions Reinvested		1,070			1,770
Redeemed		(51,070	)		(29,414	)
Class L:
Exchanged		103			44
Distributions Reinvested		4			15
Redeemed		(31	)		(32	)
Class C:
Subscribed		1,306			—
Distributions Reinvested		1			—	@
Redeemed		(129	)		—
Class IS:
Subscribed		—	@		35
Distributions Reinvested		—	@		1
Redeemed		(3	)		(39	)
Net Increase in Net Assets Resulting from Capital Share Transactions		108,177			123,551
Total Increase in Net Assets		108,927			124,600
Net Assets:
Beginning of Period		383,467			258,867
End of Period	$	492,394		$	383,467

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Short Duration Income Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		13,752			19,301
Shares Issued on Distributions Reinvested		206			463
Shares Redeemed		(11,840	)		(12,867	)
Net Increase in Class I Shares Outstanding		2,118			6,897
Class A:
Shares Subscribed		16,645			11,183
Shares Issued on Distributions Reinvested		128			215
Shares Redeemed		(6,105	)		(3,611	)
Net Increase in Class A Shares Outstanding		10,668			7,787
Class L:
Shares Exchanged		13			5
Shares Issued on Distributions Reinvested		—	@@		2
Shares Redeemed		(4	)		(4	)
Net Increase in Class L Shares Outstanding		9			3
Class C:
Shares Subscribed		157			—	@@
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(15	)		—
Net Increase in Class C Shares Outstanding		142			—	@@
Class IS:
Shares Subscribed		—	@@		5
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(—	@@)		(5	)
Net Decrease in Class IS Shares Outstanding		(—	@@)		(—	@@)

@  Amount is less than $500.

@@  Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Short Duration Income Portfolio

	Class I
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	8.31		$	8.24		$	8.13		$	8.15		$	8.12		$	7.71
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.06			0.17			0.21			0.17			0.16			0.15
Net Realized and Unrealized Gain (Loss)		0.02			0.09			0.10			(0.03	)		0.02			0.41
Total from Investment Operations		0.08			0.26			0.31			0.14			0.18			0.56
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.19	)		(0.20	)		(0.16	)		(0.15	)		(0.15	)
Net Asset Value, End of Period	$	8.33		$	8.31		$	8.24		$	8.13		$	8.15		$	8.12
Total Return(3)		0.95	%(11)		3.20	%		3.93	%(4)		1.79	%(5)		2.29	%(6)		7.43	%(7)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	252,010		$	233,816		$	174,909		$	118,810		$	103,131		$	98,603
Ratio of Expenses Before Expense Limitation		0.44	%(12)		0.53	%		0.49	%		0.50	%		0.53	%		0.65	%
Ratio of Expenses After Expense Limitation		0.30	%(8)(12)		0.29	%(8)		0.30	%(8)		0.28	%(8)		0.30	%(8)		0.36	%(8)(9)
Ratio of Net Investment Income		1.35	%(8)(12)		2.12	%(8)		2.55	%(8)		2.13	%(8)		1.92	%(8)		1.97	%(8)(9)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(10)(12)		0.01	%		0.00	%(10)		0.00	%(10)		0.00	%(10)		0.00	%(10)
Portfolio Turnover Rate		31	%(11)		74	%		64	%		40	%		43	%		66	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.13% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 I shares would have been approximately 3.80%.

(5)  Performance was positively impacted by approximately 0.25% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 1.54%.

(6)  Performance was positively impacted by approximately 0.51% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 I shares would have been approximately 1.78%.

(7)  Performance was positively impacted by approximately 5.97% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 1.46%.

(8)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(9)  Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.30% for Class I shares. Prior to January 11, 2016, the maximum ratio was 0.53% for Class I shares.

(10)  Amount is less than 0.005%.

(11)  Not annualized.

(12)  Annualized.

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Short Duration Income Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	8.34		$	8.26		$	8.15		$	8.17		$	8.13		$	7.72
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.05			0.15			0.19			0.15			0.14			0.14
Net Realized and Unrealized Gain (Loss)		0.02			0.10			0.10			(0.03	)		0.03			0.40
Total from Investment Operations		0.07			0.25			0.29			0.12			0.17			0.54
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.17	)		(0.18	)		(0.14	)		(0.13	)		(0.13	)
Net Asset Value, End of Period	$	8.36		$	8.34		$	8.26		$	8.15		$	8.17		$	8.13
Total Return(3)		0.84	%(11)		3.06	%		3.66	%(4)		1.51	%(5)		2.15	%(6)		7.15	%(7)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	238,253		$	148,771		$	83,111		$	68,517		$	82,157		$	66,821
Ratio of Expenses Before Expense Limitation		0.67	%(12)		0.77	%		0.76	%		0.80	%		0.80	%		0.80	%
Ratio of Expenses After Expense Limitation		0.55	%(8)(12)		0.54	%(8)		0.55	%(8)		0.55	%(8)		0.55	%(8)		0.52	%(8)(9)
Ratio of Net Investment Income		1.09	%(8)(12)		1.85	%(8)		2.30	%(8)		1.85	%(8)		1.66	%(8)		1.83	%(8)(9)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(10)(12)		0.01	%		0.00	%(10)		0.00	%(10)		0.00	%(10)		0.00	%(10)
Portfolio Turnover Rate		31	%(11)		74	%		64	%		40	%		43	%		66	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.13% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 A shares would have been approximately 3.53%.

(5)  Performance was positively impacted by approximately 0.25% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 1.26%.

(6)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 A shares would have been approximately 1.65%.

(7)  Performance was positively impacted by approximately 5.94% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 1.21%.

(8)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(9)  Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.55% for Class A shares. Prior to January 11, 2016, the maximum ratio was 0.88% for Class A shares.

(10)  Amount is less than 0.005%.

(11)  Not annualized.

(12)  Annualized.

The accompanying notes are an integral part of the financial statements.
18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Short Duration Income Portfolio

	Class L
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	8.31		$	8.24		$	8.12		$	8.15		$	8.11		$	7.70
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.04			0.13			0.17			0.13			0.11			0.11
Net Realized and Unrealized Gain (Loss)		0.02			0.09			0.11			(0.04	)		0.04			0.41
Total from Investment Operations		0.06			0.22			0.28			0.09			0.15			0.52
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.15	)		(0.16	)		(0.12	)		(0.11	)		(0.11	)
Net Asset Value, End of Period	$	8.33		$	8.31		$	8.24		$	8.12		$	8.15		$	8.11
Total Return(3)		0.71	%(11)		2.69	%		3.52	%(4)		1.14	%(5)		1.90	%(6)		6.79	%(7)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	907		$	829		$	795		$	382		$	410		$	403
Ratio of Expenses Before Expense Limitation		1.13	%(12)		1.26	%		1.25	%		1.52	%		1.70	%		1.83	%
Ratio of Expenses After Expense Limitation		0.80	%(8)(12)		0.79	%(8)		0.80	%(8)		0.80	%(8)		0.80	%(8)		0.92	%(8)(9)
Ratio of Net Investment Income		0.85	%(8)(12)		1.64	%(8)		2.07	%(8)		1.61	%(8)		1.41	%(8)		1.42	%(8)(9)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(10)(12)		0.01	%		0.00	%(10)		0.00	%(10)		0.00	%(10)		0.00	%(10)
Portfolio Turnover Rate		31	%(11)		74	%		64	%		40	%		43	%		66	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.13% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 L shares would have been approximately 3.39%.

(5)  Performance was positively impacted by approximately 0.25% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 0.89%.

(6)  Performance was positively impacted by approximately 0.51% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 L shares would have been approximately 1.39%.

(7)  Performance was positively impacted by approximately 5.92% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 0.87%.

(8)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(9)  Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.80% for Class L shares. Prior to January 11, 2016, the maximum ratio was1.23% for Class L shares.

(10)  Amount is less than 0.005%.

(11)  Not annualized.

(12)  Annualized.

The accompanying notes are an integral part of the financial statements.
19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Short Duration Income Portfolio

	Class C
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	8.29		$	8.22		$	8.10		$	8.13		$	8.09		$	7.69
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.01			0.09			0.13			0.09			0.07			0.07
Net Realized and Unrealized Gain (Loss)		0.02			0.09			0.11			(0.04	)		0.04			0.41
Total from Investment Operations		0.03			0.18			0.24			0.05			0.11			0.48
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		(0.11	)		(0.12	)		(0.08	)		(0.07	)		(0.08	)
Net Asset Value, End of Period	$	8.30		$	8.29		$	8.22		$	8.10		$	8.13		$	8.09
Total Return(3)		0.40	%(11)		2.16	%		3.01	%(4)		0.64	%(5)		1.34	%(6)		6.24	%(7)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,213		$	37		$	36		$	52		$	52		$	95
Ratio of Expenses Before Expense Limitation		1.86	%(12)		7.65	%		6.34	%		5.69	%		4.92	%		3.95	%
Ratio of Expenses After Expense Limitation		1.30	%(8)(12)		1.29	%(8)		1.30	%(8)		1.30	%(8)		1.30	%(8)		1.39	%(8)(9)
Ratio of Net Investment Income		0.30	%(8)(12)		1.14	%(8)		1.55	%(8)		1.11	%(8)		0.85	%(8)		0.93	%(8)(9)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(10)(12)		0.01	%		0.00	%(10)		0.00	%(10)		0.00	%(10)		0.00	%(10)
Portfolio Turnover Rate		31	%(11)		74	%		64	%		40	%		43	%		66	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.13% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 C shares would have been approximately 2.88%.

(5)  Performance was positively impacted by approximately 0.25% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 0.39%.

(6)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. 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 C shares would have been approximately 0.84%.

(7)  Performance was positively impacted by approximately 5.77% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 0.47%.

(8)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(9)  Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.30% for Class C shares. Prior to January 11, 2016, the maximum ratio was 1.63% for Class C shares.

(10)  Amount is less than 0.005%.

(11)  Not annualized.

(12)  Annualized.

The accompanying notes are an integral part of the financial statements.
20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Short Duration Income Portfolio

	Class IS
	Six Months Ended March 31, 2021			Year Ended September 30,												Period from January 11, 2016(2) to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			September 30, 2016(1)
Net Asset Value, Beginning of Period	$	8.32		$	8.24		$	8.13		$	8.15		$	8.11		$	7.65
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.06			0.18			0.21			0.18			0.16			0.17
Net Realized and Unrealized Gain (Loss)		0.02			0.09			0.11			(0.03	)		0.04			0.39
Total from Investment Operations		0.08			0.27			0.32			0.15			0.20			0.56
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.19	)		(0.21	)		(0.17	)		(0.16	)		(0.10	)
Net Asset Value, End of Period	$	8.34		$	8.32		$	8.24		$	8.13		$	8.15		$	8.11
Total Return(4)		0.98	%(11)		3.37	%		3.98	%(5)		1.83	%(6)		2.46	%(7)		7.42	%(8)(11)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	11		$	14		$	16		$	11		$	11		$	11
Ratio of Expenses Before Expense Limitation		18.99	%(12)		12.15	%		17.44	%		18.54	%		16.24	%		17.12	%(12)
Ratio of Expenses After Expense Limitation		0.25	%(9)(12)		0.24	%(9)		0.24	%(9)		0.25	%(9)		0.25	%(9)		0.25	%(9)(12)
Ratio of Net Investment Income		1.42	%(9)(12)		2.21	%(9)		2.61	%(9)		2.16	%(9)		1.96	%(9)		2.20	%(9)(12)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(10)(12)		0.01	%		0.00	%(10)		0.00	%(10)		0.00	%(10)		0.00	%(10)(12)
Portfolio Turnover Rate		31	%(11)		74	%		64	%		40	%		43	%		66	%(11)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Performance was positively impacted by approximately 0.13% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 IS shares would have been approximately 3.85%.

(6)  Performance was positively impacted by approximately 0.25% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class IS shares would have been approximately 1.58%.

(7)  Performance was positively impacted by approximately 0.51% due to the receipt of proceeds from the settlement of a class action suit involving the Fund's past holdings. 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 IS shares would have been approximately 1.95%.

(8)  Performance was positively impacted by approximately 5.96% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class IS shares would have been approximately 1.46%.

(9)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(10)  Amount is less than 0.005%.

(11)  Not annualized.

(12)  Annualized.

The accompanying notes are an integral part of the financial statements.
21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("Trust'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of thirteen separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Short Duration Income Portfolio. The Fund seeks above-average total return over a market cycle of three to five years. The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class IS.

The Fund has suspended offering Class L and Class C shares to all investors. Class L and Class C shareholders of the Fund do not have the option of purchasing additional Class L and Class C shares, respectively. However, existing Class L and Class C shareholders may invest in additional Class L and Class C shares through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Trust in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

In March 2020, the Financial Accounting Standards Board ("FASB") issued an Accounting Standard Update, ASU 2020-04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate ("LIBOR") and other Interbank Offered Rate ("IBOR") based reference rates at the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 on the Fund's investments, derivatives, debt and other

contracts that will undergo reference rate-related modifications as a result of the reference rate reform.

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the

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Notes to Financial Statements (cont'd)

NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (4) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

2.  Fair Value Measurement: FASB Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of

the Fund's investments. The inputs are summarized in the three broad levels listed below:

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgages	$	—	$	778	$	—	$	778
Agency Bonds — Consumer Discretionary (U.S. Government Guaranteed)		—		252		—		252
Agency Fixed Rate Mortgages		—		1,013		—		1,013
Asset-Backed Securities		—		81,134		—		81,134
Collateralized Mortgage Obligations — Agency Collateral Series		—		886		—		886
Commercial Mortgage-Backed Securities		—		9,244		—		9,244

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets (cont):
Corporate Bonds	$	—		$	308,138	$	—	$	308,138
Mortgages — Other		—			57,208		—		57,208
Sovereign		—			5,029		—		5,029
Total Fixed Income Securities		—			463,682		—		463,682
Investment Company		13,397			—		—		13,397
Short-Term Investments
Corporate Bond		—			2,043		—		2,043
Investment Company		2,375			—		—		2,375
U.S. Treasury Security		—			1,350		—		1,350
Total Short-Term Investments		2,375			3,393		—		5,768
Futures Contract		1,859			—		—		1,859
Total Assets		17,631			467,075		—		484,706
Liabilities:
Futures Contract		(88	)		—		—		(88	)
Total	$	17,543		$	467,075	$	—	$	484,618

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

3.  Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

–  investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

–  investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S.

federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Statement of Operations.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

4.  Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. Leverage associated with derivative transactions may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission ("SEC") rules and regulations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are

settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

FASB ASC 815, "Derivatives and Hedging" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2021:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure		Value (000)
Futures Contract	Variation Margin on Futures Contract		Interest Rate Risk	$	1,859	(a)
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure		Value (000)
Futures Contract	Variation Margin on Futures Contract		Interest Rate Risk	$	(88	)(a)

(a)  This amount represents the cumulative appreciation (depreciation) as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

contract for the six months ended March 31, 2021 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	590
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	1,874

For the six months ended March 31, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly notional value	$	229,077,000

5.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the 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.

6.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

7.  Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, if any, are distributed at least annually.

8.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.20% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.30% for Class I shares, 0.55% for Class A shares, 0.80% for Class L shares, 1.30% for Class C shares and 0.25% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as 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 March 31, 2021, approximately $264,000 of advisory fees were waived and approximately $26,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Company ("State Street"), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares.

The Trust has adopted a Distribution and Shareholder Services Plan with respect to Class C shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.75% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class A, Class L and Class C shares.

E. Dividend Disbursing and Transfer/Co-Transfer Agent: The Trust's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Trust pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.

Morgan Stanley Services Company Inc. serves as Co-Transfer Agent and provides certain transfer agency services to the Fund with respect to certain direct transactions with the Fund.

F. Custodian Fees: State Street (the "Custodian") also serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Trust as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $247,788,000 and $133,446,000, respectively. For the six months ended March 31, 2021, purchases and sales of long-term U.S. Government securities were less than $500 and approximately $584,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by approximately $4,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	9,160	$	141,117	$	147,902	$	1

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	2,375

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for

tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From: Ordinary Income (000)		2019 Distributions Paid From: Ordinary Income (000)
$	5,806	$	5,426

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, due to tax adjustments on callable bonds, resulted in the following reclassifications among the components of net assets at September 30, 2020:

Total Distributable Earnings (000)		Paid-in- Capital (000)
$	34	$	(34	)

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	694	$	—

At September 30, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $1,728,000 and $3,046,000, respectively,that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 77.5%.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

L. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions,

bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Trustees (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice   April 2021

FACTS	WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?	All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

To limit our sharing	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?	We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?	Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

Definitions

Investment Management Affiliates	MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates	Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates	Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing	A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

Frank L. Bowman
Kathleen A. Dennis
Nancy C. Everett
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia Maleski
W. Allen Reed, Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Co-Transfer Agent

Morgan Stanley Services Company, Inc.
522 Fifth Avenue
New York, New York 10036

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Trustees

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable fund of Morgan Stanley Institutional Fund Trust, which describes in detail the fund's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Fund, please visit our website at www.morganstanley.com/im/shareholderreports or call toll free 1 (800) 548-7786.

34

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTLDSAN
3565837 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Strategic Income Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	10
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Financial Statements	18
Liquidity Risk Management Program	28
U.S. Customer Privacy Notice	29
Trustee and Officer Information	32

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or statement of additional information ("SAI"), which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations and describes in detail each of the Fund's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access fund information including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Strategic Income Portfolio (the "Fund") performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Strategic Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Strategic Income Portfolio Class I	$	1,000.00	$	1,036.70	$	1,022.04	$	2.95	$	2.92		0.58	%
Strategic Income Portfolio Class A		1,000.00		1,035.40		1,020.19		4.82		4.78		0.95
Strategic Income Portfolio Class C		1,000.00		1,031.20		1,016.45		8.61		8.55		1.70
Strategic Income Portfolio Class IS		1,000.00		1,037.80		1,022.09		2.90		2.87		0.57

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (94.5%)
Asset-Backed Securities (27.2%)
Aegis Asset Backed Securities Trust Mortgage Pass-Through Certificates,
1 Month USD LIBOR + 1.73%, 1.83%, 10/25/34 (a)	$	39	$	39
American Homes 4 Rent Trust,
5.64%, 4/17/52 (b)		100		108
Ameriquest Mortgage Securities, Inc.,
1 Month USD LIBOR + 2.10%, 2.21%, 5/25/34 (a)		222		229
AMSR Trust,
3.87%, 1/19/39 (b)		200		202
Bayview Financial Revolving Asset Trust,
1 Month USD LIBOR + 0.93%, 1.05%, 2/28/40 (a)(b)		110		105
BCMSC Trust,
7.51%, 1/15/29 (a)		115		112
Cascade Funding Mortgage Trust,
3.40%, 4/25/30 (a)(b)		76		77
4.49%, 12/25/29 (a)(b)		205		204
CFMT 2020-HB3 LLC,
4.08%, 5/25/30 (a)(b)		200		202
CFMT 2020-HB4 LLC,
2.72%, 12/26/30 (a)(b)		100		100
Chase Funding Loan Acquisition Trust,
5.50%, 8/25/34		26		27
Conn's Receivables Funding LLC,
3.62%, 6/17/24 (b)		89		89
4.60%, 6/17/24 (b)		400		401
Credit-Based Asset Servicing & Securitization LLC,
1 Month USD LIBOR + 1.13%, 1.23%, 2/25/33 (a)		59		58
1 Month USD LIBOR + 1.46%, 1.56%, 5/25/32 (a)		25		26
DT Auto Owner Trust,
5.33%, 11/17/25 (b)		100		105
ECAF I Ltd.,
4.95%, 6/15/40 (b)		235		222
EquiFirst Mortgage Loan Trust,
1 Month USD LIBOR + 2.18%, 2.28%, 10/25/34 (a)		44		45
European Residential Loan Securitisation,
1.45%, 7/24/54	EUR	165		192
Falcon Aerospace Ltd.,
3.60%, 9/15/39 (b)	$	182		184
Finance of America HECM Buyout,
3.09%, 7/25/30 (a)(b)		100		101
Financial Asset Securities Corp.,
1 Month USD LIBOR + 0.38%, 0.50%, 2/27/35 (a)(b)		18		18
FREED ABS Trust,
3.19%, 11/18/26 (b)		100		102

	Face Amount (000)		Value (000)
Goodgreen Trust,
2.63%, 4/15/55 (b)	$	189	$	195
GSAA Home Equity Trust,
6.00%, 11/25/36		21		12
GSAMP Trust,
1 Month USD LIBOR + 0.48%, 0.59%, 3/25/46 (a)		94		94
Home Partners of America Trust,
3.60%, 9/17/39 (b)		94		95
Loanpal Solar Loan 2020-2 Ltd.,
2.75%, 7/20/47 (b)		180		183
Loanpal Solar Loan 2021-1 Ltd.,
2.29%, 1/20/48 (b)		189		189
Loanpal Solar Loan Ltd.,
2.47%, 12/20/47 (b)		188		189
MACH 1 Cayman Ltd.,
3.47%, 10/15/39 (b)		209		211
Mosaic Solar Loan Trust,
2.10%, 4/20/46 (b)		166		168
New Residential Mortgage LLC,
5.44%, 6/25/25 (b)		327		336
Newday Funding PLC,
1 Month GBP LIBOR + 2.40%, 2.45%, 9/15/27 (a)(b)	GBP	100		138
Newtek Small Business Loan Trust,
Daily U.S. Prime Rate — 0.55%, 2.70%, 2/25/44 (a)(b)	$	128		125
Ownit Mortgage Loan Trust,
1 Month USD LIBOR + 0.54%, 0.65%, 3/25/37 (a)		42		41
PNMAC GMSR Issuer Trust,
1 Month USD LIBOR + 2.65%, 2.76%, 8/25/25 (a)(b)		300		299
1 Month USD LIBOR + 2.85%, 2.96%, 2/25/23 (a)(b)		250		250
1 Month USD LIBOR + 3.00%, 3.12%, 3/25/26 (a)(b)		250		250
Prosper Marketplace Issuance Trust,
5.50%, 10/15/24 (b)		60		60
ReadyCap Lending Small Business Loan Trust,
Daily U.S. Prime Rate — 0.50%, 2.75%, 12/27/44 (a)(b)		75		72
Republic FInance Issuance Trust,
3.93%, 11/22/27 (b)		100		102
SFS Asset Securitization LLC,
4.24%, 6/10/25 (b)		153		153
SLM Student Loan Trust,
3 Month EURIBOR + 0.55%, 0.01%, 1/25/40 (a)	EUR	300		331
Small Business Origination Loan Trust,
3.85%, 12/15/27	GBP	72		95
Sprite Ltd.,
4.25%, 12/15/37 (b)	$	161		163

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
Stanwich Mortgage Loan Trust,
3.48%, 11/16/24 (b)	$	193	$	195
START Ireland,
4.09%, 3/15/44 (b)		154		155
Tricon American Homes Trust,
5.10%, 1/17/36 (b)		200		207
Truman Capital Mortgage Loan Trust,
1 Month USD LIBOR + 2.55%, 2.66%, 1/25/34 (a)(b)		29		29
1 Month USD LIBOR + 2.78%, 2.88%, 11/25/31 (a)(b)		34		34
				7,319
Collateralized Mortgage Obligation — Agency Collateral Series (0.0%)
Government National Mortgage Association, IO
0.77%, 8/20/58 (a)		285		6
Commercial Mortgage-Backed Securities (4.4%)
GS Mortgage Securities Corp. Trust,
1 Month USD LIBOR + 2.20%, 2.31%, 10/15/36 (a)(b)		100		98
GS Mortgage Securities Trust,
4.32%, 2/10/48 (a)(b)		100		99
4.69%, 6/10/47 (a)		50		53
MFT Trust,
3.28%, 8/10/40 (a)(b)		180		182
3.48%, 2/10/42 (a)(b)		250		232
MKT 2020-525M Mortgage Trust,
2.94%, 2/12/40 (a)(b)		250		222
Multifamily Connecticut Avenue Securities Trust,
1 Month USD LIBOR + 1.70%, 1.81%, 10/15/49 (a)(b)		87		87
Natixis Commercial Mortgage Securities Trust,
4.30%, 10/15/36 (b)		150		143
Wells Fargo Commercial Mortgage Trust,
4.15%, 5/15/48 (a)		75		77
				1,193
Corporate Bonds (44.1%)
Communications (0.2%)
TEGNA, Inc.,
4.63%, 3/15/28		45		46
Finance (23.7%)
ABN Amro Bank N.V.,
4.75%, 7/28/25 (b)		200		224
Aon Corp.,
2.20%, 11/15/22		50		51
Avolon Holdings Funding Ltd.,
2.88%, 2/15/25 (b)		50		50
Bank of America Corp.,
2.46%, 10/22/25		250		262
3.25%, 10/21/27		350		377
Barclays PLC,
2.85%, 5/7/26		200		210

	Face Amount (000)		Value (000)
Belrose Funding Trust,
2.33%, 8/15/30 (b)	$	125	$	121
BNP Paribas SA,
1.13%, 6/11/26	EUR	100		122
Brown & Brown, Inc.,
2.38%, 3/15/31	$	75		72
4.20%, 9/15/24		50		55
Citigroup, Inc.,
0.78%, 10/30/24		125		125
1.68%, 5/15/24		250		255
5.50%, 9/13/25		225		261
CNO Financial Group, Inc.,
5.25%, 5/30/29		125		145
Cooperatieve Rabobank UA,
2.50%, 5/26/26	EUR	100		118
Credit Agricole SA,
1.38%, 3/13/25		100		123
Crown Castle International Corp.,
3.30%, 7/1/30	$	25		26
DBS Group Holdings Ltd.,
1.50%, 4/11/28	EUR	100		120
Discover Financial Services,
3.95%, 11/6/24	$	25		27
Duke Realty LP,
1.75%, 2/1/31		125		116
Equitable Holdings, Inc.,
3.90%, 4/20/23		162		172
ERP Operating LP,
4.15%, 12/1/28		100		113
GA Global Funding Trust,
1.00%, 4/8/24		275		275
Goldman Sachs Group, Inc. (The),
2.00%, 11/1/28	EUR	100		130
4.25%, 10/21/25	$	125		140
Iron Mountain, Inc.,
4.88%, 9/15/29 (b)		75		76
Itau Unibanco Holding SA,
2.90%, 1/24/23 (b)		250		256
JPMorgan Chase & Co.,
1.95%, 2/4/32		125		119
Kimco Realty Corp.,
2.70%, 10/1/30		125		125
LeasePlan Corp.,
2.88%, 10/24/24 (b)		200		211
Macquarie Bank Ltd.,
2.10%, 10/17/22 (b)		150		154
Mastercard, Inc.,
1.90%, 3/15/31		75		74
Metropolitan Life Global Funding I,
0.95%, 7/2/25 (b)		150		148
National Bank of Canada,
0.55%, 11/15/24		250		249

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
PNC Financial Services Group, Inc. (The),
2.20%, 11/1/24	$	225	$	236
Post Holdings, Inc.,
5.50%, 12/15/29 (b)		25		27
Prologis LP,
1.25%, 10/15/30		150		136
Shinhan Financial Group Co. Ltd.,
1.35%, 1/10/26 (b)		200		199
SVB Financial Group,
1.80%, 2/2/31		100		92
3.13%, 6/5/30		50		52
Transurban Finance Co. Pty Ltd.,
2.45%, 3/16/31 (b)		100		97
USAA Capital Corp.,
1.50%, 5/1/23 (b)		150		153
Visa, Inc.,
0.75%, 8/15/27		75		72
Vonovia Finance BV,
4.00%, 12/17/21 (c)	EUR	100		120
Wells Fargo & Co.,
2.57%, 2/11/31	$	75		75
				6,361
Industrials (19.0%)
AbbVie, Inc.,
2.95%, 11/21/26		175		186
3.60%, 5/14/25		125		136
Albertsons Cos., Inc./Safeway, Inc./ New Albertson's, Inc./Albertson's LLC,
5.75%, 3/15/25		4		4
Alphabet, Inc.,
1.10%, 8/15/30		125		115
American Axle & Manufacturing, Inc.,
6.50%, 4/1/27		75		78
Aviation Capital Group LLC,
4.38%, 1/30/24 (b)		250		266
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
5.75%, 7/15/27 (b)		49		51
Baidu, Inc.,
1.72%, 4/9/26		200		199
Berry Global, Inc.,
4.50%, 2/15/26 (b)		25		26
Boyd Gaming Corp.,
4.75%, 12/1/27		40		41
CSX Corp.,
2.40%, 2/15/30		75		76
DH Europe Finance II Sarl,
2.20%, 11/15/24		375		391
Diamond Sports Group LLC/Diamond Sports Finance Co.,
6.63%, 8/15/27 (b)		75		39

	Face Amount (000)		Value (000)
Ford Motor Credit Co., LLC,
3.10%, 5/4/23	$	200	$	203
Garda World Security Corp.,
9.50%, 11/1/27 (b)		50		55
Global Partners LP/GLP Finance Corp.,
7.00%, 8/1/27		50		53
Grifols SA,
2.25%, 11/15/27 (b)	EUR	100		119
Grinding Media, Inc./Moly-Cop AltaSteel Ltd.,
7.38%, 12/15/23 (b)	$	75		77
Hanesbrands, Inc.,
4.88%, 5/15/26 (b)		75		81
HCA, Inc.,
4.13%, 6/15/29		125		139
Johnson Controls International plc/Tyco Fire & Security Finance SCA,
1.75%, 9/15/30		50		47
Koppers, Inc.,
6.00%, 2/15/25 (b)		75		77
Level 3 Financing, Inc.,
3.40%, 3/1/27 (b)		225		239
Lions Gate Capital Holdings LLC,
5.88%, 11/1/24 (b)		25		26
Mauser Packaging Solutions Holding Co.,
7.25%, 4/15/25 (b)		25		25
MDC Partners, Inc.,
7.50%, 5/1/24 (b)(d)		75		76
Mosaic Co. (The),
4.25%, 11/15/23		125		135
Navistar International Corp.,
6.63%, 11/1/25 (b)		75		78
NortonLifeLock, Inc.,
5.00%, 4/15/25 (b)		75		76
NXP BV/NXP Funding LLC/NXP USA, Inc.,
3.40%, 5/1/30 (b)		125		132
Oceaneering International, Inc.,
6.00%, 2/1/28		75		72
Q-Park Holding I BV,
1.50%, 3/1/25 (b)	EUR	100		113
Rockies Express Pipeline LLC,
3.60%, 5/15/25 (b)	$	75		75
Royalty Pharma PLC,
1.20%, 9/2/25 (b)		125		123
Sabine Pass Liquefaction LLC,
4.20%, 3/15/28		130		143
Sally Holdings LLC/Sally Capital, Inc.,
5.63%, 12/1/25		75		77
Select Medical Corp.,
6.25%, 8/15/26 (b)		75		80
Silgan Holdings, Inc.,
2.25%, 6/1/28	EUR	100		118
Sotheby's,
7.38%, 10/15/27 (b)	$	200		217

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC,
4.74%, 9/20/29 (b)	$	200	$	215
Standard Industries, Inc.,
2.25%, 11/21/26 (b)	EUR	100		119
Toyota Motor Corp.,
1.34%, 3/25/26	$	125		125
Verizon Communications, Inc.,
3.88%, 2/8/29		200		223
Vontier Corp.,
1.80%, 4/1/26 (b)		75		75
Western Midstream Operating LP,
4.35%, 2/1/25		75		78
Wolverine World Wide, Inc.,
5.00%, 9/1/26 (b)		25		25
				5,124
Utilities (1.2%)
Greenko Investment Co.,
4.88%, 8/16/23		200		203
ONEOK, Inc.,
3.40%, 9/1/29		125		129
				332
				11,863
Mortgages — Other (14.5%)
Alba PLC,
3 Month GBP LIBOR + 0.50%, 0.58%, 3/17/39 (a)	GBP	32		40
Alternative Loan Trust,
2.89%, 3/25/35 (a)	$	22		22
5.75%, 3/25/34		28		29
PAC
1 Month USD LIBOR + 0.45% ,0.56%, 10/25/36 (a)		35		17
Banc of America Alternative Loan Trust,
5.71%, 10/25/36 (a)		65		30
Banc of America Mortgage Trust,
3.30%, 6/25/35 (a)		94		92
3.67%, 3/25/33 (a)		19		19
Bear Stearns ARM Trust,
2.77%, 8/25/33 (a)		95		98
3.06%, 2/25/36 (a)		25		26
Bear Stearns Trust,
2.79%, 4/25/35 (a)		27		22
Cascade Funding Mortgage Trust,
2.80%, 6/25/69 (a)(b)		156		160
4.00%, 10/25/68 (a)(b)		339		345
CFMT 2020-HB4 LLC,
1.92%, 12/26/30 (a)(b)		250		251
CFMT 2021-HB5 LLC,
2.91%, 2/25/31 (a)(b)		250		249
Citigroup Mortgage Loan Trust,
2.87%, 6/25/36 (a)		20		11

	Face Amount (000)		Value (000)
Deephaven Residential Mortgage Trust,
3.49%, 12/26/46 (a)(b)	$	35	$	35
E-MAC Program BV,
3 Month EURIBOR + 0.17%, 1.42%, 4/25/39 (a)	EUR	65		71
Eurohome Mortgages PLC,
3 Month EURIBOR + 0.21%, 0.00%, 8/2/50 (a)		18		19
FMC GMSR Issuer Trust,
4.45%, 1/25/26 (a)(b)	$	100		100
5.07%, 5/25/24 (a)(b)		300		302
Galton Funding Mortgage Trust,
4.00%, 2/25/59 (a)(b)		28		28
GC Pastor Hipotecario 5 FTA,
3 Month EURIBOR + 0.17%, 0.00%, 6/21/46 (a)	EUR	31		33
GSR Mortgage Loan Trust,
2.86%, 12/25/34 (a)	$	38		40
HarborView Mortgage Loan Trust,
2.65%, 2/25/36 (a)		25		11
2.80%, 6/19/34 (a)		52		53
IM Pastor 3 FTH,
3 Month EURIBOR + 0.14%, 0.00%, 3/22/43 (a)	EUR	61		66
IM Pastor 4 FTA,
3 Month EURIBOR + 0.14%, 0.00%, 3/22/44 (a)		52		56
IndyMac INDX Mortgage Loan Trust,
2.91%, 12/25/34 (a)	$	17		17
Lansdowne Mortgage Securities No. 1 PLC,
3 Month EURIBOR + 0.30%, 0.00%, 6/15/45 (a)	EUR	12		13
Lansdowne Mortgage Securities No. 2 PLC,
3 Month EURIBOR + 0.34%, 0.00%, 9/16/48 (a)		35		37
Lehman Mortgage Trust,
6.00%, 7/25/36	$	53		37
National City Mortgage Capital Trust,
6.00%, 3/25/38		9		9
Newgate Funding PLC,
3 Month GBP LIBOR + 3.00%, 3.08%, 12/15/50 (a)	GBP	106		145
OBX Trust,
3.50%, 10/25/59 (a)(b)	$	51		52
PMC PLS ESR Issuer LLC,
5.07%, 11/25/24 (b)		96		96
PRPM LLC,
3.50%, 10/25/24 (a)(b)		81		82
RBSSP Resecuritization Trust,
2.20%, 12/25/35 (a)(b)		81		82
Reperforming Loan REMIC Trust,
8.50%, 6/25/35 (b)		39		42
Resloc UK PLC,
3 Month EURIBOR + 0.45%, 0.00%, 12/15/43 (a)	EUR	95		102

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
RMF Buyout Issuance Trust,
2.62%, 10/25/50 (a)(b)	$	100	$	99
Seasoned Credit Risk Transfer Trust,
3.75%, 9/25/55 (a)(b)		150		153
4.75%, 5/25/57 (a)		100		103
4.75%, 7/25/58 (a)(b)		200		209
Silver Hill Trust,
3.10%, 11/25/49 (a)(b)		116		120
STARM Mortgage Loan Trust,
3.02%, 1/25/37 (a)		11		11
Uropa Securities PLC,
3 Month GBP LIBOR + 0.55%, 0.58%, 10/10/40 (a)	GBP	83		104
3 Month GBP LIBOR + 0.55%, 0.63%, 6/10/59 (a)		74		98
3 Month GBP LIBOR + 0.75%, 0.83%, 6/10/59 (a)		34		44
Washington Mutual MSC Mortgage Pass-Through Certificates,
5.50%, 3/25/33	$	11		11
				3,891
Sovereign (4.3%)
Australia Government Bond,
2.75%, 11/21/28	AUD	1		1
Brazil Notas do Tesouro Nacional Series F,
10.00%, 1/1/29	BRL	300		56
Ghana Government International Bond,
8.13%, 1/18/26	$	200		212
Guatemala Government Bond,
4.88%, 2/13/28		200		221
Hellenic Republic Government Bond,
3.38%, 2/15/25 (b)	EUR	115		152
3.45%, 4/2/24 (b)		40		52
Indonesia Treasury Bond,
6.50%, 2/15/31	IDR	607,000		41
8.25%, 5/15/29		465,000		35
Peruvian Government International Bond, (Units)
5.40%, 8/12/34 (b)(e)	PEN	60		16
Senegal Government International Bond,
6.25%, 5/23/33	$	200		200
Ukraine Government International Bond,
7.75%, 9/1/23		150		162
				1,148
Total Fixed Income Securities (Cost $25,057)				25,420
	Shares
Short-Term Investments (4.8%)
Investment Company (3.9%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,044)		1,044,161		1,044

	Face Amount (000)		Value (000)
U.S. Treasury Security (0.9%)
U.S. Treasury Bill
0.09%, 6/3/21 (f)(g) (Cost $255)	$	255	$	255
Total Short-Term Investments (Cost $1,299)				1,299
Total Investments (99.3%) (Cost $26,356) (h)(i)				26,719
Other Assets in Excess of Liabilities (0.7%)				177
Net Assets (100.0%)			$	26,896

(a)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(b)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(c)  Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2021.

(d)  Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2021. Maturity date disclosed is the ultimate maturity date.

(e)  Consists of one or more classes of securities traded together as a unit.

(f)  Rate shown is the yield to maturity at March 31, 2021.

(g)  All or a portion of the security was pledged to cover margin requirements for swap agreements.

(h)  Securities are available for collateral in connection with open foreign currency forward exchange contracts, futures contracts and swap agreement.

(i)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $786,000 and the aggregate gross unrealized depreciation is approximately $258,000, resulting in net unrealized appreciation of approximately $528,000.

EURIBOR  Euro Interbank Offered Rate.

IO  Interest Only.

LIBOR  London Interbank Offered Rate.

PAC  Planned Amortization Class.

REMIC  Real Estate Mortgage Investment Conduit.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 31, 2021:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC	$	5	GBP	3	5/25/21	$	(—	@)
BNP Paribas SA	GBP	468	$	658	5/25/21		13
JPMorgan Chase Bank NA	BRL	367	$	68	5/25/21		3
JPMorgan Chase Bank NA	EUR	1,949	$	2,372	5/25/21		84
JPMorgan Chase Bank NA	IDR	1,132,494	$	79	5/25/21		2
JPMorgan Chase Bank NA	PEN	65	$	18	5/25/21		—	@
						$	102

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2021:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (000)
Short:
U.S. Treasury 5 yr. Note (United States)		18	Jun-21	$	(1,800	)	$	(2,221	)	$	28
U.S. Treasury 10 yr. Note (United States)		1	Jun-21		(100	)		(131	)		3
U.S. Treasury Ultra Long Bond (United States)		5	Jun-21		(500	)		(718	)		26
German Euro Bund (Germany)		2	Jun-21	EUR	(200	)		(343	)		—	@
										$	57

Credit Default Swap Agreement:

The Fund had the following credit default swap agreement open at March 31, 2021:

Swap Counterparty and Reference Obligation	Credit Rating of Reference Obligation†	Buy/Sell Protection	Pay/Receive Fixed Rate			Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)		Upfront Payment Paid (000)		Unrealized Appreciation (000)
Morgan Stanley & Co. LLC* CDX.NA.HY.34	NR	Sell		5.00	%	Quarterly	6/20/26	$	1,325	$	120	$	114	$	6

@  —  Value is less than $500.

†  —  Credit rating as issued by Standard & Poor's.

*  —  Cleared swap agreement, the broker is Morgan Stanley & Co. LLC.

NR  —  Not rated.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

EUR  —  Euro

GBP  —  British Pound

IDR  —  Indonesian Rupiah

PEN  —  Peruvian Nuevo Sol

USD  —  United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Asset-Backed Securities		27.4	%
Finance		23.8
Industrials		19.2
Mortgages — Other		14.6
Other**		15.0
Total Investments		100.0	%***

**  Industries and/or investment types representing less than 5% of total investments.

***  Does not include open short futures contracts with a value of approximately $3,413,000 and total unrealized appreciation of approximately $57,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $102,000. Also does not include open swap agreement with total unrealized appreciation of approximately $6,000.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $25,312)	$	25,675
Investment in Security of Affiliated Issuer, at Value (Cost $1,044)		1,044
Total Investments in Securities, at Value (Cost $26,356)		26,719
Foreign Currency, at Value (Cost $45)		43
Cash		105
Interest Receivable		136
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		102
Receivable for Variation Margin on Futures Contracts		59
Due from Adviser		32
Receivable for Variation Margin on Swap Agreements		10
Receivable for Fund Shares Sold		2
Tax Reclaim Receivable		1
Receivable from Affiliate		—	@
Other Assets		60
Total Assets		27,269
Liabilities:
Payable for Investments Purchased		275
Payable for Professional Fees		65
Payable for Custodian Fees		11
Payable for Swap Agreements Termination		5
Payable for Administration Fees		2
Deferred Capital Gain Country Tax		2
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		—	@
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Other Liabilities		13
Total Liabilities		373
Net Assets	$	26,896
Net Assets Consist of:
Paid-in-Capital	$	26,803
Total Distributable Earnings		93
Net Assets	$	26,896

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2021 (000)
CLASS I:
Net Assets	$	15,702
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,555,834
Net Asset Value, Offering and Redemption Price Per Share	$	10.09
CLASS A:
Net Assets	$	124
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		12,299
Net Asset Value, Redemption Price Per Share	$	10.09
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.34
Maximum Offering Price Per Share	$	10.43
CLASS C:
Net Assets	$	338
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		33,644
Net Asset Value, Offering and Redemption Price Per Share	$	10.05
CLASS IS:
Net Assets	$	10,732
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,063,033
Net Asset Value, Offering and Redemption Price Per Share	$	10.10

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Strategic Income Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $1 of Foreign Taxes Withheld)	$	405
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		405
Expenses:
Professional Fees		68
Advisory Fees (Note B)		42
Registration Fees		22
Administration Fees (Note C)		11
Pricing Fees		11
Custodian Fees (Note F)		9
Shareholder Reporting Fees		8
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		2
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		1
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Other Expenses		9
Total Expenses		187
Expenses Reimbursed by Adviser (Note B)		(64	)
Waiver of Advisory Fees (Note B)		(42	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		78
Net Investment Income		327
Realized Gain (Loss):
Investments Sold (Net of $1 of Capital Gain Country Tax)		123
Foreign Currency Forward Exchange Contracts		(83	)
Foreign Currency Translation		1
Futures Contracts		50
Swap Agreements		194
Net Realized Gain		285
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $1)		342
Foreign Currency Forward Exchange Contracts		47
Foreign Currency Translation		(2	)
Futures Contracts		64
Swap Agreements		(109	)
Net Change in Unrealized Appreciation (Depreciation)		342
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		627
Net Increase in Net Assets Resulting from Operations	$	954

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Strategic Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	327		$	709
Net Realized Gain (Loss)		285			(340	)
Net Change in Unrealized Appreciation (Depreciation)		342			(121	)
Net Increase in Net Assets Resulting from Operations		954			248
Dividends and Distributions to Shareholders:
Class I		(280	)		(439	)
Class A		(2	)		(12	)
Class C		(3	)		(3	)
Class IS		(192	)		(301	)
Total Dividends and Distributions to Shareholders		(477	)		(755	)
Capital Share Transactions:(1)
Class I:
Subscribed		—			15,041
Distributions Reinvested		280			439
Redeemed		—			(40	)
Class A:
Subscribed		23			1,505
Distributions Reinvested		2			12
Redeemed		(110	)		(1,529	)
Class C:
Subscribed		126			257
Distributions Reinvested		3			3
Redeemed		(62	)		(47	)
Class IS:
Distributions Reinvested		192			301
Net Increase in Net Assets Resulting from Capital Share Transactions		454			15,942
Total Increase in Net Assets		931			15,435
Net Assets:
Beginning of Period		25,965			10,530
End of Period	$	26,896		$	25,965
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		—			1,487
Shares Issued on Distributions Reinvested		28			45
Shares Redeemed		—			(5	)
Net Increase in Class I Shares Outstanding		28			1,527
Class A:
Shares Subscribed		3			152
Shares Issued on Distributions Reinvested		—	@@		1
Shares Redeemed		(11	)		(155	)
Net Decrease in Class A Shares Outstanding		(8	)		(2	)
Class C:
Shares Subscribed		13			27
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(6	)		(5	)
Net Increase in Class C Shares Outstanding		7			22
Class IS:
Shares Issued on Distributions Reinvested		19			31

@@  Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Strategic Income Portfolio

	Class I
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.91		$	10.11		$	10.33		$	10.21		$	9.69		$	9.79
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.12			0.27			0.26			0.28			0.26			0.22
Net Realized and Unrealized Gain (Loss)		0.24			(0.18	)		0.10			0.05			0.47			0.06
Total from Investment Operations		0.36			0.09			0.36			0.33			0.73			0.28
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		(0.29	)		(0.44	)		(0.21	)		(0.21	)		(0.38	)
Net Realized Gain		—			—			(0.14	)		—			—			—
Total Distributions		(0.18	)		(0.29	)		(0.58	)		(0.21	)		(0.21	)		(0.38	)
Net Asset Value, End of Period	$	10.09		$	9.91		$	10.11		$	10.33		$	10.21		$	9.69
Total Return(3)		3.67	%(7)		0.98	%		3.79	%		3.32	%		7.64	%		2.91	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15,702		$	15,145		$	10		$	10		$	10		$	10
Ratio of Expenses Before Expense Limitation		1.38	%(8)		1.98	%		24.26	%		25.49	%		21.19	%		7.28	%
Ratio of Expenses After Expense Limitation		0.58	%(4)(8)		0.58	%(4)(5)		0.99	%(4)		0.99	%(4)		0.99	%(4)		0.99	%(4)
Ratio of Net Investment Income		2.47	%(4)(8)		2.81	%(4)		2.61	%(4)		2.77	%(4)		2.63	%(4)		2.25	%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		19	%(7)		161	%		97	%		75	%		64	%		47	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective October 01, 2019, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.60% for Class I shares. Prior to October 01, 2019, the maximum ratio was 1.00% for Class I shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Strategic Income Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.90		$	10.09		$	10.31		$	10.20		$	9.69		$	9.79
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.11			0.24			0.22			0.25			0.20			0.18
Net Realized and Unrealized Gain (Loss)		0.24			(0.17	)		0.11			0.04			0.49			0.06
Total from Investment Operations		0.35			0.07			0.33			0.29			0.69			0.24
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.26	)		(0.41	)		(0.18	)		(0.18	)		(0.34	)
Net Realized Gain		—			—			(0.14	)		—			—			—
Total Distributions		(0.16	)		(0.26	)		(0.55	)		(0.18	)		(0.18	)		(0.34	)
Net Asset Value, End of Period	$	10.09		$	9.90		$	10.09		$	10.31		$	10.20		$	9.69
Total Return(3)		3.54	%(7)		0.62	%		3.52	%		2.92	%		7.18	%		2.51	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	124		$	204		$	224		$	77		$	10		$	40
Ratio of Expenses Before Expense Limitation		3.07	%(8)		2.89	%		4.82	%		7.09	%		9.96	%		6.73	%
Ratio of Expenses After Expense Limitation		0.95	%(4)(8)		0.95	%(4)(5)		1.34	%(4)		1.34	%(4)		1.33	%(4)		1.34	%(4)
Ratio of Net Investment Income		2.13	%(4)(8)		2.44	%(4)		2.21	%(4)		2.40	%(4)		2.08	%(4)		1.86	%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.01	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		19	%(7)		161	%		97	%		75	%		64	%		47	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective October 01, 2019, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.95% for Class A shares. Prior to October 01, 2019, the maximum ratio was 1.35% for Class A shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized

(8)  Annualized.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Strategic Income Portfolio

	Class C
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.87		$	10.07		$	10.28		$	10.17		$	9.66		$	9.76
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.07			0.16			0.14			0.17			0.13			0.11
Net Realized and Unrealized Gain (Loss)		0.24			(0.17	)		0.11			0.05			0.49			0.06
Total from Investment Operations		0.31			(0.01	)		0.25			0.22			0.62			0.17
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.19	)		(0.32	)		(0.11	)		(0.11	)		(0.27	)
Net Realized Gain		—			—			(0.14	)		—			—			—
Total Distributions		(0.13	)		(0.19	)		(0.46	)		(0.11	)		(0.11	)		(0.27	)
Net Asset Value, End of Period	$	10.05		$	9.87		$	10.07		$	10.28		$	10.17		$	9.66
Total Return(3)		3.12	%(7)		(0.13	)%		2.78	%		2.11	%		6.46	%		1.77	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	338		$	266		$	50		$	20		$	22		$	35
Ratio of Expenses Before Expense Limitation		3.28	%(8)		4.43	%		10.78	%		14.46	%		13.41	%		28.93	%
Ratio of Expenses After Expense Limitation		1.70	%(4)(8)		1.70	%(4)(5)		2.09	%(4)		2.09	%(4)		2.09	%(4)		2.09	%(4)
Ratio of Net Investment Income		1.37	%(4)(8)		1.70	%(4)		1.45	%(4)		1.69	%(4)		1.33	%(4)		1.14	%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		19	%(7)		161	%		97	%		75	%		64	%		47	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective October 01, 2019, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.70% for Class C shares. Prior to October 01, 2019, the maximum ratio was 2.10% for Class C shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Strategic Income Portfolio

	Class IS
	Six Months Ended March 31, 2021			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016(1)
Net Asset Value, Beginning of Period	$	9.91		$	10.11		$	10.33		$	10.22		$	9.69		$	9.79
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.13			0.28			0.27			0.29			0.27			0.23
Net Realized and Unrealized Gain (Loss)		0.24			(0.19	)		0.10			0.04			0.48			0.05
Total from Investment Operations		0.37			0.09			0.37			0.33			0.75			0.28
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		(0.29	)		(0.45	)		(0.22	)		(0.22	)		(0.38	)
Net Realized Gain		—			—			(0.14	)		—			—			—
Total Distributions		(0.18	)		(0.29	)		(0.59	)		(0.22	)		(0.22	)		(0.38	)
Net Asset Value, End of Period	$	10.10		$	9.91		$	10.11		$	10.33		$	10.22		$	9.69
Total Return(3)		3.78	%(7)		0.89	%		3.95	%		3.27	%		7.80	%		2.96	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10,732		$	10,350		$	10,246		$	10,311		$	10,197		$	9,669
Ratio of Expenses Before Expense Limitation		1.39	%(8)		1.99	%		3.06	%		3.28	%		3.79	%		3.45	%
Ratio of Expenses After Expense Limitation		0.57	%(4)(8)		0.57	%(4)(5)		0.94	%(4)		0.94	%(4)		0.94	%(4)		0.94	%(4)
Ratio of Net Investment Income		2.49	%(4)(8)		2.81	%(4)		2.66	%(4)		2.83	%(4)		2.68	%(4)		2.35	%(4)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%(6)(8)		0.00	%(6)		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		19	%(7)		161	%		97	%		75	%		64	%		47	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(5)  Effective October 01, 2019, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.57% for Class IS shares. Prior to October 01, 2019, the maximum ratio was 0.95% for Class IS shares.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("Trust'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of thirteen separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Strategic Income Portfolio. The Fund seeks to maximize current income consistent with the preservation of capital. The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Trust in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

In March 2020, the Financial Accounting Standards Board ("FASB") issued an Accounting Standard Update, ASU 2020-04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate ("LIBOR") and other Interbank Offered Rate ("IBOR") based reference rates at the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 on the Fund's investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform.

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on

an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

2.  Fair Value Measurement: FASB Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Asset-Backed Securities	$	—	$	7,319	$	—	$	7,319
Collateralized Mortgage Obligations — Agency Collateral Series		—		6		—		6
Commercial Mortgage-Backed Securities		—		1,193		—		1,193
Corporate Bonds		—		11,863		—		11,863
Mortgages — Other		—		3,891		—		3,891
Sovereign		—		1,148		—		1,148
Total Fixed Income Securities		—		25,420		—		25,420
Short-Term Investments
Investment Company		1,044		—		—		1,044
U.S. Treasury Security		—		255		—		255
Total Short-Term Investments		1,044		255		—		1,299
Foreign Currency Forward Exchange Contracts		—		102		—		102
Futures Contracts		57		—		—		57
Credit Default Swap Agreement		—		6		—		6
Total Assets		1,101		25,783		—		26,884

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Liability:
Foreign Currency Forward Exchange Contract	$	—	$	—	@	$	—	$	—	@
Total	$	1,101	$	25,783		$	—	$	26,884

@  Value is less than $500.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

3.  Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

–  investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

–  investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from

currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Statement of Operations.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

4.  Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. Leverage associated with derivative transactions may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser and/or Sub-Adviser seek to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be

unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

Swaps: The Fund may enter into OTC swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Fund's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Fund's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Fund or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis based on the type of market participant and U.S. Commission ("CFTC") approval of contracts for central clearing and exchange trading.

The Fund's use of swaps during the period included those based on the credit of an underlying security commonly referred to as "credit default swaps." The Fund may be either the buyer or seller in a credit default swap. Where the Fund is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Fund would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Fund is the seller of a credit default swap contract, it typically receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed-upon) value of a referenced debt obligation upon the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Fund if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap agreement and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the

swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Fund's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

The current credit rating of each individual issuer is listed in the table following the Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

When the Fund has an unrealized loss on a swap agreement, the Fund has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

Upfront payments paid or received by the Fund will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund also entered into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. In addition, the Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized gain or loss. The Fund records 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.

FASB ASC 815, "Derivatives and Hedging" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2021:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Appreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	102
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		57	(a)
Swap Agreement	Variation Margin on Swap Agreement	Credit Risk		6	(a)
Total			$	165

(a) This amount represents the cumulative appreciation (depreciation) as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2021 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(83	)
Interest Rate Risk	Futures Contracts		50
Credit Risk	Swap Agreement		194
Total		$	161
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	47
Interest Rate Risk	Futures Contracts		64
Credit Risk	Swap Agreement		(109	)
Total		$	2

At March 31, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	102	$	(—	@)

(b) Excludes exchange-traded derivatives.

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

@ Amount is less than $500.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its contract counterparties for certain OTC derivatives in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received (000)		Net Amount (not less than $0) (000)
BNP Paribas SA	$	13	$	—	$	—	$	13
JPMorgan Chase Bank NA		89		—		—		89
Total	$	102	$	—	$	—	$	102

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives the Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	—	@	$	—	$	—	$	—	@

@ Amount is less than $500.

For the six months ended March 31, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	4,468,000
Futures Contracts:
Average monthly notional value	$	2,269,000
Swap Agreements:
Average monthly notional amount	$	1,237,000

5.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

6.  Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, if any, are distributed at least annually.

7.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.32% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.60% for Class I shares, 0.95% for Class A shares, 1.70% for Class C shares and 0.57% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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 March 31, 2021, approximately $42,000 of advisory fees were waived and approximately $67,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust has adopted a Distribution and Shareholder Services Plan with respect to Class C shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.75% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class A and Class C shares.

E. Dividend Disbursing and Transfer Agent: The Trust's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Trust pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.

F. Custodian Fees: State Street (the "Custodian") also serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Trust as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $4,887,000 and $5,259,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended March 31, 2021 is as follows:

Affiliated Investment Company	Value September 30, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	118	$	4,495	$	3,569	$	—	@

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 31, 2021 (000)
Liquidity Funds	$	—	$	—	$	1,044

@ Amount is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency

and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	755	$	—	$	457	$	146

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, due to tax adjustments on debt securities, resulted in the following reclassifications among the components of net assets at September 30, 2020:

Total Accumulated Loss (000)			Paid-in- Capital (000)
$	(2	)	$	2

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	184	$	—

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

At September 30, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $396,000 and $72,000, respectively, that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund did not have record owners of 10% or greater.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

L. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates

for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Trustees (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice   April 2021

FACTS	WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?	All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

To limit our sharing	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
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30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

Definitions

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Other Important Information

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31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

Frank L. Bowman
Kathleen A. Dennis
Nancy C. Everett
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia Maleski
W. Allen Reed, Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

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Morgan Stanley Investment Management Inc.
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New York, New York 10036

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Morgan Stanley Distribution, Inc.
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DST Asset Manager Solutions, Inc.
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Quincy, Massachusetts 02169

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State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Trustees

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
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Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

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Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable fund of Morgan Stanley Institutional Fund Trust, which describes in detail the fund's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Fund, please visit our website at www.morganstanley.com/im/shareholderreports or call toll free 1 (800) 548-7786.

32

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTSIPSAN
3566052 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Ultra-Short Income Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	9
Statement of Operations	10
Statements of Changes in Net Assets	11
Financial Highlights	12
Notes to Financial Statements	15
Liquidity Risk Management Program	21
U.S. Customer Privacy Notice	22
Trustee and Officer Information	25

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or statement of additional information ("SAI"), which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations and describes in detail each of the Fund's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access fund information including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Ultra-Short Income Portfolio (the "Fund") performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Ultra-Short Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Ultra-Short Income Portfolio Class IR	$	1,000.00	$	1,000.30	$	1,023.83	$	1.10	$	1.11		0.22	%
Ultra-Short Income Portfolio Institutional Class		1,000.00		1,000.00		1,023.59		1.35		1.36		0.27
Ultra-Short Income Portfolio Class A		1,000.00		999.60		1,023.14		1.79		1.82		0.36

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
Certificates of Deposit (19.3%)
Domestic Banks (1.8%)
Credit Suisse NY,
0.22%, 11/29/21	$	20,000	$	19,991
0.25%, 12/13/21		250		250
0.34%, 12/27/21		150,000		150,022
1.50%, 4/30/21		125,000		125,144
				295,407
International Banks (17.5%)
Canadian Imperial Bank of Commerce
0.43%, 8/3/21		205,000		205,190
Credit Suisse AG,
0.34%, 12/28/21		225,000		225,034
KBC Bank NV
0.06%, 4/5/21		50,000		50,000
Mizuho Bank Ltd.,
0.23%, 11/17/21		200,000		200,010
0.24%, 11/3/21		250,000		250,036
National Bank of Kuwait Sakp,
0.40%, 5/10/21 - 5/14/21		550,000		550,121
Natixis NY
0.34%, 11/16/21		300,000		300,235
Nordea Bank Abp,
0.05%, 4/5/21 - 4/6/21		200,000		200,000
Qatar National Bank,
0.58%, 1/5/22		100,000		99,733
0.60%, 12/9/21 - 12/17/21		345,000		344,205
0.68%, 9/15/21		220,000		219,777
0.70%, 8/6/21		115,000		114,925
Sumitomo Mitsui Trust Bank Ltd.
0.05%, 4/5/21		100,000		100,000
				2,859,266
Total Certificates of Deposit (Cost $3,152,362)				3,154,673
Commercial Paper (a) (34.3%)
Asset-Backed Diversified Financial Services (5.3%)
Chesham Finance LLC,
0.10%, 4/5/21 - 4/6/21		326,000		325,996
0.12%, 4/1/21		450,000		449,999
Collateralized Commercial Paper FLEX Cp. LLC,
0.26%, 6/17/21		10,000		9,997
0.33%, 11/17/21 (b)		52,000		51,938
Collateralized Commercial Paper V Co.
0.32%, 9/14/21		32,000		31,975
				869,905
Automobiles (2.3%)
American Honda Finance Corp.
0.25%, 6/4/21		85,000		84,966
Toyota Credit Canada, Inc.,
0.40%, 4/15/21 - 4/23/21		140,000		139,988
VW Credit, Inc.,
0.35%, 2/16/22		50,000		49,839
0.38%, 3/18/22 - 3/22/22		95,000		94,657
				369,450

	Face Amount (000)		Value (000)
Chemicals (0.6%)
EI Du Pont De Nemours & Co,
0.32%, 12/1/21 - 12/10/21	$	93,233	$	93,006
Communications (0.1%)
Telus Corp.,
0.25%, 6/16/21		4,500		4,498
0.27%, 7/13/21		16,000		15,988
				20,486
Diversified Financial Services (1.1%)
Intercontinental Exchange Inc.,
0.37%, 7/2/21		4,000		3,996
0.40%, 5/28/21 - 6/29/21		50,500		50,455
0.40%, 6/7/21 (b)		18,100		18,086
0.42%, 6/23/21 - 7/1/21		104,000		103,895
				176,432
Finance (4.1%)
Barclays Capital, Inc.,
0.37%, 1/28/22		25,000		24,944
0.38%, 1/27/22		290,000		289,358
Goldman Sachs International,
0.33%, 1/14/22		175,000		174,649
0.35%, 12/22/21		186,000		185,672
				674,623
Health Care Services (3.8%)
United Healthcare Co.
0.16%, 4/7/21		40,000		39,999
UnitedHealth Group, Inc.,
0.11%, 4/5/21		400,000		399,996
0.12%, 4/1/21 (b)		190,500		190,500
				630,495
Industrials (0.9%)
Reckitt Benckiser Treasury Services PLC,
0.27%, 9/20/21 - 9/27/21		141,000		140,767
International Banks (16.0%)
Barclays Bank PLC,
0.08%, 4/6/21 (b)		150,000		149,998
0.26%, 12/7/21 - 12/14/21 (b)		155,000		154,803
0.27%, 12/8/21 (b)		200,000		199,738
BNP Paribas SA
0.05%, 4/1/21		200,000		200,000
Canadian Imperial Bank of Commerce
0.20%, 12/7/21		25,000		24,966
Fidelity National Information Services, Inc.
0.31%, 5/28/21		100,000		99,963
HSBC Bank PLC
0.60%, 5/18/21		50,000		49,987
Macquarie Bank Ltd.,
0.20%, 8/19/21 - 8/27/21		200,000		199,829
0.21%, 9/20/21		100,000		99,913
0.35%, 11/22/21 - 11/23/21		218,000		217,751

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
International Banks (cont'd)
Societe Generale,
0.30%, 2/1/22 (b)	$	95,000	$	94,841
0.37%, 12/16/21 (b)		368,000		367,524
Toronto Dominion Bank,
0.06%, 4/7/21		250,000		249,996
0.07%, 4/1/21 - 4/9/21		450,000		449,994
UBS AG London
0.30%, 3/15/22 (b)		65,000		65,000
				2,624,303
Multi-Media (0.1%)
Walt Disney Co.
0.26%, 12/15/21		25,000		24,996
Total Commercial Paper (Cost $5,622,755)				5,624,463
Corporate Bonds (2.8%)
Diversified Financial Services (0.0%)
Sumitomo Mitsui Financial Group, Inc.
2.85%, 1/11/22		2,170		2,212
Domestic Banks (1.4%)
Bank of America Corp.
2.63%, 4/19/21		59,691		59,747
Wells Fargo & Co.
4.60%, 4/1/21		167,024		167,024
				226,771
Finance (0.4%)
QNB Finance Ltd.
2.13%, 9/7/21		36,053		36,248
Truist Financial Corp.
2.75%, 4/1/22		10,000		10,227
Volkswagen Group of America Finance LLC,
2.50%, 9/24/21 (b)		6,000		6,066
4.00%, 11/12/21 (b)		14,032		14,340
				66,881
Industrials (0.1%)
Siemens Financieringsmaatschappij N.V
1.70%, 9/15/21 (b)(c)		10,952		11,024
International Banks (0.9%)
Mizuho Financial Group, Inc.,
2.27%, 9/13/21		10,000		10,088
2.95%, 2/28/22 (c)		130,589		133,668
				143,756
Total Corporate Bonds (Cost $450,746)				450,644
Floating Rate Notes (d) (15.9%)
Automobiles (2.9%)
Toyota Motor Credit Corp., SOFR + 0.22% 0.23%, 3/28/22		375,000		375,060
Toyota Motor Finance,
3 Month USD LIBOR + 0.10% 0.28%, 6/8/21		95,000		95,019
				470,079

	Face Amount (000)		Value (000)
Diversified Financial Services (0.0%)
Sumitomo Mitsui Financial Group, Inc.,
3 Month USD LIBOR + 0.97%, 1.19%, 1/11/22	$	995	$	1,001
3 Month USD LIBOR + 1.14%, 1.36%, 10/19/21		2,000		2,012
				3,013
Domestic Banks (3.4%)
First Abu Dhabi Bank USA,
3 Month USD LIBOR + 0.17% 0.35%, 12/14/21		375,000		375,221
Mizuho Securities USA LLC,
3 Month USD LIBOR + 0.10%, 0.30%, 12/17/21		20,000		20,002
3 Month USD LIBOR + 0.15%, 0.33%, 12/10/21		20,000		20,009
3 Month USD LIBOR + 0.16%, 0.36%, 9/27/21 (b)		50,000		50,018
3 Month USD LIBOR + 0.19%, 0.37%, 8/23/21		85,000		85,051
				550,301
International Banks (9.6%)
Bank of Montreal,
3 Month USD LIBOR + 0.13% 0.37%, 7/6/21		30,000		30,013
Canadian Imperial Bank of Commerce,
3 Month USD LIBOR + 0.10%, 0.29%, 12/13/21		150,000		150,088
3 Month USD LIBOR + 0.16%, 0.35%, 8/6/21		150,000		150,083
HSBC Bank PLC,
3 Month USD LIBOR + 0.40% 0.62%, 4/28/21 (b)		100,000		100,027
Macquarie Bank Ltd.,
3 Month USD LIBOR + 0.45% 0.63%, 11/24/21 (b)		4,000		4,010
Mizuho Financial Group, Inc.,
3 Month USD LIBOR + 0.94%, 1.13%, 2/28/22 (c)		13,035		13,129
3 Month USD LIBOR + 1.14%, 1.32%, 9/13/21		500		502
3 Month USD LIBOR + 1.48%, 1.70%, 4/12/21 (b)(c)		4,220		4,221
Royal Bank of Canada,
3 Month USD LIBOR + 0.11%, 0.29%, 12/14/21 (b)		75,000		75,050
3 Month USD LIBOR + 0.11%, 0.30%, 12/16/21 (b)		50,000		50,033
Sumitomo Mitsui Banking Corp.,
3 Month USD LIBOR + 0.05%, 0.24%, 12/22/21		250,000		250,027
3 Month USD LIBOR + 0.35%, 0.57%, 7/16/21		17,610		17,628
3 Month USD LIBOR + 0.36%, 0.59%, 4/6/21		133,372		133,373

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
International Banks (cont'd)
UBS AG London,
3 Month USD LIBOR + 0.10%, 0.30%, 11/5/21 (b)	$	250	$	250
3 Month USD LIBOR + 0.12%, 0.35%, 10/14/21 (b)		210,000		210,083
3 Month USD LIBOR + 0.18%, 0.38%, 6/25/21 (b)		390,000		390,045
				1,578,562
Total Floating Rate Notes (Cost $2,601,122)				2,601,955
Repurchase Agreements (26.2%)
ABN Amro Securities LLC, (0.27%, dated 3/31/21, due 4/1/21; proceeds $1,000; fully collateralized by a Corporate Bond; 2.75% due 8/31/23; valued at $1,020)		1,000		1,000
Bank of America Securities, Inc., (0.42% (d), dated 9/2/20, due 6/4/21; proceeds $175,561; fully collateralized by various Common Stocks and Preferred Stocks; valued at $183,750) (Demand 4/1/21) (e)		175,000		175,000
Bank of America Securities, Inc., (0.45%, dated 1/19/21, due 4/20/21; proceeds $255,290; fully collateralized by various Common Stocks and Preferred Stocks; valued at $267,750)		255,000		255,000
Bank of America Securities, Inc., (0.51% (d), dated 7/27/20, due 7/27/21; proceeds $301,554; fully collateralized by Convertible Bonds, 0.00% - 3.13% due 9/15/22 - 9/30/46 and Common Stocks and Preferred Stocks valued at $316,804) (Demand 4/27/21) (e)		300,000		300,000
BMO Capital Markets Corp., (0.17%, dated 3/31/21, due 4/1/21; proceeds $51,000; fully collateralized by various Corporate Bonds; 0.79% - 9.63% due 11/23/21 - 6/1/50; valued at $53,550) (e)		51,000		51,000
BNP Paribas Prime Brokerage, Inc., (0.37%, dated 3/31/21, due 4/1/21; proceeds $275,003; fully collateralized by various Corporate Bonds; 2.31% - 12.00% due 11/15/21 - 10/7/79; valued at $291,175) (e)		275,000		275,000
BNP Paribas Prime Brokerage, Inc., (0.42%, dated 3/23/21, due 6/28/21; proceeds $65,074; fully collateralized by various Corporate Bonds; 2.31% - 12.00% due 3/1/23 - 3/26/79; valued at $68,946) (e)		65,000		65,000
BNP Paribas Securities Corp., (0.40%, dated 3/22/21, due 6/21/21; proceeds $275,278; fully collateralized by various Corporate Bonds; 2.20% - 11.13% due 7/21/21 - 6/15/76; valued at $291,444) (e)		275,000		275,000

	Face Amount (000)		Value (000)
Credit Agricole Corporate and Investment Bank, (0.17%, dated 3/4/21, due 5/4/21; proceeds $60,017; fully collateralized by various Corporate Bonds; 0.00% - 4.95% due 5/15/21 - 3/15/51; valued at $62,910) (e)	$	60,000	$	60,000
Credit Agricole Corporate and Investment Bank, (0.17%, dated 3/16/21, due 5/17/21; proceeds $341,100; fully collateralized by various Corporate Bonds; 0.00% - 7.25% due 7/20/21 - 2/15/44; valued at $357,792) (e)		341,000		341,000
Credit Agricole Corporate and Investment Bank, (0.18%, dated 2/11/21, due 4/12/21; proceeds $45,014; fully collateralized by various Corporate Bonds; 1.57% - 4.70% due 2/26/23 - 4/12/28; valued at $47,284)		45,000		45,000
Credit Agricole Corporate and Investment Bank, (0.18%, dated 2/16/21, due 4/16/21; proceeds $170,050; fully collateralized by various Corporate Bonds; 0.00% - 6.63% due 5/15/21 - 2/1/61; valued at $178,369) (e)		170,000		170,000
Credit Agricole Corporate and Investment Bank, (0.18%, dated 2/24/21, due 4/26/21; proceeds $70,021; fully collateralized by various Corporate Bonds; 0.00% - 7.50% due 5/15/21 - 2/1/61; valued at $73,249) (e)		70,000		70,000
JP Morgan Securities LLC, (0.29% (d), dated 3/18/21, due 4/7/21; proceeds $360,058; fully collateralized by Convertible Bonds, 0.00% - 3.50% due 9/15/21 - 1/15/31 and Common Stocks and Preferred Stocks valued at $385,805) (Demand 4/1/21) (e)		360,000		360,000
JP Morgan Securities LLC, (0.45% (d), dated 8/17/20, due 6/4/21; proceeds $250,909; fully collateralized by Convertible Bonds, 0.00% - 3.50% due 9/15/22 - 1/15/31 and Common Stocks and Preferred Stocks valued at $269,905) (Demand 4/1/21) (e)		250,000		250,000
JP Morgan Securities LLC, (0.45% (d), dated 9/1/20, due 6/4/21; proceeds $100,345; fully collateralized by Convertible Bonds, 0.00% - 3.50% due 9/15/21 - 9/30/46 and Common Stocks and Preferred Stocks valued at $107,240) (Demand 4/1/21) (e)		100,000		100,000
Mizuho Securities USA LLC, (0.22%, dated 3/31/21, due 4/1/21; proceeds $5,000; fully collateralized by various Common Stocks and Preferred Stocks; valued at $5,250) (e)		5,000		5,000

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
Repurchase Agreements (cont'd)
Pershing LLC, (0.38%, dated 3/31/21 due 4/1/21; proceeds $100,001; fully collateralized by various Corporate Bonds; 0.00% - 11.75% due 4/5/21 - 3/26/79; valued at $105,775) (e)	$	100,000	$	100,000
Scotia Capital USA, Inc., (0.32%, dated 3/31/21, due 4/1/21; proceeds $50,000; fully collateralized by various Corporate Bonds; 0.33% - 4.35% due 5/10/21 - 2/25/50; valued at $52,500)		50,000		50,000
Scotia Capital USA, Inc., (0.32%, dated 3/31/21, due 4/1/21; proceeds $100,001; fully collateralized by various Corporate Bonds; 0.5% - 5.05% due 4/30/21 - 6/15/51; valued at $105,000) (e)		100,000		100,000
Scotia Capital USA, Inc., (0.42%, dated 3/31/21, due 4/1/21; proceeds $350,004; fully collateralized by various Corporate Bonds; 3.55% - 7.75% due 6/26/21 - 11/15/27; valued at $371,000)		350,000		350,000
Societe Generale, (0.18%, dated 3/31/21, due 4/1/21; proceeds $135,001; fully collateralized by various Corporate Bonds; 0.25% - 8.25% due 5/12/21 - 7/1/60; valued at 141,751) (e)		135,000		135,000
Societe Generale, (0.19%, dated 3/17/21, due 6/17/21; proceeds $220,107; fully collateralized by various Common Stocks; valued at $231,112) (e)		220,000		220,000
TD Securities (USA) LLC, (0.17%, dated 3/31/21, due 4/1/21; proceeds $104,000; fully collateralized by various Corporate Bonds; 0.65% - 7.75% due 6/15/21 - 8/15/60; valued at 109,200)		104,000		104,000
Wells Fargo Securities LLC, (0.17%, dated 3/31/21, due 4/1/21; proceeds $170,001; fully collateralized by various Corporate Bonds; 0.00% - 8.00% due 4/7/21 - 3/24/51; valued at 178,500) (e)		170,000		170,000
Wells Fargo Securities LLC, (0.27%, dated 3/26/21, due 4/1/21; proceeds $25,001; fully collateralized by various Common Stocks and Preferred Stocks; valued at $52,500) (e)		25,000		25,000
Wells Fargo Securities LLC, (0.42%, dated 3/19/21, due 6/11/21; proceeds $75,074; fully collateralized by various Common Stocks and Preferred Stocks; valued at $78,750) (e)		75,000		75,000

	Face Amount (000)		Value (000)
Wells Fargo Securities LLC, (0.44%, dated 2/5/21, due 5/5/21; proceeds $170,185; fully collateralized by various Common Stocks and Preferred Stocks; valued at $178,500) (e)	$	170,000	$	170,000
Total Repurchase Agreements (Cost $4,297,000)				4,297,000
Time Deposits (1.5%)
Domestic Bank (1.4%)
National Bank of Canada
0.06%, 4/1/21		230,000		230,000
International Bank (0.1%)
Canadian Imperial Bank of Commerce
0.04%, 4/1/21		15,000		15,000
Total Time Deposits (Cost $245,000)				245,000
Total Investments (100.0%) (Cost $16,368,985) (f)(g)				16,373,735
Other Assets in Excess of Liabilities (0.0%) (h)				646
Net Assets (100.0%)			$	16,374,381

(a)  The rates shown are the effective yields at the date of purchase.

(b)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(c)  All or a portion of the security is subject to delayed delivery.

(d)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(e)  Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2021.

(f)  Securities are available for collateral in connection with securities purchased on a forward commitment basis.

(g)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $4,967,000 and the aggregate gross unrealized depreciation is approximately $217,000, resulting in net unrealized appreciation of approximately $4,750,000.

(h)  Amount is less than 0.05%.

LIBOR  London Interbank Offered Rate.

SOFR  Secured Overnight Financing Rate.

USD  United States Dollar.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Commercial Paper		34.4	%
Repurchase Agreements		26.2
Certificates of Deposit		19.3
Floating Rate Notes		15.9
Other*		4.2
Total Investments		100.0	%

*  Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Ultra-Short Income Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $16,368,985, including value of repurchases agreements of $4,297,000)	$	16,373,735
Cash		316
Receivable for Fund Shares Sold		53,314
Receivable for Investments Sold		20,008
Interest Receivable		11,269
Other Assets		1,254
Total Assets		16,459,896
Liabilities:
Payable for Fund Shares Redeemed		52,378
Payable for Investments Purchased		25,751
Payable for Advisory Fees		4,452
Payable for Shareholder Services Fees — Institutional Class		97
Payable for Shareholder Services Fees — Class A		813
Payable for Administration Fees		1,108
Dividends Payable		238
Payable for Custodian Fees		149
Payable for Professional Fees		35
Payable for Transfer Agency Fees — Class IR		8
Payable for Transfer Agency Fees — Institutional Class		2
Payable for Transfer Agency Fees — Class A		1
Other Liabilities		483
Total Liabilities		85,515
Net Assets	$	16,374,381
Net Assets Consist of:
Paid-in-Capital	$	16,433,237
Total Accumulated Loss		(58,856	)
Net Assets	$	16,374,381
CLASS IR:
Net Assets	$	6,349,765
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		636,174,286
Net Asset Value, Offering and Redemption Price Per Share	$	9.98
Institutional Class:
Net Assets	$	2,238,232
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		224,279,192
Net Asset Value, Offering and Redemption Price Per Share	$	9.98
CLASS A:
Net Assets	$	7,786,384
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		780,247,198
Net Asset Value, Offering and Redemption Price Per Share	$	9.98

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Ultra-Short Income Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	42,897
Expenses:
Advisory Fees (Note B)		17,962
Shareholder Services Fees — Institutional Class (Note D)		593
Shareholder Services Fees — Class A (Note D)		11,424
Administration Fees (Note C)		7,185
Registration Fees		863
Custodian Fees (Note F)		209
Professional Fees		123
Trustees' Fees and Expenses		117
Shareholder Reporting Fees		54
Transfer Agency Fees — Class IR (Note E)		22
Transfer Agency Fees — Institutional Class (Note E)		6
Transfer Agency Fees — Class A (Note E)		5
Pricing Fees		7
Other Expenses		194
Total Expenses		38,764
Waiver of Advisory Fees (Note B)		(7,247	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(25	)
Reimbursement of Class Specific Expenses — Institutional Class (Note B)		(6	)
Waiver of Shareholder Services Fees — Class A (Note D)		(4,838	)
Net Expenses		26,648
Net Investment Income		16,249
Realized Gain:
Investments Sold		2,210
Change in Unrealized Appreciation (Depreciation):
Investments		(15,160	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(12,950	)
Net Increase in Net Assets Resulting from Operations	$	3,299

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Ultra-Short Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	16,249		$	218,626
Net Realized Gain (Loss)		2,210			(67,256	)
Net Change in Unrealized Appreciation (Depreciation)		(15,160	)		7,979
Net Increase in Net Assets Resulting from Operations		3,299			159,349
Dividends and Distributions to Shareholders:
Class IR		(8,413	)		(61,803	)
Institutional Class		(2,472	)		(39,633	)
Class A		(5,364	)		(117,190	)
Total Dividends and Distributions to Shareholders		(16,249	)		(218,626	)
Capital Share Transactions:(1)
Class IR:
Subscribed		6,018,790			9,745,593
Distributions Reinvested		6,389			49,827
Redeemed		(5,059,554	)		(9,159,258	)
Institutional Class:
Subscribed		750,268			4,112,421
Distributions Reinvested		2,471			39,629
Redeemed		(1,057,471	)		(4,681,680	)
Class A:
Subscribed		2,603,432			12,175,182
Distributions Reinvested		5,362			117,124
Redeemed		(4,739,499	)		(13,117,055	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(1,469,812	)		(718,217	)
Total Decrease in Net Assets		(1,482,762	)		(777,494	)
Net Assets:
Beginning of Period		17,857,143			18,634,637
End of Period	$	16,374,381		$	17,857,143
(1) Capital Share Transactions:
Class IR:
Shares Subscribed		602,887			974,475
Shares Issued on Distributions Reinvested		640			4,979
Shares Redeemed		(506,884	)		(915,518	)
Net Increase in Class IR Shares Outstanding		96,643			63,936
Institutional Class:
Shares Subscribed		75,169			410,877
Shares Issued on Distributions Reinvested		248			3,960
Shares Redeemed		(105,939	)		(468,012	)
Net Decrease in Institutional Class Shares Outstanding		(30,522	)		(53,175	)
Class A:
Shares Subscribed		260,836			1,217,011
Shares Issued on Distributions Reinvested		537			11,703
Shares Redeemed		(474,875	)		(1,311,473	)
Net Decrease in Class A Shares Outstanding		(213,502	)		(82,759	)

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Ultra-Short Income Portfolio

	Class IR
	Six Months Ended March 31, 2021			Year Ended September 30,												Period from April 28, 2016(1) to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			September 30, 2016
Net Asset Value, Beginning of Period	$	9.99		$	10.02		$	10.01		$	10.01		$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.01			0.13			0.25			0.19			0.12			0.03
Net Realized and Unrealized Gain (Loss)		(0.01	)		(0.03	)		0.01			(0.01	)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.00			0.10			0.26			0.18			0.12			0.03
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.13	)		(0.25	)		(0.18	)		(0.11	)		(0.03	)
Net Realized Gain		—			—			—			(0.00	)(3)		(0.00	)(3)		—
Total Distributions		(0.01	)		(0.13	)		(0.25	)		(0.18	)		(0.11	)		(0.03	)
Net Asset Value, End of Period	$	9.98		$	9.99		$	10.02		$	10.01		$	10.01		$	10.00
Total Return(4)		0.03	%(5)		1.03	%		2.68	%		1.87	%		1.18	%		0.26	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,349,765		$	5,388,750		$	4,765,201		$	1,840,647		$	1,122,452		$	276,348
Ratio of Expenses Before Expense Limitation		0.30	%(6)		0.31	%		0.30	%		0.30	%		0.30	%		0.42	%(6)
Ratio of Expenses After Expense Limitation		0.22	%(6)		0.24	%		0.24	%		0.23	%		0.22	%		0.18	%(6)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.24	%		0.24	%		N/A			N/A			N/A
Ratio of Net Investment Income		0.26	%(6)		1.34	%		2.53	%		1.86	%		1.16	%		0.61	%(6)
Portfolio Turnover Rate		N/A(7)			N/A(7)			N/A(7)			N/A(7)			N/A(7)			N/A(7)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Not annualized.

(6)  Annualized.

(7)  During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Ultra-Short Income Portfolio

	Institutional Class
	Six Months Ended March 31, 2021			Year Ended September 30,												Period from April 28, 2016(1) to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			September 30, 2016
Net Asset Value, Beginning of Period	$	9.99		$	10.02		$	10.01		$	10.01		$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.01			0.14			0.25			0.18			0.11			0.02
Net Realized and Unrealized Gain (Loss)		(0.01	)		(0.04	)		0.01			0.00	(3)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.00			0.10			0.26			0.18			0.11			0.02
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.13	)		(0.25	)		(0.18	)		(0.10	)		(0.02	)
Net Realized Gain		—			—			—			(0.00	)(3)		(0.00	)(3)		—
Total Distributions		(0.01	)		(0.13	)		(0.25	)		(0.18	)		(0.10	)		(0.02	)
Net Asset Value, End of Period	$	9.98		$	9.99		$	10.02		$	10.01		$	10.01		$	10.00
Total Return(4)		0.00	%(5)(6)		0.98	%		2.62	%		1.82	%		1.13	%		0.24	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,238,232		$	2,544,657		$	3,085,210		$	2,722,775		$	1,695,589		$	196,092
Ratio of Expenses Before Expense Limitation		0.35	%(7)		0.36	%		0.34	%		0.35	%		0.35	%		0.48	%(7)
Ratio of Expenses After Expense Limitation		0.27	%(7)		0.29	%		0.29	%		0.28	%		0.27	%		0.23	%(7)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.29	%		0.29	%		N/A			N/A			N/A
Ratio of Net Investment Income		0.21	%(7)		1.39	%		2.48	%		1.84	%		1.09	%		0.65	%(7)
Portfolio Turnover Rate		N/A(8)			N/A(8)			N/A(8)			N/A(8)			N/A(8)			N/A(8)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Amount is less than 0.005%.

(6)  Not annualized

(7)  Annualized.

(8)  During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Ultra-Short Income Portfolio

	Class A
	Six Months Ended March 31, 2021			Year Ended September 30,												Period from April 28, 2016(1) to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			September 30, 2016
Net Asset Value, Beginning of Period	$	9.99		$	10.02		$	10.01		$	10.01		$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.01			0.12			0.23			0.17			0.09			0.01
Net Realized and Unrealized Gain (Loss)		(0.01	)		(0.04	)		0.01			(0.01	)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.00			0.08			0.24			0.16			0.09			0.01
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.11	)		(0.23	)		(0.16	)		(0.08	)		(0.01	)
Net Realized Gain		—			—			—			(0.00	)(3)		(0.00	)(3)		—
Total Distributions		(0.01	)		(0.11	)		(0.23	)		(0.16	)		(0.08	)		(0.01	)
Net Asset Value, End of Period	$	9.98		$	9.99		$	10.02		$	10.01		$	10.01		$	10.00
Total Return(4)		(0.04	)%(5)		0.80	%		2.42	%		1.61	%		0.92	%		0.14	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,786,384		$	9,923,736		$	10,784,226		$	6,266,177		$	2,581,479		$	164,528
Ratio of Expenses Before Expense Limitation		0.55	%(6)		0.56	%		0.55	%		0.55	%		0.55	%		0.68	%(6)
Ratio of Expenses After Expense Limitation		0.36	%(6)		0.46	%		0.49	%		0.48	%		0.47	%		0.44	%(6)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.46	%		0.49	%		N/A			N/A			N/A
Ratio of Net Investment Income		0.12	%(6)		1.16	%		2.29	%		1.68	%		0.91	%		0.48	%(6)
Portfolio Turnover Rate		N/A(7)			N/A(7)			N/A(7)			N/A(7)			N/A(7)			N/A(7)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Not annualized.

(6)  Annualized.

(7)  During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust is comprised of thirteen separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Ultra-Short Income Portfolio. The Fund seeks current income with capital preservation while maintaining liquidity. The Fund offers three classes of shares — Class IR, Institutional Class and Class A.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Trust in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

In March 2020, the Financial Accounting Standards Board ("FASB") issued an Accounting Standard Update, ASU 2020-04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate ("LIBOR") and other Interbank Offered Rate ("IBOR") based reference rates at the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 on the Fund's investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform.

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on

an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers. and (2) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Short-Term Investments
Certificates of Deposit	$	—	$	3,154,673	$	—	$	3,154,673
Commercial Paper		—		5,624,463		—		5,624,463
Corporate Bonds		—		450,644		—		450,644
Floating Rate Notes		—		2,601,955		—		2,601,955
Repurchase Agreements		—		4,297,000		—		4,297,000
Time Deposits		—		245,000		—		245,000
Total Short-Term Investments		—		16,373,735		—		16,373,735
Total Assets	$	—	$	16,373,735	$	—	$	16,373,735

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

3.  Repurchase Agreements: The Fund may enter into repurchase agreements under which the Fund lends cash and takes possession of securities with an agreement that the counterparty will repurchase such securities. In connection with transactions in repurchase agreements, a bank as custodian for the Fund takes possession of the underlying securities which are held as collateral, with a market value at least equal to the amount of the repurchase transaction, including principal and accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to determine that the value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and, when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian for investment companies advised by the Fund's Adviser. The Fund will participate on a pro rata basis with the other investment companies in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

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 Statement 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 repurchase agreement reducing the net settlement amount to zero.

4.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the 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.

5.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

6.  Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the close of each business day. Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually.

7.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services and transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.20% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.25% for Class IR shares, 0.30% for Institutional Class shares and 0.45% for Class A shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

appropriate. In addition, the Adviser may make additional voluntary fee waivers and/or expense reimbursements. The ratios of expenses to average net assets disclosed in the Fund's Financial Highlights may be lower than the maximum expense ratios due to these additional fee waivers and/or expense reimbursements. The Adviser may also waive additional advisory fees and/or reimburse expenses to enable the Fund to maintain a minimum level of daily net investment income. For the six months ended March 31, 2021, approximately $7,247,000 of advisory fees were waived and approximately $31,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to the Institutional Class shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.05% of the Fund's average daily net assets attributable to the Institutional Class shares.

The Trust has adopted a Shareholder Services Plan with respect to the Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to the Class A shares. The Distributor has agreed to waive the 12b-1 fees on Class A shares of the Fund to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. This waiver will continue for at least one year or until such time as the Trustees act to discontinue all or a portion of such waiver when it deems such action is appropriate. For the six months ended

March 31, 2021, this waiver amounted to approximately $4,570,000.

The Distributor has agreed to reduce its distribution fees to enable the Fund to maintain a minimum level of daily net investment income. For the six months ended March 31, 2021, this waiver amounted to approximately $268,000.

The shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Institutional Class and Class A shares.

E. Dividend Disbursing and Transfer/Co-Transfer Agent: The Trust's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Trust pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.

Morgan Stanley Services Company Inc. serves as Co-Transfer Agent and provides certain transfer agency services to the Fund with respect to certain direct transactions with the Fund.

F. Custodian Fees: State Street (the "Custodian") also serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Trust as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent 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

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From: Ordinary Income (000)		2019 Distributions Paid From: Ordinary Income (000)
$	218,626	$	351,961

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains

(losses) on certain investment transactions and the timing of the deductibility of certain expenses.

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2020.

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	2,077	$	—

At September 30, 2020, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $67,256,000 that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 59.2%.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

L. LIBOR Risk: The Fund's investments, payment obligations and financing terms may be based on floating rates, such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates (each, a "Reference Rate"). These Reference Rates are generally intended to represent the rate at which contributing banks may obtain short-term borrowings from each other within certain financial markets. On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after the end of 2021. This announcement and any additional regulatory or market changes may have an adverse impact on the Fund or its investments.

In advance of 2022, regulators and market participants are currently engaged in identifying successor Reference Rates ("Alternative Reference Rates"). Additionally, prior to the end of 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through marketwide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to the Fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of Alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by the Fund or on its overall financial condition or results of operations.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Trustees (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice  April 2021

FACTS	WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?	All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

To limit our sharing	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?	Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?	We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?	Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

Definitions

Investment Management Affiliates	MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates	Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates	Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing	A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

Frank L. Bowman
Kathleen A. Dennis
Nancy C. Everett
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia Maleski
W. Allen Reed, Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Co-Transfer Agent

Morgan Stanley Services Company, Inc.
522 Fifth Avenue
New York, New York 10036

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Trustees

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable fund of Morgan Stanley Institutional Fund Trust, which describes in detail the fund's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Fund, please visit our website at www.morganstanley.com/im/shareholderreports or call toll free 1 (800) 548-7786.

25

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTUSISAN
3566162 EXP 05.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Ultra-Short Municipal Income Portfolio

Semi-Annual Report

March 31, 2021

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	7
Statement of Operations	8
Statements of Changes in Net Assets	9
Financial Highlights	10
Notes to Financial Statements	13
Liquidity Risk Management Program	18
U.S. Customer Privacy Notice	19
Trustee and Officer Information	22

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or statement of additional information ("SAI"), which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations and describes in detail each of the Fund's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access fund information including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.

There is no assurance that a fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Ultra-Short Municipal Income Portfolio (the "Fund") performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2021

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Expense Example

Ultra-Short Municipal Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2021 and held for the entire six-month period.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/20		Actual Ending Account Value 3/31/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Ultra-Short Municipal Income Portfolio Class IR	$	1,000.00	$	1,000.50	$	1,024.28	$	0.65	$	0.66		0.13	%
Ultra-Short Municipal Income Portfolio Institutional Class		1,000.00		999.10		1,023.88		1.05		1.06		0.21
Ultra-Short Municipal Income Portfolio Class A		1,000.00		1,000.00		1,023.83		1.10		1.11		0.22

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments

Ultra-Short Municipal Income Portfolio

	Face Amount (000)		Value (000)
Weekly Variable Rate Bonds (a) (36.3%)
Blytheville Arkansas Industrial, AR, Development Revenue Variable Refunding Revenue Bonds Nucor Corp. 2002 0.14%, 1/2/33	$	2,000	$	2,000
Gibson County Indiana Pollution Control Revenue Adj Rt Bond, IN, Toyota Motor Manufacturing 1999A 0.09%, 1/1/29		9,000		9,000
Iowa State Finance Authority, LA, Midwestern Disaster Area Revenue Bonds Archer-Daniels-Midland Company Project Series 2012 0.10%, 12/1/45		10,000		10,000
Solid Waste Facilities Revenue Bonds, Mid America Energy Company Project, Ser 2016 B (AMT) 0.12%, 12/1/46		5,500		5,500
Solid Waste Facilities Revenue Bonds, Mid America Energy Company Project, Ser 2017 0.11%, 12/1/47		5,500		5,500
JEA, Florida Variable Rate Electric System Revenue Bonds, Series Three 2008A 0.10%, 10/1/36		10,000		10,000
Parish of St. James, State of Louisiana Revenue Bonds, LA, Nucor Steel Louisiana LLC Project, Series 2010B-1, Gulf Opportunity Zone Bonds 0.14%, 11/1/40		1,500		1,500
RBC Municipal Products Trust Inc, NA, Various States Certificates E-140 0.08%, 10/1/24 (b)		2,000		2,000
Various States Certificates E-146 0.08%, 11/1/24 (b)		3,000		3,000
RBC Municipal Products Trust, Inc., NY, New York City Variable Ser 2006 Subser I-5 Floater Certificates Ser 2019-E133 0.08%, 5/1/23 (b)		3,000		3,000
Tender Option Bond Trust, TX, Harris County Cultural Education Facilities Financing Corporation Baylor College of Medicine Ser B Puttable Floating Rate Receipts Ser 2019-BAML 5012 0.10%, 11/15/46 (b)		10,255		10,255
Utah Water Finance Agency, UT, Ser 2008 B 0.09%, 10/1/37		11,000		11,000
Washington County, NE, Nebraska Industrial Development Revenue Bonds (Cargill, Inc. Recovery Zone Facility Project) Series 2010B 0.08%, 12/1/40		10,000		10,000
Total Weekly Variable Rate Bonds (Cost $82,755)				82,755
Daily Variable Rate Bonds (a) (13.9%)
Bay County, Florida Industrial Development Revenue Bonds (Gulf Power Company Project), Series 2020 0.10%, 6/1/50		6,000		6,000

	Face Amount (000)		Value (000)
Columbia, AL, Industrial Development Board Revenue Variable Taxable Revenue Bonds, Alabama Power Company 1997 0.12%, 11/1/21	$	8,000	$	8,000
Development Authority of Monroe County, GA, Revenue Bonds (Florida Power And Light Company Project), Series 2019 0.10%, 6/1/49		5,000		5,000
East Baton Rouge Parish, LA, Exxon Mobil Corp Ser 2010 B 0.08%, 12/1/40		2,500		2,500
JP Morgan Chase & Co., OT, Variable Rate Muni Term Preferred- Invesco Value Municipal Income Trust PUTTERs Ser 5027 (AMT) 0.23%, 6/1/21 (b)		3,500		3,500
Metropolitan Water District of Southern California, Water Ser 2017 E 0.30%, 7/1/37		4,500		4,500
RBC Municipal Products Trust, Inc., MO, Health and Educational Facilities Authority of The State of Missouri SSM Health Ser 2019 A Floater Certificates Ser 2019-C17 0.10%, 12/1/39 (b)		2,000		2,000
Total Daily Variable Rate Bonds (Cost $31,500)				31,500
Closed-End Investment Companies (a) (8.1%)
BlackRock MuniYield Investment Fund, Inc. (MYF), OT, VRDP Ser W-7-594 (AMT) 0.14%, 6/1/41 (b)		4,000		4,000
BlackRock MuniYield Quality Fund III, Inc. (MYI), OT, VRDP (AMT) 0.14%, 6/1/41 (b)		2,400		2,400
Nuveen AMT-Free Municipal Credit Income Fund, MFP Share Ser B 0.41%, 3/1/29 (b)		5,000		5,000
Nuveen New York AMT Free Quality Municipal Income Fund 800, Ser E (AMT) 0.47%, 5/1/47 (b)		5,000		5,000
Western Asset Managed Municipals Fund Inc, OT, VRDP Ser 1 (AMT) 0.14%, 3/4/45 (b)		2,000		2,000
Total Closed-End Investment Companies (Cost $18,400)				18,400
Floating Rate Notes (a) (4.8%)
Michigan Finance Authority, MI, Hospital Revenue Refunding Bonds, McLaren Health Care Series 2015D-2 0.55%, 10/15/38		7,500		7,501
New York City Trust Cultural Resources Revenue IAM Commercial Paper 3/A2 Ser 2014 B1 Refunding Bonds, NY, American Museum of Natural History 2014 B-1 0.15%, 4/1/44		3,000		3,000
The Black Belt Energy Gas District Gas Supply Revenue Bonds, AL, Series 2016A 4.00%, 7/1/46		500		503
Total Floating Rate Notes (Cost $11,002)				11,004

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Municipal Income Portfolio

	Face Amount (000)		Value (000)
Quarterly Variable Rate Bonds (a) (13.9%)
Franklin County, OH, CHE Trinity Health Credit Group Ser 2013 0.10%, 12/1/46	$	2,500	$	2,500
Idaho Health Facilities Authority, ID, Hospital Revenue Bonds CHE Trinity Health Credit Group, Series 2013 0.10%, 12/1/48		2,500		2,500
Indiana Finance Authority, IN, Economic Development Refunding Revenue Bonds, Series 2010 A (AMT) 0.20%, 5/1/34		2,000		2,000
Lewisburg, TN, Industrial Development Board Solid Waste Disposal Waste Management Tennessee Project Ser 2012 (AMT) 0.18%, 7/2/35		3,250		3,250
Miami-Dade County, FL, Industrial Development
Authority Solid Waste Management, Inc. of Florida Project, Ser 2007 0.45%, 9/1/27		5,000		5,005
Ser 2011 (AMT) 0.55%, 11/1/41		2,250		2,252
Montgomery County, MD, CHE Trinity Health Credit Group Ser 2013 0.10%, 12/1/41		3,000		3,000
New York State Environmental Facilities Corporation, NY, Solid Waste Disposal Refunding Revenue Bonds, Waste Management Inc Project, Series 2012 0.18%, 5/1/30		1,750		1,750
Pennsylvania Economic Development Financing Authority, PA, Solid Waste Refunding Revenue Bonds, (Republic Services, Inc. Project) Series 2010 B 0.18%, 12/1/30		3,500		3,500
Ser 2019A (AMT) 0.20%, 4/1/34		2,000		2,000
The Industrial Development Authority of The City of Phoenix, AZ, Solid Waste Disposal Revenue Refunding Bonds Series 2013 0.18%, 12/1/35		4,000		4,000
Total Quarterly Variable Rate Bonds (Cost $31,750)				31,757
Semi-Annual Variable Rate Bonds (a) (8.2%)
Mississippi Business Finance Corporation Gulf Opportunity Zone Bonds, MI, National Rural Utilities Coast Electric Power Association Project Ser 2007C 0.30%, 5/1/37		7,201		7,202

	Face Amount (000)		Value (000)
RBC Municipal Products Trust, Inc., CO, City and County of Denver, CO Airport System — Subordinate Bonds Floater Certificates Ser 2019-G114 0.30%, 12/1/26 (b)	$	6,000	$	6,000
RBC Municipal Products Trust, Inc., FL, Broward County Port Facilities Revenue Ser B Floater Certificates Ser 2019-G115 0.30%, 9/1/27 (b)		4,000		4,000
RBC Municipal Products Trust, Inc., SC, Partners Healthcare System Adjustable Ser 2019 T-2 Floater Certificates Ser 2018-E-130 0.25%, 10/1/25 (b)		1,500		1,500
Total Semi-Annual Variable Rate Bond (Cost $18,701)				18,702
Commercial Paper (c) (9.6%)
Lincoln Nebraska, NE, Electric System Revenue IAM Commercial Paper, 3/A2 Series 1995 0.13%, 5/19/21		8,000		8,001
York County, SC, National Rural Utilities Cooperative Finance Corporation Pollution Control Revenue IAM Commercial Paper 3/A2 Series 2000 0.09%, 4/1/21		4,000		4,000
Texas, TX, A&M University Revenue IAM Commercial Paper Notes, 3/A2 Series B 0.20%, 4/6/21		10,000		10,000
Total Commercial Paper (Cost $22,000)				22,001
Municipal Bonds & Notes (8.5%)
Broome County, NY, Series 2020 BANs 1.50%, 4/30/21		7,500		7,507
State of Texas, TX, Series 2020 TRANs 4.00%, 8/26/21		11,000		11,174
The Black Belt Energy Gas District Gas Supply Revenue Bond, AL, Series 2021A 4.00%, 12/1/21 (d)		325		332
4.00%, 6/1/22 (d)		250		260
Total Municipal Bonds & Notes (Cost $19,266)				19,273
Total Investments (103.3%) (Cost $235,374) (e)(f)				235,392
Liabilities in Excess of Other Assets (–3.3%)				(7,514	)
Net Assets (100.0%)			$	227,878

(a)  Floating or variable rate securities: The rates disclosed are as of March 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(b)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(c)  The rates shown are the effective yields at the date of purchase.

(d)  When-issued security.

(e)  Securities are available for collateral in connection with purchase of when-issued security.

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Municipal Income Portfolio

(f)  At March 31, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $18,000 and the aggregate gross unrealized depreciation is approximately $0, resulting in net unrealized appreciation of approximately $18,000.

AMT  Alternative Minimum Tax.

BANs  Bond Anticipations Notes.

PUTTERs  Puttable Tax-Exempt Receipts.

TRANs  Tax and Revenue Anticipation Notes.

VRDP  Variable Rate Demand Preferred.

Portfolio Composition

Classification	Percentage of Total Investments
Weekly Variable Rate Bonds		35.2	%
Quarterly Variable Rate Bonds		13.5
Daily Variable Rate Bonds		13.4
Commercial Paper		9.3
Municipal Bonds & Notes		8.2
Semi-Annual Variable Rate Bonds		7.9
Closed-End Investment Companies		7.8
Other*		4.7
Total Investments		100.0	%

*  Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Ultra-Short Municipal Income Portfolio

Statement of Assets and Liabilities	March 31, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $235,374)	$	235,392
Cash		164
Receivable for Investments Sold		2,699
Interest Receivable		364
Receivable for Fund Shares Sold		363
Due from Adviser		29
Other Assets		72
Total Assets		239,083
Liabilities:
Payable for Investments Purchased		10,592
Payable for Fund Shares Redeemed		540
Payable for Professional Fees		36
Payable for Shareholder Services Fees — Institutional Class		—	@
Payable for Shareholder Services Fees — Class A		6
Payable for Administration Fees		16
Payable for Custodian Fees		5
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Transfer Agency Fees — Institutional Class		—	@
Payable for Transfer Agency Fees — Class A		—	@
Other Liabilities		10
Total Liabilities		11,205
Net Assets	$	227,878
Net Assets Consist of:
Paid-in-Capital	$	227,817
Total Distributable Earnings		61
Net Assets	$	227,878
CLASS IR:
Net Assets	$	98,358
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		9,833,707
Net Asset Value, Offering and Redemption Price Per Share	$	10.00
INSTITUTIONAL CLASS:
Net Assets	$	7,503
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		749,181
Net Asset Value, Offering and Redemption Price Per Share	$	10.01
CLASS A:
Net Assets	$	122,017
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		12,196,752
Net Asset Value, Offering and Redemption Price Per Share	$	10.00

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Ultra-Short Municipal Income Portfolio

Statement of Operations	Six Months Ended March 31, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	313
Expenses:
Advisory Fees (Note B)		273
Shareholder Services Fees — Institutional Class (Note D)		4
Shareholder Services Fees — Class A (Note D)		153
Administration Fees (Note C)		109
Professional Fees		55
Registration Fees		48
Shareholder Reporting Fees		8
Custodian Fees (Note F)		6
Trustees' Fees and Expenses		4
Pricing Fees		3
Transfer Agency Fees — Class IR (Note E)		1
Transfer Agency Fees — Institutional Class (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Other Expenses		10
Total Expenses		676
Waiver of Advisory Fees (Note B)		(273	)
Expenses Reimbursed by Adviser (Note B)		(67	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Reimbursement of Class Specific Expenses — Institutional Class (Note B)		(1	)
Waiver of Shareholder Services Fees — Institutional Class (Note D)		(1	)
Waiver of Shareholder Services Fees — Class A (Note D)		(85	)
Net Expenses		248
Net Investment Income		65
Realized Gain:
Investments Sold		2
Change in Unrealized Appreciation (Depreciation):
Investments		(9	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(7	)
Net Increase in Net Assets Resulting from Operations	$	58

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Ultra-Short Municipal Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2021 (unaudited) (000)			Year Ended September 30, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	65		$	2,228
Net Realized Gain		2			—	@
Net Change in Unrealized Appreciation (Depreciation)		(9	)		26
Net Increase in Net Assets Resulting from Operations		58			2,254
Dividends and Distributions to Shareholders:
Class IR		(56	)		(623	)
Institutional Class		(1	)		(317	)
Class A		(8	)		(1,288	)
Total Dividends and Distributions to Shareholders		(65	)		(2,228	)
Capital Share Transactions:(1)
Class IR:
Subscribed		52,500			157,978
Distributions Reinvested		56			622
Redeemed		(72,531	)		(107,472	)
Institutional Class:
Subscribed		5			37,600
Distributions Reinvested		1			316
Redeemed		(2,500	)		(68,136	)
Class A:
Subscribed		33,113			299,894
Distributions Reinvested		8			1,286
Redeemed		(96,965	)		(248,222	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(86,313	)		73,866
Total Increase (Decrease) in Net Assets		(86,320	)		73,892
Net Assets:
Beginning of Period		314,198			240,306
End of Period	$	227,878		$	314,198
(1)   Capital Share Transactions:
Class IR:
Shares Subscribed		5,249			15,800
Shares Issued on Distributions Reinvested		6			62
Shares Redeemed		(7,253	)		(10,748	)
Net Increase (Decrease) in Class IR Shares Outstanding		(1,998	)		5,114
Institutional Class:
Shares Subscribed		—	@@		3,756
Shares Issued on Distributions Reinvested		—	@@		32
Shares Redeemed		(249	)		(6,813	)
Net Decrease in Institutional Class Shares Outstanding		(249	)		(3,025	)
Class A:
Shares Subscribed		3,311			29,992
Shares Issued on Distributions Reinvested		1			129
Shares Redeemed		(9,695	)		(24,830	)
Net Increase (Decrease) in Class A Shares Outstanding		(6,383	)		5,291

@  Amount is less than $500.

@@  Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Ultra-Short Municipal Income Portfolio

	Class IR
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Year Ended September 30, 2020			Period from December 19, 2018(1) to September 30, 2019
Net Asset Value, Beginning of Period	$	10.00		$	10.00		$	10.00
Income from Investment Operations:
Net Investment Income(2)		0.00	(3)		0.09			0.12
Net Realized and Unrealized Gain		0.00	(3)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.00	(3)		0.09			0.12
Distributions from and/or in Excess of:
Net Investment Income		(0.00	)(3)		(0.09	)		(0.12	)
Net Asset Value, End of Period	$	10.00		$	10.00		$	10.00
Total Return(4)		0.05	%(5)		0.91	%		1.19	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	98,358		$	118,335		$	67,174
Ratio of Expenses Before Expense Limitation		0.38	%(6)		0.40	%		0.52	%(6)
Ratio of Expenses After Expense Limitation		0.13	%(6)		0.13	%		0.13	%(6)
Ratio of Net Investment Income		0.10	%(6)		0.78	%		1.49	%(6)
Portfolio Turnover Rate		N/A(7)			N/A(7)			N/A(7)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Not annualized.

(6)  Annualized.

(7)  During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Ultra-Short Municipal Income Portfolio

	Institutional Class
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Year Ended September 30, 2020			Period from December 19, 2018(1) to September 30, 2019
Net Asset Value, Beginning of Period	$	10.02		$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.00	(3)		0.10			0.11
Net Realized and Unrealized Gain (Loss)		(0.01	)		0.00	(3)		0.00	(3)
Total from Investment Operations		(0.01	)		0.10			0.11
Distributions from and/or in Excess of:
Net Investment Income		(0.00	)(3)		(0.08	)		(0.11	)
Net Asset Value, End of Period	$	10.01		$	10.02		$	10.00
Total Return(4)		(0.09	)%(5)		1.01	%		1.11	%(5)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,503		$	9,997		$	40,250
Ratio of Expenses Before Expense Limitation		0.50	%(6)		0.49	%		0.62	%(6)
Ratio of Expenses After Expense Limitation		0.21	%(6)		0.23	%		0.23	%(6)
Ratio of Net Investment Income		0.02	%(6)		1.03	%		1.39	%(6)
Portfolio Turnover Rate		N/A(7)			N/A(7)			N/A(7)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Not annualized.

(6)  Annualized.

(7)  During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021

Financial Highlights

Ultra-Short Municipal Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2021 (unaudited)			Year Ended September 30, 2020			Period from December 19, 2018(1) to September 30, 2019
Net Asset Value, Beginning of Period	$	10.00		$	10.00		$	10.00
Income from Investment Operations:
Net Investment Income(2)		0.00	(3)		0.07			0.10
Net Realized and Unrealized Gain		0.00	(3)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.00	(3)		0.07			0.10
Distributions from and/or in Excess of:
Net Investment Income		(0.00	)(3)		(0.07	)		(0.10	)
Net Asset Value, End of Period	$	10.00		$	10.00		$	10.00
Total Return(4)		0.00	%(5)(6)		0.73	%		1.04	%(6)
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	122,017		$	185,866		$	132,882
Ratio of Expenses Before Expense Limitation		0.58	%(7)		0.59	%		0.72	%(7)
Ratio of Expenses After Expense Limitation		0.22	%(7)		0.32	%		0.33	%(7)
Ratio of Net Investment Income		0.01	%(7)		0.68	%		1.30	%(7)
Portfolio Turnover Rate		N/A(8)			N/A(8)			N/A(8)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

(8)  During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of thirteen separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Ultra-Short Municipal Income Portfolio. The Fund seeks current income exempt from federal income tax and capital preservation while maintaining liquidity. The Fund offers three classes of shares — Class IR, Institutional Class and Class A.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Trust in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid

and asked prices obtained from brokers or dealers; and (2) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Trust'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 Trust's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Trust's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Trust to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions

13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Short-Term Investments
Weekly Variable Rate Bonds	$	—	$	82,755	$	—	$	82,755
Daily Variable Rate Bonds		—		31,500		—		31,500
Closed-End Investment Companies		—		18,400		—		18,400
Floating Rate Notes		—		11,004		—		11,004
Quarterly Variable Rate Bonds		—		31,757		—		31,757
Semi-Annual Variable Rate Bonds		—		18,702		—		18,702
Commercial Paper		—		22,001		—		22,001
Municipal Bonds & Notes		—		19,273		—		19,273
Total Short-Term Investments		—		235,392		—		235,392
Total Assets	$	—	$	235,392	$	—	$	235,392

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

3.  When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the 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.

4.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown.

14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

5.  Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the close of each business day. Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually.

6.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services and transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.20% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.25% for Class IR shares, 0.35% for Institutional Class shares and 0.40% for Class A shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. In addition, the Adviser may make additional vol-

untary fee waivers and/or expense reimbursements. The ratios of expenses to average net assets disclosed in the Fund's Financial Highlights may be lower than the maximum expense ratios due to these additional fee waivers and/or expense reimbursements. The Adviser may also waive additional advisory fees and/or reimburse expenses to enable the Fund to maintain a minimum level of daily net investment income. For the six months ended March 31, 2021, approximately $273,000 of advisory fees were waived and approximately $69,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to the Institutional Class shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.10% of the Fund's average daily net assets attributable to the Institutional Class shares.

The Trust has adopted a Shareholder Services Plan with respect to the Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.20% of the Fund's average daily net assets attributable to the Class A shares. The Distributor has agreed to waive the 12b-1 fee on Class A shares of the Fund to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. This waiver will continue for at least one year or until such time as the Trustees act to discontinue all or a portion of such waiver when it deems such action is appropriate. For the six months ended March 31, 2021, this waiver amounted to approximately $38,000.

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The Distributor has agreed to reduce its distribution fees to enable the Fund to maintain a minimum level of daily net investment income. For the six months ended March 31, 2021, this waiver amounted to approximately $48,000.

The shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Institutional Class and Class A shares.

E. Dividend Disbursing and Transfer/Co-Transfer Agent: The Trust's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Trust pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.

Morgan Stanley Services Company Inc. serves as Co-Transfer Agent and provides certain transfer agency services to the Fund with respect to certain direct transactions with the Fund.

F. Custodian Fees: State Street (the "Custodian") also serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Trust as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2021, the Fund engaged in cross-trade purchases of approximately $9,700,000 and sales of approximately $2,000,000, which resulted in no net realized gains or losses.

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 op-

tions under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the two-year period ended September 30, 2020, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From: Tax-Exempt Income (000)		2019 Distributions Paid From: Tax-Exempt Income (000)
$	2,228	$	1,474

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Notes to Financial Statements (cont'd)

(losses) on certain investment transactions and the timing of the deductibility of certain expenses.

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2020.

At September 30, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Tax-Exempt Income (000)		Undistributed Long-Term Capital Gain (000)
$	189	$	—

At September 30, 2020, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $1,000 that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended March 31, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At March 31, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 85.8%.

K. Market Risk: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy over-

all, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Trustees (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 3-4, 2021, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2020, through December 31, 2020, as required under the Liquidity Rule, and discussed the impact of the COVID-19 pandemic on liquidity and the LRS's assessment of liquidity risk during the reporting period, including during the distressed market environment caused by the onset of the COVID-19 pandemic. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice  April 2021

FACTS	WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?	All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

To limit our sharingCall toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

Questions? Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice? Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?	We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?	Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Definitions

Investment Management Affiliates	MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates	Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd)  April 2021

Non-affiliates	Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing	A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2021 (unaudited)

Trustee and Officer Information

Trustees

Frank L. Bowman
Kathleen A. Dennis
Nancy C. Everett
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia Maleski
W. Allen Reed, Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Co-Transfer Agent

Morgan Stanley Services Company, Inc.
522 Fifth Avenue
New York, New York 10036

Custodian

State Street ank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Trustees

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable fund of Morgan Stanley Institutional Fund Trust, which describes in detail the fund's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Fund, please visit our website at www.morganstanley.com/im/shareholderreports or call toll free 1 (800) 548-7786.

22

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2021 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTUSMISAN
3566171 EXP 05.31.22

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.

Item 11. Controls and Procedures

(a)  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b)  There were no changes in the registrant's internal control over financial reporting that

occurred during the most recent fiscal half-year period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed End Management Investment Companies.

Not Applicable.

Item 13. Exhibits

(a) Code of Ethics – Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant as part of EX-99.CERT.

(c) Section 906 certification.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Institutional Fund Trust

/s/ John H. Gernon

John H. Gernon

Principal Executive Officer

May 18, 2021

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

May 18, 2021

/s/ Francis Smith

Francis Smith

Principal Financial Officer

May 18, 2021