# EDGAR Filing Document

**Accession Number:** 0000836487
**File Stem:** 0001104659-23-030897
**Filing Date:** 2023-3
**Character Count:** 4427647
**Document Hash:** 3bc63e6a1ab9cb722979f28de74088e1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-030897.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001104659-23-030897

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 202

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**EFFECTIVENESS DATE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MORGAN STANLEY INSTITUTIONAL FUND INC
- **CENTRAL INDEX KEY:** 0000836487
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-05624
- **FILM NUMBER:** 23721717

**BUSINESS ADDRESS:**
- **STREET 1:** 522 FIFTH AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** 800-548-7786

**MAIL ADDRESS:**
- **STREET 1:** 522 FIFTH AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MORGAN STANLEY DEAN WITTER INSTITUTIONAL FUND INC
- **DATE OF NAME CHANGE:** 19990329

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MORGAN STANLEY INSTITUTIONAL FUND INC
- **DATE OF NAME CHANGE:** 19920703

## Series and Classes Contracts Data

### ACTIVE INTERNATIONAL ALLOCATION PORTFOLIO (Series ID: S000002820)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000007736 | CLASS I      | MSACX           |
| C000007737 | CLASS A      | MSIBX           |
| C000113799 | Class L      | MSLLX           |
| C000155887 | Class C      | MSAAX           |
| C000215548 | Class IS     | MAIJX           |
| C000215549 | Class IR     | MAIHX           |

### U.S. REAL ESTATE PORTFOLIO (Series ID: S000002821)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000007738 | CLASS I      | MSUSX           |
| C000007739 | CLASS A      | MUSDX           |
| C000104301 | Class L      | MSULX           |
| C000126911 | Class IS     | MURSX           |
| C000155888 | Class C      | MSURX           |
| C000198814 | Class IR     | MRETX           |

### Inception Portfolio (Series ID: S000002825)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000007744 | CLASS I      | MSSGX           |
| C000007745 | CLASS A      | MSSMX           |
| C000104303 | Class L      | MSSLX           |
| C000129402 | Class IS     | MFLLX           |
| C000155889 | Class C      | MSCOX           |

### EMERGING MARKETS PORTFOLIO (Series ID: S000002826)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000007746 | CLASS I      | MGEMX           |
| C000007747 | CLASS A      | MMKBX           |
| C000113803 | Class L      | MSELX           |
| C000126912 | Class IS     | MMMPX           |
| C000155890 | Class C      | MSEPX           |
| C000198815 | Class IR     | MRGEX           |

### GROWTH PORTFOLIO (Series ID: S000002828)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000007750 | CLASS I      | MSEQX           |
| C000007751 | CLASS A      | MSEGX           |
| C000113805 | Class L      | MSHLX           |
| C000126914 | Class IS     | MGRPX           |
| C000155892 | Class C      | MSGUX           |
| C000198816 | Class IR     | MGHRX           |

### GLOBAL FRANCHISE PORTFOLIO (Series ID: S000002830)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000007754 | CLASS I      | MSFAX           |
| C000007755 | CLASS A      | MSFBX           |
| C000113809 | Class L      | MSFLX           |
| C000155893 | Class C      | MSGFX           |
| C000156276 | Class IS     | MGISX           |

### INTERNATIONAL EQUITY PORTFOLIO (Series ID: S000002832)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000007758 | CLASS I      | MSIQX           |
| C000007759 | CLASS A      | MIQBX           |
| C000113811 | Class L      | MSQLX           |
| C000126915 | Class IS     | MIQPX           |
| C000155894 | Class C      | MSECX           |

### Global Real Estate Portfolio (Series ID: S000012825)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000034677 | Class I      | MRLAX           |
| C000034678 | Class A      | MRLBX           |
| C000065130 | Class L      | MGRLX           |
| C000126917 | Class IS     | MGREX           |
| C000155896 | Class C      | MSRDX           |
| C000198819 | Class IR     | MRLEX           |

### International Opportunity Portfolio (Series ID: S000027992)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000085087 | Class I      | MIOIX           |
| C000085088 | Class L      | MIOLX           |
| C000085089 | Class A      | MIOPX           |
| C000126918 | Class IS     | MNOPX           |
| C000155897 | Class C      | MSOCX           |
| C000198820 | Class IR     | MRNPX           |

### Advantage Portfolio (Series ID: S000027993)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000085091 | Class I      | MPAIX           |
| C000085092 | Class L      | MAPLX           |
| C000085093 | Class A      | MAPPX           |
| C000126919 | Class IS     | MADSX           |
| C000155898 | Class C      | MSPRX           |

### Global Opportunity Portfolio (Series ID: S000027995)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000085098 | Class I      | MGGIX           |
| C000085099 | Class L      | MGGLX           |
| C000085100 | Class A      | MGGPX           |
| C000126921 | Class IS     | MGTSX           |
| C000155900 | Class C      | MSOPX           |
| C000198822 | Class IR     | MGORX           |

### Global Infrastructure Portfolio (Series ID: S000029874)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000091816 | CLASS I      | MTIIX           |
| C000091817 | CLASS L      | MTILX           |
| C000091818 | CLASS A      | MTIPX           |
| C000126922 | Class IS     | MSGPX           |
| C000155901 | Class C      | MSGTX           |
| C000198823 | Class IR     | MRGOX           |

### Global Insight Portfolio (Series ID: S000030616)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000094891 | Class I      | MIGIX           |
| C000094892 | Class L      | MIGLX           |
| C000094893 | Class A      | MIGPX           |
| C000155902 | Class C      | MSPTX           |
| C000228507 | Class IS     |  |

### International Advantage Portfolio (Series ID: S000030618)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000094898 | Class I      | MFAIX           |
| C000094899 | Class L      | MSALX           |
| C000094900 | Class A      | MFAPX           |
| C000155904 | Class C      | MSIAX           |
| C000198826 | Class IS     | IDVSX           |

### Next Gen Emerging Markets Portfolio (Series ID: S000037507)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000115785 | Class I      | MFMIX           |
| C000115786 | Class A      | MFMPX           |
| C000115788 | Class L      | MFMLX           |
| C000152578 | Class IS     | MSRFX           |
| C000155910 | Class C      | MSFEX           |

### Global Sustain Portfolio (Series ID: S000041864)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000129960 | Class I      | MGQIX           |
| C000129961 | Class A      | MGQAX           |
| C000129962 | Class L      | MGQLX           |
| C000129963 | Class IS     | MGQSX           |
| C000155911 | Class C      | MSGQX           |

### Emerging Markets Leaders Portfolio (Series ID: S000047473)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000149047 | Class I      | MELIX           |
| C000149048 | Class A      | MELAX           |
| C000149050 | Class IS     | MELSX           |
| C000155912 | Class C      | MEMLX           |
| C000226932 | Class IR     |  |

### Asia Opportunity Portfolio (Series ID: S000051832)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000163120 | Class I      | MSAQX           |
| C000163121 | Class A      | MSAUX           |
| C000163122 | Class C      | MSAWX           |
| C000163123 | Class IS     | MSAYX           |

### Global Concentrated Portfolio (Series ID: S000053786)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000169208 | Class I      | MLNIX           |
| C000169209 | Class A      | MLNAX           |
| C000169210 | Class C      | MLNCX           |
| C000169211 | Class IS     | MLNSX           |

### Global Core Portfolio (Series ID: S000053787)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000169212 | Class I      | MLMIX           |
| C000169213 | Class A      | MLMAX           |
| C000169214 | Class C      | MLMCX           |
| C000169215 | Class IS     | MLMSX           |

### US Core Portfolio (Series ID: S000053789)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000169220 | Class I      | MUOIX           |
| C000169221 | Class A      | MUOAX           |
| C000169222 | Class C      | MUOCX           |
| C000169223 | Class IS     | MUOSX           |

### Counterpoint Global Portfolio (Series ID: S000059877)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000195878 | A            | GLCAX           |
| C000195879 | C            | GLCDX           |
| C000195880 | I            | GLCIX           |
| C000195881 | IS           | GLCSX           |

### Multi-Asset Real Return Portfolio (Series ID: S000061991)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000200799 | Class I      | MRJIX           |
| C000200800 | Class A      | MRJAX           |
| C000200801 | Class C      | MRJCX           |
| C000200802 | Class IS     | MRJSX           |

### Global Endurance Portfolio (Series ID: S000063049)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000204517 | Class IS     | MSJSX           |
| C000204518 | Class A      | MSJAX           |
| C000204519 | Class C      | MSJCX           |
| C000204520 | Class I      | MSJIX           |

### Global Permanence Portfolio (Series ID: S000065236)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000211165 | Class IS     | MGKQX           |
| C000211166 | Class A      | MGKAX           |
| C000211167 | Class C      | MGKCX           |
| C000211168 | Class I      | MGKIX           |

### Developing Opportunity Portfolio (Series ID: S000067259)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000216354 | Class I      |  |
| C000216355 | Class A      |  |
| C000216356 | Class IS     |  |
| C000216357 | Class C      |  |

### Permanence Portfolio (Series ID: S000068163)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000218314 | Class IS     | MSHPX           |
| C000218315 | Class A      | MSHNX           |
| C000218316 | Class C      | MSHOX           |
| C000218317 | Class I      | MSHMX           |

### Global Focus Real Estate Portfolio (Series ID: S000072500)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000228806 | Class IS     |  |
| C000228807 | Class A      |  |
| C000228808 | Class C      |  |
| C000228809 | Class I      |  |

### U.S. Focus Real Estate Portfolio (Series ID: S000073484)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000230424 | Class IS     |  |
| C000230425 | Class A      |  |
| C000230426 | Class C      |  |
| C000230427 | Class I      |  |

### Vitality Portfolio (Series ID: S000074797)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000233002 | Class I      |  |
| C000233003 | Class A      |  |
| C000233004 | Class C      |  |
| C000233005 | Class IS     |  |

### Sustainable Emerging Markets Portfolio (Series ID: S000076838)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000236911 | Class R6     | MSDMX           |
| C000236912 | Class A      | MSDQX           |
| C000236913 | Class C      | MSDOX           |
| C000236914 | Class I      | MSDUX           |

### American Resilience Portfolio (Series ID: S000076841)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000236923 | Class C      | MSBWX           |
| C000236924 | Class I      | MSBVX           |
| C000236925 | Class R6     | MSBQX           |
| C000236926 | Class A      | MSCUX           |

### International Resilience Portfolio (Series ID: S000076842)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000236927 | Class I      | MSDKX           |
| C000236928 | Class C      | MSDEX           |
| C000236929 | Class R6     | MSCZX           |
| C000236930 | Class A      | MSDFX           |

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: 811-05624

Morgan Stanley Institutional Fund, Inc.

(Exact name of registrant as specified in charter)

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

John H. Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

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

Date of fiscal year end: December 31,

Date of reporting period: December 31, 2022

Item 1 - Report to Shareholders

![](j2327922_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Annual Report

December 31, 2022

![](j2327922_aa002.jpg)

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

---

| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 11 |
| Statement of Operations | 13 |
| Statements of Changes in Net Assets | 14 |
| Financial Highlights | 16 |
| Notes to Financial Statements | 22 |
| Report of Independent Registered Public Accounting Firm | 34 |
| Liquidity Risk Management Program | 35 |
| Federal Tax Notice | 36 |
| U.S. Customer Privacy Notice | 37 |
| Director and Officer Information | 40 |

---

***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j2327922_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Active International Allocation Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Active International Allocation Portfolio Class I | $1000.00 | $1000.70 | $1020.72 | $4.49 | $4.53 | 0.89% |
| Active International Allocation Portfolio Class A | 1000.00 | 999.60 | 1019.26 | 5.95 | 6.01 | 1.18 |
| Active International Allocation Portfolio Class L | 1000.00 | 996.10 | 1016.38 | 8.80 | 8.89 | 1.75 |
| Active International Allocation Portfolio Class C | 1000.00 | 995.40 | 1015.17 | 10.01 | 10.11 | 1.99 |
| Active International Allocation Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1002.00 | 1020.97 | 4.24 | 4.28 | 0.84 |
| Active International Allocation Portfolio Class IR | 1000.00 | 1001.30 | 1020.97 | 4.24 | 4.28 | 0.84 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Active International Allocation Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –21.57%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World ex USA Index (the "Index"), which returned –16.00%.

**Factors Affecting Performance**

• In mid-January 2022 international equities (measured by the Index) peaked for the year and saw prices decline from there as the markets digested the steep rate increases by the Federal Reserve (Fed), a higher level of inflation exacerbated by rising food and energy prices following Russia's invasion of Ukraine, and China's zero-COVID policy. Our investment discipline is to act when we see large disconnects between market values and our estimates of fair value, and to take advantage of volatility when long-term value appears to emerge.

• Early in 2022 we increased positions in energy, and over the course of the year we increased the defensiveness of the portfolio with companies that have solid balance sheets, low leverage and high free cash flow by our measures. In the fourth quarter of 2022, we added to semiconductors, which had been a portfolio underweight. Within the semiconductor industry, we see long-term demand trends underpinned by data consumption growth; synchronized production and capital expenditure cuts, which should result in the lowest supply growth on record in 2023; and trading at what we consider cyclical trough valuations, as measured by price-to-book multiples.

• For the full-year period, Fund performance was negatively impacted by positioning in communication services, led by the overweight allocation to a gaming and e-commerce company based in the ASEAN (Association of Southeast Asian Nations) region, which was the largest stock detractor for the one-year period. The overweight to and stock selection among consumer discretionary names detracted as an Argentina-based online travel platform and a Japan-based global consumer

electronics company underperformed. The underweight allocation to financials also detracted.

• Health care & equipment companies — one based in the Netherlands and another based in Germany — were among the top stock detractors from performance. The allocation to a U.K. internet and direct marketing retail company was among the top detractors for the year.

• Positioning in China, led by the overweight to a leading internet company, and the overweight to and positioning in Germany, led by the allocation to a manufacturer of warehouse equipment and industrial trucks, detracted. Within South Korea, a consumer electronics manufacturer underperformed.

• Elsewhere, the allocation to the United States and stock selection in Japan hampered returns.

• The overweight to and stock selection in materials contributed to performance, led by the allocations to a Canada-based copper producer and a diversified natural resources company headquartered in Switzerland, which was the single largest contributor to returns for the full-year period. Stock selection among energy names contributed to performance through allocations to a U.K.-based oil and gas company and a U.S.-based offshore driller.

• The overweight to and positioning in pharmaceuticals contributed, namely through a diabetes-focused drug company in Denmark, a biopharmaceuticals company headquartered in the U.K. and a U.S.-based biotech company, all of which were among the top contributors to returns. Elsewhere, the allocation to a U.K.-based consumer goods company and zero allocation to an e-commerce platform based in Canada contributed to returns.

• Overweight to and positioning in the United Kingdom and Brazil contributed to returns for the period. The zero allocation to Russia also contributed.

• The Fund utilized stock index futures and forward currency contracts in 2022 to manage certain market and currency exposures. This was a performance detractor in the period.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Active International Allocation Portfolio**

**Management Strategies**

• There is a consensus among some observers that in 2023 the U.S. economy will experience a weak first half followed by a V-shaped recovery in the second half as inflation fades and the Fed relents on its aggressive tightening stance. We are skeptical that the economy and markets will move in a V-shaped manner. Economic adjustment may take longer, as housing and the labor markets could take longer to normalize than in the past cycles. Inflation has peaked to date and has since weakened primarily from goods prices but still faces upward pressures from undersupplied labor markets and resource-intensive decarbonization. It will not be easy for the Fed to achieve the 2% inflation target, and policy makers will try to avoid the stop-and-go monetary policy of the 1970s in fighting inflation. Policy rates may stay higher for longer rather than the smooth path of disinflation and Fed cuts being priced by economic forecasters.

• Europe suffered in 2022 from an energy crisis and the shutdown in China from its zero-COVID policy. During the year, global investors generally sold the region, with the euro falling 6% in the 12-month period including a sharp 9% fourth quarter rally.<sup>(i)</sup> We believe that valuations are now at extreme levels of cheapness versus the U.S. market. Recently sentiment has improved as forecasts have been upgraded from a worst-case recession scenario as the energy situation has stabilized and China reopens. Europe's sector composition (light technology/heavy health care and industrials) hampered relative performance in the tech-dominant 2010s, and as sector performance shifts, we think Europe should benefit given its lower valuations relative to the U.S. Europe is also a beneficiary of migrant flows that should boost demographics and support labor markets. The portfolio is overweight to core Europe and to the U.K., which is based on the strong bottom-up opportunities in materials, energy, pharma and staples.

• We added to emerging markets in 2022 in China, India and Brazil. In the 2010s, emerging markets experienced their worst decade of performance since

the 1930s. Today, absolute and relative equity and currency valuations are near record lows, and generally investors are significantly underweight. Portfolio positions in China detracted for much of 2022, but we see our holdings as attractive based on very cheap valuations, underappreciated fundamentals and negative sentiment that is quickly reversing.

• Our 2023 outlook is quite favorable for international equity markets. U.S. dollar strength since 2010 has been a headwind to non-U.S. equity returns, and we believe that a reversal in this trend has begun. Even though valuations were already elevated, the U.S. dollar benefited in 2022 from rate and growth differentials favoring the U.S. and the flight-to-safety. The dollar reached a 20-year high in late September 2022 before weakening into year-end;<sup>(i)</sup> a trend we expect to continue based on unattractive fundamentals such as the U.S. twin deficits, U.S. dollar as a falling share of central bank reserves, a convergence in growth rates with other large economic regions and the increasing importance of alternate payment systems. U.S. dollar weakness is a key feature in our constructive outlook for non-U.S. equity market returns; over time local currency has represented roughly 30% of the equity market return to U.S. investors.<sup>(ii)</sup>

• Overall, we believe that the U.S./tech market regime that has dominated global equity markets since the Global Financial Crisis has likely concluded. In our view, non-U.S. markets offer improving and underappreciated fundamentals, attractive valuations, appreciating currencies and should benefit from asset allocation shifts to this under-owned asset class.

<sup>•</sup> We believe Active International Allocation Portfolio is well positioned to potentially outperform in this environment with a focus on long-term structural winners in supply-constrained industries (materials and energy), innovation (health care, consumer and semiconductor capex), and mispriced cyclicals with structural drivers (heavy industrials, airlines and aerospace & defense).

(i) Source: Bloomberg L.P. Data as of December 31, 2022.

(ii) Source: Bloomberg L.P., FactSet and Global Insight. Average annual currency contributions to total returns since 1988. Data as of May 25, 2022.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Active International Allocation Portfolio**

![](j2327922_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if application).

**Performance Compared to the MSCI All Country World ex USA Index<sup>(1)</sup>, the Active International Allocation Blend Index<sup>(2)</sup>, and the Lipper International Large-Cap Growth Funds Index<sup>(3)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(10)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(5)</sup> | –21.57% | 1.70% | 4.19% | 5.35% |
| Fund — Class A Shares <br>w/o sales charges<sup>(6)</sup> | –21.77 | 1.40 | 3.85 | 4.61 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(6)</sup> | –25.86 | 0.31 | 3.29 | 4.40 |
| Fund — Class L Shares <br>w/o sales charges<sup>(7)</sup> | –22.22 | 0.85 | 3.30 | 4.83 |
| Fund — Class C Shares <br>w/o sales charges<sup>(8)</sup> | –22.43 | 0.60 |  | 1.37 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(8)</sup> | –23.20 | 0.60 |  | 1.37 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(9)</sup> | –21.45 |  |  | 3.79 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(9)</sup> | –21.51 |  |  | 3.77 |
| MSCI All Country World ex USA Index | –16.00 | 0.88 | 3.80 | 5.27 |
| Active International Allocation <br>Blend Index | –16.00 | 0.88 | 4.51 | 5.10 |
| Lipper International Large-Cap <br>Growth Funds Index | –21.89 | 2.49 | 4.94 | N/A |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country World ex USA Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets, excluding the United States. The term ""free float"" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Returns, including periods prior to January 1, 2001, are calculated using the return data of the MSCI All Country World ex USA Index (gross dividends) through December 31, 2000 and the return data of the MSCI All Country World ex USA Index (net dividends) after December 31, 2000. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Active International Allocation Portfolio**

<sup>(2)</sup> The Active International Allocation Blend Index is performance linked benchmark of the old and new benchmark of the Fund, the old benchmark represented by MSCI EAFE Index (a benchmark measures the international equity market performance of developed markets excluding the United States and Canada) from the Fund's inception to December 31, 2016 and the new benchmark represented by MSCI All Country World ex USA Index for periods thereafter. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(4)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(5)</sup> Commenced operations on January 17, 1992.

<sup>(6)</sup> Commenced offering on January 2, 1996.

<sup>(7)</sup> Commenced offering on June 14, 2012.

<sup>(8)</sup> Commenced offering on April 30, 2015.

<sup>(9)</sup> Commenced offering on October 31, 2019. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(10)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Active International Allocation Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.5%)** | **Common Stocks (98.5%)** | **Common Stocks (98.5%)** |
| Brazil (2.0%) | Brazil (2.0%) | Brazil (2.0%) |
| Itau Unibanco Holding SA (Preference) ADR | 374285 | $1763 |
| Vale SA | 90176 | 1528 |
|  |  | 3291 |
| Canada (6.6%) | Canada (6.6%) | Canada (6.6%) |
| Agnico Eagle Mines Ltd. | 36706 | 1907 |
| Cameco Corp. | 27331 | 620 |
| Canadian National Railway Co. | 27206 | 3234 |
| First Quantum Minerals Ltd. (a) | 144865 | 3027 |
| Teck Resources Ltd., Class B | 48044 | 1817 |
|  |  | 10605 |
| China (7.7%) | China (7.7%) | China (7.7%) |
| Alibaba Group Holding Ltd. ADR (b) | 80257 | 7070 |
| China Resources Beer Holdings Co., Ltd. (c) | 130000 | 904 |
| JD.com, Inc., Class A (c) | 2469 | 69 |
| Tencent Holdings Ltd. (c) | 50100 | 2124 |
| Tencent Holdings Ltd. ADR (a) | 50351 | 2133 |
|  |  | 12300 |
| Denmark (2.2%) | Denmark (2.2%) | Denmark (2.2%) |
| Novo Nordisk AS Series B | 25850 | 3511 |
| France (8.9%) | France (8.9%) | France (8.9%) |
| Air Liquide SA | 7797 | 1107 |
| Airbus SE | 24957 | 2967 |
| Hermes International | 342 | 529 |
| Kering SA | 1573 | 801 |
| L'Oreal SA | 3147 | 1127 |
| Legrand SA | 5439 | 436 |
| LVMH Moet Hennessy Louis Vuitton SE | 1803 | 1312 |
| Pernod Ricard SA | 5564 | 1095 |
| Sanofi | 20947 | 2020 |
| Technip Energies NV | 86488 | 1360 |
| TotalEnergies SE (a) | 25653 | 1610 |
|  |  | 14364 |
| Germany (10.4%) | Germany (10.4%) | Germany (10.4%) |
| Bayer AG (Registered) | 134129 | 6904 |
| CTS Eventim AG & Co. KGaA (b) | 9956 | 632 |
| Infineon Technologies AG | 42656 | 1296 |
| Jungheinrich AG (Preference) | 27330 | 774 |
| KION Group AG | 37318 | 1063 |
| Linde PLC (b) | 11808 | 3849 |
| Siemens Healthineers AG | 43409 | 2165 |
|  |  | 16683 |
| India (5.0%) | India (5.0%) | India (5.0%) |
| Apollo Hospitals Enterprise Ltd. | 18756 | 1014 |
| HDFC Bank Ltd. ADR | 39412 | 2696 |
| ICICI Bank Ltd. | 107965 | 1161 |
| ICICI Prudential Life Insurance Co., Ltd. | 118925 | 647 |
| Reliance Industries Ltd. | 41297 | 1268 |
| State Bank of India | 159592 | 1180 |
|  |  | 7966 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Ireland (1.0%) | Ireland (1.0%) | Ireland (1.0%) |
| Ryanair Holdings PLC ADR (b) | 21043 | $1573 |
| Japan (8.7%) | Japan (8.7%) | Japan (8.7%) |
| FANUC Corp. | 4350 | 651 |
| Hoya Corp. | 6200 | 594 |
| Keyence Corp. | 5600 | 2174 |
| Nikon Corp. | 377600 | 3339 |
| Shimano, Inc. (a) | 3650 | 577 |
| Shiseido Co., Ltd. (a) | 7600 | 372 |
| SMC Corp. | 1805 | 754 |
| Sony Group Corp. | 30693 | 2339 |
| Sony Group Corp. ADR | 22219 | 1695 |
| Tokyo Electron Ltd. | 3400 | 999 |
| Unicharm Corp. | 11200 | 429 |
|  |  | 13923 |
| Korea, Republic of (2.7%) | Korea, Republic of (2.7%) | Korea, Republic of (2.7%) |
| Samsung Electronics Co., Ltd. | 99861 | 4383 |
| Netherlands (3.5%) | Netherlands (3.5%) | Netherlands (3.5%) |
| Akzo Nobel NV | 11150 | 748 |
| ASML Holding NV | 4047 | 2207 |
| Universal Music Group NV | 70741 | 1711 |
| Wolters Kluwer NV | 8671 | 907 |
|  |  | 5573 |
| Norway (0.6%) | Norway (0.6%) | Norway (0.6%) |
| Adevinta ASA (b) | 157062 | 1040 |
| Singapore (2.3%) | Singapore (2.3%) | Singapore (2.3%) |
| Sea Ltd. ADR (b) | 71289 | 3709 |
| South Africa (0.8%) | South Africa (0.8%) | South Africa (0.8%) |
| Impala Platinum Holdings Ltd. | 54156 | 681 |
| Sibanye Stillwater Ltd. | 192792 | 511 |
| Thungela Resources Ltd. (a) | 6854 | 113 |
|  |  | 1305 |
| Spain (0.6%) | Spain (0.6%) | Spain (0.6%) |
| Amadeus IT Group SA (b) | 18997 | 985 |
| Sweden (0.2%) | Sweden (0.2%) | Sweden (0.2%) |
| Atlas Copco AB, Class A | 24389 | 289 |
| Switzerland (2.3%) | Switzerland (2.3%) | Switzerland (2.3%) |
| Nestle SA (Registered) | 31832 | 3677 |
| Taiwan (2.9%) | Taiwan (2.9%) | Taiwan (2.9%) |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 202000 | 2934 |
| Taiwan Semiconductor Manufacturing Co., Ltd. <br>ADR | 22187 | 1652 |
|  |  | 4586 |
| United Kingdom (19.0%) | United Kingdom (19.0%) | United Kingdom (19.0%) |
| Anglo American PLC | 30100 | 1179 |
| AstraZeneca PLC | 35337 | 4782 |
| Diageo PLC | 63866 | 2796 |
| Experian PLC | 62171 | 2106 |
| Glencore PLC | 1203907 | 8028 |
| Shell PLC | 175884 | 4958 |
| Unilever PLC | 38302 | 1922 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Active International Allocation Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| United Kingdom (cont'd) | United Kingdom (cont'd) | United Kingdom (cont'd) |
| Unilever PLC ADR (a) | 34045 | $1714 |
| Unilever PLC CVA | 60317 | 3045 |
|  |  | 30530 |
| United States (11.1%) | United States (11.1%) | United States (11.1%) |
| Air Products & Chemicals, Inc. | 2815 | 868 |
| Despegar.com Corp. (a)(b) | 507252 | 2602 |
| Estee Lauder Cos., Inc., Class A | 3854 | 956 |
| Farfetch Ltd., Class A (a)(b) | 223380 | 1057 |
| Medtronic PLC | 22982 | 1786 |
| MercadoLibre, Inc. (b) | 2095 | 1773 |
| Newmont Corp. (NYSE) | 23638 | 1114 |
| Newmont Corp. (TSX) | 68304 | 3224 |
| Schlumberger NV | 45591 | 2437 |
| Vertex Pharmaceuticals, Inc. (b) | 6682 | 1930 |
|  |  | 17747 |
| **Total Common Stocks (Cost $138,426)** | **Total Common Stocks (Cost $138,426)** | 158040 |
| **Preferred Stock (0.7%)** | **Preferred Stock (0.7%)** | **Preferred Stock (0.7%)** |
| United States (0.7%) | United States (0.7%) | United States (0.7%) |
| Neurogenesis Ltd. Series A (b)(d) (acquisition <br>cost — $1,250; acquired 12/16/21) <br>**(Cost $1,250)** | 30697 | 1174 |
| **Investment Company (0.4%)** | **Investment Company (0.4%)** | **Investment Company (0.4%)** |
| United States (0.4%) | United States (0.4%) | United States (0.4%) |
| Morgan Stanley China A Share Fund, Inc. <br>(See Note G) **(Cost $1,067)** | 46002 | 653 |
| **Short-Term Investments (1.6%)** | **Short-Term Investments (1.6%)** | **Short-Term Investments (1.6%)** |
| Securities held as Collateral on Loaned Securities (1.6%) | Securities held as Collateral on Loaned Securities (1.6%) | Securities held as Collateral on Loaned Securities (1.6%) |
| Investment Company (1.3%) | Investment Company (1.3%) | Investment Company (1.3%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 2084769 | 2085 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.3%) | Repurchase Agreements (0.3%) | Repurchase Agreements (0.3%) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; proceeds <br>$193; fully collateralized by a U.S. Government <br>obligation; 4.38% due 5/15/41; <br>valued at $197) | $193 | 193 |
| Merrill Lynch & Co., Inc., (4.25%, <br>dated 12/30/22, due 1/3/23; proceeds <br>$194; fully collateralized by a U.S. Government <br>obligation; 1.50% due 2/15/25; <br>valued at $197) | 194 | 194 |
|  |  | 387 |
| **Total Short-Term Investments (Cost $2,472)** | **Total Short-Term Investments (Cost $2,472)** | 2472 |
| **Total Investments (101.2%) (Cost $143,215) <br>Including $7,419 of Securities Loaned (e)(f)(g)** | **Total Investments (101.2%) (Cost $143,215) <br>Including $7,419 of Securities Loaned (e)(f)(g)** | 162339 |
| Liabilities in Excess of Other Assets (–1.2%) | Liabilities in Excess of Other Assets (–1.2%) | (1946) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $160393 |

---

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) All or a portion of this security was on loan at December 31, 2022.

(b) Non-income producing security.

(c) Security trades on the Hong Kong exchange.

(d) At December 31, 2022, the Fund held fair valued securities valued at approximately $1,174,000, representing 0.7% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(e) Securities are available for collateral in connection with open foreign currency forward exchange contracts.

(f) The approximate fair value and percentage of net assets, $105,683,000 and 65.9%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(g) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $145,336,000. The aggregate gross unrealized appreciation is approximately $38,165,000 and the aggregate gross unrealized depreciation is approximately $21,458,000, resulting in net unrealized appreciation of approximately $16,707,000.

ADR American Depositary Receipt.

CVA Certificaten Van Aandelen.

NYSE New York Stock Exchange.

TSX Toronto Stock Exchange.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Active International Allocation Portfolio**

**Foreign Currency Forward Exchange Contracts:**

The Fund had the following foreign currency forward exchange contracts open at December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts to<br>Deliver<br>(000)** | **Contracts to<br>Deliver<br>(000)** | **In Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Depreciation<br>(000)** |
| Barclays Bank PLC | EUR | 1479 | $1585 | 3/16/23 | $(6) |
| Citibank NA | EUR | 1593 | $1707 | 3/16/23 | (7) |
| Goldman Sachs International | EUR | 633 | $679 | 3/16/23 | (3) |
|  |  |  |  |  | $(16) |

---

EUR — Euro

USD — United States Dollar

**Portfolio Composition\***

---

| | | |
|:---|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** | **Percentage of<br>Total Investments** |
| Other\*\* | 51.8 | % |
| Metals & Mining | 14.4 |  |
| Pharmaceuticals | 10.8 |  |
| Internet & Direct Marketing Retail | 6.2 |  |
| Personal Products | 5.7 |  |
| Semiconductors & Semiconductor Equipment | 5.7 |  |
| Oil, Gas & Consumable Fuels | 5.4 |  |
| Total Investments | 100.0 | %\*\*\* |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

\*\*\* Does not include open foreign currency forward exchange contracts with total unrealized depreciation of approximately $16,000.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Active International Allocation Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $140,063) | $159601 |  |
| Investments in Securities of Affiliated Issuer, at Value (Cost $3,152) | 2738 |  |
| Total Investments in Securities, at Value (Cost $143,215) | 162339 |  |
| Receivable for Investments Sold | 782 |  |
| Tax Reclaim Receivable | 289 |  |
| Dividends Receivable | 112 |  |
| Due from Broker | 54 |  |
| Receivable for Fund Shares Sold | 18 |  |
| Receivable from Securities Lending Income | 8 |  |
| Receivable from Affiliate |  | @ |
| Other Assets | 70 |  |
| **Total Assets** | 163672 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Collateral on Securities Loaned, at Value | 2472 |  |
| Deferred Capital Gain Country Tax | 245 |  |
| Payable to Bank | 191 |  |
| Payable for Advisory Fees | 127 |  |
| Payable for Professional Fees | 94 |  |
| Payable for Fund Shares Redeemed | 34 |  |
| Payable for Sub Transfer Agency Fees — Class I | 14 |  |
| Payable for Sub Transfer Agency Fees — Class A | 8 |  |
| Payable for Sub Transfer Agency Fees — Class L | 1 |  |
| Payable for Sub Transfer Agency Fees — Class C |  | @ |
| Unrealized Depreciation on Foreign Currency Forward Exchange Contracts | 16 |  |
| Payable for Shareholder Services Fees — Class A | 11 |  |
| Payable for Distribution and Shareholder Services Fees — Class L | 3 |  |
| Payable for Distribution and Shareholder Services Fees — Class C |  | @ |
| Payable for Custodian Fees | 12 |  |
| Payable for Administration Fees | 11 |  |
| Payable for Transfer Agency Fees |  | @ |
| Payable for Transfer Agency Fees — Class I | 1 |  |
| Payable for Transfer Agency Fees — Class A | 1 |  |
| Payable for Transfer Agency Fees — Class L | 1 |  |
| Payable for Transfer Agency Fees — Class C |  | @ |
| Payable for Transfer Agency Fees — Class R6\* |  | @ |
| Payable for Transfer Agency Fees — Class IR |  | @ |
| Other Liabilities | 37 |  |
| **Total Liabilities** | 3279 |  |
| **Net Assets** | $160393 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $140657 |  |
| Total Distributable Earnings | 19736 |  |
| **Net Assets** | $160393 |  |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Active International Allocation Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2021<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $104002 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 7534341 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.80 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $51769 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 3664016 |
| **Net Asset Value, Redemption Price Per Share** | $14.13 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.78 |
| **Maximum Offering Price Per Share** | $14.91 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $4129 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 295160 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.99 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $459 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 33081 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.89 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $23 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1649 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.82 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $11 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 814 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.81 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $7419 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Active International Allocation Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $333 of Foreign Taxes Withheld) | $3892 |
| Income from Securities Loaned — Net | 45 |
| Dividends from Securities of Affiliated Issuer (Note G) | 4 |
| Total Investment Income | 3941 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 1236 |
| Professional Fees | 255 |
| Shareholder Services Fees — Class A (Note D) | 144 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 33 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 6 |
| Administration Fees (Note C) | 152 |
| Sub Transfer Agency Fees — Class I | 92 |
| Sub Transfer Agency Fees — Class A | 43 |
| Sub Transfer Agency Fees — Class L | 3 |
| Sub Transfer Agency Fees — Class C |  |
| Registration Fees | 113 |
| Custodian Fees (Note F) | 57 |
| Shareholder Reporting Fees | 45 |
| Transfer Agency Fees — Class I (Note E) | 10 |
| Transfer Agency Fees — Class A (Note E) | 9 |
| Transfer Agency Fees — Class L (Note E) | 4 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Transfer Agency Fees — Class IR (Note E) | 2 |
| Pricing Fees | 8 |
| Directors' Fees and Expenses | 7 |
| Interest Expenses | 1 |
| Other Expenses | 23 |
| Total Expenses | 2248 |
| Waiver of Advisory Fees (Note B) | (281 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (38 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class IR (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (12 |
| Net Expenses | 1911 |
| **Net Investment Income** | 2030 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold | 3555 |
| Foreign Currency Forward Exchange Contracts | (690 |
| Foreign Currency Translation | (113 |
| Futures Contracts | 241 |
| Net Realized Gain | 2993 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Increase in Deferred Capital Gain Country Tax of $18) | (56072 |
| Investments in Affiliates | (286 |
| Foreign Currency Forward Exchange Contracts | (32 |
| Foreign Currency Translation | (39 |
| Net Change in Unrealized Appreciation (Depreciation) | (56429 |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | (53436 |
| Net Decrease in Net Assets Resulting from Operations | $(51406 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Active International Allocation Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $2030 | $1791 |
| Net Realized Gain | 2993 | 18612 |
| Net Change in Unrealized Appreciation (Depreciation) | (56429 | (15214) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (51406 | 5189 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (1796 | (11586) |
| **Class A** | (702 | (5407) |
| **Class L** | (39 | (381) |
| **Class C** | (4 | (50) |
| **Class R6\*** | (— | (2) |
| **Class IR** | (— | (1) |
| Total Dividends and Distributions to Shareholders | (2541 | (17427) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 51639 | 96854 |
| Distributions Reinvested | 1784 | 11451 |
| Redeemed | (66942 | (92525) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 7349 | 22358 |
| Distributions Reinvested | 696 | 5349 |
| Redeemed | (11717 | (21357) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 155 | 62 |
| Distributions Reinvested | 39 | 373 |
| Redeemed | (300 | (386) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 126 | 789 |
| Distributions Reinvested | 4 | 50 |
| Redeemed | (318 | (94) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 70 | 23 |
| Distributions Reinvested |  | 2 |
| Redeemed | (65 | (4) |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Distributions Reinvested |  | 1 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (17480 | 22946 |
| Total Increase (Decrease) in Net Assets | (71427 | 10708 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 231820 | 221112 |
| End of Period | $160393 | $231820 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Active International Allocation Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 3321 | 4920 |
| Shares Issued on Distributions Reinvested | 130 | 661 |
| Shares Redeemed | (4507 | (4666 |
| Net Increase (Decrease) in Class I Shares Outstanding | (1056 | 915 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 459 | 1104 |
| Shares Issued on Distributions Reinvested | 49 | 302 |
| Shares Redeemed | (757 | (1051 |
| Net Increase (Decrease) in Class A Shares Outstanding | (249 | 355 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 11 | 3 |
| Shares Issued on Distributions Reinvested | 3 | 21 |
| Shares Redeemed | (20 | (19 |
| Net Increase (Decrease) in Class L Shares Outstanding | (6 | 5 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 9 | 40 |
| Shares Issued on Distributions Reinvested |  | 3 |
| Shares Redeemed | (21 | (5 |
| Net Increase (Decrease) in Class C Shares Outstanding | (12 | 38 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 5 | 1 |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (5 | (— |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (— | 1 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Active International Allocation Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $17.91 | $19.03 | $14.59 | $12.07 | $14.46 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.18 | 0.17 | 0.04 | 0.16 | 0.23 |
| Net Realized and Unrealized Gain (Loss) | (4.06) | 0.24 | 4.41 | 2.54 | (2.41) |
| Total from Investment Operations | (3.88) | 0.41 | 4.45 | 2.70 | (2.18) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.10) | (0.23) | (0.01) | (0.18) | (0.21) |
| Net Realized Gain | (0.13) | (1.30) |  |  |  |
| Total Distributions | (0.23) | (1.53) | (0.01) | (0.18) | (0.21) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $13.80 | $17.91 | $19.03 | $14.59 | $12.07 |
| **Total Return<sup>(3)</sup>** | (21.57)% | 2.33% | 30.48% | 22.41% | (15.14)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $104002 | $153810 | $146087 | $126860 | $119925 |
| Ratio of Expenses Before Expense Limitation | 1.08% | 0.95% | 1.02% | 0.97% | 0.97% |
| Ratio of Expenses After Expense Limitation | 0.89%<sup>(4)</sup> | 0.89%<sup>(4)</sup> | 0.89%<sup>(4)</sup> | 0.89%<sup>(4)</sup> | 0.88%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.89%<sup>(4)</sup> | 0.89%<sup>(4)</sup> | 0.89%<sup>(4)</sup> | N/A | N/A |
| Ratio of Net Investment Income | 1.18%<sup>(4)</sup> | 0.87%<sup>(4)</sup> | 0.24%<sup>(4)</sup> | 1.22%<sup>(4)</sup> | 1.67%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.01% | 0.01% | 0.01% | 0.02% |
| Portfolio Turnover Rate | 25% | 39% | 37% | 34% | 43% |

---

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

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

(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."

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Active International Allocation Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.32 | $19.43 | $14.94 | $12.36 | $14.79 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.13 | 0.11 | (0.01) | 0.11 | 0.19 |
| Net Realized and Unrealized Gain (Loss) | (4.13) | 0.25 | 4.51 | 2.61 | (2.46) |
| Total from Investment Operations | (4.00) | 0.36 | 4.50 | 2.72 | (2.27) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.06) | (0.17) | (0.01) | (0.14) | (0.16) |
| Net Realized Gain | (0.13) | (1.30) |  |  |  |
| Total Distributions | (0.19) | (1.47) | (0.01) | (0.14) | (0.16) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $14.13 | $18.32 | $19.43 | $14.94 | $12.36 |
| **Total Return<sup>(3)</sup>** | (21.77)% | 2.03% | 30.10% | 22.00% | (15.38)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $51769 | $71668 | $69135 | $58339 | $50726 |
| Ratio of Expenses Before Expense Limitation | 1.34% | 1.22% | 1.31% | 1.25% | 1.26% |
| Ratio of Expenses After Expense Limitation | 1.18%<sup>(4)</sup> | 1.18%<sup>(4)</sup> | 1.19%<sup>(4)</sup> | 1.22%<sup>(4)</sup> | 1.19%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.18%<sup>(4)</sup> | 1.18%<sup>(4)</sup> | 1.19%<sup>(4)</sup> | N/A | N/A |
| Ratio of Net Investment Income (Loss) | 0.88%<sup>(4)</sup> | 0.55%<sup>(4)</sup> | (0.06)%<sup>(4)</sup> | 0.82%<sup>(4)</sup> | 1.37%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.01% | 0.01% | 0.01% | 0.02% |
| Portfolio Turnover Rate | 25% | 39% | 37% | 34% | 43% |

---

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

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

(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 (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."

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Active International Allocation Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.16 | $19.27 | $14.90 | $12.32 | $14.73 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.05 | 0.00<br><sup>(2)</sup> | (0.09) | 0.05 | 0.13 |
| Net Realized and Unrealized Gain (Loss) | (4.09) | 0.24 | 4.47 | 2.59 | (2.46) |
| Total from Investment Operations | (4.04) | 0.24 | 4.38 | 2.64 | (2.33) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.05) | 0.01 | (0.06) | (0.08) |
| Net Realized Gain | (0.13) | (1.30) |  |  |  |
| Total Distributions | (0.13) | (1.35) | (0.01) | (0.06) | (0.08) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $13.99 | $18.16 | $19.27 | $14.90 | $12.32 |
| **Total Return<sup>(3)</sup>** | (22.22)% | 1.48% | 29.38% | 21.43% | (15.87)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4129 | $5475 | $5718 | $4644 | $4375 |
| Ratio of Expenses Before Expense Limitation | 1.90% | 1.76% | 1.86% | 1.81% | 1.76% |
| Ratio of Expenses After Expense Limitation | 1.74%<sup>(4)</sup> | 1.74%<sup>(4)</sup> | 1.74%<sup>(4)</sup> | 1.74%<sup>(4)</sup> | 1.69%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.74%<sup>(4)</sup> | 1.74%<sup>(4)</sup> | 1.74%<sup>(4)</sup> | N/A | N/A |
| Ratio of Net Investment Income (Loss) | 0.32%<sup>(4)</sup> | 0.02%<sup>(4)</sup> | (0.61)%<sup>(4)</sup> | 0.35%<sup>(4)</sup> | 0.92%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.01% | 0.01% | 0.01% | 0.02% |
| Portfolio Turnover Rate | 25% | 39% | 37% | 34% | 43% |

---

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

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

(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."

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Active International Allocation Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.08 | $19.22 | $14.89 | $12.34 | $14.77 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.01 | (0.02) | (0.12) | 0.00<br><sup>(2)</sup> | 0.09 |
| Net Realized and Unrealized Gain (Loss) | (4.07) | 0.21 | 4.46 | 2.59 | (2.45) |
| Total from Investment Operations | (4.06) | 0.19 | 4.34 | 2.59 | (2.36) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.03) | (0.01) | (0.04) | (0.07) |
| Net Realized Gain | (0.13) | (1.30) |  |  |  |
| Total Distributions | (0.13) | (1.33) | (0.01) | (0.04) | (0.07) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $13.89 | $18.08 | $19.22 | $14.89 | $12.34 |
| **Total Return<sup>(3)</sup>** | (22.43)% | 1.23% | 29.13% | 21.03% | (16.04)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $459 | $821 | $144 | $45 | $42 |
| Ratio of Expenses Before Expense Limitation | 2.54% | 2.36% | 5.66% | 7.49% | 7.18% |
| Ratio of Expenses After Expense Limitation | 1.99%<sup>(4)</sup> | 1.99%<sup>(4)</sup> | 1.99%<sup>(4)</sup> | 1.99%<sup>(4)</sup> | 1.98%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.99%<sup>(4)</sup> | 1.99%<sup>(4)</sup> | 1.99%<sup>(4)</sup> | N/A | N/A |
| Ratio of Net Investment Income (Loss) | 0.05%<sup>(4)</sup> | (0.09)%<sup>(4)</sup> | (0.81)%<sup>(4)</sup> | 0.03%<sup>(4)</sup> | 0.67%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.01% | 0.01% | 0.01% | 0.02% |
| Portfolio Turnover Rate | 25% | 39% | 37% | 34% | 43% |

---

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

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

(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 (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."

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Active International Allocation Portfolio**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **Period from<br>October 31, 2019<sup>(2)</sup> to**<br>**December 31, 2019** |
| **Net Asset Value, Beginning of Period** | $17.91 | $19.04 | $14.59 | $13.79 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(3)</sup> | 0.21 | 0.18 | 0.04 | 0.00<br><sup>(4)</sup> |
| Net Realized and Unrealized Gain (Loss) | (4.06) | 0.23 | 4.42 | 0.98 |
| Total from Investment Operations | (3.85) | 0.41 | 4.46 | 0.98 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.11) | (0.24) | (0.01) | (0.18) |
| Net Realized Gain | (0.13) | (1.30) |  |  |
| Total Distributions | (0.24) | (1.54) | (0.01) | (0.18) |
| **Net Asset Value, End of Period** | $13.82 | $17.91 | $19.04 | $14.59 |
| **Total Return<sup>(5)</sup>** | (21.45)% | 2.39% | 30.55% | 7.15%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $23 | $32 | $14 | $11 |
| Ratio of Expenses Before Expense Limitation | 5.55% | 10.73% | 21.16% | 14.33%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.84%<sup>(6)</sup> | 0.84%<sup>(6)</sup> | 0.84%<sup>(6)</sup> | 0.84%<sup>(6)(8)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.84%<sup>(6)</sup> | 0.84%<sup>(6)</sup> | 0.84%<sup>(6)</sup> | N/A |
| Ratio of Net Investment Income | 1.41%<sup>(6)</sup> | 0.89%<sup>(6)</sup> | 0.28%<sup>(6)</sup> | 0.18%<sup>(6)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 25% | 39% | 37% | 34% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Offering.

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

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

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

(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 financial statements.<br>20

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Active International Allocation Portfolio**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **Period from<br>October 31, 2019<sup>(1)</sup> to**<br>**December 31, 2019** |
| **Net Asset Value, Beginning of Period** | $17.91 | $19.04 | $14.59 | $13.79 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.18 | 0.18 | 0.04 | 0.00<br><sup>(3)</sup> |
| Net Realized and Unrealized Gain (Loss) | (4.04) | 0.23 | 4.42 | 0.98 |
| Total from Investment Operations | (3.86) | 0.41 | 4.46 | 0.98 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.11) | (0.24) | (0.01) | (0.18) |
| Net Realized Gain | (0.13) | (1.30) |  |  |
| Total Distributions | (0.24) | (1.54) | (0.01) | (0.18) |
| **Net Asset Value, End of Period** | $13.81 | $17.91 | $19.04 | $14.59 |
| **Total Return<sup>(4)</sup>** | (21.51)% | 2.39% | 30.55% | 7.15%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $11 | $14 | $14 | $11 |
| Ratio of Expenses Before Expense Limitation | 18.22% | 14.38% | 20.70% | 14.33%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 0.84%<sup>(5)</sup> | 0.84%<sup>(5)</sup> | 0.84%<sup>(5)</sup> | 0.84%<sup>(5)(7)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | 0.84%<sup>(5)</sup> | 0.84%<sup>(5)</sup> | 0.84%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Income | 1.21%<sup>(5)</sup> | 0.92%<sup>(5)</sup> | 0.29%<sup>(5)</sup> | 0.18%<sup>(5)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.01% | 0.01% | 0.01%<sup>(7)</sup> |
| Portfolio Turnover Rate | 25% | 39% | 37% | 34% |

---

(1) Commencement of Offering.

(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) 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.<br>21

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Active International Allocation Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) 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; (6) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (7) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $— | $2967 | $— | $2967 |
| Airlines | 1573 |  |  | 1573 |
| Banks | 4459 | 2341 |  | 6800 |
| Beverages |  | 4795 |  | 4795 |
| Biotechnology | 1930 |  |  | 1930 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Chemicals | $868 | $5704 | $— | $6572 |
| Electrical Equipment |  | 436 |  | 436 |
| Electronic Equipment, <br>Instruments & <br>Components |  | 2174 |  | 2174 |
| Energy Equipment & <br>Services | 2437 | 1360 |  | 3797 |
| Entertainment | 3709 | 2343 |  | 6052 |
| Food Products |  | 3677 |  | 3677 |
| Health Care Equipment & <br>Supplies | 1786 | 2759 |  | 4545 |
| Health Care Providers & <br>Services |  | 1014 |  | 1014 |
| Hotels, Restaurants & <br>Leisure | 2602 |  |  | 2602 |
| Household Durables | 1695 | 5678 |  | 7373 |
| Household Products |  | 429 |  | 429 |
| Information Technology <br>Services |  | 985 |  | 985 |
| Insurance |  | 647 |  | 647 |
| Interactive Media & <br>Services | 2133 | 3164 |  | 5297 |
| Internet & Direct <br>Marketing Retail | 9900 | 69 |  | 9969 |
| Leisure Products |  | 577 |  | 577 |
| Machinery |  | 3531 |  | 3531 |
| Metals & Mining | 11089 | 11927 |  | 23016 |
| Oil, Gas & Consumable <br>Fuels | 620 | 7949 |  | 8569 |
| Personal Products | 2670 | 6466 |  | 9136 |
| Pharmaceuticals |  | 17217 |  | 17217 |
| Professional Services |  | 3013 |  | 3013 |
| Road & Rail | 3234 |  |  | 3234 |
| Semiconductors & <br>Semiconductor <br>Equipment | 1652 | 7436 |  | 9088 |
| Tech Hardware, Storage & <br>Peripherals |  | 4383 |  | 4383 |
| Textiles, Apparel & <br>Luxury Goods |  | 2642 |  | 2642 |
| **Total Common Stocks** | **52357** | **105683** | **—** | **158040** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
| Biotechnology | $— | $— | $1174 | $1174 |
| **Investment Company** | 653 |  |  | 653 |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 2085 |  |  | 2085 |
| Repurchase Agreements |  | 387 |  | 387 |
| **Total Short-Term <br>Investments** | **2085** | **387** | **—** | **2472** |
| **Total Assets** | **55095** | **106070** | **1174** | **162339** |
| **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** |
| **Foreign Currency <br>Forward Exchange <br>Contracts** |  | (16) |  | (16) |
| **Total** | $**55095** | $**106054** | $**1174** | $**162323** |

---

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<br>Stock<br>(000)** | **Common<br>Stock<br>(000)** | **Preferred <br>Stock<br>(000)** |
| **Beginning Balance** | $— | @ | $1250 |
| Purchases |  |  |  |
| Sales | (— |)† |  |
| Amortization of discount |  |  |  |
| Transfers in |  |  |  |
| Transfers out |  |  |  |
| Corporate actions |  |  |  |
| Change in unrealized appreciation (depreciation) |  |  | (76) |
| Realized gains (losses) | (— | @) |  |
| **Ending Balance** | $— |  | $1174 |
| Net change in unrealized appreciation <br>(depreciation) from investments still <br>held as of December 31, 2022 | $— |  | $(76) |

---

@ Value is less than $500.

† Includes a security valued at zero.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value at<br>December 31, 2022<br>(000)** | **Valuation<br>Technique** | **Unobservable<br>Input** | **Amount** | **Impact to<br>Valuation from an<br>Increase in Input\*** |
| Preferred Stock | $1174 | Market Transaction Method | Precedent Transaction | $38.24 | Increase |

---

\* 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**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 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 U.S. 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. Derivative instruments used by the Fund

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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 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 writes 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. The Fund may write call and put options on stock indexes, futures, securities or currencies it owns or in which it may invest. Writing put options tend to increase the Fund's exposure to the underlying instrument. Writing call options tend to decrease the Fund's exposure to the underlying instruments. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability. Any liability recorded is subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the net realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. When options

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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.

As of December 31, 2022, the Fund did not have any outstanding purchased options.

**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.

As of December 31, 2022, the Fund did not have any open futures contracts.

**Foreign Currency Forward Exchange Contracts:** In connection with its investments in foreign securities, the Fund also entered into contracts with banks, brokers/dealers to purchase or sell 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. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Liability Derivatives<br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Foreign Currency <br>Forward Exchange <br>Contracts | Unrealized Depreciation on<br>Foreign Currency Forward<br>Exchange Contracts | Currency Risk | $(16) |

---

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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Foreign Currency Forward<br>Exchange Contracts | $(690) |
| Currency Risk | Investments (Purchased Options) | (1209)(a) |
| Equity Risk | Futures Contracts | 241 |
| Total |  | $(1658) |

---

(a) Amounts are included in Realized Gain (Loss) on Investments Sold in the Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Depreciation** | **Change in Unrealized Depreciation** | **Change in Unrealized Depreciation** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Foreign Currency Forward<br>Exchange Contracts | $(32) |

---

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(c)<br>(000)** | **Liabilities(c)<br>(000)** |
| Foreign Currency Forward Exchange Contracts(b) | $— | $(16) |

---

(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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Liability <br>Derivatives<br>Presented in<br>the Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Pledged<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| Barclays Bank PLC | $6 | $— | $— | $6 |
| Citibank NA | 7 |  |  | 7 |
| Goldman Sachs International | 3 |  |  | 3 |
| Total | $16 | $— | $— | $16 |

---

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Foreign Currency Forward Exchange Contracts:** | **Foreign Currency Forward Exchange Contracts:** |
| Average monthly principal amount  | $7939000 |
| **Futures Contracts:** | **Futures Contracts:** |
| Average monthly notional value | $18181000 |
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | $390000 |

---

**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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in <br>the Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $7419<br> (d) | $— | $(7419)(e)(f) | $0 |

---

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

(e) The Fund received cash collateral of approximately $2,472,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $5,250,000 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 & <br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stocks | $2472 | $— | $— | $— | $2472 |
| **Total Borrowings** | $**2472** | $**—** | $**—** | $**—** | $**2472** |
| **Gross amount of<br>recognized liabilities<br>for securities lending<br>transactions** |  |  |  |  | $**2472** |

---

**7. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

respective securities. Most expenses of the Company 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<br>billion** | **Over $1<br>billion** |
| 0.65% | 0.60% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.50% 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 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares, 0.85% for Class R6 shares and 0.85% for Class IR 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $281,000 of advisory fees were waived and 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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $47,998,000 and $61,475,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

The Fund invests in Morgan Stanley China A Share Fund, Inc., a closed-end management investment company advised by an affiliate of 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 Morgan Stanley China A Share Fund, Inc. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $11,000 relating to the Fund's investment in the Morgan Stanley China A Share Fund, Inc.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company/Issuer** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases <br>at Cost<br>(000)** | **Proceeds <br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $6589 | $56271 | $60775 | $4 |  |
| Morgan Stanley <br>China A Share <br>Fund | 939 |  |  |  | @ |
|  | $7528 | $56271 | $60775 | $4 |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company/Issuer (cont'd)** | **Realized <br>Gain <br>(Loss)<br>(000)** | **Change in <br>Unrealized <br>Appreciation <br>(Depreciation) <br>(000)** | **Value <br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $2085 |
| Morgan Stanley <br>China A Share <br>Fund |  | (286) | 653 |
| Total | $— | $(286) | $2738 |

---

@ 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $1000 | $1541 | $2260 | $15167 |

---

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 prior year tax return adjustment, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Distributable<br>Earnings<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $1 | $(1) |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $276 | $2762 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 79.2%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Active International Allocation Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Active International Allocation Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j2327922_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 14.49% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $1,541,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $1,331,000 as taxable at this lower rate.

The Fund intends to pass through foreign tax credits of approximately $331,000 and has derived net income from sources within foreign countries amounting to approximately $3,368,000.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in<br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in<br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in<br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in<br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327922_za006.jpg)

IFIAIAANN<br>5437946 EXP 02.29.24

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![](j2327923_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Advantage Portfolio

Annual Report

December 31, 2022

![](j2327923_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 7 |
| Consolidated Statement of Assets and Liabilities | 9 |
| Consolidated Statement of Operations | 11 |
| Consolidated Statements of Changes in Net Assets | 12 |
| Consolidated Financial Highlights | 14 |
| Notes to Consolidated Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 29 |
| Liquidity Risk Management Program | 30 |
| Federal Tax Notice | 31 |
| U.S. Customer Privacy Notice | 32 |
| Director and Officer Information | 35 |

---

***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j2327923_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Advantage Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Advantage Portfolio Class I | $1000.00 | $977.00 | $1020.92 | $4.24 | $4.33 | 0.85% |
| Advantage Portfolio Class A | 1000.00 | 975.30 | 1019.36 | 5.78 | 5.90 | 1.16 |
| Advantage Portfolio Class L | 1000.00 | 976.80 | 1020.21 | 4.93 | 5.04 | 0.99 |
| Advantage Portfolio Class C | 1000.00 | 972.40 | 1015.88 | 9.20 | 9.40 | 1.85 |
| Advantage Portfolio Class R6<sup>(1)</sup> | 1000.00 | 977.10 | 1021.12 | 4.04 | 4.13 | 0.81 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Advantage Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –54.54%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the Russell 1000® Growth Index (the "Index"), which returned –29.14%.

**Factors Affecting Performance**

• Stubbornly high inflation, rapidly rising interest rates and moderating economic growth were significant headwinds to U.S. equity performance in 2022. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher. The U.S. Federal Reserve and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in stock and bond markets. While tightening financial conditions helped slow some segments of the economy and inflation appeared to be receding from peak levels, the jobs market remained resilient and inflation rates were still historically high at year-end, setting up expectations for additional interest rate hikes in 2023.

• Large-cap growth equities, as measured by the Index, declined over the year. Outside of the energy sector's significant outperformance and a small positive return from utilities, all other Index sectors had negative performance in the year. Communication services, consumer discretionary and information technology were the bottom performing sectors.

• Counterpoint Global seeks high quality companies, which we define primarily as those with sustainable competitive advantages. We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period due to unfavorable stock selection and, to a lesser extent, sector allocations.

• Fear and uncertainty due to concerns about inflation, rising interest rates, geopolitical tensions and ongoing effects of the global pandemic continued to weigh on market sentiment, contributing to greater volatility and a continued aversion towards high growth equities. We believe this rotation away from high growth equities remains driven primarily by non-fundamental factors. Fundamentals across portfolio holdings have largely remained healthy and in line with our expectations. Despite market volatility, we continue to find many high-quality companies with attractive end-game potential due to compelling fundamentals, strong balance sheets and multiple competitive advantages. We believe today's market offers an attractive opportunity to buy unique companies with strong fundamentals that can be long-term winners over the next three to five years. While we have opportunistically added to some positions and initiated new ones, overall we have made few changes as we remain confident in the long-term prospects for the businesses we own.

• Information technology was by far the greatest detractor in the portfolio this period, due to mixed stock selection. An operator of a cloud-based software and services platform that enables merchants to build an ecommerce presence was the largest detractor across the portfolio. Its shares underperformed due to slowing growth in ecommerce following a period of heightened demand during the pandemic. A workforce reduction, ongoing investments in its logistics capabilities, changes in its senior management structure, and investor concerns regarding greater competition also weighed on its shares.

• The portfolio's stock selection and sector allocations in most other sectors diminished relative performance as well; stock selection and an overweight in communication services, and stock selection in consumer discretionary and industrials were also among the greatest detractors. Nearly all

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Advantage Portfolio**

sectors detracted over the period; although the overweight to industrials was a small positive contributor, the impact to relative performance was negligible given the Fund's underperformance. The largest contributing stock across the whole portfolio was a global social networking platform. This company contributed to relative performance due to an average underweight position. Its shares underperformed as it reported a string of disappointing results characterized broadly by softness in online advertising due to privacy changes, as well as high rate of ongoing cost growth.

**Management Strategies**

• As a team, we believe having a market outlook can be an anchor. Our focus is on assessing company prospects over a five-year horizon, and owning a portfolio of unique companies whose market value we believe can increase significantly for underlying fundamental reasons.

![](j2327923_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A , L , C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Advantage Portfolio**

**Performance Compared to the Russell 1000<sup>®</sup> Growth Index<sup>(1)</sup> and the Lipper Multi-Cap Growth Funds Index<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(7)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –54.54% | –0.06% | 8.42% | 8.05% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –54.71 | –0.38 | 8.06 | 9.68 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –57.09 | –1.45 | 7.48 | 9.21 |
| Fund — Class L Shares <br>w/o sales charges<sup>(4)</sup> | –54.61 | –0.17 | 8.31 | 7.92 |
| Fund — Class C Shares <br>w/o sales charges<sup>(6)</sup> | –55.02 | –1.08 |  | 3.57 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(6)</sup> | –55.36 | –1.08 |  | 3.57 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(5)</sup> | –54.53 | –0.01 |  | 7.11 |
| Russell 1000<sup>®</sup> Growth Index | –29.14 | 10.96 | 14.10 | 11.42 |
| Lipper Multi-Cap Growth <br>Funds Index | –34.29 | 7.15 | 11.35 | 8.99 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Russell 1000<sup>®</sup> Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000<sup>®</sup> Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000<sup>®</sup> Index is an index of approximately 1,000 of the largest U.S. companies based on a combination of market capitalization and current index membership. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Multi-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. The Funds' Lipper category changed from Lipper Multi-Cap Growth Funds to Lipper Large-Cap Growth Funds.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> On May 21, 2010 Class C and Class I shares of Van Kampen Core Growth Fund (the "Predecessor Fund") were reorganized into Class L and Class I shares of Morgan Stanley Advantage Portfolio (the "Fund"), respectively. Class L and Class I shares' returns of the Fund will differ from the Predecessor Fund as they have different expenses. Performance shown for the Fund's Class I and Class L shares reflects the performance of the shares of the Predecessor Fund for periods prior to May 21, 2010. The Class C and I shares of the Predecessor Fund commenced operations on June 30, 2008. Class P shares, which were renamed Class A shares effective September 9, 2013, commenced operations on May 21, 2010.

<sup>(5)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(6)</sup> Commenced offering on April 30, 2015.

<sup>(7)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Advantage Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.7%)** | **Common Stocks (98.7%)** | **Common Stocks (98.7%)** |
| Aerospace & Defense (2.3%) | Aerospace & Defense (2.3%) | Aerospace & Defense (2.3%) |
| Axon Enterprise, Inc. (a) | 26583 | $4411 |
| Capital Markets (1.7%) | Capital Markets (1.7%) | Capital Markets (1.7%) |
| Intercontinental Exchange, Inc. | 32346 | 3318 |
| Chemicals (1.9%) | Chemicals (1.9%) | Chemicals (1.9%) |
| Sherwin-Williams Co. | 15197 | 3607 |
| Entertainment (4.1%) | Entertainment (4.1%) | Entertainment (4.1%) |
| ROBLOX Corp., Class A (a) | 277785 | 7906 |
| Health Care Equipment & Supplies (1.0%) | Health Care Equipment & Supplies (1.0%) | Health Care Equipment & Supplies (1.0%) |
| Intuitive Surgical, Inc. (a) | 7552 | 2004 |
| Health Care Technology (1.6%) | Health Care Technology (1.6%) | Health Care Technology (1.6%) |
| Veeva Systems, Inc., Class A (a) | 19001 | 3066 |
| Hotels, Restaurants & Leisure (0.9%) | Hotels, Restaurants & Leisure (0.9%) | Hotels, Restaurants & Leisure (0.9%) |
| Airbnb, Inc., Class A (a) | 20375 | 1742 |
| Information Technology Services (25.7%) | Information Technology Services (25.7%) | Information Technology Services (25.7%) |
| Adyen NV (Netherlands) (a) | 5447 | 7562 |
| Block, Inc., Class A (a) | 81046 | 5093 |
| Cloudflare, Inc., Class A (a) | 237281 | 10728 |
| Okta, Inc. (a) | 21309 | 1456 |
| Shopify, Inc., Class A (Canada) (a) | 297550 | 10328 |
| Snowflake, Inc., Class A (a) | 99146 | 14231 |
|  |  | 49398 |
| Interactive Media & Services (7.0%) | Interactive Media & Services (7.0%) | Interactive Media & Services (7.0%) |
| Meta Platforms, Inc., Class A (a) | 26169 | 3149 |
| Pinterest, Inc., Class A (a) | 88721 | 2154 |
| ZoomInfo Technologies, Inc., Class A (a) | 267967 | 8069 |
|  |  | 13372 |
| Internet & Direct Marketing Retail (15.4%) | Internet & Direct Marketing Retail (15.4%) | Internet & Direct Marketing Retail (15.4%) |
| Amazon.com, Inc. (a) | 107800 | 9055 |
| Chewy, Inc., Class A (a) | 200578 | 7437 |
| DoorDash, Inc., Class A (a) | 166008 | 8105 |
| MercadoLibre, Inc. (a) | 5982 | 5062 |
|  |  | 29659 |
| Life Sciences Tools & Services (3.5%) | Life Sciences Tools & Services (3.5%) | Life Sciences Tools & Services (3.5%) |
| Illumina, Inc. (a) | 32801 | 6632 |
| Media (5.6%) | Media (5.6%) | Media (5.6%) |
| Trade Desk, Inc., Class A (a) | 239402 | 10732 |
| Pharmaceuticals (7.0%) | Pharmaceuticals (7.0%) | Pharmaceuticals (7.0%) |
| Royalty Pharma PLC, Class A | 339774 | 13428 |
| Road & Rail (7.2%) | Road & Rail (7.2%) | Road & Rail (7.2%) |
| Uber Technologies, Inc. (a) | 560523 | 13862 |
| Semiconductors & Semiconductor Equipment (7.2%) | Semiconductors & Semiconductor Equipment (7.2%) | Semiconductors & Semiconductor Equipment (7.2%) |
| ASML Holding NV (Netherlands) | 23534 | 12859 |
| NVIDIA Corp. | 6252 | 914 |
|  |  | 13773 |
| Software (5.0%) | Software (5.0%) | Software (5.0%) |
| Datadog, Inc., Class A (a) | 117993 | 8673 |
| Zoom Video Communications, Inc., Class A (a) | 12568 | 851 |
|  |  | 9524 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Specialty Retail (1.6%) | Specialty Retail (1.6%) | Specialty Retail (1.6%) |
| Floor & Decor Holdings, Inc., Class A (a) | 44448 | $3095 |
| **Total Common Stocks (Cost $239,345)** | **Total Common Stocks (Cost $239,345)** | 189529 |
| **Investment Company (0.5%)** | **Investment Company (0.5%)** | **Investment Company (0.5%)** |
| Grayscale Bitcoin Trust (a) **(Cost $4,857)** | 128121 | 1062 |
| **Short-Term Investment (0.9%)** | **Short-Term Investment (0.9%)** | **Short-Term Investment (0.9%)** |
| Investment Company (0.9%) | Investment Company (0.9%) | Investment Company (0.9%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $1,672)** | 1672031 | 1672 |
| **Total Investments Excluding Purchased <br>Options (100.1%) (Cost $245,874)** |  | 192263 |
| **Total Purchased Options Outstanding (0.2%) <br>(Cost $622)** | **Total Purchased Options Outstanding (0.2%) <br>(Cost $622)** | 397 |
| **Total Investments (100.3%) (Cost $246,496) (b)(c)(d)** | **Total Investments (100.3%) (Cost $246,496) (b)(c)(d)** | 192660 |
| Liabilities in Excess of Other Assets (–0.3%) | Liabilities in Excess of Other Assets (–0.3%) | (657) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $192003 |

---

(a) Non-income producing security.

(b) Securities are available for collateral in connection with purchased options.

(c) The approximate fair value and percentage of net assets, $7,562,000 and 3.9%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(d) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $266,530,000. The aggregate gross unrealized appreciation is approximately $0 and the aggregate gross unrealized depreciation is approximately $72,592,000, resulting in net unrealized depreciation of approximately $72,592,000.

The accompanying notes are an integral part of the consolidated financial statements.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Advantage Portfolio**

**Call Options Purchased:**

The Fund had the following call options purchased open at December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional <br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Depreciation<br>(000)** |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.53 | Jul-23 | 61815155 | 61815 | $178 | $307 | $(129) |
| Standard Chartered Bank | USD/CNH CNH | 7.57 | Aug-23 | 70014681 | 70015 | 218 | 312 | (94) |
| Goldman Sachs International | USD/CNH CNH | 7.87 | Oct-23 | 542601 | 543 | 1 | 3 | (2) |
|  |  |  |  |  |  | $397 | $622 | $(225) |

---

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Information Technology Services | 25.7% |
| Other\* | 20.0 |
| Internet & Direct Marketing Retail | 15.4 |
| Road & Rail | 7.2 |
| Semiconductors & Semiconductor Equipment | 7.2 |
| Pharmaceuticals | 7.0 |
| Interactive Media & Services | 7.0 |
| Media | 5.6 |
| Software | 4.9 |
| 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 consolidated financial statements.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Advantage Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $244,824) | $190988 |
| Investment in Security of Affiliated Issuer, at Value (Cost $1,672) | 1672 |
| Total Investments in Securities, at Value (Cost $246,496) | 192660 |
| Foreign Currency, at Value (Cost $1) | 1 |
| Receivable for Investments Sold | 928 |
| Receivable for Fund Shares Sold | 157 |
| Tax Reclaim Receivable | 20 |
| Receivable from Affiliate | 8 |
| Other Assets | 59 |
| **Total Assets** | 193833 |
| **Liabilities:** | **Liabilities:** |
| Payable for Fund Shares Redeemed | 835 |
| Due to Broker | 400 |
| Payable for Advisory Fees | 380 |
| Payable for Professional Fees | 64 |
| Payable for Sub Transfer Agency Fees — Class I | 36 |
| Payable for Sub Transfer Agency Fees — Class A | 10 |
| Payable for Sub Transfer Agency Fees — Class L |  |
| Payable for Sub Transfer Agency Fees — Class C | 4 |
| Payable for Shareholder Services Fees — Class A | 9 |
| Payable for Distribution and Shareholder Services Fees — Class L |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 19 |
| Payable for Administration Fees | 15 |
| Payable for Custodian Fees | 8 |
| 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 R6\* |  |
| Payable for Investments Purchased |  |
| Other Liabilities | 46 |
| **Total Liabilities** | 1830 |
| **Net Assets** | $192003 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $426987 |
| Total Accumulated Loss | (234984 |
| **Net Assets** | $192003 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Advantage Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $112250 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 9278235 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $12.10 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $39913 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 3484936 |
| **Net Asset Value, Redemption Price Per Share** | $11.45 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.63 |
| **Maximum Offering Price Per Share** | $12.08 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $1261 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 105431 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.96 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $20422 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1935913 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.55 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $18157 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1490649 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $12.18 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Advantage Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $36 of Foreign Taxes Withheld) | $598 |
| Dividends from Security of Affiliated Issuer (Note G) | 54 |
| Income from Securities Loaned — Net | 4 |
| Total Investment Income | 656 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 2467 |
| Shareholder Services Fees — Class A (Note D) | 155 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 15 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 340 |
| Sub Transfer Agency Fees — Class I | 304 |
| Sub Transfer Agency Fees — Class A | 71 |
| Sub Transfer Agency Fees — Class L | 1 |
| Sub Transfer Agency Fees — Class C | 24 |
| Administration Fees (Note C) | 304 |
| Professional Fees | 173 |
| Registration Fees | 132 |
| Shareholder Reporting Fees | 79 |
| Transfer Agency Fees — Class I (Note E) | 12 |
| Transfer Agency Fees — Class A (Note E) | 7 |
| Transfer Agency Fees — Class L (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 7 |
| Transfer Agency Fees — Class R6\* (Note E) | 3 |
| Custodian Fees (Note F) | 29 |
| Directors' Fees and Expenses | 11 |
| Pricing Fees | 3 |
| Interest Expenses | 2 |
| Other Expenses | 32 |
| Total Expenses | 4174 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (215) |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (1) |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (3) |
| Waiver of Advisory Fees (Note B) | (153) |
| Distribution Fees- Class L Shares Waived (Note D) | (14) |
| Rebate from Morgan Stanley Affiliate (Note G) | (7) |
| Net Expenses | 3781 |
| **Net Investment Loss** | (3125) |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (172835) |
| Foreign Currency Translation | (1) |
| Net Realized Loss | (172836) |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (209620) |
| Foreign Currency Translation | (1) |
| Net Change in Unrealized Appreciation (Depreciation) | (209621) |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (382457) |
| Net Decrease in Net Assets Resulting from Operations | $(385582) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Advantage Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(3125) | $(8136) |
| Net Realized Gain (Loss) | (172836) | 156801 |
| Net Change in Unrealized Appreciation (Depreciation) | (209621) | (191534) |
| Net Decrease in Net Assets Resulting from Operations | (385582) | (42869) |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (28344) | (117112) |
| **Class A** | (10103) | (24345) |
| **Class L** | (335) | (827) |
| **Class C** | (5539) | (14072) |
| **Class R6\*** | (4001) | (8952) |
| Total Dividends and Distributions to Shareholders | (48322) | (165308) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 124402 | 278844 |
| Distributions Reinvested | 27125 | 109929 |
| Redeemed | (324038) | (322743) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 11681 | 48973 |
| Distributions Reinvested | 9986 | 23959 |
| Redeemed | (29870) | (54295) |
| **Class L:** | **Class L:** | **Class L:** |
| Distributions Reinvested | 335 | 827 |
| Redeemed | (914) | (1101) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 5442 | 17761 |
| Distributions Reinvested | 5394 | 13699 |
| Redeemed | (19460) | (16135) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 7496 | 16626 |
| Distributions Reinvested | 4001 | 8952 |
| Redeemed | (10010) | (7061) |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (188430) | 118235 |
| Total Decrease in Net Assets | (622334) | (89942) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 814337 | 904279 |
| End of Period | $192003 | $814337 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Advantage Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 6204 | 6361 |
| Shares Issued on Distributions Reinvested | 2067 | 3273 |
| Shares Redeemed | (16155) | (7631) |
| Net Increase (Decrease) in Class I Shares Outstanding | (7884) | 2003 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 588 | 1130 |
| Shares Issued on Distributions Reinvested | 804 | 742 |
| Shares Redeemed | (1547) | (1330) |
| Net Increase (Decrease) in Class A Shares Outstanding | (155) | 542 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Issued on Distributions Reinvested | 26 | 25 |
| Shares Redeemed | (44) | (27) |
| Net Decrease in Class L Shares Outstanding | (18) | (2) |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 307 | 459 |
| Shares Issued on Distributions Reinvested | 471 | 449 |
| Shares Redeemed | (1099) | (417) |
| Net Increase (Decrease) in Class C Shares Outstanding | (321) | 491 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 332 | 359 |
| Shares Issued on Distributions Reinvested | 303 | 265 |
| Shares Redeemed | (562) | (156) |
| Net Increase in Class R6 Shares Outstanding | 73 | 468 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $33.57 | $43.28 | $26.06 | $20.98 | $21.45 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.14) | (0.32) | (0.19) | (0.04) | (0.01) |
| Net Realized and Unrealized Gain (Loss) | (17.90) | (1.61) | 19.64 | 5.61 | 0.87 |
| Total from Investment Operations | (18.04) | (1.93) | 19.45 | 5.57 | 0.86 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (3.43) | (7.78) | (2.23) | (0.49) | (1.33) |
| **Net Asset Value, End of Period** | $12.10 | $33.57 | $43.28 | $26.06 | $20.98 |
| **Total Return<sup>(3)</sup>** | (54.54)% | (4.45)% | 74.79% | 26.60% | 3.74% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $112250 | $576158 | $656030 | $296843 | $156782 |
| Ratio of Expenses Before Expense Limitation | 0.97% | 0.88% | 0.89% | 0.93% | 1.01% |
| Ratio of Expenses After Expense Limitation | 0.85%<sup>(4)</sup> | 0.85%<sup>(4)</sup> | 0.84%<sup>(4)</sup> | 0.84%<sup>(4)</sup> | 0.84%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.85%<sup>(4)</sup> | N/A | N/A | 0.84%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (0.68)%<sup>(4)</sup> | (0.73)%<sup>(4)</sup> | (0.54)%<sup>(4)</sup> | (0.15)%<sup>(4)</sup> | (0.02)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 69% | 73% | 70% | 79% |

---

(1) Not consolidated.

(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%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $32.26 | $42.02 | $25.42 | $20.54 | $21.10 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.19) | (0.44) | (0.28) | (0.13) | (0.08) |
| Net Realized and Unrealized Gain (Loss) | (17.19) | (1.54) | 19.11 | 5.50 | 0.85 |
| Total from Investment Operations | (17.38) | (1.98) | 18.83 | 5.37 | 0.77 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (3.43) | (7.78) | (2.23) | (0.49) | (1.33) |
| **Net Asset Value, End of Period** | $11.45 | $32.26 | $42.02 | $25.42 | $20.54 |
| **Total Return<sup>(3)</sup>** | (54.71)% | (4.72)% | 74.27% | 26.20% | 3.37% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $39913 | $117424 | $130176 | $80743 | $42959 |
| Ratio of Expenses Before Expense Limitation | 1.23% | 1.14% | N/A | 1.21% | 1.29% |
| Ratio of Expenses After Expense Limitation | 1.19%<sup>(4)</sup> | 1.14%<sup>(4)</sup> | 1.15%<sup>(4)</sup> | 1.19%<sup>(4)</sup> | 1.17%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.19%<sup>(4)</sup> | N/A | N/A | 1.19%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.02)%<sup>(4)</sup> | (1.02)%<sup>(4)</sup> | (0.84)%<sup>(4)</sup> | (0.50)%<sup>(4)</sup> | (0.37)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 69% | 73% | 70% | 79% |

---

(1) Not consolidated.

(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%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $33.31 | $43.04 | $25.95 | $20.92 | $21.42 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.16) | (0.36) | (0.21) | (0.06) | (0.05) |
| Net Realized and Unrealized Gain (Loss) | (17.76) | (1.59) | 19.53 | 5.58 | 0.88 |
| Total from Investment Operations | (17.92) | (1.95) | 19.32 | 5.52 | 0.83 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (3.43) | (7.78) | (2.23) | (0.49) | (1.33) |
| **Net Asset Value, End of Period** | $11.96 | $33.31 | $43.04 | $25.95 | $20.92 |
| **Total Return<sup>(3)</sup>** | (54.61)% | (4.54)% | 74.65% | 26.44% | 3.61% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1261 | $4120 | $5391 | $4363 | $3751 |
| Ratio of Expenses Before Expense Limitation | 1.79% | 1.65% | 1.66% | 1.69% | 1.82% |
| Ratio of Expenses After Expense Limitation | 0.99%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.98%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.99%<sup>(4)</sup> | N/A | N/A | 0.95%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (0.81)%<sup>(4)</sup> | (0.82)%<sup>(4)</sup> | (0.64)%<sup>(4)</sup> | (0.25)%<sup>(4)</sup> | (0.21)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 69% | 73% | 70% | 79% |

---

(1) Not consolidated.

(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%.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $30.48 | $40.44 | $24.68 | $20.10 | $20.82 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.31) | (0.71) | (0.50) | (0.29) | (0.24) |
| Net Realized and Unrealized Gain (Loss) | (16.19) | (1.47) | 18.49 | 5.36 | 0.85 |
| Total from Investment Operations | (16.50) | (2.18) | 17.99 | 5.07 | 0.61 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (3.43) | (7.78) | (2.23) | (0.49) | (1.33) |
| **Net Asset Value, End of Period** | $10.55 | $30.48 | $40.44 | $24.68 | $20.10 |
| **Total Return<sup>(3)</sup>** | (55.02)% | (5.41)% | 73.10% | 25.27% | 2.64% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $20422 | $68793 | $71419 | $42054 | $32706 |
| Ratio of Expenses Before Expense Limitation | 1.95% | 1.84% | N/A | 1.93% | 2.00% |
| Ratio of Expenses After Expense Limitation | 1.90%<sup>(4)</sup> | 1.84%<sup>(4)</sup> | 1.85%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.88%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.90%<sup>(4)</sup> | N/A | N/A | 1.90%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.72)%<sup>(4)</sup> | (1.72)%<sup>(4)</sup> | (1.55)%<sup>(4)</sup> | (1.20)%<sup>(4)</sup> | (1.08)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 69% | 73% | 70% | 79% |

---

(1) Not consolidated.

(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%.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $33.74 | $43.41 | $26.12 | $21.02 | $21.49 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.13) | (0.29) | (0.16) | (0.03) | (0.01) |
| Net Realized and Unrealized Gain (Loss) | (18.00) | (1.60) | 19.68 | 5.62 | 0.87 |
| Total from Investment Operations | (18.13) | (1.89) | 19.52 | 5.59 | 0.86 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (3.43) | (7.78) | (2.23) | (0.49) | (1.33) |
| **Net Asset Value, End of Period** | $12.18 | $33.74 | $43.41 | $26.12 | $21.02 |
| **Total Return<sup>(4)</sup>** | (54.53)% | (4.36)% | 74.93% | 26.64% | 3.74% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $18157 | $47842 | $41263 | $28983 | $26601 |
| Ratio of Expenses Before Expense Limitation | 0.86% | 0.77% | N/A | 0.83% | 0.93% |
| Ratio of Expenses After Expense Limitation | 0.81%<sup>(5)</sup> | 0.77%<sup>(5)</sup> | 0.79%<sup>(5)</sup> | 0.80%<sup>(5)</sup> | 0.80%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.81%<sup>(5)</sup> | N/A | N/A | 0.80%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Loss | (0.64)%<sup>(5)</sup> | (0.65)%<sup>(5)</sup> | (0.47)%<sup>(5)</sup> | (0.10)%<sup>(5)</sup> | (0.04)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 69% | 73% | 70% | 79% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Advantage Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:**The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Advantage Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary

represented approximately $1,383,000 or approximately 0.72% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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/dealers; (3) listed options are valued at

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $4411 | $— | $— | $4411 |
| Capital Markets | 3318 |  |  | 3318 |
| Chemicals | 3607 |  |  | 3607 |
| Entertainment | 7906 |  |  | 7906 |
| Health Care <br>Equipment & Supplies | 2004 |  |  | 2004 |
| Health Care Technology | 3066 |  |  | 3066 |
| Hotels, Restaurants & <br>Leisure | 1742 |  |  | 1742 |
| Information Technology <br>Services | 41836 | 7562 |  | 49398 |
| Interactive Media & <br>Services | 13372 |  |  | 13372 |
| Internet & Direct <br>Marketing Retail | 29659 |  |  | 29659 |
| Life Sciences Tools & <br>Services | 6632 |  |  | 6632 |
| Media | 10732 |  |  | 10732 |
| Pharmaceuticals | 13428 |  |  | 13428 |
| Road & Rail | 13862 |  |  | 13862 |
| Semiconductors & <br>Semiconductor <br>Equipment | 13773 |  |  | 13773 |
| Software | 9524 |  |  | 9524 |
| Specialty Retail | 3095 |  |  | 3095 |
| **Total Common Stocks** | **181967** | **7562** | **—** | **189529** |
| **Investment Company** | 1062 |  |  | 1062 |
| **Call Options Purchased** |  | 397 |  | 397 |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 1672 |  |  | 1672 |
| **Total Assets** | $**184701** | $**7959** | $**—** | $**192660** |

---

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 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 U.S. 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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes an option, it sells to another party the right

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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.

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Consolidated Statement of<br>Assets and Liabilities<br>Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Purchased Options | Investments, at Value<br>(Purchased Options) | Currency Risk | $397<br> (a) |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(4344)(b) |

---

(b) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $3524<br> (c) |

---

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(d)<br>(000)** | **Liabilities(d)<br>(000)** |
| Purchased Options | $397<br> (a) | $— |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Asset <br>Derivatives<br>Presented in<br>the Consolidated<br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received(e)<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| Goldman Sachs International | $1 | $— | $(1) | $0 |
| JP Morgan Chase Bank NA | 178 |  | (178) | 0 |
| Standard Chartered Bank | 218 |  | (210) | 8 |
| Total | $397 | $— | $(389) | $8 |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 465,554,000 |

---

**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 Consolidated 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.

At December 31, 2022, the Fund did not have any outstanding securities on loan.

**6. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 $750<br>million** | **Next $750<br>million** | **Over $1.5<br>billion** |
| 0.65% | 0.60% | 0.55% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.61% 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 0.85% for Class I shares, 1.20% for Class A shares, 0.99% for Class L shares, 1.95% for Class C shares and 0.81% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $153,000 of advisory fees were waived and approximately $219,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Distributor has agreed to waive for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate, the 12b-1 fees on Class L shares of the Fund to the extent it exceeds 0.04% of the average daily net assets of such shares on an annualized basis. For the year ended December 31, 2022, this waiver amounted to approximately $14,000.

The Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $200,796,000 and $421,734,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $7,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment <br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br> (000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $14500 | $210075 | $222903 | $54 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment <br>Company (cont'd)** | **Realized<br>Gain <br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $1672 |

---

During the year ended December 31, 2022, the Fund incurred less than $500 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

be taken in a tax return. Management has concluded 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022 <br>Distributions<br>Paid From:** | **2022 <br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $48322 | $44653 | $120655 |

---

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 a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss <br>(000)** | **Paid-in-<br>Capital <br>(000)** |
| $7525 | $(7525) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $107,026,000 and $54,709,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 55.0%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrency indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

(including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):**On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. —<br>Advantage Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Advantage Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j2327923_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated and paid approximately $48,322,000 as a long-term capital gain distribution.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327923_za006.jpg)

IFIADVANN<br>5438011 EXP 02.29.24

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![](j2327924_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

American Resilience Portfolio

Annual Report

December 31, 2022

![](j2327924_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 7 |
| Statement of Assets and Liabilities | 8 |
| Statement of Operations | 9 |
| Statement of Changes in Net Assets | 10 |
| Financial Highlights | 11 |
| Notes to Financial Statements | 15 |
| Report of Independent Registered Public Accounting Firm | 21 |
| Liquidity Risk Management Program | 22 |
| U.S. Customer Privacy Notice | 23 |
| Director and Officer Information | 26 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in American Resilience Portfolio (the "Fund") performed during the period beginning July 29, 2022 (when the Fund commenced operations) and ended December 31, 2022.

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,

![](j2327924_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**American Resilience Portfolio**

As a shareholder of the Fund, you 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 period and held for the entire period 7/29/22 - 12/31/22.

**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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/29/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| American Resilience Portfolio Class I^ | $1000.00 | $933.00 | $1018.26 | $2.87 | $3.00 | 0.70% |
| American Resilience Portfolio Class A^ | 1000.00 | 931.00 | 1016.77 | 4.31 | 4.50 | 1.05 |
| American Resilience Portfolio Class C^ | 1000.00 | 929.00 | 1013.59 | 7.37 | 7.70 | 1.80 |
| American Resilience Portfolio Class R6^ | 1000.00 | 933.00 | 1018.47 | 2.67 | 2.79 | 0.65 |

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\* 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 155/365 (to reflect the actual days accrued in the period).

\*\* Annualized.

^ The Fund commenced operations on July 29, 2022.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**American Resilience Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the period from Fund inception on July 29, 2022 through December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –6.70%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the S&P 500® Index (the "Index"), which returned –6.33% for the same period.

**Factors Affecting Performance**

• The U.S. market dipped in December 2022, down 5.8% in the month with all sectors negative. Despite the December weakness, the Index finished up +7.6% for the fourth quarter of 2022. Energy (+22%) was the strongest performer in the quarter, followed by industrials (+19%). Some of the portfolio's key sectors performed strongly, with health care (+13%) and consumer staples (+12%) finishing ahead of the Index, while information technology (+5%) — the portfolio's other main sector — was a touch behind the Index. The only sectors to finish in the red were consumer discretionary, which was down 10% largely due to Tesla (–54%) and Amazon (–26%) (neither of which is owned in American Resilience) and communication services (–1%). The market's gains in the final quarter of the year, however, were not enough to compensate for weakness in August and September, resulting in a negative return for the Index in this reporting period overall.

• The portfolio's modest underperformance since inception was due to negative stock selection, primarily driven by health care weakness, as the portfolio is concentrated in the life sciences and equipment sub-sectors rather than pharmaceuticals and providers. This more than outweighed the smaller benefit from information technology's outperformance. Sector allocation was positive, thanks to the underweight in consumer discretionary as well as the overweight in health care, despite the headwind from the overweight in information technology and zero weight to energy.

• The top contributors to the Fund's absolute performance since inception were Procter & Gamble, PMI, Intercontinental Exchange, Adobe and Becton Dickinson. The leading detractors were Microsoft, Fidelity National Information Services, Alphabet, Accenture and Medtronic.

**Management Strategies**

**Multiples have Tumbled, are Earnings Next?**

• At the start of 2022, we only had two worries about the equity market, but they were significant ones: the multiple and the earnings. In 2022, forward earnings held up reasonably well, up 3% for the S&P 500 Index.<sup>(i)</sup> The 18% fall in the index, therefore, has been entirely down to a sharp derating in public markets, with the S&P 500 forward earnings multiple falling from 21.3x to 16.7x. This derating has been particularly concentrated in the more expensive "growthier" companies, with communication services, consumer discretionary and information technology all falling over 28%. The combination of resilient earnings and this skewed derating have made 2022 a very unusual year.

• At the start of 2023, our two worries from 12 months ago have reduced to one and a bit. The fall in the S&P 500 multiple to 16.7x, now only 12% above the 2003-19 average as against the 43% premium at the start of the year, suggests that the market is no longer as overvalued as it was, though of course the multiple could fall below average levels if there is a major economic downturn. It is earnings that remain the major concern. Inflation should help top-line growth, in nominal terms at least, but the margins do look stretched, with the S&P 500 forward EBIT (earnings before interest and taxes) margin at 17.3%, only 100 basis points (bps) below the pre-COVID peak and a full 200 bps ahead of the 2003-19 average. This is consistent with the world of excess demand we have been in, which has given all sorts of lower quality companies pricing power. Companies' earnings issues in this period have tended to be idiosyncratic, rather than due to systematic demand issues. Many have come from either the direct impacts of COVID-19, for instance in messing up their supply

<sup>(i)</sup> Source for all earnings, earnings estimates and earnings multiples data used in this report: FactSet. Data as of December 2022. One basis point = 0.01%

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**American Resilience Portfolio**

chains, or from the post-pandemic hangover, with former "COVID heroes" — beneficiaries of the virtual world of the pandemic — having to adjust to the return towards an IRL (in real life) world.

• It is striking that bottom-up forward earnings estimates still look relatively healthy, despite what has been described in various forums as the most predicted recession in history, with 2023 S&P 500 earnings estimated to be 5% higher than 2022 despite the headwind from the strong dollar, and 41% above the pre-COVID 2019 level. Central banks, particularly in the U.S., are raising rates aggressively to deal with inflation by attempting to slow demand. There is discussion about exactly how far they need to go, weighing up the balance between slowing goods inflation and continuing wage rises, as well as arcane discussion of the lags in the shelter element of the U.S. inflation calculation. We are in no position to take a view on these intricacies as mighty economists face off against each other. However, the basic fact remains that even in the case of a successful soft landing, the consensus economic outlook is for 2023 growth to roughly grind to a halt in most Western economies. The impacts of central bank actions are already being felt in the more interest rate sensitive areas, notably housing, and consumers are facing an ugly squeeze on real incomes thanks to inflation; but labor markets still remain tight, with U.S. unemployment still down at 3.5%, keeping upwards pressure on wages — and on central bank action. Forward-looking indicators have turned down, but most of the economic pain, and thus earnings pain, is still to come.

• As the excess demand of 2021 and 2022 shifts towards excess supply in 2023, there is likely to be an earnings recession, as margins fall from current peaks. Once again, the market will discover which companies have resilient earnings in tough times. Our bet, as ever, is that pricing power and recurring revenue, two of the key criteria for inclusion in our portfolios, will once again show their worth, as they did in the 2008-09 Financial Crisis and in the first half of 2020, during the early days of the pandemic. Compounders should continue to compound. The silver lining of the painful derating of 2022 is that any compounding is now coming on top of a lower multiple. Given that there are only two ways of

losing money in equities — the earnings going away, or the multiple going away — owning a portfolio of resilient earnings at a reasonable multiple does seem a sensible approach in such uncertain times.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**American Resilience Portfolio**

![](j2327924_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on July 29, 2022.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the S&P 500<sup>®</sup> Index** **<sup>(1)</sup>** **and the Lipper Multi-Cap Core Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | **One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –6.70% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –6.90 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> |  |  |  | –11.75 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –7.10 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> |  |  |  | –8.03 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –6.70 |
| S&P 500<sup>®</sup> Index |  |  |  | –6.33 |
| Lipper Multi-Cap Core Funds Index |  |  |  | –5.25 |

---

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

<sup>(1)</sup> The Standard & Poor's 500<sup>®</sup> Index (S&P 500<sup>®</sup> Index) measures the performance of the large cap segment of the U.S. equities market, covering approximately 80% of the U.S. equities market. The Index includes 500 leading companies in leading industries of the U.S. economy. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on July 29, 2022.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**American Resilience Portfolio**

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value<br>(000)** |
| **Common Stocks (100.2%)** | **Common Stocks (100.2%)** | **Common Stocks (100.2%)** |
| Beverages (1.9%) | Beverages (1.9%) | Beverages (1.9%) |
| Coca-Cola Co. | 276 | $18 |
| Capital Markets (5.8%) | Capital Markets (5.8%) | Capital Markets (5.8%) |
| Intercontinental Exchange, Inc. | 386 | 40 |
| Moody's Corp. | 52 | 14 |
|  |  | 54 |
| Electronic Equipment, Instruments & Components (2.7%) | Electronic Equipment, Instruments & Components (2.7%) | Electronic Equipment, Instruments & Components (2.7%) |
| Amphenol Corp., Class A | 333 | 25 |
| Health Care Equipment & Supplies (14.0%) | Health Care Equipment & Supplies (14.0%) | Health Care Equipment & Supplies (14.0%) |
| Abbott Laboratories | 270 | 30 |
| Baxter International, Inc. | 523 | 27 |
| Becton Dickinson & Co. | 131 | 33 |
| Medtronic PLC | 337 | 26 |
| Steris PLC | 82 | 15 |
|  |  | 131 |
| Household Products (3.2%) | Household Products (3.2%) | Household Products (3.2%) |
| Procter & Gamble Co. | 200 | 30 |
| Information Technology Services (19.0%) | Information Technology Services (19.0%) | Information Technology Services (19.0%) |
| Accenture PLC, Class A | 178 | 47 |
| Automatic Data Processing, Inc. | 141 | 34 |
| Broadridge Financial Solutions, Inc. | 170 | 23 |
| Fidelity National Information Services, Inc. | 36 | 2 |
| PayPal Holdings, Inc. (a) | 234 | 17 |
| Visa, Inc., Class A | 258 | 54 |
|  |  | 177 |
| Interactive Media & Services (2.6%) | Interactive Media & Services (2.6%) | Interactive Media & Services (2.6%) |
| Alphabet, Inc., Class A (a) | 268 | 24 |
| Life Sciences Tools & Services (12.7%) | Life Sciences Tools & Services (12.7%) | Life Sciences Tools & Services (12.7%) |
| Danaher Corp. | 176 | 47 |
| IQVIA Holdings, Inc. (a) | 117 | 24 |
| Thermo Fisher Scientific, Inc. | 86 | 47 |
|  |  | 118 |
| Machinery (4.9%) | Machinery (4.9%) | Machinery (4.9%) |
| Otis Worldwide Corp. | 390 | 31 |
| Stanley Black & Decker, Inc. | 203 | 15 |
|  |  | 46 |
| Personal Products (3.1%) | Personal Products (3.1%) | Personal Products (3.1%) |
| Estee Lauder Cos., Inc., Class A | 119 | 29 |
| Pharmaceuticals (1.8%) | Pharmaceuticals (1.8%) | Pharmaceuticals (1.8%) |
| Zoetis, Inc. | 115 | 17 |
| Professional Services (2.0%) | Professional Services (2.0%) | Professional Services (2.0%) |
| Equifax, Inc. | 100 | 19 |
| Semiconductors & Semiconductor Equipment (3.0%) | Semiconductors & Semiconductor Equipment (3.0%) | Semiconductors & Semiconductor Equipment (3.0%) |
| Texas Instruments, Inc. | 168 | 28 |
| Software (16.3%) | Software (16.3%) | Software (16.3%) |
| Adobe, Inc. (a) | 56 | 19 |
| Constellation Software, Inc. | 19 | 30 |
| Microsoft Corp. | 309 | 74 |
| Roper Technologies, Inc. | 68 | 29 |
|  |  | 152 |

---

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value<br>(000)** |
| Textiles, Apparel & Luxury Goods (2.7%) | Textiles, Apparel & Luxury Goods (2.7%) | Textiles, Apparel & Luxury Goods (2.7%) |
| NIKE, Inc., Class B | 215 | $25 |
| Tobacco (4.5%) | Tobacco (4.5%) | Tobacco (4.5%) |
| Philip Morris International, Inc. | 417 | 42 |
| **Total Common Stocks (Cost $996)** | **Total Common Stocks (Cost $996)** | 935 |
| **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** |
| Investment Company (1.0%) | Investment Company (1.0%) | Investment Company (1.0%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) **(Cost $9)** | 8755 | 9 |
| **Total Investments (101.2%) (Cost $1,005) (b)** | **Total Investments (101.2%) (Cost $1,005) (b)** | 944 |
| Liabilities in Excess of Other Assets (–1.2%) | Liabilities in Excess of Other Assets (–1.2%) | (11) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $933 |

---

(a) Non-income producing security.

(b) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $1,006,000. The aggregate gross unrealized appreciation is approximately $8,000 and the aggregate gross unrealized depreciation is approximately $70,000, resulting in net unrealized depreciation of approximately $62,000.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 33.2% |
| Information Technology Services | 18.7 |
| Software | 16.0 |
| Health Care Equipment & Supplies | 13.9 |
| Life Sciences Tools & Services | 12.5 |
| Capital Markets | 5.7 |
| 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.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**American Resilience Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $996) | $935 |
| Investment in Security of Affiliated Issuer, at Value (Cost $9) | 9 |
| Total Investments in Securities, at Value (Cost $1,005) | 944 |
| Foreign Currency, at Value (Cost —@) |  |
| Due from Adviser | 90 |
| Prepaid Offering Costs | 70 |
| Dividends Receivable | 1 |
| Receivable from Affiliate |  |
| Other Assets | 4 |
| **Total Assets** | 1109 |
| **Liabilities:** | **Liabilities:** |
| Payable for Offering Costs | 102 |
| Payable for Professional Fees | 57 |
| Payable for Custodian 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 R6 |  |
| Payable for Shareholder Services Fees — Class A |  |
| Payable for Distribution and Shareholder Services Fees — Class C |  |
| Payable for Administration Fees |  |
| Other Liabilities | 15 |
| **Total Liabilities** | 176 |
| **Net Assets** | $933 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $997 |
| Total Accumulated Loss | (64 |
| **Net Assets** | $933 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $793 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 85000 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.33 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $47 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |
| **Net Asset Value, Redemption Price Per Share** | $9.31 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.52 |
| **Maximum Offering Price Per Share** | $9.83 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $46 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.29 |
| **CLASS R6:** | **CLASS R6:** |
| **Net Assets** | $47 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.33 |

---

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**American Resilience Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Period from<br>July 29, 2022^ to<br>December 31, 2022 <br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld) | $6 |
| Dividends from Security of Affiliated Issuer (Note G) |  |
| Total Investment Income | 6 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 72 |
| Offering Costs | 52 |
| Shareholder Reporting Fees | 13 |
| 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 R6 (Note E) | 1 |
| Advisory Fees (Note B) | 2 |
| Custodian Fees (Note F) | 2 |
| Shareholder Services Fees — Class A (Note D) |  |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Administration Fees (Note C) |  |
| Pricing Fees |  |
| Registration Fees |  |
| Other Expenses | 5 |
| Total Expenses | 150 |
| Expenses Reimbursed by Adviser (Note B) | (141 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class R6 (Note B) | (1 |
| Waiver of Advisory Fees (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 3 |
| **Net Investment Income** | 3 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (9 |
| Foreign Currency Translation | (— |
| Net Realized Loss | (9 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (61 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (70 |
| Net Decrease in Net Assets Resulting from Operations | $(67 |

---

^ Commencement of Operations.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**American Resilience Portfolio**

---

| | |
|:---|:---|
| Statement of Changes in Net Assets | **Period from<br>July 29, 2022^ to<br>December 31, 2022<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** |
| Net Investment Income | $3 |
| Net Realized Loss | (9) |
| Net Change in Unrealized Appreciation (Depreciation) | (61) |
| Net Decrease in Net Assets Resulting from Operations | (67) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** |
| Subscribed | 850 |
| **Class A:** | **Class A:** |
| Subscribed | 50 |
| **Class C:** | **Class C:** |
| Subscribed | 50 |
| **Class R6:** | **Class R6:** |
| Subscribed | 50 |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 1000 |
| Total Increase in Net Assets | 933 |
| **Net Assets:** | **Net Assets:** |
| Beginning of Period |  |
| End of Period | $933 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** |
| Shares Subscribed | 85 |
| **Class A:** | **Class A:** |
| Shares Subscribed | 5 |
| **Class C:** | **Class C:** |
| Shares Subscribed | 5 |
| **Class R6:** | **Class R6:** |
| Shares Subscribed | 5 |

---

^ Commencement of Operations.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**American Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class I** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>July 29, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.04 |
| Net Realized and Unrealized Loss | (0.71) |
| Total from Investment Operations | (0.67) |
| **Net Asset Value, End of Period** | $9.33 |
| **Total Return<sup>(4)</sup>** | (6.70)%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $793 |
| Ratio of Expenses Before Expense Limitation | 36.85%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 0.70%<sup>(5)(7)</sup> |
| Ratio of Net Investment Income | 0.91%<sup>(5)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(3)(7)</sup> |
| Portfolio Turnover Rate | 6%<sup>(6)</sup> |

---

(1) Commencement of Operations.

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

(3) Amount is less than 0.005%.

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

(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.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**American Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class A** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>July 29, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.02 |
| Net Realized and Unrealized Loss | (0.71) |
| Total from Investment Operations | (0.69) |
| **Net Asset Value, End of Period** | $9.31 |
| **Total Return<sup>(3)</sup>** | (6.90)%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $47 |
| Ratio of Expenses Before Expense Limitation | 41.47%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation | 1.05%<sup>(4)(6)</sup> |
| Ratio of Net Investment Income | 0.56%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)(7)</sup> |
| Portfolio Turnover Rate | 6%<sup>(5)</sup> |

---

(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) Not annualized.

(6) Annualized.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**American Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class C** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>July 29, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.01) |
| Net Realized and Unrealized Loss | (0.70) |
| Total from Investment Operations | (0.71) |
| **Net Asset Value, End of Period** | $9.29 |
| **Total Return<sup>(3)</sup>** | (7.10)%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $46 |
| Ratio of Expenses Before Expense Limitation | 42.21%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation | 1.80%<sup>(4)(6)</sup> |
| Ratio of Net Investment Loss | (0.20)%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)(7)</sup> |
| Portfolio Turnover Rate | 6%<sup>(5)</sup> |

---

(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 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) Not annualized.

(6) Annualized.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**American Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class R6** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>July 29, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.04 |
| Net Realized and Unrealized Loss | (0.71) |
| Total from Investment Operations | (0.67) |
| **Net Asset Value, End of Period** | $9.33 |
| **Total Return<sup>(3)</sup>** | (6.70)%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $47 |
| Ratio of Expenses Before Expense Limitation | 41.22%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation | 0.65%<sup>(4)(6)</sup> |
| Ratio of Net Investment Income | 0.95%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)(7)</sup> |
| Portfolio Turnover Rate | 6%<sup>(5)</sup> |

---

(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) Not annualized.

(6) Annualized.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the American Resilience Portfolio. The Fund seeks long-term capital appreciation.

The Fund commenced operations on July 29, 2022 and offers four classes of shares — Class I, Class A, Class C and Class R6.

**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 Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE;

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Beverages | $18 | $— | $— | $18 |
| Capital Markets | 54 |  |  | 54 |
| Electronic Equipment, <br>Instruments & <br>Components | 25 |  |  | 25 |
| Health Care Equipment & <br>Supplies | 131 |  |  | 131 |
| Household Products | 30 |  |  | 30 |
| Information Technology <br>Services | 177 |  |  | 177 |
| Interactive Media & <br>Services | 24 |  |  | 24 |
| Life Sciences Tools & <br>Services | 118 |  |  | 118 |
| Machinery | 46 |  |  | 46 |
| Personal Products | 29 |  |  | 29 |
| Pharmaceuticals | 17 |  |  | 17 |
| Professional Services | 19 |  |  | 19 |
| Semiconductors & <br>Semiconductor <br>Equipment | 28 |  |  | 28 |
| Software | 152 |  |  | 152 |
| Textiles, Apparel & <br>Luxury Goods | 25 |  |  | 25 |
| Tobacco | 42 |  |  | 42 |
| **Total Common Stocks** | **935** | **—** | **—** | **935** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 9 |  |  | 9 |
| **Total Assets** | $**944** | $**—** | $**—** | $**944** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 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 U.S. 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. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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.

**7. Offering Cost:** Offering costs are accounted for as a deferred charge until operations begin and thereafter are amortized to expense over twelve months on a straight-line basis.

**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 the annual rate based on the daily net assets as follows:

---

| | | |
|:---|:---|:---|
| **First $500<br>million** | **Next $500<br>million** | **Over $1<br>billion** |
| 0.55% | 0.50% | 0.45% |

---

For the period ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 0.70% for Class I shares, 1.05% for Class A shares, 1.80% for Class C shares and 0.65% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the period ended December 31, 2022, approximately $2,000 of advisory fees were waived and approximately $145,000 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 Directors. The Adviser pays the Sub-Adviser on a

monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company 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 December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $1,058,000 and $52,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the period ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by less 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 period ended December 31, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>July 29, <br>2022<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $— | $1056 | $1047 | $— | @ |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $9 |

---

@ 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the period ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 year ended December 31, 2022 remains subject to examination by taxing authorities.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 was no distributions paid during fiscal year 2022.

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 a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $3 | $(3) |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| |
|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** |
| $6 |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $8,000 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. Other:**At December 31, 2022, the Fund did not have record owners of 10% or greater.

**J. Market Risk:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may

occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>American Resilience Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of American Resilience Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statements of operations and changes in net assets and the financial highlights for the period from July 29, 2022 (commencement of operations) through December 31, 2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations, the changes in its net assets and its financial highlights for the period from July 29, 2022, (commencement of operations) through December 31, 2022, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

![](j2327924_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program\* (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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 Fund's liquidity risk is assessed by the LRS 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.

\* The Fund commenced operations subsequent to the period covered by the report, which applied to other portfolios of the Company during that period. However, during the fiscal year ended December 31, 2022, the Program applied to the Fund.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

---

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Limited<br>25 Cabot Square, Canary Wharf<br>London, E14 4QA, England

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

------

Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327924_za006.jpg)

IFIARESILANN<br>5442587 EXP 02.29.24

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![](j2327925_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Asia Opportunity Portfolio

Annual Report

December 31, 2022

![](j2327925_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

---

| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 8 |
| Consolidated Statement of Operations | 10 |
| Consolidated Statements of Changes in Net Assets | 11 |
| Consolidated Financial Highlights | 12 |
| Notes to Consolidated Financial Statements | 16 |
| Report of Independent Registered Public Accounting Firm | 26 |
| Liquidity Risk Management Program | 27 |
| U.S. Customer Privacy Notice | 28 |
| Director and Officer Information | 31 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j2327925_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Asia Opportunity Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 December 31, 2022 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) and redemption fees. 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Asia Opportunity Portfolio Class I | $1000.00 | $1003.10 | $1019.66 | $5.55 | $5.60 | 1.10% |
| Asia Opportunity Portfolio Class A | 1000.00 | 1002.10 | 1018.55 | 6.66 | 6.72 | 1.32 |
| Asia Opportunity Portfolio Class C | 1000.00 | 998.40 | 1014.77 | 10.43 | 10.51 | 2.07 |
| Asia Opportunity Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1003.10 | 1019.91 | 5.30 | 5.35 | 1.05 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Asia Opportunity Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –22.01%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country Asia ex Japan Net Index (the "Index"), which returned –19.67%.

**Factors Affecting Performance**

• Asian equities declined during the 12-month period ended December 31, 2022. The decline was driven by heightened macroeconomic, geopolitical and regulatory uncertainty. Asian equities rebounded sharply from the end of October 2022 through the end of the reporting period, encouraged by indications of a gradual relaxation of zero-COVID policies and the announcement of stimulus measures in China.

• Our team remained focused on assessing company prospects over a longer-term period of five to ten years, and owning a portfolio of high quality companies with diverse business drivers not tied to a particular market environment.

• The team manages concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. Our longer-term focus results in lower turnover than many of our peers. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process. For the 12-month period, the Fund underperformed the Index due to unfavorable stock selection despite favorable sector allocation.

• The main detractors from relative performance were stock selection in the communication services, industrials and consumer staples sectors.

• The top contributors to the Fund's relative performance were a sector underweight allocation to information technology, along with stock selection in the consumer discretionary and financials sectors.

**Management Strategies**

• There were no changes to our bottom-up investment process during the period. The Fund seeks long-term capital appreciation by investing in high quality established and emerging companies located in Asia (excluding Japan) that the investment team believes are undervalued at the time of purchase. To achieve its objective, the investment team typically favors companies it believes have sustainable competitive advantages that can be monetized through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG).

• At the close of the period, consumer discretionary represented the largest sector weight in the portfolio, followed by financials and consumer staples. Our bottom-up investment process resulted in sector overweight positions in consumer discretionary, consumer staples, financials, communication services and real estate, and underweight positions in materials, utilities, energy, industrials, health care and information technology. The Fund had no holdings in energy, utilities and health care at the end of the reporting period.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Asia Opportunity Portfolio**

![](j2327925_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on December 29, 2015.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI All Country Asia ex Japan Net Index** **<sup>(1)</sup>** **and the Lipper Pacific Region ex Japan Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –22.01% | 3.40% |  | 10.93% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –22.21 | 3.10 |  | 10.58 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –26.29 | 1.99 |  | 9.74 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –22.79 | 2.33 |  | 9.76 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> | –23.57 | 2.33 |  | 9.76 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –21.96 | 3.46 |  | 10.98 |
| MSCI All Country Asia <br>ex Japan Net Index | –19.67 | –0.64 |  | 5.39 |
| Lipper Pacific Region <br>ex Japan Funds Index | –21.48 | –0.15 |  | 4.82 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country Asia ex Japan Net Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of Asia, excluding Japan. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Pacific Region ex Japan Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Pacific Region ex Japan Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Pacific Region ex Japan Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on December 29, 2015. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Asia Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.8%)** | **Common Stocks (98.8%)** | **Common Stocks (98.8%)** |
| China (52.8%) | China (52.8%) | China (52.8%) |
| 360 DigiTech, Inc. | 275961 | $5618 |
| Agora, Inc. ADR (a) | 63828 | 250 |
| China East Education Holdings Ltd. (b) | 1590000 | 1261 |
| China Resources Beer Holdings Co., Ltd. (b) | 702300 | 4885 |
| China Resources Mixc Lifestyle Services Ltd. (b) | 429400 | 2175 |
| Foshan Haitian Flavouring & Food Co., Ltd., <br>Class A | 662508 | 7569 |
| Greentown Service Group Co. Ltd. (b) | 1954000 | 1288 |
| Haidilao International Holding Ltd. (a)(b) | 3939000 | 11234 |
| HUYA, Inc. ADR (a) | 567161 | 2240 |
| Inner Mongolia Yili Industrial Group Co., Ltd., <br>Class A | 651086 | 2895 |
| KE Holdings, Inc. ADR (a) | 582325 | 8129 |
| Kuaishou Technology (a)(b) | 922900 | 8296 |
| Kweichow Moutai Co., Ltd., Class A | 32294 | 7989 |
| Meituan, Class B (a)(b) | 607800 | 13466 |
| Shenzhou International Group Holdings Ltd. (b) | 425100 | 4741 |
| Tencent Holdings Ltd. (b) | 166200 | 7047 |
| Trip.com Group Ltd. ADR (a) | 335212 | 11531 |
| Tsingtao Brewery Co., Ltd. H Shares (b) | 432000 | 4254 |
| Weimob, Inc. (a)(b)(c) | 3817000 | 3222 |
| Yihai International Holding Ltd. (a)(b) | 398000 | 1400 |
|  |  | 109490 |
| Hong Kong (3.8%) | Hong Kong (3.8%) | Hong Kong (3.8%) |
| AIA Group Ltd. | 667700 | 7373 |
| Super Hi International Holding Ltd. (a)(c) | 426299 | 543 |
|  |  | 7916 |
| India (21.5%) | India (21.5%) | India (21.5%) |
| HDFC Bank Ltd. | 864027 | 16947 |
| ICICI Bank Ltd. ADR | 590765 | 12932 |
| IndusInd Bank Ltd. | 637832 | 9376 |
| Shree Cement Ltd. | 14928 | 4193 |
| Zomato Ltd. (a) | 1661071 | 1191 |
|  |  | 44639 |
| Indonesia (0.8%) | Indonesia (0.8%) | Indonesia (0.8%) |
| Avia Avian Tbk PT | 43458600 | 1759 |
| Korea, Republic of (10.2%) | Korea, Republic of (10.2%) | Korea, Republic of (10.2%) |
| Coupang, Inc. (a) | 714691 | 10513 |
| KakaoBank Corp. (a)(c) | 249705 | 4858 |
| NAVER Corp. | 40860 | 5811 |
|  |  | 21182 |
| Singapore (4.0%) | Singapore (4.0%) | Singapore (4.0%) |
| Grab Holdings Ltd., Class A (a) | 1817534 | 5853 |
| Sea Ltd. ADR (a) | 45822 | 2384 |
|  |  | 8237 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Taiwan (5.7%) | Taiwan (5.7%) | Taiwan (5.7%) |
| Nien Made Enterprise Co., Ltd. | 358000 | $3421 |
| Silergy Corp. | 162000 | 2288 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 425000 | 6173 |
|  |  | 11882 |
| **Total Common Stocks (Cost $203,523)** | **Total Common Stocks (Cost $203,523)** | 205105 |
| **Short-Term Investments (1.7%)** | **Short-Term Investments (1.7%)** | **Short-Term Investments (1.7%)** |
| Securities held as Collateral on Loaned Securities (0.9%) | Securities held as Collateral on Loaned Securities (0.9%) | Securities held as Collateral on Loaned Securities (0.9%) |
| Investment Company (0.8%) | Investment Company (0.8%) | Investment Company (0.8%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 1540927 | 1541 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.1%) | Repurchase Agreements (0.1%) | Repurchase Agreements (0.1%) |
| HSBC Securities USA, Inc., (4.27%, dated <br>12/30/22, due 1/3/23; proceeds $143; <br>fully collateralized by a U.S. Government <br>obligation; 4.38% due 5/15/41; <br>valued at $146) | $143 | 143 |
| Merrill Lynch & Co., Inc., (4.25%, dated <br>12/30/22, due 1/3/23; proceeds $143; <br>fully collateralized by a U.S. Government <br>obligation; 1.50% due 2/15/25; <br>valued at $146) | 143 | 143 |
|  |  | 286 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $1,827)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $1,827)** | 1827 |
|  | **Shares** |  |
| Investment Company (0.8%) | Investment Company (0.8%) | Investment Company (0.8%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $1,578)** | 1578130 | 1578 |
| **Total Short-Term Investments (Cost $3,405)** | **Total Short-Term Investments (Cost $3,405)** | 3405 |
| **Total Investments (100.5%) (Cost $206,928) <br>Including $5,072 of Securities Loaned (d)(e)** | **Total Investments (100.5%) (Cost $206,928) <br>Including $5,072 of Securities Loaned (d)(e)** | 208510 |
| Liabilities in Excess of Other Assets (–0.5%) | Liabilities in Excess of Other Assets (–0.5%) | (1020) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $207490 |

---

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

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) All or a portion of this security was on loan at December 31, 2022.

The accompanying notes are an integral part of the consolidated financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Asia Opportunity Portfolio**

(d) The approximate fair value and percentage of net assets, $145,112,000 and 69.9%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(e) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $223,446,000. The aggregate gross unrealized appreciation is approximately $33,925,000 and the aggregate gross unrealized depreciation is approximately $48,986,000, resulting in net unrealized depreciation of approximately $15,061,000.

ADR American Depositary Receipt.

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification**  | **Percentage of<br>Total Investments** |
| Others\*\* | 26.2% |
| Banks | 21.4 |
| Internet & Direct Marketing Retail | 12.2 |
| Hotels, Restaurants & Leisure | 11.0 |
| Interactive Media & Services | 10.2 |
| Beverages | 8.3 |
| Food Products | 5.7 |
| Real Estate Management & Development | 5.0 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

The accompanying notes are an integral part of the consolidated financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Asia Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $203,809) | $205391 |
| Investment in Security of Affiliated Issuer, at Value (Cost $3,119) | 3119 |
| Total Investments in Securities, at Value (Cost $206,928) | 208510 |
| Foreign Currency, at Value (Cost $95) | 95 |
| Receivable for Investments Sold | 1862 |
| Receivable for Fund Shares Sold | 407 |
| Dividends Receivable | 84 |
| Receivable from Securities Lending Income | 38 |
| Receivable from Affiliate | 6 |
| Other Assets | 56 |
| **Total Assets** | 211058 |
| **Liabilities:** | **Liabilities:** |
| Collateral on Securities Loaned, at Value | 1827 |
| Payable for Fund Shares Redeemed | 1002 |
| Payable for Advisory Fees | 396 |
| Deferred Capital Gain Country Tax | 127 |
| Payable for Professional Fees | 63 |
| Payable for Sub Transfer Agency Fees — Class I | 43 |
| Payable for Sub Transfer Agency Fees — Class A | 1 |
| Payable for Sub Transfer Agency Fees — Class C | 2 |
| Payable for Custodian Fees | 45 |
| Payable for Shareholder Services Fees — Class A | 7 |
| Payable for Distribution and Shareholder Services Fees — Class C | 12 |
| Payable for Administration Fees | 15 |
| Payable for Transfer Agency Fees — Class I | 1 |
| Payable for Transfer Agency Fees — Class A | 1 |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Other Liabilities | 26 |
| **Total Liabilities** | 3568 |
| **Net Assets** | $207490 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $320219 |
| Total Accumulated Loss | (112729 |
| **Net Assets** | $207490 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Asia Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $154092 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 7904797 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.49 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $29072 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1520622 |
| **Net Asset Value, Redemption Price Per Share** | $19.12 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $1.06 |
| **Maximum Offering Price Per Share** | $20.18 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $13816 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 755265 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $18.29 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $10510 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 537721 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.55 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $5072 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Asia Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $253 of Foreign Taxes Withheld) | $2648 |
| Income from Securities Loaned — Net | 569 |
| Dividends from Security of Affiliated Issuer (Note G) | 35 |
| Total Investment Income | 3252 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 2347 |
| Shareholder Services Fees — Class A (Note D) | 110 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 142 |
| Professional Fees | 236 |
| Administration Fees (Note C) | 235 |
| Sub Transfer Agency Fees — Class I | 173 |
| Sub Transfer Agency Fees — Class A | 31 |
| Sub Transfer Agency Fees — Class C | 9 |
| Custodian Fees (Note F) | 199 |
| Registration Fees | 100 |
| Shareholder Reporting Fees | 44 |
| Transfer Agency Fees — Class I (Note E) | 7 |
| Transfer Agency Fees — Class A (Note E) | 4 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Directors' Fees and Expenses | 9 |
| Pricing Fees | 3 |
| Other Expenses | 25 |
| Total Expenses | 3676 |
| Waiver of Advisory Fees (Note B) | (119 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (67 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (6 |
| Net Expenses | 3482 |
| **Net Investment Loss** | (230 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold (Net of $191 of Capital Gain Country Tax) | (30672 |
| Foreign Currency Translation | (272 |
| Net Realized Loss | (30944 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Decrease in Deferred Capital Gain Country Tax of $41) | (69156 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (69156 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (100100 |
| Net Decrease in Net Assets Resulting from Operations | $(100330 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Asia Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(230) | $(3174) |
| Net Realized Loss | (30944) | (84263) |
| Net Change in Unrealized Appreciation (Depreciation) | (69156) | (85471) |
| Net Decrease in Net Assets Resulting from Operations | (100330) | (172908) |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** |  | (3033) |
| **Class A** |  | (709) |
| **Class C** |  | (186) |
| **Class R6\*** |  | (210) |
| Total Dividends and Distributions to Shareholders |  | (4138) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 87996 | 367015 |
| Distributions Reinvested |  | 3020 |
| Redeemed | (176956) | (283269) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 6972 | 65503 |
| Distributions Reinvested |  | 696 |
| Redeemed | (39635) | (60585) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 3936 | 16831 |
| Distributions Reinvested |  | 186 |
| Redeemed | (4929) | (9677) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 63 | 31113 |
| Distributions Reinvested |  | 210 |
| Redeemed | (11) | (34706) |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (122564) | 96337 |
| Redemption Fees | 7 | 20 |
| Total Decrease in Net Assets | (222887) | (80689) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 430377 | 511066 |
| End of Period | $207490 | $430377 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 4219 | 11559 |
| Shares Issued on Distributions Reinvested |  | 122 |
| Shares Redeemed | (9141) | (10415) |
| Net Increase (Decrease) in Class I Shares Outstanding | (4922) | 1266 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 332 | 2014 |
| Shares Issued on Distributions Reinvested |  | 29 |
| Shares Redeemed | (1965) | (2040) |
| Net Increase (Decrease) in Class A Shares Outstanding | (1633) | 3 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 220 | 527 |
| Shares Issued on Distributions Reinvested |  | 8 |
| Shares Redeemed | (265) | (362) |
| Net Increase (Decrease) in Class C Shares Outstanding | (45) | 173 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 4 | 958 |
| Shares Issued on Distributions Reinvested |  | 8 |
| Shares Redeemed | (1) | (1272) |
| Net Increase (Decrease) in Class R6 Shares Outstanding | 3 | (306) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Asia Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $24.99 | $31.72 | $21.02 | $14.53 | $16.92 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | 0.00<br><sup>(3)</sup> | (0.12) | (0.12) | 0.02 | 0.01 |
| Net Realized and Unrealized Gain (Loss) | (5.50) | (6.39) | 11.16 | 6.47 | (2.30) |
| Total from Investment Operations | (5.50) | (6.51) | 11.04 | 6.49 | (2.29) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  | (0.01) |  |
| Net Realized Gain |  | (0.22) | (0.34) |  | (0.10) |
| Total Distributions |  | (0.22) | (0.34) | (0.01) | (0.10) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.01 | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $19.49 | $24.99 | $31.72 | $21.02 | $14.53 |
| **Total Return<sup>(4)</sup>** | (22.01)% | (20.52)% | 52.53% | 44.74% | (13.65)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $154092 | $320534 | $366758 | $83805 | $25479 |
| Ratio of Expenses Before Expense Limitation | 1.17% | 1.05% | N/A | 1.28% | 1.67% |
| Ratio of Expenses After Expense Limitation | 1.10%<sup>(5)</sup> | 1.05%<sup>(5)</sup> | 1.06%<sup>(5)</sup> | 1.08%<sup>(5)</sup> | 1.09%<sup>(5)</sup> |
| Ratio of Net Investment Income (Loss) | 0.01%<sup>(5)</sup> | (0.41)%<sup>(5)</sup> | (0.48)%<sup>(5)</sup> | 0.11%<sup>(5)</sup> | 0.04%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.02% | 0.01% |
| Portfolio Turnover Rate | 14% | 65% | 44% | 27% | 63% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Asia Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $24.58 | $31.29 | $20.79 | $14.42 | $16.84 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.06) | (0.20) | (0.19) | (0.06) | (0.04) |
| Net Realized and Unrealized Gain (Loss) | (5.40) | (6.29) | 11.03 | 6.42 | (2.28) |
| Total from Investment Operations | (5.46) | (6.49) | 10.84 | 6.36 | (2.32) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain |  | (0.22) | (0.34) |  | (0.10) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.01 | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $19.12 | $24.58 | $31.29 | $20.79 | $14.42 |
| **Total Return<sup>(4)</sup>** | (22.21)% | (20.74)% | 52.15% | 44.17% | (13.89)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $29072 | $77496 | $98559 | $45111 | $6930 |
| Ratio of Expenses Before Expense Limitation | 1.42% | 1.32% | N/A | 1.56% | 2.05% |
| Ratio of Expenses After Expense Limitation | 1.38%<sup>(5)</sup> | 1.32%<sup>(5)</sup> | 1.34%<sup>(5)</sup> | 1.37%<sup>(5)</sup> | 1.44%<sup>(5)</sup> |
| Ratio of Net Investment Loss | (0.29)%<sup>(5)</sup> | (0.69)%<sup>(5)</sup> | (0.76)%<sup>(5)</sup> | (0.33)%<sup>(5)</sup> | (0.22)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.02% | 0.01% |
| Portfolio Turnover Rate | 14% | 65% | 44% | 27% | 63% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Asia Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $23.69 | $30.39 | $20.35 | $14.21 | $16.73 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.19) | (0.41) | (0.36) | (0.17) | (0.15) |
| Net Realized and Unrealized Gain (Loss) | (5.21) | (6.07) | 10.74 | 6.30 | (2.27) |
| Total from Investment Operations | (5.40) | (6.48) | 10.38 | 6.13 | (2.42) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain |  | (0.22) | (0.34) |  | (0.10) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.01 | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $18.29 | $23.69 | $30.39 | $20.35 | $14.21 |
| **Total Return<sup>(4)</sup>** | (22.79)% | (21.32)% | 51.02% | 43.21% | (14.58)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $13816 | $18947 | $19042 | $8445 | $2582 |
| Ratio of Expenses Before Expense Limitation | 2.15% | 2.05% | N/A | 2.33% | 2.80% |
| Ratio of Expenses After Expense Limitation | 2.11%<sup>(5)</sup> | 2.05%<sup>(5)</sup> | 2.08%<sup>(5)</sup> | 2.14%<sup>(5)</sup> | 2.19%<sup>(5)</sup> |
| Ratio of Net Investment Loss | (1.00)%<sup>(5)</sup> | (1.41)%<sup>(5)</sup> | (1.49)%<sup>(5)</sup> | (0.95)%<sup>(5)</sup> | (0.92)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.02% | 0.01% |
| Portfolio Turnover Rate | 14% | 65% | 44% | 27% | 63% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Asia Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $25.04 | $31.76 | $21.04 | $14.54 | $16.92 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(3)</sup> | 0.01 | (0.09) | (0.09) | 0.03 | 0.01 |
| Net Realized and Unrealized Gain (Loss) | (5.50) | (6.41) | 11.15 | 6.48 | (2.29) |
| Total from Investment Operations | (5.49) | (6.50) | 11.06 | 6.51 | (2.28) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  | (0.02) |  |
| Net Realized Gain |  | (0.22) | (0.34) |  | (0.10) |
| Total Distributions |  | (0.22) | (0.34) | (0.02) | (0.10) |
| **Redemption Fees** | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.01 | 0.00<br><sup>(4)</sup> |
| **Net Asset Value, End of Period** | $19.55 | $25.04 | $31.76 | $21.04 | $14.54 |
| **Total Return<sup>(5)</sup>** | (21.96)% | (20.46)% | 52.58% | 44.82% | (13.59)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $10510 | $13400 | $26707 | $21 | $15 |
| Ratio of Expenses Before Expense Limitation | 1.12% | 0.98% | 1.03% | 11.85% | 13.31% |
| Ratio of Expenses After Expense Limitation | 1.05%<sup>(6)</sup> | 0.98%<sup>(6)</sup> | 1.01%<sup>(6)</sup> | 1.03%<sup>(6)</sup> | 1.04%<sup>(6)</sup> |
| Ratio of Net Investment Income (Loss) | 0.06%<sup>(6)</sup> | (0.31)%<sup>(6)</sup> | (0.32)%<sup>(6)</sup> | 0.19%<sup>(6)</sup> | 0.05%<sup>(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.02% | 0.01% |
| Portfolio Turnover Rate | 14% | 65% | 44% | 27% | 63% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Asia Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Asia Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented 0% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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/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) fixed income securities may be valued by an outside pricing service/vendor approved by

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors,

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

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Banks | $12932 | $31181 | $— | $44113 |
| Beverages |  | 17128 |  | 17128 |
| Chemicals |  | 1759 |  | 1759 |
| Commercial Services & <br>Supplies |  | 1288 |  | 1288 |
| Construction Materials |  | 4193 |  | 4193 |
| Consumer Finance | 5618 |  |  | 5618 |
| Diversified Consumer <br>Services | 543 | 1261 |  | 1804 |
| Entertainment | 4624 |  |  | 4624 |
| Food Products |  | 11864 |  | 11864 |
| Hotels, Restaurants & <br>Leisure | 11531 | 11234 |  | 22765 |
| Household Durables |  | 3421 |  | 3421 |
| Insurance |  | 7373 |  | 7373 |
| Interactive Media & <br>Services |  | 21154 |  | 21154 |
| Internet & Direct <br>Marketing Retail | 10513 | 14657 |  | 25170 |
| Real Estate <br>Management & <br>Development | 8129 | 2175 |  | 10304 |
| Road & Rail | 5853 |  |  | 5853 |
| Semiconductors & <br>Semiconductor <br>Equipment |  | 8461 |  | 8461 |
| Software | 250 | 3222 |  | 3472 |
| Textiles, Apparel & <br>Luxury Goods |  | 4741 |  | 4741 |
| **Total Common Stocks** | **59993** | **145112** | **—** | **205105** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 3119 |  |  | 3119 |
| Repurchase Agreements |  | 286 |  | 286 |
| **Total Short-Term <br>Investments** | **3119** | **286** | **—** | **3405** |
| **Total Assets** | $**63112** | $**145398** | $**—** | $**208510** |

---

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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 U.S. 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.

**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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. Derivatives are fi-

nancial 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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.

As of December 31, 2022, the Fund did not have any outstanding purchased options.

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

contract for the year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value <br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(2494)(a) |

---

(a) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $1991<br> (b) |

---

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 221,260,000 |

---

**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 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in the <br>Consolidated<br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| $5072<br> (c) | $— | $(4815)(d) | $257 |

---

(c) Represents market value of loaned securities at year end.

(d) The Fund received cash collateral of approximately $1,827,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $2,988,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 &<br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stocks | $1827 | $— | $— | $— | $1827 |
| **Total Borrowings** | $**1827** | $**—** | $**—** | $**—** | $**1827** |
| **Gross amount of <br>recognized liabilities <br>for securities lending <br>transactions** |  |  |  |  | $**1827** |

---

**7. Redemption Fees:** The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption

fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

**8. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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.

**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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | | |
|:---|:---|:---|
| **First $750<br>million** | **Next $750<br>million** | **Over $1.5<br>billion** |
| 0.80% | 0.75% | 0.70% |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.76% 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 1.10% for Class I shares, 1.45% for Class A shares, 2.20% for Class C shares and 1.05% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $119,000 of advisory fees were waived and approximately $69,000 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 Directors. 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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $41,697,000 and $154,203,000,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $6,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $13737 | $98905 | $109523 | $35 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in <br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $3119 |

---

During the year ended December 31, 2022, 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $— | $— | $4138 |

---

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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022** 

Notes to Consolidated 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 a net operating loss and tax adjustments related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated <br>Loss <br>(000)** | **Paid-in-<br>Capital <br>(000)** |
| $7924 | $(7924) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $77,852,000 and $19,683,000, 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.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified <br>Late Year<br>Ordinary<br>Losses<br>(000)** | **Post-October<br>Capital<br>Losses<br>(000)** |
| $91 | $— |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During

the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 70.6%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrency indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Asia Opportunity Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Asia Opportunity Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j2327925_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Company<br>23 Church Street<br>16-01 Capital Square, Singapore 049481

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327925_za006.jpg)

IFIASOPPANN<br>5439160 EXP 02.29.24

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![](j2327926_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Counterpoint <br>Global Portfolio

Annual Report

December 31, 2022

![](j2327926_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 10 |
| Consolidated Statement of Operations | 11 |
| Consolidated Statements of Changes in Net Assets | 12 |
| Consolidated Financial Highlights | 13 |
| Notes to Consolidated Financial Statements | 17 |
| Report of Independent Registered Public Accounting Firm | 29 |
| Liquidity Risk Management Program | 30 |
| U.S. Customer Privacy Notice | 31 |
| Director and Officer Information | 34 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j2327926_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Counterpoint Global Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Counterpoint Global Portfolio Class I | $1000.00 | $938.40 | $1019.91 | $5.13 | $5.35 | 1.05% |
| Counterpoint Global Portfolio Class A | 1000.00 | 937.50 | 1018.15 | 6.84 | 7.12 | 1.40 |
| Counterpoint Global Portfolio Class C | 1000.00 | 932.80 | 1014.37 | 10.47 | 10.92 | 2.15 |
| Counterpoint Global Portfolio Class R6<sup>(1)</sup> | 1000.00 | 939.70 | 1020.16 | 4.89 | 5.09 | 1.00 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Counterpoint Global Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –51.34%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World Net Index (the "Index"), which returned –18.36%.

**Factors Affecting Performance**

• In 2022, global equities suffered their worst year since the 2008 Global Financial Crisis (as measured by the Index), as inflation hit multi-decade highs around the world, central banks raised interest rates aggressively to rein in price increases, the U.S. dollar surged, economic growth slowed further from the post-pandemic recovery and geopolitical tensions flared. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher, contributing to cost-of-living crises across developed and emerging market countries. The U.S. Federal Reserve, Bank of England, European Central Bank and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in global stock and bond markets. By year-end, inflation appeared to be peaking in many parts of the world, but a global recession appeared increasingly likely.

• Global equities declined in the 12-month period, as measured by the Index. All sectors had negative performance except energy, which posted a high double-digit return. The weakest performing sectors were communication services, consumer discretionary and information technology.

• Counterpoint Global seeks high quality companies, which we define primarily as those with sustainable competitive advantages. We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period due to unfavorable stock selection; sector allocation detracted to a lesser extent.

• Fear and uncertainty due to concerns about inflation, rising interest rates, geopolitical tensions and ongoing effects of the global pandemic continued to weigh on market sentiment, contributing to greater volatility and a continued aversion towards high growth equities. We believe this rotation away from high growth equities remains driven primarily by non-fundamental factors. Fundamentals across portfolio holdings have largely remained healthy and in line with our expectations. Despite market volatility, we continue to find many high-quality companies with attractive end-game potential due to compelling fundamentals, strong balance sheets and multiple competitive advantages. We believe today's market offers an attractive opportunity to buy unique companies with strong fundamentals that can be long-term winners over the next three to five years. While we have opportunistically added to some positions and initiated new ones, overall we have made few changes as we remain confident in the long-term prospects for the businesses we own.

• Information technology was by far the greatest detractor in the portfolio this period, due to mixed stock selection. An IT services company that offers a global cloud platform that provides security, performance, and reliability services to the applications of its customers was the biggest detractor in the sector and across the portfolio. The company reported overall healthy results that beat analysts' expectations, but some deceleration in its overall business growth, due to an elongated sales cycle, weighed on investor sentiment.

• The portfolio's stock selection in and sector allocations to all other sectors diminished relative performance as well; stock selection and sector weights in consumer discretionary, communication services and health care were also among the greatest detractors.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Counterpoint Global Portfolio**

• Across the whole portfolio, the top contributor to relative performance was an online retail and cloud computing leader. Its shares advanced on solid quarterly results, characterized by improving productivity, cost efficiencies, and better-than-expected fundamentals in its retail and advertising businesses.

**Management Strategies**

• As a team, we believe having a market outlook can be an anchor. Our focus is on assessing company prospects over a five-year horizon, and owning a portfolio of unique companies whose market value we believe can increase significantly for underlying fundamental reasons.

![](j2327926_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on June 29, 2018.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI All Country World Net Index** **<sup>(1)</sup>** **and the Lipper Global Multi-Cap Growth Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –51.34% |  |  | –0.96% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –51.45 |  |  | –1.27 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –54.01 |  |  | –2.44 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –51.87 |  |  | –2.06 |
| Fund — Class C Shares with <br>maximum 1.00% deferred sales <br>charges<sup>(4)</sup> | –52.35 |  |  | –2.06 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –51.27 |  |  | –0.90 |
| MSCI All Country World Net Index | –18.36 |  |  | 5.92 |
| Lipper Global Multi-Cap Growth <br>Funds Index | –28.63 |  |  | 5.17 |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Multi Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Multi-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Multi-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on June 29, 2018. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Counterpoint Global Portfolio**

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| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| **Common Stocks (93.9%)** | **Common Stocks (93.9%)** | **Common Stocks (93.9%)** | **Common Stocks (93.9%)** |
| Argentina (0.2%) | Argentina (0.2%) | Argentina (0.2%) | Argentina (0.2%) |
| Globant SA (a) | 92 | $15 |  |
| Belgium (0.0%) (b) | Belgium (0.0%) (b) | Belgium (0.0%) (b) | Belgium (0.0%) (b) |
| Argenx SE ADR (a) | 9 | 3 |  |
| Brazil (0.4%) | Brazil (0.4%) | Brazil (0.4%) | Brazil (0.4%) |
| B3 SA - Brasil Bolsa Balcao | 592 | 2 |  |
| NU Holdings Ltd., Class A (a) | 5427 | 22 |  |
| Vale SA | 259 | 4 |  |
|  |  | 28 |  |
| Canada (5.5%) | Canada (5.5%) | Canada (5.5%) | Canada (5.5%) |
| Brookfield Asset Management Ltd., Class A (a) | 104 | 3 |  |
| Brookfield Corp. | 419 | 13 |  |
| Brookfield Infrastructure Partners LP | 450 | 14 |  |
| Canada Goose Holdings, Inc. (a) | 749 | 13 |  |
| Canadian National Railway Co. | 205 | 24 |  |
| Colliers International Group, Inc. | 257 | 23 |  |
| Constellation Software, Inc. | 53 | 83 |  |
| FirstService Corp. | 30 | 4 |  |
| Shopify, Inc., Class A (a) | 5207 | 181 |  |
| Topicus.com, Inc. (a) | 761 | 40 |  |
|  |  | 398 |  |
| China (1.9%) | China (1.9%) | China (1.9%) | China (1.9%) |
| 360 DigiTech, Inc. ADR | 188 | 4 |  |
| Agora, Inc. ADR (a) | 27 |  | @ |
| China East Education Holdings Ltd. (c) | 1000 | 1 |  |
| China Resources Mixc Lifestyle Services Ltd. (c) | 400 | 2 |  |
| Foshan Haitian Flavouring & Food Co., Ltd., <br>Class A | 1389 | 16 |  |
| Greentown Service Group Co. Ltd. (c) | 2000 | 1 |  |
| Haidilao International Holding Ltd. (a)(c) | 3000 | 9 |  |
| HUYA, Inc. ADR (a) | 409 | 2 |  |
| Inner Mongolia Yili Industrial Group Co., Ltd., <br>Class A | 300 | 1 |  |
| KE Holdings, Inc. ADR (a) | 420 | 6 |  |
| Kuaishou Technology (a)(c) | 900 | 8 |  |
| Meituan, Class B (a)(c) | 1900 | 42 |  |
| Shenzhou International Group Holdings Ltd. (c) | 300 | 3 |  |
| Tencent Holdings Ltd. (c) | 200 | 8 |  |
| Trip.com Group Ltd. ADR (a) | 892 | 31 |  |
| Weimob, Inc. (a)(c) | 2000 | 2 |  |
|  |  | 136 |  |
| Denmark (1.8%) | Denmark (1.8%) | Denmark (1.8%) | Denmark (1.8%) |
| Chr Hansen Holding AS | 196 | 14 |  |
| DSV AS | 706 | 112 |  |
| Novo Nordisk AS Series B | 38 | 5 |  |
|  |  | 131 |  |
| France (2.1%) | France (2.1%) | France (2.1%) | France (2.1%) |
| Christian Dior SE | 25 | 18 |  |
| EssilorLuxottica SA | 66 | 12 |  |
| Eurofins Scientific SE | 240 | 17 |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** | **Value<br>(000)** |
| Hermes International | 50 | $| 77 |  |
| L'Oreal SA | 31 |  | 11 |  |
| Pernod Ricard SA | 63 |  | 13 |  |
| Remy Cointreau SA | 21 |  | 4 |  |
|  |  |  | 152 |  |
| Germany (0.8%) | Germany (0.8%) | Germany (0.8%) | Germany (0.8%) | Germany (0.8%) |
| Adidas AG | 248 |  | 34 |  |
| HelloFresh SE (a) | 424 |  | 9 |  |
| Puma SE | 213 |  | 13 |  |
|  |  |  | 56 |  |
| Hong Kong (0.2%) | Hong Kong (0.2%) | Hong Kong (0.2%) | Hong Kong (0.2%) | Hong Kong (0.2%) |
| AIA Group Ltd. | 1400 |  | 16 |  |
| Super Hi International Holding Ltd. (a) | 300 |  |  | @ |
|  |  |  | 16 |  |
| India (3.1%) | India (3.1%) | India (3.1%) | India (3.1%) | India (3.1%) |
| HDFC Bank Ltd. ADR | 2394 |  | 164 |  |
| ICICI Bank Ltd. ADR | 2069 |  | 45 |  |
| IndusInd Bank Ltd. | 529 |  | 8 |  |
| Shree Cement Ltd. | 12 |  | 3 |  |
| Zomato Ltd. (a) | 1337 |  | 1 |  |
|  |  |  | 221 |  |
| Indonesia (0.0%) (b) | Indonesia (0.0%) (b) | Indonesia (0.0%) (b) | Indonesia (0.0%) (b) | Indonesia (0.0%) (b) |
| Avia Avian Tbk PT | 44000 |  | 2 |  |
| Israel (1.9%) | Israel (1.9%) | Israel (1.9%) | Israel (1.9%) | Israel (1.9%) |
| Global-e Online Ltd. (a) | 6732 |  | 139 |  |
| Italy (1.6%) | Italy (1.6%) | Italy (1.6%) | Italy (1.6%) | Italy (1.6%) |
| Brunello Cucinelli SpA | 149 |  | 11 |  |
| Davide Campari-Milano NV | 1690 |  | 17 |  |
| Ferrari NV | 54 |  | 12 |  |
| Moncler SpA | 1484 |  | 79 |  |
|  |  |  | 119 |  |
| Japan (0.7%) | Japan (0.7%) | Japan (0.7%) | Japan (0.7%) | Japan (0.7%) |
| Change, Inc. | 100 |  | 2 |  |
| Keyence Corp. | 100 |  | 39 |  |
| Nintendo Co., Ltd. | 200 |  | 8 |  |
|  |  |  | 49 |  |
| Korea, Republic of (2.2%) | Korea, Republic of (2.2%) | Korea, Republic of (2.2%) | Korea, Republic of (2.2%) | Korea, Republic of (2.2%) |
| Coupang, Inc. (a) | 9339 |  | 138 |  |
| KakaoBank Corp. (a) | 477 |  | 9 |  |
| NAVER Corp. | 107 |  | 15 |  |
|  |  |  | 162 |  |
| Mexico (0.0%) (b) | Mexico (0.0%) (b) | Mexico (0.0%) (b) | Mexico (0.0%) (b) | Mexico (0.0%) (b) |
| Grupo Aeroportuario del Sureste SAB de CV, Class B | 60 |  | 1 |  |
| Netherlands (4.8%) | Netherlands (4.8%) | Netherlands (4.8%) | Netherlands (4.8%) | Netherlands (4.8%) |
| Adyen NV (a) | 104 |  | 144 |  |
| ASML Holding NV | 55 |  | 30 |  |
| ASML Holding NV (Registered) | 241 |  | 132 |  |
| Basic-Fit NV (a) | 1005 |  | 27 |  |
| Universal Music Group NV | 510 |  | 12 |  |
|  |  |  | 345 |  |

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The accompanying notes are an integral part of the consolidated financial statements.<br>6

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Counterpoint Global Portfolio**

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| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| Norway (0.1%) | Norway (0.1%) | Norway (0.1%) | Norway (0.1%) |
| AutoStore Holdings Ltd. (a) | 3543 | $7 |  |
| Kahoot! ASA (a) | 670 | 1 |  |
|  |  | 8 |  |
| Singapore (2.2%) | Singapore (2.2%) | Singapore (2.2%) | Singapore (2.2%) |
| Grab Holdings Ltd., Class A (a) | 34409 | 111 |  |
| Sea Ltd. ADR (a) | 926 | 48 |  |
|  |  | 159 |  |
| Sweden (0.5%) | Sweden (0.5%) | Sweden (0.5%) | Sweden (0.5%) |
| Evolution AB | 165 | 16 |  |
| Kinnevik AB, Class B (a) | 401 | 5 |  |
| Paradox Interactive AB | 577 | 12 |  |
| Vitrolife AB | 287 | 5 |  |
|  |  | 38 |  |
| Switzerland (0.7%) | Switzerland (0.7%) | Switzerland (0.7%) | Switzerland (0.7%) |
| Kuehne & Nagel International AG (Registered) | 63 | 15 |  |
| On Holding AG, Class A (a) | 1081 | 18 |  |
| Straumann Holding AG (Registered) | 131 | 15 |  |
|  |  | 48 |  |
| Taiwan (0.2%) | Taiwan (0.2%) | Taiwan (0.2%) | Taiwan (0.2%) |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 1000 | 14 |  |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 36 | 3 |  |
|  |  | 17 |  |
| United Kingdom (3.7%) | United Kingdom (3.7%) | United Kingdom (3.7%) | United Kingdom (3.7%) |
| Abcam PLC ADR (a) | 326 | 5 |  |
| Angle PLC (a) | 3076 | 2 |  |
| Babcock International Group PLC (a) | 16176 | 55 |  |
| Deliveroo PLC (a) | 3357 | 3 |  |
| Diageo PLC | 268 | 12 |  |
| Fevertree Drinks PLC | 199 | 3 |  |
| Rentokil Initial PLC | 5785 | 36 |  |
| Rightmove PLC | 2331 | 14 |  |
| Victoria PLC (a) | 24013 | 140 |  |
|  |  | 270 |  |
| United States (59.3%) | United States (59.3%) | United States (59.3%) | United States (59.3%) |
| 10X Genomics, Inc., Class A (a) | 1707 | 62 |  |
| 23andMe Holding Co., Class A (a) | 1334 | 3 |  |
| Adobe, Inc. (a) | 165 | 56 |  |
| Affirm Holdings, Inc. (a) | 4733 | 46 |  |
| Agilon health, Inc. (a) | 8312 | 134 |  |
| Airbnb, Inc., Class A (a) | 7 | 1 |  |
| Alignment Healthcare, Inc. (a) | 264 | 3 |  |
| Alnylam Pharmaceuticals, Inc. (a) | 1 |  | @ |
| Alphabet, Inc., Class A (a) | 188 | 17 |  |
| Alphabet, Inc., Class C (a) | 120 | 11 |  |
| Amazon.com, Inc. (a) | 940 | 79 |  |
| American Tower Corp. REIT | 2 |  | @ |
| Anterix, Inc. (a) | 845 | 27 |  |
| Appian Corp., Class A (a) | 1929 | 63 |  |
| ATAI Life Sciences NV (a) | 980 | 3 |  |

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| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| Aurora Innovation, Inc. (a) | 2284 | $3 |  |
| AutoZone, Inc. (a) | 1 | 2 |  |
| Axon Enterprise, Inc. (a) | 202 | 34 |  |
| Ball Corp. | 34 | 2 |  |
| BARK, Inc. (a) | 2182 | 3 |  |
| Beam Therapeutics, Inc. (a) | 86 | 3 |  |
| Berkshire Hathaway, Inc., Class B (a) | 14 | 4 |  |
| Bill.Com Holdings, Inc. (a) | 1345 | 147 |  |
| Block, Inc., Class A (a) | 675 | 42 |  |
| Brown & Brown, Inc. | 229 | 13 |  |
| Cadence Design Systems, Inc. (a) | 4 | 1 |  |
| Calix, Inc. (a) | 360 | 25 |  |
| Carvana Co. (a) | 7816 | 37 |  |
| Celsius Holdings, Inc. (a) | 28 | 3 |  |
| Chewy, Inc., Class A (a) | 733 | 27 |  |
| Cintas Corp. | 2 | 1 |  |
| Clear Secure, Inc., Class A | 566 | 16 |  |
| Clearwater Analytics Holdings, Inc., Class A (a) | 194 | 4 |  |
| Cloudflare, Inc., Class A (a) | 12738 | 576 |  |
| Coinbase Global, Inc., Class A (a) | 82 | 3 |  |
| Confluent, Inc., Class A (a) | 453 | 10 |  |
| Copart, Inc. (a) | 32 | 2 |  |
| Cricut, Inc., Class A | 14307 | 133 |  |
| Danaher Corp. | 37 | 10 |  |
| Datadog, Inc., Class A (a) | 1323 | 97 |  |
| Dexcom, Inc. (a) | 1 |  | @ |
| Domino's Pizza, Inc. | 2 | 1 |  |
| DoorDash, Inc., Class A (a) | 2049 | 100 |  |
| Doximity, Inc., Class A (a) | 3590 | 120 |  |
| DraftKings, Inc., Class A (a) | 830 | 9 |  |
| Duolingo, Inc. (a) | 195 | 14 |  |
| Ecolab, Inc. | 18 | 3 |  |
| Eli Lilly & Co. | 2 | 1 |  |
| Endeavor Group Holdings, Inc., Class A (a) | 533 | 12 |  |
| Estee Lauder Cos., Inc., Class A | 3 | 1 |  |
| EVI Industries, Inc. (a) | 231 | 6 |  |
| Fastly, Inc., Class A (a) | 4823 | 39 |  |
| Fate Therapeutics, Inc. (a) | 152 | 2 |  |
| Figs, Inc., Class A (a) | 887 | 6 |  |
| Floor & Decor Holdings, Inc., Class A (a) | 1369 | 95 |  |
| GH Research PLC (a) | 282 | 3 |  |
| Ginkgo Bioworks Holdings, Inc. (a) | 7923 | 13 |  |
| Gitlab, Inc., Class A (a) | 1327 | 60 |  |
| Guardant Health, Inc. (a) | 638 | 17 |  |
| HashiCorp, Inc., Class A (a) | 343 | 9 |  |
| HEICO Corp., Class A | 5 | 1 |  |
| Home Depot, Inc. | 2 | 1 |  |
| HubSpot, Inc. (a) | 77 | 22 |  |
| Illumina, Inc. (a) | 223 | 45 |  |
| Inspire Medical Systems, Inc. (a) | 20 | 5 |  |
| Intellia Therapeutics, Inc. (a) | 367 | 13 |  |
| Intercontinental Exchange, Inc. | 427 | 44 |  |

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The accompanying notes are an integral part of the consolidated financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Counterpoint Global Portfolio**

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| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| United States (cont'd) | United States (cont'd) | United States (cont'd) | United States (cont'd) |
| Intuitive Surgical, Inc. (a) | 53 | $14 |  |
| Joby Aviation, Inc. (a) | 734 | 2 |  |
| Linde PLC | 24 | 8 |  |
| Martin Marietta Materials, Inc. | 2 | 1 |  |
| Mastercard, Inc., Class A | 82 | 28 |  |
| MaxCyte, Inc. (a) | 823 | 4 |  |
| McCormick & Co., Inc. | 8 | 1 |  |
| McDonald's Corp. | 2 | 1 |  |
| Membership Collective Group, Inc., Class A (a) | 659 | 2 |  |
| MercadoLibre, Inc. (a) | 177 | 150 |  |
| Meta Platforms, Inc., Class A (a) | 377 | 45 |  |
| MicroStrategy, Inc., Class A (a) | 43 | 6 |  |
| Moderna, Inc. (a) | 9 | 2 |  |
| MongoDB, Inc. (a) | 121 | 24 |  |
| MP Materials Corp. (a) | 127 | 3 |  |
| MSCI, Inc. | 18 | 8 |  |
| Netflix, Inc. (a) | 3 | 1 |  |
| NVIDIA Corp. | 2 |  | @ |
| NVR, Inc. (a) | 1 | 5 |  |
| Oak Street Health, Inc. (a) | 143 | 3 |  |
| Okta, Inc. (a) | 8 | 1 |  |
| Olo, Inc., Class A (a) | 2556 | 16 |  |
| Opendoor Technologies, Inc. (a) | 470 | 1 |  |
| Outset Medical, Inc. (a) | 205 | 5 |  |
| Peloton Interactive, Inc., Class A (a) | 4147 | 33 |  |
| Penumbra, Inc. (a) | 21 | 5 |  |
| Pinterest, Inc., Class A (a) | 32 | 1 |  |
| Pool Corp. | 34 | 10 |  |
| Privia Health Group, Inc. (a) | 499 | 11 |  |
| Procore Technologies, Inc. (a) | 580 | 27 |  |
| Progressive Corp. | 68 | 9 |  |
| ProKidney Corp. (a) | 3141 | 22 |  |
| Redfin Corp. (a) | 242 | 1 |  |
| Rivian Automotive, Inc., Class A (a) | 124 | 2 |  |
| ROBLOX Corp., Class A (a) | 3134 | 89 |  |
| Rollins, Inc. | 37 | 1 |  |
| Roper Technologies, Inc. | 2 | 1 |  |
| Royal Gold, Inc. | 94 | 11 |  |
| Royalty Pharma PLC, Class A | 6079 | 240 |  |
| S&P Global, Inc. | 25 | 8 |  |
| Salesforce, Inc. (a) | 637 | 84 |  |
| Samsara, Inc., Class A (a) | 3568 | 44 |  |
| Schrodinger, Inc. (a) | 169 | 3 |  |
| Senti Biosciences, Inc. Founder Shares (a) | 298 |  | @ |
| Service Corp. International | 165 | 11 |  |
| ServiceNow, Inc. (a) | 257 | 100 |  |
| Sherwin-Williams Co. | 144 | 34 |  |
| Snowflake, Inc., Class A (a) | 2385 | 342 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** | **Value<br>(000)** |
| SomaLogic, Inc. (a) | 702 | $| 2 |  |
| Spotify Technology SA (a) | 325 |  | 26 |  |
| Standard BioTools, Inc. (a) | 1871 |  | 2 |  |
| Starbucks Corp. | 7 |  | 1 |  |
| Synopsys, Inc. (a) | 2 |  | 1 |  |
| Texas Pacific Land Corp. | 1 |  | 2 |  |
| Thermo Fisher Scientific, Inc. | 1 |  | 1 |  |
| TJX Cos., Inc. | 27 |  | 2 |  |
| Trade Desk, Inc., Class A (a) | 2790 |  | 125 |  |
| TransDigm Group, Inc. | 18 |  | 11 |  |
| Trupanion, Inc. (a) | 59 |  | 3 |  |
| Tyler Technologies, Inc. (a) | 43 |  | 14 |  |
| Uber Technologies, Inc. (a) | 6767 |  | 167 |  |
| Unity Software, Inc. (a) | 139 |  | 4 |  |
| Upstart Holdings, Inc. (a) | 531 |  | 7 |  |
| UTZ Brands, Inc. | 782 |  | 12 |  |
| Veeva Systems, Inc., Class A (a) | 14 |  | 2 |  |
| Visa, Inc., Class A | 164 |  | 34 |  |
| Walt Disney Co. (a) | 464 |  | 40 |  |
| Waste Connections, Inc. | 28 |  | 4 |  |
| Watsco, Inc. | 3 |  | 1 |  |
| Wayfair, Inc., Class A (a) | 572 |  | 19 |  |
| WeWork, Inc., Class A REIT (a) | 1788 |  | 3 |  |
| XPEL, Inc. (a) | 103 |  | 6 |  |
| Zoetis, Inc. | 5 |  | 1 |  |
| Zoom Video Communications, Inc., Class A (a) | 5 |  |  | @ |
| ZoomInfo Technologies, Inc., Class A (a) | 1640 |  | 49 |  |
|  |  |  | 4304 |  |
| **Total Common Stocks (Cost $7,571)** | **Total Common Stocks (Cost $7,571)** |  | 6817 |  |
| **Preferred Stock (0.4%)** | **Preferred Stock (0.4%)** | **Preferred Stock (0.4%)** | **Preferred Stock (0.4%)** | **Preferred Stock (0.4%)** |
| United States (0.4%) | United States (0.4%) | United States (0.4%) | United States (0.4%) | United States (0.4%) |
| Databricks, Inc. Series H (a)(d)(e) <br>(acquisition cost — $44; acquired 8/31/21) | 594 |  | 33 |  |
| **Investment Companies (0.6%)** | **Investment Companies (0.6%)** | **Investment Companies (0.6%)** | **Investment Companies (0.6%)** | **Investment Companies (0.6%)** |
| United Kingdom (0.1%) | United Kingdom (0.1%) | United Kingdom (0.1%) | United Kingdom (0.1%) | United Kingdom (0.1%) |
| Hipgnosis Songs Fund Ltd. | 5295 |  | 6 |  |
| United States (0.5%) | United States (0.5%) | United States (0.5%) | United States (0.5%) | United States (0.5%) |
| Grayscale Bitcoin Trust (a) | 4078 |  | 34 |  |
| **Total Investment Companies (Cost $181)** | **Total Investment Companies (Cost $181)** |  | 40 |  |
|  | **No. of<br>Warrants** |  |  |  |
| **Warrants (0.0%) (b)** | **Warrants (0.0%) (b)** | **Warrants (0.0%) (b)** | **Warrants (0.0%) (b)** | **Warrants (0.0%) (b)** |
| United States (0.0%) (b) | United States (0.0%) (b) | United States (0.0%) (b) | United States (0.0%) (b) | United States (0.0%) (b) |
| BARK, Inc. expires 5/1/26 (a) | 373 |  |  | @ |
| Ginkgo Bioworks Holdings, Inc. expires 12/31/27 (a) | 261 |  |  | @ |
| SomaLogic, Inc. expires 8/31/26 (a) | 96 |  |  | @ |
| **Total Warrants (Cost $3)** | **Total Warrants (Cost $3)** |  |  | @ |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Counterpoint Global Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Short-Term Investment (4.0%)** | **Short-Term Investment (4.0%)** | **Short-Term Investment (4.0%)** |
| Investment Company (4.0%) | Investment Company (4.0%) | Investment Company (4.0%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $287)** | 287031 | $287 |
| **Total Investments Excluding Purchased <br>Options (98.9%) (Cost $8,086)** | **Total Investments Excluding Purchased <br>Options (98.9%) (Cost $8,086)** | 7177 |
| **Total Purchased Options Outstanding (0.1%) <br>(Cost $12)** | **Total Purchased Options Outstanding (0.1%) <br>(Cost $12)** | 8 |
| **Total Investments (99.0%) (Cost $8,098) (f)(g)(h)** | **Total Investments (99.0%) (Cost $8,098) (f)(g)(h)** | 7185 |
| Other Assets in Excess of Liabilities (1.0%) | Other Assets in Excess of Liabilities (1.0%) | 72 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $7257 |

---

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

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(c) Security trades on the Hong Kong exchange.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at December 31, 2022 amounts to approximately $33,000 and represents 0.5% of net assets.

(e) At December 31, 2022, the Fund held a fair valued security valued at approximately $33,000, representing 0.5% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) The approximate fair value and percentage of net assets, $1,222,000 and 16.8%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(g) Securities are available for collateral in connection with purchased options.

(h) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $9,948,000. The aggregate gross unrealized appreciation is approximately $0 and the aggregate gross unrealized depreciation is approximately $2,763,000, resulting in net unrealized depreciation of approximately $2,763,000.

@ Value is less than $500.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

**Call Options Purchased:**

The Fund had the following call options purchased open at December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Depreciation<br>(000)** |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.57 | Aug-23 | 1500000 | 1500 | $5 | $6 | $(1) |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.53 | Jul-23 | 1262701 | 1263 | 3 | 6 | (3) |
|  |  |  |  |  |  | $8 | $12 | $(4) |

---

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Other\* | 56.6% |
| Information Technology Services | 20.5 |
| Software | 13.1 |
| Internet & Direct Marketing Retail | 9.8 |
| 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 consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Counterpoint Global Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $7,811) | $6898 |
| Investment in Security of Affiliated Issuer, at Value (Cost $287) | 287 |
| Total Investments in Securities, at Value (Cost $8,098) | 7185 |
| Foreign Currency, at Value (Cost $16) | 16 |
| Due from Adviser | 144 |
| Receivable for Fund Shares Sold | 15 |
| Due from Broker | 10 |
| Tax Reclaim Receivable | 2 |
| Receivable for Investments Sold | 1 |
| Receivable from Affiliate | 1 |
| Dividends Receivable |  |
| Other Assets | 34 |
| **Total Assets** | 7408 |
| **Liabilities:** | **Liabilities:** |
| Payable for Professional Fees | 85 |
| Payable for Custodian Fees | 14 |
| Payable to Bank | 10 |
| Payable for Investments Purchased | 2 |
| Payable for Transfer Agency Fees — Class I | 1 |
| Payable for Transfer Agency Fees — Class A |  |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Payable for Administration Fees | 1 |
| Payable for Sub Transfer Agency Fees — Class I |  |
| Payable for Sub Transfer Agency Fees — Class A |  |
| Payable for Sub Transfer Agency Fees — Class C |  |
| Payable for Shareholder Services Fees — Class A |  |
| Payable for Distribution and Shareholder Services Fees — Class C |  |
| Other Liabilities | 38 |
| **Total Liabilities** | 151 |
| **Net Assets** | $7257 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $14426 |
| Total Accumulated Loss | (7169 |
| **Net Assets** | $7257 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $6681 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 895167 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.46 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $502 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 68335 |
| **Net Asset Value, Redemption Price Per Share** | $7.35 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.41 |
| **Maximum Offering Price Per Share** | $7.76 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $65 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 9126 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.09 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $9 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1267 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.48 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Counterpoint Global Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $5 of Foreign Taxes Withheld) | $46 |
| Dividends from Security of Affiliated Issuer (Note G) | 3 |
| Total Investment Income | 49 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 219 |
| Advisory Fees (Note B) | 101 |
| Custodian Fees (Note F) | 99 |
| Registration Fees | 64 |
| Shareholder Reporting Fees | 25 |
| Pricing Fees | 25 |
| Transfer Agency Fees — Class I (Note E) | 4 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Administration Fees (Note C) | 10 |
| Sub Transfer Agency Fees — Class I | 5 |
| Sub Transfer Agency Fees — Class A | 2 |
| Sub Transfer Agency Fees — Class C |  |
| Directors' Fees and Expenses | 5 |
| Shareholder Services Fees — Class A (Note D) | 3 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 1 |
| Interest Expenses | 1 |
| Other Expenses | 19 |
| Total Expenses | 590 |
| Expenses Reimbursed by Adviser (Note B) | (340 |
| Waiver of Advisory Fees (Note B) | (101 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (3 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (3 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 139 |
| **Net Investment Loss** | (90 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (5584 |
| Foreign Currency Translation | (3 |
| Net Realized Loss | (5587 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (6479 |
| Foreign Currency Translation | (— |
| Derivative Contracts — PIPE |  |
| Net Change in Unrealized Appreciation (Depreciation) | (6479 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (12066 |
| Net Decrease in Net Assets Resulting from Operations | $(12156 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Counterpoint Global Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(90) | $(218 |
| Net Realized Gain (Loss) | (5587) | 3524 |
| Net Change in Unrealized Appreciation (Depreciation) | (6479) | (3702 |
| Net Decrease in Net Assets Resulting from Operations | (12156) | (396 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** |  | (4424 |
| **Class A** |  | (407 |
| **Class C** |  | (34 |
| **Class R6\*** |  | (4 |
| Total Dividends and Distributions to Shareholders |  | (4869 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 1364 | 6393 |
| Distributions Reinvested |  | 4424 |
| Redeemed | (9746) | (4112 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 1344 | 3945 |
| Distributions Reinvested |  | 407 |
| Redeemed | (3101) | (875 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed |  | 183 |
| Distributions Reinvested |  | 34 |
| Redeemed | (34) | (12 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Distributions Reinvested |  | 4 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (10173) | 10391 |
| Total Increase (Decrease) in Net Assets | (22329) | 5126 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 29586 | 24460 |
| End of Period | $7257 | $29586 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 129 | 345 |
| Shares Issued on Distributions Reinvested |  | 293 |
| Shares Redeemed | (917) | (203 |
| Net Increase (Decrease) in Class I Shares Outstanding | (788) | 435 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 136 | 220 |
| Shares Issued on Distributions Reinvested |  | 27 |
| Shares Redeemed | (305) | (46 |
| Net Increase (Decrease) in Class A Shares Outstanding | (169) | 201 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed |  | 9 |
| Shares Issued on Distributions Reinvested |  | 2 |
| Shares Redeemed | (3) | (1 |
| Net Increase (Decrease) in Class C Shares Outstanding | (3) | 10 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Counterpoint Global Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 29, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $15.33 | $19.01 | $11.32 | $8.46 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.07) | (0.16) | (0.11) | (0.03) | (0.03) |
| Net Realized and Unrealized Gain (Loss) | (7.80) | (0.01) | 8.34 | 2.89 | (1.41) |
| Total from Investment Operations | (7.87) | (0.17) | 8.23 | 2.86 | (1.44) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.03) |
| Net Realized Gain |  | (3.51) | (0.54) |  |  |
| Paid-in-Capital |  |  |  |  | (0.07) |
| Total Distributions |  | (3.51) | (0.54) |  | (0.10) |
| **Net Asset Value, End of Period** | $7.46 | $15.33 | $19.01 | $11.32 | $8.46 |
| **Total Return<sup>(4)</sup>** | (51.34)% | (0.58)% | 72.70% | 33.81% | (14.36)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $6681 | $25794 | $23717 | $10097 | $5733 |
| Ratio of Expenses Before Expense Limitation | 4.57% | 2.39% | 3.29% | 5.22% | 6.83%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.06%<sup>(5)</sup> | 1.05%<sup>(5)</sup> | 1.04%<sup>(5)</sup> | 1.03%<sup>(5)</sup> | 1.03%<sup>(5)(8)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.05%<sup>(5)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (0.67)%<sup>(5)</sup> | (0.76)%<sup>(5)</sup> | (0.79)%<sup>(5)</sup> | (0.25)%<sup>(5)</sup> | (0.54)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 59% | 68% | 116% | 67% | 54%<sup>(7)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Counterpoint Global Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 29, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $15.14 | $18.89 | $11.28 | $8.47 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.10) | (0.23) | (0.19) | (0.06) | (0.04) |
| Net Realized and Unrealized Gain (Loss) | (7.69) | (0.01) | 8.34 | 2.87 | (1.40) |
| Total from Investment Operations | (7.79) | (0.24) | 8.15 | 2.81 | (1.44) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.03) |
| Net Realized Gain |  | (3.51) | (0.54) |  |  |
| Paid-in-Capital |  |  |  |  | (0.06) |
| Total Distributions |  | (3.51) | (0.54) |  | (0.09) |
| **Net Asset Value, End of Period** | $7.35 | $15.14 | $18.89 | $11.28 | $8.47 |
| **Total Return<sup>(4)</sup>** | (51.45)% | (0.95)% | 72.25% | 33.18% | (14.44)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $502 | $3598 | $696 | $15 | $8 |
| Ratio of Expenses Before Expense Limitation | 5.11% | 2.89% | 4.61% | 23.73% | 26.82%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.41%<sup>(5)</sup> | 1.40%<sup>(5)</sup> | 1.39%<sup>(5)</sup> | 1.39%<sup>(5)</sup> | 1.39%<sup>(5)(8)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.40%<sup>(5)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (1.02)%<sup>(5)</sup> | (1.12)%<sup>(5)</sup> | (1.16)%<sup>(5)</sup> | (0.62)%<sup>(5)</sup> | (0.91)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 59% | 68% | 116% | 67% | 54%<sup>(7)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Counterpoint Global Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 29, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $14.71 | $18.60 | $11.20 | $8.47 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.16) | (0.38) | (0.27) | (0.14) | (0.08) |
| Net Realized and Unrealized Gain (Loss) | (7.46) | 0.00<br><sup>(4)</sup> | 8.21 | 2.87 | (1.40) |
| Total from Investment Operations | (7.62) | (0.38) | 7.94 | 2.73 | (1.48) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.02) |
| Net Realized Gain |  | (3.51) | (0.54) |  |  |
| Paid-in-Capital |  |  |  |  | (0.03) |
| Total Distributions |  | (3.51) | (0.54) |  | (0.05) |
| **Net Asset Value, End of Period** | $7.09 | $14.71 | $18.60 | $11.20 | $8.47 |
| **Total Return<sup>(5)</sup>** | (51.87)% | (1.73)% | 70.89% | 32.23% | (14.80)%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $65 | $175 | $27 | $11 | $8 |
| Ratio of Expenses Before Expense Limitation | 8.47% | 6.40% | 18.57% | 24.53% | 27.44%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 2.16%<sup>(6)</sup> | 2.15%<sup>(6)</sup> | 2.14%<sup>(6)</sup> | 2.14%<sup>(6)</sup> | 2.14%<sup>(6)(9)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.15%<sup>(6)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (1.77)%<sup>(6)</sup> | (1.93)%<sup>(6)</sup> | (1.90)%<sup>(6)</sup> | (1.37)%<sup>(6)</sup> | (1.66)%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 59% | 68% | 116% | 67% | 54%<sup>(8)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Counterpoint Global Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **Period from<br>June 29, 2018<sup>(3)</sup> to**<br>**December 31, 2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $15.35 | $19.03 | $11.32 | $8.46 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(4)</sup> | (0.06) | (0.15) | (0.10) | (0.02) | (0.02) |
| Net Realized and Unrealized Gain (Loss) | (7.81) | (0.02) | 8.35 | 2.88 | (1.41) |
| Total from Investment Operations | (7.87) | (0.17) | 8.25 | 2.86 | (1.43) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.03) |
| Net Realized Gain |  | (3.51) | (0.54) |  |  |
| Paid-in-Capital |  |  |  |  | (0.08) |
| Total Distributions |  | (3.51) | (0.54) |  | (0.11) |
| **Net Asset Value, End of Period** | $7.48 | $15.35 | $19.03 | $11.32 | $8.46 |
| **Total Return<sup>(5)</sup>** | (51.27)% | (0.59)% | 72.88% | 33.81% | (14.34)%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $9 | $19 | $20 | $11 | $8 |
| Ratio of Expenses Before Expense Limitation | 20.79% | 12.66% | 19.31% | 23.44% | 26.39%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 1.01%<sup>(6)</sup> | 1.00%<sup>(6)</sup> | 0.99%<sup>(6)</sup> | 0.99%<sup>(6)</sup> | 0.99%<sup>(6)(9)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.00%<sup>(6)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (0.62)%<sup>(6)</sup> | (0.71)%<sup>(6)</sup> | (0.74)%<sup>(6)</sup> | (0.22)%<sup>(6)</sup> | (0.51)%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 59% | 68% | 116% | 67% | 54%<sup>(8)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Operations.

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

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

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Counterpoint Global Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:**The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Counterpoint Global Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented approximately $42,000 or approximately 0.57% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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 June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"), which clarifies the guidance in ASC Topic No. 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and introduces new disclosures related to such equity security. ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security's fair value (i.e., the entity should not apply a discount related to the contractual sale restriction, as stated in ASC 820-10-35-36B as amended by ASU 2022-03). In addition, ASU 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. The new guidance is effective for public companies with annual reporting periods in fiscal years beginning after December 15, 2023, and interim periods in the following year, with early adoption permitted. At this time, management is currently evaluating the impact of ASU 2022-03.

**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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers/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/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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley (effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to the Fund), determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; (7) Private Investment in Public Equity ("PIPE") investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**2. Fair Value Measurement:** FASB ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $46 |  | $55 | $— | $101 |  |
| Air Freight & Logistics |  |  | 112 |  | 112 |  |
| Airlines | 2 |  |  |  | 2 |  |
| Auto Components | 6 |  |  |  | 6 |  |
| Automobiles | 14 |  |  |  | 14 |  |
| Banks | 231 |  | 17 |  | 248 |  |
| Beverages | 3 |  | 49 |  | 52 |  |
| Biotechnology | 50 |  | 5 |  | 55 |  |
| Capital Markets | 79 |  | 2 |  | 81 |  |
| Chemicals | 58 |  | 16 |  | 74 |  |
| Commercial Services & <br>Supplies | 11 |  | 37 |  | 48 |  |
| Communications <br>Equipment | 25 |  |  |  | 25 |  |
| Construction Materials | 1 |  | 3 |  | 4 |  |
| Consumer Finance | 11 |  |  |  | 11 |  |
| Containers & Packaging | 2 |  |  |  | 2 |  |
| Distributors | 10 |  |  |  | 10 |  |
| Diversified Consumer <br>Services | 25 |  | 1 |  | 26 |  |
| Diversified Financial <br>Services | 4 |  | 5 |  | 9 |  |
| Diversified <br>Telecommunication <br>Services | 27 |  |  |  | 27 |  |
| Electronic Equipment, <br>Instruments & <br>Components |  |  | 39 |  | 39 |  |
| Entertainment | 218 |  | 33 |  | 251 |  |
| Equity Real Estate <br>Investment Trusts <br>(REITs) |  | @ |  |  |  | @ |
| Food & Staples Retailing |  |  | 9 |  | 9 |  |
| Food Products | 13 |  | 17 |  | 30 |  |
| Health Care Equipment & <br>Supplies | 30 |  | 29 |  | 59 |  |
| Health Care Providers & <br>Services | 171 |  |  |  | 171 |  |
| Health Care Technology | 130 |  |  |  | 130 |  |
| Hotels, Restaurants & <br>Leisure | 46 |  | 52 |  | 98 |  |
| Household Durables | 138 |  | 140 |  | 278 |  |
| Information Technology <br>Services | 1328 |  | 146 |  | 1474 |  |
| Insurance | 25 |  | 16 |  | 41 |  |
| Interactive Media & <br>Services | 123 |  | 45 |  | 168 |  |
| Internet & Direct <br>Marketing Retail | 655 |  | 46 |  | 701 |  |
| Leisure Products | 33 |  |  |  | 33 |  |
| Life Sciences Tools & <br>Services | 126 |  | 17 |  | 143 |  |
| Machinery |  |  | 7 |  | 7 |  |
| Marine |  |  | 15 |  | 15 |  |
| Media | 125 |  |  |  | 125 |  |
| Metals & Mining | 14 |  | 4 |  | 18 |  |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Multi-Utilities | $14 |  | $— | $— | $14 |  |
| Oil, Gas & Consumable <br>Fuels | 2 |  |  |  | 2 |  |
| Personal Products | 1 |  | 11 |  | 12 |  |
| Pharmaceuticals | 248 |  | 5 |  | 253 |  |
| Real Estate <br>Management & <br>Development | 38 |  | 2 |  | 40 |  |
| Road & Rail | 302 |  |  |  | 302 |  |
| Semiconductors & <br>Semiconductor <br>Equipment | 135 |  | 44 |  | 179 |  |
| Software | 905 |  | 2 |  | 907 |  |
| Specialty Retail | 137 |  |  |  | 137 |  |
| Textiles, Apparel & <br>Luxury Goods | 31 |  | 235 |  | 266 |  |
| Trading Companies & <br>Distributors | 7 |  |  |  | 7 |  |
| Transportation <br>Infrastructure | 1 |  |  |  | 1 |  |
| **Total Common Stocks** | **5601** |  | **1216** | **—** | **6817** |  |
| **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
| Software |  |  |  | 33 | 33 |  |
| **Investment Companies** | 34 |  | 6 |  | 40 |  |
| **Warrants** |  | @ |  |  |  | @ |
| **Call Options Purchased** |  |  | 8 |  | 8 |  |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 287 |  |  |  | 287 |  |
| **Total Assets** | $**5922** |  | $**1230** | $**33** | $**7185** |  |

---

@ 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.

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

---

| | | | |
|:---|:---|:---|:---|
| | **Preferred<br>Stock<br>(000)** | **Derivative<br>Contract —<br>PIPE<br>(000)** | **Derivative<br>Contract —<br>PIPE<br>(000)** |
| **Beginning Balance** | $45 | $(— | @) |
| Purchases |  |  |  |
| Sales |  |  |  |
| PIPE transactions |  |  | @ |
| Amortization of discount |  |  |  |
| Transfers in |  |  |  |
| Transfers out |  |  |  |
| Corporate actions |  |  |  |
| Change in unrealized appreciation (depreciation) | (12) |  |  |
| Realized gains (losses) |  |  |  |
| **Ending Balance** | $33 | $— |  |
| Net change in unrealized appreciation <br>(depreciation) from investments still held <br>as of December 31, 2022 | $(12) | $— |  |

---

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 December 31, 2022. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance. The Fund calculated the weighted averages of the unobservable inputs relative to each investment's fair value as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value at<br>December 31, 2022<br>(000)** | **Valuation<br>Technique** | **Unobservable<br>Input** | **Amount\*** | **Impact to<br>Valuation from an<br>Increase in Input\*\*** |
| Preferred Stock | $33 | Discounted Cash Flow | Weighted Average <br>Cost of Capital | <br>14.0% | <br>Decrease |
|  |  |  | Perpetual Growth Rate | 3.5% | Increase |
|  |  | Market Comparable<br>Companies | Enterprise Value/ <br>Revenue | <br>12.8x | <br>Increase |
|  |  |  | Discount for Lack <br>of Marketability | <br>15.0% | <br>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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**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 U.S. 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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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:** 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.

As of December 31, 2022, the Fund did not have any open PIPE 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 table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives <br>Consolidated <br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Purchased Options | Investments, at Value<br>(Purchased Options) | Currency Risk | $8<br> (a) |

---

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

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

appreciation (depreciation) by type of derivative contract for the year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(84)(b) |

---

(b) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | | |
|:---|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $69 | (c) |
| Equity Risk | Derivative Contract — PIPE |  | @ |
| Total |  | $69 |  |

---

@ Value is less than $500.

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(d)<br>(000)** | **Liabilities(d)<br>(000)** |
| Purchased Options | $8<br> (a) | $— |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 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 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Asset <br>Derivatives<br>Presented in<br>the Consolidated<br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| JP Morgan Chase <br>Bank NA | $8 | $— | $— | $8 |

---

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

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 9245000 |
| **Derivative Contract — PIPE:** | **Derivative Contract — PIPE:** |
| Average monthly notional amount | $20000 |

---

**5. 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,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 Consolidated Portfolio of Investments.

**6. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 1.05% for Class I shares, 1.40% for Class A shares, 2.15% for Class C shares and 1.00% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $101,000 of advisory fees were waived and approximately $350,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

Effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to 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 Company and provides administrative

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement.

For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $7,414,000 and $13,164,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by less 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment <br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $2042 | $6842 | $8597 | $3 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized <br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $287 |

---

During the year ended December 31, 2022, the Fund incurred less than $500 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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. Each of the tax years in the four-year period ended December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term <br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $— | $2976 | $1893 |

---

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 December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated <br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $166 | $(166) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $3,192,000 and 1,166,000, 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.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified<br>Late Year<br>Ordinary<br>Losses<br>(000)** | **Post-October<br>Capital<br>Losses<br>(000)** |
| $23 | $— |

---

**I. Credit Facility:**The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:**At December 31, 2022, the Fund did not have record owners of 10% or greater.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrencies indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which

have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**Special Purpose Acquisition Companies ("SPAC"):** The Fund may invest in stock, warrants, and other securities of 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 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 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. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Counterpoint Global Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Counterpoint Global Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the four years in the period then ended and the period from June 29, 2018 (commencement of operations) through December 31, 2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the four years in the period then ended and the period from June 29, 2018 (commencement of operations) through December 31, 2018, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j2327926_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

---

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

------

Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327926_za006.jpg)

IFIGCPTANN<br>5443394 EXP 02.29.24

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![](j2327927_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Developing Opportunity Portfolio

Annual Report

December 31, 2022

![](j2327927_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 7 |
| Consolidated Statement of Operations | 8 |
| Consolidated Statements of Changes in Net Assets | 9 |
| Consolidated Financial Highlights | 10 |
| Notes to Consolidated Financial Statements | 14 |
| Report of Independent Registered Public Accounting Firm | 23 |
| Liquidity Risk Management Program | 24 |
| U.S. Customer Privacy Notice | 25 |
| Director and Officer Information | 28 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j2327927_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Developing Opportunity Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 December 31, 2022 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) and redemption fees. 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Developing Opportunity Portfolio Class I | $1000.00 | $1030.10 | $1019.41 | $5.88 | $5.85 | 1.15% |
| Developing Opportunity Portfolio Class A | 1000.00 | 1030.30 | 1018.35 | 6.96 | 6.92 | 1.36 |
| Developing Opportunity Portfolio Class C | 1000.00 | 1025.80 | 1014.27 | 11.08 | 11.02 | 2.17 |
| Developing Opportunity Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1031.30 | 1019.66 | 5.63 | 5.60 | 1.10 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Developing Opportunity Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –30.36%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI Emerging Markets Net Index (the "Index"), which returned –20.09%.

**Factors Affecting Performance**

• Emerging market equities declined during the 12-month period ended December 31, 2022. The decline was driven by heightened macroeconomic, geopolitical and regulatory uncertainty. Emerging market equities rebounded sharply from the end of October 2022 through the end of the reporting period, encouraged by indications of a gradual relaxation of zero-COVID policies and the announcement of stimulus measures in China.

• Our team remained focused on assessing company prospects over a longer-term period of five to ten years, and owning a portfolio of high quality companies with diverse business drivers not tied to a particular market environment.

• The team manages concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. Our longer-term focus results in lower turnover than many of our peers. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process. For the 12-month period, the Fund underperformed the Index due to unfavorable stock selection despite favorable sector allocation.

• The main detractors from relative performance were stock selection in the information technology, communications services and industrials sectors.

• The top contributors to the Fund's relative performance were an underweight allocation to the information technology sector, and stock selection and an overweight allocation to the financials sector.

**Management Strategies**

• There were no changes to our bottom-up investment process during the period. The Fund

seeks long-term capital appreciation by investing primarily in high quality companies located or operating in developing or emerging market countries, with capitalizations within the range of companies in the MSCI Emerging Markets Net Index. To achieve its objective, the investment team typically favors companies it believes have sustainable competitive advantages that can be monetized through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG).

• At the close of the period, consumer discretionary represented the largest sector weight in the portfolio, followed by financials and communication services. Our bottom-up investment process resulted in sector overweight positions in consumer discretionary, financials, real estate, consumer staples and communication services, and underweight positions in industrials, utilities, health care, materials, energy and information technology. The Fund had no holdings in health care, energy and utilities at the end of the reporting period.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Developing Opportunity Portfolio**

![](j2327927_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on February 14, 2020.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI Emerging Markets Net Index<sup>(1)</sup> and the Lipper Emerging Markets Funds Index<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –30.36% |  |  | –6.62% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –30.52 |  |  | –6.86 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –34.17 |  |  | –8.57 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –31.08 |  |  | –7.62 |
| Fund — Class C Shares <br>with maximum 1.00% deferred <br>sales charges<sup>(4)</sup> | –31.77 |  |  | –7.62 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –30.25 |  |  | –6.54 |
| MSCI Emerging Markets <br>Net Index | –20.09 |  |  | –2.57 |
| Lipper Emerging Markets <br>Funds Index | –22.34 |  |  | –2.52 |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI Emerging Markets Net Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI Emerging Markets Net Index currently consists of 24 emerging market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on February 14, 2020. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Developing Opportunity Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.1%)** | **Common Stocks (98.1%)** | **Common Stocks (98.1%)** |
| Argentina (4.3%) | Argentina (4.3%) | Argentina (4.3%) |
| Globant SA (a) | 19300 | $3245 |
| Brazil (4.2%) | Brazil (4.2%) | Brazil (4.2%) |
| B3 SA — Brasil Bolsa Balcao | 562042 | 1405 |
| NU Holdings Ltd., Class A (a) | 428076 | 1742 |
|  |  | 3147 |
| China (37.4%) | China (37.4%) | China (37.4%) |
| 360 DigiTech, Inc. | 71079 | 1447 |
| China East Education Holdings Ltd. (b) | 574500 | 455 |
| China Resources Beer Holdings Co., Ltd. (b) | 190000 | 1322 |
| China Resources Mixc Lifestyle Services Ltd. (b) | 171800 | 870 |
| Foshan Haitian Flavouring & Food Co., Ltd., <br>Class A | 185338 | 2117 |
| Haidilao International Holding Ltd. (a)(b) | 1049000 | 2992 |
| HUYA, Inc. ADR (a) | 165732 | 655 |
| KE Holdings, Inc. ADR (a) | 171545 | 2395 |
| Kuaishou Technology (a)(b) | 244800 | 2201 |
| Kweichow Moutai Co., Ltd., Class A | 9589 | 2372 |
| Meituan, Class B (a)(b) | 188300 | 4172 |
| Shenzhou International Group Holdings Ltd. (b) | 107800 | 1202 |
| Tencent Holdings Ltd. (b) | 43800 | 1857 |
| Trip.com Group Ltd. ADR | 107034 | 3682 |
| Yihai International Holding Ltd. (a)(b) | 112000 | 394 |
|  |  | 28133 |
| Hong Kong (0.2%) | Hong Kong (0.2%) | Hong Kong (0.2%) |
| Super Hi International Holding Ltd. (a) | 106000 | 135 |
| India (22.7%) | India (22.7%) | India (22.7%) |
| HDFC Bank Ltd. | 324774 | 6370 |
| ICICI Bank Ltd. ADR | 222150 | 4863 |
| IndusInd Bank Ltd. | 252263 | 3708 |
| Shree Cement Ltd. | 5865 | 1648 |
| Zomato Ltd. (a) | 626785 | 449 |
|  |  | 17038 |
| Indonesia (1.9%) | Indonesia (1.9%) | Indonesia (1.9%) |
| Avia Avian Tbk PT | 35138500 | 1422 |
| Korea, Republic of (10.1%) | Korea, Republic of (10.1%) | Korea, Republic of (10.1%) |
| Coupang, Inc. (a) | 245036 | 3605 |
| KakaoBank Corp. (a) | 89659 | 1744 |
| NAVER Corp. | 15833 | 2252 |
|  |  | 7601 |
| Mexico (1.7%) | Mexico (1.7%) | Mexico (1.7%) |
| Grupo Aeroportuario del Sureste SAB de CV, <br>Class B | 55135 | 1286 |
| Singapore (4.2%) | Singapore (4.2%) | Singapore (4.2%) |
| Grab Holdings Ltd., Class A (a) | 708917 | 2283 |
| Sea Ltd. ADR (a) | 17352 | 903 |
|  |  | 3186 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Taiwan (5.3%) | Taiwan (5.3%) | Taiwan (5.3%) |
| Nien Made Enterprise Co., Ltd. | 67000 | $640 |
| Silergy Corp. | 65000 | 918 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 168000 | 2440 |
|  |  | 3998 |
| United States (6.1%) | United States (6.1%) | United States (6.1%) |
| MercadoLibre, Inc. (a) | 5413 | 4581 |
| **Total Common Stocks (Cost $81,381)** | **Total Common Stocks (Cost $81,381)** | 73772 |
| **Short-Term Investment (0.4%)** | **Short-Term Investment (0.4%)** | **Short-Term Investment (0.4%)** |
| Investment Company (0.4%) | Investment Company (0.4%) | Investment Company (0.4%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $292)** | 292301 | 292 |
| **Total Investments (98.5%) (Cost $81,673) (c)(d)** | **Total Investments (98.5%) (Cost $81,673) (c)(d)** | 74064 |
| Other Assets in Excess of Liabilities (1.5%) | Other Assets in Excess of Liabilities (1.5%) | 1133 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $75197 |

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

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) The approximate fair value and percentage of net assets, $42,950,000 and 57.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Consolidated Notes to the Financial Statements.

(d) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $88,613,000. The aggregate gross unrealized appreciation is approximately $3,472,000 and the aggregate gross unrealized depreciation is approximately $18,025,000, resulting in net unrealized depreciation of approximately $14,553,000.

ADR American Depositary Receipt.

**Portfolio Composition**

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| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 35.3% |
| Banks | 24.9 |
| Internet & Direct Marketing Retail | 17.3 |
| Hotels, Restaurants & Leisure | 9.0 |
| Interactive Media & Services | 8.5 |
| Beverages | 5.0 |
| 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 consolidated financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Developing Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $81,381) | $73772 |
| Investment in Security of Affiliated Issuer, at Value (Cost $292) | 292 |
| Total Investments in Securities, at Value (Cost $81,673) | 74064 |
| Foreign Currency, at Value (Cost $7) | 7 |
| Receivable for Fund Shares Sold | 900 |
| Receivable for Investments Sold | 695 |
| Dividends Receivable | 24 |
| Receivable from Affiliate | 5 |
| Other Assets | 51 |
| **Total Assets** | 75746 |
| **Liabilities:** | **Liabilities:** |
| Payable for Fund Shares Redeemed | 262 |
| Payable for Advisory Fees | 137 |
| Payable for Professional Fees | 66 |
| Payable for Custodian Fees | 24 |
| Payable for Sub Transfer Agency Fees — Class I | 21 |
| Payable for Sub Transfer Agency Fees — Class A |  |
| Payable for Sub Transfer Agency Fees — Class C |  |
| Deferred Capital Gain Country Tax | 6 |
| Payable for Administration Fees | 5 |
| Payable for Shareholder Services Fees — Class A | 1 |
| Payable for Distribution and Shareholder Services Fees — Class C | 3 |
| Payable for Transfer Agency Fees — Class I | 1 |
| Payable for Transfer Agency Fees — Class A |  |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Other Liabilities | 23 |
| **Total Liabilities** | 549 |
| **Net Assets** | $75197 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $158491 |
| Total Accumulated Loss | (83294 |
| **Net Assets** | $75197 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $66056 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 8041098 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $8.21 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $5057 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 620742 |
| **Net Asset Value, Redemption Price Per Share** | $8.15 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.45 |
| **Maximum Offering Price Per Share** | $8.60 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $4076 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 511693 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.97 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $8 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1000 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $8.23 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Developing Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $91 of Foreign Taxes Withheld) | $865 |
| Dividends from Security of Affiliated Issuer (Note G) | 19 |
| Total Investment Income | 884 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 1081 |
| Professional Fees | 182 |
| Custodian Fees (Note F) | 115 |
| Sub Transfer Agency Fees — Class I | 109 |
| Sub Transfer Agency Fees — Class A | 3 |
| Sub Transfer Agency Fees — Class C | 2 |
| Administration Fees (Note C) | 96 |
| Registration Fees | 80 |
| Shareholder Services Fees — Class A (Note D) | 18 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 48 |
| Shareholder Reporting Fees | 27 |
| Transfer Agency Fees — Class I (Note E) | 4 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Directors' Fees and Expenses | 7 |
| Pricing Fees | 3 |
| Interest Expenses | 6 |
| Other Expenses | 21 |
| Total Expenses | 1810 |
| Waiver of Advisory Fees (Note B) | (291 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (59 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (3 |
| Net Expenses | 1455 |
| **Net Investment Loss** | (571 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold (Net of $174 of Capital Gain Country Tax) | (42424 |
| Foreign Currency Translation | (70 |
| Net Realized Loss | (42494 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Decrease in Deferred Capital Gain Country Tax of $121) | (19376 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (19376 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (61870 |
| Net Decrease in Net Assets Resulting from Operations | $(62441 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Developing Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(571) | $(2324) |
| Net Realized Loss | (42494) | (35806) |
| Net Change in Unrealized Appreciation (Depreciation) | (19376) | (28196) |
| Net Decrease in Net Assets Resulting from Operations | (62441) | (66326) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 55026 | 144045 |
| Redeemed | (129518) | (122034) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 2262 | 17282 |
| Redeemed | (5690) | (12583) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 974 | 6936 |
| Redeemed | (1754) | (3551) |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (78700) | 30095 |
| Redemption Fees | 6 | 11 |
| Total Decrease in Net Assets | (141135) | (36220) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 216332 | 252552 |
| End of Period | $75197 | $216332 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 5776 | 10000 |
| Shares Redeemed | (14479) | (9457) |
| Net Increase (Decrease) in Class I Shares Outstanding | (8703) | 543 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 252 | 1189 |
| Shares Redeemed | (652) | (978) |
| Net Increase (Decrease) in Class A Shares Outstanding | (400) | 211 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 116 | 456 |
| Shares Redeemed | (203) | (268) |
| Net Increase (Decrease) in Class C Shares Outstanding | (87) | 188 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Developing Opportunity Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from <br>February 14, 2020<sup>(1)</sup> to**<br>**December 31, 2020<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $11.79 | $14.50 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.04) | (0.10) | (0.10) |
| Net Realized and Unrealized Gain (Loss) | (3.54) | (2.61) | 4.60 |
| Total from Investment Operations | (3.58) | (2.71) | 4.50 |
| **Redemption Fees** | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> |
| **Net Asset Value, End of Period** | $8.21 | $11.79 | $14.50 |
| **Total Return<sup>(5)</sup>** | (30.36)% | (18.69)% | 45.00%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $66056 | $197435 | $234923 |
| Ratio of Expenses Before Expense Limitation | 1.45% | 1.23% | 1.41%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 1.15%<sup>(6)</sup> | 1.15%<sup>(6)</sup> | 1.14%<sup>(6)(9)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.15%<sup>(6)</sup> | N/A | N/A |
| Ratio of Net Investment Loss | (0.42)%<sup>(6)</sup> | (0.73)%<sup>(6)</sup> | (0.87)%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 31% | 64% | 18%<sup>(8)</sup> |

---

(1) Commencement of Operations.

(2) Not consolidated.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Developing Opportunity Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from <br>February 14, 2020<sup>(1)</sup> to**<br>**December 31, 2020<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $11.73 | $14.47 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.06) | (0.14) | (0.13) |
| Net Realized and Unrealized Gain (Loss) | (3.52) | (2.60) | 4.60 |
| Total from Investment Operations | (3.58) | (2.74) | 4.47 |
| **Redemption Fees** | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> |
| **Net Asset Value, End of Period** | $8.15 | $11.73 | $14.47 |
| **Total Return<sup>(5)</sup>** | (30.52)% | (18.94)% | 44.70%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $5057 | $11974 | $11721 |
| Ratio of Expenses Before Expense Limitation | 1.69% | 1.48% | 1.72%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 1.45%<sup>(6)</sup> | 1.46%<sup>(6)</sup> | 1.44%<sup>(6)(9)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.44%<sup>(6)</sup> | N/A | N/A |
| Ratio of Net Investment Loss | (0.69)%<sup>(6)</sup> | (1.03)%<sup>(6)</sup> | (1.17)%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 31% | 64% | 18%<sup>(8)</sup> |

---

(1) Commencement of Operations.

(2) Not consolidated.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Developing Opportunity Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from <br>February 14, 2020<sup>(1)</sup> to**<br>**December 31, 2020<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $11.55 | $14.36 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.12) | (0.24) | (0.22) |
| Net Realized and Unrealized Gain (Loss) | (3.46) | (2.57) | 4.58 |
| Total from Investment Operations | (3.58) | (2.81) | 4.36 |
| **Redemption Fees** | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> |
| **Net Asset Value, End of Period** | $7.97 | $11.55 | $14.36 |
| **Total Return<sup>(5)</sup>** | (31.08)% | (19.57)% | 43.60%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4076 | $6911 | $5893 |
| Ratio of Expenses Before Expense Limitation | 2.45% | 2.21% | 2.53%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 2.21%<sup>(6)</sup> | 2.19%<sup>(6)</sup> | 2.24%<sup>(6)(9)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.20%<sup>(6)</sup> | N/A | N/A |
| Ratio of Net Investment Loss | (1.44)%<sup>(6)</sup> | (1.78)%<sup>(6)</sup> | (1.97)%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 31% | 64% | 18%<sup>(8)</sup> |

---

(1) Commencement of Operations.

(2) Not consolidated.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Developing Opportunity Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from <br>February 14, 2020<sup>(2)</sup> to**<br>**December 31, 2020<sup>(3)</sup>** |
| **Net Asset Value, Beginning of Period** | $11.80 | $14.51 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(4)</sup> | (0.03) | (0.10) | (0.07) |
| Net Realized and Unrealized Gain (Loss) | (3.54) | (2.61) | 4.58 |
| Total from Investment Operations | (3.57) | (2.71) | 4.51 |
| **Redemption Fees** | 0.00<br><sup>(5)</sup> | 0.00<br><sup>(5)</sup> | 0.00<br><sup>(5)</sup> |
| **Net Asset Value, End of Period** | $8.23 | $11.80 | $14.51 |
| **Total Return<sup>(6)</sup>** | (30.25)% | (18.68)% | 45.10%<sup>(9)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $8 | $12 | $15 |
| Ratio of Expenses Before Expense Limitation | 24.48% | 17.42% | 17.67%<sup>(10)</sup> |
| Ratio of Expenses After Expense Limitation | 1.11%<sup>(7)(11)</sup> | 1.10%<sup>(7)</sup> | 1.09%<sup>(7)(10)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.10%<sup>(7)</sup> | N/A | N/A |
| Ratio of Net Investment Loss | (0.34)%<sup>(7)</sup> | (0.69)%<sup>(7)</sup> | (0.67)%<sup>(7)(10)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.01%<sup>(10)</sup> |
| Portfolio Turnover Rate | 31% | 64% | 18%<sup>(9)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

(3) Not consolidated.

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

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

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

(7) 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."

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

(11) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to Financial Statements.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Developing Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Developing Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented 0% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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/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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley (effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to the Fund), determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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

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

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

• 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Banks | $6605 | $11822 | $— | $18427 |
| Beverages |  | 3694 |  | 3694 |
| Capital Markets |  | 1405 |  | 1405 |
| Chemicals |  | 1422 |  | 1422 |
| Construction Materials |  | 1648 |  | 1648 |
| Consumer Finance | 1447 |  |  | 1447 |
| Diversified Consumer <br>Services | 135 | 455 |  | 590 |
| Entertainment | 1558 |  |  | 1558 |
| Food Products |  | 2511 |  | 2511 |
| Hotels, Restaurants & <br>Leisure | 3682 | 2992 |  | 6674 |
| Household Durables |  | 640 |  | 640 |
| Information Technology <br>Services | 3245 |  |  | 3245 |
| Interactive Media & <br>Services |  | 6310 |  | 6310 |
| Internet & Direct <br>Marketing Retail | 8186 | 4621 |  | 12807 |
| Real Estate <br>Management & <br>Development | 2395 | 870 |  | 3265 |
| Road & Rail | 2283 |  |  | 2283 |
| Semiconductors & <br>Semiconductor <br>Equipment |  | 3358 |  | 3358 |
| Textiles, Apparel & <br>Luxury Goods |  | 1202 |  | 1202 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Transportation <br>Infrastructure | $1286 | $— | $— | $1286 |
| **Total Common Stocks** | **30822** | **42950** | **—** | **73772** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 292 |  |  | 292 |
| **Total Assets** | $**31114** | $**42950** | $**—** | $**74064** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 U.S. 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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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.

As of December 31, 2022, the Fund did not have any outstanding purchased options.

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

contract for the year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(871)(a) |

---

(a) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $695<br> (b) |

---

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 77,173,000 |

---

**5. Redemption Fees:** The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

**6. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.90% | 0.85% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.65% 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 1.15% for Class I shares, 1.50% for Class A shares, 2.25% for Class C shares and 1.10% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $291,000 of advisory fees were waived and approximately $61,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

Effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to 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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $36,449,000 and $115,209,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the

Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $5051 | $66039 | $70798 | $19 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $292 |

---

During the year ended December 31, 2022, the Fund incurred approximately $1,000 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the consolidated financial statements.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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. Each of the tax years in the three-year period ended December 31, 2022 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 years 2022 and 2021.

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 and tax adjustments related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $3996 | $(3996) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $44,089,000 and $24,574,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 82.2%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrency indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Developing Opportunity Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Developing Opportunity Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the two years in the period then ended and the period from February 14, 2020 (commencement of operations) through December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the two years in the period then ended and the period from February 14, 2020 (commencement of operations) through December 31, 2020, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j2327927_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

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**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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327927_za006.jpg)

IFIDOANN<br>5437961 EXP 02.29.24

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![](j2327928_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Leaders Portfolio

Annual Report

December 31, 2022

![](j2327928_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 9 |
| Statement of Operations | 11 |
| Statements of Changes in Net Assets | 12 |
| Financial Highlights | 14 |
| Notes to Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 26 |
| Liquidity Risk Management Program | 27 |
| U.S. Customer Privacy Notice | 28 |
| Director and Officer Information | 31 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j2327928_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Emerging Markets Leaders Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 December 31, 2022 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) and redemption fees. 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Emerging Markets Leaders Portfolio Class I | $1000.00 | $971.90 | $1019.51 | $5.62 | $5.75 | 1.13% |
| Emerging Markets Leaders Portfolio Class A | 1000.00 | 970.50 | 1018.15 | 6.95 | 7.12 | 1.40 |
| Emerging Markets Leaders Portfolio Class C | 1000.00 | 967.40 | 1014.57 | 10.46 | 10.71 | 2.11 |
| Emerging Markets Leaders Portfolio Class R6<sup>(1)</sup> | 1000.00 | 972.70 | 1019.96 | 5.17 | 5.30 | 1.04 |
| Emerging Markets Leaders Portfolio Class IR | 1000.00 | 972.00 | 1019.86 | 5.27 | 5.40 | 1.06 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Emerging Markets Leaders Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –33.49%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, MSCI Emerging Markets Net Index (the "Index"), which returned –20.09%.

**Factors Affecting Performance**

• 2022 has been the toughest year of performance for the Fund since the inception. Recessionary fears, the Federal Reserve's (Fed) steady tightening cycle, Russia's ongoing war in Ukraine, high oil and commodity prices, slowing global demand and China's stringent zero-COVID policy were some of the reasons for the drop in emerging markets, as seen in global markets and across asset classes. Our overweight selection to non-emerging markets (EM) companies and our stock selection in Brazil were the main source of relative detraction in the reporting period. Our zero allocation to Russia and our underweights to Korea and China contributed to relative returns.

• Our largest contributors to performance in 2022 were our Indian financial names. Our overweight selection to a Chinese cosmetics brand and the zero weight to a South Korean consumer and industrial electronics manufacturer also contributed to returns.

• The largest detractor was our holding in a Southeast Asian next-generation digital ecosystem company, which we exited during the period. The company was impacted by worries over the slower gaming revenue and a difficult expansion into Latin America. Our overweight to a China-based power management integrated circuits manufacturer also hindered returns as the stock fell –68.58% in the year, amid the semiconductor industry's slowdown.<sup>(i)</sup> The share price of our EM delivery company was also impacted by concerns over potential debt refinancing; although it saw some

recovery in its share price, the holding detracted from relative performance in the period.

• In hindsight, our poor performance in 2022 was largely driven by holding onto winners from 2021 for longer than we should have. We had perhaps given our companies' managements too much benefit of the doubt. We exited three of the five largest detractors during the year, which had accounted for nearly 600 basis points (or roughly half) of the 2022 relative underperformance.<sup>(ii)</sup>

**Management Strategies**

• For a high conviction strategy such as the Emerging Markets Leaders Portfolio, such periods of underperformance, whether over months or quarters, is part of the return profile. In the last three years, there have been a number of quarters where the portfolio has shown significant divergence from Index returns, and that will remain the likely scenario in the future as well. We firmly believe that the Emerging Market Leaders Portfolio performance over the longer term can converge with the earnings growth of the portfolio.

• The Fund remains an all-cap growth strategy investing in structural growth opportunities in emerging market equities. We believe that growth-oriented companies offer the best return prospects in the emerging markets and that these can be found at many different market caps; however, given the inherent volatility and liquidity constraints in these markets, the Emerging Market Leaders Portfolio will generally look to invest in companies with market capitalizations larger than $1 billion.

• 2022 was both a disappointing and difficult year. Many market observers have raised the question whether the era of "growth" and "quality" companies is over. While there may be short periods of relative underperformance, we remain holders of companies that we believe are of favorable quality over the full cycle, and as global economic growth sees headwinds, we expect investor demand for growth to return.

 

<sup>(i)</sup> Source: Bloomberg L.P. Data as of December 31, 2022.

<sup>(ii)</sup> One basis point = 0.01%

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Emerging Markets Leaders Portfolio**

• The Emerging Leaders Strategy remains based on the following tenets:

1. The share price performance should converge with earnings per share growth over the cycle. If a company's earnings per share grows at 20% compound annual growth rate, we believe that the share price should deliver at least that performance over the investment cycle.

2. We remain focused on a concentrated list of holdings. If you look at the universe of stocks on a global basis, not just in EM, only 2% to 3% of the companies deliver sustainable market capitalization creation based on our research and other academic research. While there will be periods of short-term market cap creation, poorly managed companies tend to give it all back.

3. We focus on companies where the management teams have the ability to control their capital allocation decisions. We need to have visibility on where the growth is coming from.

• Some investors remain unconvinced on the outlook for emerging markets given the number of head fakes and the frequent call for market bottoms from market strategists. While we too are positive on the outlook for emerging markets, we have a more nuanced view that not all EM countries will benefit from the likely growth differential compared to U.S. and developed markets. It may be the case that benchmark returns may see-saw up and down for the decade ahead, but we believe a strong case can be made for investing in bottom-up opportunities.

• While the broad market has now seen some valuation adjustment, our investment thesis isn't premised on continued rises in valuation, but rather on the ability of our invested companies to deliver earnings growth, which should translate into share price growth over the market cycle.

• We are often asked about the China internet companies especially. We had exited these names mainly in 2021, and while some of them have seen

large rallies in recent months, they are still below our exit prices. Part of our investment philosophy is focused on reducing tail risks, and we believe there is some potential for tail risks to rise again. But the reality remains largely unchanged:

1. While regulation has eased, it is still unclear what would stop the government from reinstating some of those regulations.

2. The founders of these businesses are no longer in charge as they have either given up decision powers or have in some cases left the country.

3. The growth trajectory for these companies has changed significantly. For these companies, the market penetration and growth stories from five years are no longer the case today.

• We maintain and continuously update a compounders country list. Not surprisingly, after a tough 2022, there are several EM countries where the number of compounders has dropped to zero, including Malaysia, Colombia, Czech Republic and Chile, even as the large continental-sized markets such as China, India, Taiwan, Indonesia and Brazil dominate in terms of the number of companies that have delivered compounded returns. For this reason and given the likely headwinds ahead for developed markets and the history of more conservative central bank policies (setting aside outliers such as Turkey), we believe EM represents a structural rather than tactical allocation for investors.

• With the market reset, there are new opportunities now emerging in industries that are perceived to be more cyclical than structural, as industries have consolidated and leaders command significant market share. And while there may be some concerns about markets that had done well, such as India, we believe that the structural growth story for the next decade remains unchanged.

• We believe that emerging markets broadly, and those continental-sized markets in particular, should be well positioned not just for the coming year but for the decade ahead.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Emerging Markets Leaders Portfolio**

![](j2327928_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Performance shown for the Fund's Class I shares reflects the performance of the Morgan Stanley Emerging Markets Leaders Fund (Cayman) LP, a private fund managed by the Adviser for periods prior to close of business on January 5, 2015, when the Fund acquired substantially all of the assets and liabilities of the Private Fund in exchange for shares of the Fund (the "Emerging Markets Leaders Reorganization").

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI Emerging Markets Net Index<sup>(1)</sup> and the Lipper Emerging Markets Funds Index<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(7)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –33.49% | 3.26% | 3.84% | 3.95% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –33.71 | 2.90 | 3.53 | 3.68 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –37.18 | 1.80 | 2.97 | 3.19 |
| Fund — Class C Shares <br>w/o sales charges<sup>(5)</sup> | –34.18 | 2.13 |  | 3.06 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(5)</sup> | –34.84 | 2.13 |  | 3.06 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –33.42 | 3.34 | 3.88 | 3.99 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(6)</sup> | –33.47 |  |  | –20.01 |
| MSCI Emerging Markets Net Index | –20.09 | –1.40 | 1.44 | 0.85 |
| Lipper Emerging Markets <br>Funds Index | –22.34 | –1.13 | 1.67 | 1.24 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI Emerging Markets Net Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI Emerging Markets Net Index currently consists of 24 emerging market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Emerging Markets Leaders Portfolio**

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Pursuant to an agreement and plan of reorganization, between Morgan Stanley Institutional Fund, Inc., on behalf of the Fund, and Morgan Stanley Emerging Markets Leaders Fund (Cayman) LP, a private fund managed by the Adviser (the "Private Fund"), following close of business on January 5, 2015, the Fund acquired substantially all of the assets and liabilities of the Private Fund in exchange for shares of the Fund (the "Emerging Markets Leaders Reorganization"). The Private Fund commenced operations on June 30, 2011. The Fund adopted the performance history of the Private Fund. Performance shown for the Fund's Class I, Class A and Class IS shares reflects the performance of the limited partnership interests of the Private Fund, adjusted to reflect any applicable sales charge of the Class, but not adjusted for any other differences in expenses. If adjusted for other expenses, the historical returns would be different. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> Commenced offering on April 30, 2015.

<sup>(6)</sup> Commenced offering on April 12, 2021.

<sup>(7)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Emerging Markets Leaders Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (95.1%)** | **Common Stocks (95.1%)** | **Common Stocks (95.1%)** |
| Argentina (5.1%) | Argentina (5.1%) | Argentina (5.1%) |
| Globant SA (a) | 87862 | $14775 |
| Brazil (3.2%) | Brazil (3.2%) | Brazil (3.2%) |
| NU Holdings Ltd., Class A (Cayman Island) (a) | 2257292 | 9187 |
| China (24.8%) | China (24.8%) | China (24.8%) |
| BYD Co., Ltd. H Shares (b) | 224000 | 5496 |
| Kingdee International Software <br>Group Co., Ltd. (a)(b) | 5278000 | 11200 |
| Li Ning Co., Ltd. (b) | 2522000 | 21687 |
| Proya Cosmetics Co. Ltd., Class A | 533328 | 12836 |
| Shenzhou International Group Holdings Ltd. (b) | 1586300 | 17690 |
| Sunresin New Materials Co. Ltd., Class A | 204900 | 2047 |
|  |  | 70956 |
| Germany (2.7%) | Germany (2.7%) | Germany (2.7%) |
| Delivery Hero SE (a) | 164396 | 7889 |
| India (35.5%) | India (35.5%) | India (35.5%) |
| Aarti Industries Ltd. | 1420019 | 10452 |
| Aarti Pharmalabs Ltd. (a) | 344014 | 1578 |
| AU Small Finance Bank Ltd. | 1887117 | 14906 |
| Avenue Supermarts Ltd. (a) | 93062 | 4569 |
| Bajaj Finance Ltd. | 234454 | 18572 |
| Dixon Technologies India Ltd. | 175221 | 8253 |
| ICICI Bank Ltd. | 1519707 | 16346 |
| IIFL Wealth Management Ltd. | 267280 | 5725 |
| KEI Industries Ltd. | 450651 | 7961 |
| SBI Cards & Payment Services Ltd. | 671019 | 6443 |
| SRF Ltd. | 925 | 26 |
| Titan Co. Ltd. | 106856 | 3353 |
| Trent Ltd. | 211668 | 3453 |
|  |  | 101637 |
| Korea, Republic of (1.0%) | Korea, Republic of (1.0%) | Korea, Republic of (1.0%) |
| SK Hynix, Inc. | 47573 | 2839 |
| Singapore (1.6%) | Singapore (1.6%) | Singapore (1.6%) |
| TDCX, Inc. ADR (a) | 369456 | 4574 |
| Taiwan (11.9%) | Taiwan (11.9%) | Taiwan (11.9%) |
| Chailease Holding Co., Ltd. | 2177900 | 15344 |
| Silergy Corp. | 349000 | 4929 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 113000 | 1641 |
| Voltronic Power Technology Corp. | 244334 | 12259 |
|  |  | 34173 |
| United States (9.3%) | United States (9.3%) | United States (9.3%) |
| MercadoLibre, Inc. (a) | 25339 | 21443 |
| Thoughtworks Holding, Inc. (a) | 504878 | 5145 |
|  |  | 26588 |
| **Total Common Stocks (Cost $286,094)** | **Total Common Stocks (Cost $286,094)** | 272618 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Short-Term Investment (4.7%)** | **Short-Term Investment (4.7%)** | **Short-Term Investment (4.7%)** |
| Investment Company (4.7%) | Investment Company (4.7%) | Investment Company (4.7%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Government Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $13,348)** | 13348445 | $13348 |
| **Total Investments (99.8%) (Cost $299,442) (c)(d)** | **Total Investments (99.8%) (Cost $299,442) (c)(d)** | 285966 |
| Other Assets in Excess of Liabilities (0.2%) | Other Assets in Excess of Liabilities (0.2%) | 633 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $286599 |

---

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

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) The approximate fair value and percentage of net assets, $215,916,000 and 75.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(d) At December 31, 2022 the aggregate cost for federal income tax purposes is approximately $310,038,000. The aggregate gross unrealized appreciation is approximately $10,519,000 and the aggregate gross unrealized depreciation is approximately $35,919,000, resulting in net unrealized depreciation of approximately $25,400,000.

ADR American Depositary Receipt.

**Portfolio Composition**

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| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Other\* | 30.9% |
| Textiles, Apparel & Luxury Goods | 14.9 |
| Banks | 14.1 |
| Internet & Direct Marketing Retail | 10.3 |
| Consumer Finance | 8.7 |
| Information Technology Services | 8.6 |
| Electrical Equipment | 7.1 |
| Diversified Financial Services | 5.4 |
| 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.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Leaders Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $286,094) | $272618 |
| Investment in Security of Affiliated Issuer, at Value (Cost $13,348) | 13348 |
| Total Investments in Securities, at Value (Cost $299,442) | 285966 |
| Foreign Currency, at Value (Cost —@) |  |
| Receivable for Fund Shares Sold | 2769 |
| Dividends Receivable | 75 |
| Receivable from Affiliate | 48 |
| Tax Reclaim Receivable | 7 |
| Other Assets | 82 |
| **Total Assets** | 288947 |
| **Liabilities:** | **Liabilities:** |
| Deferred Capital Gain Country Tax | 1335 |
| Payable for Advisory Fees | 409 |
| Payable for Fund Shares Redeemed | 405 |
| Payable for Professional Fees | 75 |
| Payable for Custodian Fees | 47 |
| Payable for Sub Transfer Agency Fees — Class I | 22 |
| Payable for Sub Transfer Agency Fees — Class A | 2 |
| Payable for Sub Transfer Agency Fees — Class C | 1 |
| Payable for Administration Fees | 20 |
| Payable for Distribution and Shareholder Services Fees — Class C | 4 |
| Payable for Shareholder Services Fees — Class A | 3 |
| Payable for Transfer Agency Fees — Class I | 1 |
| Payable for Transfer Agency Fees — Class A | 1 |
| Payable for Transfer Agency Fees — Class C | 1 |
| Payable for Transfer Agency Fees — Class R6\* | 1 |
| Payable for Transfer Agency Fees — Class IR |  |
| Other Liabilities | 21 |
| **Total Liabilities** | 2348 |
| **Net Assets** | $286599 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $396540 |
| Total Accumulated Loss | (109941 |
| **Net Assets** | $286599 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Leaders Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $259940 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 19767209 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.15 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $13113 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1020891 |
| **Net Asset Value, Redemption Price Per Share** | $12.84 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.71 |
| **Maximum Offering Price Per Share** | $13.55 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $4179 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 343256 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $12.17 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $9360 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 709541 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.19 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $7 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 517 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.18 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Leaders Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $230 of Foreign Taxes Withheld) | $1812 |
| Dividends from Security of Affiliated Issuer (Note G) | 277 |
| Total Investment Income | 2089 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 2855 |
| Sub Transfer Agency Fees — Class I | 260 |
| Sub Transfer Agency Fees — Class A | 18 |
| Sub Transfer Agency Fees — Class C | 3 |
| Administration Fees (Note C) | 263 |
| Professional Fees | 225 |
| Custodian Fees (Note F) | 217 |
| Registration Fees | 202 |
| Shareholder Services Fees — Class A (Note D) | 42 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 53 |
| Shareholder Reporting Fees | 72 |
| Transfer Agency Fees — Class I (Note E) | 10 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 4 |
| Transfer Agency Fees — Class IR (Note E) | 1 |
| Directors' Fees and Expenses | 9 |
| Pricing Fees | 2 |
| Other Expenses | 22 |
| Total Expenses | 4263 |
| Waiver of Advisory Fees (Note B) | (316) |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (21) |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (4) |
| Reimbursement of Class Specific Expenses — Class IR (Note B) | (1) |
| Rebate from Morgan Stanley Affiliate (Note G) | (22) |
| Net Expenses | 3899 |
| **Net Investment Loss** | (1810) |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold (Net of $1,362 of Capital Gain Country Tax) | (76480) |
| Foreign Currency Translation | (345) |
| Net Realized Loss | (76825) |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Decrease in Deferred Capital Gain Country Tax of $1,452) | (68563) |
| Foreign Currency Translation | (8) |
| Net Change in Unrealized Appreciation (Depreciation) | (68571) |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (145396) |
| Net Decrease in Net Assets Resulting from Operations | $(147206) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Leaders Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(1810) | $(2586 |
| Net Realized Loss | (76825) | (17779 |
| Net Change in Unrealized Appreciation (Depreciation) | (68571) | 10560 |
| Net Decrease in Net Assets Resulting from Operations | (147206) | (9805 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** |  | (264 |
| **Class A** |  | (22 |
| **Class C** |  | (7 |
| **Class R6\*** |  | (34 |
| **Class IR** |  | (— |
| Total Dividends and Distributions to Shareholders |  | (327 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 282397 | 380088 |
| Distributions Reinvested |  | 260 |
| Redeemed | (234633) | (112693 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 6849 | 31404 |
| Distributions Reinvested |  | 22 |
| Redeemed | (10722) | (13039 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 976 | 7286 |
| Distributions Reinvested |  | 7 |
| Redeemed | (2298) | (2119 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 65 | 13947 |
| Distributions Reinvested |  | 34 |
| Redeemed | (22927) | (14 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Subscribed |  | 10 |
| Distributions Reinvested |  |  |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 19707 | 305193 |
| Redemption Fees | 9 | 13 |
| Total Increase (Decrease) in Net Assets | (127490) | 295074 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 414089 | 119015 |
| End of Period | $286599 | $414089 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Leaders Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 18586 | 18584 |
| Shares Issued on Distributions Reinvested |  | 14 |
| Shares Redeemed | (15973) | (5584 |
| Net Increase in Class I Shares Outstanding | 2613 | 13014 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 459 | 1530 |
| Shares Issued on Distributions Reinvested |  | 1 |
| Shares Redeemed | (730) | (654 |
| Net Increase (Decrease) in Class A Shares Outstanding | (271) | 877 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 69 | 372 |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (170) | (112 |
| Net Increase (Decrease) in Class C Shares Outstanding | (101) | 260 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 5 | 704 |
| Shares Issued on Distributions Reinvested |  | 2 |
| Shares Redeemed | (1400) | (1 |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (1395) | 705 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Subscribed |  | 1 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class IR Shares Outstanding |  | 1 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(a) For the period April 12, 2021 to December 31, 2021.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Leaders Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.77 | $19.43 | $12.70 | $10.38 | $12.14 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | (0.08) | (0.19) | (0.11) | (0.02) | 0.03 |
| Net Realized and Unrealized Gain (Loss) | (6.54) | 0.55 | 7.62 | 2.78 | (1.74) |
| Total from Investment Operations | (6.62) | 0.36 | 7.51 | 2.76 | (1.71) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.01) |
| Net Realized Gain |  | (0.02) | (0.78) | (0.44) | (0.04) |
| Total Distributions |  | (0.02) | (0.78) | (0.44) | (0.05) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $13.15 | $19.77 | $19.43 | $12.70 | $10.38 |
| **Total Return<sup>(3)</sup>** | (33.49)% | 1.84% | 59.36% | 26.63% | (14.12)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $259940 | $339152 | $80465 | $32651 | $39206 |
| Ratio of Expenses Before Expense Limitation | 1.27% | 1.23% | 1.47% | 1.57% | 1.48% |
| Ratio of Expenses After Expense Limitation | 1.15%<sup>(4)(5)</sup> | 1.18%<sup>(4)</sup> | 1.15%<sup>(4)</sup> | 1.17%<sup>(4)</sup> | 1.17%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 1.18%<sup>(4)</sup> | N/A | 1.16%<sup>(4)</sup> | 1.16%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | (0.50)%<sup>(4)</sup> | (0.92)%<sup>(4)</sup> | (0.73)%<sup>(4)</sup> | (0.14)%<sup>(4)</sup> | 0.29%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 62% | 27% | 57% | 58% | 47% |

---

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

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

(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) Effective October 1, 2022, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.05% for Class I shares. Prior to October 1, 2022, the maximum ratio was 1.20% for Class I shares.

(6) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Leaders Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.37 | $19.09 | $12.53 | $10.29 | $12.06 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(1)</sup> | (0.12) | (0.24) | (0.17) | (0.05) | (0.00)<sup>(2)</sup> |
| Net Realized and Unrealized Gain (Loss) | (6.41) | 0.54 | 7.51 | 2.73 | (1.73) |
| Total from Investment Operations | (6.53) | 0.30 | 7.34 | 2.68 | (1.73) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain |  | (0.02) | (0.78) | (0.44) | (0.04) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $12.84 | $19.37 | $19.09 | $12.53 | $10.29 |
| **Total Return<sup>(3)</sup>** | (33.71)% | 1.56% | 58.81% | 26.08% | (14.41)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $13113 | $25015 | $7925 | $1191 | $1024 |
| Ratio of Expenses Before Expense Limitation | 1.55% | 1.52% | 1.82% | 2.04% | 1.93% |
| Ratio of Expenses After Expense Limitation | 1.45%<sup>(4)(5)</sup> | 1.47%<sup>(4)</sup> | 1.50%<sup>(4)</sup> | 1.55%<sup>(4)</sup> | 1.55%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 1.47%<sup>(4)</sup> | N/A | 1.54%<sup>(4)</sup> | 1.54%<sup>(4)</sup> |
| Ratio of Net Investment Loss | (0.83)%<sup>(4)</sup> | (1.21)%<sup>(4)</sup> | (1.13)%<sup>(4)</sup> | (0.45)%<sup>(4)</sup> | (0.04)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 62% | 27% | 57% | 58% | 47% |

---

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

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

(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) Effective October 1, 2022, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.40% for Class A shares. Prior to October 1, 2022, the maximum ratio was 1.55% for Class A shares.

(6) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Leaders Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.49 | $18.37 | $12.17 | $10.08 | $11.90 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(1)</sup> | (0.22) | (0.38) | (0.27) | (0.13) | (0.09) |
| Net Realized and Unrealized Gain (Loss) | (6.10) | 0.52 | 7.25 | 2.66 | (1.69) |
| Total from Investment Operations | (6.32) | 0.14 | 6.98 | 2.53 | (1.78) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain |  | (0.02) | (0.78) | (0.44) | (0.04) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $12.17 | $18.49 | $18.37 | $12.17 | $10.08 |
| **Total Return<sup>(3)</sup>** | (34.18)% | 0.75% | 57.59% | 25.14% | (15.02)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4179 | $8220 | $3395 | $1007 | $780 |
| Ratio of Expenses Before Expense Limitation | 2.28% | 2.29% | 2.63% | 2.82% | 2.75% |
| Ratio of Expenses After Expense Limitation | 2.17%<sup>(4)(5)</sup> | 2.24%<sup>(4)</sup> | 2.29%<sup>(4)</sup> | 2.30%<sup>(4)</sup> | 2.30%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 2.24%<sup>(4)</sup> | N/A | 2.29%<sup>(4)</sup> | 2.29%<sup>(4)</sup> |
| Ratio of Net Investment Loss | (1.56)%<sup>(4)</sup> | (1.98)%<sup>(4)</sup> | (1.88)%<sup>(4)</sup> | (1.18)%<sup>(4)</sup> | (0.83)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 62% | 27% | 57% | 58% | 47% |

---

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

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

(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) Effective October 1, 2022, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.15% for Class C shares. Prior to October 1, 2022, the maximum ratio was 2.30% for Class C shares.

(6) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Leaders Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.81 | $19.45 | $12.71 | $10.38 | $12.14 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | (0.09) | (0.17) | (0.09) | 0.00<br><sup>(3)</sup> | 0.04 |
| Net Realized and Unrealized Gain (Loss) | (6.53) | 0.55 | 7.61 | 2.77 | (1.74) |
| Total from Investment Operations | (6.62) | 0.38 | 7.52 | 2.77 | (1.70) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.02) |
| Net Realized Gain |  | (0.02) | (0.78) | (0.44) | (0.04) |
| Total Distributions |  | (0.02) | (0.78) | (0.44) | (0.06) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $13.19 | $19.81 | $19.45 | $12.71 | $10.38 |
| **Total Return<sup>(4)</sup>** | (33.42)% | 1.94% | 59.39% | 26.73% | (14.03)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $9360 | $41692 | $27230 | $19838 | $12779 |
| Ratio of Expenses Before Expense Limitation | 1.20% | 1.16% | 1.42% | 1.53% | 1.44% |
| Ratio of Expenses After Expense Limitation | 1.08%<sup>(5)(6)</sup> | 1.10%<sup>(5)</sup> | 1.09%<sup>(5)</sup> | 1.10%<sup>(5)</sup> | 1.10%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 1.10%<sup>(5)</sup> | N/A | 1.09%<sup>(5)</sup> | 1.09%<sup>(5)</sup> |
| Ratio of Net Investment Income (Loss) | (0.59)%<sup>(5)</sup> | (0.84)%<sup>(5)</sup> | (0.65)%<sup>(5)</sup> | 0.00%<sup>(5)(7)</sup> | 0.38%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 62% | 27% | 57% | 58% | 47% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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."

(6) Effective October 1, 2022, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class R6 shares. Prior to October 1, 2022, the maximum ratio was 1.10% for Class R6 shares.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Leaders Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class IR** | **Class IR** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended <br>December 31, 2022** | **Period from <br>April 12, 2021<sup>(1)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $19.81 | $19.37 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.07) | (0.12) |
| Net Realized and Unrealized Gain (Loss) | (6.56) | 0.58 |
| Total from Investment Operations | (6.63) | 0.46 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain |  | (0.02) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $13.18 | $19.81 |
| **Total Return<sup>(4)</sup>** | (33.47)% | 2.36%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $7 | $10 |
| Ratio of Expenses Before Expense Limitation | 11.47% | 14.15%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 1.08%<sup>(5)(6)</sup> | 1.10%<sup>(5)(9)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 1.10%<sup>(5)(9)</sup> |
| Ratio of Net Investment Loss | (0.44)%<sup>(5)</sup> | (0.80)%<sup>(5)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(7)(9)</sup> |
| Portfolio Turnover Rate | 62% | 27% |

---

(1) Commencement of Offering.

(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) 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."

(6) Effective October 1, 2022, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class IR shares. Prior to October 1, 2022, the maximum ratio was 1.10% for Class IR shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Emerging Markets Leaders Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class C, Class R6 and Class IR. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; and (6) investments in mutual funds, including the

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Automobiles | $— | $5496 | $— | $5496 |
| Banks | 9187 | 31252 |  | 40439 |
| Capital Markets |  | 5725 |  | 5725 |
| Chemicals |  | 12525 |  | 12525 |
| Consumer Finance |  | 25015 |  | 25015 |
| Diversified Financial <br>Services |  | 15344 |  | 15344 |
| Electrical Equipment |  | 20220 |  | 20220 |
| Food & Staples Retailing |  | 4569 |  | 4569 |
| Household Durables |  | 8253 |  | 8253 |
| Information Technology <br>Services | 24494 |  |  | 24494 |
| Internet & Direct <br>Marketing Retail | 21443 | 7889 |  | 29332 |
| Personal Products |  | 12836 |  | 12836 |
| Pharmaceuticals |  | 1578 |  | 1578 |
| Semiconductors & <br>Semiconductor <br>Equipment |  | 9409 |  | 9409 |
| Software |  | 11200 |  | 11200 |
| Specialty Retail |  | 3453 |  | 3453 |
| Textiles, Apparel & Luxury <br>Goods |  | 42730 |  | 42730 |
| **Total Common Stocks** | **55124** | **217494** | **—** | **272618** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 13348 |  |  | 13348 |
| **Total Assets** | $**68472** | $**217494** | $**—** | $**285966** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 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 U.S. 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. Redemption Fees:** The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares, Class R6 shares and Class IR shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

**5. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.90% | 0.85% |

---

Effective after close of business on September 30, 2022, the Adviser 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<br>billion** | **Over $1<br>billion** |
| 0.75% | 0.70% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.76% 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 1.20% for Class I shares, 1.55% for Class A shares, 2.30% for Class C shares, 1.10% for Class R6 shares and 1.10% for Class IR shares. Effective after close of business on September 30, 2022, the Adviser has agreed to reduce its

advisory fee and/or reimburse the Fund so that total annual Fund operating expenses will not exceed 1.05% for Class I shares, 1.40% for Class A shares, 2.15% for Class C shares, 1.00% for Class R6 shares and 1.00% for Class IR 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $316,000 of advisory fees were waived and approximately $26,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $224,780,000 and $194,355,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended

December 31, 2022, advisory fees paid were reduced by approximately $22,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $30172 | $221964 | $238788 | $277 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $13348 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $— | $204 | $123 |

---

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 December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $1605 | $(1605) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital

losses of approximately $58,380,000 and $26,028,000 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 64.4%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Emerging Markets Leaders Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Emerging Markets Leaders Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j2327928_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since <br>February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since <br>February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September 2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November 2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Company<br>23 Church Street<br>16-01 Capital Square, Singapore 049481

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327928_za006.jpg)

IFIEMLANN<br>5437968 EXP 02.29.24

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![](j2327929_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Portfolio

Annual Report

December 31, 2022

![](j2327929_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 10 |
| Statement of Operations | 12 |
| Statements of Changes in Net Assets | 13 |
| Financial Highlights | 15 |
| Notes to Financial Statements | 21 |
| Report of Independent Registered Public Accounting Firm | 30 |
| Liquidity Risk Management Program | 31 |
| Federal Tax Notice | 32 |
| U.S. Customer Privacy Notice | 33 |
| Director 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 Morgan Stanley Institutional Fund, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j2327929_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Emerging Markets Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 December 31, 2022 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) and redemption fees. 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Emerging Markets Portfolio Class I | $1000.00 | $1016.20 | $1019.91 | $5.34 | $5.35 | 1.05% |
| Emerging Markets Portfolio Class A | 1000.00 | 1014.40 | 1018.25 | 7.01 | 7.02 | 1.38 |
| Emerging Markets Portfolio Class L | 1000.00 | 1012.10 | 1015.63 | 9.64 | 9.65 | 1.90 |
| Emerging Markets Portfolio Class C | 1000.00 | 1010.40 | 1014.37 | 10.89 | 10.92 | 2.15 |
| Emerging Markets Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1017.00 | 1020.42 | 4.83 | 4.84 | 0.95 |
| Emerging Markets Portfolio Class IR | 1000.00 | 1017.00 | 1020.42 | 4.83 | 4.84 | 0.95 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Emerging Markets Portfolio**

The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of issuers in emerging market countries.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –25.06%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI Emerging Markets Index (the "Index"), which returned –20.09%.

**Factors Affecting Performance**

• Emerging markets (EM) equities, as measured by the Index, posted a strong absolute return in the fourth quarter of 2022, notably outperforming U.S. equities (as measured by the S&P 500 Index).<sup>(i)</sup> However, the EM asset class underwent a tough 2022, with the Index falling -20% in 2022 — including an equity drawdown that matched levels last seen during the Global Financial Crisis in 2008, and previously during the Asian Financial Crisis of the late 1990s and dot-com bubble burst in 2000. Equities suffered from volatility driven by a combination of: the Federal Reserve's tightening cycle, which has dampened the performance of high growth and indebted companies; Russia's invasion of Ukraine and its contribution to already high energy and food prices; China's mixed policy signals and broader economic slowdown; and ongoing supply disruptions as countries seek to increase the domestic or allied production of critical technologies.

• In many ways, though, the fourth quarter of 2022 appeared to show signs of the improving growth factors in much of emerging markets, which should help shift investor demand in favor of EM equities after years of underperforming developed markets. It is also a noteworthy break from past trends that in a year when Index-dominant China further slowed economically and underperformed the overall EM Index, many countries outperformed, including India, Mexico, South Africa and Brazil, among others. Domestic sources of growth, as these

countries continued to emerge from the pandemic, and global themes, such as the energy transition toward meeting decarbonization goals, both contributed to supporting the performance of the materials, industrials, communications services and health care sectors at the end of 2022.

• Over the one-year period, the Fund's overweight to and stock selection in the information technology sector detracted from relative performance. Allocations to semiconductors and semiconductor equipment companies detracted as the semiconductors industry sold off sharply in 2022 (–33%)<sup>(ii)</sup> on recession concerns and slowing demand.

• Allocations to select Russian and Eastern European companies held earlier in 2022 detracted from relative performance following Russia's invasion of Ukraine in the first quarter of 2022, with a retail chain operator, an internet search engine and a digital bank among the largest detractors from performance. A Polish retailer and an IT services company also underperformed as they suffered from a contagion sell-off. We have since fully exited the positions in Russia.

• Positioning in Brazil detracted from relative performance. Brazil ended the year as the third best performing emerging market, after rallying in the first and third quarters of 2022. In the fourth quarter, allocations in Brazil particularly detracted as the market underperformed on investor concerns about the incoming Lula administration's spending plans. We have long maintained that the micro reforms implemented since 2016 and the counterweight of the center-right congress should serve to restrain some of these spending plans. The Central Bank of Brazil was among the most aggressive EM central banks in raising rates to fight inflation; at some point, even if delayed longer than initially hoped by investors, Brazil and other central banks will likely be in a position to cut rates, potentially even ahead of when the Federal Reserve eventually does. Given our constructive view on the improving macro environment, we are confident in

<sup>(i)</sup> The S&P 500 Index measures the performance of the large-cap segment of the U.S. equities market, covering approximately 80% of the U.S. equities market. The Index includes 500 leading companies in leading industries of the U.S. economy. The S&P Index is one of the most widely used benchmarks of U.S. equity performance. The index is unmanaged and does not include any expenses, fees or sales charges. It is not possible to invest directly in an index.

<sup>(ii)</sup> Performance based on MSCI Emerging Markets Index sector/subsector performance. Data as of December 31, 2022.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Emerging Markets Portfolio**

our stock selection within Brazil and continue to monitor both the macro and company-specific factors as we make adjustments in the portfolio.

• Zero allocation to the Gulf Cooperation Council (GCC) region — Saudi Arabia, Qatar, the United Arab Emirates and Kuwait — detracted from relative performance. With the sharp increase in oil prices in 2022, GCC countries had performed strongly through the third quarter. We did not participate in these markets in 2022 as this rally was largely owing to exogenous forces: rising oil prices, as well as the strong dollar and low interest rates. These former tailwinds have now become headwinds and the region's markets have reversed previous gains. We are analyzing potential opportunities meeting our quality growth criteria and will assess market attractiveness as such headwinds ease.

• The overweight allocation to and stock selection in India contributed to relative performance, driven by allocations to financials. Our portfolio positioning in India includes several themes: digitization, increase in health care spending, and manufacturing benefiting from a combination of onshoring, incentives for large-scale production and global companies seeking a so-called China plus one outsourcing strategy.

• The stock selection in and overweight allocation to Mexico contributed to relative performance, led by the allocation to one of the country's largest banks. Mexico has emerged from the pandemic in a better macroeconomic position than it entered, with strong growth in both real and nominal terms. The country's economy should continue to benefit from trade and economic links with major trading partner, the United States. The Lopez Obrador administration has shown fiscal rectitude, even if the state has increased its role in the oil and electricity sectors.

• The allocation to a Panama-based airline contributed as the company has seen a strong recovery in passenger volume and yields while operating margins continue to improve. The company has been able to gain market share as other operators struggled to navigate their business operations through the pandemic.

• From a sector perspective, stock selection in energy and materials contributed, as did the overweight to financials. Allocations to green commodities producers including platinum group metals and copper producers and oil and gas players added to performance.

**Management Strategies**

• We believe our portfolio is well positioned in the future leaders of emerging markets returns. Even if the Federal Reserve and individual central banks are able to slow down tight monetary policy, we do not expect markets to mean-revert to the extremely high growth stock leaders of the past. We continue to have exposure to resilient, domestic sources of growth and in global themes benefiting from the energy transition toward meeting decarbonization goals. We maintain our overweight to financials — in select countries with strong balance sheets and where credit demand is recovering; in select materials, such as aluminum, copper and platinum, related to energy transition; in select quality, well-managed energy names; in consumer staples that meet our quality growth criteria; and with overweights in countries such as India, Brazil, Mexico and Indonesia, which are benefiting from some element of themes such as recovery and growing demand for credit, continued high prices for select materials and the trend toward increased local and regional manufacturing of strategic industries.

• We maintain our overweight to India on its secular growth driven by a low base, supportive demographics (the opposite of China's aging population), supply-side investments particularly in manufacturing, and continued benefits from a rapid shift to digitization. India still faces some medium-term headwinds from high oil prices (as a net importer) and the continued strong dollar, but we have high conviction in the quality of the companies we own and their ability to deliver on earnings.

• We continue to own certain commodity companies where years of under-investment, medium-term supply constraints and rising green demand dynamics are attractive.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Emerging Markets Portfolio**

• Select financials are benefiting from the continued rise in interest rates in certain countries; banks with effective fintech strategies will likely be the beneficiaries of rising demand for credit at greater profitability. We remain positive on banks we hold in South Africa and Brazil. Financials are our largest overweight on a sector basis.

• Overarching our high conviction in these individual names, we are constructive on the improving growth macro factors that may help shift investor demand in favor of emerging markets as an asset class. Key among the catalysts to support improved returns for EM equities are:

o A post-COVID recovery led by credit creation after a period of deleveraging;

o A manufacturing revival in certain markets led by a "China plus one" strategy driving reshoring and friend-shoring;

o A continuation of the commodity boom driven by decarbonization, which is resource-intensive and benefits resource-rich economies;

o A digitization-led productivity and growth boost across most EM regions;

o A favorable political and reform cycle in several pockets of EM.

• Favorable political and reform cycles have taken place in several areas of EM, including India and Indonesia, and will likely continue to be a positive catalyst in coming quarters. Earnings revisions began to shift upward during the fourth quarter 2022 for many sectors, and we believe this should continue to serve as a catalyst for equity investors, particularly as developed markets, mostly the U.S., begin to revise down corporate earnings in coming quarters. And after years of currency weakness relative to the U.S. dollar, which has continuously strengthened over the years, individual currencies, such as those of Brazil, Mexico, Chile and Korea, have begun to recover in a reflection of their healthy current account status and improving growth. We believe our portfolio is well positioned to continue to capture the excess return potential in EM in the year ahead from active country allocation, select thematic investments in certain sectors and high conviction stock selection.

![](j2327929_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Emerging Markets Portfolio**

**Performance Compared to the MSCI Emerging Markets Index** **<sup>(1)</sup>** **and the Lipper Emerging Markets Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(10)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –25.06% | –2.57% | 0.72% | 6.35% |
| Fund — Class A Shares <br>w/o sales charges<sup>(5)</sup> | –25.31 | –2.87 | 0.41 | 5.23 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(5)</sup> | –29.23 | –3.92 | –0.13 | 5.02 |
| Fund — Class L Shares <br>w/o sales charges<sup>(6)</sup> | –25.68 | –3.40 | –0.13 | 0.44 |
| Fund — Class C Shares <br>w/o sales charges<sup>(8)</sup> | –25.89 | –3.64 |  | –0.54 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(8)</sup> | –26.61 | –3.64 |  | –0.54 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(7)</sup> | –24.98 | –2.46 |  | 1.16 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(9)</sup> | –24.98 |  |  | –1.35 |
| MSCI Emerging Markets Index | –20.09 | –1.40 | 1.44 | 6.39 |
| Lipper Emerging Market <br>Funds Index | –22.34 | –1.13 | 1.67 | N/A |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI Emerging Markets Index currently consists of 24 emerging market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Returns, including periods prior to January 1, 2001, are calculated using the return data of the MSCI Emerging Markets Index (gross dividends) through December 31, 2000 and the return data of the MSCI Emerging Markets Net Index (net dividends) after December 31, 2000. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on September 25, 1992.

<sup>(5)</sup> Commenced offering on January 2, 1996.

<sup>(6)</sup> Commenced offering on April 27, 2012.

<sup>(7)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(8)</sup> Commenced offering on April 30, 2015.

<sup>(9)</sup> Commenced offering on June 15, 2018.

<sup>(10)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Emerging Markets Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (100.1%)** | **Common Stocks (100.1%)** | **Common Stocks (100.1%)** |
| Brazil (6.6%) | Brazil (6.6%) | Brazil (6.6%) |
| Banco BTG Pactual SA (Units) | 946239 | $4280 |
| Cia Brasileira de Aluminio | 999549 | 2155 |
| Itau Unibanco Holding SA (Preference) | 2061055 | 9762 |
| Lojas Renner SA | 1704129 | 6605 |
| Petroleo Brasileiro SA (Preference) | 1069726 | 4963 |
| Raia Drogasil SA | 828704 | 3732 |
|  |  | 31497 |
| China (21.2%) | China (21.2%) | China (21.2%) |
| Alibaba Group Holding Ltd. (a)(b) | 698100 | 7660 |
| BYD Co., Ltd. H Shares (b) | 202500 | 4968 |
| China Construction Bank Corp. H Shares (b) | 16798120 | 10505 |
| China Mengniu Dairy Co., Ltd. (a)(b) | 1528000 | 6890 |
| China Merchants Bank Co., Ltd. H Shares (b) | 1064500 | 5891 |
| China Resources Beer Holdings Co., Ltd. (b) | 950000 | 6608 |
| China Tourism Group Duty Free Corp. Ltd. (a)(b) | 97300 | 2852 |
| Hua Hong Semiconductor Ltd. (a)(b)(c) | 313000 | 1085 |
| JD.com, Inc., Class A (b) | 107123 | 2991 |
| Jiangsu Hengrui Pharmaceuticals Co., Ltd., <br>Class A | 432759 | 2393 |
| Kweichow Moutai Co., Ltd., Class A | 21749 | 5380 |
| Li Ning Co., Ltd. (b) | 469000 | 4033 |
| Meituan, Class B (a)(b) | 159700 | 3538 |
| NARI Technology Co. Ltd., Class A | 619400 | 2165 |
| Postal Savings Bank of China Co. Ltd. (b) | 7668000 | 4745 |
| Proya Cosmetics Co. Ltd., Class A | 102720 | 2472 |
| Shenzhou International Group Holdings Ltd. (b) | 509900 | 5686 |
| Sungrow Power Supply Co. Ltd., Class A | 206395 | 3312 |
| Tencent Holdings Ltd. (b) | 354600 | 15035 |
| Will Semiconductor Co. Ltd. Shanghai | 56025 | 620 |
| Zijin Mining Group Co., Ltd. H Shares (b) | 1978000 | 2658 |
|  |  | 101487 |
| Czech Republic (0.4%) | Czech Republic (0.4%) | Czech Republic (0.4%) |
| Komercni Banka AS | 75595 | 2185 |
| Germany (0.7%) | Germany (0.7%) | Germany (0.7%) |
| Infineon Technologies AG | 106035 | 3223 |
| India (22.7%) | India (22.7%) | India (22.7%) |
| Bajaj Auto Ltd. | 119845 | 5226 |
| Delhivery Ltd. (a) | 599448 | 2401 |
| Eicher Motors Ltd. | 78283 | 3044 |
| Gland Pharma Ltd. (a) | 71656 | 1364 |
| HDFC Bank Ltd. ADR | 160953 | 11011 |
| Hindalco Industries Ltd. | 1451379 | 8297 |
| Housing Development Finance Corp., Ltd. | 175786 | 5588 |
| ICICI Bank Ltd. | 1252549 | 13472 |
| ICICI Prudential Life Insurance Co., Ltd. | 583772 | 3176 |
| Infosys Ltd. | 357609 | 6520 |
| Infosys Ltd. ADR | 89133 | 1605 |
| Macrotech Developers Ltd. (a) | 258288 | 3400 |
| Mahindra & Mahindra Financial Services Ltd. | 1574904 | 4455 |
| Mahindra & Mahindra Ltd. | 375621 | 5655 |

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| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| MakeMyTrip Ltd. (a) | 80289 | $| 2214 |
| Max Healthcare Institute Ltd. (a) | 802072 |  | 4253 |
| Reliance Industries Ltd. | 474411 |  | 14565 |
| Star Health & Allied Insurance Co. Ltd. (a) | 326855 |  | 2234 |
| State Bank of India | 1358208 |  | 10044 |
|  |  |  | 108524 |
| Indonesia (3.3%) | Indonesia (3.3%) | Indonesia (3.3%) | Indonesia (3.3%) |
| Bank Central Asia Tbk PT | 11599100 |  | 6360 |
| Bank Mandiri Persero Tbk PT | 8680800 |  | 5536 |
| Bank Rakyat Indonesia Persero Tbk PT | 12451700 |  | 3948 |
|  |  |  | 15844 |
| Korea, Republic of (9.8%) | Korea, Republic of (9.8%) | Korea, Republic of (9.8%) | Korea, Republic of (9.8%) |
| KB Financial Group, Inc. | 144772 |  | 5547 |
| Kia Corp. (a) | 49779 |  | 2342 |
| Korea Zinc Co. Ltd. (a) | 6085 |  | 2727 |
| LG Chem Ltd. (a) | 7220 |  | 3448 |
| Samsung Electronics Co., Ltd. | 513797 |  | 22552 |
| Samsung SDI Co., Ltd. | 9434 |  | 4430 |
| SK Hynix, Inc. | 100537 |  | 5998 |
|  |  |  | 47044 |
| Mexico (4.0%) | Mexico (4.0%) | Mexico (4.0%) | Mexico (4.0%) |
| Gruma SAB de CV, Class B | 56734 |  | 758 |
| Grupo Financiero Banorte SAB de CV Series O | 1332274 |  | 9565 |
| Wal-Mart de Mexico SAB de CV | 2531124 |  | 8947 |
|  |  |  | 19270 |
| Panama (2.0%) | Panama (2.0%) | Panama (2.0%) | Panama (2.0%) |
| Copa Holdings SA, Class A (a) | 115958 |  | 9644 |
| Poland (1.5%) | Poland (1.5%) | Poland (1.5%) | Poland (1.5%) |
| LPP SA | 2988 |  | 7287 |
| Portugal (1.9%) | Portugal (1.9%) | Portugal (1.9%) | Portugal (1.9%) |
| Galp Energia SGPS SA | 668492 |  | 9018 |
| South Africa (6.8%) | South Africa (6.8%) | South Africa (6.8%) | South Africa (6.8%) |
| Anglo American Platinum Ltd. | 82449 |  | 6881 |
| Anglo American PLC | 367165 |  | 14395 |
| AVI Ltd. | 378284 |  | 1676 |
| Capitec Bank Holdings Ltd. | 49709 |  | 5411 |
| Woolworths Holdings Ltd. | 1070129 |  | 4168 |
|  |  |  | 32531 |
| Taiwan (13.8%) | Taiwan (13.8%) | Taiwan (13.8%) | Taiwan (13.8%) |
| Airtac International Group | 254448 |  | 7682 |
| Chailease Holding Co., Ltd. | 640000 |  | 4509 |
| CTBC Financial Holding Co., Ltd. | 6225000 |  | 4467 |
| Delta Electronics, Inc. | 1110000 |  | 10290 |
| Silergy Corp. | 112000 |  | 1582 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 1542205 |  | 22398 |
| Taiwan Semiconductor Manufacturing <br>Co., Ltd. ADR | 181132 |  | 13493 |
| Voltronic Power Technology Corp. | 32000 |  | 1605 |
|  |  |  | 66026 |
| Thailand (0.6%) | Thailand (0.6%) | Thailand (0.6%) | Thailand (0.6%) |
| Ngern Tid Lor PCL | 3244369 |  | 2760 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| United Kingdom (3.4%) | United Kingdom (3.4%) | United Kingdom (3.4%) |
| Antofagasta PLC | 407105 | $7599 |
| Mondi PLC | 504636 | 8631 |
|  |  | 16230 |
| United States (1.4%) | United States (1.4%) | United States (1.4%) |
| EPAM Systems, Inc. (a) | 13908 | 4558 |
| MercadoLibre, Inc. (a) | 2436 | 2062 |
|  |  | 6620 |
| **Total Investments (100.1%) (Cost $435,897)<br>Including $66 of Securities Loaned (d)(e)(f)** | **Total Investments (100.1%) (Cost $435,897)<br>Including $66 of Securities Loaned (d)(e)(f)** | 479190 |
| Liabilities in Excess of Other Assets (–0.1%) | Liabilities in Excess of Other Assets (–0.1%) | (568) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $478622 |

---

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

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) All or a portion of this security was on loan at December 31, 2022.

(d) Securities are available for collateral in connection with open futures contract.

(e) The approximate fair value and percentage of net assets, $415,333,000 and 86.8%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(f) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $438,836,000. The aggregate gross unrealized appreciation is approximately $84,599,000 and the aggregate gross unrealized depreciation is approximately $46,263,000, resulting in net unrealized appreciation of approximately $38,336,000.

ADR American Depositary Receipt.

**Futures Contract:**

The Fund had the following futures contract open at December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of<br>Contracts** | **Expiration<br>Date** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Unrealized<br>Appreciation<br>(000)** |
| **Long:** | **Long:** | **Long:** | **Long:** | **Long:** | **Long:** | **Long:** |
| MSCI China Index (Germany)  | 359 | Mar-23 | EUR | 18 | $8659 | $3 |

---

**Portfolio Composition**

---

| | | |
|:---|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** | **Percentage of<br>Total Investments** |
| Other\* | 53.0 | % |
| Banks | 21.6 |  |
| Semiconductors & Semiconductor Equipment | 10.1 |  |
| Metals & Mining | 9.3 |  |
| Oil, Gas & Consumable Fuels | 6.0 |  |
| Total Investments | 100.0 | %\*\* |

---

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

\*\* Does not include open long futures contract with a value of approximately $8,659,000 and unrealized appreciation of approximately $3,000.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $435,897) | $479190 |  |
| Foreign Currency, at Value (Cost $1,499) | 1519 |  |
| Receivable for Investments Sold | 3407 |  |
| Dividends Receivable | 1172 |  |
| Due from Broker | 1044 |  |
| Tax Reclaim Receivable | 111 |  |
| Receivable for Fund Shares Sold | 58 |  |
| Receivable from Affiliate | 21 |  |
| Receivable for Variation Margin on Futures Contracts | 3 |  |
| Receivable from Securities Lending Income | 3 |  |
| Other Assets | 96 |  |
| **Total Assets** | 486624 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Bank Overdraft | 3368 |  |
| Deferred Capital Gain Country Tax | 3242 |  |
| Payable for Advisory Fees | 865 |  |
| Payable for Investments Purchased | 124 |  |
| Payable for Professional Fees | 100 |  |
| Payable for Fund Shares Redeemed | 79 |  |
| Payable for Custodian Fees | 75 |  |
| Payable for Sub Transfer Agency Fees — Class I | 27 |  |
| Payable for Sub Transfer Agency Fees — Class A | 1 |  |
| Payable for Sub Transfer Agency Fees — Class L |  | @ |
| Payable for Sub Transfer Agency Fees — Class C |  | @ |
| Payable for Administration Fees | 22 |  |
| Payable for Transfer Agency Fees | 10 |  |
| Payable for Transfer Agency Fees — Class I | 7 |  |
| 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 R6\* | 1 |  |
| Payable for Transfer Agency Fees — Class IR |  | @ |
| Payable for Shareholder Services Fees — Class A | 1 |  |
| Payable for Distribution and Shareholder Services Fees — Class L |  | @ |
| Payable for Distribution and Shareholder Services Fees — Class C |  | @ |
| Other Liabilities | 79 |  |
| **Total Liabilities** | 8002 |  |
| **Net Assets** | $478622 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $440110 |  |
| Total Distributable Earnings | 38512 |  |
| **Net Assets** | $478622 |  |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $145218 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 7961478 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $18.24 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $4978 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 281217 |
| **Net Asset Value, Redemption Price Per Share** | $17.70 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.98 |
| **Maximum Offering Price Per Share** | $18.68 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $169 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 9839 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $17.20 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $338 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 19756 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $17.12 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $327910 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 17991131 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $18.23 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $9 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 503 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $18.23 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $66 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $1,897 of Foreign Taxes Withheld) | $14873 |
| Dividends from Security of Affiliated Issuer (Note G) | 192 |
| Income from Securities Loaned — Net | 36 |
| Total Investment Income | 15101 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 4677 |
| Administration Fees (Note C) | 446 |
| Custodian Fees (Note F) | 306 |
| Professional Fees | 254 |
| Sub Transfer Agency Fees — Class I | 183 |
| Sub Transfer Agency Fees — Class A | 8 |
| Sub Transfer Agency Fees — Class L |  |
| Sub Transfer Agency Fees — Class C |  |
| Registration Fees | 92 |
| Transfer Agency Fees — Class I (Note E) | 36 |
| Transfer Agency Fees — Class A (Note E) | 4 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 5 |
| Transfer Agency Fees — Class IR (Note E) | 2 |
| Shareholder Reporting Fees | 52 |
| Shareholder Services Fees — Class A (Note D) | 17 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 2 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 3 |
| Directors' Fees and Expenses | 12 |
| Pricing Fees | 6 |
| Interest Expenses | 6 |
| Other Expenses | 35 |
| Total Expenses | 6151 |
| Waiver of Advisory Fees (Note B) | (580 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (18 |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (5 |
| Reimbursement of Class Specific Expenses — Class IR (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (16 |
| Net Expenses | 5526 |
| **Net Investment Income** | 9575 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold (Net of $381 of Capital Gain Country Tax) | (3234 |
| Foreign Currency Translation | (564 |
| Futures Contracts | (1 |
| Net Realized Loss | (3799 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Increase in Deferred Capital Gain Country Tax of $168) | (184782 |
| Foreign Currency Translation | 16 |
| Futures Contracts | 3 |
| Net Change in Unrealized Appreciation (Depreciation) | (184763 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (188562 |
| Net Decrease in Net Assets Resulting from Operations | $(178987 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $9575 | $5140 |
| Net Realized Gain (Loss) | (3799 | 108608 |
| Net Change in Unrealized Appreciation (Depreciation) | (184763 | (86450 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (178987 | 27298 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (6848 | (22807 |
| **Class A** | (201 | (742 |
| **Class L** | (6 | (18 |
| **Class C** | (12 | (33 |
| **Class R6\*** | (14433 | (36896 |
| **Class IR** | (— | (1 |
| Total Dividends and Distributions to Shareholders | (21500 | (60497 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 45456 | 44505 |
| Distributions Reinvested | 6598 | 22052 |
| Redeemed | (104883 | (95980 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 1280 | 3724 |
| Distributions Reinvested | 200 | 740 |
| Redeemed | (3295 | (2711 |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 90 | 38 |
| Distributions Reinvested | 6 | 18 |
| Redeemed | (93 | (26 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 176 | 579 |
| Distributions Reinvested | 12 | 33 |
| Redeemed | (265 | (589 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 22440 | 37143 |
| Distributions Reinvested | 14433 | 36896 |
| Redeemed | (25180 | (52934 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Distributions Reinvested |  | 1 |
| Net Decrease in Net Assets Resulting from Capital Share Transactions | (43025 | (6511 |
| Redemption Fees |  |  |
| Total Decrease in Net Assets | (243512 | (39710 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 722134 | 761844 |
| End of Period | $478622 | $722134 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 2275 | 1578 |
| Shares Issued on Distributions Reinvested | 365 | 890 |
| Shares Redeemed | (5388 | (3409 |
| Net Decrease in Class I Shares Outstanding | (2748 | (941 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 61 | 138 |
| Shares Issued on Distributions Reinvested | 12 | 31 |
| Shares Redeemed | (165 | (98 |
| Net Increase (Decrease) in Class A Shares Outstanding | (92 | 71 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 5 | 1 |
| Shares Issued on Distributions Reinvested |  | 1 |
| Shares Redeemed | (5 | (1 |
| Net Increase (Decrease) in Class L Shares Outstanding |  | 1 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 9 | 22 |
| Shares Issued on Distributions Reinvested | 1 | 1 |
| Shares Redeemed | (12 | (22 |
| Net Increase (Decrease) in Class C Shares Outstanding | (2 | 1 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 1115 | 1306 |
| Shares Issued on Distributions Reinvested | 799 | 1490 |
| Shares Redeemed | (1217 | (1904 |
| Net Increase in Class R6 Shares Outstanding | 697 | 892 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $25.44 | $26.85 | $23.69 | $22.53 | $27.95 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.34 | 0.17 | 0.13 | 0.41 | 0.28 |
| Net Realized and Unrealized Gain (Loss) | (6.72) | 0.73 | 3.32 | 3.92 | (5.15) |
| Total from Investment Operations | (6.38) | 0.90 | 3.45 | 4.33 | (4.87) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.15) | (0.46) | (0.14) | (0.18) | (0.35) |
| Net Realized Gain | (0.67) | (1.85) | (0.15) | (2.99) | (0.20) |
| Total Distributions | (0.82) | (2.31) | (0.29) | (3.17) | (0.55) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $18.24 | $25.44 | $26.85 | $23.69 | $22.53 |
| **Total Return<sup>(3)</sup>** | (25.06)% | 3.55% | 14.58% | 19.44% | (17.32)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $145218 | $272406 | $312834 | $277114 | $229132 |
| Ratio of Expenses Before Expense Limitation | 1.16% | 1.09% | 1.10% | 1.16% | N/A |
| Ratio of Expenses After Expense Limitation | 1.05%<sup>(4)</sup> | 1.05%<sup>(4)</sup> | 1.05%<sup>(4)</sup> | 1.05%<sup>(4)</sup> | 1.03%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.05%<sup>(4)</sup> | 1.05%<sup>(4)</sup> | 1.05%<sup>(4)</sup> | 1.05%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 1.68%<sup>(4)</sup> | 0.61%<sup>(4)</sup> | 0.58%<sup>(4)</sup> | 1.69%<sup>(4)</sup> | 1.08%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% |
| Portfolio Turnover Rate | 38% | 39% | 57% | 58% | 56% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $24.69 | $26.13 | $23.05 | $21.99 | $27.24 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.26 | 0.08 | 0.05 | 0.30 | 0.20 |
| Net Realized and Unrealized Gain (Loss) | (6.51) | 0.71 | 3.22 | 3.85 | (5.01) |
| Total from Investment Operations | (6.25) | 0.79 | 3.27 | 4.15 | (4.81) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.07) | (0.38) | (0.04) | (0.10) | (0.24) |
| Net Realized Gain | (0.67) | (1.85) | (0.15) | (2.99) | (0.20) |
| Total Distributions | (0.74) | (2.23) | (0.19) | (3.09) | (0.44) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $17.70 | $24.69 | $26.13 | $23.05 | $21.99 |
| **Total Return<sup>(3)</sup>** | (25.31)% | 3.23% | 14.21% | 19.08% | (17.58)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4978 | $9222 | $7907 | $11195 | $13605 |
| Ratio of Expenses Before Expense Limitation | 1.48% | 1.39% | 1.43% | 1.43% | N/A |
| Ratio of Expenses After Expense Limitation | 1.38%<sup>(4)</sup> | 1.36%<sup>(4)</sup> | 1.38%<sup>(4)</sup> | 1.34%<sup>(4)</sup> | 1.34%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.38%<sup>(4)</sup> | 1.36%<sup>(4)</sup> | 1.38%<sup>(4)</sup> | 1.34%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 1.30%<sup>(4)</sup> | 0.28%<sup>(4)</sup> | 0.24%<sup>(4)</sup> | 1.26%<sup>(4)</sup> | 0.78%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% |
| Portfolio Turnover Rate | 38% | 39% | 57% | 58% | 56% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $24.05 | $25.51 | $22.59 | $21.64 | $26.85 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.16 | (0.06) | (0.08) | 0.17 | 0.05 |
| Net Realized and Unrealized Gain (Loss) | (6.34) | 0.68 | 3.15 | 3.77 | (4.91) |
| Total from Investment Operations | (6.18) | 0.62 | 3.07 | 3.94 | (4.86) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.23) |  |  | (0.15) |
| Net Realized Gain | (0.67) | (1.85) | (0.15) | (2.99) | (0.20) |
| Total Distributions | (0.67) | (2.08) | (0.15) | (2.99) | (0.35) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $17.20 | $24.05 | $25.51 | $22.59 | $21.64 |
| **Total Return<sup>(3)</sup>** | (25.68)% | 2.64% | 13.65% | 18.37% | (18.03)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $169 | $233 | $215 | $210 | $292 |
| Ratio of Expenses Before Expense Limitation | 2.88% | 2.69% | 3.06% | 2.47% | 2.55% |
| Ratio of Expenses After Expense Limitation | 1.90%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.89%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.90%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income (Loss) | 0.87%<sup>(4)</sup> | (0.23)%<sup>(4)</sup> | (0.40)%<sup>(4)</sup> | 0.73%<sup>(4)</sup> | 0.20%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% |
| Portfolio Turnover Rate | 38% | 39% | 57% | 58% | 56% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $24.01 | $25.29 | $22.45 | $21.57 | $26.66 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.09 | (0.10) | (0.11) | 0.11 | 0.04 |
| Net Realized and Unrealized Gain (Loss) | (6.31) | 0.67 | 3.10 | 3.76 | (4.93) |
| Total from Investment Operations | (6.22) | 0.57 | 2.99 | 3.87 | (4.89) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.00)<sup>(2)</sup> |
| Net Realized Gain | (0.67) | (1.85) | (0.15) | (2.99) | (0.20) |
| Total Distributions | (0.67) | (1.85) | (0.15) | (2.99) | (0.20) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $17.12 | $24.01 | $25.29 | $22.45 | $21.57 |
| **Total Return<sup>(3)</sup>** | (25.89)% | 2.43% | 13.32% | 18.16% | (18.26)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $338 | $531 | $530 | $454 | $309 |
| Ratio of Expenses Before Expense Limitation | 2.97% | 2.42% | 2.60% | 2.58% | 2.37% |
| Ratio of Expenses After Expense Limitation | 2.15%<sup>(4)</sup> | 2.15%<sup>(4)</sup> | 2.15%<sup>(4)</sup> | 2.15%<sup>(4)</sup> | 2.14%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.15%<sup>(4)</sup> | 2.15%<sup>(4)</sup> | 2.15%<sup>(4)</sup> | 2.15%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income (Loss) | 0.47%<sup>(4)</sup> | (0.39)%<sup>(4)</sup> | (0.53)%<sup>(4)</sup> | 0.47%<sup>(4)</sup> | 0.17%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% |
| Portfolio Turnover Rate | 38% | 39% | 57% | 58% | 56% |

---

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

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

(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 (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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $25.43 | $26.85 | $23.68 | $22.52 | $27.96 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.35 | 0.20 | 0.15 | 0.36 | 0.31 |
| Net Realized and Unrealized Gain (Loss) | (6.71) | 0.72 | 3.33 | 4.00 | (5.17) |
| Total from Investment Operations | (6.36) | 0.92 | 3.48 | 4.36 | (4.86) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.17) | (0.49) | (0.16) | (0.21) | (0.38) |
| Net Realized Gain | (0.67) | (1.85) | (0.15) | (2.99) | (0.20) |
| Total Distributions | (0.84) | (2.34) | (0.31) | (3.20) | (0.58) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $18.23 | $25.43 | $26.85 | $23.68 | $22.52 |
| **Total Return<sup>(4)</sup>** | (24.98)% | 3.63% | 14.73% | 19.58% | (17.25)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $327910 | $439730 | $440346 | $524416 | $797029 |
| Ratio of Expenses Before Expense Limitation | 1.06% | 0.98% | 1.00% | 1.04% | N/A |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.92%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Income | 1.75%<sup>(5)</sup> | 0.71%<sup>(5)</sup> | 0.67%<sup>(5)</sup> | 1.47%<sup>(5)</sup> | 1.21%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% |
| Portfolio Turnover Rate | 38% | 39% | 57% | 58% | 56% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **Period from June 15,<br>2018<sup>(1)</sup> to**<br>**December 31, 2018** |
| **Net Asset Value, Beginning of Period** | $25.43 | $26.85 | $23.68 | $22.54 | $26.23 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.35 | 0.20 | 0.12 | 0.40 | 0.20 |
| Net Realized and Unrealized Gain (Loss) | (6.71) | 0.72 | 3.36 | 3.94 | (3.31) |
| Total from Investment Operations | (6.36) | 0.92 | 3.48 | 4.34 | (3.11) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.17) | (0.49) | (0.16) | (0.21) | (0.38) |
| Net Realized Gain | (0.67) | (1.85) | (0.15) | (2.99) | (0.20) |
| Total Distributions | (0.84) | (2.34) | (0.31) | (3.20) | (0.58) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $18.23 | $25.43 | $26.85 | $23.68 | $22.54 |
| **Total Return<sup>(4)</sup>** | (24.98)% | 3.63% | 14.73% | 19.53% | (11.82)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $9 | $12 | $12 | $10 | $9 |
| Ratio of Expenses Before Expense Limitation | 22.06% | 16.98% | 21.21% | 21.52% | 19.46%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.93%<sup>(5)(8)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Income | 1.75%<sup>(5)</sup> | 0.71%<sup>(5)</sup> | 0.55%<sup>(5)</sup> | 1.62%<sup>(5)</sup> | 1.56%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 38% | 39% | 57% | 58% | 56% |

---

(1) Commencement of Offering.

(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) 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) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Emerging Markets Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of issuers in emerging market countries.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) 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; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Air Freight & Logistics | $— | $2401 | $— | $2401 |
| Airlines | 9644 |  |  | 9644 |
| Automobiles |  | 21235 |  | 21235 |
| Banks | 20576 | 83128 |  | 103704 |
| Beverages |  | 11988 |  | 11988 |
| Capital Markets |  | 4280 |  | 4280 |
| Chemicals |  | 3448 |  | 3448 |
| Commercial Banks |  | 4745 |  | 4745 |
| Consumer Finance |  | 7215 |  | 7215 |
| Diversified Financial <br>Services |  | 4509 |  | 4509 |
| Diversified Financials |  | 5588 |  | 5588 |
| Electrical Equipment |  | 7082 |  | 7082 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Electronic Equipment, <br>Instruments & <br>Components | $— | $14720 | $— | $14720 |
| Food & Staples Retailing | 8947 | 3732 |  | 12679 |
| Food Products | 758 | 8566 |  | 9324 |
| Health Care Providers & <br>Services |  | 4253 |  | 4253 |
| Hotels, Restaurants & <br>Leisure | 2214 |  |  | 2214 |
| Information Technology <br>Services | 6163 | 6520 |  | 12683 |
| Insurance |  | 5410 |  | 5410 |
| Interactive Media & <br>Services |  | 15035 |  | 15035 |
| Internet & Direct <br>Marketing Retail | 2062 | 14189 |  | 16251 |
| Machinery |  | 7682 |  | 7682 |
| Metals & Mining |  | 44712 |  | 44712 |
| Multi-Line Retail |  | 10773 |  | 10773 |
| Oil, Gas & Consumable <br>Fuels |  | 28546 |  | 28546 |
| Paper & Forest Products |  | 8631 |  | 8631 |
| Personal Products |  | 2472 |  | 2472 |
| Pharmaceuticals |  | 3757 |  | 3757 |
| Real Estate Management & <br>Development |  | 3400 |  | 3400 |
| Semiconductors & <br>Semiconductor <br>Equipment | 13493 | 34906 |  | 48399 |
| Specialty Retail |  | 2852 |  | 2852 |
| Tech Hardware, <br>Storage & Peripherals |  | 22552 |  | 22552 |
| Textiles, Apparel & <br>Luxury Goods |  | 17006 |  | 17006 |
| **Total Common Stocks** | **63857** | **415333** | **—** | **479190** |
| **Futures Contract** | 3 |  |  | 3 |
| **Total Assets** | $**63860** | $**415333** | $**—** | $**479193** |

---

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 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 U.S. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser and/or Sub-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.

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Futures Contract | Variation Margin on<br>Futures Contract | <br>Equity Risk | $3<br> (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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Equity Risk | Futures Contracts | $(1) |
| **Change in Unrealized Appreciaton (Depreciation)** | **Change in Unrealized Appreciaton (Depreciation)** | **Change in Unrealized Appreciaton (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Equity Risk | Futures Contracts | $3 |

---

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Futures Contracts:** | **Futures Contracts:** |
| Average monthly notional value | $721000 |

---

**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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset<br>Amounts<br>Presented in the<br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $66<br> (b) | $— | $(66)(c)(d) | $0 |

---

(b) Represents market value of loaned securities at year end.

(c) The Fund received non-cash collateral of approximately $69,000 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.

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

**6. Redemption Fees:** The Fund will assess a 2% redemption fee, on Class I shares, Class A shares, Class L shares, Class C shares, Class R6 shares and Class IR shares which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

**7. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | | | |
|:---|:---|:---|:---|
| **First $500<br>million** | **Next $500<br>million** | **Next $1.5<br>billion** | **Over $2.5<br>billion** |
| 0.85% | 0.75% | 0.70% | 0.65% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.73% 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 1.05% for Class I shares, 1.40% for Class A shares, 1.90% for Class L shares, 2.15% for Class C shares, 0.95% for Class R6 shares and 0.95% for Class IR 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $580,000 of advisory fees were waived and approximately $29,000 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 Directors. The Adviser pays the Sub-Adviser on a

monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $212,081,000 and $264,314,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $16,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value <br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $8133 | $158043 | $166176 | $192 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized <br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $— |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $4250 | $17250 | $11076 | $49421 |

---

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 December 31, 2022.

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $5302 | $— |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $5,078,000 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 77.3%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Emerging Markets Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Emerging Markets Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j2327929_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 1.08% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $17,250,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $5,960,000 as taxable at this lower rate.

The Fund intends to pass through foreign tax credits of approximately $1,710,000.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Company<br>23 Church Street<br>16-01 Capital Square, Singapore 049481

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j2327929_za006.jpg)

IFIEMANN<br>5442631 EXP 02.29.24

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![](j23279210_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Concentrated Portfolio

Annual Report

December 31, 2022

![](j23279210_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 6 |
| Statement of Assets and Liabilities | 7 |
| Statement of Operations | 8 |
| Statements of Changes in Net Assets | 9 |
| Financial Highlights | 10 |
| Notes to Financial Statements | 14 |
| Report of Independent Registered Public Accounting Firm | 20 |
| Liquidity Risk Management Program | 21 |
| Federal Tax Notice | 22 |
| U.S. Customer Privacy Notice | 23 |
| Director and Officer Information | 26 |

---

***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279210_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Concentrated Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Concentrated Portfolio Class I | $1000.00 | $1036.10 | $1020.16 | $5.13 | $5.09 | 1.00% |
| Global Concentrated Portfolio Class A | 1000.00 | 1034.20 | 1018.65 | 6.67 | 6.61 | 1.30 |
| Global Concentrated Portfolio Class C | 1000.00 | 1030.30 | 1014.87 | 10.49 | 10.41 | 2.05 |
| Global Concentrated Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1035.90 | 1020.42 | 4.88 | 4.84 | 0.95 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Concentrated Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –22.28%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI World Net Index (the "Index"), which returned –18.14%.

**Factors Affecting Performance**

• The Fund underperformed its benchmark in 2022, a challenging period for equities overall. The final, harsh December drawdown marked the end of the worst calendar year for the equity markets since the 2008 financial crisis.

• For the duration of 2022, the Fund held both growth and value stocks, with some exposure to more defensive bond proxy stocks in terms of utilities and real estate investment trusts (REITs) to help mitigate market volatility. Overall, positioning served the portfolio well, positively contributing to performance for the period.

• Value stocks were historically inexpensive with strong balance sheets, providing potential for strong upside. These value cyclical stocks had mixed performance for the period. Energy was the best performing sector of the reporting period, yet due to the volatile nature of these stocks, the portfolio held no weighting, thus negatively impacting performance.

• Within the context of a rising rate environment, the portfolio allocation to U.S. and Asia ex-Japan financials was a favorable decision. The portfolio had exposure to some growth, while avoiding the uber-growth stocks which were elevated in terms of their historical valuation levels for much of the period, implying unreasonably high expectations, which benefited portfolio performance for the period.

• The team attempts to invest in stocks that have demonstrated themselves as long-term winning positions; however, those stocks lagged the performance of the long-term losers, and thus negatively impacted performance.

• From a geographic standpoint, regional positioning had mixed contributions to performance for the period. Being underweight in the U.S. and

European regions was a decision that positively contributed to performance.

• The Fund's overweight to Asia ex-Japan and consistent lack of allocation to Japan for the period was neutral to performance. Not only do we struggle quantitatively to find market metrics that have long-term persistence in Japan, but we also struggle to find specific stocks that persistently outperform. This poses a longer-term risk, and the team remains negative on the region.

• Entering 2023, the portfolio holds about 45% growth and 55% value/core stocks, with an increasing bias toward value versus growth. From a geographic standpoint, the portfolio is underweight North America, overweight Asia ex-Japan, and has an underweight to Europe versus the benchmark while maintaining no weighting in Japan. The team believes Asia ex-Japan potentially will be the best performing region in the world in 2023. Although the portfolio has been underweight Europe for a decade, the team believes the region could potentially outperform the U.S. in 2023.

• Within stock selection, the largest detractors were: a position in a U.S. commercial bank catering to venture capital and credit investors negatively impacted by Federal Reserve rate increases and deal slowdowns; a semiconductor company based in Taiwan that was impacted by a potential slowdown in demand; and a technology company that was impacted by looming heightened government regulation. In addition, the portfolio overweight to companies considered to be long-term winners negatively impacted performance.

• The Fund benefited from good stock selection, particularly within the U.S. technology sector, avoiding uber-growth stocks. Likewise, a position in the largest private bank in India positively contributed to performance.

**Management Strategies**

• There have been no changes to the investment process during the period. Applied Equity Advisors' investment process is comprised of two parts: a Style Positioning Engine and a Stock Selection Engine. The first step, the Style Positioning Engine, takes into account not only what market styles (growth, value, defensive) or areas of the market are in leadership, but also how much momentum a particular style has, whether that style is cheap or

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Concentrated Portfolio**

expensive, and whether the timing is right to be tilted toward that style. The timing decision comes down to the team's judgment and our combined decades of experience in factor investing. The team considers Style Positioning for each of four regions: U.S., Europe, Japan and Asia ex-Japan. With regard to the Style Positioning Engine, investing in a particular area of the market that shows cheap historical valuation levels may not appear to be advantageous at first, but if chosen correctly, sticking with that investment often proves to be successful over the longer term. The Stock Selection Engine begins its work once the desired style positioning is understood. There are three steps to the Stock Selection Engine: 1. determining which stocks are most correlated to the desired style and least correlated to other portfolio positions, 2. evaluation of the company fundamentals, and 3. Sustainability Analysis. The result is a highly active portfolio of fundamentally attractive stocks that the team believes could benefit from what we have identified to be investment styles likely to outperform in each region.

![](j23279210_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on May 27, 2016.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI World Net Index** **<sup>(1)</sup>** **and the Lipper Global Large-Cap Growth Funds Index** **<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –22.28% | 5.15% |  | 7.51% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –22.49 | 4.82 |  | 7.15 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –26.55 | 3.69 |  | 6.28 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –23.09 | 4.03 |  | 6.36 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> | –23.86 | 4.03 |  | 6.36 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –22.25 | 5.22 |  | 7.56 |
| MSCI World Net Index | –18.14 | 6.14 |  | 8.76 |
| Lipper Global Large-Cap <br>Growth Funds Index | –27.41 | 5.49 |  | 8.45 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI World Index currently consists of 23 developed market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Large-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Large-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Large-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on May 27, 2016. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Concentrated Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (99.8%)** | **Common Stocks (99.8%)** | **Common Stocks (99.8%)** |
| China (10.0%) | China (10.0%) | China (10.0%) |
| NetEase, Inc. ADR | 50732 | $3684 |
| Tencent Holdings Ltd. ADR | 107595 | 4558 |
|  |  | 8242 |
| France (9.5%) | France (9.5%) | France (9.5%) |
| LVMH Moet Hennessy Louis Vuitton SE ADR | 54165 | 7847 |
| India (8.0%) | India (8.0%) | India (8.0%) |
| HDFC Bank Ltd. ADR | 96223 | 6583 |
| Italy (6.7%) | Italy (6.7%) | Italy (6.7%) |
| Ferrari NV | 25831 | 5534 |
| Taiwan (6.0%) | Taiwan (6.0%) | Taiwan (6.0%) |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 66761 | 4973 |
| United States (59.6%) | United States (59.6%) | United States (59.6%) |
| Ameriprise Financial, Inc. | 13706 | 4268 |
| Costco Wholesale Corp. | 8772 | 4004 |
| Danaher Corp. | 15287 | 4057 |
| JPMorgan Chase & Co. | 9732 | 1305 |
| Mastercard, Inc., Class A | 6355 | 2210 |
| Microsoft Corp. | 25290 | 6065 |
| NextEra Energy, Inc. | 49019 | 4098 |
| Pool Corp. | 12922 | 3907 |
| RH (a) | 10673 | 2852 |
| STORE Capital Corp. REIT | 74303 | 2382 |
| SVB Financial Group (a) | 14693 | 3381 |
| United Rentals, Inc. (a) | 14183 | 5041 |
| Waste Management, Inc. | 35311 | 5540 |
|  |  | 49110 |
| **Total Common Stocks (Cost $81,778)** | **Total Common Stocks (Cost $81,778)** | 82289 |
| **Short-Term Investment (0.4%)** | **Short-Term Investment (0.4%)** | **Short-Term Investment (0.4%)** |
| Investment Company (0.4%) | Investment Company (0.4%) | Investment Company (0.4%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $290)** | 290449 | 290 |
| **Total Investments (100.2%) (Cost $82,068) (b)** | **Total Investments (100.2%) (Cost $82,068) (b)** | 82579 |
| Liabilities in Excess of Other Assets (–0.2%) | Liabilities in Excess of Other Assets (–0.2%) | (162) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $82417 |

---

&nbsp;&nbsp;&nbsp;&nbsp;<br>

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

(a) Non-income producing security.

(b) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $83,960,000. The aggregate gross unrealized appreciation is approximately $7,132,000 and the aggregate gross unrealized depreciation is approximately $8,513,000, resulting in net unrealized depreciation of approximately $1,381,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 28.3% |
| Banks | 13.7 |
| Textiles, Apparel & Luxury Goods | 9.5 |
| Software | 7.3 |
| Commercial Services & Supplies | 6.7 |
| Automobiles | 6.7 |
| Trading Companies & Distributors | 6.1 |
| Semiconductors & Semiconductor Equipment | 6.0 |
| Interactive Media & Services | 5.5 |
| Capital Markets | 5.2 |
| Electric Utilities | 5.0 |
| 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.<br>6

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Concentrated Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $81,778) | $82289 |
| Investment in Security of Affiliated Issuer, at Value (Cost $290) | 290 |
| Total Investments in Securities, at Value (Cost $82,068) | 82579 |
| Dividends Receivable | 28 |
| Receivable for Fund Shares Sold | 12 |
| Tax Reclaim Receivable | 11 |
| Receivable from Affiliate | 1 |
| Other Assets | 32 |
| **Total Assets** | 82663 |
| **Liabilities:** | **Liabilities:** |
| Payable for Advisory Fees | 95 |
| Payable for Professional Fees | 62 |
| Payable for Fund Shares Redeemed | 41 |
| Payable for Sub Transfer Agency Fees — Class I | 9 |
| Payable for Sub Transfer Agency Fees — Class A | 1 |
| Payable for Sub Transfer Agency Fees — Class C | 1 |
| Payable for Administration Fees | 6 |
| Payable for Shareholder Services Fees — Class A | 1 |
| Payable for Distribution and Shareholder Services Fees — Class C | 4 |
| Payable for Custodian Fees | 2 |
| Payable for Transfer Agency Fees — Class I | 1 |
| Payable for Transfer Agency Fees — Class A |  |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Other Liabilities | 23 |
| **Total Liabilities** | 246 |
| **Net Assets** | $82417 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $88335 |
| Total Accumulated Loss | (5918 |
| **Net Assets** | $82417 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $70730 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 4702722 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $15.04 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $6631 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 445660 |
| **Net Asset Value, Redemption Price Per Share** | $14.88 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.82 |
| **Maximum Offering Price Per Share** | $15.70 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $5040 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 351205 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $14.35 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $16 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1055 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $15.06 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Concentrated Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $59 of Foreign Taxes Withheld) | $1094 |
| Dividends from Security of Affiliated Issuer (Note G) | 11 |
| Total Investment Income | 1105 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 691 |
| Professional Fees | 155 |
| Shareholder Services Fees — Class A (Note D) | 17 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 61 |
| Administration Fees (Note C) | 74 |
| Registration Fees | 70 |
| Sub Transfer Agency Fees — Class I | 42 |
| Sub Transfer Agency Fees — Class A | 4 |
| Sub Transfer Agency Fees — Class C | 4 |
| Shareholder Reporting Fees | 38 |
| Transfer Agency Fees — Class I (Note E) | 3 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Directors' Fees and Expenses | 6 |
| Custodian Fees (Note F) | 3 |
| Pricing Fees | 2 |
| Other Expenses | 13 |
| Total Expenses | 1190 |
| Waiver of Advisory Fees (Note B) | (177 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (5 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (1 |
| Net Expenses | 1005 |
| **Net Investment Income** | 100 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold | (5133 |
| Foreign Currency Translation |  |
| Net Realized Loss | (5133 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (20991 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (26124 |
| Net Decrease in Net Assets Resulting from Operations | $(26024 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Concentrated Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $100 | $(50 |
| Net Realized Gain (Loss) | (5133 | 2574 |
| Net Change in Unrealized Appreciation (Depreciation) | (20991 | 11483 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (26024 | 14007 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (162 | (3607 |
| **Class A** | (1 | (319 |
| **Class C** | (1 | (283 |
| **Class R6\*** | (— | (4 |
| **Paid-in-Capital:** | **Paid-in-Capital:** | **Paid-in-Capital:** |
| **Class I** | (52 |  |
| **Class A** |  |  |
| **Class C** |  |  |
| **Class R6** | (— |  |
| Total Dividends and Distributions to Shareholders | (216 | (4213 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 23023 | 52949 |
| Distributions Reinvested | 214 | 3606 |
| Redeemed | (28709 | (12352 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 4983 | 3983 |
| Distributions Reinvested | 1 | 319 |
| Redeemed | (4562 | (3049 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 1582 | 3953 |
| Distributions Reinvested | 1 | 283 |
| Redeemed | (2640 | (356 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed |  | 86 |
| Distributions Reinvested |  | 4 |
| Redeemed | (45 | (59 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (6152 | 49367 |
| Total Increase (Decrease) in Net Assets | (32392 | 59161 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 114809 | 55648 |
| End of Period | $82417 | $114809 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 1436 | 2859 |
| Shares Issued on Distributions Reinvested | 14 | 192 |
| Shares Redeemed | (1823 | (658 |
| Net Increase (Decrease) in Class I Shares Outstanding | (373 | 2393 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 321 | 214 |
| Shares Issued on Distributions Reinvested |  | 17 |
| Shares Redeemed | (305 | (160 |
| Net Increase in Class A Shares Outstanding | 16 | 71 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 101 | 216 |
| Shares Issued on Distributions Reinvested |  | 16 |
| Shares Redeemed | (177 | (19 |
| Net Increase (Decrease) in Class C Shares Outstanding | (76 | 213 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed |  | 4 |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (3 | (3 |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (3 | 1 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Concentrated Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.41 | $17.12 | $13.86 | $10.53 | $12.42 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.03 | 0.01 | 0.03 | 0.08 | 0.14 |
| Net Realized and Unrealized Gain (Loss) | (4.36) | 3.02 | 3.23 | 3.40 | (1.95) |
| Total from Investment Operations | (4.33) | 3.03 | 3.26 | 3.48 | (1.81) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.03) |  | (0.00)<sup>(2)</sup> | (0.15) | (0.08) |
| Net Realized Gain | (0.00)<sup>(2)</sup> | (0.74) |  |  |  |
| Paid-in-Capital | (0.01) |  |  |  |  |
| Total Distributions | (0.04) | (0.74) | (0.00)<sup>(2)</sup> | (0.15) | (0.08) |
| **Net Asset Value, End of Period** | $15.04 | $19.41 | $17.12 | $13.86 | $10.53 |
| **Total Return<sup>(3)</sup>** | (22.28)% | 17.83% | 23.52% | 33.10% | (14.61)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $70730 | $98522 | $45946 | $14885 | $11554 |
| Ratio of Expenses Before Expense Limitation | 1.20% | 1.17% | 1.81% | 1.96% | 1.90% |
| Ratio of Expenses After Expense Limitation | 1.00%<sup>(4)</sup> | 1.00%<sup>(4)</sup> | 0.99%<sup>(4)</sup> | 1.00%<sup>(4)</sup> | 1.00%<sup>(4)</sup> |
| Ratio of Net Investment Income | 0.20%<sup>(4)</sup> | 0.04%<sup>(4)</sup> | 0.21%<sup>(4)</sup> | 0.64%<sup>(4)</sup> | 1.13%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 34% | 33% | 54% | 123% | 94% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Concentrated Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.20 | $17.00 | $13.80 | $10.49 | $12.37 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | (0.01) | (0.05) | (0.02) | 0.04 | 0.11 |
| Net Realized and Unrealized Gain (Loss) | (4.31) | 2.99 | 3.22 | 3.38 | (1.95) |
| Total from Investment Operations | (4.32) | 2.94 | 3.20 | 3.42 | (1.84) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.00)<sup>(2)</sup> | (0.11) | (0.04) |
| Net Realized Gain | (0.00)<sup>(2)</sup> | (0.74) |  |  |  |
| Total Distributions | (0.00)<sup>(2)</sup> | (0.74) | (0.00)<sup>(2)</sup> | (0.11) | (0.04) |
| **Net Asset Value, End of Period** | $14.88 | $19.20 | $17.00 | $13.80 | $10.49 |
| **Total Return<sup>(3)</sup>** | (22.49)% | 17.42% | 23.19% | 32.64% | (14.91)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $6631 | $8245 | $6091 | $4009 | $2213 |
| Ratio of Expenses Before Expense Limitation | 1.49% | 1.45% | 2.13% | 2.29% | 2.24% |
| Ratio of Expenses After Expense Limitation | 1.30%<sup>(4)</sup> | 1.30%<sup>(4)</sup> | 1.31%<sup>(4)</sup> | 1.34%<sup>(4)</sup> | 1.35%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | (0.08)%<sup>(4)</sup> | (0.29)%<sup>(4)</sup> | (0.14)%<sup>(4)</sup> | 0.32%<sup>(4)</sup> | 0.91%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 34% | 33% | 54% | 123% | 94% |

---

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

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

(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 (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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Concentrated Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.66 | $16.66 | $13.63 | $10.36 | $12.27 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | (0.13) | (0.18) | (0.12) | (0.06) | 0.02 |
| Net Realized and Unrealized Gain (Loss) | (4.18) | 2.92 | 3.15 | 3.34 | (1.93) |
| Total from Investment Operations | (4.31) | 2.74 | 3.03 | 3.28 | (1.91) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.00)<sup>(2)</sup> | (0.01) |  |
| Net Realized Gain | (0.00)<sup>(2)</sup> | (0.74) |  |  |  |
| Total Distributions | (0.00)<sup>(2)</sup> | (0.74) | (0.00)<sup>(2)</sup> | (0.01) |  |
| **Net Asset Value, End of Period** | $14.35 | $18.66 | $16.66 | $13.63 | $10.36 |
| **Total Return<sup>(3)</sup>** | (23.09)% | 16.58% | 22.23% | 31.69% | (15.57)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $5040 | $7969 | $3568 | $2704 | $2263 |
| Ratio of Expenses Before Expense Limitation | 2.24% | 2.21% | 2.91% | 3.06% | 2.98% |
| Ratio of Expenses After Expense Limitation | 2.05%<sup>(4)</sup> | 2.06%<sup>(4)</sup> | 2.09%<sup>(4)</sup> | 2.10%<sup>(4)</sup> | 2.09%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | (0.83)%<sup>(4)</sup> | (1.00)%<sup>(4)</sup> | (0.91)%<sup>(4)</sup> | (0.46)%<sup>(4)</sup> | 0.18%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 34% | 33% | 54% | 123% | 94% |

---

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

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

(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 (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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Concentrated Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.44 | $17.14 | $13.86 | $10.53 | $12.42 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.03 | 0.04 | 0.03 | 0.09 | 0.16 |
| Net Realized and Unrealized Gain (Loss) | (4.36) | 3.00 | 3.25 | 3.40 | (1.97) |
| Total from Investment Operations | (4.33) | 3.04 | 3.28 | 3.49 | (1.81) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.04) |  | (0.00)<sup>(3)</sup> | (0.16) | (0.08) |
| Net Realized Gain | (0.00)<sup>(3)</sup> | (0.74) |  |  |  |
| Paid-in-Capital | (0.01) |  |  |  |  |
| Total Distributions | (0.05) | (0.74) | (0.00)<sup>(3)</sup> | (0.16) | (0.08) |
| **Net Asset Value, End of Period** | $15.06 | $19.44 | $17.14 | $13.86 | $10.53 |
| **Total Return<sup>(4)</sup>** | (22.25)% | 17.86% | 23.67% | 33.16% | (14.55)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $16 | $73 | $43 | $14 | $11 |
| Ratio of Expenses Before Expense Limitation | 9.89% | 7.26% | 9.20% | 17.68% | 17.97% |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)</sup> |
| Ratio of Net Investment Income | 0.17%<sup>(5)</sup> | 0.21%<sup>(5)</sup> | 0.22%<sup>(5)</sup> | 0.68%<sup>(5)</sup> | 1.27%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 34% | 33% | 54% | 123% | 94% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Concentrated Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

valued at the net asset value ("NAV") as of the close of each business day.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Automobiles | $5534 | $— | $— | $5534 |
| Banks | 11269 |  |  | 11269 |
| Capital Markets | 4268 |  |  | 4268 |
| Commercial Services & <br>Supplies | 5540 |  |  | 5540 |
| Distributors | 3907 |  |  | 3907 |
| Electric Utilities | 4098 |  |  | 4098 |
| Entertainment | 3684 |  |  | 3684 |
| Equity Real Estate <br>Investment Trusts <br>(REITs) | 2382 |  |  | 2382 |
| Food & Staples Retailing | 4004 |  |  | 4004 |
| Information Technology <br>Services | 2210 |  |  | 2210 |
| Interactive Media & <br>Services | 4558 |  |  | 4558 |
| Life Sciences Tools & <br>Services | 4057 |  |  | 4057 |
| Semiconductors & <br>Semiconductor <br>Equipment | 4973 |  |  | 4973 |
| Software | 6065 |  |  | 6065 |
| Specialty Retail | 2852 |  |  | 2852 |
| Textiles, Apparel & <br>Luxury Goods | 7847 |  |  | 7847 |
| Trading Companies & <br>Distributors | 5041 |  |  | 5041 |
| **Total Common Stocks** | **82289** | **—** | **—** | **82289** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 290 |  |  | 290 |
| **Total Assets** | $**82579** | $**—** | $**—** | $**82579** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. dollar 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 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 U.S. 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. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 $750<br>million** | **Next $750<br>million** | **Over $1.5<br>billion** |
| 0.75% | 0.70% | 0.65% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.56% 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 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $177,000 of advisory fees were waived and approximately $7,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $31,536,000 and $36,876,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by $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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value <br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $1205 | $24135 | $25050 | $11 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $290 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible

Director 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**2022<br>Distributions<br>Paid From:** | &nbsp;&nbsp;&nbsp;&nbsp;**2022<br>Distributions<br>Paid From:** | &nbsp;&nbsp;&nbsp;&nbsp;**2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Paid-in-<br>Capital<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $155 | $9 | $52 | $4213 |

---

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 prior year tax return adjustment, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $129 | $(129) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $2,710,000 and 1,793,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 87.6%.

**K. Market Risk:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes

and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):**On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Concentrated Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Concentrated Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279210_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 100% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $9,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $155,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279210_za006.jpg)

IFIGCNPANN<br>5442725 EXP 02.29.24

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![](j23279211_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Core Portfolio

Annual Report

December 31, 2022

![](j23279211_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 7 |
| Statement of Assets and Liabilities | 8 |
| Statement of Operations | 10 |
| Statements of Changes in Net Assets | 11 |
| Financial Highlights | 12 |
| Notes to Financial Statements | 16 |
| Report of Independent Registered Public Accounting Firm | 23 |
| Liquidity Risk Management Program | 24 |
| Federal Tax Notice | 25 |
| U.S. Customer Privacy Notice | 26 |
| Director and Officer Information | 29 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279211_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Core Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Core Portfolio Class I | $1000.00 | $1048.50 | $1020.21 | $5.11 | $5.04 | 0.99% |
| Global Core Portfolio Class A | 1000.00 | 1046.20 | 1018.40 | 6.96 | 6.87 | 1.35 |
| Global Core Portfolio Class C | 1000.00 | 1043.10 | 1014.62 | 10.81 | 10.66 | 2.10 |
| Global Core Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1048.90 | 1020.42 | 4.91 | 4.84 | 0.95 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Core Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –19.37%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI World Net Index (the "Index"), which returned –18.14%.

**Factors Affecting Performance**

• The Fund underperformed its benchmark in 2022, a challenging period for equities overall. The final, harsh December drawdown marked the end of the worst calendar year for the equity markets since the 2008 financial crisis.

• For the duration of 2022, the Fund held both growth and value stocks, with some exposure to more defensive bond proxy stocks in terms of utilities and real estate investment trusts (REITs) to help mitigate market volatility. Overall, positioning served the portfolio well, positively contributing to performance for the period.

• Value stocks were historically inexpensive with strong balance sheets, providing potential for strong upside. These value cyclical stocks had mixed performance for the period. The portfolio overweight to energy, the best performing sector of the reporting period, positively contributed to performance.

• Within the context of a rising rate environment, the portfolio allocation to U.S. and Asia ex-Japan financials was a favorable decision. The portfolio had exposure to some growth, while avoiding the uber-growth stocks which were elevated in terms of their historical valuation levels for much of the period, implying unreasonably high expectations, which benefited portfolio performance for the period.

• The team attempts to invest in stocks that have demonstrated themselves as long-term winning positions; however, those stocks lagged the performance of the long-term losers, and thus negatively impacted performance.

• From a geographic standpoint, regional positioning had mixed contributions to performance for the period. Being underweight in the U.S. and European regions was a decision that positively contributed to performance.

• The Fund's overweight to Asia ex-Japan added to performance for the period. The underweight allocation to Japan for the period minimally detracted from performance. Not only do we struggle quantitatively to find market metrics that have long-term persistence in Japan, but we also struggle to find specific stocks that persistently outperform. This poses a longer-term risk, and the team remains negative on the region.

• Entering 2023, the portfolio holds about 45% growth and 55% value/core stocks, with an increasing bias toward value versus growth. From a geographic standpoint, the portfolio is underweight North America, overweight Asia ex-Japan, and has an underweight to both Europe and Japan versus the benchmark. The team believes Asia ex-Japan potentially will be the best performing region in the world in 2023. Although the portfolio has been underweight Europe for a decade, the team believes the region could potentially outperform the U.S. in 2023.

• Within stock selection, the largest detractors were positions in a U.S. commercial bank catering to venture capital and credit investors negatively impacted by Federal Reserve rate increases and deal slowdowns; a Southeast Asian tech company that experienced a slowdown in its gaming business and a retrenchment in its ecommerce strategy, which took a toll on the near-term outlook for growth; and a semiconductor company based in Taiwan that was impacted by a potential slowdown in demand at a time of peak inventory. In addition, the portfolio overweight to companies considered to be long-term winners negatively impacted performance.

• The Fund benefited from good stock selection, particularly within the U.S. technology sector, avoiding uber-growth stocks. Likewise, positions in a global, integrated energy company and in the largest private bank in India positively contributed to performance.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Core Portfolio**

**Management Strategies**

• There have been no changes to the investment process during the period. Applied Equity Advisors' investment process is comprised of two parts: a Style Positioning Engine and a Stock Selection Engine. The first step, the Style Positioning Engine, takes into account not only what market styles (growth, value, defensive) or areas of the market are in leadership, but also how much momentum a particular style has, whether that style is cheap or expensive, and whether the timing is right to be tilted toward that style. The timing decision comes down to the team's judgment and our combined decades of experience in factor investing. The team considers Style Positioning for each of four regions: U.S., Europe, Japan and Asia ex-Japan. With regard to the Style Positioning Engine, investing in a particular area of the market that shows cheap historical valuation levels may not appear to be advantageous at first, but if chosen correctly, sticking with that investment often proves to be successful over the longer term. The Stock Selection Engine begins its work once the desired style positioning is understood. There are three steps to the Stock Selection Engine: 1. determining which stocks are most correlated to the desired style and least correlated to other portfolio positions, 2. evaluation of the company fundamentals, and 3. Sustainability Analysis. The result is a highly active portfolio of fundamentally attractive stocks that the team believes could benefit from what we have identified to be investment styles likely to outperform in each region.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Core Portfolio**

![](j23279211_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on May 27, 2016.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI World Net Index<sup>(1)</sup> and the Lipper Global Large-Cap Growth Funds Index<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –19.37% | 4.77% |  | 6.98% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –19.64 | 4.39 |  | 6.58 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –23.86 | 3.28 |  | 5.72 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –20.24 | 3.61 |  | 5.79 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(4)</sup> | –21.04 | 3.61 |  | 5.79 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –19.28 | 4.82 |  | 7.02 |
| MSCI World Net Index | –18.14 | 6.14 |  | 8.76 |
| Lipper Global Large-Cap Growth <br>Funds Index | –27.41 | 5.49 |  | 8.45 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI World Net Index currently consists of 23 developed market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Large-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Large-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Large-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on May 27, 2016. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Core Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.4%)** | **Common Stocks (98.4%)** | **Common Stocks (98.4%)** |
| China (6.9%) | China (6.9%) | China (6.9%) |
| Alibaba Group Holding Ltd. ADR (a) | 833 | $74 |
| NetEase, Inc. ADR | 8401 | 610 |
| Tencent Holdings Ltd. ADR | 17404 | 737 |
|  |  | 1421 |
| France (5.0%) | France (5.0%) | France (5.0%) |
| LVMH Moet Hennessy Louis Vuitton SE | 1394 | 1014 |
| India (4.5%) | India (4.5%) | India (4.5%) |
| HDFC Bank Ltd. ADR | 13518 | 925 |
| Ireland (5.1%) | Ireland (5.1%) | Ireland (5.1%) |
| CRH PLC ADR | 23035 | 916 |
| Ryanair Holdings PLC ADR | 1708 | 128 |
|  |  | 1044 |
| Italy (4.6%) | Italy (4.6%) | Italy (4.6%) |
| Ferrari NV | 4358 | 933 |
| Japan (1.7%) | Japan (1.7%) | Japan (1.7%) |
| Nippon Telegraph & Telephone Corp. ADR | 12239 | 346 |
| Taiwan (3.4%) | Taiwan (3.4%) | Taiwan (3.4%) |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 9329 | 695 |
| United Kingdom (5.2%) | United Kingdom (5.2%) | United Kingdom (5.2%) |
| Diageo PLC ADR | 4440 | 791 |
| Experian PLC ADR | 8380 | 283 |
|  |  | 1074 |
| United States (62.0%) | United States (62.0%) | United States (62.0%) |
| Ameriprise Financial, Inc. | 2428 | 756 |
| Apple, Inc. | 10600 | 1377 |
| Brown & Brown, Inc. | 2877 | 164 |
| Chevron Corp. | 6734 | 1209 |
| Danaher Corp. | 3103 | 824 |
| Dollar General Corp. | 312 | 77 |
| Estee Lauder Cos., Inc., Class A | 1464 | 363 |
| First Republic Bank | 4358 | 531 |
| Fortune Brands Innovations, Inc. | 3481 | 199 |
| Home Depot, Inc. | 655 | 207 |
| Jack Henry & Associates, Inc. | 462 | 81 |
| JPMorgan Chase & Co. | 4317 | 579 |
| Lennar Corp., Class A | 583 | 53 |
| Lululemon Athletica, Inc. (a) | 1718 | 550 |
| Masterbrand, Inc. | 3481 | 26 |
| Mastercard, Inc., Class A | 1405 | 489 |
| McDonald's Corp. | 2133 | 562 |
| MGM Resorts International | 12009 | 403 |
| Microsoft Corp. | 5128 | 1230 |
| NextEra Energy, Inc. | 7357 | 615 |
| Nucor Corp. | 361 | 48 |
| Planet Fitness, Inc., Class A | 775 | 61 |
| Pool Corp. | 1151 | 348 |
| Progressive Corp. | 1409 | 183 |
| RH (a) | 215 | 57 |
| SBA Communications Corp. REIT | 539 | 151 |
| STORE Capital Corp. REIT | 9416 | 302 |
| SVB Financial Group (a) | 1617 | 372 |
| Target Corp. | 1155 | 172 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| United Rentals, Inc. (a) | 1304 | $463 |
| Valero Energy Corp. | 808 | 102 |
| Veeva Systems, Inc., Class A (a) | 638 | 103 |
| Waste Management, Inc. | 361 | 57 |
|  |  | 12714 |
| **Total Common Stocks (Cost $17,740)** | **Total Common Stocks (Cost $17,740)** | 20166 |
| **Short-Term Investment (3.5%)** | **Short-Term Investment (3.5%)** | **Short-Term Investment (3.5%)** |
| Investment Company (3.5%) | Investment Company (3.5%) | Investment Company (3.5%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $726)** | 725786 | 726 |
| **Total Investments (101.9%) (Cost $18,466) (b)(c)** | **Total Investments (101.9%) (Cost $18,466) (b)(c)** | 20892 |
| Liabilities in Excess of Other Assets (–1.9%) | Liabilities in Excess of Other Assets (–1.9%) | (389) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $20503 |

---

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

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $1,014,000 and 4.9%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to Financial Statements.

(c) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $18,571,000. The aggregate gross unrealized appreciation is approximately $3,131,000 and the aggregate gross unrealized depreciation is approximately $811,000, resulting in net unrealized appreciation of approximately $2,320,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Other\* | 62.2% |
| Banks | 11.5 |
| Textiles, Apparel & Luxury Goods | 7.5 |
| Tech Hardware, Storage & Peripherals | 6.6 |
| Oil, Gas & Consumable Fuels | 6.3 |
| Software | 5.9 |
| 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.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Core Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $17,740) | $20166 |  |
| Investment in Security of Affiliated Issuer, at Value (Cost $726) | 726 |  |
| Total Investments in Securities, at Value (Cost $18,466) | 20892 |  |
| Foreign Currency, at Value (Cost —@) |  | @ |
| Receivable for Investments Sold | 192 |  |
| Due from Adviser | 59 |  |
| Receivable for Fund Shares Sold | 35 |  |
| Dividends Receivable | 4 |  |
| Tax Reclaim Receivable | 1 |  |
| Receivable from Affiliate | 1 |  |
| Other Assets | 32 |  |
| **Total Assets** | 21216 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Investments Purchased | 638 |  |
| Payable for Professional Fees | 54 |  |
| Payable for Custodian Fees | 3 |  |
| Payable for Shareholder Services Fees — Class A | 1 |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 2 |  |
| Payable for Sub Transfer Agency Fees — Class I | 1 |  |
| Payable for Sub Transfer Agency Fees — Class A |  | @ |
| Payable for Sub Transfer Agency Fees — Class C |  | @ |
| 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 R6\* |  | @ |
| Payable for Administration Fees | 1 |  |
| Other Liabilities | 13 |  |
| **Total Liabilities** | 713 |  |
| **Net Assets** | $20503 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $18468 |  |
| Total Distributable Earnings | 2035 |  |
| **Net Assets** | $20503 |  |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Core Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $14324 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 989912 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $14.47 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $3978 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 277635 |
| **Net Asset Value, Redemption Price Per Share** | $14.33 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.79 |
| **Maximum Offering Price Per Share** | $15.12 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $2186 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 158534 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.79 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $15 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1057 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $14.48 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Core Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $8 of Foreign Taxes Withheld) | $288 |
| Dividends from Security of Affiliated Issuer (Note G) | 5 |
| Total Investment Income | 293 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 175 |
| Advisory Fees (Note B) | 152 |
| Registration Fees | 59 |
| Shareholder Services Fees — Class A (Note D) | 8 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 24 |
| Shareholder Reporting Fees | 17 |
| Administration Fees (Note C) | 16 |
| Transfer Agency Fees — Class I (Note E) | 2 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Sub Transfer Agency Fees — Class I | 4 |
| Sub Transfer Agency Fees — Class A | 2 |
| Sub Transfer Agency Fees — Class C | 2 |
| Custodian Fees (Note F) | 7 |
| Directors' Fees and Expenses | 5 |
| Pricing Fees | 3 |
| Other Expenses | 11 |
| Total Expenses | 495 |
| Waiver of Advisory Fees (Note B) | (152 |
| Expenses Reimbursed by Adviser (Note B) | (102 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 238 |
| **Net Investment Income** | 55 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (254 |
| Foreign Currency Translation | (— |
| Net Realized Loss | (254 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (4498 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (4498 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (4752 |
| Net Decrease in Net Assets Resulting from Operations | $(4697 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Core Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $55 | $(26 |
| Net Realized Gain (Loss) | (254 | 1062 |
| Net Change in Unrealized Appreciation (Depreciation) | (4498 | 1764 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (4697 | 2800 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (49 | (740 |
| **Class A** | (4 | (107 |
| **Class C** |  | (124 |
| **Class R6\*** | (— | (1 |
| Total Dividends and Distributions to Shareholders | (53 | (972 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 4339 | 8785 |
| Distributions Reinvested | 49 | 740 |
| Redeemed | (4526 | (2684 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 2214 | 776 |
| Distributions Reinvested | 4 | 107 |
| Redeemed | (339 | (303 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 982 | 575 |
| Distributions Reinvested |  | 124 |
| Redeemed | (1102 | (50 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed |  | 10 |
| Distributions Reinvested |  | 1 |
| Redeemed | (9 |  |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 1612 | 8081 |
| Total Increase (Decrease) in Net Assets | (3138 | 9909 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 23641 | 13732 |
| End of Period | $20503 | $23641 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 277 | 495 |
| Shares Issued on Distributions Reinvested | 3 | 43 |
| Shares Redeemed | (292 | (152 |
| Net Increase (Decrease) in Class I Shares Outstanding | (12 | 386 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 151 | 44 |
| Shares Issued on Distributions Reinvested |  | 6 |
| Shares Redeemed | (23 | (17 |
| Net Increase in Class A Shares Outstanding | 128 | 33 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 68 | 35 |
| Shares Issued on Distributions Reinvested |  | 7 |
| Shares Redeemed | (77 | (3 |
| Net Increase (Decrease) in Class C Shares Outstanding | (9 | 39 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed |  | 1 |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (1 |  |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (1 | 1 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.01 | $15.99 | $13.19 | $10.15 | $12.20 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.07 | 0.01 | 0.02 | 0.07 | 0.12 |
| Net Realized and Unrealized Gain (Loss) | (3.56) | 2.78 | 2.78 | 3.07 | (2.09) |
| Total from Investment Operations | (3.49) | 2.79 | 2.80 | 3.14 | (1.97) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.05) |  |  | (0.09) | (0.08) |
| Net Realized Gain |  | (0.77) |  |  |  |
| Paid-in-Capital |  |  |  | (0.01) |  |
| Total Distributions | (0.05) | (0.77) |  | (0.10) | (0.08) |
| **Net Asset Value, End of Period** | $14.47 | $18.01 | $15.99 | $13.19 | $10.15 |
| **Total Return<sup>(2)</sup>** | (19.37)% | 17.63% | 21.23% | 30.96% | (16.15)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $14324 | $18041 | $9849 | $8157 | $6738 |
| Ratio of Expenses Before Expense Limitation | 2.25% | 2.13% | 2.93% | 2.73% | 2.53% |
| Ratio of Expenses After Expense Limitation | 0.99%<sup>(3)</sup> | 0.99%<sup>(3)</sup> | 0.99%<sup>(3)</sup> | 0.98%<sup>(3)</sup> | 1.00%<sup>(3)</sup> |
| Ratio of Net Investment Income | 0.48%<sup>(3)</sup> | 0.06%<sup>(3)</sup> | 0.18%<sup>(3)</sup> | 0.61%<sup>(3)</sup> | 0.97%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 17% | 23% | 30% | 61% | 50% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $17.85 | $15.92 | $13.17 | $10.15 | $12.18 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.01 | (0.05) | (0.02) | 0.03 | 0.07 |
| Net Realized and Unrealized Gain (Loss) | (3.52) | 2.75 | 2.77 | 3.05 | (2.07) |
| Total from Investment Operations | (3.51) | 2.70 | 2.75 | 3.08 | (2.00) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.01) |  |  | (0.05) | (0.03) |
| Net Realized Gain |  | (0.77) |  |  |  |
| Paid-in-Capital |  |  |  | (0.01) |  |
| Total Distributions | (0.01) | (0.77) |  | (0.06) | (0.03) |
| **Net Asset Value, End of Period** | $14.33 | $17.85 | $15.92 | $13.17 | $10.15 |
| **Total Return<sup>(2)</sup>** | (19.64)% | 17.14% | 20.88% | 30.36% | (16.41)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $3978 | $2678 | $1869 | $2186 | $1320 |
| Ratio of Expenses Before Expense Limitation | 2.60% | 2.51% | 3.32% | 3.12% | 2.89% |
| Ratio of Expenses After Expense Limitation | 1.35%<sup>(3)</sup> | 1.35%<sup>(3)</sup> | 1.35%<sup>(3)</sup> | 1.35%<sup>(3)</sup> | 1.35%<sup>(3)</sup> |
| Ratio of Net Investment Income (Loss) | 0.09%<sup>(3)</sup> | (0.31)%<sup>(3)</sup> | (0.18)%<sup>(3)</sup> | 0.26%<sup>(3)</sup> | 0.62%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 17% | 23% | 30% | 61% | 50% |

---

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

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

(3) 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 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $17.29 | $15.55 | $12.97 | $10.02 | $12.08 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(1)</sup> | (0.09) | (0.18) | (0.12) | (0.05) | (0.01) |
| Net Realized and Unrealized Gain (Loss) | (3.41) | 2.69 | 2.70 | 3.00 | (2.05) |
| Total from Investment Operations | (3.50) | 2.51 | 2.58 | 2.95 | (2.06) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain |  | (0.77) |  |  |  |
| **Net Asset Value, End of Period** | $13.79 | $17.29 | $15.55 | $12.97 | $10.02 |
| **Total Return<sup>(2)</sup>** | (20.24)% | 16.32% | 19.89% | 29.44% | (17.05)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $2186 | $2893 | $1998 | $1448 | $1311 |
| Ratio of Expenses Before Expense Limitation | 3.38% | 3.25% | 4.11% | 3.92% | 3.66% |
| Ratio of Expenses After Expense Limitation | 2.10%<sup>(3)</sup> | 2.10%<sup>(3)</sup> | 2.10%<sup>(3)</sup> | 2.10%<sup>(3)</sup> | 2.10%<sup>(3)</sup> |
| Ratio of Net Investment Loss | (0.65)%<sup>(3)</sup> | (1.06)%<sup>(3)</sup> | (0.94)%<sup>(3)</sup> | (0.45)%<sup>(3)</sup> | (0.05)%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 17% | 23% | 30% | 61% | 50% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.01 | $15.99 | $13.18 | $10.15 | $12.20 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.08 | 0.02 | 0.03 | 0.07 | 0.13 |
| Net Realized and Unrealized Gain (Loss) | (3.55) | 2.77 | 2.78 | 3.06 | (2.09) |
| Total from Investment Operations | (3.47) | 2.79 | 2.81 | 3.13 | (1.96) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.06) |  |  | (0.09) | (0.09) |
| Net Realized Gain |  | (0.77) |  |  |  |
| Paid-in-Capital |  |  |  | (0.01) |  |
| Total Distributions | (0.06) | (0.77) |  | (0.10) | (0.09) |
| **Net Asset Value, End of Period** | $14.48 | $18.01 | $15.99 | $13.18 | $10.15 |
| **Total Return<sup>(3)</sup>** | (19.28)% | 17.55% | 21.40% | 30.90% | (16.10)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $15 | $29 | $16 | $13 | $10 |
| Ratio of Expenses Before Expense Limitation | 15.01% | 13.09% | 18.19% | 18.98% | 19.09% |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> |
| Ratio of Net Investment Income | 0.49%<sup>(4)</sup> | 0.10%<sup>(4)</sup> | 0.22%<sup>(4)</sup> | 0.63%<sup>(4)</sup> | 1.06%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 17% | 23% | 30% | 61% | 50% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Core Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Airlines | $128 | $— | $— | $128 |
| Automobiles | 933 |  |  | 933 |
| Banks | 2407 |  |  | 2407 |
| Beverages | 791 |  |  | 791 |
| Building Products | 225 |  |  | 225 |
| Capital Markets | 756 |  |  | 756 |
| Commercial Services & <br>Supplies | 57 |  |  | 57 |
| Construction Materials | 916 |  |  | 916 |
| Distributors | 348 |  |  | 348 |
| Diversified <br>Telecommunication <br>Services | 497 |  |  | 497 |
| Electric Utilities | 615 |  |  | 615 |
| Entertainment | 610 |  |  | 610 |
| Equity Real Estate <br>Investment <br>Trusts (REITs) | 302 |  |  | 302 |
| Health Care Technology | 103 |  |  | 103 |
| Hotels, Restaurants & <br>Leisure | 1026 |  |  | 1026 |
| Household Durables | 53 |  |  | 53 |
| Information Technology <br>Services | 570 |  |  | 570 |
| Insurance | 347 |  |  | 347 |
| Interactive Media & <br>Services | 737 |  |  | 737 |
| Internet & Direct <br>Marketing Retail | 74 |  |  | 74 |
| Life Sciences Tools & <br>Services | 824 |  |  | 824 |
| Metals & Mining | 48 |  |  | 48 |
| Multi-Line Retail | 249 |  |  | 249 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Oil, Gas & Consumable <br>Fuels | $1311 | $— | $— | $1311 |
| Personal Products | 363 |  |  | 363 |
| Professional Services | 283 |  |  | 283 |
| Semiconductors & <br>Semiconductor <br>Equipment | 695 |  |  | 695 |
| Software | 1230 |  |  | 1230 |
| Specialty Retail | 264 |  |  | 264 |
| Tech Hardware, Storage & <br>Peripherals | 1377 |  |  | 1377 |
| Textiles, Apparel & Luxury <br>Goods | 550 | 1014 |  | 1564 |
| Trading Companies & <br>Distributors | 463 |  |  | 463 |
| **Total Common Stocks** | **19152** | **1014** | **—** | **20166** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 726 |  |  | 726 |
| **Total Assets** | $**19878** | $**1014** | $**—** | $**20892** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**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 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 $750<br>million** | **Next $750<br>million** | **Over $1.5<br>billion** |
| 0.75% | 0.70% | 0.65% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 1.00% for Class I shares, 1.35% for Class A shares,

2.10% for Class C shares and 0.95% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $152,000 of advisory fees were waived and approximately $105,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $4,932,000 and $3,381,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by less 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment <br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $421 | $5682 | $5377 | $5 |

---

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| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment <br>Company (cont'd)** | **Realized<br>Gain <br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $726 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 December 31, 2022, 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 2022 and 2021 was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **2022 <br>Distributions<br>Paid From:** | **2022 <br>Distributions<br>Paid From:** | **2022 <br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Paid-in<br>Capital<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $51 | $— | $2 | $— | $972 |

---

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 distribution in excess of current earnings, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Distributable<br>Earnings <br>(000)** | **Paid-in-<br>Capital <br>(000)** |
| $1 | $(1) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $149,000 and $110,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 61.3%.

**K. Market Risk:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**L. Results of Special Meeting of Shareholders (unaudited):**On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Core Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Core Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279211_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 100% of the dividends qualified for the dividends received deduction.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $51,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

---

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279211_za006.jpg)

IFIGCPANN<br>5444261 EXP 02.29.24

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![](j23279212_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Endurance Portfolio

Annual Report

December 31, 2022

![](j23279212_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 6 |
| Statement of Assets and Liabilities | 7 |
| Statement of Operations | 8 |
| Statements of Changes in Net Assets | 9 |
| Financial Highlights | 10 |
| Notes to Financial Statements | 14 |
| Report of Independent Registered Public Accounting Firm | 22 |
| Liquidity Risk Management Program | 23 |
| U.S. Customer Privacy Notice | 24 |
| Director and Officer Information | 27 |

---

***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279212_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Endurance Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Endurance Portfolio Class I | $1000.00 | $832.90 | $1020.16 | $4.62 | $5.09 | 1.00% |
| Global Endurance Portfolio Class A | 1000.00 | 830.80 | 1018.40 | 6.23 | 6.87 | 1.35 |
| Global Endurance Portfolio Class C | 1000.00 | 828.10 | 1014.62 | 9.68 | 10.66 | 2.10 |
| Global Endurance Portfolio Class R6<sup>(1)</sup> | 1000.00 | 833.00 | 1020.42 | 4.39 | 4.84 | 0.95 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Endurance Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –66.23%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World Net Index (the "Index"), which returned –18.36%.

**Factors Affecting Performance**

• In 2022, global equities suffered their worst year since the 2008 Global Financial Crisis (as measured by the Index), as concerns about rising interest rates, inflation and geopolitical tensions weighed significantly on share prices around the world.

• Global equities declined in the 12-month period, as measured by the Index. All sectors had negative performance except energy, which posted a high double-digit return. The weakest performing sectors were communication services, consumer discretionary and information technology.

• Counterpoint Global manages concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period due to unfavorable stock selection; sector allocations detracted to a lesser extent.

• Consumer discretionary was the largest detractor from relative performance, as both stock selection and a sector overweight were detrimental. The portfolio's stock selection in and sector allocations to most sectors diminished relative performance as well; information technology, health care, communication services were also among the main detractors. Although an underweight in communication services was a small positive

contributor, the impact to relative performance was negligible given the Fund's relative underperformance.

• While macro factors may be driving investor sentiment and performance over the short term, we continue to believe company fundamentals will drive equity returns over the long term and the fundamentals of our holdings have largely remained healthy and in line with our expectations. We continue to believe these headwinds are unlikely to materially impact the long-term cash generation and intrinsic value of the types of businesses we own. As a result, we believe the businesses, particularly now, are undervalued compared to their long-term growth potential.

**Management Strategies**

• The MSIF Global Endurance Portfolio seeks to deliver above-average returns by making long-term investments in a select group of established and emerging companies located primarily in developed markets. We focus on companies that we believe have valuable business models, provide meaningful products and services to end customers, and can grow intrinsic value over time. Our investments are based upon company-specific fundamentals and our expectations of the businesses' long-term growth potential, not upon quarterly earnings, market volatility or non-fundamental, macro factors.

• We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. Sector and geographic weights are a result of the stock selection process and change over time based on our assessment of the opportunity set. Given our philosophy and bottom-up approach, performance is primarily driven by stock selection.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Endurance Portfolio**

![](j23279212_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on December 31, 2018.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI All Country World Net Index<sup>(1)</sup> and the Lipper Global Small-/Mid-Cap Funds Index<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –66.23% |  |  | 0.32% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –66.38 |  |  | –0.07 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –68.14 |  |  | –1.40 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –66.58 |  |  | –0.77 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(4)</sup> | –66.91 |  |  | –0.77 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –66.23 |  |  | 0.35 |
| MSCI All Country World Net Index | –18.36 |  |  | 9.24 |
| Lipper Global Small-/Mid-Cap <br>Funds Index | –22.33 |  |  | 8.48 |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Small-/Mid-Cap Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Small-/Mid-Cap Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Small-/Mid-Cap Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on December 31, 2018. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Endurance Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (99.9%)** | **Common Stocks (99.9%)** | **Common Stocks (99.9%)** |
| Canada (9.9%) | Canada (9.9%) | Canada (9.9%) |
| Colliers International Group, Inc. | 5923 | $544 |
| Constellation Software, Inc. | 551 | 860 |
| Shopify, Inc., Class A (a) | 18442 | 640 |
|  |  | 2044 |
| France (1.9%) | France (1.9%) | France (1.9%) |
| Eurofins Scientific SE | 5345 | 384 |
| Israel (7.3%) | Israel (7.3%) | Israel (7.3%) |
| Global-e Online Ltd. (a) | 72426 | 1495 |
| Netherlands (3.1%) | Netherlands (3.1%) | Netherlands (3.1%) |
| Basic-Fit NV (a) | 23994 | 631 |
| Singapore (1.2%) | Singapore (1.2%) | Singapore (1.2%) |
| Sea Ltd. ADR (a) | 4989 | 260 |
| Sweden (1.4%) | Sweden (1.4%) | Sweden (1.4%) |
| Paradox Interactive AB | 13777 | 280 |
| United Kingdom (16.3%) | United Kingdom (16.3%) | United Kingdom (16.3%) |
| Babcock International Group PLC (a) | 334366 | 1143 |
| Victoria PLC (a) | 380049 | 2217 |
|  |  | 3360 |
| United States (58.8%) | United States (58.8%) | United States (58.8%) |
| Adobe, Inc. (a) | 974 | 328 |
| Affirm Holdings, Inc. (a) | 42763 | 413 |
| Alphabet, Inc., Class A (a) | 3916 | 345 |
| Appian Corp., Class A (a) | 39918 | 1300 |
| Bill.Com Holdings, Inc. (a) | 8891 | 969 |
| Carvana Co. (a) | 140371 | 665 |
| Cricut, Inc., Class A (a) | 305396 | 2831 |
| DraftKings, Inc., Class A (a) | 19099 | 218 |
| Fastly, Inc., Class A (a) | 104546 | 856 |
| Floor & Decor Holdings, Inc., Class A (a) | 22690 | 1580 |
| HubSpot, Inc. (a) | 1490 | 431 |
| Meta Platforms, Inc., Class A (a) | 2476 | 298 |
| ProKidney Corp. (a) | 7121 | 49 |
| Royalty Pharma PLC, Class A | 24988 | 988 |
| Salesforce, Inc. (a) | 6294 | 834 |
|  |  | 12105 |
| **Total Common Stocks (Cost $39,913)** | **Total Common Stocks (Cost $39,913)** | 20559 |
| **Short-Term Investment (0.1%)** | **Short-Term Investment (0.1%)** | **Short-Term Investment (0.1%)** |
| Investment Company (0.1%) | Investment Company (0.1%) | Investment Company (0.1%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $14)** | 13733 | 14 |
| **Total Investments (100.0%) (Cost $39,927) (b)(c)** | **Total Investments (100.0%) (Cost $39,927) (b)(c)** | 20573 |
| Other Assets in Excess of Liabilities (0.0%) (d) | Other Assets in Excess of Liabilities (0.0%) (d) | 8 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $20581 |

---

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

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $4,655,000 and 22.6%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(c) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $45,307,000. The aggregate gross unrealized appreciation is approximately $0 and the aggregate gross unrealized depreciation is approximately $24,734,000, resulting in net unrealized depreciation of approximately $24,734,000.

(d) Amount is less than 0.05%.

ADR American Depositary Receipt.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Household Durables | 24.5% |
| Software | 22.9 |
| Other\* | 19.5 |
| Specialty Retail | 10.9 |
| Information Technology Services | 9.3 |
| Internet & Direct Marketing Retail | 7.3 |
| Aerospace & Defense | 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.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Endurance Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $39,913) | $20559 |
| Investment in Security of Affiliated Issuer, at Value (Cost $14) | 14 |
| Total Investments in Securities, at Value (Cost $39,927) | 20573 |
| Foreign Currency, at Value (Cost $2) | 2 |
| Due from Adviser | 38 |
| Receivable for Fund Shares Sold | 7 |
| Dividends Receivable | 1 |
| Receivable from Affiliate |  |
| Other Assets | 49 |
| **Total Assets** | 20670 |
| **Liabilities:** | **Liabilities:** |
| Payable for Professional Fees | 57 |
| Payable for Custodian Fees | 7 |
| Payable for Transfer Agency Fees — Class I | 2 |
| Payable for Transfer Agency Fees — Class A | 1 |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Payable for Sub Transfer Agency Fees — Class I | 2 |
| Payable for Sub Transfer Agency Fees — Class A | 1 |
| Payable for Sub Transfer Agency Fees — Class C |  |
| Payable for Shareholder Services Fees — Class A | 1 |
| Payable for Distribution and Shareholder Services Fees — Class C |  |
| Payable for Administration Fees | 1 |
| Other Liabilities | 17 |
| **Total Liabilities** | 89 |
| **Net Assets** | $20581 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $83447 |
| Total Accumulated Loss | (62866 |
| **Net Assets** | $20581 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $17152 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1830702 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.37 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $2898 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 313804 |
| **Net Asset Value, Redemption Price Per Share** | $9.23 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.51 |
| **Maximum Offering Price Per Share** | $9.74 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $519 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 57935 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $8.96 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $12 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1283 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.38 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Endurance Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $2 of Foreign Taxes Withheld) | $51 |
| Dividends from Security of Affiliated Issuer (Note G) | 3 |
| Total Investment Income | 54 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 330 |
| Professional Fees | 153 |
| Registration Fees | 72 |
| Administration Fees (Note C) | 33 |
| Sub Transfer Agency Fees — Class I | 24 |
| Sub Transfer Agency Fees — Class A | 3 |
| Sub Transfer Agency Fees — Class C | 1 |
| Shareholder Reporting Fees | 22 |
| Transfer Agency Fees — Class I (Note E) | 9 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Shareholder Services Fees — Class A (Note D) | 10 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 7 |
| Custodian Fees (Note F) | 15 |
| Directors' Fees and Expenses | 5 |
| Pricing Fees | 3 |
| Interest Expenses | 1 |
| Other Expenses | 19 |
| Total Expenses | 715 |
| Waiver of Advisory Fees (Note B) | (261 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (15 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (— |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (1 |
| Net Expenses | 434 |
| **Net Investment Loss** | (380 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (40275 |
| Foreign Currency Translation | (3 |
| Net Realized Loss | (40278 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (12509 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (12509 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (52787 |
| Net Decrease in Net Assets Resulting from Operations | $(53167 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Endurance Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(380 | $(558 |
| Net Realized Gain (Loss) | (40278 | 876 |
| Net Change in Unrealized Appreciation (Depreciation) | (12509 | (11333 |
| Net Decrease in Net Assets Resulting from Operations | (53167 | (11015 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** |  | (3258 |
| **Class A** |  | (249 |
| **Class C** |  | (73 |
| **Class R6\*** |  | (1 |
| Total Dividends and Distributions to Shareholders |  | (3581 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 15697 | 100653 |
| Distributions Reinvested |  | 3258 |
| Redeemed | (21483 | (27595 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 4361 | 8642 |
| Distributions Reinvested |  | 249 |
| Redeemed | (2038 | (5503 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 331 | 2650 |
| Distributions Reinvested |  | 73 |
| Redeemed | (417 | (1320 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 2 |  |
| Distributions Reinvested |  | 1 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (3547 | 81108 |
| Total Increase (Decrease) in Net Assets | (56714 | 66512 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 77295 | 10783 |
| End of Period | $20581 | $77295 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 899 | 2989 |
| Shares Issued on Distributions Reinvested |  | 118 |
| Shares Redeemed | (1608 | (863 |
| Net Increase (Decrease) in Class I Shares Outstanding | (709 | 2244 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 237 | 258 |
| Shares Issued on Distributions Reinvested |  | 9 |
| Shares Redeemed | (114 | (170 |
| Net Increase in Class A Shares Outstanding | 123 | 97 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 25 | 80 |
| Shares Issued on Distributions Reinvested |  | 3 |
| Shares Redeemed | (25 | (42 |
| Net Increase in Class C Shares Outstanding |  | 41 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed |  |  |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class R6 Shares Outstanding |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Endurance Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **Period Ended**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $27.75 | $26.51 | $13.03 | $9.98 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.13) | (0.28) | (0.09) | (0.05) | (0.00)<sup>(3)</sup> |
| Net Realized and Unrealized Gain (Loss) | (18.25) | 2.82 | 14.41 | 3.10 | (0.02) |
| Total from Investment Operations | (18.38) | 2.54 | 14.32 | 3.05 | (0.02) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.02) | (0.03) |  |  |
| Net Realized Gain |  | (1.28) | (0.81) |  |  |
| Total Distributions |  | (1.30) | (0.84) |  |  |
| **Net Asset Value, End of Period** | $9.37 | $27.75 | $26.51 | $13.03 | $9.98 |
| **Total Return<sup>(4)</sup>** | (66.23)% | 9.59% | 110.03% | 30.30% | 0.00%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $17152 | $70478 | $7854 | $2757 | $2017 |
| Ratio of Expenses Before Expense Limitation | 1.67% | 1.34% | 5.12% | 14.17% | 913.94%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.00%<sup>(5)</sup> | 0.99%<sup>(5)</sup> | 1.00%<sup>(5)</sup> | 1.00%<sup>(5)</sup> | 1.00%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.00%<sup>(5)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (0.87)%<sup>(5)</sup> | (0.85)%<sup>(5)</sup> | (0.52)%<sup>(5)</sup> | (0.42)%<sup>(5)</sup> | (1.00)%<sup>(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | N/A |
| Portfolio Turnover Rate | 67% | 75% | 46% | 74% | 0%<sup>(7)</sup> |

---

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Endurance Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **Period Ended**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $27.45 | $26.33 | $12.99 | $9.98 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.17) | (0.38) | (0.19) | (0.09) | (0.00)<sup>(3)</sup> |
| Net Realized and Unrealized Gain (Loss) | (18.05) | 2.80 | 14.34 | 3.10 | (0.02) |
| Total from Investment Operations | (18.22) | 2.42 | 14.15 | 3.01 | (0.02) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.02) | (0.00)<sup>(3)</sup> |  |  |
| Net Realized Gain |  | (1.28) | (0.81) |  |  |
| Total Distributions |  | (1.30) | (0.81) |  |  |
| **Net Asset Value, End of Period** | $9.23 | $27.45 | $26.33 | $12.99 | $9.98 |
| **Total Return<sup>(4)</sup>** | (66.38)% | 9.20% | 109.10% | 29.90% | 0.00%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $2898 | $5239 | $2462 | $13 | $10 |
| Ratio of Expenses Before Expense Limitation | 1.99% | 1.70% | 5.67% | 29.52% | 927.90%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.35%<sup>(5)</sup> | 1.35%<sup>(5)</sup> | 1.35%<sup>(5)</sup> | 1.35%<sup>(5)</sup> | 1.35%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.35%<sup>(5)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (1.22)%<sup>(5)</sup> | (1.16)%<sup>(5)</sup> | (0.86)%<sup>(5)</sup> | (0.77)%<sup>(5)</sup> | (1.35)%<sup>(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | N/A |
| Portfolio Turnover Rate | 67% | 75% | 46% | 74% | 0%<sup>(7)</sup> |

---

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Endurance Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **Period Ended** <br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $26.81 | $25.93 | $12.89 | $9.98 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.28) | (0.62) | (0.33) | (0.18) | (0.00)<sup>(3)</sup> |
| Net Realized and Unrealized Gain (Loss) | (17.57) | 2.80 | 14.18 | 3.09 | (0.02) |
| Total from Investment Operations | (17.85) | 2.18 | 13.85 | 2.91 | (0.02) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.02) |  |  |  |
| Net Realized Gain |  | (1.28) | (0.81) |  |  |
| Total Distributions |  | (1.30) | (0.81) |  |  |
| **Net Asset Value, End of Period** | $8.96 | $26.81 | $25.93 | $12.89 | $9.98 |
| **Total Return<sup>(4)</sup>** | (66.58)% | 8.41% | 107.59% | 28.90% | 0.00%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $519 | $1547 | $439 | $13 | $10 |
| Ratio of Expenses Before Expense Limitation | 3.05% | 2.53% | 7.61% | 30.23% | 928.63%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 2.10%<sup>(5)</sup> | 2.10%<sup>(5)</sup> | 2.10%<sup>(5)</sup> | 2.10%<sup>(5)</sup> | 2.10%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.10%<sup>(5)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (1.97)%<sup>(5)</sup> | (1.92)%<sup>(5)</sup> | (1.62)%<sup>(5)</sup> | (1.52)%<sup>(5)</sup> | (2.10)%<sup>(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | N/A |
| Portfolio Turnover Rate | 67% | 75% | 46% | 74% | 0%<sup>(7)</sup> |

---

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Endurance Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **Period Ended** <br>**December 31, 2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $27.78 | $26.53 | $13.04 | $9.98 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.12) | (0.24) | (0.08) | (0.04) | (0.00)<sup>(4)</sup> |
| Net Realized and Unrealized Gain (Loss) | (18.28) | 2.79 | 14.41 | 3.10 | (0.02) |
| Total from Investment Operations | (18.40) | 2.55 | 14.33 | 3.06 | (0.02) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.02) | (0.03) |  |  |
| Net Realized Gain |  | (1.28) | (0.81) |  |  |
| Total Distributions |  | (1.30) | (0.84) |  |  |
| **Net Asset Value, End of Period** | $9.38 | $27.78 | $26.53 | $13.04 | $9.98 |
| **Total Return<sup>(5)</sup>** | (66.23)% | 9.62% | 110.08% | 30.40% | 0.00%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $12 | $31 | $28 | $13 | $10 |
| Ratio of Expenses Before Expense Limitation | 15.13% | 7.59% | 16.93% | 29.13% | 927.65%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(6)</sup> | 0.95%<sup>(6)</sup> | 0.95%<sup>(6)</sup> | 0.95%<sup>(6)</sup> | 0.95%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.95%<sup>(6)</sup> | N/A | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (0.82)%<sup>(6)</sup> | (0.71)%<sup>(6)</sup> | (0.47)%<sup>(6)</sup> | (0.37)%<sup>(6)</sup> | (0.95)%<sup>(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | N/A |
| Portfolio Turnover Rate | 67% | 75% | 46% | 74% | 0%<sup>(8)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Endurance Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"), which clarifies the guidance in ASC Topic No. 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and introduces new disclosures related to such equity security. ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security's fair value (i.e., the entity should not apply a discount related to the contractual sale restriction, as stated in ASC 820-10-35-36B as amended by ASU 2022-03). In addition, ASU 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. The new guidance is effective for public companies with annual reporting periods in fiscal years beginning after December 15, 2023, and interim periods in the following year, with early adoption permitted. At this time, management is currently evaluating the impact of ASU 2022-03.

**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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; (6) Private Investment in Public Equity ("PIPE") investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** FASB ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $— | $1143 | $— | $1143 |
| Biotechnology | 49 |  |  | 49 |
| Entertainment | 260 | 280 |  | 540 |
| Hotels, Restaurants & <br>Leisure | 218 | 631 |  | 849 |
| Household Durables | 2831 | 2217 |  | 5048 |
| Information Technology <br>Services | 1909 |  |  | 1909 |
| Interactive Media & <br>Services | 643 |  |  | 643 |
| Internet & Direct <br>Marketing Retail | 1495 |  |  | 1495 |
| Life Sciences Tools & <br>Services |  | 384 |  | 384 |
| Pharmaceuticals | 988 |  |  | 988 |
| Real Estate <br>Management & <br>Development | 544 |  |  | 544 |
| Software | 4722 |  |  | 4722 |
| Specialty Retail | 2245 |  |  | 2245 |
| **Total Common Stocks** | **15904** | **4655** | **—** | **20559** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 14 |  |  | 14 |
| **Total Assets** | $**15918** | $**4655** | $**—** | $**20573** |

---

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 fluc-

tuations 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 U.S. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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:

**Private Investment in Public Equity:** 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.

As of December 31, 2022, the Fund did not have any open PIPE contract.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Derivative Contract — PIPE:** | **Derivative Contract — PIPE:** |
| Average monthly notional amount  | $99000 |

---

**5. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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<br>billion** | **Over $1<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.17% 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 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $261,000 of advisory fees were waived and approximately $19,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's

Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

were approximately $30,635,000 and $27,805,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $— | $24658 | $24644 | $3 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $14 |

---

During the year ended December 31, 2022, the Fund incurred less than $500 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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. Each of the tax years in the four-year period ended December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022 <br>Distributions<br>Paid From:** | **2022 <br>Distributions<br>Paid From:** | **2021 <br>Distributions<br>Paid From:** | **2021 <br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $— | $2122 | $1459 |

---

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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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 a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $345 | $(345) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $959,000 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.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified<br>Late Year<br>Ordinary<br>Losses<br>(000)** | **Post-<br>October<br>Capital<br>Losses<br>(000)** |
| $— | $37157 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During

the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 36.9%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**Special Purpose Acquisition Companies ("SPAC"):** The Fund may invest in stock, warrants, and other securities of SPACs or similar special purpose entities. A SPAC is typically

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 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 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. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Endurance Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Endurance Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended and the period from December 31, 2018 (commencement of operations) through December 31, 2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the four years in the period then ended and the period from December 31, 2018 (commencement of operations) through December 31, 2018, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279212_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

------

Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279212_za006.jpg)

IFIGENDANN<br>5443406 EXP 02.29.24

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![](j23279213_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Focus Real Estate Portfolio

Annual Report

December 31, 2022

![](j23279213_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

---

| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 7 |
| Statement of Assets and Liabilities | 9 |
| Statement of Operations | 10 |
| Statements of Changes in Net Assets | 11 |
| Financial Highlights | 12 |
| Notes to Financial Statements | 16 |
| Report of Independent Registered Public Accounting Firm | 23 |
| Liquidity Risk Management Program | 24 |
| Federal Tax Notice | 25 |
| U.S. Customer Privacy Notice | 26 |
| Director and Officer Information | 29 |

---

***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279213_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Focus Real Estate Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Focus Real Estate Portfolio Class I | $1000.00 | $923.30 | $1020.37 | $4.65 | $4.89 | 0.96% |
| Global Focus Real Estate Portfolio Class A | 1000.00 | 922.80 | 1018.65 | 6.30 | 6.61 | 1.30 |
| Global Focus Real Estate Portfolio Class C | 1000.00 | 918.70 | 1014.87 | 9.91 | 10.41 | 2.05 |
| Global Focus Real Estate Portfolio Class R6<sup>(1)</sup> | 1000.00 | 923.70 | 1020.67 | 4.36 | 4.58 | 0.90 |

---

\* 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 184/365 (to reflect the actual days in the period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Focus Real Estate Portfolio**

The Fund seeks to provide current income and long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –27.10%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the FTSE EPRA Nareit Developed Extended Net Total Return Index (the "Index"), which returned –25.28%.

**Factors Affecting Performance**

• Global real estate securities declined 25.3% during the 12-month period ending December 31, 2022, as measured by the Index. Amid a down market primarily dominated by inflation and related concerns — recession, rising interest rates — the real estate sector underperformed the broader equity markets.

• North American property stocks declined 25.8% for the year as measured by the FTSE EPRA Nareit North America Extended Net Total Return Index,<sup>(i)</sup> performing in line with the broader real estate market.

o The Federal Reserve (Fed) announced its first interest rate hike of 25 basis points (bps) in the first quarter of 2022, followed by more aggressive rate hikes in increments of 50 and 75 bps, surprising the market and investors.<sup>(ii)</sup> The aggressive monetary policy tightening was negative for risk assets, including real estate, and led to negative absolute performance for real estate investment trusts (REITs).

o The Fund's security selection in retail, apartments and industrial, and the underweight to office were the top relative contributors for the year. Key detractors included security

selection in data centers and Canada, the underweight to gaming net lease, and overweight to towers.

• Within Asia, property stocks returned –11.4% for the year, as measured by the FTSE EPRA Nareit Developed Asia Net Total Return Index,<sup>(i)</sup> outperforming global real estate securities for the year.

o The COVID-19 outbreak and tight pandemic policies in Asia, particularly in Hong Kong and mainland China (which led to lockdowns across the country) negatively impacted economic activity for most of the year. Geopolitical tensions further weighed on investor sentiment, exacerbating supply chain disruptions and aggravating inflation issues. By the second half of 2022, Australia and Japan lifted COVID restrictions, boosting tourism by lifting travel restrictions and accelerating in-person activities, including shopping and dining. Late in the year, Hong Kong and China followed, as the Communist Party of China successfully completed the 20<sup>th</sup> National Congress in October, and quickly reversed the dynamic zero-COVID policy in an attempt to reverse economic declines. Within the Index, Hong Kong and Singapore outperformed and Australia and Japan underperformed.

o The Fund's security selection in Japan was a relative key contributor for the year. Key detractors included security selection in Australia, Hong Kong and Singapore.

• European property stocks returned –40.9% for the year, as measured by the FTSE EPRA Nareit Developed Europe Net Total Return Index,<sup>(i)</sup> underperforming the broader real estate market.

<sup>(i)</sup> The FTSE EPRA Nareit North America Extended Net Total Return Index is a subset of the FTSE EPRA Nareit Developed Extended Net Total Return Index and is a free float-adjusted market capitalization weighted index composed of listed real estate securities in the North American (U.S. and Canada) real estate market. The FTSE EPRA Nareit Developed Asia Net Total Return Index is a subset of the FTSE EPRA Nareit Developed Extended Net Total Return Index and is a free float-adjusted market capitalization weighted index composed of listed real estate securities in the Asian real estate markets. The FTSE EPRA Nareit Developed Europe Net Total Return Index is a subset of the FTSE EPRA Nareit Developed Extended Net Total Return Index and is a free float-adjusted market capitalization weighted index composed of listed real estate securities in the European real estate markets. The performance of the indexes is listed in U.S. dollars and assume reinvestment of dividends. The indexes are unmanaged, and their returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index. Data as of December 31, 2022.

<sup>(ii)</sup> One basis point = 0.01%

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Focus Real Estate Portfolio**

o In Europe, inflation and the ongoing war in Ukraine were the two dominant themes in 2022. These factors fueled significant market uncertainty and put upward pressure on interest rates across Europe. Markets remained volatile as investors tried to gauge the impact on European economic growth and inflation and appraise the risk of military escalation. Within the Index, Austria, Ireland and Switzerland outperformed, while Germany, Norway and Sweden underperformed.

o Key Fund contributors included the underweights to Germany and Sweden, and security selection in France. Key detractors were the overweight to the U.K., security selection in and the overweight to the Netherlands, and zero position in Switzerland.

**Management Strategies**

• The team uses internal proprietary research to invest in public real estate companies that we believe offer the best value relative to their underlying assets and growth prospects. The team combines a bottom-up approach, assessing the intrinsic value, equity multiples and growth prospects of each security, with a top-down view that incorporates fundamental inflection points, macroeconomic considerations, and geopolitical and country risk, and actively selects positions in a limited number of equity securities. By incorporating both an equity market valuation and a more traditional real estate valuation with a top-down overlay, we believe the Fund will be better prepared to identify securities with the best expected total returns.

• Forecasted returns for the listed real estate asset class have deteriorated in the intermediate term given the more challenging macro backdrop. However, we believe relative strength in cash flows can be expected given the unique nature of listed real estate. Specifically, the contracted rental streams with inflation-linked escalations and the necessity-based nature of real estate — the listed real estate market evolves and grows with the broader needs of society and the economy and sits at the epicenter of

how people live, work, shop and communicate — coupled with limited new real estate supply additions due to rising construction costs, may portend limited downside in cash flows and support more resiliency in fundamentals, despite near-term macro uncertainty. While our cash flow growth estimates have been reduced for 2023 in light of our expectation for lower gross domestic product growth and a potential recession, we still forecast attractive cash flow growth rates for REITs.

• Real estate values are ultimately a function of supply, demand and credit. With demand moderating due to slowing growth and credit markets tightening with increasing interest rates, real estate values within the public markets have suffered. In fact, despite the inflation protection typically associated with the listed real estate sector, REITs underperformed the broader equities market. At the same time, and as is often the case, values within the private markets are taking longer to adjust. The appraisal-based nature of private real estate typically lags public valuations by approximately 12 months, while the daily pricing and volatility of listed real estate typically results in overcorrections in the public markets, which may create an interesting arbitrage opportunity as there may be some potential contraction in private real estate values and potential appreciation in public real estate. While credit markets remain tight, the trajectory of Fed rate hikes is expected to slow, allowing for normalization in lending, spreads and real estate capitalization rates. Ultimately, we believe the growth profile and values of REITs should hold up better than broader equities and private real estate over the next year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Focus Real Estate Portfolio**

![](j23279213_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on July 30, 2021.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the FTSE EPRA Nareit Developed Extended Net Total Return Index** **<sup>(1)</sup>** **and the Lipper Global Real Estate Funds Index** **<sup>(2)</sup>**

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| | | | |
|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** |
|<br>**One Five Ten Since** |<br>**Year** | **Years** | **Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –27.10% |  | –16.92% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –27.38 |  | –17.23 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –31.18 |  | –20.29 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –27.91 |  | –17.83 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> | –28.63 |  | –17.83 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –27.06 |  | –16.89 |
| FTSE EPRA Nareit Developed <br>Extended Net Total Return Index | –25.28 |  | –15.16 |
| Lipper Global Real Estate <br>Funds Index | –25.28 |  | –15.33 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The FTSE EPRA Nareit Developed Extended Net Total Return Index is a market capitalization weighted index designed to represent general trends in eligible real estate stocks worldwide. The FTSE EPRA Nareit Developed Extended Index represents the extension of real estate property sectors (e.g. Infrastructure and Timber) and additional securities beyond what is currently eligible for the FTSE EPRA Nareit Developed Index based on membership in the FTSE Nareit All Equity REITs Index. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on July 30, 2021. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Focus Real Estate Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.4%)** | **Common Stocks (98.4%)** | **Common Stocks (98.4%)** |
| Australia (2.5%) | Australia (2.5%) | Australia (2.5%) |
| National Storage REIT | 21077 | $33 |
| Region RE Ltd. REIT | 10902 | 20 |
| Scentre Group REIT | 21228 | 42 |
|  |  | 95 |
| Belgium (1.0%) | Belgium (1.0%) | Belgium (1.0%) |
| Aedifica SA REIT | 482 | 39 |
| Canada (2.6%) | Canada (2.6%) | Canada (2.6%) |
| Chartwell Retirement Residences (Units) (a) | 3620 | 23 |
| RioCan REIT | 5059 | 79 |
|  |  | 102 |
| France (1.0%) | France (1.0%) | France (1.0%) |
| Mercialys SA REIT | 3581 | 38 |
| Germany (0.8%) | Germany (0.8%) | Germany (0.8%) |
| Vonovia SE | 1318 | 31 |
| Hong Kong (6.3%) | Hong Kong (6.3%) | Hong Kong (6.3%) |
| Hongkong Land Holdings Ltd. | 8500 | 39 |
| Link REIT | 9900 | 72 |
| Sun Hung Kai Properties Ltd. | 4500 | 62 |
| Wharf Real Estate Investment Co., Ltd. | 11500 | 67 |
|  |  | 240 |
| Japan (10.0%) | Japan (10.0%) | Japan (10.0%) |
| Invincible Investment Corp. REIT | 171 | 66 |
| Japan Metropolitan Fund Investment Corp. REIT | 77 | 61 |
| Japan Real Estate Investment Corp. REIT | 7 | 31 |
| Mitsubishi Estate Logistics Investment Corp. REIT | 16 | 52 |
| Mitsui Fudosan Co., Ltd. | 5700 | 104 |
| Mitsui Fudosan Logistics Park, Inc. REIT | 8 | 29 |
| Nippon Building Fund, Inc. REIT (b) | 9 | 40 |
|  |  | 383 |
| Netherlands (0.8%) | Netherlands (0.8%) | Netherlands (0.8%) |
| NSI NV REIT | 1216 | 30 |
| Singapore (2.1%) | Singapore (2.1%) | Singapore (2.1%) |
| CapitaLand Integrated Commercial Trust REIT | 41500 | 63 |
| Digital Core Management Pte Ltd. REIT | 34700 | 19 |
|  |  | 82 |
| Spain (1.3%) | Spain (1.3%) | Spain (1.3%) |
| Merlin Properties Socimi SA REIT | 5373 | 50 |
| Sweden (1.3%) | Sweden (1.3%) | Sweden (1.3%) |
| Castellum AB | 1656 | 20 |
| Catena AB | 750 | 28 |
|  |  | 48 |
| United Kingdom (3.3%) | United Kingdom (3.3%) | United Kingdom (3.3%) |
| Derwent London PLC REIT | 668 | 19 |
| Helical PLC | 2351 | 10 |
| Impact Healthcare PLC REIT | 15220 | 19 |

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| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| Segro PLC REIT | 4381 | $| 40 |
| UNITE Group PLC REIT | 3565 |  | 39 |
|  |  |  | 127 |
| United States (65.4%) | United States (65.4%) | United States (65.4%) | United States (65.4%) |
| Agree Realty Corp. REIT | 1359 |  | 96 |
| American Homes 4 Rent, Class A REIT | 3517 |  | 106 |
| American Tower Corp. REIT | 1175 |  | 249 |
| Americold Realty Trust, Inc. REIT | 2676 |  | 76 |
| Boyd Gaming Corp. | 996 |  | 54 |
| Brixmor Property Group, Inc. REIT | 3440 |  | 78 |
| Digital Realty Trust, Inc. REIT | 945 |  | 95 |
| Equinix, Inc. REIT | 113 |  | 74 |
| Iron Mountain, Inc. REIT | 2126 |  | 106 |
| Kite Realty Group Trust REIT | 4370 |  | 92 |
| Mid-America Apartment Communities, Inc. REIT | 951 |  | 149 |
| NETSTREIT Corp. REIT (b) | 2930 |  | 54 |
| ProLogis, Inc. REIT | 2157 |  | 243 |
| Public Storage REIT | 911 |  | 255 |
| SBA Communications Corp. REIT | 470 |  | 132 |
| Simon Property Group, Inc. REIT | 1113 |  | 131 |
| Sun Communities, Inc. REIT | 829 |  | 119 |
| UDR, Inc. REIT | 2701 |  | 105 |
| VICI Properties, Inc. REIT | 4390 |  | 142 |
| Welltower, Inc. REIT | 2400 |  | 157 |
|  |  |  | 2513 |
| **Total Common Stocks (Cost $4,239)** | **Total Common Stocks (Cost $4,239)** |  | 3778 |
| **Short-Term Investments (3.3%)** | **Short-Term Investments (3.3%)** | **Short-Term Investments (3.3%)** | **Short-Term Investments (3.3%)** |
| Securities held as Collateral on Loaned Securities (2.5%) | Securities held as Collateral on Loaned Securities (2.5%) | Securities held as Collateral on Loaned Securities (2.5%) | Securities held as Collateral on Loaned Securities (2.5%) |
| Investment Company (2.1%) | Investment Company (2.1%) | Investment Company (2.1%) | Investment Company (2.1%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 78306 |  | 78 |
|  | **Face<br>Amount<br>(000)** |  |  |
| Repurchase Agreements (0.4%) | Repurchase Agreements (0.4%) | Repurchase Agreements (0.4%) | Repurchase Agreements (0.4%) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $7; fully collateralized by a <br>U.S. Government obligation; 4.38% <br>due 5/15/41; valued at $7) | $7 |  | 7 |
| Merrill Lynch & Co., Inc., (4.25%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $8; fully collateralized <br>by a U.S. Government obligation; <br>1.50% due 2/15/25; valued at $8) | 8 |  | 8 |
|  |  |  | 15 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $93)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $93)** |  | 93 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Global Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Investment Company (0.8%) | Investment Company (0.8%) | Investment Company (0.8%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $32)** | 32274 | $32 |
| **Total Short-Term Investments (Cost $125)** | **Total Short-Term Investments (Cost $125)** | 125 |
| **Total Investments (101.7%) (Cost $4,364)<br>Including $90 of Securities Loaned (c)(d)** | **Total Investments (101.7%) (Cost $4,364)<br>Including $90 of Securities Loaned (c)(d)** | 3903 |
| Liabilities in Excess of Other Assets (–1.7%) | Liabilities in Excess of Other Assets (–1.7%) | (64) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $3839 |

---

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

(a) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(b) All or a portion of this security was on loan at December 31, 2022.

(c) The approximate fair value and percentage of net assets, $1,163,000 and 30.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(d) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $4,421,000. The aggregate gross unrealized appreciation is approximately $102,000 and the aggregate gross unrealized depreciation is approximately $620,000, resulting in net unrealized depreciation of approximately $518,000.

REIT Real Estate Investment Trust.

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Retail | 16.5% |
| Residential | 14.4 |
| Others\*\* | 13.9 |
| Diversified | 12.6 |
| Industrial | 12.3 |
| Infrastructure REITs | 10.0 |
| Self Storage | 7.6 |
| Specialty | 6.5 |
| Health Care | 6.2 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Focus Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $4,254) | $3793 |
| Investment in Security of Affiliated Issuer, at Value (Cost $110) | 110 |
| Total Investments in Securities, at Value (Cost $4,364) | 3903 |
| Foreign Currency, at Value (Cost $6) | 6 |
| Due from Adviser | 93 |
| Dividends Receivable | 12 |
| Receivable for Investments Sold | 5 |
| Tax Reclaim Receivable |  |
| Receivable from Affiliate |  |
| Other Assets | 34 |
| **Total Assets** | 4053 |
| **Liabilities:** | **Liabilities:** |
| Collateral on Securities Loaned, at Value | 93 |
| Payable for Professional Fees | 52 |
| Payable for Offering Costs | 15 |
| Payable for Custodian 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 R6\* |  |
| Payable for Investments Purchased |  |
| Payable for Administration Fees |  |
| Other Liabilities | 52 |
| **Total Liabilities** | 214 |
| **Net Assets** | $3839 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $5110 |
| Total Accumulated Loss | (1271 |
| **Net Assets** | $3839 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $3816 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 509085 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.50 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $8 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1016 |
| **Net Asset Value, Redemption Price Per Share** | $7.52 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.42 |
| **Maximum Offering Price Per Share** | $7.94 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $7 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1008 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.50 |
| **CLASS R6:**\* | **CLASS R6:**\* |
| **Net Assets** | $8 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1025 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.50 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $90 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Focus Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $6 of Foreign Taxes Withheld) | $126 |
| Dividends from Security of Affiliated Issuer (Note G) | 1 |
| Income from Securities Loaned — Net |  |
| Total Investment Income | 127 |
| **Expenses:** | **Expenses:** |
| Offering Costs | 138 |
| Professional Fees | 131 |
| Registration Fees | 34 |
| Advisory Fees (Note B) | 33 |
| Shareholder Reporting Fees | 12 |
| Transfer Agency Fees — Class I (Note E) | 2 |
| Transfer Agency Fees — Class A (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Custodian Fees (Note F) | 4 |
| Administration Fees (Note C) | 3 |
| Directors' Fees and Expenses | 3 |
| Pricing Fees | 2 |
| Shareholder Services Fees — Class A (Note D) |  |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Other Expenses | 17 |
| Total Expenses | 385 |
| Expenses Reimbursed by Adviser (Note B) | (304 |
| Waiver of Advisory Fees (Note B) | (33 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 42 |
| **Net Investment Income** | 85 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (753 |
| Foreign Currency Translation | (1 |
| Net Realized Loss | (754 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (772 |
| Foreign Currency Translation |  |
| Net Change in Unrealized Appreciation (Depreciation) | (772 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (1526 |
| Net Decrease in Net Assets Resulting from Operations | $(1441 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Period from<br>July 30, 2021^ to<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $85 | $19 |
| Net Realized Loss | (754 | (59 |
| Net Change in Unrealized Appreciation (Depreciation) | (772 | 311 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (1441 | 271 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (80 | (22 |
| **Class A** | (— | (— |
| **Class C** | (— | (— |
| **Class R6\*** | (— | (— |
| Total Dividends and Distributions to Shareholders | (80 | (22 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed |  | 4971 |
| Distributions Reinvested | 80 | 22 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed |  | 37 |
| Distributions Reinvested |  |  |
| Redeemed | (19 |  |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed |  | 10 |
| Distributions Reinvested |  |  |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed |  | 10 |
| Distributions Reinvested |  |  |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 61 | 5050 |
| Total Increase (Decrease) in Net Assets | (1460 | 5299 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 5299 |  |
| End of Period | $3839 | $5299 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed |  | 497 |
| Shares Issued on Distributions Reinvested | 10 | 2 |
| Net Increase in Class I Shares Outstanding | 10 | 499 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed |  | 4 |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (3 |  |
| Net Increase (Decrease) in Class A Shares Outstanding | (3 | 4 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed |  | 1 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class C Shares Outstanding |  | 1 |
| **Class R6:** **\*** |  |  |
| Shares Subscribed |  | 1 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class R6 Shares Outstanding |  | 1 |

---

^ Commencement of Operations.

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class I** | **Class I** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period from<br>July 30, 2021<sup>(1)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $10.49 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.17 | 0.04 |
| Net Realized and Unrealized Gain (Loss) | (3.00) | 0.50 |
| Total from Investment Operations | (2.83) | 0.54 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.16) | (0.05) |
| **Net Asset Value, End of Period** | $7.50 | $10.49 |
| **Total Return<sup>(3)</sup>** | (27.10)% | 5.38%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $3816 | $5239 |
| Ratio of Expenses Before Expense Limitation | 8.66% | 8.85%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(4)</sup> | 0.94%<sup>(4)(7)</sup> |
| Ratio of Net Investment Income | 1.95%<sup>(4)</sup> | 0.89%<sup>(4)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)(7)</sup> |
| Portfolio Turnover Rate | 113% | 44%<sup>(6)</sup> |

---

(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.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class A** | **Class A** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period from<br>July 30, 2021<sup>(1)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $10.49 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.16 | 0.03 |
| Net Realized and Unrealized Gain (Loss) | (3.02) | 0.49 |
| Total from Investment Operations | (2.86) | 0.52 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.11) | (0.03) |
| **Net Asset Value, End of Period** | $7.52 | $10.49 |
| **Total Return<sup>(3)</sup>** | (27.38)% | 5.23%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $8 | $39 |
| Ratio of Expenses Before Expense Limitation | 16.98% | 14.76%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 1.30%<sup>(4)</sup> | 1.30%<sup>(4)(7)</sup> |
| Ratio of Net Investment Income | 1.76%<sup>(4)</sup> | 0.63%<sup>(4)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)(7)</sup> |
| Portfolio Turnover Rate | 113% | 44%<sup>(6)</sup> |

---

(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.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class C** | **Class C** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period from<br>July 30, 2021<sup>(1)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $10.49 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | 0.07 | (0.01) |
| Net Realized and Unrealized Gain (Loss) | (2.99) | 0.50 |
| Total from Investment Operations | (2.92) | 0.49 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.07) | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $7.50 | $10.49 |
| **Total Return<sup>(4)</sup>** | (27.91)% | 4.92%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $7 | $10 |
| Ratio of Expenses Before Expense Limitation | 33.59% | 27.58%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 2.05%<sup>(5)</sup> | 2.05%<sup>(5)(8)</sup> |
| Ratio of Net Investment Income (Loss) | 0.84%<sup>(5)</sup> | (0.23)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 113% | 44%<sup>(7)</sup> |

---

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period from<br>July 30, 2021<sup>(2)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $10.49 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(3)</sup> | 0.17 | 0.04 |
| Net Realized and Unrealized Gain (Loss) | (3.00) | 0.50 |
| Total from Investment Operations | (2.83) | 0.54 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.16) | (0.05) |
| **Net Asset Value, End of Period** | $7.50 | $10.49 |
| **Total Return<sup>(4)</sup>** | (27.06)% | 5.39%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $8 | $11 |
| Ratio of Expenses Before Expense Limitation | 32.89% | 26.54%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.90%<sup>(5)</sup> | 0.90%<sup>(5)(8)</sup> |
| Ratio of Net Investment Income | 2.00%<sup>(5)</sup> | 0.93%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 113% | 44%<sup>(7)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

(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) 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) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Focus Real Estate Portfolio. The Fund seeks to provide current income and long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The Fund invests a significant portion of its assets in securities of real estate investment trusts ("REITs"). The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Data Centers | $169 | $19 | $— | $188 |
| Diversified |  | 479 |  | 479 |
| Health Care | 180 | 58 |  | 238 |
| Industrial | 319 | 149 |  | 468 |
| Industrial/Office Mixed |  | 20 |  | 20 |
| Infrastructure REITs | 381 |  |  | 381 |
| Lodging/Resorts | 54 | 66 |  | 120 |
| Office |  | 169 |  | 169 |
| Residential | 479 | 70 |  | 549 |
| Retail | 530 | 100 |  | 630 |
| Self Storage | 255 | 33 |  | 288 |
| Specialty | 248 |  |  | 248 |
| **Total Common Stocks** | **2615** | **1163** | **—** | **3778** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 110 |  |  | 110 |
| Repurchase Agreements |  | 15 |  | 15 |
| **Total Short-Term <br>Investments** | **110** | **15** | **—** | **125** |
| **Total Assets** | $**2725** | $**1178** | $**—** | $**3903** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 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 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 U.S. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset<br>Amounts<br>Presented in the<br>Statement of<br>Assets and <br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $90<br> (a) | $— | $(90)(b)(c) | $0 |

---

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

(b) The Fund received cash collateral of approximately $93,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments.

(c) 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 &<br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stock | $93 | $— | $— | $— | $93 |
| **Total Borrowings** | $**93** | $**—** | $**—** | $**—** | $**93** |
| **Gross amount of<br>recognized liabilities<br>for securities lending<br>transactions** |  |  |  |  | $**93** |

---

**6. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 quarterly. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt)

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 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 quarterly, at the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $2<br>billion** | **Over $2<br>billion** |
| 0.75% | 0.70% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 0.95% for Class I shares, 1.30% for Class A shares, 2.05% for Class C shares and 0.90% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $33,000 of advisory fees were waived and approximately $310,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $4,961,000 and $4,948,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the 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 year ended December 31, 2022, advisory fees paid were reduced by less 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $6 | $1116 | $1012 | $1 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized <br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $110 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 two-year period ended December 31, 2022 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 2022 and 2021 was as follows:

---

| | |
|:---|:---|
| **2022 Distributions<br>Paid From:** | **2021 Distributions<br>Paid From:** |
| **Ordinary Income<br>(000)** | **Ordinary Income<br>(000)** |
| $80 | $22 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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 nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $1 | $(1) |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $61 | $— |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $582,000 and $225,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:**At December 31, 2022, the Fund did not have record owners of 10% or greater.

**K. Market Risk:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):**On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Focus Real Estate Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Focus Real Estate Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets and financial highlights for the year then ended and the period from July 30, 2021 (commencement of operations) through December 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, and the changes in its net assets and its financial highlights for the year then ended and the period from July 30, 2021 (commencement of operations) through December 31, 2021, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279213_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated approximately $43,000 of its distributions paid as qualified business income.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $11,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279213_za006.jpg)

IFIGFREANN<br>5437998 EXP 02.29.24

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![](j23279214_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Franchise Portfolio

Annual Report

December 31, 2022

![](j23279214_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 9 |
| Statement of Operations | 11 |
| Statements of Changes in Net Assets | 12 |
| Financial Highlights | 14 |
| Notes to Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 26 |
| Liquidity Risk Management Program | 27 |
| Federal Tax Notice | 28 |
| U.S. Customer Privacy Notice | 29 |
| Director 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 Morgan Stanley Institutional Fund, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279214_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Franchise Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Franchise Portfolio Class I | $1000.00 | $1014.00 | $1020.57 | $4.67 | $4.69 | 0.92% |
| Global Franchise Portfolio Class A | 1000.00 | 1012.60 | 1019.36 | 5.88 | 5.90 | 1.16 |
| Global Franchise Portfolio Class L | 1000.00 | 1010.20 | 1016.84 | 8.41 | 8.44 | 1.66 |
| Global Franchise Portfolio Class C | 1000.00 | 1009.00 | 1015.63 | 9.62 | 9.65 | 1.90 |
| Global Franchise Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1014.40 | 1021.02 | 4.24 | 4.23 | 0.83 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Franchise Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –17.24%, net of fees. The Fund's Class I shares outperformed the Fund's benchmark, the MSCI World Net Index (the "Index"), which returned –18.14%.

**Factors Affecting Performance**

• Despite a weak December 2022, the Index managed an impressive fourth quarter return of +9.8% in U.S. dollars (USD). Overall, 2022 has been a tough environment for global equity markets, with the Index down 18.1%, wiping out most of its 2021 gains. Looking at sectors, the fourth quarter was skewed toward the more cyclical sectors: Energy (+20%) was strong, as it has been for the year as a whole, up a remarkable +46% in 2022 — the only sector with positive performance. Industrials (+18%), materials (+17%) and financials (+16%) also finished ahead of the Index in the quarter and were also ahead for the year, albeit with double-digit drawdowns. The portfolio's key defensive sectors — health care (+13%) and consumer staples (+12%) — followed, ahead of the overall Index both in the quarter and the year (–5% and –6% respectively for 2022). In contrast, the expensive, growth-tilted information technology (+5%) and consumer discretionary (–2%) sectors lagged in the fourth quarter, as they had done for much of 2022, both finishing down more than 30%.

• Looking at geographies, the U.S. (+7%) was behind the Index in the fourth quarter of 2022, which meant other major markets tended to outperform. Key euro markets did particularly well, helped by the recovery in the currency, with Italy (+26%), Germany (+25%), Spain (+23%) and France (+22%) all well ahead. In Asia, Hong Kong was also strong in the fourth quarter (+18%), while Singapore (+10%) and Japan (+13%) were closer to the overall Index. Elsewhere, Switzerland (+10%) was roughly in line with the Index, while the U.K. significantly outperformed (+17%). The U.S. also

underperformed for the year (–20% against the Index's –18%), while most of Europe outperformed, with the notable exception of Germany (–22%). The U.K. finished as one of the year's top performers, having returned –5%. Within Asia, Hong Kong did well (–5%), while Singapore (–11%) and Japan (–17%) showed milder outperformance. (Country performance is shown in USD.)

• For 2022, the Fund's outperformance was driven by sector allocation, helped by the portfolio's overweight positions in the defensive health care and consumer staples sectors, which held up well in the year. The consumer discretionary underweight and absence of communication services stocks were also beneficial, offsetting the drag from the overweight to information technology and zero weight to energy. The negative stock selection was driven by health care underperformance, as the portfolio is concentrated in the life sciences and equipment sub-sectors rather than pharmaceuticals and providers. Information technology and consumer discretionary outperformance was insufficient to compensate.

• The Fund's four largest absolute contributors for 2022 were PMI, Coca-Cola, Becton Dickinson and LVMH. The top absolute detractors in the year were Microsoft, Baxter, Accenture, Reckitt Benckiser and Fidelity National.

**Management Strategies**

**Multiples have Tumbled, are Earnings Next?**

• At the start of 2022, we only had two worries about the equity market, but they were significant ones: the multiple and the earnings. In 2022, forward earnings held up reasonably well, up 4% for MSCI World Index.<sup>(i)</sup> The 18% fall in the Index, therefore, has been entirely down to a sharp derating in public markets, with the MSCI World Index forward earnings multiple falling from 19.3x to 15.0x — in contrast to private markets, which have protected investors from volatility by failing to mark prices down. This derating has been particularly concentrated in the more expensive, "growthier" companies, with communication

<sup>(i)</sup> Source for all earnings, earnings estimates and earnings multiples data used in this report: FactSet. Data as of December 2022. One basis point = 0.01%. The MSCI World Quality Index measures the performance of quality growth stocks (based on high return on equity, stable year-over-year earnings growth and low financial leverage) in the MSCI World Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Franchise Portfolio**

services, consumer discretionary and information technology all falling over 30%. The combination of resilient earnings and this skewed derating have made 2022 a very unusual year, as quality has not provided the downside risk mitigation that it did in the previous down years of 2008, 2011, 2015 and 2018, with the MSCI World Quality Index down 22% for the year, 400 basis points (bps) behind the wider MSCI World Index.

• At the start of 2023, our two worries from 12 months ago have reduced to one and a bit. The fall in the MSCI World Index multiple to 15x, now only 5% above the 2003-19 average as against the 36% premium at the start of the year, suggests that the market is no longer clearly overvalued; though of course the multiple could fall below average levels if there is a major economic downturn. It is earnings that remain the major concern. Inflation should help top-line growth, in nominal terms at least, but the margins do look stretched, with the MSCI World Index forward EBIT (earnings before interest and taxes) margin at 16.3%, 100 bps above the pre-COVID peak and a full 300 bps ahead of the 2003-19 average. This is consistent with the world of excess demand we have been in, which has given all sorts of lower quality companies pricing power. Companies' earnings issues in this period have tended to be idiosyncratic, rather than due to systematic demand issues. Many have come from either the direct impacts of COVID-19, for instance in messing up their supply chains, or from the post-pandemic hangover, with former "COVID heroes" — beneficiaries of the virtual world of the pandemic — having to adjust to the return toward an IRL (in real life) world.

• It is striking that bottom-up forward earnings estimates still look relatively healthy, despite what has been described in various forums as the most predicted recession in history, with 2023 MSCI World Index earnings estimated to be 3% higher than 2022 despite the headwind from the strong dollar, and 36% above the pre-COVID 2019 level. Central banks, particularly in the U.S., are raising rates aggressively to deal with inflation by attempting to slow demand. There is discussion

about exactly how far they need to go, weighing up the balance between slowing goods inflation and continuing wage rises, as well as arcane discussion of the lags in the shelter element of the U.S. inflation calculation. We are in no position to take a view on these intricacies as mighty economists face off against each other. However, the basic fact remains that even in the case of a successful soft landing, the consensus economic outlook is for 2023 growth to roughly grind to a halt in most Western economies. The impacts of central bank actions are already being felt in the more interest rate sensitive areas, notably housing, and consumers are facing an ugly squeeze on real incomes thanks to inflation; but labor markets still remain tight, with U.S. unemployment still down at 3.5%,<sup>(ii)</sup> keeping upward pressure on wages — and on central bank action. Forward-looking indicators have turned down, but most of the economic pain, and thus earnings pain, is still to come.

• As the excess demand of 2021 and 2022 shifts toward excess supply in 2023, there is likely to be an earnings recession, as margins fall from current peaks. Once again, the market will discover which companies have resilient earnings in tough times. Our bet, as ever, is that pricing power and recurring revenue, two of the key criteria for inclusion in our portfolios, will once again show their worth, as they did in the 2008-09 Financial Crisis and in the first half of 2020 during the early days of the pandemic. Compounders should continue to compound. The silver lining of the painful derating of 2022 is that any compounding is now coming on top of a lower multiple, with the portfolio trading at a circa 5% free cash flow yield, versus the circa 4% of a year ago. Given that there are only two ways of losing money in equities — the earnings going away, or the multiple going away — owning a portfolio of resilient earnings at a reasonable multiple does seem a sensible approach in such uncertain times.

<sup>(ii)</sup> Source: Bureau of Labor Statistics. Data as of December 2022.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Franchise Portfolio**

![](j23279214_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI World Net Index<sup>(1)</sup> and the Lipper Global Large-Cap Core Funds Index<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(8)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –17.24% | 7.84% | 9.99% | 10.65% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –17.45 | 7.56 | 9.70 | 10.36 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –21.79 | 6.40 | 9.11 | 10.08 |
| Fund — Class L Shares <br>w/o sales charges<sup>(5)</sup> | –17.86 | 7.02 | 9.16 | 8.69 |
| Fund — Class C Shares <br>w/o sales charges<sup>(7)</sup> | –18.06 | 6.76 |  | 9.25 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(7)</sup> | –18.87 | 6.76 |  | 9.25 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(6)</sup> | –17.17 | 7.92 |  | 9.26 |
| MSCI World Net Index | –18.14 | 6.14 | 8.85 | 6.70 |
| Lipper Global Large-Cap <br>Core Funds Index | –16.48 | 5.67 | 8.35 | 6.45 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI World Net Index is a free float-adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI World Net Index currently consists of 23 developed market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Large-Cap Core Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Large-Cap Core Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Large-Cap Core Funds classification.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Franchise Portfolio**

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on November 28, 2001.

<sup>(5)</sup> Commenced offering on April 27, 2012.

<sup>(6)</sup> Commenced offering on May 29, 2015. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(7)</sup> Commenced offering on September 30, 2015.

<sup>(8)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Franchise Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.5%)** | **Common Stocks (98.5%)** | **Common Stocks (98.5%)** |
| France (6.8%) | France (6.8%) | France (6.8%) |
| L'Oreal SA | 163360 | $58499 |
| LVMH Moet Hennessy Louis Vuitton SE | 103400 | 75243 |
| Pernod Ricard SA | 362793 | 71370 |
|  |  | 205112 |
| Germany (5.1%) | Germany (5.1%) | Germany (5.1%) |
| SAP SE | 1498242 | 154679 |
| Italy (0.4%) | Italy (0.4%) | Italy (0.4%) |
| Davide Campari-Milano NV | 1154981 | 11726 |
| Netherlands (2.2%) | Netherlands (2.2%) | Netherlands (2.2%) |
| Heineken NV | 720607 | 67876 |
| United Kingdom (10.5%) | United Kingdom (10.5%) | United Kingdom (10.5%) |
| Experian PLC | 1351660 | 45778 |
| Reckitt Benckiser Group PLC | 2522565 | 174855 |
| RELX PLC (Euronext NV) | 706449 | 19569 |
| RELX PLC (LSE) | 2717645 | 75138 |
|  |  | 315340 |
| United States (73.5%) | United States (73.5%) | United States (73.5%) |
| Abbott Laboratories | 1077926 | 118346 |
| Accenture PLC, Class A | 517084 | 137979 |
| Automatic Data Processing, Inc. | 334890 | 79992 |
| Baxter International, Inc. | 1774639 | 90453 |
| Becton Dickinson & Co. | 422469 | 107434 |
| Broadridge Financial Solutions, Inc. | 288103 | 38643 |
| Coca-Cola Co. | 900811 | 57301 |
| Danaher Corp. | 608920 | 161620 |
| Equifax, Inc. | 300516 | 58408 |
| Estee Lauder Cos., Inc., Class A | 168867 | 41898 |
| Fidelity National Information Services, Inc. | 172242 | 11687 |
| Intercontinental Exchange, Inc. | 1167216 | 119745 |
| Microsoft Corp. | 1113950 | 267147 |
| Moody's Corp. | 134934 | 37595 |
| NIKE, Inc., Class B | 382814 | 44793 |
| Otis Worldwide Corp. | 629628 | 49306 |
| Philip Morris International, Inc. | 2267674 | 229511 |
| Procter & Gamble Co. | 592052 | 89731 |
| Roper Technologies, Inc. | 173719 | 75062 |
| Steris PLC | 178599 | 32985 |
| Thermo Fisher Scientific, Inc. | 254901 | 140371 |
| Visa, Inc., Class A | 908797 | 188812 |
| Zoetis, Inc. | 204258 | 29934 |
|  |  | 2208753 |
| **Total Common Stocks (Cost $2,330,515)** | **Total Common Stocks (Cost $2,330,515)** | 2963486 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Short-Term Investment (1.7%)** | **Short-Term Investment (1.7%)** | **Short-Term Investment (1.7%)** |
| Investment Company (1.7%) | Investment Company (1.7%) | Investment Company (1.7%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $49,756)** | 49755961 | $49756 |
| **Total Investments (100.2%) (Cost $2,380,271) (a)(b)** | **Total Investments (100.2%) (Cost $2,380,271) (a)(b)** | 3013242 |
| Liabilities in Excess of Other Assets (–0.2%) | Liabilities in Excess of Other Assets (–0.2%) | (7423) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $3005819 |

---

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

(a) The approximate fair value and percentage of net assets, $754,733,000 and 25.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(b) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $2,404,569,000. The aggregate gross unrealized appreciation is approximately $742,852,000 and the aggregate gross unrealized depreciation is approximately $134,248,000, resulting in net unrealized appreciation of approximately $608,604,000.

Euronext NV Euronext Amsterdam Stock Market.

LSE London Stock Exchange.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Software | 16.5% |
| Information Technology Services | 15.2 |
| Health Care Equipment & Supplies | 11.6 |
| Other\* | 11.6 |
| Life Sciences Tools & Services | 10.0 |
| Household Products | 8.8 |
| Tobacco | 7.6 |
| Beverages | 6.9 |
| Professional Services | 6.6 |
| Capital Markets | 5.2 |
| 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.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Franchise Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $2,330,515) | $2963486 |  |
| Investment in Security of Affiliated Issuer, at Value (Cost $49,756) | 49756 |  |
| Total Investments in Securities, at Value (Cost $2,380,271) | 3013242 |  |
| Foreign Currency, at Value (Cost $479) | 483 |  |
| Dividends Receivable | 4298 |  |
| Receivable for Fund Shares Sold | 1586 |  |
| Tax Reclaim Receivable | 848 |  |
| Receivable from Affiliate | 169 |  |
| Receivable for Investments Sold | 4 |  |
| Other Assets | 147 |  |
| **Total Assets** | 3020777 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Fund Shares Redeemed | 7136 |  |
| Payable for Advisory Fees | 5416 |  |
| Payable for Investments Purchased | 1392 |  |
| Payable for Sub Transfer Agency Fees — Class I | 335 |  |
| Payable for Sub Transfer Agency Fees — Class A | 48 |  |
| Payable for Sub Transfer Agency Fees — Class L | 1 |  |
| Payable for Sub Transfer Agency Fees — Class C | 15 |  |
| Payable for Administration Fees | 209 |  |
| Payable for Shareholder Services Fees — Class A | 71 |  |
| Payable for Distribution and Shareholder Services Fees — Class L | 5 |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 96 |  |
| Payable for Professional Fees | 59 |  |
| Payable for Custodian Fees | 27 |  |
| Payable for Transfer Agency Fees — Class I | 6 |  |
| 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 R6\* | 1 |  |
| Other Liabilities | 139 |  |
| **Total Liabilities** | 14958 |  |
| **Net Assets** | $3005819 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $2425859 |  |
| Total Distributable Earnings | 579960 |  |
| **Net Assets** | $3005819 |  |

---

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Franchise Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $2046621 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 67997650 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $30.10 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $328979 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 11220518 |
| **Net Asset Value, Redemption Price Per Share** | $29.32 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $1.62 |
| **Maximum Offering Price Per Share** | $30.94 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $7397 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 252566 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $29.29 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $110399 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 3864040 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $28.57 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $512423 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 17019285 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $30.11 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Franchise Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $1,290 of Foreign Taxes Withheld) | $56250 |
| Dividends from Security of Affiliated Issuer (Note G) | 732 |
| Total Investment Income | 56982 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 23993 |
| Administration Fees (Note C) | 2656 |
| Sub Transfer Agency Fees — Class I | 2202 |
| Sub Transfer Agency Fees — Class A | 288 |
| Sub Transfer Agency Fees — Class L | 5 |
| Sub Transfer Agency Fees — Class C | 90 |
| Shareholder Services Fees — Class A (Note D) | 873 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 59 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 1254 |
| Registration Fees | 184 |
| Professional Fees | 183 |
| Shareholder Reporting Fees | 161 |
| Custodian Fees (Note F) | 119 |
| Transfer Agency Fees — Class I (Note E) | 31 |
| Transfer Agency Fees — Class A (Note E) | 6 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 5 |
| Transfer Agency Fees — Class R6\* (Note E) | 5 |
| Directors' Fees and Expenses | 45 |
| Pricing Fees | 2 |
| Other Expenses | 88 |
| Total Expenses | 32251 |
| Rebate from Morgan Stanley Affiliate (Note G) | (81) |
| Net Expenses | 32170 |
| **Net Investment Income** | 24812 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold | 8820 |
| Foreign Currency Translation | (756) |
| Net Realized Gain | 8064 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (729529) |
| Foreign Currency Translation | (49) |
| Net Change in Unrealized Appreciation (Depreciation) | (729578) |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | (721514) |
| Net Decrease in Net Assets Resulting from Operations | $(696702) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Franchise Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $24812 | $24703 |
| Net Realized Gain | 8064 | 59422 |
| Net Change in Unrealized Appreciation (Depreciation) | (729578) | 589414 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (696702) | 673539 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (34494) | (74018 |
| **Class A** | (4840) | (9816 |
| **Class L** | (74) | (195 |
| **Class C** | (988) | (3249 |
| **Class R6\*** | (9092) | (13032 |
| **Paid-in-Capital:** | **Paid-in-Capital:** | **Paid-in-Capital:** |
| **Class I** |  | (1104 |
| **Class A** |  | (158 |
| **Class L** |  | (4 |
| **Class C** |  | (— |
| **Class R6\*** |  | (189 |
| Total Dividends and Distributions to Shareholders | (49488) | (101765 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 478735 | 666814 |
| Distributions Reinvested | 33501 | 72622 |
| Redeemed | (734314) | (667086 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 90329 | 83141 |
| Distributions Reinvested | 4642 | 9470 |
| Redeemed | (84642) | (72864 |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 404 | 16 |
| Distributions Reinvested | 74 | 199 |
| Redeemed | (796) | (614 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 23164 | 36379 |
| Distributions Reinvested | 957 | 3144 |
| Redeemed | (41978) | (30778 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 48652 | 202550 |
| Distributions Reinvested | 8897 | 13031 |
| Redeemed | (34245) | (51726 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (206620) | 264298 |
| Total Increase (Decrease) in Net Assets | (952810) | 836072 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 3958629 | 3122557 |
| End of Period | $3005819 | $3958629 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Franchise Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 14970 | 19783 |
| Shares Issued on Distributions Reinvested | 1118 | 2025 |
| Shares Redeemed | (23524) | (20099) |
| Net Increase (Decrease) in Class I Shares Outstanding | (7436) | 1709 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 2861 | 2530 |
| Shares Issued on Distributions Reinvested | 159 | 271 |
| Shares Redeemed | (2769) | (2268) |
| Net Increase in Class A Shares Outstanding | 251 | 533 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 13 | 1 |
| Shares Issued on Distributions Reinvested | 3 | 6 |
| Shares Redeemed | (27) | (20) |
| Net Decrease in Class L Shares Outstanding | (11) | (13) |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 758 | 1121 |
| Shares Issued on Distributions Reinvested | 34 | 92 |
| Shares Redeemed | (1411) | (959) |
| Net Increase (Decrease) in Class C Shares Outstanding | (619) | 254 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 1478 | 5739 |
| Shares Issued on Distributions Reinvested | 297 | 364 |
| Shares Redeemed | (1116) | (1600) |
| Net Increase in Class R6 Shares Outstanding | 659 | 4503 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Franchise Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $36.99 | $31.20 | $28.53 | $23.03 | $24.72 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.25 | 0.27 | 0.30 | 0.30 | 0.29 |
| Net Realized and Unrealized Gain (Loss) | (6.63) | 6.54 | 3.45 | 6.51 | (0.63) |
| Total from Investment Operations | (6.38) | 6.81 | 3.75 | 6.81 | (0.34) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.25) | (0.27) | (0.28) | (0.27) | (0.27) |
| Net Realized Gain | (0.26) | (0.74) | (0.80) | (1.04) | (1.08) |
| Paid-in-Capital |  | (0.01) |  |  |  |
| Total Distributions | (0.51) | (1.02) | (1.08) | (1.31) | (1.35) |
| **Net Asset Value, End of Period** | $30.10 | $36.99 | $31.20 | $28.53 | $23.03 |
| **Total Return<sup>(2)</sup>** | (17.24)% | 21.92% | 13.22% | 29.60% | (1.50)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $2046621 | $2790499 | $2300448 | $1593092 | $918409 |
| Ratio of Expenses Before Expense Limitation | 0.92% | 0.91% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 0.92%<sup>(3)</sup> | 0.91%<sup>(3)</sup> | 0.92%<sup>(3)</sup> | 0.93%<sup>(3)</sup> | 0.94%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 0.92%<sup>(3)</sup> | 0.93%<sup>(3)</sup> | N/A |
| Ratio of Net Investment Income | 0.79%<sup>(3)</sup> | 0.79%<sup>(3)</sup> | 1.04%<sup>(3)</sup> | 1.09%<sup>(3)</sup> | 1.14%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 15% | 17% | 19% | 16% | 27% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Franchise Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $36.05 | $30.44 | $27.86 | $22.53 | $24.21 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.17 | 0.18 | 0.22 | 0.23 | 0.21 |
| Net Realized and Unrealized Gain (Loss) | (6.46) | 6.37 | 3.37 | 6.35 | (0.61) |
| Total from Investment Operations | (6.29) | 6.55 | 3.59 | 6.58 | (0.40) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.18) | (0.19) | (0.21) | (0.21) | (0.20) |
| Net Realized Gain | (0.26) | (0.74) | (0.80) | (1.04) | (1.08) |
| Paid-in-Capital |  | (0.01) |  |  |  |
| Total Distributions | (0.44) | (0.94) | (1.01) | (1.25) | (1.28) |
| **Net Asset Value, End of Period** | $29.32 | $36.05 | $30.44 | $27.86 | $22.53 |
| **Total Return<sup>(2)</sup>** | (17.45)% | 21.61% | 12.95% | 29.24% | (1.77)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $328979 | $395450 | $317673 | $292491 | $150936 |
| Ratio of Expenses Before Expense Limitation | 1.16% | 1.16% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 1.16%<sup>(3)</sup> | 1.16%<sup>(3)</sup> | 1.16%<sup>(3)</sup> | 1.19%<sup>(3)</sup> | 1.23%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.16%<sup>(3)</sup> | 1.19%<sup>(3)</sup> | N/A |
| Ratio of Net Investment Income | 0.57%<sup>(3)</sup> | 0.54%<sup>(3)</sup> | 0.77%<sup>(3)</sup> | 0.83%<sup>(3)</sup> | 0.84%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 15% | 17% | 19% | 16% | 27% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Franchise Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $36.01 | $30.41 | $27.84 | $22.51 | $24.18 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.02 | 0.01 | 0.07 | 0.09 | 0.09 |
| Net Realized and Unrealized Gain (Loss) | (6.45) | 6.36 | 3.36 | 6.35 | (0.62) |
| Total from Investment Operations | (6.43) | 6.37 | 3.43 | 6.44 | (0.53) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.03) | (0.02) | (0.06) | (0.07) | (0.06) |
| Net Realized Gain | (0.26) | (0.74) | (0.80) | (1.04) | (1.08) |
| Paid-in-Capital |  | (0.01) |  |  |  |
| Total Distributions | (0.29) | (0.77) | (0.86) | (1.11) | (1.14) |
| **Net Asset Value, End of Period** | $29.29 | $36.01 | $30.41 | $27.84 | $22.51 |
| **Total Return<sup>(2)</sup>** | (17.86)% | 21.02% | 12.38% | 28.62% | (2.29)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $7397 | $9473 | $8390 | $8388 | $7312 |
| Ratio of Expenses Before Expense Limitation | 1.66% | 1.66% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 1.66%<sup>(3)</sup> | 1.66%<sup>(3)</sup> | 1.66%<sup>(3)</sup> | 1.69%<sup>(3)</sup> | 1.73%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.66%<sup>(3)</sup> | 1.69%<sup>(3)</sup> | N/A |
| Ratio of Net Investment Income | 0.06%<sup>(3)</sup> | 0.05%<sup>(3)</sup> | 0.26%<sup>(3)</sup> | 0.31%<sup>(3)</sup> | 0.36%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 15% | 17% | 19% | 16% | 27% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Franchise Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $35.18 | $29.77 | $27.30 | $22.13 | $23.82 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | (0.06) | (0.06) | 0.01 | 0.02 | 0.03 |
| Net Realized and Unrealized Gain (Loss) | (6.29) | 6.21 | 3.27 | 6.23 | (0.60) |
| Total from Investment Operations | (6.35) | 6.15 | 3.28 | 6.25 | (0.57) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.04) | (0.04) |
| Net Realized Gain | (0.26) | (0.74) | (0.80) | (1.04) | (1.08) |
| Paid-in-Capital |  | (0.00)<sup>(2)</sup> |  |  |  |
| Total Distributions | (0.26) | (0.74) | (0.81) | (1.08) | (1.12) |
| **Net Asset Value, End of Period** | $28.57 | $35.18 | $29.77 | $27.30 | $22.13 |
| **Total Return<sup>(3)</sup>** | (18.06)% | 20.74% | 12.09% | 28.27% | (2.51)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $110399 | $157721 | $125919 | $99141 | $55271 |
| Ratio of Expenses Before Expense Limitation | 1.90% | 1.90% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 1.90%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.91%<sup>(4)</sup> | 1.95%<sup>(4)</sup> | 1.96%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.91%<sup>(4)</sup> | 1.95%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income (Loss) | (0.19)%<sup>(4)</sup> | (0.20)%<sup>(4)</sup> | 0.03%<sup>(4)</sup> | 0.07%<sup>(4)</sup> | 0.12%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 15% | 17% | 19% | 16% | 27% |

---

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

(2) Amount is less than $0.005.

(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 (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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Franchise Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $37.01 | $31.21 | $28.53 | $23.03 | $24.72 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.29 | 0.31 | 0.33 | 0.32 | 0.32 |
| Net Realized and Unrealized Gain (Loss) | (6.64) | 6.54 | 3.45 | 6.51 | (0.65) |
| Total from Investment Operations | (6.35) | 6.85 | 3.78 | 6.83 | (0.33) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.29) | (0.30) | (0.30) | (0.29) | (0.28) |
| Net Realized Gain | (0.26) | (0.74) | (0.80) | (1.04) | (1.08) |
| Paid-in-Capital |  | (0.01) |  |  |  |
| Total Distributions | (0.55) | (1.05) | (1.10) | (1.33) | (1.36) |
| **Net Asset Value, End of Period** | $30.11 | $37.01 | $31.21 | $28.53 | $23.03 |
| **Total Return<sup>(3)</sup>** | (17.17)% | 22.05% | 13.33% | 29.67% | (1.45)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $512423 | $605486 | $370127 | $137283 | $204031 |
| Ratio of Expenses Before Expense Limitation | 0.83% | 0.82% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 0.83%<sup>(4)</sup> | 0.82%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | 0.86%<sup>(4)</sup> | 0.88%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 0.83%<sup>(4)</sup> | 0.86%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 0.90%<sup>(4)</sup> | 0.90%<sup>(4)</sup> | 1.14%<sup>(4)</sup> | 1.21%<sup>(4)</sup> | 1.30%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 15% | 17% | 19% | 16% | 27% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Franchise Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Beverages | $57301 | $150972 | $— | $208273 |
| Capital Markets | 157340 |  |  | 157340 |
| Health Care <br>Equipment & <br>Supplies | 349218 |  |  | 349218 |
| Household Products | 89731 | 174855 |  | 264586 |
| Information <br>Technology <br>Services | 457113 |  |  | 457113 |
| Life Sciences <br>Tools & <br>Services | 301991 |  |  | 301991 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Machinery | $49306 | $— | $— | $49306 |
| Personal Products | 41898 | 58499 |  | 100397 |
| Pharmaceuticals | 29934 |  |  | 29934 |
| Professional <br>Services | 58408 | 140485 |  | 198893 |
| Software | 342209 | 154679 |  | 496888 |
| Textiles, Apparel & <br>Luxury Goods | 44793 | 75243 |  | 120036 |
| Tobacco | 229511 |  |  | 229511 |
| **Total Common Stocks** | **2208753** | **754733** | **—** | **2963486** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 49756 |  |  | 49756 |
| **Total Assets** | $**2258509** | $**754733** | $**—** | $**3013242** |

---

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 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 U.S. 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. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | | |
|:---|:---|:---|
| **First $500<br>million** | **Next $500<br>million** | **Over $1<br>billion** |
| 0.80% | 0.75% | 0.70% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.72% 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 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.95% for Class R6 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 Directors act to

discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. This arrangement had no effect for the year ended December 31, 2022.

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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $501,536,000 and $709,828,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the

Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $81,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value <br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds <br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $65018 | $454614 | $469876 | $732 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized <br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $49756 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $24079 | $25409 | $24896 | $75414 | $1455 |

---

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 December 31, 2022.

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to

defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified <br>Late Year <br>Ordinary <br>Losses<br>(000)** | **Post-<br>October<br>Capital <br>Losses<br>(000)** |
| $85 | $28490 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 49.1%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. —<br>Global Franchise Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Franchise Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279214_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 100% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $25,409,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $24,079,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Limited<br>25 Cabot Square, Canary Wharf<br>London, E14 4QA, England

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

------

Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279214_za006.jpg)

IFIGFANN<br>5436021 EXP 02.29.24

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![](j23279215_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Infrastructure Portfolio

Annual Report

December 31, 2022

![](j23279215_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 7 |
| Statement of Assets and Liabilities | 9 |
| Statement of Operations | 11 |
| Statements of Changes in Net Assets | 12 |
| Financial Highlights | 14 |
| Notes to Financial Statements | 20 |
| Report of Independent Registered Public Accounting Firm | 27 |
| Liquidity Risk Management Program | 28 |
| Federal Tax Notice | 29 |
| U.S. Customer Privacy Notice | 30 |
| Director and Officer Information | 33 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279215_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Infrastructure Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Infrastructure Portfolio Class I | $1000.00 | $977.50 | $1020.32 | $4.83 | $4.94 | 0.97% |
| Global Infrastructure Portfolio Class A | 1000.00 | 976.30 | 1019.11 | 6.03 | 6.16 | 1.21 |
| Global Infrastructure Portfolio Class L | 1000.00 | 974.60 | 1016.23 | 8.86 | 9.05 | 1.78 |
| Global Infrastructure Portfolio Class C | 1000.00 | 972.40 | 1014.72 | 10.34 | 10.56 | 2.08 |
| Global Infrastructure Portfolio Class R6<sup>(1)</sup> | 1000.00 | 977.70 | 1020.47 | 4.69 | 4.79 | 0.94 |
| Global Infrastructure Portfolio Class IR | 1000.00 | 977.80 | 1020.47 | 4.69 | 4.79 | 0.94 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Infrastructure Portfolio**

The Fund seeks to provide both capital appreciation and income.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –8.40%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the Dow Jones Brookfield Global Infrastructure Index<sup>SM</sup> (the "Index"), which returned –6.62%, but it outperformed the S&P Global BMI Index, a proxy for global equities, which returned –18.24%.

**Factors Affecting Performance**

• Infrastructure shares decreased 6.62% in the year ending December 31, 2022, as measured by the Index. From a sector perspective, gas midstream, electricity transmission & distribution, other utilities, pipeline companies, gas distribution utilities, toll roads, diversified, and airports outperformed the Index, while water & waste, ports, European regulated utilities, and communications underperformed.

• 2022 was a challenging year for most financial assets, as the headwinds of high inflation, restrictive central bank policymaking in developed markets, war in Ukraine, COVID lockdowns in China, and geopolitical tensions between the U.S. and China served to blunt a robust labor market in the majority of countries and generally positive corporate earnings trends in Western economies. In the context of this challenging year, listed infrastructure securities held up well, outpacing global equities and some parts of the bond market on a relative basis. This outperformance of listed infrastructure was driven by a number of favorable characteristics of the asset class, as well as certain sector-level exposures. In terms of structural characteristics, listed infrastructure's inflation-linked revenues and cash flows, as well as its earnings and cash flow resilience, served it well in a high inflation, high volatility environment. From a sector exposure perspective, listed infrastructure benefited from exposure to defensive asset areas like utilities, in addition to exposure to energy, both traditional energy as well as clean energy, in the context of Russia-Ukraine and many governments' efforts to transition away from fossil fuel-based,

foreign energy sources. Exposure to leisure travel through airports also was a benefit, given the strong recovery coming out of the COVID-19 pandemic.

• For the full-year 2022, the Fund underperformed the Index. From a bottom-up perspective, the Fund benefited from favorable stock selection in communications, gas midstream, airports, and toll roads, which was offset by adverse stock selection in gas distribution utilities, water & waste, and other utilities. From a top-down perspective, the Fund benefited from overweights to other utilities, water & waste, and gas distribution utilities; an underweight to European regulated utilities; and a modest underweight to communications companies, which was offset by underweight positioning in electricity transmission & distribution companies, out-of-benchmark positions in renewables and railroads, an underweight to diversified, and an overweight to airports.

**Management Strategies**

• We remain committed to our core investment philosophy as an infrastructure value investor. As a value-oriented, bottom-up driven investor, our investment perspective is that over the medium and long term, the key factor in determining the performance of infrastructure securities will be underlying infrastructure asset values. Given the large and growing private infrastructure market, we believe that there are limits as to the level of premium or discount at which the public sector should trade relative to its underlying private infrastructure value. These limits can be viewed as the point at which the arbitrage opportunity between owning infrastructure in the private versus public markets becomes compelling. In aiming to achieve core infrastructure exposure in a cost-effective manner, we invest in equity securities of publicly listed infrastructure companies we believe offer the best value relative to their underlying infrastructure value and growth prospects.

• Our research currently leads us to an overweighting in the Fund to a group of companies in the water & waste, other utilities, gas distribution utilities, communications, and airports sectors, and an underweighting to pipeline companies and companies in the electricity transmission & distribution, gas midstream, European regulated

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Infrastructure Portfolio**

utilities, diversified, toll roads, and ports sectors. Finally, we continue to retain out-of-benchmark positions in renewables.

• For 2023, despite the material outperformance of listed infrastructure relative to global equities in 2022, we remain constructive for several reasons. First, although there are broader market concerns over a potential "earnings recession" in 2023, we anticipate positive earnings and cash flow growth across most infrastructure subsectors for the year, with some areas set to achieve outsized growth due to follow-on, 2022 inflation-linked pricing escalators for the upcoming year. Second, we anticipate interest rates to be a neutral to positive influence on perceived cost-of-capital in 2023 as long-term bond yields start to roll over in conjunction with fears over recession. And third, we view the backdrop for energy, both in terms of clean energy and traditional energy infrastructure, as particularly strong in the context of the ongoing conflict in Ukraine and tight supply/demand dynamics. Whereas "energy transition" was the sole area of focus in recent years, "energy security" has become equally important, and with it, a renewed focus on traditional energy infrastructure.

![](j23279215_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Infrastructure Portfolio**

**Performance Compared to the Dow Jones Brookfield Global Infrastructure Index** **<sup>SM(1)</sup>** **, the S&P Global BMI Index** **<sup>(2)</sup>** **and the Lipper Global Infrastructure Funds Index** **<sup>(3)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(9)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(5)</sup> | –8.40% | 3.93% | 6.34% | 8.29% |
| Fund — Class A Shares <br>w/o sales charges<sup>(5)</sup> | –8.60 | 3.69 | 6.08 | 8.03 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(5)</sup> | –13.38 | 2.58 | 5.52 | 7.56 |
| Fund — Class L Shares <br>w/o sales charges<sup>(5)</sup> | –9.09 | 3.11 | 5.48 | 7.43 |
| Fund — Class C Shares <br>w/o sales charges<sup>(7)</sup> | –9.42 | 2.80 |  | 2.46 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(7)</sup> | –10.19 | 2.80 |  | 2.46 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(6)</sup> | –8.35 | 3.88 |  | 5.97 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(8)</sup> | –8.38 |  |  | 5.22 |
| Dow Jones Brookfield Global <br>Infrastructure Index<sup>SM</sup> | –6.62 | 4.31 | 6.38 | 8.09 |
| S&P Global BMI Index | –18.24 | 5.26 | 8.38 | 8.35 |
| Lipper Global Infrastructure <br>Funds Index | –6.80 | 4.38 | 7.16 |  |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Dow Jones Brookfield Global Infrastructure Index<sup>SM</sup> is a float-adjusted market capitalization weighted index that measures the stock performance of companies that exhibit strong infrastructure characteristics. The Index intends to measure all sectors of the infrastructure market. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index. Effective after the close of business on April 29, 2022, the Fund selected the Dow Jones Brookfield Global Infrastructure Index<sup>SM</sup> as its broad-based index as a replacement for the Standard and Poor's Global BMI Index ("S&P Global BMI Index") because it believes the Dow Jones Brookfield Global Infrastructure Index<sup>SM</sup> is more reflective of the Fund's principal investment strategies.

<sup>(2)</sup> The S&P Global BMI Index is a broad market index designed to capture exposure to equities in all countries in the world that meet minimum size and liquidity requirements. The index members represents developed and emerging market countries. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(3)</sup> The Lipper Global Infrastructure Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Infrastructure Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Infrastructure Funds classification. The history of this Index began in October 2011. Therefore, there is no "Since Inception" return data available.

<sup>(4)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(5)</sup> Commenced operations on September 20, 2010.

<sup>(6)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(7)</sup> Commenced offering on April 30, 2015.

<sup>(8)</sup> Commenced offering on June 15. 2018.

<sup>(9)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Infrastructure Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (100.0%)** | **Common Stocks (100.0%)** | **Common Stocks (100.0%)** |
| Australia (2.3%) | Australia (2.3%) | Australia (2.3%) |
| Transurban Group (Units) (a) | 674812 | $5937 |
| Canada (17.6%) | Canada (17.6%) | Canada (17.6%) |
| Enbridge, Inc. | 274649 | 10734 |
| GFL Environmental, Inc. | 693254 | 20264 |
| Gibson Energy, Inc. | 135205 | 2361 |
| Pembina Pipeline Corp. | 208618 | 7081 |
| TC Energy Corp. (b) | 134361 | 5357 |
|  |  | 45797 |
| China (8.9%) | China (8.9%) | China (8.9%) |
| China Gas Holdings Ltd. (c) | 16011800 | 23205 |
| France (4.7%) | France (4.7%) | France (4.7%) |
| Aeroports de Paris (d) | 3161 | 424 |
| Getlink SE | 94727 | 1517 |
| Vinci SA | 103096 | 10277 |
|  |  | 12218 |
| Hong Kong (0.5%) | Hong Kong (0.5%) | Hong Kong (0.5%) |
| Power Assets Holdings Ltd. | 220071 | 1203 |
| Italy (5.6%) | Italy (5.6%) | Italy (5.6%) |
| Infrastrutture Wireless Italiane SpA | 1215238 | 12260 |
| Terna — Rete Elettrica Nazionale | 327589 | 2419 |
|  |  | 14679 |
| Mexico (2.1%) | Mexico (2.1%) | Mexico (2.1%) |
| Grupo Aeroportuario del Pacifico SAB de CV, <br>Class B | 185249 | 2656 |
| Grupo Aeroportuario del Sureste SAB de CV, <br>Class B | 123045 | 2871 |
|  |  | 5527 |
| New Zealand (0.5%) | New Zealand (0.5%) | New Zealand (0.5%) |
| Auckland International Airport Ltd. (d) | 269381 | 1336 |
| Portugal (0.3%) | Portugal (0.3%) | Portugal (0.3%) |
| EDP Renovaveis SA | 32190 | 709 |
| Spain (5.7%) | Spain (5.7%) | Spain (5.7%) |
| Aena SME SA (d) | 15356 | 1925 |
| Cellnex Telecom SA | 140370 | 4656 |
| Ferrovial SA | 145455 | 3809 |
| Iberdrola SA | 368559 | 4302 |
|  |  | 14692 |
| Switzerland (0.4%) | Switzerland (0.4%) | Switzerland (0.4%) |
| Flughafen Zurich AG (Registered) (d) | 6992 | 1082 |
| United Kingdom (7.4%) | United Kingdom (7.4%) | United Kingdom (7.4%) |
| National Grid PLC | 893777 | 10707 |
| Pennon Group PLC | 400729 | 4308 |
| Severn Trent PLC | 128625 | 4109 |
|  |  | 19124 |
| United States (44.0%) | United States (44.0%) | United States (44.0%) |
| Ameren Corp. | 25480 | 2266 |
| American Electric Power Co., Inc. | 80518 | 7645 |
| American Tower Corp. REIT | 65579 | 13894 |
| American Water Works Co., Inc. | 35829 | 5461 |

---

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Atmos Energy Corp. | 38851 | $4354 |
| CenterPoint Energy, Inc. | 152310 | 4568 |
| Cheniere Energy, Inc. | 48046 | 7205 |
| Crown Castle International Corp. REIT | 45020 | 6106 |
| Edison International | 71555 | 4552 |
| Entergy Corp. | 36581 | 4115 |
| Eversource Energy | 90945 | 7625 |
| Exelon Corp. | 31063 | 1343 |
| Kinder Morgan, Inc. | 96581 | 1746 |
| NextEra Energy, Inc. | 13328 | 1114 |
| NiSource, Inc. | 138070 | 3786 |
| ONEOK, Inc. | 53509 | 3516 |
| PG&E Corp. (d) | 279454 | 4544 |
| SBA Communications Corp. REIT | 29787 | 8350 |
| Sempra Energy | 67616 | 10449 |
| Targa Resources Corp. | 63719 | 4683 |
| Williams Cos., Inc. (The) | 187845 | 6180 |
| Xcel Energy, Inc. | 9980 | 700 |
|  |  | 114202 |
| **Total Investments (100.0%) (Cost $244,729) <br>Including $5,252 of Securities Loaned (e)(f)** | **Total Investments (100.0%) (Cost $244,729) <br>Including $5,252 of Securities Loaned (e)(f)** | 259711 |
| Liabilities in Excess of Other Assets (0.0%) (g) | Liabilities in Excess of Other Assets (0.0%) (g) | (42) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $259669 |

---

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

(a) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(b) All or a portion of this security was on loan at December 31, 2022.

(c) Security trades on the Hong Kong exchange.

(d) Non-income producing security.

(e) The approximate fair value and percentage of net assets, $94,185,000 and 36.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to Financial Statements.

(f) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $252,846,000. The aggregate gross unrealized appreciation is approximately $19,578,000 and the aggregate gross unrealized depreciation is approximately $12,717,000, resulting in net unrealized appreciation of approximately $6,861,000.

(g) Amount is less than 0.05%.

REIT Real Estate Investment Trust.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Global Infrastructure Portfolio**

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Oil & Gas Storage & Transportation | 34.9% |
| Communications | 17.4 |
| Others | 16.3 |
| Electricity Transmission & Distribution | 12.0 |
| Diversified | 7.2 |
| Others\* | 6.8 |
| Water | 5.4 |
| 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.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Infrastructure Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $244,729) | $259711 |  |
| Foreign Currency, at Value (Cost $14) | 14 |  |
| Receivable for Investments Sold | 917 |  |
| Dividends Receivable | 720 |  |
| Receivable for Fund Shares Sold | 255 |  |
| Tax Reclaim Receivable | 40 |  |
| Receivable from Securities Lending Income | 8 |  |
| Receivable from Affiliate | 1 |  |
| Other Assets | 69 |  |
| **Total Assets** | 261735 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Fund Shares Redeemed | 1026 |  |
| Payable for Advisory Fees | 406 |  |
| Bank Overdraft | 241 |  |
| Payable for Investments Purchased | 131 |  |
| Payable for Professional Fees | 50 |  |
| Payable for Sub Transfer Agency Fees — Class I | 21 |  |
| Payable for Sub Transfer Agency Fees — Class A | 26 |  |
| Payable for Sub Transfer Agency Fees — Class L |  | @ |
| Payable for Sub Transfer Agency Fees — Class C | 1 |  |
| Payable for Shareholder Services Fees — Class A | 39 |  |
| Payable for Distribution and Shareholder Services Fees — Class L | 2 |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 3 |  |
| Payable for Directors' Fees and Expenses | 39 |  |
| Payable for Custodian Fees | 21 |  |
| Payable for Administration Fees | 19 |  |
| Payable for Transfer Agency Fees — Class I | 1 |  |
| Payable for Transfer Agency Fees — Class A | 8 |  |
| Payable for Transfer Agency Fees — Class L |  | @ |
| Payable for Transfer Agency Fees — Class C |  | @ |
| Payable for Transfer Agency Fees — Class R6\* |  | @ |
| Payable for Transfer Agency Fees — Class IR |  | @ |
| Other Liabilities | 32 |  |
| **Total Liabilities** | 2066 |  |
| **Net Assets** | $259669 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $256603 |  |
| Total Distributable Earnings | 3066 |  |
| **Net Assets** | $259669 |  |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Infrastructure Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $78217 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 6648486 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.76 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $175406 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 14951945 |
| **Net Asset Value, Redemption Price Per Share** | $11.73 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.65 |
| **Maximum Offering Price Per Share** | $12.38 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $2708 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 231579 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.70 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $3314 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 289130 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.46 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $12 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1014 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.69 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $12 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 986 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.75 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $5252 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Infrastructure Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $538 of Foreign Taxes Withheld) | $8612 |
| Dividends from Security of Affiliated Issuer (Note G) | 45 |
| Income from Securities Loaned — Net | 28 |
| Total Investment Income | 8685 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 2530 |
| Shareholder Services Fees — Class A (Note D) | 495 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 22 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 44 |
| Sub Transfer Agency Fees — Class I | 120 |
| Sub Transfer Agency Fees — Class A | 134 |
| Sub Transfer Agency Fees — Class L | 2 |
| Sub Transfer Agency Fees — Class C | 4 |
| Administration Fees (Note C) | 238 |
| Professional Fees | 153 |
| Registration Fees | 99 |
| Custodian Fees (Note F) | 79 |
| Transfer Agency Fees — Class I (Note E) | 4 |
| Transfer Agency Fees — Class A (Note E) | 44 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Transfer Agency Fees — Class IR (Note E) | 2 |
| Shareholder Reporting Fees | 53 |
| Directors' Fees and Expenses | 12 |
| Pricing Fees | 4 |
| Other Expenses | 19 |
| Total Expenses | 4065 |
| Waiver of Advisory Fees (Note B) | (389) |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (96) |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (138) |
| 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 R6\* (Note B) | (2) |
| Reimbursement of Class Specific Expenses — Class IR (Note B) | (2) |
| Rebate from Morgan Stanley Affiliate (Note G) | (7) |
| Net Expenses | 3429 |
| **Net Investment Income** | 5256 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold | 21600 |
| Foreign Currency Translation | (33) |
| Net Realized Gain | 21567 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (54479) |
| Foreign Currency Translation | (10) |
| Net Change in Unrealized Appreciation (Depreciation) | (54489) |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | (32922) |
| Net Decrease in Net Assets Resulting from Operations | $(27666) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Infrastructure Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $5256 | $5400 |
| Net Realized Gain | 21567 | 23926 |
| Net Change in Unrealized Appreciation (Depreciation) | (54489) | 9355 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (27666) | 38681 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (13364) | (6839) |
| **Class A** | (28502) | (16402) |
| **Class L** | (422) | (222) |
| **Class C** | (549) | (291) |
| **Class R6\*** | (2) | (1) |
| **Class IR** | (2) | (1) |
| Total Dividends and Distributions to Shareholders | (42841) | (23756) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 57338 | 45076 |
| Distributions Reinvested | 13364 | 6838 |
| Redeemed | (62098) | (31226) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 3337 | 13114 |
| Distributions Reinvested | 27793 | 15967 |
| Redeemed | (32795) | (30394) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 49 | 90 |
| Distributions Reinvested | 413 | 216 |
| Redeemed | (309) | (374) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 2037 | 1605 |
| Distributions Reinvested | 549 | 290 |
| Redeemed | (2388) | (602) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Distributions Reinvested | 2 | 1 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Distributions Reinvested | 2 | 1 |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 7294 | 20602 |
| Total Increase (Decrease) in Net Assets | (63213) | 35527 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 322882 | 287355 |
| End of Period | $259669 | $322882 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Infrastructure Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 4062 | 2882 |
| Shares Issued on Distributions Reinvested | 1141 | 465 |
| Shares Redeemed | (4521 | (2096 |
| Net Increase in Class I Shares Outstanding | 682 | 1251 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 228 | 862 |
| Shares Issued on Distributions Reinvested | 2380 | 1089 |
| Shares Redeemed | (2395 | (1974 |
| Net Increase (Decrease) in Class A Shares Outstanding | 213 | (23 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 4 | 6 |
| Shares Issued on Distributions Reinvested | 35 | 15 |
| Shares Redeemed | (23 | (25 |
| Net Increase (Decrease) in Class L Shares Outstanding | 16 | (4 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 141 | 107 |
| Shares Issued on Distributions Reinvested | 48 | 20 |
| Shares Redeemed | (183 | (40 |
| Net Increase in Class C Shares Outstanding | 6 | 87 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Issued on Distributions Reinvested |  |  |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Infrastructure Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $15.26 | $14.47 | $15.37 | $12.39 | $14.64 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.28 | 0.30 | 0.13 | 0.35 | 0.31 |
| Net Realized and Unrealized Gain (Loss) | (1.57) | 1.72 | (0.36) | 3.11 | (1.45) |
| Total from Investment Operations | (1.29) | 2.02 | (0.23) | 3.46 | (1.14) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.36) | (0.35) | (0.40) | (0.36) | (0.37) |
| Net Realized Gain | (1.85) | (0.88) | (0.27) | (0.12) | (0.74) |
| Total Distributions | (2.21) | (1.23) | (0.67) | (0.48) | (1.11) |
| **Net Asset Value, End of Period** | $11.76 | $15.26 | $14.47 | $15.37 | $12.39 |
| **Total Return<sup>(2)</sup>** | (8.40)% | 14.14% | (1.45)% | 27.94% | (8.02)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $78217 | $91045 | $68255 | $89371 | $65311 |
| Ratio of Expenses Before Expense Limitation | 1.20% | 1.18% | 1.18% | 1.16% | 1.16% |
| Ratio of Expenses After Expense Limitation | 0.97%<sup>(3)</sup> | 0.97%<sup>(3)</sup> | 0.97%<sup>(3)</sup> | 0.97%<sup>(3)</sup> | 0.97%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 0.97%<sup>(3)</sup> | 0.97%<sup>(3)</sup> | N/A |
| Ratio of Net Investment Income | 1.96%<sup>(3)</sup> | 1.95%<sup>(3)</sup> | 0.94%<sup>(3)</sup> | 2.40%<sup>(3)</sup> | 2.21%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 57% | 61% | 62% | 30% | 43% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Infrastructure Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $15.22 | $14.44 | $15.33 | $12.36 | $14.60 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.24 | 0.27 | 0.11 | 0.31 | 0.28 |
| Net Realized and Unrealized Gain (Loss) | (1.56) | 1.70 | (0.37) | 3.10 | (1.45) |
| Total from Investment Operations | (1.32) | 1.97 | (0.26) | 3.41 | (1.17) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.32) | (0.31) | (0.36) | (0.32) | (0.33) |
| Net Realized Gain | (1.85) | (0.88) | (0.27) | (0.12) | (0.74) |
| Total Distributions | (2.17) | (1.19) | (0.63) | (0.44) | (1.07) |
| **Net Asset Value, End of Period** | $11.73 | $15.22 | $14.44 | $15.33 | $12.36 |
| **Total Return<sup>(2)</sup>** | (8.60)% | 13.89% | (1.69)% | 27.62% | (8.22)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $175406 | $224318 | $213128 | $240350 | $212919 |
| Ratio of Expenses Before Expense Limitation | 1.41% | 1.39% | 1.38% | 1.37% | 1.37% |
| Ratio of Expenses After Expense Limitation | 1.21%<sup>(3)</sup> | 1.21%<sup>(3)</sup> | 1.21%<sup>(3)</sup> | 1.21%<sup>(3)</sup> | 1.21%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.21%<sup>(3)</sup> | 1.21%<sup>(3)</sup> | N/A |
| Ratio of Net Investment Income | 1.70%<sup>(3)</sup> | 1.74%<sup>(3)</sup> | 0.74%<sup>(3)</sup> | 2.16%<sup>(3)</sup> | 2.00%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 57% | 61% | 62% | 30% | 43% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Infrastructure Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $15.18 | $14.40 | $15.29 | $12.33 | $14.55 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.16 | 0.18 | 0.02 | 0.23 | 0.20 |
| Net Realized and Unrealized Gain (Loss) | (1.55) | 1.69 | (0.36) | 3.08 | (1.44) |
| Total from Investment Operations | (1.39) | 1.87 | (0.34) | 3.31 | (1.24) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.24) | (0.21) | (0.28) | (0.23) | (0.24) |
| Net Realized Gain | (1.85) | (0.88) | (0.27) | (0.12) | (0.74) |
| Total Distributions | (2.09) | (1.09) | (0.55) | (0.35) | (0.98) |
| **Net Asset Value, End of Period** | $11.70 | $15.18 | $14.40 | $15.29 | $12.33 |
| **Total Return<sup>(2)</sup>** | (9.09)% | 13.28% | (2.27)% | 26.87% | (8.73)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $2708 | $3275 | $3163 | $3718 | $3805 |
| Ratio of Expenses Before Expense Limitation | 1.95% | 1.98% | 1.94% | 1.93% | 1.87% |
| Ratio of Expenses After Expense Limitation | 1.78%<sup>(3)</sup> | 1.78%<sup>(3)</sup> | 1.78%<sup>(3)</sup> | 1.78%<sup>(3)</sup> | 1.78%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.78%<sup>(3)</sup> | 1.78%<sup>(3)</sup> | N/A |
| Ratio of Net Investment Income | 1.15%<sup>(3)</sup> | 1.17%<sup>(3)</sup> | 0.17%<sup>(3)</sup> | 1.58%<sup>(3)</sup> | 1.41%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 57% | 61% | 62% | 30% | 43% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Infrastructure Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $14.90 | $14.18 | $15.08 | $12.17 | $14.36 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.12 | 0.14 | (0.02) | 0.18 | 0.16 |
| Net Realized and Unrealized Gain (Loss) | (1.54) | 1.66 | (0.36) | 3.05 | (1.42) |
| Total from Investment Operations | (1.42) | 1.80 | (0.38) | 3.23 | (1.26) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.17) | (0.20) | (0.25) | (0.20) | (0.19) |
| Net Realized Gain | (1.85) | (0.88) | (0.27) | (0.12) | (0.74) |
| Total Distributions | (2.02) | (1.08) | (0.52) | (0.32) | (0.93) |
| **Net Asset Value, End of Period** | $11.46 | $14.90 | $14.18 | $15.08 | $12.17 |
| **Total Return<sup>(2)</sup>** | (9.42)% | 12.93% | (2.53)% | 26.55% | (9.02)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $3314 | $4218 | $2787 | $2901 | $2580 |
| Ratio of Expenses Before Expense Limitation | 2.22% | 2.19% | 2.22% | 2.20% | 2.20% |
| Ratio of Expenses After Expense Limitation | 2.07%<sup>(3)</sup> | 2.07%<sup>(3)</sup> | 2.07%<sup>(3)</sup> | 2.07%<sup>(3)</sup> | 2.07%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 2.07%<sup>(3)</sup> | 2.07%<sup>(3)</sup> | N/A |
| Ratio of Net Investment Income (Loss) | 0.89%<sup>(3)</sup> | 0.92%<sup>(3)</sup> | (0.12)%<sup>(3)</sup> | 1.30%<sup>(3)</sup> | 1.14%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 57% | 61% | 62% | 30% | 43% |

---

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

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

(3) 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."

(4) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Infrastructure Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $15.18 | $14.40 | $15.29 | $12.38 | $14.63 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.32 | 0.34 | 0.15 | 0.38 | 0.32 |
| Net Realized and Unrealized Gain (Loss) | (1.60) | 1.67 | (0.37) | 3.01 | (1.46) |
| Total from Investment Operations | (1.28) | 2.01 | (0.22) | 3.39 | (1.14) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.36) | (0.35) | (0.40) | (0.36) | (0.37) |
| Net Realized Gain | (1.85) | (0.88) | (0.27) | (0.12) | (0.74) |
| Total Distributions | (2.21) | (1.23) | (0.67) | (0.48) | (1.11) |
| **Net Asset Value, End of Period** | $11.69 | $15.18 | $14.40 | $15.29 | $12.38 |
| **Total Return<sup>(3)</sup>** | (8.35)% | 14.17% | (1.37)% | 27.31% | (7.92)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $12 | $13 | $11 | $11 | $24462 |
| Ratio of Expenses Before Expense Limitation | 17.69% | 20.38% | 20.65% | 1.05% | 1.05% |
| Ratio of Expenses After Expense Limitation | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 2.28%<sup>(4)</sup> | 2.21%<sup>(4)</sup> | 1.03%<sup>(4)</sup> | 2.71%<sup>(4)</sup> | 2.26%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 57% | 61% | 62% | 30% | 43% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Infrastructure Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **Period from<br>June 15, 2018<sup>(1)</sup> to**<br>**December 31, 2018** |
| **Net Asset Value, Beginning of Period** | $15.25 | $14.47 | $15.36 | $12.38 | $14.10 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.32 | 0.34 | 0.15 | 0.35 | 0.20 |
| Net Realized and Unrealized Gain (Loss) | (1.61) | 1.67 | (0.37) | 3.11 | (0.81) |
| Total from Investment Operations | (1.29) | 2.01 | (0.22) | 3.46 | (0.61) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.36) | (0.35) | (0.40) | (0.36) | (0.37) |
| Net Realized Gain | (1.85) | (0.88) | (0.27) | (0.12) | (0.74) |
| Total Distributions | (2.21) | (1.23) | (0.67) | (0.48) | (1.11) |
| **Net Asset Value, End of Period** | $11.75 | $15.25 | $14.47 | $15.36 | $12.38 |
| **Total Return<sup>(3)</sup>** | (8.38)% | 14.18% | (1.43)% | 27.99% | (4.54)%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $12 | $13 | $11 | $11 | $9 |
| Ratio of Expenses Before Expense Limitation | 18.17% | 17.82% | 19.68% | 19.62% | 18.47%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)(7)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 2.28%<sup>(4)</sup> | 2.20%<sup>(4)</sup> | 1.03%<sup>(4)</sup> | 2.65%<sup>(4)</sup> | 2.67%<sup>(4)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)(7)</sup> |
| Portfolio Turnover Rate | 57% | 61% | 62% | 30% | 43% |

---

(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.<br>19

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Infrastructure Portfolio. The Fund seeks to provide both capital appreciation and income.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Airports | $5527 | $4767 | $— | $10294 |
| Communications | 28350 | 16916 |  | 45266 |
| Diversified | 4568 | 14086 |  | 18654 |
| Electricity Transmission & <br>Distribution | 18064 | 13126 |  | 31190 |
| Oil & Gas Storage & <br>Transportation | 67452 | 23205 |  | 90657 |
| Others | 36104 | 6214 |  | 42318 |
| Toll Roads |  | 7454 |  | 7454 |
| Water | 5461 | 8417 |  | 13878 |
| **Total Assets** | $**165526** | $**94185** | $**—** | $**259711** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**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 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 U.S. 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. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in the <br>Statement of <br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| $5252<br> (a) | $— | $(5252)(b)(c) | $0 |

---

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

(b) The Fund received non-cash collateral of approximately $5,491,000 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.

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

**6. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 0.85% 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 0.97% for Class I shares, 1.21% for Class A shares, 1.78% for Class L shares, 2.07% for Class C shares, 0.94% for Class R6 shares and 0.94% for Class IR 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

approximately $389,000 of advisory fees were waived and approximately $240,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support

services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $165,966,000 and $191,015,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $7,000 relating to the Fund's investment in the Liquidity Funds.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value <br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds <br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $4985 | $93295 | $98280 | $45 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized <br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $— |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Directors of the Fund who will have served as independent Directors for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Directors voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the year ended December 31, 2022, included in "Directors' Fees and Expenses" in the Statement of Operations amounted to approximately $3,000. At December 31, 2022, the Fund had an accrued pension liability of approximately $39,000, which is reflected as "Payable for Directors' Fees and Expenses" in the Statement of Assets and Liabilities.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $6885 | $35956 | $9154 | $14602 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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 December 31, 2022.

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $1619 | $— |

---

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified<br>Late Year<br>Ordinary<br>Losses<br>(000)** | **Post-October<br>Capital<br>Losses<br>(000)** |
| $— | $5363 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 58.5%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes

and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Infrastructure Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Infrastructure Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures.. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279215_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 30.76% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $35,956,000 as a long-term capital gain distribution.

The Fund designated approximately $176,000 of its distributions paid as qualified business income.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $7,227,000 as taxable at this lower rate.

The Fund intends to pass through foreign tax credits of approximately $518,000 and has derived net income from sources within foreign countries amounting to approximately $6,376,000. In January, the Fund provides tax information to shareholders for the preceding calendar year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279215_za006.jpg)

IFISGIANN<br>5437976 EXP 02.29.24

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![](j23279216_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Insight Portfolio

Annual Report

December 31, 2022

![](j23279216_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 8 |
| Consolidated Statement of Operations | 10 |
| Consolidated Statements of Changes in Net Assets | 11 |
| Consolidated Financial Highlights | 13 |
| Notes to Consolidated Financial Statements | 18 |
| Report of Independent Registered Public Accounting Firm | 30 |
| Liquidity Risk Management Program | 31 |
| Federal Tax Notice | 32 |
| U.S. Customer Privacy Notice | 33 |
| Director and Officer Information | 36 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279216_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Global Insight Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Insight Portfolio Class I | $1000.00 | $943.80 | $1020.16 | $4.90 | $5.09 | 1.00% |
| Global Insight Portfolio Class A | 1000.00 | 941.10 | 1018.55 | 6.46 | 6.72 | 1.32 |
| Global Insight Portfolio Class L | 1000.00 | 939.40 | 1015.88 | 9.04 | 9.40 | 1.85 |
| Global Insight Portfolio Class C | 1000.00 | 940.00 | 1015.22 | 9.68 | 10.06 | 1.98 |
| Global Insight Portfolio Class R6<sup>(1)</sup> | 1000.00 | 943.70 | 1020.42 | 4.65 | 4.84 | 0.95 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Insight Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –57.65%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World Net Index (the "Index"), which returned –18.36%.

**Factors Affecting Performance**

• In 2022, global equities suffered their worst year since the 2008 Global Financial Crisis (as measured by the Index), as inflation hit multi-decade highs around the world, central banks raised interest rates aggressively to rein in price increases, the U.S. dollar surged, economic growth slowed further from the post-pandemic recovery and geopolitical tensions flared. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher, contributing to cost-of-living crises across developed and emerging market countries. The U.S. Federal Reserve, Bank of England, European Central Bank and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in global stock and bond markets. By year-end, inflation appeared to be peaking in many parts of the world, but a global recession appeared increasingly likely.

• Global equities declined in the 12-month period, as measured by the Index. All sectors had negative performance except energy, which posted a high double-digit return. The weakest performing sectors were communication services, consumer discretionary and information technology.

• Counterpoint Global seeks high quality companies, which we define primarily as those with sustainable competitive advantages. We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period primarily due to unfavorable stock selection; sector allocations detracted to a lesser extent.

• Fear and uncertainty due to concerns about inflation, rising interest rates, geopolitical tensions and ongoing effects of the global pandemic continued to weigh on market sentiment, contributing to greater volatility and a continued aversion towards high growth equities. We believe this rotation away from high growth equities remains driven primarily by non-fundamental factors. Fundamentals across portfolio holdings have largely remained healthy and in line with our expectations. Despite market volatility, we continue to find many high-quality companies with attractive end-game potential due to compelling fundamentals, strong balance sheets and multiple competitive advantages. We believe today's market offers an attractive opportunity to buy unique companies with strong fundamentals that can be long-term winners over the next three to five years. While we have opportunistically added to some positions and initiated new ones, overall we have made few changes as we remain confident in the long-term prospects for the businesses we own.

• Information technology was by far the greatest detractor in the portfolio this period, due to mixed stock selection. An IT services company that offers a global cloud platform that provides security, performance, and reliability services to the applications of its customers was the biggest detractor in the sector and across the portfolio. The company reported overall healthy results that beat analysts' expectations, but some deceleration in its overall business growth, due to an elongated sales cycle, weighed on investor sentiment.

• The portfolio's stock selection and sector allocations in most other sectors diminished relative performance as well; stock selection in consumer discretionary, communication services and industrials were also among the greatest detractors. Nearly all sectors detracted over the period;

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Insight Portfolio**

although an overweight in health care was a small positive contributor, the impact to relative performance was negligible given the Fund's relative underperformance. The top stock contributor in the sector was a global immunology company; its shares outperformed as the company delivered strong results, launched its first commercial drug, and maintained a solid new product pipeline. Real Estate — a sector the portfolio has no exposure to — had a negligible impact on relative performance.

**Management Strategies**

• As a team, we believe having a market outlook can be an anchor. Our focus is on assessing company prospects over a five-year horizon, and owning a portfolio of unique companies whose market value we believe can increase significantly for underlying fundamental reasons.

![](j23279216_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI All Country World Net Index** **<sup>(1)</sup>** **and the Lipper Global Multi-Cap Growth Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(7)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –57.65% | –2.58% | 5.39% | 6.31% |
| Fund — Class A Shares w/o <br>sales charges<sup>(4)</sup> | –57.83 | –2.89 | 5.04 | 5.97 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –60.04 | –3.93 | 4.48 | 5.50 |
| Fund — Class L Shares w/o <br>sales charges<sup>(4)</sup> | –58.06 | –3.42 | 4.49 | 5.42 |
| Fund — Class C Shares w/o <br>sales charges<sup>(5)</sup> | –58.07 | –3.61 |  | 1.49 |
| Fund — Class C Shares with <br>maximum 1.00% deferred sales <br>charges<sup>(5)</sup> | –58.49 | –3.61 |  | 1.49 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(6)</sup> | –57.66 |  |  | –47.59 |
| MSCI All Country World Net Index | –18.36 | 5.23 | 7.98 | 7.31 |
| Lipper Global Multi-Cap Growth <br>Funds Index | –28.63 | 5.19 | 8.30 | 7.15 |

---

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

<sup>(1)</sup> The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Multi-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Multi-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on December 28, 2010.

<sup>(5)</sup> Commenced offering on April 30, 2015.

<sup>(6)</sup> Commenced offering on June 14, 2021. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(7)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Global Insight Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.6%)** | **Common Stocks (98.6%)** | **Common Stocks (98.6%)** |
| Belgium (0.4%) | Belgium (0.4%) | Belgium (0.4%) |
| Argenx SE ADR (a) | 819 | $310 |
| Brazil (1.6%) | Brazil (1.6%) | Brazil (1.6%) |
| NU Holdings Ltd., Class A (a) | 305856 | 1245 |
| Canada (5.5%) | Canada (5.5%) | Canada (5.5%) |
| Shopify, Inc., Class A (a) | 125468 | 4355 |
| Israel (2.6%) | Israel (2.6%) | Israel (2.6%) |
| Global-e Online Ltd. (a) | 98420 | 2031 |
| Korea, Republic of (6.1%) | Korea, Republic of (6.1%) | Korea, Republic of (6.1%) |
| Coupang, Inc. (a) | 325731 | 4792 |
| Netherlands (13.0%) | Netherlands (13.0%) | Netherlands (13.0%) |
| Adyen NV (a) | 3586 | 4978 |
| ASML Holding NV | 9696 | 5298 |
|  |  | 10276 |
| Singapore (10.0%) | Singapore (10.0%) | Singapore (10.0%) |
| Grab Holdings Ltd., Class A (a) | 1610379 | 5186 |
| Sea Ltd. ADR (a) | 51573 | 2683 |
|  |  | 7869 |
| Sweden (0.6%) | Sweden (0.6%) | Sweden (0.6%) |
| Kinnevik AB, Class B (a) | 36693 | 505 |
| United States (58.8%) | United States (58.8%) | United States (58.8%) |
| 10X Genomics, Inc., Class A (a) | 35668 | 1300 |
| Agilon health, Inc. (a) | 164290 | 2651 |
| Bill.Com Holdings, Inc. (a) | 28340 | 3088 |
| Carvana Co. (a) | 55890 | 265 |
| Cloudflare, Inc., Class A (a) | 97263 | 4397 |
| Datadog, Inc., Class A (a) | 36396 | 2675 |
| DoorDash, Inc., Class A (a) | 40538 | 1979 |
| Doximity, Inc., Class A (a) | 66110 | 2219 |
| Ginkgo Bioworks Holdings, Inc. (a) | 184897 | 312 |
| Guardant Health, Inc. (a) | 16741 | 455 |
| Illumina, Inc. (a) | 5628 | 1138 |
| Intellia Therapeutics, Inc. (a) | 7972 | 278 |
| MercadoLibre, Inc. (a) | 6446 | 5454 |
| ProKidney Corp. (a) | 64743 | 444 |
| ROBLOX Corp., Class A (a) | 86467 | 2461 |
| Royalty Pharma PLC, Class A | 137095 | 5418 |
| Snowflake, Inc., Class A (a) | 35257 | 5061 |
| Trade Desk, Inc., Class A (a) | 87881 | 3940 |
| Uber Technologies, Inc. (a) | 110826 | 2741 |
|  |  | 46276 |
| **Total Common Stocks (Cost $115,303)** | **Total Common Stocks (Cost $115,303)** | 77659 |
| **Preferred Stock (0.0%) (b)** | **Preferred Stock (0.0%) (b)** | **Preferred Stock (0.0%) (b)** |
| United States (0.0%) (b) | United States (0.0%) (b) | United States (0.0%) (b) |
| Lookout, Inc. Series F (a)(c)(d) <br>(acquisition cost — $73; acquired 6/17/14) <br>**(Cost $73)** | 6374 | 30 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Investment Company (0.5%)** | **Investment Company (0.5%)** | **Investment Company (0.5%)** |
| United States (0.5%) | United States (0.5%) | United States (0.5%) |
| Grayscale Bitcoin Trust (a) <br>**(Cost $1,953)** | 50135 | $416 |
| **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** |
| Investment Company (1.0%) | Investment Company (1.0%) | Investment Company (1.0%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $767)** | 766561 | 767 |
| **Total Investments Excluding Purchased <br>Options (100.1%) (Cost $118,096)** | **Total Investments Excluding Purchased <br>Options (100.1%) (Cost $118,096)** | 78872 |
| **Total Purchased Options Outstanding (0.2%) <br>(Cost $237)** | **Total Purchased Options Outstanding (0.2%) <br>(Cost $237)** | 151 |
| **Total Investments (100.3%) (Cost $118,333) (e)(f)(g)** | **Total Investments (100.3%) (Cost $118,333) (e)(f)(g)** | 79023 |
| Liabilities in Excess of Other Assets (–0.3%) | Liabilities in Excess of Other Assets (–0.3%) | (260) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $78763 |

---

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

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(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 December 31, 2022 amounts to approximately $30,000 and represents less than 0.05% of net assets.

(d) At December 31, 2022, the Fund held a fair valued security valued at approximately $30,000, representing less than 0.05% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(e) Securities are available for collateral in connection with purchased options.

(f) The approximate fair value and percentage of net assets, $5,483,000 and 7.0%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(g) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $135,351,000. The aggregate gross unrealized appreciation is approximately $0 and the aggregate gross unrealized depreciation is approximately $56,331,000, resulting in net unrealized depreciation of approximately $56,331,000.

ADR American Depositary Receipt.

The accompanying notes are an integral part of the consolidated financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Global Insight Portfolio**

**Call Options Purchased:**

The Fund had the following call options purchased open at December 31, 2022:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Goldman Sachs International | USD/CNH CNH | 7.87 | Oct-23 | 199460 | 199 | $— | @ | $1 | $(1) |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.53 | Jul-23 | 23789374 | 23789 | 69 |  | 119 | (50) |
| Standard Chartered Bank | USD/CNH CNH | 7.57 | Aug-23 | 26273872 | 26274 | 82 |  | 117 | (35) |
|  |  |  |  |  |  | $151 |  | $237 | $(86) |

---

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Information Technology Services | 23.8% |
| Internet & Direct Marketing Retail | 18.1 |
| Other\* | 15.6 |
| Road & Rail | 10.1 |
| Software | 7.3 |
| Pharmaceuticals | 6.9 |
| Semiconductors & Semiconductor Equipment | 6.7 |
| Entertainment | 6.5 |
| Media | 5.0 |
| 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 consolidated financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Insight Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $117,566) | $78256 |
| Investment in Security of Affiliated Issuer, at Value (Cost $767) | 767 |
| Total Investments in Securities, at Value (Cost $118,333) | 79023 |
| Foreign Currency, at Value (Cost $5) | 5 |
| Receivable for Investments Sold | 828 |
| Receivable for Fund Shares Sold | 62 |
| Tax Reclaim Receivable | 44 |
| Receivable from Affiliate | 3 |
| Dividends Receivable | 1 |
| Receivable from Securities Lending Income | 1 |
| Other Assets | 62 |
| **Total Assets** | 80029 |
| **Liabilities:** | **Liabilities:** |
| Due to Broker | 670 |
| Payable for Fund Shares Redeemed | 345 |
| Payable for Advisory Fees | 80 |
| Payable for Professional Fees | 80 |
| Payable for Investments Purchased | 16 |
| Payable for Sub Transfer Agency Fees — Class I | 10 |
| Payable for Sub Transfer Agency Fees — Class A | 4 |
| Payable for Sub Transfer Agency Fees — Class L |  |
| Payable for Sub Transfer Agency Fees — Class C | 1 |
| Payable for Shareholder Services Fees — Class A | 4 |
| Payable for Distribution and Shareholder Services Fees — Class L |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 4 |
| Payable for Custodian Fees | 7 |
| Payable for Administration Fees | 6 |
| 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 |  |
| Other Liabilities | 37 |
| **Total Liabilities** | 1266 |
| **Net Assets** | $78763 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $229799 |
| Total Accumulated Loss | (151036 |
| **Net Assets** | $78763 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Insight Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $55114 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 7112487 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.75 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $19176 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 2596451 |
| **Net Asset Value, Redemption Price Per Share** | $7.38 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.41 |
| **Maximum Offering Price Per Share** | $7.79 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $171 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 25624 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $6.69 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $4298 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 666831 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $6.45 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $4 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 475 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.74 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Insight Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $9 of Foreign Taxes Withheld) | $215 |
| Income from Securities Loaned — Net | 146 |
| Dividends from Security of Affiliated Issuer (Note G) | 23 |
| Total Investment Income | 384 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 1047 |
| Professional Fees | 276 |
| Shareholder Services Fees — Class A (Note D) | 78 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 2 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 81 |
| Sub Transfer Agency Fees — Class I | 72 |
| Sub Transfer Agency Fees — Class A | 37 |
| Sub Transfer Agency Fees — Class L |  |
| Sub Transfer Agency Fees — Class C | 6 |
| Registration Fees | 109 |
| Administration Fees (Note C) | 105 |
| Shareholder Reporting Fees | 49 |
| Custodian Fees (Note F) | 24 |
| Transfer Agency Fees — Class I (Note E) | 6 |
| Transfer Agency Fees — Class A (Note E) | 4 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Directors' Fees and Expenses | 7 |
| Pricing Fees | 4 |
| Interest Expenses | 1 |
| Other Expenses | 23 |
| Total Expenses | 1938 |
| Waiver of Advisory Fees (Note B) | (402 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (32 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (4 |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (3 |
| Net Expenses | 1493 |
| **Net Investment Loss** | (1109 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (91800 |
| Foreign Currency Translation | (22 |
| Net Realized Loss | (91822 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (53376 |
| Foreign Currency Translation | (3 |
| Net Change in Unrealized Appreciation (Depreciation) | (53379 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (145201 |
| Net Decrease in Net Assets Resulting from Operations | $(146310 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Insight Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(1109 | $(1068) |
| Net Realized Gain (Loss) | (91822 | 60994 |
| Net Change in Unrealized Appreciation (Depreciation) | (53379 | (124497) |
| Net Decrease in Net Assets Resulting from Operations | (146310 | (64571) |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (59 | (80779) |
| **Class A** | (21 | (30632) |
| **Class L** | (— | (299) |
| **Class C** | (6 | (7647) |
| **Class R6\*** | (— | (3)(a) |
| Total Dividends and Distributions to Shareholders | (86 | (119360) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 41330 | 175739 |
| Distributions Reinvested | 58 | 80514 |
| Redeemed | (86880 | (243720) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 6444 | 52620 |
| Distributions Reinvested | 21 | 30632 |
| Redeemed | (23332 | (67717) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged |  | 20 |
| Distributions Reinvested |  | 299 |
| Redeemed | (87 | (200) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 1048 | 8258 |
| Distributions Reinvested | 6 | 7647 |
| Redeemed | (5335 | (7432) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed |  | 10<br> (a) |
| Distributions Reinvested |  | 3<br> (a) |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (66727 | 36673 |
| Total Decrease in Net Assets | (213123 | (147258) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 291886 | 439144 |
| End of Period | $78763 | $291886 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Insight Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 3866 | 5343 |
| Shares Issued on Distributions Reinvested | 7 | 4511 |
| Shares Redeemed | (7746 | (8150 |
| Net Increase (Decrease) in Class I Shares Outstanding | (3873 | 1704 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 590 | 1600 |
| Shares Issued on Distributions Reinvested | 3 | 1795 |
| Shares Redeemed | (2115 | (2416 |
| Net Increase (Decrease) in Class A Shares Outstanding | (1522 | 979 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged |  | 1 |
| Shares Issued on Distributions Reinvested |  | 19 |
| Shares Redeemed | (12 | (12 |
| Net Increase (Decrease) in Class L Shares Outstanding | (12 | 8 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 110 | 278 |
| Shares Issued on Distributions Reinvested | 1 | 509 |
| Shares Redeemed | (601 | (301 |
| Net Increase (Decrease) in Class C Shares Outstanding | (490 | 486 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed |  |  |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class R6 Shares Outstanding |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(a) For the period June 14, 2021 to December 31, 2021.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Insight Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $18.32 | $33.83 | $17.96 | $13.96 | $15.43 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.07) | (0.04) | (0.24) | (0.02) | (0.03) |
| Net Realized and Unrealized Gain (Loss) | (10.49) | (5.05) | 17.29 | 4.41 | (0.80) |
| Total from Investment Operations | (10.56) | (5.09) | 17.05 | 4.39 | (0.83) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.01) |  |  |  |
| Net Realized Gain | (0.01) | (10.41) | (1.18) | (0.39) | (0.64) |
| Total Distributions | (0.01) | (10.42) | (1.18) | (0.39) | (0.64) |
| **Net Asset Value, End of Period** | $7.75 | $18.32 | $33.83 | $17.96 | $13.96 |
| **Total Return<sup>(3)</sup>** | (57.65)% | (14.25)% | 94.98% | 31.49% | (5.75)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $55114 | $201294 | $314038 | $87595 | $60271 |
| Ratio of Expenses Before Expense Limitation | 1.34% | 1.08% | N/A | 1.21% | 1.82% |
| Ratio of Expenses After Expense Limitation | 1.00%<sup>(4)</sup> | 1.00%<sup>(4)(5)</sup> | 1.09%<sup>(4)</sup> | 1.09%<sup>(4)</sup> | 1.09%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.00%<sup>(4)</sup> | 1.00%<sup>(4)(5)</sup> | N/A | 1.09%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (0.71)%<sup>(4)</sup> | (0.12)%<sup>(4)</sup> | (0.94)%<sup>(4)</sup> | (0.11)%<sup>(4)</sup> | (0.19)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 112% | 85% | 95% | 130% |

---

(1) Not consolidated.

(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) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to March 31, 2021, the maximum ratio was 1.10% for Class I shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Insight Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $17.52 | $32.98 | $17.57 | $13.71 | $15.21 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.11) | (0.13) | (0.29) | (0.07) | (0.08) |
| Net Realized and Unrealized Gain (Loss) | (10.02) | (4.92) | 16.88 | 4.32 | (0.78) |
| Total from Investment Operations | (10.13) | (5.05) | 16.59 | 4.25 | (0.86) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (0.01) | (10.41) | (1.18) | (0.39) | (0.64) |
| **Net Asset Value, End of Period** | $7.38 | $17.52 | $32.98 | $17.57 | $13.71 |
| **Total Return<sup>(3)</sup>** | (57.83)% | (14.49)% | 94.46% | 31.04% | (6.03)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $19176 | $72157 | $103550 | $43576 | $33240 |
| Ratio of Expenses Before Expense Limitation | 1.64% | 1.36% | N/A | 1.48% | 1.95% |
| Ratio of Expenses After Expense Limitation | 1.32%<sup>(4)</sup> | 1.30%<sup>(4)(5)</sup> | 1.35%<sup>(4)</sup> | 1.41%<sup>(4)</sup> | 1.41%<sup>(4)(6)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.32%<sup>(4)</sup> | 1.30%<sup>(4)(5)</sup> | N/A | 1.41%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.03)%<sup>(4)</sup> | (0.41)%<sup>(4)</sup> | (1.20)%<sup>(4)</sup> | (0.43)%<sup>(4)</sup> | (0.54)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 112% | 85% | 95% | 130% |

---

(1) Not consolidated.

(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) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.32% for Class A shares. Prior to March 31, 2021, the maximum ratio was 1.42% for Class A shares.

(6) Effective November 19, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.42% for Class A shares. Prior to November 19, 2018, the maximum ratio was 1.45% for Class A shares.

(7) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Insight Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $15.97 | $31.34 | $16.82 | $13.21 | $14.75 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.14) | (0.30) | (0.40) | (0.16) | (0.16) |
| Net Realized and Unrealized Gain (Loss) | (9.13) | (4.66) | 16.10 | 4.16 | (0.74) |
| Total from Investment Operations | (9.27) | (4.96) | 15.70 | 4.00 | (0.90) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (0.01) | (10.41) | (1.18) | (0.39) | (0.64) |
| **Net Asset Value, End of Period** | $6.69 | $15.97 | $31.34 | $16.82 | $13.21 |
| **Total Return<sup>(3)</sup>** | (58.06)% | (14.96)% | 93.38% | 30.32% | (6.50)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $171 | $602 | $923 | $573 | $462 |
| Ratio of Expenses Before Expense Limitation | 2.72% | 2.04% | 2.09% | 2.16% | 3.29% |
| Ratio of Expenses After Expense Limitation | 1.85%<sup>(4)</sup> | 1.87%<sup>(4)(5)</sup> | 1.94%<sup>(4)</sup> | 1.94%<sup>(4)</sup> | 1.94%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.85%<sup>(4)</sup> | 1.87%<sup>(4)(5)</sup> | N/A | 1.94%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.54)%<sup>(4)</sup> | (0.98)%<sup>(4)</sup> | (1.79)%<sup>(4)</sup> | (0.96)%<sup>(4)</sup> | (1.03)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 112% | 85% | 95% | 130% |

---

(1) Not consolidated.

(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) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.85% for Class L shares. Prior to March 31, 2021, the maximum ratio was 1.95% for Class L shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Insight Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $15.40 | $30.73 | $16.54 | $13.03 | $14.60 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.16) | (0.34) | (0.43) | (0.19) | (0.18) |
| Net Realized and Unrealized Gain (Loss) | (8.78) | (4.58) | 15.80 | 4.09 | (0.75) |
| Total from Investment Operations | (8.94) | (4.92) | 15.37 | 3.90 | (0.93) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (0.01) | (10.41) | (1.18) | (0.39) | (0.64) |
| **Net Asset Value, End of Period** | $6.45 | $15.40 | $30.73 | $16.54 | $13.03 |
| **Total Return<sup>(3)</sup>** | (58.07)% | (15.14)% | 92.97% | 29.97% | (6.77)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4298 | $17824 | $20633 | $10984 | $9272 |
| Ratio of Expenses Before Expense Limitation | 2.36% | 2.08% | N/A | 2.24% | 2.70% |
| Ratio of Expenses After Expense Limitation | 2.06%<sup>(4)</sup> | 2.04%<sup>(4)(5)</sup> | 2.11%<sup>(4)</sup> | 2.19%<sup>(4)</sup> | 2.19%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.06%<sup>(4)</sup> | 2.04%<sup>(4)(5)</sup> | N/A | 2.19%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.76)%<sup>(4)</sup> | (1.14)%<sup>(4)</sup> | (1.96)%<sup>(4)</sup> | (1.21)%<sup>(4)</sup> | (1.29)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 51% | 112% | 85% | 95% | 130% |

---

(1) Not consolidated.

(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) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to March 31, 2021, the maximum ratio was 2.20% for Class C shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Insight Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period from<br>June 14, 2021<sup>(2)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $18.30 | $33.39 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.07) | (0.20) |
| Net Realized and Unrealized Loss | (10.48) | (4.45) |
| Total from Investment Operations | (10.55) | (4.65) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.03) |
| Net Realized Gain | (0.01) | (10.41) |
| Total Distributions | (0.01) | (10.44) |
| **Net Asset Value, End of Period** | $7.74 | $18.30 |
| **Total Return<sup>(4)</sup>** | (57.66)% | (13.11)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4 | $9 |
| Ratio of Expenses Before Expense Limitation | 44.13% | 17.00%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)(8)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.95%<sup>(5)</sup> | 0.95%<sup>(5)(8)</sup> |
| Ratio of Net Investment Loss | (0.67)%<sup>(5)</sup> | (0.62)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 51% | 112% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Global Insight Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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 Insight Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent

with those of the Fund. As of December 31, 2022, the Subsidiary represented approximately $596,000 or approximately 0.76% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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 June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"), which clarifies the guidance in ASC Topic No. 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and introduces new disclosures related to such equity security. ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security's fair value (i.e., the entity should not apply a discount related to the contractual sale restriction, as stated in ASC 820-10-35-36B as amended by ASU 2022-03). In addition, ASU 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. The new guidance is effective for public companies with annual reporting periods in fiscal years beginning after December 15, 2023, and interim periods in the following year, with early adoption permitted. At this time, management is currently evaluating the impact of ASU 2022-03.

**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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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/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/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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; (7) Private Investment in Public Equity ("PIPE") investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** FASB ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Banks | $1245 | $— | $— | $1245 |
| Biotechnology | 1032 |  |  | 1032 |
| Chemicals | 312 |  |  | 312 |
| Diversified Financial <br>Services |  | 505 |  | 505 |
| Entertainment | 5144 |  |  | 5144 |
| Health Care Providers & <br>Services | 3106 |  |  | 3106 |
| Health Care Technology | 2219 |  |  | 2219 |
| Information Technology <br>Services | 13813 | 4978 |  | 18791 |
| Internet & Direct <br>Marketing Retail | 14256 |  |  | 14256 |
| Life Sciences Tools & <br>Services | 2438 |  |  | 2438 |
| Media | 3940 |  |  | 3940 |
| Pharmaceuticals | 5418 |  |  | 5418 |
| Road & Rail | 7927 |  |  | 7927 |
| Semiconductors & <br>Semiconductor <br>Equipment | 5298 |  |  | 5298 |
| Software | 5763 |  |  | 5763 |
| Specialty Retail | 265 |  |  | 265 |
| **Total Common Stocks** | **72176** | **5483** | **—** | **77659** |
| **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
| Software |  |  | 30 | 30 |
| **Investment Company** | 416 |  |  | 416 |
| **Call Options Purchased** |  | 151 |  | 151 |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 767 |  |  | 767 |
| **Total Assets** | $**73359** | $**5634** | $**30** | $**79023** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

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:

---

| | | |
|:---|:---|:---|
| | **Preferred<br>Stock<br>(000)** | **Preferred<br>Stock<br>(000)** |
| **Beginning Balance** | $30 |  |
| Purchases |  |  |
| Sales |  |  |
| Amortization of discount |  |  |
| Transfers in |  |  |
| Transfers out |  |  |
| Corporate actions |  |  |
| Change in unrealized appreciation (depreciation) |  | @ |
| Realized gains (losses) |  |  |
| **Ending Balance** | $30 |  |
| Net change in unrealized appreciation (depreciation) from <br>investments still held as of December 31, 2022 | $— | @ |

---

@ Value is less than $500.

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 December 31, 2022. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance. The Fund calculated the weighted averages of the unobservable inputs relative to each investment's fair value as of December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Fair Value at<br>December 31, 2022<br>(000)** | **Valuation <br>Technique** | **Unobservable <br>Input** | **Amount\*** | **Amount\*** | **Impact to <br>Valuation from an<br>Increase in Input\*\*** |
| Preferred Stock | $30 | Discounted Cash Flow | Weighted Average<br>Cost of Capital | 13.5 | % | Decrease |
|  |  |  | Perpetual Growth Rate | 3.5 | % | Increase |
|  |  | Market Comparable <br>Companies | Enterprise Value/<br>Revenue | 6.3 | x | Increase |
|  |  |  | Discount for Lack<br>of Marketability | 16.0 | % | Decrease |
|  |  | Comparable <br>Transactions | Enterprise Value/<br>Revenue | 9.3 | x | Increase |

---

\* Amount is indicative of the weighted average.

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

**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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 U.S. 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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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.

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated 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:

**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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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:** 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.

As of December 31, 2022, the Fund did not have any open PIPE 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 table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Consolidated Statement<br>of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Purchased Options | Investments, at Value<br>(Purchased Options) | <br>Currency Risk | $151<br> (a) |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value <br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(1954)(b) |

---

(b) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $1615<br> (c) |

---

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(d)<br>(000)** | **Liabilities(d)<br>(000)** |
| Purchased Options | $151<br> (a) | $— |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 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 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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Asset <br>Derivatives<br>Presented <br>in the<br>Consolidated<br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Gross Asset <br>Derivatives<br>Presented <br>in the<br>Consolidated<br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received(e)<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| Goldman Sachs International | $— | @ | $— | $(— | $0 |
| JP Morgan Chase Bank NA | 69 |  |  | (69 | 0 |
| Standard Chartered Bank | 82 |  |  | (82 | 0 |
| Total | $151 |  | $— | $(151 | $0 |

---

@ Value is less than $500.

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 195816000 |
| **Derivative Contract — PIPE:** | **Derivative Contract — PIPE:** |
| Average monthly notional amount | $338000 |

---

**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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund's Consolidated 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.

At December 31, 2022, the Fund did not have any outstanding securities on loan.

**6. 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 Consolidated Portfolio of Investments.

**7. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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<br>billion** | **Over $1<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.49% 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 1.00% for Class I shares, 1.32% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.95% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $402,000 of advisory

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

fees were waived and approximately $40,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $68,853,000 and $129,689,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $10353 | $83101 | $92687 | $23 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in <br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $767 |

---

During the year ended December 31, 2022, the Fund incurred less than $500 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $86 | $— | $23356 | $96004 |

---

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 a net operating loss resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated <br>Loss <br>(000)** | **Paid-in-<br>Capital <br>(000)** |
| $3228 | $(3228) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $41,309,000 and 34,499,000, 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.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

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| | |
|:---|:---|
| **Qualified Late <br>Year Ordinary <br>Losses<br>(000)** | **Post-October <br>Capital Losses<br>(000)** |
| $423 | $18466 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 56.0%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrencies indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money,

without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the

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**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**Special Purpose Acquisition Companies ("SPAC"):** The Fund may invest in stock, warrants, and other securities of 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 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 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. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Insight Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Global Insight Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statement of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279216_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $79,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

---

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279216_za006.jpg)

IFIGAANN<br>5435982 EXP 02.29.24

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![](j23279217_aa007.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Opportunity Portfolio

Annual Report

December 31, 2022

![](j23279217_aa008.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 7 |
| Consolidated Statement of Assets and Liabilities | 8 |
| Consolidated Statement of Operations | 10 |
| Consolidated Statements of Changes in Net Assets | 11 |
| Consolidated Financial Highlights | 13 |
| Notes to Consolidated Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 29 |
| Liquidity Risk Management Program | 30 |
| Federal Tax Notice | 31 |
| U.S. Customer Privacy Notice | 32 |
| Director and Officer Information | 35 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279217_ba009.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Global Opportunity Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Opportunity Portfolio Class I | $1000.00 | $1009.20 | $1020.57 | $4.66 | $4.69 | 0.92% |
| Global Opportunity Portfolio Class A | 1000.00 | 1007.40 | 1019.06 | 6.17 | 6.21 | 1.22 |
| Global Opportunity Portfolio Class L | 1000.00 | 1006.60 | 1018.55 | 6.68 | 6.72 | 1.32 |
| Global Opportunity Portfolio Class C | 1000.00 | 1003.80 | 1015.43 | 9.80 | 9.86 | 1.94 |
| Global Opportunity Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1009.10 | 1020.77 | 4.46 | 4.48 | 0.88 |
| Global Opportunity Portfolio Class IR | 1000.00 | 1009.10 | 1020.77 | 4.46 | 4.48 | 0.88 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Opportunity Portfolio**

The Fund seeks long-term capital appreciation.

The Fund re-opens to new investors effective January 2, 2023, given the opportunities the investment team sees in the market recently and after careful review of the Fund's capacity and liquidity constraints.<sup>(i)</sup>

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –41.54%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World Net Index (the "Index"), which returned –18.36%.

**Factors Affecting Performance**

• Global equities declined during the 12-month period ended December 31, 2022. The move was a result of macroeconomic uncertainty and higher interest rates in response to heightened inflation. Shares of high growth equities continued to underperform during the year. Growth underperformed value by a historic margin of 2,106 basis points globally, in one of the largest factor-driven value rotations in any year over the last five decades.<sup>(ii)</sup>

• Our team remained focused on assessing company prospects over a longer-term period of five to ten years, and owning a portfolio of high quality companies with diverse business drivers not tied to a particular market environment.

• The team manages concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. Our longer-term focus results in lower turnover than many of our peers. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process. For the 12-month period, the Fund underperformed the

Index due to unfavorable stock selection and sector allocation.

• The main detractors from relative performance were stock selection in the information technology, industrials and communication services sectors.

• The primary contributors to the Fund's relative performance were stock selection in financials, along with a sector overweight position in industrials and a sector underweight position in real estate.

**Management Strategies**

• There were no changes to our bottom-up investment process during the period. The Fund seeks long-term capital appreciation by investing globally in high quality established and emerging companies that the investment team believes are undervalued at the time of purchase. To achieve its objective, the investment team typically favors companies it believes have sustainable competitive advantages that can be monetized through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG).

• At the close of the period, information technology represented the largest sector weight in the Fund, followed by consumer discretionary and industrials. Our bottom-up investment process resulted in sector overweight positions in consumer discretionary, information technology, industrials and communication services, and underweight positions in real estate, financials, utilities, materials, energy, consumer staples and health care. The Fund had no real estate, utilities, materials, energy, consumer staples and health care holdings at the end of the reporting period.

<sup>(i)</sup> For more details, please visit: https://www.morganstanley.com/im/publication/mutualfund/material/notice_mf_globalopportunity.pdf

<sup>(ii)</sup> Source: MSCI. For the 12 months ended December 31, 2022, the MSCI All Country (AC) World Value Net Index returned –7.55% and the MSCI AC World Growth Net Index returned –28.61%. The MSCI AC World Value Net Index measures the performance of global equities exhibiting overall value style characteristics. The MSCI AC World Growth Net Index measures the performance of global equities exhibiting overall growth style characteristics. One basis point = 0.01%.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Opportunity Portfolio**

![](j23279217_ba010.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI All Country World Net Index** **<sup>(1)</sup>** **and the Lipper Global Large-Cap Growth Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(8)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –41.54% | 3.08% | 12.27% | 9.72% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –41.74 | 2.77 | 11.91 | 12.25 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –44.79 | 1.67 | 11.31 | 11.77 |
| Fund — Class L Shares <br>w/o sales charges<sup>(4)</sup> | –41.77 | 2.71 | 11.84 | 9.32 |
| Fund — Class C Shares <br>w/o sales charges<sup>(6)</sup> | –42.15 | 2.05 |  | 7.32 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(6)</sup> | –42.60 | 2.05 |  | 7.32 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(5)</sup> | –41.51 | 3.13 |  | 11.27 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(7)</sup> | –41.51 |  |  | 0.16 |
| MSCI All Country World Net Index | –18.36 | 5.23 | 7.98 | 5.18 |
| Lipper Global Large-Cap <br>Growth Funds Index | –27.41 | 5.49 | 8.39 | 5.55 |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Opportunity Portfolio**

<sup>(2)</sup> The Lipper Global Large-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Large-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Large-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> On May 21, 2010 Class C and Class I shares of Van Kampen Global Growth Fund ("the Predecessor Fund") were reorganized into Class L and Class I shares of Morgan Stanley Global Growth Portfolio ("the Fund"), respectively. Class L and Class I shares' returns of the Fund will differ from the Predecessor Fund as they have different expenses. Performance shown for the Fund's Class I and Class L shares reflects the performance of the shares of the Predecessor Fund for periods prior to May 21, 2010. The Class C and I shares of the Predecessor Fund commenced operations on May 30, 2008. Class P shares, which were renamed Class A shares effective September 9, 2013, commenced operations on May 21, 2010. In October 2010, the Morgan Stanley Global Growth Portfolio changed its name to the Morgan Stanley Global Opportunity Portfolio.

<sup>(5)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(6)</sup> Commenced offering on April 30, 2015.

<sup>(7)</sup> Commenced offering on June 15, 2018.

<sup>(8)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Global Opportunity Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (99.2%)** | **Common Stocks (99.2%)** | **Common Stocks (99.2%)** |
| Argentina (1.2%) | Argentina (1.2%) | Argentina (1.2%) |
| Globant SA (a) | 159699 | $26855 |
| Brazil (0.6%) | Brazil (0.6%) | Brazil (0.6%) |
| NU Holdings Ltd., Class A (a) | 3566576 | 14516 |
| Canada (3.4%) | Canada (3.4%) | Canada (3.4%) |
| Shopify, Inc., Class A (a) | 2220428 | 77071 |
| China (5.7%) | China (5.7%) | China (5.7%) |
| Meituan, Class B (a)(b) | 3446200 | 76354 |
| Trip.com Group Ltd. ADR (a) | 1487034 | 51154 |
|  |  | 127508 |
| Denmark (6.9%) | Denmark (6.9%) | Denmark (6.9%) |
| DSV AS | 979051 | 154824 |
| France (3.3%) | France (3.3%) | France (3.3%) |
| Hermes International | 47616 | 73703 |
| Germany (1.3%) | Germany (1.3%) | Germany (1.3%) |
| Adidas AG | 213444 | 28927 |
| India (11.4%) | India (11.4%) | India (11.4%) |
| HDFC Bank Ltd. | 8953713 | 175614 |
| ICICI Bank Ltd. ADR | 3716813 | 81361 |
|  |  | 256975 |
| Italy (4.3%) | Italy (4.3%) | Italy (4.3%) |
| Moncler SpA | 1846895 | 98138 |
| Japan (1.9%) | Japan (1.9%) | Japan (1.9%) |
| Keyence Corp. | 108600 | 42163 |
| Korea, Republic of (6.1%) | Korea, Republic of (6.1%) | Korea, Republic of (6.1%) |
| Coupang, Inc. (a) | 6575616 | 96727 |
| KakaoBank Corp. (a) | 834695 | 16239 |
| NAVER Corp. | 167171 | 23775 |
|  |  | 136741 |
| Netherlands (0.6%) | Netherlands (0.6%) | Netherlands (0.6%) |
| Adyen NV (a) | 9862 | 13691 |
| Singapore (1.9%) | Singapore (1.9%) | Singapore (1.9%) |
| Grab Holdings Ltd., Class A (a) | 13234581 | 42615 |
| United States (50.6%) | United States (50.6%) | United States (50.6%) |
| Adobe, Inc. (a) | 255148 | 85865 |
| Amazon.com, Inc. (a) | 936068 | 78630 |
| Block, Inc., Class A (a) | 938810 | 58995 |
| DoorDash, Inc., Class A (a) | 790554 | 38595 |
| Endeavor Group Holdings, Inc., Class A (a) | 986913 | 22245 |
| Magic Leap Class A (a)(c)(d)<br>(acquisition cost — $3,175; <br>acquired 12/22/15) | 6530 |  |
| Mastercard, Inc., Class A | 177849 | 61843 |
| MercadoLibre, Inc. (a) | 128600 | 108827 |
| Meta Platforms, Inc., Class A (a) | 606972 | 73043 |
| Salesforce.com, Inc. (a) | 435307 | 57717 |
| ServiceNow, Inc. (a) | 396478 | 153941 |
| Snowflake, Inc., Class A (a) | 81483 | 11696 |
| Spotify Technology SA (a) | 597587 | 47180 |
| Uber Technologies, Inc. (a) | 7312230 | 180831 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Visa, Inc., Class A | 356206 | $74005 |
| Walt Disney Co. (a) | 992828 | 86257 |
|  |  | 1139670 |
| **Total Investments (99.2%) (Cost $1,918,585) (e)(f)** | **Total Investments (99.2%) (Cost $1,918,585) (e)(f)** | 2233397 |
| Other Assets in Excess of Liabilities (0.8%) | Other Assets in Excess of Liabilities (0.8%) | 16900 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $2250297 |

---

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

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) 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 December 31, 2022 amounts to $0 and represents 0.0% of net assets.

(d) At December 31, 2022, the Fund held a fair valued security at $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 Company's (as defined herein) Directors.

(e) The approximate fair value and percentage of net assets, $703,428,000 and 31.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(f) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $2,004,397,000. The aggregate gross unrealized appreciation is approximately $724,451,000 and the aggregate gross unrealized depreciation is approximately $501,604,000, resulting in net unrealized appreciation of approximately $222,847,000.

ADR American Depositary Receipt.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Internet & Direct Marketing Retail | 17.9% |
| Information Technology Services | 14.5 |
| Software | 13.3 |
| Banks | 12.9 |
| Road & Rail | 10.0 |
| Textiles, Apparel & Luxury Goods | 9.0 |
| Others\* | 8.5 |
| Entertainment | 7.0 |
| Air Freight & Logistics | 6.9 |
| 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 consolidated financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $1,918,585) | $2233397 |  |
| Foreign Currency, at Value (Cost $4) | 5 |  |
| Receivable for Investments Sold | 47723 |  |
| Receivable for Fund Shares Sold | 1422 |  |
| Tax Reclaim Receivable | 902 |  |
| Receivable from Affiliate | 54 |  |
| Other Assets | 230 |  |
| **Total Assets** | 2283733 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Fund Shares Redeemed | 13395 |  |
| Bank Overdraft | 7570 |  |
| Deferred Capital Gain Country Tax | 6111 |  |
| Payable for Advisory Fees | 5003 |  |
| Payable for Sub Transfer Agency Fees — Class I | 295 |  |
| Payable for Sub Transfer Agency Fees — Class A | 119 |  |
| Payable for Sub Transfer Agency Fees — Class L | 2 |  |
| Payable for Sub Transfer Agency Fees — Class C | 25 |  |
| Payable for Shareholder Services Fees — Class A | 153 |  |
| Payable for Distribution and Shareholder Services Fees — Class L | 7 |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 137 |  |
| Payable for Administration Fees | 168 |  |
| Payable for Custodian Fees | 121 |  |
| Payable for Professional Fees | 75 |  |
| Payable for Transfer Agency Fees — Class I | 10 |  |
| Payable for Transfer Agency Fees — Class A | 33 |  |
| Payable for Transfer Agency Fees — Class L | 6 |  |
| Payable for Transfer Agency Fees — Class C | 1 |  |
| Payable for Transfer Agency Fees — Class R6\* | 3 |  |
| Payable for Transfer Agency Fees — Class IR | —- | @ |
| Payable for Investments Purchased | 18 |  |
| Other Liabilities | 184 |  |
| **Total Liabilities** | 33436 |  |
| **Net Assets** | $2250297 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $2074067 |  |
| Total Distributable Earnings | 176230 |  |
| **Net Assets** | $2250297 |  |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $1219122 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 59939559 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $20.34 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $676246 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 35227723 |
| **Net Asset Value, Redemption Price Per Share** | $19.20 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $1.06 |
| **Maximum Offering Price Per Share** | $20.26 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $24766 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1316242 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $18.82 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $148874 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 8446758 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $17.63 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $75921 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 3708701 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $20.47 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $105368 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5138809 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $20.50 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $1,381 of Foreign Taxes Withheld) | $11229 |
| Dividends from Security of Affiliated Issuer (Note G) | 545 |
| Income from Securities Loaned — Net | 109 |
| Total Investment Income | 11883 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 28213 |
| Shareholder Services Fees — Class A (Note D) | 2343 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 235 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 2302 |
| Sub Transfer Agency Fees — Class I | 2277 |
| Sub Transfer Agency Fees — Class A | 1042 |
| Sub Transfer Agency Fees — Class L | 14 |
| Sub Transfer Agency Fees — Class C | 202 |
| Administration Fees (Note C) | 3096 |
| Custodian Fees (Note F) | 566 |
| Shareholder Reporting Fees | 532 |
| Registration Fees | 319 |
| Transfer Agency Fees — Class I (Note E) | 45 |
| Transfer Agency Fees — Class A (Note E) | 190 |
| Transfer Agency Fees — Class L (Note E) | 33 |
| Transfer Agency Fees — Class C (Note E) | 9 |
| Transfer Agency Fees — Class R6\* (Note E) | 19 |
| Transfer Agency Fees — Class IR (Note E) | 2 |
| Professional Fees | 215 |
| Directors' Fees and Expenses | 60 |
| Pricing Fees | 3 |
| Other Expenses | 126 |
| Total Expenses | 41843 |
| Distribution Fees — Class L Shares Waived (Note D) | (141) |
| Rebate from Morgan Stanley Affiliate (Note G) | (86) |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (3) |
| Net Expenses | 41613 |
| **Net Investment Loss** | (29730) |
| **Realized Gain:** | **Realized Gain:** |
| Investments Sold (Net of $4,654 of Capital Gain Country Tax) | 144353 |
| Foreign Currency Translation | 407 |
| Net Realized Gain | 144760 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Decrease in Deferred Capital Gain Country Tax of $2,951) | (2776611) |
| Foreign Currency Translation | (31) |
| Net Change in Unrealized Appreciation (Depreciation) | (2776642) |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | (2631882) |
| Net Decrease in Net Assets Resulting from Operations | $(2661612) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(29730) | $(68109) |
| Net Realized Gain | 144760 | 453816 |
| Net Change in Unrealized Depreciation | (2776642) | (394101) |
| Net Decrease in Net Assets Resulting from Operations | (2661612) | (8394) |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (245165) | (220970) |
| **Class A** | (138660) | (76362) |
| **Class L** | (5119) | (2423) |
| **Class C** | (33274) | (21570) |
| **Class R6\*** | (15609) | (13666) |
| **Class IR** | (19569) | (7221) |
| Total Dividends and Distributions to Shareholders | (457396) | (342212) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 597831 | 1471766 |
| Distributions Reinvested | 234271 | 209302 |
| Redeemed | (2265331) | (1354837) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 74546 | 204306 |
| Distributions Reinvested | 136586 | 75061 |
| Redeemed | (327122) | (364420) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 81 | 32 |
| Distributions Reinvested | 4829 | 2249 |
| Redeemed | (3732) | (5193) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 11942 | 58062 |
| Distributions Reinvested | 32674 | 21141 |
| Redeemed | (117606) | (79565) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 39201 | 99877 |
| Distributions Reinvested | 14898 | 11343 |
| Redeemed | (137749) | (181792) |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Subscribed | 21000 | 40935 |
| Distributions Reinvested | 19569 | 7221 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (1664112) | 215488 |
| Total Decrease in Net Assets | (4783120) | (135118) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 7033417 | 7168535 |
| End of Period | $2250297 | $7033417 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 19655 | 31671 |
| Shares Issued on Distributions Reinvested | 11400 | 5034 |
| Shares Redeemed | (78663) | (29677) |
| Net Increase (Decrease) in Class I Shares Outstanding | (47608) | 7028 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 2599 | 4623 |
| Shares Issued on Distributions Reinvested | 7041 | 1886 |
| Shares Redeemed | (12083) | (8264) |
| Net Decrease in Class A Shares Outstanding | (2443) | (1755) |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 3 | 1 |
| Shares Issued on Distributions Reinvested | 254 | 57 |
| Shares Redeemed | (144) | (119) |
| Net Increase (Decrease) in Class L Shares Outstanding | 113 | (61) |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 448 | 1381 |
| Shares Issued on Distributions Reinvested | 1834 | 565 |
| Shares Redeemed | (4550) | (1910) |
| Net Increase (Decrease) in Class C Shares Outstanding | (2268) | 36 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 1176 | 2144 |
| Shares Issued on Distributions Reinvested | 720 | 272 |
| Shares Redeemed | (4898) | (3899) |
| Net Decrease in Class R6 Shares Outstanding | (3002) | (1483) |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Subscribed | 586 | 889 |
| Shares Issued on Distributions Reinvested | 944 | 173 |
| Net Increase in Class IR Shares Outstanding | 1530 | 1062 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $42.69 | $44.75 | $29.12 | $21.50 | $22.94 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.19) | (0.36) | (0.28) | (0.12) | (0.07) |
| Net Realized and Unrealized Gain (Loss) | (17.49) | 0.40 | 16.43 | 7.74 | (1.20) |
| Total from Investment Operations | (17.68) | 0.04 | 16.15 | 7.62 | (1.27) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.67) | (2.10) | (0.52) |  | (0.17) |
| **Net Asset Value, End of Period** | $20.34 | $42.69 | $44.75 | $29.12 | $21.50 |
| **Total Return<sup>(3)</sup>** | (41.54)% | 0.22% | 55.47% | 35.44% | (5.66)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1219122 | $4591358 | $4498617 | $2220219 | $1337133 |
| Ratio of Expenses Before Expense Limitation | 0.95% | 0.92% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(4)</sup> | 0.92%<sup>(4)</sup> | 0.92%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.94%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (0.64)%<sup>(4)</sup> | (0.78)%<sup>(4)</sup> | (0.79)%<sup>(4)</sup> | (0.44)%<sup>(4)</sup> | (0.30)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 23% | 21% | 22% | 15% | 28% |

---

(1) Not consolidated.

(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) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to January 1, 2018, the maximum ratio was 0.81% for Class I shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $40.86 | $43.04 | $28.10 | $20.81 | $22.28 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.26) | (0.47) | (0.35) | (0.18) | (0.14) |
| Net Realized and Unrealized Gain (Loss) | (16.73) | 0.39 | 15.81 | 7.47 | (1.16) |
| Total from Investment Operations | (16.99) | (0.08) | 15.46 | 7.29 | (1.30) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.67) | (2.10) | (0.52) |  | (0.17) |
| **Net Asset Value, End of Period** | $19.20 | $40.86 | $43.04 | $28.10 | $20.81 |
| **Total Return<sup>(3)</sup>** | (41.74)% | (0.05)% | 55.03% | 35.03% | (5.96)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $676246 | $1539078 | $1697016 | $1070124 | $790571 |
| Ratio of Expenses Before Expense Limitation | 1.24% | 1.20% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 1.24%<sup>(4)</sup> | 1.20%<sup>(4)</sup> | 1.20%<sup>(4)</sup> | 1.22%<sup>(4)</sup> | 1.26%<sup>(4)(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 1.22%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (0.94)%<sup>(4)</sup> | (1.06)%<sup>(4)</sup> | (1.06)%<sup>(4)</sup> | (0.72)%<sup>(4)</sup> | (0.59)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 23% | 21% | 22% | 15% | 28% |

---

(1) Not consolidated.

(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) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class A shares. Prior to January 1, 2018, the maximum ratio was 1.23% for Class A shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $40.23 | $42.44 | $27.72 | $20.54 | $22.01 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.28) | (0.48) | (0.36) | (0.19) | (0.15) |
| Net Realized and Unrealized Gain (Loss) | (16.46) | 0.37 | 15.60 | 7.37 | (1.15) |
| Total from Investment Operations | (16.74) | (0.11) | 15.24 | 7.18 | (1.30) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.67) | (2.10) | (0.52) |  | (0.17) |
| **Net Asset Value, End of Period** | $18.82 | $40.23 | $42.44 | $27.72 | $20.54 |
| **Total Return<sup>(3)</sup>** | (41.77)% | (0.12)% | 54.99% | 34.96% | (6.04)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $24766 | $48426 | $53675 | $40836 | $33913 |
| Ratio of Expenses Before Expense Limitation | 1.76% | 1.69% | 1.71% | 1.74% | 1.78% |
| Ratio of Expenses After Expense Limitation | 1.31%<sup>(4)</sup> | 1.24%<sup>(4)</sup> | 1.25%<sup>(4)</sup> | 1.28%<sup>(4)</sup> | 1.32%<sup>(4)(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 1.28%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.01)%<sup>(4)</sup> | (1.10)%<sup>(4)</sup> | (1.10)%<sup>(4)</sup> | (0.78)%<sup>(4)</sup> | (0.65)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 23% | 21% | 22% | 15% | 28% |

---

(1) Not consolidated.

(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) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.40% for Class L shares. Prior to January 1, 2018, the maximum ratio was 1.50% for Class L shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $38.43 | $40.90 | $26.90 | $20.07 | $21.64 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.43) | (0.74) | (0.57) | (0.35) | (0.30) |
| Net Realized and Unrealized Gain (Loss) | (15.70) | 0.37 | 15.09 | 7.18 | (1.10) |
| Total from Investment Operations | (16.13) | (0.37) | 14.52 | 6.83 | (1.40) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.67) | (2.10) | (0.52) |  | (0.17) |
| **Net Asset Value, End of Period** | $17.63 | $38.43 | $40.90 | $26.90 | $20.07 |
| **Total Return<sup>(3)</sup>** | (42.15)% | (0.77)% | 53.99% | 34.03% | (6.61)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $148874 | $411765 | $436790 | $251160 | $159642 |
| Ratio of Expenses Before Expense Limitation | 1.95% | 1.90% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 1.95%<sup>(4)</sup> | 1.90%<sup>(4)</sup> | 1.91%<sup>(4)</sup> | 1.94%<sup>(4)</sup> | 1.95%<sup>(4)(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 1.94%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.64)%<sup>(4)</sup> | (1.76)%<sup>(4)</sup> | (1.77)%<sup>(4)</sup> | (1.45)%<sup>(4)</sup> | (1.30)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 23% | 21% | 22% | 15% | 28% |

---

(1) Not consolidated.

(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) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to January 1, 2018, the maximum ratio was 2.20% for Class C shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $42.89 | $44.90 | $29.18 | $21.53 | $23.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.17) | (0.31) | (0.25) | (0.14) | (0.00)<sup>(4)</sup> |
| Net Realized and Unrealized Gain (Loss) | (17.58) | 0.40 | 16.49 | 7.79 | (1.30) |
| Total from Investment Operations | (17.75) | 0.09 | 16.24 | 7.65 | (1.30) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.67) | (2.10) | (0.52) |  | (0.17) |
| **Net Asset Value, End of Period** | $20.47 | $42.89 | $44.90 | $29.18 | $21.53 |
| **Total Return<sup>(5)</sup>** | (41.51)% | 0.33% | 55.67% | 35.53% | (5.78)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $75921 | $287811 | $367927 | $124173 | $2156 |
| Ratio of Expenses Before Expense Limitation | 0.87% | 0.82% | N/A | 0.86% | N/A |
| Ratio of Expenses After Expense Limitation | 0.86%<sup>(6)</sup> | 0.82%<sup>(6)</sup> | 0.82%<sup>(6)</sup> | 0.84%<sup>(6)</sup> | 0.88%<sup>(6)(7)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.84%<sup>(6)</sup> | N/A |
| Ratio of Net Investment Loss | (0.57)%<sup>(6)</sup> | (0.68)%<sup>(6)</sup> | (0.70)%<sup>(6)</sup> | (0.51)%<sup>(6)</sup> | (0.02)%<sup>(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 23% | 21% | 22% | 15% | 28% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

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

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

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

(6) 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."

(7) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.95% for Class IS shares. Prior to January 1, 2018, the maximum ratio was 0.72% for Class IS shares.

(8) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 15, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $42.94 | $44.96 | $29.22 | $21.56 | $26.67 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.16) | (0.32) | (0.24) | (0.09) | (0.06) |
| Net Realized and Unrealized Gain (Loss) | (17.61) | 0.40 | 16.50 | 7.75 | (4.88) |
| Total from Investment Operations | (17.77) | 0.08 | 16.26 | 7.66 | (4.94) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.67) | (2.10) | (0.52) |  | (0.17) |
| **Net Asset Value, End of Period** | $20.50 | $42.94 | $44.96 | $29.22 | $21.56 |
| **Total Return<sup>(4)</sup>** | (41.51)% | 0.31% | 55.66% | 35.53% | (18.63)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $105368 | $154979 | $114510 | $73569 | $54284 |
| Ratio of Expenses Before Expense Limitation | 0.86% | 0.82% | N/A | N/A | N/A |
| Ratio of Expenses After Expense Limitation | 0.86%<sup>(5)</sup> | 0.82%<sup>(5)</sup> | 0.82%<sup>(5)</sup> | 0.84%<sup>(5)</sup> | 0.88%<sup>(5)(8)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.84%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Loss | (0.57)%<sup>(5)</sup> | (0.68)%<sup>(5)</sup> | (0.69)%<sup>(5)</sup> | (0.35)%<sup>(5)</sup> | (0.46)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 23% | 21% | 22% | 15% | 28% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Global Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective December 31, 2020, the Fund suspended offering of Class I, Class A, Class C, Class R6 and Class IR shares to new investors with certain exception. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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 Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all

accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented 0% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

mean between the current bid and asked prices obtained from one or more reputable brokers/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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley (effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to the Fund), determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transac-

tions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

• 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 December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Air Freight & <br>Logistics | $— | $154824 | $— |  | $154824 |  |
| Banks | 95877 | 191853 |  |  | 287730 |  |
| Electronic <br>Equipment, <br>Instruments & <br>Components |  | 42163 |  | † | 42163 | † |
| Entertainment | 155682 |  |  |  | 155682 |  |
| Hotels, <br>Restaurants & <br>Leisure | 51154 |  |  |  | 51154 |  |
| Information <br>Technology <br>Services | 310465 | 13691 |  |  | 324156 |  |
| Interactive Media & <br>Services | 73043 | 23775 |  |  | 96818 |  |
| Internet & Direct <br>Marketing Retail | 322779 | 76354 |  |  | 399133 |  |
| Road & Rail | 223446 |  |  |  | 223446 |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Software | $297523 | $— | $— |  | $297523 |  |
| Textiles, Apparel & <br>Luxury Goods |  | 200768 |  |  | 200768 |  |
| **Total Assets** | $**1529969** | $**703428** | $**—** | **†** | $**2233397** | **†** |

---

† 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.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Common<br>Stock<br>(000)** | **Common<br>Stock<br>(000)** | **Preferred<br>Stock<br>(000)** | **Preferred<br>Stock<br>(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) <br>from investments still held as of December 31, 2022 | $— |  | $— |  |

---

† 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 U.S. 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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

satisfy its obligations 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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.

As of December 31, 2022, the Fund did not have any outstanding purchased options.

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 by primary risk exposure the Fund's change in unrealized appreciation (depreciation) by type of derivative contract for the year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(7715)(a) |

---

(a) Amounts are included in Realized Gain on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments <br>(Purchased Options) | $6160<br> (b) |

---

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 684,187,000 |

---

**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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 Consolidated 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.

At December 31, 2022, the Fund did not have any outstanding securities on loan.

**6. 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 Consolidated Portfolio of Investments.

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

**8. Dividends and Distributions to Shareholders:**Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | | |
|:---|:---|:---|
| **First $750<br>million** | **Next $750<br>million** | **Over $1.5<br>billion** |
| 0.80% | 0.75% | 0.70% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.73% 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 1.00% for Class I shares, 1.35% for Class A shares,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

1.40% for Class L shares, 2.10% for Class C shares, 0.95% for Class R6 shares and 0.95% for Class IR 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $3,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

Effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to 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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Distributor has agreed to waive for at least one year from the date of the Fund's prospectus or until such time that the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate, the 12b-1 fees on Class L shares of the Fund to the extent it exceeds 0.30% of the average daily net assets of such shares on an annualized basis. For the year ended December 31, 2022, this waiver amounted to approximately $141,000.

The Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $889,259,000 and $2,872,691,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $86,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value <br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds <br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $244678 | $1315462 | $1560140 | $545 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized <br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $0 |

---

During the year ended December 31, 2022, the Fund incurred approximately $19,000 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

in the four-year period ended December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $457396 | $43647 | $298565 |

---

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 equalization debits, a net operating loss and tax adjustments related to the Subsidiary resulted in the following reclassifications among the compoents of net assets at December 31, 2021:

---

| | |
|:---|:---|
| **Total<br>Distributable<br>Earnings<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $59172 | $(59172) |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $— | $61561 |

---

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified<br>Late Year<br>Ordinary<br>Losses<br>(000)** | **Post-October<br>Capital<br>Losses<br>(000)** |
| $— | $108181 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 52.2%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrencies indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Opportunity Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Global Opportunity Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279217_fa011.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated and paid approximately $457,396,000 as a long-term capital gain distribution.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), and Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279217_za012.jpg)

IFIGOANN<br>5439177 EXP 02.29.24

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![](j23279218_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Permanence Portfolio

Annual Report

December 31, 2022

![](j23279218_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 7 |
| Consolidated Statement of Assets and Liabilities | 9 |
| Consolidated Statement of Operations | 10 |
| Consolidated Statements of Changes in Net Assets | 11 |
| Consolidated Financial Highlights | 12 |
| Notes to Consolidated Financial Statements | 16 |
| Report of Independent Registered Public Accounting Firm | 26 |
| Liquidity Risk Management Program | 27 |
| Federal Tax Notice | 28 |
| U.S. Customer Privacy Notice | 29 |
| Director and Officer Information | 32 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279218_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Global Permanence Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Permanence Portfolio Class I | $1000.00 | $1060.10 | $1020.16 | $5.19 | $5.09 | 1.00% |
| Global Permanence Portfolio Class A | 1000.00 | 1058.70 | 1018.40 | 7.10 | 6.88 | 1.35 |
| Global Permanence Portfolio Class C | 1000.00 | 1054.10 | 1014.62 | 10.87 | 10.66 | 2.10 |
| Global Permanence Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1061.00 | 1020.42 | 4.94 | 4.84 | 0.95 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Permanence Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –19.88%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World Net Index (the "Index"), which returned –18.36%.

**Factors Affecting Performance**

• In 2022, global equities suffered their worst year since the 2008 Global Financial Crisis (as measured by the Index), as inflation hit multi-decade highs around the world, central banks raised interest rates aggressively to rein in price increases, the U.S. dollar surged, economic growth slowed further from the post-pandemic recovery and geopolitical tensions flared. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher, contributing to cost-of-living crises across developed and emerging market countries. The U.S. Federal Reserve, Bank of England, European Central Bank and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in global stock and bond markets. By year-end, inflation appeared to be peaking in many parts of the world, but a global recession appeared increasingly likely.

• Global equities declined in the 12-month period, as measured by the Index. All sectors had negative performance except energy, which posted a high double-digit return. The weakest performing sectors were communication services, consumer discretionary and information technology.

• Counterpoint Global seeks high quality companies, which we define primarily as those with sustainable competitive advantages. We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period due to unfavorable sector allocations, despite the positive contribution of stock selection.

• Fear and uncertainty due to concerns about inflation, rising interest rates, geopolitical tensions and ongoing effects of the global pandemic continued to weigh on market sentiment, contributing to greater volatility and a continued aversion towards high growth equities. We believe this rotation away from high growth equities remains driven primarily by non-fundamental factors. Fundamentals across portfolio holdings have largely remained healthy and in line with our expectations. Despite market volatility, we continue to find many high-quality companies with attractive end-game potential due to compelling fundamentals, strong balance sheets and multiple competitive advantages. We believe today's market offers an attractive opportunity to buy unique companies with strong fundamentals that can be long-term winners over the next three to five years. While we have opportunistically added to some positions and initiated new ones, overall we have made few changes as we remain confident in the long-term prospects for the businesses we own.

• Stock selection in health care was the largest detractor from relative performance, followed by an underweight in energy and stock selection in consumer staples. The greatest stock detractor across the whole portfolio was a leading supplier of lithography equipment used in the production of semiconductors, which underperformed due to a weaker-than-expected outlook resulting from delayed revenue recognition and higher expected costs related to labor, materials and a planned increase in output capacity.

• Conversely, communication services contributed the most to relative performance due to advantageous stock selection and a sector underweight. Stock selection and an overweight in industrials added to relative performance, as did stock selection in financials. The top stock contributor across the portfolio was one of the

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Permanence Portfolio**

largest landowners in Texas, which generates revenue primarily from oil and gas lease royalties. Its shares advanced as the company continued to capitalize on its unique and advantaged surface position and strong production growth.

**Management Strategies**

• As a team, we believe having a market outlook can be an anchor. Our focus is on assessing company prospects over a five-year horizon, and owning a portfolio of unique companies whose market value we believe can increase significantly for underlying fundamental reasons.

![](j23279218_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on April 30, 2019.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Permanence Portfolio**

**Performance Compared to the MSCI All Country World Net Index** **<sup>(1)</sup>** **, and the Lipper Global Multi-Cap Growth Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –19.88% |  |  | 7.31% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –20.11 |  |  | 6.95 |
| Fund — Class A Shares <br>with maximum 5.25% sales <br>charges<sup>(4)</sup> | –24.28 |  |  | 5.40 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –20.74 |  |  | 6.14 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> | –21.52 |  |  | 6.14 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –19.79 |  |  | 7.37 |
| MSCI All Country World Net Index | –18.36 |  |  | 5.76 |
| Lipper Global Multi-Cap Growth <br>Funds Index | –28.63 |  |  | 4.98 |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Multi-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Multi-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on April 30, 2019. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Global Permanence Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (96.7%)** | **Common Stocks (96.7%)** | **Common Stocks (96.7%)** |
| Brazil (0.6%) | Brazil (0.6%) | Brazil (0.6%) |
| Vale SA | 1500 | $25 |
| Canada (14.0%) | Canada (14.0%) | Canada (14.0%) |
| Canadian National Railway Co. | 1185 | 141 |
| Constellation Software, Inc. | 141 | 220 |
| FirstService Corp. | 170 | 21 |
| Topicus.com, Inc. (a) | 4026 | 211 |
|  |  | 593 |
| France (7.5%) | France (7.5%) | France (7.5%) |
| Christian Dior SE | 142 | 104 |
| EssilorLuxottica SA | 382 | 69 |
| Hermes International | 40 | 62 |
| L'Oreal SA | 174 | 62 |
| Remy Cointreau SA | 121 | 20 |
|  |  | 317 |
| India (5.3%) | India (5.3%) | India (5.3%) |
| HDFC Bank Ltd. ADR | 3310 | 226 |
| Italy (2.6%) | Italy (2.6%) | Italy (2.6%) |
| Brunello Cucinelli SpA | 845 | 63 |
| Ferrari NV | 211 | 45 |
|  |  | 108 |
| Japan (0.9%) | Japan (0.9%) | Japan (0.9%) |
| Nintendo Co., Ltd. | 900 | 38 |
| Netherlands (7.7%) | Netherlands (7.7%) | Netherlands (7.7%) |
| ASML Holding NV | 462 | 252 |
| Universal Music Group NV | 2956 | 72 |
|  |  | 324 |
| United Kingdom (8.0%) | United Kingdom (8.0%) | United Kingdom (8.0%) |
| Babcock International Group PLC (a) | 12416 | 43 |
| Rentokil Initial PLC | 33502 | 206 |
| Victoria PLC (a) | 15500 | 90 |
|  |  | 339 |
| United States (50.1%) | United States (50.1%) | United States (50.1%) |
| Alphabet, Inc., Class C (a) | 496 | 44 |
| Amazon.com, Inc. (a) | 2285 | 192 |
| Axon Enterprise, Inc. (a) | 872 | 145 |
| Brown & Brown, Inc. | 1115 | 64 |
| Cloudflare, Inc., Class A (a) | 3434 | 155 |
| Danaher Corp. | 148 | 39 |
| Floor & Decor Holdings, Inc., Class A (a) | 1856 | 129 |
| Intercontinental Exchange, Inc. | 2027 | 208 |
| Intuitive Surgical, Inc. (a) | 161 | 43 |
| Linde PLC | 137 | 45 |
| MSCI, Inc. | 86 | 40 |
| Pool Corp. | 134 | 41 |
| Progressive Corp. | 344 | 45 |
| Royal Gold, Inc. | 462 | 52 |
| Royalty Pharma PLC, Class A | 5210 | 206 |
| S&P Global, Inc. | 123 | 41 |
| Salesforce.com, Inc. (a) | 718 | 95 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Service Corp. International | 638 | $44 |
| ServiceNow, Inc. (a) | 388 | 151 |
| Sherwin-Williams Co. | 638 | 151 |
| Texas Pacific Land Corp. | 6 | 14 |
| TransDigm Group, Inc. | 67 | 42 |
| Tyler Technologies, Inc. (a) | 208 | 67 |
| UTZ Brands, Inc. | 3120 | 49 |
| Waste Connections, Inc. | 158 | 21 |
|  |  | 2123 |
| **Total Common Stocks (Cost $4,141)** | **Total Common Stocks (Cost $4,141)** | 4093 |
| **Investment Companies (1.1%)** | **Investment Companies (1.1%)** | **Investment Companies (1.1%)** |
| United Kingdom (0.8%) | United Kingdom (0.8%) | United Kingdom (0.8%) |
| Hipgnosis Songs Fund Ltd. | 30636 | 32 |
| United States (0.3%) | United States (0.3%) | United States (0.3%) |
| Grayscale Bitcoin Trust (a) | 1513 | 13 |
| **Total Investment Companies (Cost $95)** | **Total Investment Companies (Cost $95)** | 45 |
| **Short-Term Investment (1.2%)** | **Short-Term Investment (1.2%)** | **Short-Term Investment (1.2%)** |
| Investment Company (1.2%) | Investment Company (1.2%) | Investment Company (1.2%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $51)** | 51029 | 51 |
| **Total Investments Excluding Purchased <br>Options (99.0%) (Cost $4,287)** | **Total Investments Excluding Purchased <br>Options (99.0%) (Cost $4,287)** | 4189 |
| **Total Purchased Options Outstanding (0.1%) <br>(Cost $8)** | **Total Purchased Options Outstanding (0.1%) <br>(Cost $8)** | 5 |
| **Total Investments (99.1%) (Cost $4,295) (b)(c)(d)** | **Total Investments (99.1%) (Cost $4,295) (b)(c)(d)** | 4194 |
| Other Assets in Excess of Liabilities (0.9%) | Other Assets in Excess of Liabilities (0.9%) | 39 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $4233 |

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

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $886,000 and 20.9%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(c) Securities are available for collateral in connection with purchased options.

(d) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $4,441,000. The aggregate gross unrealized appreciation is approximately $362,000 and the aggregate gross unrealized depreciation is approximately $588,000, resulting in net unrealized depreciation of approximately $226,000.

ADR American Depositary Receipt.

The accompanying notes are an integral part of the consolidated financial statements.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Global Permanence Portfolio**

**Call Options Purchased:**

The Fund had the following call options purchased open at December 31, 2022:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Depreciation<br>(000)** |
| Goldman Sachs International | USD/CNH CNH | 7.87 | Oct-23 | 8108 | 8 | $— | @ | $— | @ | $(— |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.53 | Jul-23 | 791929 | 792 | 2 |  | 4 |  | (2 |
| Standard Chartered Bank | USD/CNH CNH | 7.57 | Aug-23 | 1001604 | 1002 | 3 |  | 4 |  | (1 |
|  |  |  |  |  |  | $5 |  | $8 |  | $(3 |

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@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

**Portfolio Composition**

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| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 47.5% |
| Software | 17.8 |
| Capital Markets | 6.9 |
| Semiconductors & Semiconductor Equipment | 6.0 |
| Aerospace & Defense | 5.5 |
| Textiles, Apparel & Luxury Goods | 5.5 |
| Commercial Services & Supplies | 5.4 |
| Banks | 5.4 |
| Total Investments | 100.0% |

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

The accompanying notes are an integral part of the consolidated financial statements.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Permanence Portfolio**

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| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $4,244) | $4143 |
| Investment in Security of Affiliated Issuer, at Value (Cost $51) | 51 |
| Total Investments in Securities, at Value (Cost $4,295) | 4194 |
| Foreign Currency, at Value (Cost $6) | 6 |
| Due from Adviser | 90 |
| Receivable for Fund Shares Sold | 31 |
| Receivable for Investments Sold | 7 |
| Dividends Receivable | 1 |
| Tax Reclaim Receivable |  |
| Receivable from Affiliate |  |
| Other Assets | 33 |
| **Total Assets** | 4362 |
| **Liabilities:** | **Liabilities:** |
| Payable for Professional Fees | 70 |
| Payable for Investments Purchased | 35 |
| Payable for Custodian Fees | 2 |
| Payable for Transfer Agency Fees — Class I | 1 |
| Payable for Transfer Agency Fees — Class A |  |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Payable for Shareholder Services Fees — Class A |  |
| Payable for Distribution and Shareholder Services Fees — Class C |  |
| Payable for Sub Transfer Agency Fees — Class I |  |
| Payable for Sub Transfer Agency Fees — Class A |  |
| Payable for Administration Fees |  |
| Other Liabilities | 21 |
| **Total Liabilities** | 129 |
| **Net Assets** | $4233 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $4399 |
| Total Accumulated Loss | (166 |
| **Net Assets** | $4233 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $3278 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 303621 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.80 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $858 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 80342 |
| **Net Asset Value, Redemption Price Per Share** | $10.68 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.59 |
| **Maximum Offering Price Per Share** | $11.27 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $84 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 8057 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.38 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $13 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1200 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.82 |

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\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>9

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Permanence Portfolio**

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| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $3 of Foreign Taxes Withheld) | $39 |
| Dividends from Security of Affiliated Issuer (Note G) | 1 |
| Non-Cash Dividends from Securities of Unaffiliated Issuers | 4 |
| Total Investment Income | 44 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 173 |
| Registration Fees | 61 |
| Advisory Fees (Note B) | 35 |
| Shareholder Reporting Fees | 16 |
| Custodian Fees (Note F) | 13 |
| Transfer Agency Fees — Class I (Note E) | 3 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Directors' Fees and Expenses | 5 |
| Administration Fees (Note C) | 3 |
| Pricing Fees | 3 |
| Shareholder Services Fees — Class A (Note D) | 2 |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Sub Transfer Agency Fees — Class I | 1 |
| Sub Transfer Agency Fees — Class A |  |
| Other Expenses | 18 |
| Total Expenses | 340 |
| Expenses Reimbursed by Adviser (Note B) | (251 |
| Waiver of Advisory Fees (Note B) | (35 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 47 |
| **Net Investment Loss** | (3 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (20 |
| Foreign Currency Translation | (1 |
| Net Realized Loss | (21 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (970 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (970 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (991 |
| Net Decrease in Net Assets Resulting from Operations | $(994 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Permanence Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(3 | $(2 |
| Net Realized Gain (Loss) | (21 | 475 |
| Net Change in Unrealized Appreciation (Depreciation) | (970 | 167 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (994 | 640 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (58 | (551 |
| **Class A** | (20 | (4 |
| **Class C** | (2 | (2 |
| **Class R6\*** | (— | (2 |
| Total Dividends and Distributions to Shareholders | (80 | (559 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 290 | 284 |
| Distributions Reinvested | 58 | 551 |
| Redeemed | (158 | (171 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 1950 | 27 |
| Distributions Reinvested | 20 | 4 |
| Redeemed | (927 | (20 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 65 |  |
| Distributions Reinvested | 2 | 2 |
| Redeemed | (1 |  |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Distributions Reinvested |  | 2 |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 1299 | 679 |
| Total Increase in Net Assets | 225 | 760 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 4008 | 3248 |
| End of Period | $4233 | $4008 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 25 | 18 |
| Shares Issued on Distributions Reinvested | 5 | 42 |
| Shares Redeemed | (14 | (11 |
| Net Increase in Class I Shares Outstanding | 16 | 49 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 165 | 2 |
| Shares Issued on Distributions Reinvested | 2 |  |
| Shares Redeemed | (89 | (1 |
| Net Increase in Class A Shares Outstanding | 78 | 1 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 7 |  |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (— |  |
| Net Increase in Class C Shares Outstanding | 7 |  |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Permanence Portfolio**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **Period from<br>April 30, 2019<sup>(2)</sup> to**<br>**December 31, 2019<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $13.72 | $13.41 | $10.63 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(3)</sup> | (0.00)<sup>(5)</sup> | (0.01) | (0.03) | 0.04 |
| Net Realized and Unrealized Gain (Loss) | (2.73) | 2.56 | 2.90 | 0.59 |
| Total from Investment Operations | (2.73) | 2.55 | 2.87 | 0.63 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.05) | (0.07) |  |
| Net Realized Gain | (0.19) | (2.19) | (0.02) |  |
| Total Distributions | (0.19) | (2.24) | (0.09) |  |
| **Net Asset Value, End of Period** | $10.80 | $13.72 | $13.41 | $10.63 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Total Return<sup>(4)</sup>** | (19.88)% | 19.73% | 27.06% | 6.30%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $3278 | $3947 | $3202 | $2471 |
| Ratio of Expenses Before Expense Limitation | 7.62% | 7.77% | 8.62% | 12.79%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 1.00%<sup>(6)</sup> | 1.00%<sup>(6)</sup> | 1.00%<sup>(6)</sup> | 0.99%<sup>(6)(9)</sup> |
| Ratio of Net Investment Income (Loss) | (0.02)%<sup>(6)</sup> | (0.04)%<sup>(6)</sup> | (0.30)%<sup>(6)</sup> | 0.53%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 68% | 57% | 113% | 35%<sup>(8)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(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) Amount is less than $0.005 per share.

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Permanence Portfolio**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **Period from<br> April 30, 2019<sup>(2)</sup> to**<br>**December 31, 2019<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $13.61 | $13.37 | $10.61 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(3)</sup> | (0.02) | (0.06) | (0.07) | 0.01 |
| Net Realized and Unrealized Gain (Loss) | (2.72) | 2.54 | 2.89 | 0.60 |
| Total from Investment Operations | (2.74) | 2.48 | 2.82 | 0.61 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.05) | (0.04) |  |
| Net Realized Gain | (0.19) | (2.19) | (0.02) |  |
| Total Distributions | (0.19) | (2.24) | (0.06) |  |
| **Net Asset Value, End of Period** | $10.68 | $13.61 | $13.37 | $10.61 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Total Return<sup>(4)</sup>** | (20.11)% | 19.27% | 26.57% | 6.10%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $858 | $29 | $19 | $11 |
| Ratio of Expenses Before Expense Limitation | 8.05% | 17.77% | 26.08% | 30.61%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.35%<sup>(5)</sup> | 1.35%<sup>(5)</sup> | 1.35%<sup>(5)</sup> | 1.34%<sup>(5)(8)</sup> |
| Ratio of Net Investment Income (Loss) | (0.20)%<sup>(5)</sup> | (0.42)%<sup>(5)</sup> | (0.65)%<sup>(5)</sup> | 0.17%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 68% | 57% | 113% | 35%<sup>(7)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Permanence Portfolio**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **Period from<br>April 30, 2019<sup>(2)</sup> to**<br>**December 31, 2019<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $13.34 | $13.24 | $10.56 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.14) | (0.16) | (0.15) | (0.04) |
| Net Realized and Unrealized Gain (Loss) | (2.63) | 2.50 | 2.85 | 0.60 |
| Total from Investment Operations | (2.77) | 2.34 | 2.70 | 0.56 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.05) |  |  |
| Net Realized Gain | (0.19) | (2.19) | (0.02) |  |
| Total Distributions | (0.19) | (2.24) | (0.02) |  |
| **Net Asset Value, End of Period** | $10.38 | $13.34 | $13.24 | $10.56 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Total Return<sup>(4)</sup>** | (20.74)% | 18.39% | 25.60% | 5.60%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $84 | $16 | $13 | $11 |
| Ratio of Expenses Before Expense Limitation | 15.54% | 24.91% | 28.45% | 31.59%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 2.10%<sup>(5)</sup> | 2.10%<sup>(5)</sup> | 2.10%<sup>(5)</sup> | 2.09%<sup>(5)(8)</sup> |
| Ratio of Net Investment Loss | (1.29)%<sup>(5)</sup> | (1.13)%<sup>(5)</sup> | (1.40)%<sup>(5)</sup> | (0.57)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 68% | 57% | 113% | 35%<sup>(7)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Global Permanence Portfolio**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **Period from<br>April 30, 2019<sup>(3)</sup> to**<br>**December 31, 2019<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $13.73 | $13.42 | $10.64 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(4)</sup> | 0.00<br><sup>(5)</sup> | 0.00<br><sup>(5)</sup> | (0.03) | 0.04 |
| Net Realized and Unrealized Gain (Loss) | (2.72) | 2.55 | 2.91 | 0.60 |
| Total from Investment Operations | (2.72) | 2.55 | 2.88 | 0.64 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.05) | (0.08) |  |
| Net Realized Gain | (0.19) | (2.19) | (0.02) |  |
| Total Distributions | (0.19) | (2.24) | (0.10) |  |
| **Net Asset Value, End of Period** | $10.82 | $13.73 | $13.42 | $10.64 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Total Return<sup>(6)</sup>** | (19.79)% | 19.71% | 27.09% | 6.40%<sup>(9)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $13 | $16 | $14 | $11 |
| Ratio of Expenses Before Expense Limitation | 22.37% | 22.49% | 26.62% | 30.53%<sup>(10)</sup> |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(7)</sup> | 0.95%<sup>(7)</sup> | 0.95%<sup>(7)</sup> | 0.94%<sup>(7)(10)</sup> |
| Ratio of Net Investment Income (Loss) | 0.02%<sup>(7)</sup> | 0.01%<sup>(7)</sup> | (0.24)%<sup>(7)</sup> | 0.59%<sup>(7)(10)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.01%<sup>(10)</sup> |
| Portfolio Turnover Rate | 68% | 57% | 113% | 35%<sup>(9)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Operations.

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

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

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

(7) 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."

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Global Permanence Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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 Permanence Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented approximately $19,000 or approximately 0.44% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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/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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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

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

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

• 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $187 | $43 | $— | $230 |
| Automobiles | 45 |  |  | 45 |
| Banks | 226 |  |  | 226 |
| Beverages |  | 20 |  | 20 |
| Capital Markets | 289 |  |  | 289 |
| Chemicals | 196 |  |  | 196 |
| Commercial Services & <br>Supplies | 21 | 206 |  | 227 |
| Distributors | 41 |  |  | 41 |
| Diversified Consumer <br>Services | 44 |  |  | 44 |
| Entertainment |  | 110 |  | 110 |
| Food Products | 49 |  |  | 49 |
| Health Care Equipment & <br>Supplies | 43 | 69 |  | 112 |
| Household Durables |  | 90 |  | 90 |
| Information Technology <br>Services | 155 |  |  | 155 |
| Insurance | 109 |  |  | 109 |
| Interactive Media & Services | 44 |  |  | 44 |
| Internet & Direct Marketing <br>Retail | 192 |  |  | 192 |
| Life Sciences Tools & <br>Services | 39 |  |  | 39 |
| Metals & Mining | 52 | 25 |  | 77 |
| Oil, Gas & Consumable Fuels | 14 |  |  | 14 |
| Personal Products |  | 62 |  | 62 |
| Pharmaceuticals | 206 |  |  | 206 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Real Estate Management & <br>Development | $21 | $— | $— | $21 |
| Road & Rail | 141 |  |  | 141 |
| Semiconductors & <br>Semiconductor <br>Equipment | 252 |  |  | 252 |
| Software | 744 |  |  | 744 |
| Specialty Retail | 129 |  |  | 129 |
| Textiles, Apparel & <br>Luxury Goods |  | 229 |  | 229 |
| **Total Common Stocks** | **3239** | **854** | **—** | **4093** |
| **Investment Companies** | 13 | 32 |  | 45 |
| **Call Options Purchased** |  | 5 |  | 5 |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 51 |  |  | 51 |
| **Total Assets** | $**3303** | $**891** | $**—** | $**4194** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 U.S. 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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic

characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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.

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Consolidated <br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Purchased Options | Investments, at Value<br>(Purchased Options) | Currency Risk | $5<br> (a) |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type**  | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(16)(b) |

---

(b) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $11<br> (c) |

---

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(d)<br>(000)** | **Liabilities(d)<br>(000)** |
| Purchased Options | $5<br> (a) | $— |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **<br>Counterparty** | **Gross Asset <br>Derivatives<br>Presented in the <br>Consolidated <br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Gross Asset <br>Derivatives<br>Presented in the <br>Consolidated <br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| Goldman Sachs International | $— | @ | $— | $— | $— | @ |
| JP Morgan Chase Bank NA | 2 |  |  |  | 2 |  |
| Standard Chartered Bank | 3 |  |  |  | 3 |  |
| Total | $5 |  | $— | $— | $5 |  |

---

@ Value is less than $500.

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

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 2,343,000 |

---

**5. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

quarterly, at the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $35,000 of advisory fees were waived and approximately $258,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement.

The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $4,055,000 and $2,867,000, respectively. There were no purchases and sales of long-term

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by less 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $52 | $2975 | $2976 | $1 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in <br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $51 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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. Each of the tax years in the four-year period ended December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $80 | $63 | $496 |

---

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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

Permanent differences, due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $10 | $(10) |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $— | $87 |

---

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified <br>Late Year <br>Ordinary <br>Losses<br>(000)** | **Post-October<br>Capital<br>Losses<br>(000)** |
| $9 | $— |

---

**I. Credit Facility:**The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 53.4%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrency indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also

referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):**On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Permanence Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Global Permanence Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the three years in the period then ended and the period from April 30, 2019 (commencement of operations) through December 31, 2019, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the three years in the period then ended and the period from April 30, 2019 (commencement of operations) through December 31, 2019, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279218_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated and paid approximately $80,000 as a long-term capital gain distribution.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279218_za006.jpg)

IFIGPERMANN<br>5442653 EXP 02.29.24

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![](j23279219_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Real Estate Portfolio

Annual Report

December 31, 2022

![](j23279219_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 10 |
| Statement of Operations | 12 |
| Statements of Changes in Net Assets | 13 |
| Financial Highlights | 15 |
| Notes to Financial Statements | 21 |
| Report of Independent Registered Public Accounting Firm | 29 |
| Liquidity Risk Management Program | 30 |
| Federal Tax Notice | 31 |
| U.S. Customer Privacy Notice | 32 |
| Director and Officer Information | 35 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279219_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Real Estate Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Real Estate Portfolio Class I | $1000.00 | $939.50 | $1020.27 | $4.79 | $4.99 | 0.98% |
| Global Real Estate Portfolio Class A | 1000.00 | 939.30 | 1018.80 | 6.21 | 6.46 | 1.27 |
| Global Real Estate Portfolio Class L | 1000.00 | 933.80 | 1015.88 | 9.02 | 9.40 | 1.85 |
| Global Real Estate Portfolio Class C | 1000.00 | 933.10 | 1014.62 | 10.23 | 10.66 | 2.10 |
| Global Real Estate Portfolio Class R6<sup>(1)</sup> | 1000.00 | 939.60 | 1020.47 | 4.60 | 4.79 | 0.94 |
| Global Real Estate Portfolio Class IR | 1000.00 | 940.20 | 1020.47 | 4.60 | 4.79 | 0.94 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Real Estate Portfolio**

The Fund seeks to provide current income and capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –26.03%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the FTSE EPRA Nareit Developed Net Total Return Index (the "Index")<sup>†</sup>, which returned –25.09%, and underperformed the MSCI World Net Index, which returned –18.14%.

**Factors Affecting Performance**

• Global real estate securities declined 25.1% during the 12-month period ending December 31, 2022, as measured by the Index. Amid a down market primarily dominated by inflation and related concerns — recession, rising interest rates — the real estate sector underperformed the broader equity markets.

• North American property stocks declined 25.6% for the year as measured by the FTSE EPRA Nareit North America Net Total Return Index,<sup>(i)</sup> performing in line with the broader real estate market.

o The Federal Reserve (Fed) announced its first interest rate hike of 25 basis points (bps) in the first quarter of 2022, followed by more aggressive interest rate hikes in increments of 50 and 75 bps, surprising the market and investors.<sup>(ii)</sup> The Fed's aggressive monetary policy tightening was negative for risk assets, including real estate, and led to negative absolute performance for real estate investment trusts (REITs).

o The Fund's security selection in shopping centers, apartments and storage, and the underweight to office companies were the top relative contributors for the year. Key detractors included the underweights to the gaming net lease subsector and hotels subsector, and security selection in data centers and Canada.

• Within Asia, property stocks returned –11.4% for the year, as measured by the FTSE EPRA Nareit Developed Asia Net Total Return Index,<sup>(i)</sup> outperforming global real estate securities for the year.

o The COVID-19 outbreak and tight pandemic policies in Asia, particularly in Hong Kong and mainland China (which led to lockdowns across the country) negatively impacted economic activity for most of the year. Geopolitical tensions further weighed on investor sentiment, exacerbating supply chain disruptions and aggravating inflation issues. By the second half of 2022, Australia and Japan each lifted their COVID-19 restrictions, boosting tourism by lifting their travel restrictions and accelerating in-person activities, including shopping and dining. Late in the year, Hong Kong and China followed, as the Communist Party of China successfully completed the 20<sup>th</sup> National Congress in October, and quickly reversed the dynamic zero-COVID policy in an attempt to reverse economic declines. Within the Index, Hong Kong and Singapore outperformed and Australia and Japan underperformed.

o The Fund's security selection in Japan and the overweight to Hong Kong were key contributors for the year. Key detractors included security selection in Australia and Singapore.

• European property stocks returned –40.9% for the year, as measured by the FTSE EPRA Nareit Developed Europe Index,<sup>(i)</sup> underperforming the broader real estate market.

<sup>(i)</sup> The FTSE EPRA Nareit North America Net Total Return Index is a subset of the FTSE EPRA Nareit Developed Net Total Return Index and is a free float-adjusted market capitalization weighted index composed of listed real estate securities in the North American (U.S. and Canada) real estate market. The FTSE EPRA Nareit Developed Asia Net Total Return Index is a subset of the FTSE EPRA Nareit Developed Net Total Return Index and is a free float-adjusted market capitalization weighted index composed of listed real estate securities in the Asian real estate markets. The FTSE EPRA Nareit Developed Europe Net Total Return Index is a subset of the FTSE EPRA Nareit Developed Net Total Return Index and is a free float-adjusted market capitalization weighted index composed of listed real estate securities in the European real estate markets. The performance of the indexes is listed in U.S. dollars and assume reinvestment of dividends. The indexes are unmanaged, and their returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index. Data as of December 31, 2022.

<sup>(ii)</sup> One basis point = 0.01%

<sup>†</sup> Effective after the close of business on April 29, 2022, the Fund's benchmark changed to the FTSE EPRA Nareit Developed Net Total Return Index from the FTSE EPRA Nareit Developed Index — Net Total Return to U.S. Investors.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Real Estate Portfolio**

o In Europe, inflation and the ongoing war in Ukraine were the two dominant themes in 2022. These factors fueled significant market uncertainty and put upward pressure on interest rates across Europe. Markets remained volatile as investors tried to gauge the impact on European economic growth and inflation and appraise the risk of military escalation in Ukraine. Within the Index, Austria, Ireland and Switzerland outperformed, while Germany, Norway and Sweden underperformed.

o Key Fund contributors included the underweights to Sweden and Germany, and the overweight to and security selection within the Netherlands. Key detractors were the underweight to Switzerland and a modest overweight to Ireland.

**Management Strategies**

• The team uses internal proprietary research to invest in public real estate companies that we believe offer the best value relative to their underlying assets and growth prospects. The team combines a bottom-up approach, assessing the intrinsic value, equity multiples and growth prospects of each security, with a top-down view that incorporates fundamental inflection points, macroeconomic considerations, and geopolitical and country risk. By incorporating both an equity market valuation and a more traditional real estate valuation with a top-down overlay, we believe the Fund will be better prepared to identify securities with the best expected total returns.

• Forecasted returns for the listed real estate asset class have deteriorated in the intermediate term given the more challenging macro backdrop. However, we believe relative strength in cash flows can be expected given the unique nature of listed real estate. Specifically, the contracted rental streams with inflation-linked escalations and the necessity-based nature of real estate — the listed real estate

market evolves and grows with the broader needs of society and the economy and sits at the epicenter of how people live, work, shop and communicate — coupled with limited new real estate supply additions due to rising construction costs, may suggest limited downside in cash flows and support more resiliency in fundamentals, despite near-term macro uncertainty. While our cash flow growth estimates have been reduced for 2023 in light of our expectation for lower gross domestic product growth and a potential recession, we still forecast attractive cash flow growth rates for REITs.

• Real estate values are ultimately a function of supply, demand and credit. With demand moderating due to slowing growth and credit markets tightening with increasing interest rates, we believe real estate values within the public markets have suffered. Despite the inflation protection typically associated with the listed real estate sector, REITs underperformed the broader equities market. At the same time, and as is often the case, values within the private markets are taking longer to adjust. The appraisal-based nature of private real estate typically lags public valuations by approximately 12 months, while the daily pricing and volatility of listed real estate typically results in overcorrections in the public markets, which may create an interesting arbitrage opportunity as there may be some potential contraction in private real estate values and potential appreciation in public real estate. While credit markets remain tight, the trajectory of Fed interest rate hikes is expected to slow, allowing for normalization in lending, spreads and real estate capitalization rates. Ultimately, we believe the growth profile and values of REITs should hold up better than broader equities and private real estate over the next year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Real Estate Portfolio**

![](j23279219_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the FTSE EPRA Nareit Developed Net Total Return Index<sup>(1)</sup>, FTSE EPRA Nareit Developed Index — Net Total Return to U.S. Investors<sup>(2)</sup>, the MSCI World Net Index<sup>(3)</sup> and the Lipper Global Real Estate Funds Index<sup>(4)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(5)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(5)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(5)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(5)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(11)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(6)</sup> | –26.03% | –3.06% | 1.29% | 1.84% |
| Fund — Class A Shares <br>w/o sales charges<sup>(6)</sup> | –26.10 | –3.36 | 0.99 | 1.55 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(6)</sup> | –29.98 | –4.40 | 0.45 | 1.22 |
| Fund — Class L Shares <br>w/o sales charges<sup>(7)</sup> | –26.76 | –3.93 | 0.45 | 1.05 |
| Fund — Class C Shares <br>w/o sales charges<sup>(9)</sup> | –26.97 | –4.18 |  | –2.02 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(9)</sup> | –27.53 | –4.18 |  | –2.02 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(8)</sup> | –26.05 | –3.03 |  | 1.18 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(10)</sup> | –26.01 |  |  | –3.23 |
| FTSE EPRA Nareit Developed <br>Net Total Return Index | –25.09 | –0.23 | 2.99 | 2.42 |
| FTSE EPRA Nareit Developed <br>Index — Net Total Return <br>to U.S. Investors | –24.60 | 0.41 | 3.63 | 2.95 |
| MSCI World Net Index | –18.14 | 6.14 | 8.85 | 6.10 |
| Lipper Global Real Estate <br>Funds Index | –25.28 | 0.86 | 3.76 | N/A |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Real Estate Portfolio**

<sup>(1)</sup> The FTSE EPRA Nareit Developed Net Total Return Index is a free float-adjusted market capitalization weighted index designed to reflect the stock performance of companies engaged in the North American, European and Asian real estate markets. The performance of the index is listed in U.S. dollars and assumes reinvestment of net dividends. It is not possible to invest directly in an index. Effective after the close of business on April 29, 2022, the Fund selected the FTSE EPRA Nareit Developed Net Total Return Index as its broad-based index as a replacement for the MSCI World Net Index because it believes the FTSE EPRA Nareit Developed Net Total Return Index is more reflective of the Fund's principal investment strategies.

<sup>(2)</sup> The FTSE EPRA Nareit Developed Index — Net Total Return to U.S. Investors is a free float-adjusted market capitalization weighted index designed to reflect the stock performance of companies engaged in the North American, European and Asian real estate markets. The performance of the index is listed in U.S. dollars and assumes reinvestment of net dividends. "Net Total Return to U.S. Investors" reflects a reduction in total returns after taking into account the withholding tax on dividends by certain foreign countries represented in the index for periods after 1/31/05 (gross returns used prior to 1/31/05). It is not possible to invest directly in an index.

<sup>(3)</sup> The MSCI World Net Index is a free float-adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI World Net Index currently consists of 23 developed market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(4)</sup> The Lipper Global Real Estate Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Real Estate Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Real Estate Funds classification.

<sup>(5)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(6)</sup> Commenced operations on August 30, 2006.

<sup>(7)</sup> Commenced offering on June 16, 2008.

<sup>(8)</sup> Commenced offering September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(9)</sup> Commenced offering on April 30, 2015.

<sup>(10)</sup> Commenced offering on June 15, 2018

<sup>(11)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Real Estate Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.8%)** | **Common Stocks (98.8%)** | **Common Stocks (98.8%)** |
| Australia (4.0%) | Australia (4.0%) | Australia (4.0%) |
| Goodman Group REIT | 20108 | $237 |
| National Storage REIT | 209623 | 330 |
| Region RE Ltd. REIT | 248415 | 457 |
| Scentre Group REIT | 89932 | 175 |
| Vicinity Centres REIT | 252503 | 341 |
|  |  | 1540 |
| Austria (0.3%) | Austria (0.3%) | Austria (0.3%) |
| CA Immobilien Anlagen AG (a) | 3733 | 113 |
| Belgium (1.2%) | Belgium (1.2%) | Belgium (1.2%) |
| Aedifica SA REIT | 2920 | 238 |
| Warehouses De Pauw CVA REIT | 7958 | 228 |
|  |  | 466 |
| Canada (2.5%) | Canada (2.5%) | Canada (2.5%) |
| Chartwell Retirement Residences (Units) (b) | 33272 | 208 |
| InterRent REIT | 37169 | 351 |
| RioCan REIT | 25427 | 397 |
|  |  | 956 |
| France (0.7%) | France (0.7%) | France (0.7%) |
| Carmila SA REIT (a) | 3754 | 54 |
| Mercialys SA REIT | 20412 | 213 |
|  |  | 267 |
| Germany (1.1%) | Germany (1.1%) | Germany (1.1%) |
| LEG Immobilien SE | 2525 | 165 |
| Vonovia SE | 11414 | 269 |
|  |  | 434 |
| Hong Kong (6.4%) | Hong Kong (6.4%) | Hong Kong (6.4%) |
| CK Asset Holdings Ltd. | 65000 | 399 |
| Link REIT | 87274 | 638 |
| Sun Hung Kai Properties Ltd. | 62867 | 859 |
| Wharf Real Estate Investment Co., Ltd. | 97075 | 565 |
|  |  | 2461 |
| Japan (11.6%) | Japan (11.6%) | Japan (11.6%) |
| Frontier Real Estate Investment Corp. REIT (c) | 46 | 179 |
| GLP J-REIT | 262 | 302 |
| Invincible Investment Corp. REIT | 739 | 286 |
| Japan Hotel REIT Investment Corp. | 530 | 312 |
| Japan Metropolitan Fund Investment Corp. REIT | 428 | 341 |
| Japan Real Estate Investment Corp. REIT | 70 | 308 |
| Mitsubishi Estate Co., Ltd. | 51900 | 672 |
| Mitsui Fudosan Co., Ltd. | 39400 | 720 |
| Mitsui Fudosan Logistics Park, Inc. REIT | 83 | 303 |
| Nippon Building Fund, Inc. REIT (c) | 111 | 496 |
| Nomura Real Estate Master Fund, Inc. REIT | 223 | 276 |
| Orix, Inc. J-REIT | 197 | 280 |
|  |  | 4475 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Netherlands (0.8%) | Netherlands (0.8%) | Netherlands (0.8%) |
| Eurocommercial Properties NV CVA REIT | 6618 | $160 |
| NSI NV REIT | 5733 | 143 |
|  |  | 303 |
| Singapore (3.0%) | Singapore (3.0%) | Singapore (3.0%) |
| CapitaLand Integrated Commercial Trust REIT | 248600 | 379 |
| City Developments Ltd. | 29300 | 180 |
| Frasers Centrepoint Trust REIT | 184600 | 290 |
| Mapletree Commercial Trust REIT | 240500 | 300 |
|  |  | 1149 |
| Spain (1.0%) | Spain (1.0%) | Spain (1.0%) |
| Inmobiliaria Colonial Socimi SA REIT | 29694 | 191 |
| Merlin Properties Socimi SA REIT | 23089 | 216 |
|  |  | 407 |
| Sweden (0.9%) | Sweden (0.9%) | Sweden (0.9%) |
| Castellum AB (c) | 9936 | 121 |
| Catena AB | 2119 | 79 |
| Fabege AB | 18851 | 160 |
|  |  | 360 |
| Switzerland (0.5%) | Switzerland (0.5%) | Switzerland (0.5%) |
| PSP Swiss Property AG (Registered) | 1693 | 199 |
| United Kingdom (3.7%) | United Kingdom (3.7%) | United Kingdom (3.7%) |
| Big Yellow Group PLC REIT | 10997 | 152 |
| Derwent London PLC REIT | 6337 | 181 |
| Helical PLC | 16566 | 67 |
| Impact Healthcare PLC REIT | 130941 | 167 |
| LondonMetric Property PLC REIT | 46994 | 98 |
| Segro PLC REIT | 45829 | 422 |
| UNITE Group PLC REIT | 20778 | 228 |
| Workspace Group PLC REIT | 21082 | 113 |
|  |  | 1428 |
| United States (61.1%) | United States (61.1%) | United States (61.1%) |
| Agree Realty Corp. REIT | 19394 | 1376 |
| American Homes 4 Rent, Class A REIT | 36390 | 1097 |
| Americold Realty Trust, Inc. REIT | 20016 | 567 |
| Boyd Gaming Corp. | 3145 | 171 |
| Brixmor Property Group, Inc. REIT | 34425 | 780 |
| Digital Realty Trust, Inc. REIT | 9122 | 915 |
| Equinix, Inc. REIT | 2593 | 1698 |
| Equity Residential REIT | 14062 | 830 |
| Healthpeak Properties, Inc. REIT | 17040 | 427 |
| Host Hotels & Resorts, Inc. REIT | 19592 | 314 |
| Iron Mountain, Inc. REIT | 10652 | 531 |
| Kite Realty Group Trust REIT | 31472 | 662 |
| Mid-America Apartment Communities, Inc. REIT | 8546 | 1342 |
| NETSTREIT Corp. REIT (c) | 19412 | 356 |
| ProLogis, Inc. REIT | 25851 | 2914 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Global Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| United States (cont'd) | United States (cont'd) | United States (cont'd) |
| Public Storage REIT | 9888 | $2771 |
| RPT Realty REIT | 30614 | 307 |
| Simon Property Group, Inc. REIT | 9939 | 1168 |
| SITE Centers Corp. REIT | 21920 | 299 |
| Sun Communities, Inc. REIT | 7114 | 1017 |
| UDR, Inc. REIT | 17224 | 667 |
| Ventas, Inc. REIT | 12134 | 547 |
| VICI Properties, Inc. REIT | 41068 | 1331 |
| Welltower, Inc. REIT | 23524 | 1542 |
|  |  | 23629 |
| **Total Common Stocks (Cost $32,757)** | **Total Common Stocks (Cost $32,757)** | 38187 |
| **Short-Term Investments (2.9%)** | **Short-Term Investments (2.9%)** | **Short-Term Investments (2.9%)** |
| Securities held as Collateral on Loaned Securities (1.3%) | Securities held as Collateral on Loaned Securities (1.3%) | Securities held as Collateral on Loaned Securities (1.3%) |
| Investment Company (1.1%) | Investment Company (1.1%) | Investment Company (1.1%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 417867 | 418 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.2%) | Repurchase Agreements (0.2%) | Repurchase Agreements (0.2%) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $38; fully collateralized <br>by a U.S. Government obligation; <br>4.38% due 5/15/41; valued at $40) | $38 | 38 |
| Merrill Lynch & Co., Inc., (4.25%, dated <br>12/30/22, due 1/3/23; proceeds $39; <br>fully collateralized by a U.S. Government <br>obligation; 1.50% due 2/15/25; <br>valued at $40) | 39 | 39 |
|  |  | 77 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $495)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $495)** | 495 |
|  | **Shares** |  |
| Investment Company (1.6%) | Investment Company (1.6%) | Investment Company (1.6%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $627)** | 626763 | 627 |
| **Total Short-Term Investments (Cost $1,122)** | **Total Short-Term Investments (Cost $1,122)** | 1122 |
| **Total Investments (101.7%) (Cost $33,879) <br>Including $1,134 of Securities Loaned (d)(e)** | **Total Investments (101.7%) (Cost $33,879) <br>Including $1,134 of Securities Loaned (d)(e)** | 39309 |
| Liabilities in Excess of Other Assets (–1.7%) | Liabilities in Excess of Other Assets (–1.7%) | (669) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $38640 |

---

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

(a) Non-income producing security.

(b) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(c) All or a portion of this security was on loan at December 31, 2022.

(d) The approximate fair value and percentage of net assets, $13,602,000 and 35.2%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(e) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $35,927,000. The aggregate gross unrealized appreciation is approximately $7,894,000 and the aggregate gross unrealized depreciation is approximately $4,520,000, resulting in net unrealized appreciation of approximately $3,374,000.

CVA Certificaten Van Aandelen.

REIT Real Estate Investment Trust.

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Retail | 18.6% |
| Diversified | 15.5 |
| Residential | 15.4 |
| Others\*\* | 14.3 |
| Industrial | 13.0 |
| Self Storage | 8.4 |
| Health Care | 8.1 |
| Data Centers | 6.7 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $32,834) | $38264 |  |
| Investment in Security of Affiliated Issuer, at Value (Cost $1,045) | 1045 |  |
| Total Investments in Securities, at Value (Cost $33,879) | 39309 |  |
| Foreign Currency, at Value (Cost $60) | 61 |  |
| Dividends Receivable | 119 |  |
| Tax Reclaim Receivable | 91 |  |
| Due from Adviser | 64 |  |
| Receivable for Investments Sold | 35 |  |
| Receivable from Affiliate | 1 |  |
| Receivable for Fund Shares Sold | 1 |  |
| Receivable from Securities Lending Income |  | @ |
| Other Assets | 77 |  |
| **Total Assets** | 39758 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Collateral on Securities Loaned, at Value | 495 |  |
| Deferred Capital Gain Country Tax | 285 |  |
| Payable for Investments Purchased | 130 |  |
| Payable for Fund Shares Redeemed | 80 |  |
| Payable for Sub Transfer Agency Fees — Class I | 30 |  |
| Payable for Sub Transfer Agency Fees — Class A | 1 |  |
| Payable for Sub Transfer Agency Fees — Class L |  | @ |
| Payable for Sub Transfer Agency Fees — Class C |  | @ |
| Payable for Custodian Fees | 20 |  |
| Payable for Professional Fees | 16 |  |
| 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 R6\* | 1 |  |
| Payable for Transfer Agency Fees — Class IR |  | @ |
| Payable for Administration Fees | 3 |  |
| Payable for Shareholder Services Fees — Class A |  | @ |
| Payable for Distribution and Shareholder Services Fees — Class L |  | @ |
| Payable for Distribution and Shareholder Services Fees — Class C |  | @ |
| Other Liabilities | 55 |  |
| **Total Liabilities** | 1118 |  |
| **Net Assets** | $38640 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $34466 |  |
| Total Distributable Earnings | 4174 |  |
| **Net Assets** | $38640 |  |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $35613 |

---

**Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) 8,692,225

---

| | |
|:---|:---|
| **Net Asset Value, Offering and Redemption Price Per Share** | $4.10 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $1698 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 415483 |
| **Net Asset Value, Redemption Price Per Share** | $4.09 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.23 |
| **Maximum Offering Price Per Share** | $4.32 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $352 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 87387 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $4.03 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $126 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 32444 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $3.87 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $843 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 205890 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $4.09 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $8 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1887 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $4.09 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $1134 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $56 of Foreign Taxes Withheld) | $1897 |
| Dividends from Security of Affiliated Issuer (Note G) | 7 |
| Income from Securities Loaned — Net | 6 |
| Total Investment Income | 1910 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 438 |
| Professional Fees | 185 |
| Sub Transfer Agency Fees — Class I | 88 |
| Sub Transfer Agency Fees — Class A | 3 |
| Sub Transfer Agency Fees — Class L |  |
| Sub Transfer Agency Fees — Class C |  |
| Registration Fees | 83 |
| Administration Fees (Note C) | 44 |
| Custodian Fees (Note F) | 29 |
| Shareholder Reporting Fees | 25 |
| Shareholder Services Fees — Class A (Note D) | 7 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 3 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 3 |
| Transfer Agency Fees — Class I (Note E) | 6 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 3 |
| Transfer Agency Fees — Class IR (Note E) | 2 |
| Directors' Fees and Expenses | 6 |
| Pricing Fees | 6 |
| Interest Expenses | 3 |
| Other Expenses | 10 |
| Total Expenses | 948 |
| Waiver of Advisory Fees (Note B) | (316 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (65 |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (3 |
| Reimbursement of Class Specific Expenses — Class IR (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (1 |
| Net Expenses | 557 |
| **Net Investment Income** | 1353 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold (Net of $64 of Capital Gain Country Tax) | 2040 |
| Foreign Currency Translation | (2 |
| Net Realized Gain | 2038 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Decrease in Deferred Capital Gain Country Tax of $31) | (20889 |
| Foreign Currency Translation | (9 |
| Net Change in Unrealized Appreciation (Depreciation) | (20898 |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | (18860 |
| Net Decrease in Net Assets Resulting from Operations | $(17507 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $1353 | $1489 |
| Net Realized Gain | 2038 | 86278 |
| Net Change in Unrealized Appreciation (Depreciation) | (20898) | (50866) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (17507) | 36901 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (8529) | (17738) |
| **Class A** | (499) | (1311) |
| **Class L** | (84) | (180) |
| **Class C** | (29) | (178) |
| **Class R6\*** | (215) | (6402) |
| **Class IR** | (2) | (3) |
| Total Dividends and Distributions to Shareholders | (9358) | (25812) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 1321 | 3078 |
| Distributions Reinvested | 8090 | 16727 |
| Redeemed | (9886) | (44152) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 88 | 2216 |
| Distributions Reinvested | 498 | 1311 |
| Redeemed | (923) | (3945) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 56 |  |
| Distributions Reinvested | 84 | 179 |
| Redeemed | (81) | (118) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed |  | 505 |
| Distributions Reinvested | 29 | 178 |
| Redeemed | (346) | (259) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 108 | 3687 |
| Distributions Reinvested | 206 | 6360 |
| Redeemed | (20302) | (218343) |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Distributions Reinvested | 2 | 3 |
| Net Decrease in Net Assets Resulting from Capital Share Transactions | (21056) | (232573) |
| Total Decrease in Net Assets | (47921) | (221484) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 86561 | 308045 |
| End of Period | $38640 | $86561 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 225 | 346 |
| Shares Issued on Distributions Reinvested | 1973 | 2393 |
| Shares Redeemed | (1738 | (4786 |
| Net Increase (Decrease) in Class I Shares Outstanding | 460 | (2047 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 14 | 258 |
| Shares Issued on Distributions Reinvested | 122 | 188 |
| Shares Redeemed | (187 | (503 |
| Net Decrease in Class A Shares Outstanding | (51 | (57 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 10 |  |
| Shares Issued on Distributions Reinvested | 21 | 26 |
| Shares Redeemed | (17 | (17 |
| Net Increase in Class L Shares Outstanding | 14 | 9 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed |  | 57 |
| Shares Issued on Distributions Reinvested | 8 | 27 |
| Shares Redeemed | (58 | (30 |
| Net Increase (Decrease) in Class C Shares Outstanding | (50 | 54 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 17 | 425 |
| Shares Issued on Distributions Reinvested | 50 | 911 |
| Shares Redeemed | (2969 | (24663 |
| Net Decrease in Class R6 Shares Outstanding | (2902 | (23327 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $7.24 | $8.26 | $9.87 | $9.19 | $11.13 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.15 | 0.09 | 0.15 | 0.24 | 0.27 |
| Net Realized and Unrealized Gain (Loss) | (2.04) | 1.79 | (1.57) | 1.43 | (1.11) |
| Total from Investment Operations | (1.89) | 1.88 | (1.42) | 1.67 | (0.84) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.08) | (1.57) | (0.11) | (0.54) | (0.51) |
| Net Realized Gain | (1.17) | (1.33) | (0.08) | (0.45) | (0.59) |
| Total Distributions | (1.25) | (2.90) | (0.19) | (0.99) | (1.10) |
| **Net Asset Value, End of Period** | $4.10 | $7.24 | $8.26 | $9.87 | $9.19 |
| **Total Return<sup>(2)</sup>** | (26.03)% | 23.99% | (14.33)% | 18.35% | (7.92)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $35613 | $59614 | $84874 | $323386 | $361680 |
| Ratio of Expenses Before Expense Limitation | 1.72% | 1.12% | 1.20% | 1.05% | 1.10% |
| Ratio of Expenses After Expense Limitation | 1.00%<sup>(3)</sup> | 0.94%<sup>(3)</sup> | 1.01%<sup>(3)(5)</sup> | 1.00%<sup>(3)</sup> | 1.03%<sup>(3)(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.00%<sup>(3)</sup> | 0.93%<sup>(3)</sup> | 1.00%<sup>(3)</sup> | 1.00%<sup>(3)</sup> | 1.03%<sup>(3)</sup> |
| Ratio of Net Investment Income | 2.52%<sup>(3)</sup> | 1.03%<sup>(3)</sup> | 1.86%<sup>(3)</sup> | 2.36%<sup>(3)</sup> | 2.54%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 87% | 135% | 51% | 24% | 38% |

---

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

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

(3) 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."

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to July 1, 2018, the maximum ratio was 1.05% for Class I shares.

(5) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $7.22 | $8.25 | $9.85 | $9.17 | $11.10 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.13 | 0.05 | 0.13 | 0.21 | 0.23 |
| Net Realized and Unrealized Gain (Loss) | (2.02) | 1.79 | (1.58) | 1.41 | (1.10) |
| Total from Investment Operations | (1.89) | 1.84 | (1.45) | 1.62 | (0.87) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.07) | (1.54) | (0.07) | (0.49) | (0.47) |
| Net Realized Gain | (1.17) | (1.33) | (0.08) | (0.45) | (0.59) |
| Total Distributions | (1.24) | (2.87) | (0.15) | (0.94) | (1.06) |
| **Net Asset Value, End of Period** | $4.09 | $7.22 | $8.25 | $9.85 | $9.17 |
| **Total Return<sup>(2)</sup>** | (26.10)% | 23.47% | (14.65)% | 17.90% | (8.19)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1698 | $3368 | $4316 | $10728 | $12775 |
| Ratio of Expenses Before Expense Limitation | 1.74% | 2.05% | 1.90% | 1.37% | 1.39% |
| Ratio of Expenses After Expense Limitation | 1.16%<sup>(3)</sup> | 1.36%<sup>(3)(5)</sup> | 1.36%<sup>(3)(5)</sup> | 1.35%<sup>(3)</sup> | 1.38%<sup>(3)(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.15%<sup>(3)</sup> | 1.35%<sup>(3)</sup> | 1.35%<sup>(3)</sup> | 1.35%<sup>(3)</sup> | 1.38%<sup>(3)</sup> |
| Ratio of Net Investment Income | 2.17%<sup>(3)</sup> | 0.57%<sup>(3)</sup> | 1.63%<sup>(3)</sup> | 2.00%<sup>(3)</sup> | 2.18%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 87% | 135% | 51% | 24% | 38% |

---

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

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

(3) 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."

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class A shares. Prior to July 1, 2018, the maximum ratio was 1.40% for Class A shares.

(5) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $7.14 | $8.18 | $9.75 | $9.09 | $11.01 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.10 | 0.01 | 0.08 | 0.16 | 0.17 |
| Net Realized and Unrealized Gain (Loss) | (2.01) | 1.77 | (1.56) | 1.40 | (1.09) |
| Total from Investment Operations | (1.91) | 1.78 | (1.48) | 1.56 | (0.92) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.03) | (1.49) | (0.01) | (0.45) | (0.41) |
| Net Realized Gain | (1.17) | (1.33) | (0.08) | (0.45) | (0.59) |
| Total Distributions | (1.20) | (2.82) | (0.09) | (0.90) | (1.00) |
| **Net Asset Value, End of Period** | $4.03 | $7.14 | $8.18 | $9.75 | $9.09 |
| **Total Return<sup>(2)</sup>** | (26.76)% | 22.94% | (15.17)% | 17.37% | (8.74)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $352 | $521 | $522 | $1419 | $1220 |
| Ratio of Expenses Before Expense Limitation | 2.84% | 2.30% | 2.08% | 1.91% | 2.02% |
| Ratio of Expenses After Expense Limitation | 1.85%<sup>(3)</sup> | 1.86%<sup>(3)(5)</sup> | 1.86%<sup>(3)(5)</sup> | 1.85%<sup>(3)</sup> | 1.88%<sup>(3)(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.85%<sup>(3)</sup> | 1.85%<sup>(3)</sup> | 1.85%<sup>(3)</sup> | 1.85%<sup>(3)</sup> | 1.88%<sup>(3)</sup> |
| Ratio of Net Investment Income | 1.71%<sup>(3)</sup> | 0.12%<sup>(3)</sup> | 1.07%<sup>(3)</sup> | 1.54%<sup>(3)</sup> | 1.64%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 87% | 135% | 51% | 24% | 38% |

---

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

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

(3) 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."

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.85% for Class L shares. Prior to July 1, 2018, the maximum ratio was 1.90% for Class L shares.

(5) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $6.90 | $8.01 | $9.56 | $8.92 | $10.83 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.07 | (0.00)<sup>(2)</sup> | 0.08 | 0.13 | 0.16 |
| Net Realized and Unrealized Gain (Loss) | (1.93) | 1.71 | (1.54) | 1.37 | (1.09) |
| Total from Investment Operations | (1.86) | 1.71 | (1.46) | 1.50 | (0.93) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (1.49) | (0.01) | (0.41) | (0.39) |
| Net Realized Gain | (1.17) | (1.33) | (0.08) | (0.45) | (0.59) |
| Total Distributions | (1.17) | (2.82) | (0.09) | (0.86) | (0.98) |
| **Net Asset Value, End of Period** | $3.87 | $6.90 | $8.01 | $9.56 | $8.92 |
| **Total Return<sup>(3)</sup>** | (26.97)% | 22.54% | (15.26)% | 16.98% | (8.93)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $126 | $569 | $225 | $397 | $428 |
| Ratio of Expenses Before Expense Limitation | 3.49% | 2.94% | 2.96% | 2.51% | 2.47% |
| Ratio of Expenses After Expense Limitation | 2.10%<sup>(4)</sup> | 2.11%<sup>(4)(6)</sup> | 2.11%<sup>(4)(6)</sup> | 2.10%<sup>(4)</sup> | 2.12%<sup>(4)(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.10%<sup>(4)</sup> | 2.10%<sup>(4)</sup> | 2.10%<sup>(4)</sup> | 2.10%<sup>(4)</sup> | 2.12%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | 1.11%<sup>(4)</sup> | (0.03)%<sup>(4)</sup> | 1.00%<sup>(4)</sup> | 1.26%<sup>(4)</sup> | 1.53%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> |
| Portfolio Turnover Rate | 87% | 135% | 51% | 24% | 38% |

---

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

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

(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 (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) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to July 1, 2018, the maximum ratio was 2.15% for Class C shares.

(6) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $7.23 | $8.25 | $9.87 | $9.19 | $11.13 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.14 | 0.08 | 0.17 | 0.25 | 0.28 |
| Net Realized and Unrealized Gain (Loss) | (2.02) | 1.80 | (1.59) | 1.43 | (1.11) |
| Total from Investment Operations | (1.88) | 1.88 | (1.42) | 1.68 | (0.83) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.09) | (1.57) | (0.12) | (0.55) | (0.52) |
| Net Realized Gain | (1.17) | (1.33) | (0.08) | (0.45) | (0.59) |
| Total Distributions | (1.26) | (2.90) | (0.20) | (1.00) | (1.11) |
| **Net Asset Value, End of Period** | $4.09 | $7.23 | $8.25 | $9.87 | $9.19 |
| **Total Return<sup>(3)</sup>** | (26.05)% | 24.02% | (14.36)% | 18.43% | (7.83)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $843 | $22479 | $218100 | $350363 | $517658 |
| Ratio of Expenses Before Expense Limitation | 1.59% | 1.13% | 1.01% | 0.94% | N/A |
| Ratio of Expenses After Expense Limitation | 0.94%<sup>(4)</sup> | 0.95%<sup>(4)(6)</sup> | 0.95%<sup>(4)(6)</sup> | 0.94%<sup>(4)</sup> | 0.95%<sup>(4)(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.94%<sup>(4)</sup> | 0.95%<sup>(4)</sup> |
| Ratio of Net Investment Income | 2.21%<sup>(4)</sup> | 0.93%<sup>(4)</sup> | 2.21%<sup>(4)</sup> | 2.41%<sup>(4)</sup> | 2.58%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> |
| Portfolio Turnover Rate | 87% | 135% | 51% | 24% | 38% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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 July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class R6 shares. Prior to July 1, 2018, the maximum ratio was 0.99% for Class R6 shares.

(6) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **Period from <br>June 15, 2018<sup>(1)</sup> to**<br>**December 31, 2018** |
| **Net Asset Value, Beginning of Period** | $7.23 | $8.25 | $9.87 | $9.19 | $11.09 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.15 | 0.04 | 0.18 | 0.25 | 0.23 |
| Net Realized and Unrealized Gain (Loss) | (2.03) | 1.84 | (1.60) | 1.43 | (1.02) |
| Total from Investment Operations | (1.88) | 1.88 | (1.42) | 1.68 | (0.79) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.09) | (1.57) | (0.12) | (0.55) | (0.52) |
| Net Realized Gain | (1.17) | (1.33) | (0.08) | (0.45) | (0.59) |
| Total Distributions | (1.26) | (2.90) | (0.20) | (1.00) | (1.11) |
| **Net Asset Value, End of Period** | $4.09 | $7.23 | $8.25 | $9.87 | $9.19 |
| **Total Return<sup>(3)</sup>** | (26.01)% | 24.08% | (14.36)% | 18.44% | (7.49)%<sup>(4)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $8 | $10 | $8 | $10 | $8 |
| Ratio of Expenses Before Expense Limitation | 23.96% | 23.02% | 26.07% | 21.38% | 18.72%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 0.94%<sup>(5)</sup> | 0.95%<sup>(5)(7)</sup> | 0.95%<sup>(5)(7)</sup> | 0.94%<sup>(5)</sup> | 0.94%<sup>(5)(6)(9)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | 0.94%<sup>(5)</sup> | 0.94%<sup>(5)</sup> | 0.94%<sup>(5)</sup> | 0.94%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Income | 2.52%<sup>(5)</sup> | 0.46%<sup>(5)</sup> | 2.37%<sup>(5)</sup> | 2.45%<sup>(5)</sup> | 3.94%<sup>(5)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)(9)</sup> |
| Portfolio Turnover Rate | 87% | 135% | 51% | 24% | 38% |

---

(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) Not annualized.

(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) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class IR shares. Prior to July 1, 2018, the maximum ratio was 0.99% for Class IR shares.

(7) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(8) Amount is less than 0.005%.

(9) Annualized.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Real Estate Portfolio. The Fund seeks to provide current income and capital appreciation. The Fund has capital subscription commitments to an investee company for this same purpose, the details of which are disclosed in the Unfunded Commitments note.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") and Morgan Stanley Investment Management Company ("MSIM Company") (together, the "Sub-Advisers"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, including circumstances under which the Adviser or the Sub-Advisers determine that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The Fund invests a significant portion of its assets in securities of real estate investment trusts ("REITs"). The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Diversified | $2613 | $6024 | $— | $8637 |
| Health Care | 2724 | 405 |  | 3129 |
| Industrial | 3481 | 1571 |  | 5052 |
| Industrial/Office Mixed |  | 219 |  | 219 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Lodging/Resorts | $485 | $598 | $— | $1083 |
| Office |  | 1772 |  | 1772 |
| Residential | 5304 | 662 |  | 5966 |
| Retail | 5345 | 1869 |  | 7214 |
| Self Storage | 2771 | 482 |  | 3253 |
| Specialty | 1862 |  |  | 1862 |
| **Total Common Stocks** | **24585** | **13602** | **—** | **38187** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 1045 |  |  | 1045 |
| Repurchase Agreements |  | 77 |  | 77 |
| **Total Short-Term <br>Investments** | **1045** | **77** | **—** | **1122** |
| **Total Assets** | $**25630** | $**13679** | $**—** | $**39309** |

---

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<br>Stocks<br>(000)** |
| **Beginning Balance** | $167 |
| Purchases |  |
| Sales | (— |
| Amortization of discount |  |
| Transfers in |  |
| Transfers out |  |
| Corporate actions |  |
| Distributions | (167 |
| Change in unrealized appreciation (depreciation) |  |
| Realized gains (losses) |  |
| **Ending Balance** | $— |
| Net change in unrealized appreciation (depreciation) from <br>investments still held as of December 31, 2022 | $— |

---

† Includes securities valued at zero.

**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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 U.S. 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. 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in <br>the Statement of <br>Assets and <br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $1134<br> (a) | $— | $(1134)(b)(c) | $0 |

---

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

(b) The Fund received cash collateral of approximately $495,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $697,000 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.

(c) 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 borrowings.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 &<br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stocks | $495 | $— | $— | $— | $495 |
| **Total Borrowings** | $**495** | $**—** | $**—** | $**—** | $**495** |
| **Gross amount of <br>recognized liabilities <br>for securities lending <br>transactions** |  |  |  |  | $**495** |

---

**6. Unfunded Commitments:**Subject to the terms of a Subscription Agreement between the Fund and Exeter Industrial Value Fund LP, the Fund has made a subscription commitment of $2,000,000 for which it will receive 2,000,000 shares of common stock. On December 29, 2022, the Fund was notified of a liquidating cash distribution based on cash proceeds from a property sale and operations through December 31, 2022. After the completion of the distribution, the remaining unfunded commitment eligible to be called was $0.

**7. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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.

Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $2<br>billion** | **Over $2<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.22% 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 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares, 0.94% for Class R6 shares and 0.94% for Class IR 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 that the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $316,000 of advisory fees were waived and

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

approximately $74,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has entered into Sub-Advisory Agreements with the Sub-Advisers, each a wholly-owned subsidiary of Morgan Stanley. The Sub-Advisers provide the Fund with advisory services subject to the overall supervision of the Adviser and the Company's Officers and Directors. The Adviser pays the Sub-Advisers on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $48,680,000 and $78,329,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the 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 year ended December 31, 2022, advisory fees paid were reduced by

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $259 | $16273 | $15487 | $7 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized <br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $1045 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $6952 | $2406 | $18710 | $7102 |

---

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 an adjustment to prior period equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Distributable<br>Earnings<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $(1287) | $1287 |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $636 | $193 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**I. Credit Facility:**The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 64.2%.

**K. Market Risk:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at

any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):**On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Global Real Estate Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Real Estate Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279219_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 0.08% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $2,406,000 as a long-term capital gain distribution.

The Fund designated approximately $400,000 of its distributions paid as qualified business income.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $509,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Advisers**

Morgan Stanley Investment Management Limited<br>25 Cabot Square, Canary Wharf<br>London, E14 4QA, England

Morgan Stanley Investment Management Company<br>23 Church Street<br>16-01 Capital Square, Singapore 049481

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279219_za006.jpg)

IFIGREANN<br>5452855 EXP 02.29.24

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![](j23279220_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Global Sustain Portfolio

Annual Report

December 31, 2022

![](j23279220_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 9 |
| Statement of Operations | 11 |
| Statements of Changes in Net Assets | 12 |
| Financial Highlights | 14 |
| Notes to Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 26 |
| Liquidity Risk Management Program | 27 |
| Federal Tax Notice | 28 |
| U.S. Customer Privacy Notice | 29 |
| Director and Officer Information | 32 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279220_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Global Sustain Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Global Sustain Portfolio Class I | $1000.00 | $999.90 | $1020.67 | $4.54 | $4.58 | 0.90% |
| Global Sustain Portfolio Class A | 1000.00 | 998.90 | 1018.90 | 6.30 | 6.36 | 1.25 |
| Global Sustain Portfolio Class L | 1000.00 | 995.50 | 1016.38 | 8.80 | 8.89 | 1.75 |
| Global Sustain Portfolio Class C | 1000.00 | 994.70 | 1015.22 | 9.95 | 10.06 | 1.98 |
| Global Sustain Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1000.40 | 1020.92 | 4.29 | 4.33 | 0.85 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Global Sustain Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –20.69%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI World Net Index (the "Index"), which returned –18.14%.

**Factors Affecting Performance**

• Despite a weak December 2022, the Index managed an impressive fourth quarter return of +9.8% in U.S. dollars (USD). Overall, 2022 has been a tough environment for global equity markets, with the Index down 18.1%, wiping out most of its 2021 gains. Looking at sectors, the fourth quarter was skewed toward the more cyclical sectors: Energy (+20%) was strong, as it has been for the year as a whole, up a remarkable +46% in 2022 — the only sector with positive performance. Industrials (+18%), materials (+17%) and financials (+16%) also finished ahead of the Index in the quarter and were also ahead for the year, albeit with double-digit drawdowns. The portfolio's key defensive sectors — health care (+13%) and consumer staples (+12%) — followed, ahead of the overall Index both in the quarter and the year (–5% and –6% respectively for 2022). In contrast, the expensive, growth-tilted information technology (+5%) and consumer discretionary (–2%) sectors lagged in the fourth quarter, as they had done for much of 2022, both finishing down more than 30%.

• Looking at geographies, the U.S. (+7%) was behind the Index in the fourth quarter of 2022, which meant other major markets tended to outperform. Key euro markets did particularly well, helped by the recovery in the currency, with Italy (+26%), Germany (+25%), Spain (+23%) and France (+22%) all well ahead. In Asia, Hong Kong was also strong in the fourth quarter (+18%), while Singapore (+10%) and Japan (+13%) were closer to the overall Index. Elsewhere, Switzerland (+10%) was roughly in line with the Index, while the U.K. significantly outperformed (+17%). The U.S. also

underperformed for the year (–20% against the Index's –18%), while most of Europe outperformed, with the notable exception of Germany (–22%). The U.K. finished as one of the year's top performers, having returned –5%. Within Asia, Hong Kong did well (–5%), while Singapore (–11%) and Japan (–17%) showed milder outperformance. (Country performance is shown in USD.)

• For 2022, the Fund's underperformance was driven by stock selection. Health care was particularly weak as the portfolio is concentrated in the life sciences and equipment sub-sectors, rather than pharmaceuticals and providers. Industrials and consumer staples also underperformed, canceling out strong performance in information technology. Sector allocation was modestly negative, as the benefit from the portfolio's health care overweight and consumer discretionary and communication services underweights was balanced by the drag from the portfolio's lack of exposure to the strongly performing energy sector and overweight to the lagging information technology sector.

• The Fund's largest absolute contributors for 2022 were Adobe, AIA, Coca-Cola, Deutsche Boerse and Becton Dickinson. The largest absolute detractors in 2022 were Microsoft, Baxter, Accenture, Stanley Black & Decker and Alphabet.

**Management Strategies**

***Multiples have Tumbled, are Earnings Next?***

• At the start of 2022, we only had two worries about the equity market, but they were significant ones: the multiple and the earnings. In 2022, forward earnings held up reasonably well, up 4% for MSCI World Index.<sup>(i)</sup> The 18% fall in the Index, therefore, has been entirely down to a sharp derating in public markets, with the MSCI World Index forward earnings multiple falling from 19.3x to 15.0x — in contrast to private markets, which have protected investors from volatility by failing to mark prices down. This derating has been particularly concentrated in the more expensive, "growthier" companies, with communication

<sup>(i)</sup> Source for all earnings, earnings estimates and earnings multiples data used in this report: FactSet. Data as of December 2022. One basis point = 0.01%. The MSCI World Quality Index measures the performance of quality growth stocks (based on high return on equity, stable year-over-year earnings growth and low financial leverage) in the MSCI World Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Sustain Portfolio**

services, consumer discretionary and information technology all falling over 30%. The combination of resilient earnings and this skewed derating have made 2022 a very unusual year, as quality has not provided the downside risk mitigation that it did in the previous down years of 2008, 2011, 2015 and 2018, with the MSCI World Quality Index down 22% for the year, 400 basis points (bps) behind the wider MSCI World Index.

• At the start of 2023, our two worries from 12 months ago have reduced to one and a bit. The fall in the MSCI World Index multiple to 15x, now only 5% above the 2003-19 average as against the 36% premium at the start of the year, suggests that the market is no longer clearly overvalued; though of course the multiple could fall below average levels if there is a major economic downturn. It is earnings that remain the major concern. Inflation should help top-line growth, in nominal terms at least, but the margins do look stretched, with the MSCI World Index forward EBIT (earnings before interest and taxes) margin at 16.3%, 100 bps above the pre-COVID peak, and a full 300 bps ahead of the 2003-19 average. This is consistent with the world of excess demand we have been in, which has given all sorts of lower quality companies pricing power. Companies' earnings issues in this period have tended to be idiosyncratic, rather than due to systematic demand issues. Many have come from either the direct impacts of COVID-19, for instance in messing up their supply chains, or from the post-pandemic hangover, with former "COVID heroes" — beneficiaries of the virtual world of the pandemic — having to adjust to the return toward an IRL (in real life) world.

• It is striking that bottom-up forward earnings estimates still look relatively healthy, despite what has been described in various forums as the most predicted recession in history, with 2023 MSCI World Index earnings estimated to be 3% higher than 2022 despite the headwind from the strong dollar, and 36% above the pre-COVID 2019 level. Central banks, particularly in the U.S., are raising rates aggressively to deal with inflation by attempting to slow demand. There is discussion

about exactly how far they need to go, weighing up the balance between slowing goods inflation and continuing wage rises, as well as arcane discussion of the lags in the shelter element of the U.S. inflation calculation. We are in no position to take a view on these intricacies as mighty economists face off against each other. However, the basic fact remains that even in the case of a successful soft landing, the consensus economic outlook is for 2023 growth to roughly grind to a halt in most Western economies. The impacts of central bank actions are already being felt in the more interest rate sensitive areas, notably housing, and consumers are facing an ugly squeeze on real incomes thanks to inflation; but labor markets still remain tight, with U.S. unemployment still down at 3.5%,<sup>(ii)</sup> keeping upward pressure on wages — and on central bank action. Forward-looking indicators have turned down, but most of the economic pain, and thus earnings pain, is still to come.

• As the excess demand of 2021 and 2022 shifts toward excess supply in 2023, there is likely to be an earnings recession, as margins fall from current peaks. Once again, the market will discover which companies have resilient earnings in tough times. Our bet, as ever, is that pricing power and recurring revenue, two of the key criteria for inclusion in our portfolios, will once again show their worth, as they did in the 2008-09 Financial Crisis and in the first half of 2020 during the early days of the pandemic. Compounders should continue to compound. The silver lining of the painful derating of 2022 is that any compounding is now coming on top of a lower multiple, with the portfolio trading at a circa 5% free cash flow yield, versus the circa 4% of a year ago. Given that there are only two ways of losing money in equities — the earnings going away, or the multiple going away — owning a portfolio of resilient earnings at a reasonable multiple does seem a sensible approach in such uncertain times.

<sup>(ii)</sup> Source: Bureau of Labor Statistics. Data as of December 2022.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Sustain Portfolio**

![](j23279220_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on August 30, 2013.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI World Net Index** **<sup>(1)</sup>** **and the Lipper Global Large-Cap Core Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(7)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –20.69% | 7.37% |  | 8.95% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –20.91 | 7.00 |  | 8.59 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –25.05 | 5.85 |  | 7.96 |
| Fund — Class L Shares <br>w/o sales charges<sup>(4)</sup> | –21.35 | 6.45 |  | 8.03 |
| Fund — Class C Shares <br>w/o sales charges<sup>(6)</sup> | –21.54 | 6.21 |  | 7.07 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(6)</sup> | –22.32 | 6.21 |  | 7.07 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(5)</sup> | –20.60 | 7.42 |  | 8.71 |
| MSCI World Net Index | –18.14 | 6.14 |  | 8.22 |
| Lipper Global Large-Cap <br>Core Funds Index | –16.48 | 5.67 |  | 7.75 |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI World Net Index currently consists of 23 developed market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Global Large-Cap Core Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Large-Cap Core Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Global Large-Cap Core Funds classification.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Global Sustain Portfolio**

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on August 30, 2013.

<sup>(5)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(6)</sup> Commenced offering on April 30, 2015.

<sup>(7)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Global Sustain Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.4%)** | **Common Stocks (98.4%)** | **Common Stocks (98.4%)** |
| Canada (3.1%) | Canada (3.1%) | Canada (3.1%) |
| Constellation Software, Inc. | 1571 | $2453 |
| France (1.5%) | France (1.5%) | France (1.5%) |
| L'Oreal SA | 3380 | 1210 |
| Germany (6.7%) | Germany (6.7%) | Germany (6.7%) |
| Deutsche Boerse AG | 7419 | 1277 |
| SAP SE | 38818 | 4008 |
|  |  | 5285 |
| Hong Kong (1.6%) | Hong Kong (1.6%) | Hong Kong (1.6%) |
| AIA Group Ltd. | 117400 | 1296 |
| Sweden (1.6%) | Sweden (1.6%) | Sweden (1.6%) |
| Atlas Copco AB, Class A | 105882 | 1255 |
| Taiwan (2.4%) | Taiwan (2.4%) | Taiwan (2.4%) |
| Taiwan Semiconductor Manufacturing<br> Co., Ltd. ADR | 25136 | 1872 |
| United Kingdom (8.7%) | United Kingdom (8.7%) | United Kingdom (8.7%) |
| Experian PLC | 24305 | 823 |
| Prudential PLC | 113174 | 1543 |
| Reckitt Benckiser Group PLC | 43972 | 3048 |
| RELX PLC | 51342 | 1420 |
|  |  | 6834 |
| United States (72.8%) | United States (72.8%) | United States (72.8%) |
| Abbott Laboratories | 24934 | 2737 |
| Accenture PLC, Class A | 14637 | 3906 |
| Adobe, Inc. (a) | 3633 | 1223 |
| Alphabet, Inc., Class A (a) | 22654 | 1999 |
| Amphenol Corp., Class A | 15610 | 1189 |
| Automatic Data Processing, Inc. | 6520 | 1557 |
| Baxter International, Inc. | 46291 | 2359 |
| Becton Dickinson & Co. | 11228 | 2855 |
| Broadridge Financial Solutions, Inc. | 7194 | 965 |
| Coca-Cola Co. | 12391 | 788 |
| Danaher Corp. | 13436 | 3566 |
| Equifax, Inc. | 7672 | 1491 |
| Estee Lauder Cos., Inc., Class A | 3752 | 931 |
| Fidelity National Information Services, Inc. | 1395 | 95 |
| Intercontinental Exchange, Inc. | 27251 | 2796 |
| IQVIA Holdings, Inc. (a) | 9941 | 2037 |
| Medtronic PLC | 18856 | 1465 |
| Microsoft Corp. | 23237 | 5573 |
| Moody's Corp. | 2195 | 612 |
| NIKE, Inc., Class B | 10643 | 1245 |
| Otis Worldwide Corp. | 18440 | 1444 |
| PayPal Holdings, Inc. (a) | 16163 | 1151 |
| Procter & Gamble Co. | 11534 | 1748 |
| Roper Technologies, Inc. | 3913 | 1691 |
| Stanley Black & Decker, Inc. | 11459 | 861 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Steris PLC | 4810 | $888 |
| Texas Instruments, Inc. | 7299 | 1206 |
| Thermo Fisher Scientific, Inc. | 6316 | 3478 |
| Visa, Inc., Class A | 23377 | 4857 |
| Zoetis, Inc. | 4748 | 696 |
|  |  | 57409 |
| **Total Common Stocks (Cost $74,101)** | **Total Common Stocks (Cost $74,101)** | 77614 |
| **Short-Term Investment (1.5%)** | **Short-Term Investment (1.5%)** | **Short-Term Investment (1.5%)** |
| Investment Company (1.5%) | Investment Company (1.5%) | Investment Company (1.5%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $1,203)** | 1202550 | 1203 |
| **Total Investments (99.9%) <br>(Cost $75,304) (b)(c)** | **Total Investments (99.9%) <br>(Cost $75,304) (b)(c)** | 78817 |
| Other Assets in Excess of Liabilities (0.1%) | Other Assets in Excess of Liabilities (0.1%) | 90 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $78907 |

---

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

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $15,880,000 and 20.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(c) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $76,419,000. The aggregate gross unrealized appreciation is approximately $7,554,000 and the aggregate gross unrealized depreciation is approximately $5,160,000, resulting in net unrealized appreciation of approximately $2,394,000.

ADR American Depositary Receipt.

**Portfolio Composition**

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| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 28.5% |
| Software | 19.0 |
| Information Technology Services | 15.9 |
| Health Care Equipment & Supplies | 13.1 |
| Life Sciences Tools & Services | 11.5 |
| Household Products | 6.1 |
| Capital Markets | 5.9 |
| 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.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Sustain Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $74,101) | $77614 |
| Investment in Security of Affiliated Issuer, at Value (Cost $1,203) | 1203 |
| Total Investments in Securities, at Value (Cost $75,304) | 78817 |
| Foreign Currency, at Value (Cost $6) | 6 |
| Receivable for Fund Shares Sold | 105 |
| Dividends Receivable | 61 |
| Tax Reclaim Receivable | 36 |
| Receivable from Affiliate | 4 |
| Other Assets | 44 |
| **Total Assets** | 79073 |
| **Liabilities:** | **Liabilities:** |
| Payable for Professional Fees | 46 |
| Payable for Fund Shares Redeemed | 37 |
| Payable for Advisory Fees | 25 |
| 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 Sub Transfer Agency Fees — Class C | 1 |
| Payable for Investments Purchased | 12 |
| Payable for Administration Fees | 6 |
| Payable for Shareholder Services Fees — Class A | 1 |
| Payable for Distribution and Shareholder Services Fees — Class L | 1 |
| Payable for Distribution and Shareholder Services Fees — Class C | 4 |
| Payable for Custodian Fees | 4 |
| 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 R6\* |  |
| Other Liabilities | 11 |
| **Total Liabilities** | 166 |
| **Net Assets** | $78907 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $79125 |
| Total Accumulated Loss | (218 |
| **Net Assets** | $78907 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Sustain Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $55997 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 3682972 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $15.20 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $5816 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 384169 |
| **Net Asset Value, Redemption Price Per Share** | $15.14 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.84 |
| **Maximum Offering Price Per Share** | $15.98 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $1253 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 84757 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $14.78 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $4279 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 297055 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $14.40 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $11562 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 760655 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $15.20 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Sustain Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $38 of Foreign Taxes Withheld) | $1222 |
| Dividends from Security of Affiliated Issuer (Note G) | 23 |
| Total Investment Income | 1245 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 634 |
| Professional Fees | 175 |
| Sub Transfer Agency Fees — Class I | 74 |
| Sub Transfer Agency Fees — Class A | 8 |
| Sub Transfer Agency Fees — Class L | 1 |
| Sub Transfer Agency Fees — Class C | 3 |
| Shareholder Services Fees — Class A (Note D) | 19 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 10 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 46 |
| Registration Fees | 75 |
| Administration Fees (Note C) | 72 |
| Shareholder Reporting Fees | 24 |
| Transfer Agency Fees — Class I (Note E) | 5 |
| Transfer Agency Fees — Class A (Note E) | 4 |
| Transfer Agency Fees — Class L (Note E) | 1 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Custodian Fees (Note F) | 9 |
| Directors' Fees and Expenses | 6 |
| Pricing Fees | 3 |
| Other Expenses | 16 |
| Total Expenses | 1189 |
| Waiver of Advisory Fees (Note B) | (242 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (48 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (— |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (— |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (3 |
| Net Expenses | 894 |
| **Net Investment Income** | 351 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (3528 |
| Foreign Currency Translation | (9 |
| Net Realized Loss | (3537 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (19753 |
| Foreign Currency Translation | (4 |
| Net Change in Unrealized Appreciation (Depreciation) | (19757 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (23294 |
| Net Decrease in Net Assets Resulting from Operations | $(22943 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Sustain Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $351 | $345 |
| Net Realized Gain (Loss) | (3537) | 1731 |
| Net Change in Unrealized Appreciation (Depreciation) | (19757) | 11944 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (22943) | 14020 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (397) | (1373 |
| **Class A** | (21) | (165 |
| **Class L** | (4) | (24 |
| **Class C** | (16) | (76 |
| **Class R6\*** | (88) | (260 |
| Total Dividends and Distributions to Shareholders | (526) | (1898 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 23385 | 42992 |
| Distributions Reinvested | 389 | 1257 |
| Redeemed | (31187) | (6199 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 1281 | 6053 |
| Distributions Reinvested | 21 | 165 |
| Redeemed | (4153) | (1476 |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged |  | 91 |
| Distributions Reinvested | 4 | 24 |
| Redeemed | (75) | (108 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 893 | 2279 |
| Distributions Reinvested | 16 | 76 |
| Redeemed | (992) | (1062 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 4 | 3000 |
| Distributions Reinvested | 88 | 260 |
| Redeemed | (5) | (— |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (10331) | 47352 |
| Total Increase (Decrease) in Net Assets | (33800) | 59474 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 112707 | 53233 |
| End of Period | $78907 | $112707 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Global Sustain Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 1420 | 2374 |
| Shares Issued on Distributions Reinvested | 26 | 67 |
| Shares Redeemed | (1914 | (344 |
| Net Increase (Decrease) in Class I Shares Outstanding | (468 | 2097 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 77 | 342 |
| Shares Issued on Distributions Reinvested | 1 | 9 |
| Shares Redeemed | (257 | (81 |
| Net Increase (Decrease) in Class A Shares Outstanding | (179 | 270 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged |  | 6 |
| Shares Issued on Distributions Reinvested |  | 1 |
| Shares Redeemed | (5 | (6 |
| Net Increase (Decrease) in Class L Shares Outstanding | (5 | 1 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 60 | 133 |
| Shares Issued on Distributions Reinvested | 1 | 4 |
| Shares Redeemed | (65 | (61 |
| Net Increase (Decrease) in Class C Shares Outstanding | (4 | 76 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed |  | 179 |
| Shares Issued on Distributions Reinvested | 6 | 14 |
| Shares Redeemed | (— | (— |
| Net Increase in Class R6 Shares Outstanding | 6 | 193 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Sustain Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.30 | $16.57 | $14.66 | $11.58 | $12.47 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.08 | 0.09 | 0.08 | 0.09 | 0.12 |
| Net Realized and Unrealized Gain (Loss) | (4.08) | 2.98 | 2.25 | 3.38 | (0.04) |
| Total from Investment Operations | (4.00) | 3.07 | 2.33 | 3.47 | 0.08 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.05) | (0.07) | (0.06) | (0.08) | (0.07) |
| Net Realized Gain | (0.05) | (0.27) | (0.36) | (0.31) | (0.90) |
| Total Distributions | (0.10) | (0.34) | (0.42) | (0.39) | (0.97) |
| **Net Asset Value, End of Period** | $15.20 | $19.30 | $16.57 | $14.66 | $11.58 |
| **Total Return<sup>(2)</sup>** | (20.69)% | 18.62% | 15.96% | 30.03% | 0.60% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $55997 | $80097 | $34042 | $14756 | $5891 |
| Ratio of Expenses Before Expense Limitation | 1.24% | 1.17% | 1.45% | 1.92% | 2.86% |
| Ratio of Expenses After Expense Limitation | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | 0.93%<sup>(3)(4)</sup> |
| Ratio of Net Investment Income | 0.47%<sup>(3)</sup> | 0.51%<sup>(3)</sup> | 0.52%<sup>(3)</sup> | 0.68%<sup>(3)</sup> | 0.97%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 26% | 11% | 20% | 14% | 76% |

---

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

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

(3) 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."

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.90% for Class I shares. Prior to April 30, 2018, the maximum ratio was 1.00% for Class I shares.

(5) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Sustain Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.21 | $16.51 | $14.62 | $11.56 | $12.44 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.02 | 0.03 | 0.03 | 0.05 | 0.07 |
| Net Realized and Unrealized Gain (Loss) | (4.04) | 2.96 | 2.23 | 3.36 | (0.03) |
| Total from Investment Operations | (4.02) | 2.99 | 2.26 | 3.41 | 0.04 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.02) | (0.01) | (0.04) | (0.02) |
| Net Realized Gain | (0.05) | (0.27) | (0.36) | (0.31) | (0.90) |
| Total Distributions | (0.05) | (0.29) | (0.37) | (0.35) | (0.92) |
| **Net Asset Value, End of Period** | $15.14 | $19.21 | $16.51 | $14.62 | $11.56 |
| **Total Return<sup>(2)</sup>** | (20.91)% | 18.20% | 15.53% | 29.53% | 0.26% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $5816 | $10812 | $4839 | $2949 | $1872 |
| Ratio of Expenses Before Expense Limitation | 1.51% | 1.46% | 1.76% | 2.25% | 3.21% |
| Ratio of Expenses After Expense Limitation | 1.25%<sup>(3)</sup> | 1.22%<sup>(3)</sup> | 1.24%<sup>(3)</sup> | 1.25%<sup>(3)</sup> | 1.28%<sup>(3)(4)</sup> |
| Ratio of Net Investment Income | 0.13%<sup>(3)</sup> | 0.18%<sup>(3)</sup> | 0.17%<sup>(3)</sup> | 0.35%<sup>(3)</sup> | 0.57%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 26% | 11% | 20% | 14% | 76% |

---

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

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

(3) 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."

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class A shares. Prior to April 30, 2018, the maximum ratio was 1.35% for Class A shares.

(5) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Sustain Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.86 | $16.28 | $14.48 | $11.47 | $12.41 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | (0.06) | (0.05) | (0.05) | (0.01) | 0.01 |
| Net Realized and Unrealized Gain (Loss) | (3.97) | 2.90 | 2.21 | 3.33 | (0.04) |
| Total from Investment Operations | (4.03) | 2.85 | 2.16 | 3.32 | (0.03) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.01) |
| Net Realized Gain | (0.05) | (0.27) | (0.36) | (0.31) | (0.90) |
| Total Distributions | (0.05) | (0.27) | (0.36) | (0.31) | (0.91) |
| **Net Asset Value, End of Period** | $14.78 | $18.86 | $16.28 | $14.48 | $11.47 |
| **Total Return<sup>(2)</sup>** | (21.35)% | 17.58% | 14.97% | 28.87% | (0.25)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1253 | $1684 | $1441 | $1437 | $1365 |
| Ratio of Expenses Before Expense Limitation | 2.05% | 2.08% | 2.32% | 2.77% | 3.73% |
| Ratio of Expenses After Expense Limitation | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | 1.78%<sup>(3)(4)</sup> |
| Ratio of Net Investment Income (Loss) | (0.37)%<sup>(3)</sup> | (0.27)%<sup>(3)</sup> | (0.33)%<sup>(3)</sup> | (0.09)%<sup>(3)</sup> | 0.04%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 26% | 11% | 20% | 14% | 76% |

---

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

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

(3) 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."

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class L shares. Prior to April 30, 2018, the maximum ratio was 1.85% for Class L shares.

(5) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Sustain Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $18.41 | $15.94 | $14.22 | $11.30 | $12.26 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(1)</sup> | (0.09) | (0.09) | (0.08) | (0.05) | (0.03) |
| Net Realized and Unrealized Gain (Loss) | (3.87) | 2.83 | 2.16 | 3.28 | (0.02) |
| Total from Investment Operations | (3.96) | 2.74 | 2.08 | 3.23 | (0.05) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  |  | (0.01) |
| Net Realized Gain | (0.05) | (0.27) | (0.36) | (0.31) | (0.90) |
| Total Distributions | (0.05) | (0.27) | (0.36) | (0.31) | (0.91) |
| **Net Asset Value, End of Period** | $14.40 | $18.41 | $15.94 | $14.22 | $11.30 |
| **Total Return<sup>(2)</sup>** | (21.54)% | 17.33% | 14.68% | 28.63% | (0.50)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4279 | $5551 | $3594 | $2872 | $1846 |
| Ratio of Expenses Before Expense Limitation | 2.25% | 2.22% | 2.51% | 2.97% | 4.00% |
| Ratio of Expenses After Expense Limitation | 1.98%<sup>(3)</sup> | 1.97%<sup>(3)</sup> | 1.99%<sup>(3)</sup> | 1.98%<sup>(3)</sup> | 2.02%<sup>(3)(4)</sup> |
| Ratio of Net Investment Loss | (0.61)%<sup>(3)</sup> | (0.52)%<sup>(3)</sup> | (0.56)%<sup>(3)</sup> | (0.38)%<sup>(3)</sup> | (0.24)%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 26% | 11% | 20% | 14% | 76% |

---

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

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

(3) 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."

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.00% for Class C shares. Prior to April 30, 2018, the maximum ratio was 2.10% for Class C shares.

(5) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Global Sustain Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $19.29 | $16.57 | $14.66 | $11.58 | $12.47 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.09 | 0.11 | 0.09 | 0.11 | 0.05 |
| Net Realized and Unrealized Gain (Loss) | (4.07) | 2.96 | 2.25 | 3.37 | 0.04 |
| Total from Investment Operations | (3.98) | 3.07 | 2.34 | 3.48 | 0.09 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.06) | (0.08) | (0.07) | (0.09) | (0.08) |
| Net Realized Gain | (0.05) | (0.27) | (0.36) | (0.31) | (0.90) |
| Total Distributions | (0.11) | (0.35) | (0.43) | (0.40) | (0.98) |
| **Net Asset Value, End of Period** | $15.20 | $19.29 | $16.57 | $14.66 | $11.58 |
| **Total Return<sup>(3)</sup>** | (20.60)% | 18.60% | 16.00% | 30.08% | 0.66% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $11562 | $14563 | $9317 | $7450 | $4847 |
| Ratio of Expenses Before Expense Limitation | 1.14% | 1.12% | 1.41% | 1.88% | 3.12% |
| Ratio of Expenses After Expense Limitation | 0.85%<sup>(4)</sup> | 0.85%<sup>(4)</sup> | 0.85%<sup>(4)</sup> | 0.85%<sup>(4)</sup> | 0.85%<sup>(4)(5)</sup> |
| Ratio of Net Investment Income | 0.53%<sup>(4)</sup> | 0.60%<sup>(4)</sup> | 0.58%<sup>(4)</sup> | 0.79%<sup>(4)</sup> | 0.41%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 26% | 11% | 20% | 14% | 76% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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 April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.85% for Class R6 shares. Prior to April 30, 2018, the maximum ratio was 0.95% for Class R6 shares.

(6) Amount is less than 0.005%.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Global Sustain Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Beverages | $788 | $— | $— | $788 |
| Capital Markets | 3408 | 1277 |  | 4685 |
| Electronic Equipment, <br>Instruments & <br>Components | 1189 |  |  | 1189 |
| Health Care <br>Equipment & <br>Supplies | 10304 |  |  | 10304 |
| Household Products | 1748 | 3048 |  | 4796 |
| Information <br>Technology <br>Services | 12531 |  |  | 12531 |
| Insurance |  | 2839 |  | 2839 |
| Interactive Media & <br>Services | 1999 |  |  | 1999 |
| Life Sciences <br>Tools & Services | 9081 |  |  | 9081 |
| Machinery | 2305 | 1255 |  | 3560 |
| Personal Products | 931 | 1210 |  | 2141 |
| Pharmaceuticals | 696 |  |  | 696 |
| Professional Services | 1491 | 2243 |  | 3734 |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Semiconductors & <br>Semiconductor <br>Equipment | $3078 | $— | $— | $3078 |
| Software | 10940 | 4008 |  | 14948 |
| Textiles, Apparel & <br>Luxury Goods | 1245 |  |  | 1245 |
| **Total Common Stocks** | **61734** | **15880** | **—** | **77614** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 1203 |  |  | 1203 |
| **Total Assets** | $**62937** | $**15880** | $**—** | $**78817** |

---

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 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 U.S. 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. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $500<br>million** | **Over $500<br>million** |
| 0.70% | 0.65% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.43% 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 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares and 0.85% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $242,000 of advisory fees were waived and approximately $50,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

providing distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $23,244,000 and $32,727,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value <br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds <br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $4494 | $26328 | $29619 | $23 |

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| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized <br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $1203 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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 December 31, 2022 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 2022 and 2021 was as follows:

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| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $250 | $276 | $351 | $1547 |

---

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 equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $(81) | $81 |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $93 | $— |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital

losses of approximately $361,000 and $2,343,000 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 68.7%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of <br>Morgan Stanley Institutional Fund, Inc. — <br>Global Sustain Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Global Sustain Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279220_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 100% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $276,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $250,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Limited<br>25 Cabot Square, Canary Wharf<br>London, E14 4QA, England

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

------

Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279220_za006.jpg)

IFIGQANN<br>5452859 EXP 02.29.24

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![](j23279221_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Growth Portfolio

Annual Report

December 31, 2022

![](j23279221_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 7 |
| Consolidated Statement of Assets and Liabilities | 9 |
| Consolidated Statement of Operations | 11 |
| Consolidated Statements of Changes in Net Assets | 12 |
| Consolidated Financial Highlights | 14 |
| Notes to Consolidated Financial Statements | 20 |
| Report of Independent Registered Public Accounting Firm | 33 |
| Liquidity Risk Management Program | 34 |
| Federal Tax Notice | 35 |
| U.S. Customer Privacy Notice | 36 |
| Director and Officer Information | 39 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279221_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Growth Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Growth Portfolio Class I | $1000.00 | $920.50 | $1022.03 | $3.05 | $3.21 | 0.63% |
| Growth Portfolio Class A | 1000.00 | 919.30 | 1020.87 | 4.16 | 4.38 | 0.86 |
| Growth Portfolio Class L | 1000.00 | 917.00 | 1018.30 | 6.62 | 6.97 | 1.37 |
| Growth Portfolio Class C | 1000.00 | 915.80 | 1017.09 | 7.77 | 8.19 | 1.61 |
| Growth Portfolio Class R6<sup>(1)</sup> | 1000.00 | 921.10 | 1022.58 | 2.52 | 2.65 | 0.52 |
| Growth Portfolio Class IR | 1000.00 | 918.10 | 1022.53 | 2.56 | 2.70 | 0.53 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Growth Portfolio**

The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of large capitalization companies.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –60.34%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the Russell 1000® Growth Index (the "Index"), which returned –29.14%.

**Factors Affecting Performance**

• Stubbornly high inflation, rapidly rising interest rates and moderating economic growth were significant headwinds to U.S. equity performance in 2022. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher. The U.S. Federal Reserve and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in stock and bond markets. While tightening financial conditions helped slow some segments of the economy and inflation appeared to be receding from peak levels, the jobs market remained resilient and inflation rates were still historically high at year-end, setting up expectations for additional interest rate hikes in 2023.

• Large-cap growth equities, as measured by the Index, declined over the year. Outside of the energy sector's significant outperformance and a small positive return from utilities, all other Index sectors had negative performance in the year. Communication services, consumer discretionary and information technology were the bottom performing sectors.

• Counterpoint Global seeks high quality companies, which we define primarily as those with sustainable competitive advantages. We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period due to unfavorable stock selection and, to a lesser extent, sector allocations.

• Fear and uncertainty due to concerns about inflation, rising interest rates, geopolitical tensions and ongoing effects of the global pandemic continued to weigh on market sentiment, contributing to greater volatility and a continued aversion towards high growth equities. We believe this rotation away from high growth equities remains driven primarily by non-fundamental factors. Fundamentals across portfolio holdings have largely remained healthy and in line with our expectations. Despite market volatility, we continue to find many high-quality companies with attractive end-game potential due to compelling fundamentals, strong balance sheets and multiple competitive advantages. We believe today's market offers an attractive opportunity to buy unique companies with strong fundamentals that can be long-term winners over the next three to five years. While we have opportunistically added to some positions and initiated new ones, overall we have made few changes as we remain confident in the long-term prospects for the businesses we own.

• Information technology was by far the greatest detractor in the portfolio this period, due to mixed stock selection. An IT services company that offers a global cloud platform that provides security, performance, and reliability services to the applications of its customers was the biggest detractor in the sector and across the portfolio. The company reported overall healthy results that beat analysts' expectations, but some deceleration in its overall business growth, due to an elongated sales cycle, weighed on investor sentiment.

• The portfolio's stock selection and sector allocations in most other sectors diminished relative performance as well; stock selection in consumer discretionary, communication services and health care, and an overweight to communication services were also among the greatest detractors. Nearly all sectors detracted over the period; although an overweight in health care and average underweight

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Growth Portfolio**

in consumer discretionary contributed positively, the impact to relative performance was negligible given the Fund's relative underperformance. Utilities — a sector the portfolio has no exposure to — had a negligible impact on relative performance.

**Management Strategies**

• As a team, we believe having a market outlook can be an anchor. Our focus is on assessing company prospects over a five-year horizon, and owning a portfolio of unique companies whose market value we believe can increase significantly for underlying fundamental reasons.

![](j23279221_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Growth Portfolio**

**Performance Compared to the Russell 1000<sup>®</sup> Growth Index<sup>(1)</sup> and the Lipper Multi-Cap Growth Funds Index<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(10)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –60.34% | 2.63% | 11.01% | 9.66% |
| Fund — Class A Shares <br>w/o sales charges<sup>(5)</sup> | –60.44 | 2.37 | 10.72 | 8.56 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(5)</sup> | –62.52 | 1.27 | 10.13 | 8.34 |
| Fund — Class L Shares <br>w/o sales charges<sup>(6)</sup> | –60.63 | 1.88 | 10.16 | 9.06 |
| Fund — Class C Shares <br>w/o sales charges<sup>(8)</sup> | –60.73 | 1.62 |  | 5.77 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(8)</sup> | –61.06 | 1.62 |  | 5.77 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(7)</sup> | –60.28 | 2.72 |  | 9.07 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(9)</sup> | –60.41 |  |  | –1.92 |
| Russell 1000<sup>®</sup> Growth Index | –29.14 | 10.96 | 14.10 | 9.58 |
| Lipper Multi-Cap Growth <br>Funds Index | –34.29 | 7.15 | 11.35 | 8.94 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Russell 1000<sup>®</sup> Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000<sup>®</sup> Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000<sup>®</sup> Index is an index of approximately 1,000 of the largest U.S. companies based on a combination of market capitalization and current index membership. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on April 2, 1991.

<sup>(5)</sup> Commenced offering on January 2, 1996.

<sup>(6)</sup> Commenced offering on April 27, 2012.

<sup>(7)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(8)</sup> Commenced offering on April 30, 2015.

<sup>(9)</sup> Commenced offering on June 15, 2018.

<sup>(10)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Growth Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (95.8%)** | **Common Stocks (95.8%)** | **Common Stocks (95.8%)** |
| Automobiles (0.3%) | Automobiles (0.3%) | Automobiles (0.3%) |
| Rivian Automotive, Inc., Class A (a) | 862275 | $15892 |
| Biotechnology (1.4%) | Biotechnology (1.4%) | Biotechnology (1.4%) |
| Alnylam Pharmaceuticals, Inc. (a) | 54784 | 13020 |
| Intellia Therapeutics, Inc. (a) | 532971 | 18595 |
| Moderna, Inc. (a) | 45625 | 8195 |
| ProKidney Corp. (See Note G) (a) | 3837291 | 26324 |
|  |  | 66134 |
| Capital Markets (0.4%) | Capital Markets (0.4%) | Capital Markets (0.4%) |
| Coinbase Global, Inc., Class A (a)(b) | 505232 | 17880 |
| Chemicals (0.4%) | Chemicals (0.4%) | Chemicals (0.4%) |
| Ginkgo Bioworks Holdings, Inc. (a)(b) | 11540010 | 19503 |
| Commercial Services & Supplies (0.2%) | Commercial Services & Supplies (0.2%) | Commercial Services & Supplies (0.2%) |
| Aurora Innovation, Inc. (a) | 6082706 | 7360 |
| Consumer Finance (0.1%) | Consumer Finance (0.1%) | Consumer Finance (0.1%) |
| Upstart Holdings, Inc. (a)(b) | 523741 | 6924 |
| Electronic Equipment, Instruments & Components (0.0%) (c) | Electronic Equipment, Instruments & Components (0.0%) (c) | Electronic Equipment, Instruments & Components (0.0%) (c) |
| Magic Leap Class A (a)(d)(e) (acquisition <br>cost — $18,812; acquired 12/22/15) | 38705 |  |
| Entertainment (5.0%) | Entertainment (5.0%) | Entertainment (5.0%) |
| ROBLOX Corp., Class A (a) | 7136498 | 203105 |
| Sea Ltd. ADR (Singapore) (a) | 595465 | 30982 |
|  |  | 234087 |
| Health Care Equipment & Supplies (0.2%) | Health Care Equipment & Supplies (0.2%) | Health Care Equipment & Supplies (0.2%) |
| Dexcom, Inc. (a) | 66137 | 7489 |
| Health Care Providers & Services (3.2%) | Health Care Providers & Services (3.2%) | Health Care Providers & Services (3.2%) |
| Agilon health, Inc. (a) | 7137635 | 115201 |
| Guardant Health, Inc. (a) | 1213487 | 33007 |
|  |  | 148208 |
| Health Care Technology (1.9%) | Health Care Technology (1.9%) | Health Care Technology (1.9%) |
| Doximity, Inc., Class A (a) | 2633107 | 88367 |
| Information Technology Services (26.1%) | Information Technology Services (26.1%) | Information Technology Services (26.1%) |
| Adyen NV (Netherlands) (a) | 138634 | 192458 |
| Affirm Holdings, Inc. (a) | 3014154 | 29147 |
| Block, Inc., Class A (a) | 1314372 | 82595 |
| Cloudflare, Inc., Class A (a) | 6007201 | 271586 |
| Shopify, Inc., Class A (Canada) (a) | 7670472 | 266242 |
| Snowflake, Inc., Class A (a) | 2595530 | 372562 |
|  |  | 1214590 |
| Interactive Media & Services (2.8%) | Interactive Media & Services (2.8%) | Interactive Media & Services (2.8%) |
| ZoomInfo Technologies, Inc., Class A (a) | 4293345 | 129273 |
| Internet & Direct Marketing Retail (14.0%) | Internet & Direct Marketing Retail (14.0%) | Internet & Direct Marketing Retail (14.0%) |
| Chewy, Inc., Class A (a) | 3590448 | 133134 |
| Coupang, Inc. (Korea, Republic of) (a) | 7820211 | 115035 |
| DoorDash, Inc., Class A (a) | 4151835 | 202693 |
| Global-e Online Ltd. (Israel) (a) | 1095665 | 22615 |
| MercadoLibre, Inc. (a) | 153991 | 130313 |
| Wayfair, Inc., Class A (a) | 1390363 | 45729 |
|  |  | 649519 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Leisure Products (0.5%) | Leisure Products (0.5%) | Leisure Products (0.5%) |
| Peloton Interactive, Inc., Class A (a) | 3219593 | $25564 |
| Life Sciences Tools & Services (4.3%) | Life Sciences Tools & Services (4.3%) | Life Sciences Tools & Services (4.3%) |
| 10X Genomics, Inc., Class A (a) | 2254538 | 82155 |
| Illumina, Inc. (a) | 578074 | 116887 |
|  |  | 199042 |
| Media (5.9%) | Media (5.9%) | Media (5.9%) |
| Trade Desk, Inc., Class A (a) | 6155762 | 275963 |
| Pharmaceuticals (7.0%) | Pharmaceuticals (7.0%) | Pharmaceuticals (7.0%) |
| Royalty Pharma PLC, Class A | 8219641 | 324840 |
| Road & Rail (8.2%) | Road & Rail (8.2%) | Road & Rail (8.2%) |
| Grab Holdings Ltd., Class A (Singapore) (a) | 26880810 | 86556 |
| Uber Technologies, Inc. (a) | 12012142 | 297060 |
|  |  | 383616 |
| Semiconductors & Semiconductor Equipment (2.0%) | Semiconductors & Semiconductor Equipment (2.0%) | Semiconductors & Semiconductor Equipment (2.0%) |
| ASML Holding NV (Netherlands) | 166503 | 90977 |
| Software (11.6%) | Software (11.6%) | Software (11.6%) |
| Bill.Com Holdings, Inc. (a) | 2262074 | 246476 |
| Datadog, Inc., Class A (a) | 2939596 | 216060 |
| Gitlab, Inc., Class A (a) | 1723130 | 78299 |
|  |  | 540835 |
| Specialty Retail (0.3%) | Specialty Retail (0.3%) | Specialty Retail (0.3%) |
| Carvana Co. (a)(b) | 3387532 | 16057 |
| **Total Common Stocks (Cost $7,039,304)** | **Total Common Stocks (Cost $7,039,304)** | 4462120 |
| **Preferred Stock (2.2%)** | **Preferred Stock (2.2%)** | **Preferred Stock (2.2%)** |
| Software (2.2%) | Software (2.2%) | Software (2.2%) |
| Databricks, Inc. (a)(d)(e) <br>(acquisition cost — $2,666; <br>acquired 8/31/21) | 1860888 | 102367 |
| **Investment Company (0.7%)** | **Investment Company (0.7%)** | **Investment Company (0.7%)** |
| Grayscale Bitcoin Trust (a) **(Cost $168,184)** | 3902748 | 32354 |
| **Short-Term Investments (2.6%)** | **Short-Term Investments (2.6%)** | **Short-Term Investments (2.6%)** |
| Securities held as Collateral on Loaned Securities (0.9%) | Securities held as Collateral on Loaned Securities (0.9%) | Securities held as Collateral on Loaned Securities (0.9%) |
| Investment Company (0.7%) | Investment Company (0.7%) | Investment Company (0.7%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 34249779 | 34250 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.2%) | Repurchase Agreements (0.2%) | Repurchase Agreements (0.2%) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $3,178; fully collateralized by <br>a U.S. Government obligation; 4.38% <br>due 5/15/41; valued at $3,241) | $3177 | 3177 |

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The accompanying notes are an integral part of the consolidated financial statements.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Growth Portfolio**

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| | | | |
|:---|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| Merrill Lynch & Co., Inc., (4.25%, dated <br>12/30/22, due 1/3/23; proceeds <br>$3,179; fully collateralized by a U.S. <br>Government obligation; 1.50% due <br>2/15/25; valued at $3,241) | $| 3178 | $3178 |
|  |  |  | 6355 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $40,605)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $40,605)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $40,605)** | 40605 |
|  | **Shares** | **Shares** |  |
| Investment Company (1.7%) | Investment Company (1.7%) | Investment Company (1.7%) | Investment Company (1.7%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $79,709)** |  | 79709316 | 79709 |
| **Total Short-Term Investments (Cost $120,314)** | **Total Short-Term Investments (Cost $120,314)** | **Total Short-Term Investments (Cost $120,314)** | 120314 |
| **Total Investments Excluding Purchased <br>Options (101.3%) (Cost $7,330,468)** | **Total Investments Excluding Purchased <br>Options (101.3%) (Cost $7,330,468)** | **Total Investments Excluding Purchased <br>Options (101.3%) (Cost $7,330,468)** | 4717155 |
| **Total Purchased Options Outstanding (0.2%) <br>(Cost $13,847)** | **Total Purchased Options Outstanding (0.2%) <br>(Cost $13,847)** | **Total Purchased Options Outstanding (0.2%) <br>(Cost $13,847)** | 8821 |
| **Total Investments (101.5%) (Cost $7,344,315) <br>Including $41,973 of Securities Loaned (f)(g)(h)** | **Total Investments (101.5%) (Cost $7,344,315) <br>Including $41,973 of Securities Loaned (f)(g)(h)** | **Total Investments (101.5%) (Cost $7,344,315) <br>Including $41,973 of Securities Loaned (f)(g)(h)** | 4725976 |
| Liabilities in Excess of Other Assets (–1.5%) | Liabilities in Excess of Other Assets (–1.5%) | Liabilities in Excess of Other Assets (–1.5%) | (71618) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | **Net Assets (100.0%)** | $4654358 |

---

(a) Non-income producing security.

(b) All or a portion of this security was on loan at December 31, 2022.

(c) Amount is less than 0.05%.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at December 31, 2022 amounts to $102,367,000 and represents 2.2% of net assets.

(e) At December 31, 2022, the Fund held fair valued securities valued at approximately $102,367,000, representing 2.2% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) Securities are available for collateral in connection with purchased options.

(g) The approximate fair value and percentage of net assets, $192,458,000 and 4.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Consolidated Portfolio of Investments.

(h) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $7,625,810,000. The aggregate gross unrealized appreciation is approximately $26,930,000 and the aggregate gross unrealized depreciation is approximately $2,939,776,000, resulting in net unrealized depreciation of approximately $2,912,846,000.

ADR American Depositary Receipt.

**Call Options Purchased:**

The Fund had the following call options purchased open at December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Depreciation<br>(000)** |
| Goldman Sachs International | USD/CNH CNH | 7.87 | Oct-23 | 12162957 | 12163 | $29 | $59 | $(30) |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.53 | Jul-23 | 1396474244 | 1396474 | 4025 | 6934 | (2909) |
| Standard Chartered Bank | USD/CNH CNH | 7.57 | Aug-23 | 1535427907 | 1535428 | 4767 | 6854 | (2087) |
|  |  |  |  |  |  | $8821 | $13847 | $(5026) |

---

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Information Technology Services | 26.0% |
| Other\*\* | 20.3 |
| Internet & Direct Marketing Retail | 13.9 |
| Software | 13.8 |
| Road & Rail | 8.2 |
| Pharmaceuticals | 6.9 |
| Media | 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 December 31, 2022.

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

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Growth Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $7,191,983) | $4585693 |
| Investment in Security of Affiliated Issuer, at Value (Cost $152,332) | 140283 |
| Total Investments in Securities, at Value (Cost $7,344,315) | 4725976 |
| Foreign Currency, at Value (Cost —@) |  |
| Cash | 494 |
| Receivable for Fund Shares Sold | 6140 |
| Receivable from Securities Lending Income | 489 |
| Receivable from Affiliate | 221 |
| Dividends Receivable | 85 |
| Other Assets | 471 |
| **Total Assets** | 4733876 |
| **Liabilities:** | **Liabilities:** |
| Collateral on Securities Loaned, at Value | 40605 |
| Payable for Fund Shares Redeemed | 18861 |
| Due to Broker | 10350 |
| Payable for Advisory Fees | 5544 |
| Payable for Sub Transfer Agency Fees — Class I | 1213 |
| Payable for Sub Transfer Agency Fees — Class A | 1173 |
| Payable for Sub Transfer Agency Fees — Class L | 31 |
| Payable for Sub Transfer Agency Fees — Class C | 95 |
| Payable for Shareholder Services Fees — Class A | 364 |
| Payable for Distribution and Shareholder Services Fees — Class L | 32 |
| Payable for Distribution and Shareholder Services Fees — Class C | 136 |
| Payable for Administration Fees | 339 |
| Payable for Transfer Agency Fees — Class I | 21 |
| Payable for Transfer Agency Fees — Class A | 36 |
| Payable for Transfer Agency Fees — Class L | 3 |
| Payable for Transfer Agency Fees — Class C | 2 |
| Payable for Transfer Agency Fees — Class R6<sup>(1)</sup> | 3 |
| Payable for Transfer Agency Fees — Class IR | 1 |
| Payable for Custodian Fees | 56 |
| Payable for Professional Fees | 39 |
| Payable for Directors' Fees and Expenses | 39 |
| Other Liabilities | 575 |
| **Total Liabilities** | 79518 |
| **Net Assets** | $4654358 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $9123787 |
| Total Accumulated Loss | (4469429 |
| **Net Assets** | $4654358 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Growth Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $1469843 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 57470466 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $25.58 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $1577172 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 68673034 |
| **Net Asset Value, Redemption Price Per Share** | $22.97 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $1.27 |
| **Maximum Offering Price Per Share** | $24.24 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $46313 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 2299482 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $20.14 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $147014 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 7548735 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.48 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $1413983 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 54329842 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $26.03 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $33 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1274 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $25.94 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $41973 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Growth Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $383 of Foreign Taxes Withheld) | $9299 |
| Income from Securities Loaned — Net | 3659 |
| Dividends from Security of Affiliated Issuer (Note G) | 1203 |
| Total Investment Income | 14161 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 31035 |
| Shareholder Services Fees — Class A (Note D) | 6571 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 586 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 2562 |
| Sub Transfer Agency Fees — Class I | 3912 |
| Sub Transfer Agency Fees — Class A | 3387 |
| Sub Transfer Agency Fees — Class L | 67 |
| Sub Transfer Agency Fees — Class C | 284 |
| Administration Fees (Note C) | 6408 |
| Registration Fees | 928 |
| Shareholder Reporting Fees | 760 |
| Transfer Agency Fees — Class I (Note E) | 118 |
| Transfer Agency Fees — Class A (Note E) | 219 |
| Transfer Agency Fees — Class L (Note E) | 16 |
| Transfer Agency Fees — Class C (Note E) | 9 |
| Transfer Agency Fees — Class R6\* (Note E) | 15 |
| Transfer Agency Fees — Class IR (Note E) | 3 |
| Custodian Fees (Note F) | 245 |
| Professional Fees | 168 |
| Directors' Fees and Expenses | 132 |
| Pricing Fees | 4 |
| Other Expenses | 281 |
| Total Expenses | 57710 |
| Rebate from Morgan Stanley Affiliate (Note G) | (165 |
| Net Expenses | 57545 |
| **Net Investment Loss** | (43384 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (1887780 |
| Foreign Currency Translation | (78 |
| Net Realized Loss | (1887858 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (7187849 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (7187849 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (9075707 |
| Net Decrease in Net Assets Resulting from Operations | $(9119091 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Growth Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(43384) | $(112218) |
| Net Realized Gain (Loss) | (1887858) | 3557611 |
| Net Change in Unrealized Appreciation (Depreciation) | (7187849) | (3430342) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (9119091) | 15051 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (221010) | (1288168) |
| **Class A** | (263315) | (1170586) |
| **Class L** | (8671) | (35712) |
| **Class C** | (28203) | (128990) |
| **Class R6\*** | (203477) | (702313) |
| **Class IR** | (76) | (61993) |
| Total Dividends and Distributions to Shareholders | (724752) | (3387762) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 1568268 | 2891895 |
| Distributions Reinvested | 193193 | 1085803 |
| Redeemed | (2942854) | (3287298) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 324563 | 1691828 |
| Distributions Reinvested | 255925 | 1133414 |
| Redeemed | (1054118) | (1799343) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 135 | 315 |
| Distributions Reinvested | 8534 | 35154 |
| Redeemed | (17453) | (22201) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 41416 | 158102 |
| Distributions Reinvested | 25964 | 115585 |
| Redeemed | (120670) | (127437) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 579926 | 510697 |
| Distributions Reinvested | 195249 | 681196 |
| Redeemed | (521267) | (664133) |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Subscribed | 43688 | 65967 |
| Distributions Reinvested | 76 | 61945 |
| Redeemed | (206937) | (137888) |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (1626362) | 2393601 |
| Total Decrease in Net Assets | (11470205) | (979110) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 16124563 | 17103673 |
| End of Period | $4654358 | $16124563 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Growth Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 38417 | 30517 |
| Shares Issued on Distributions Reinvested | 6856 | 14262 |
| Shares Redeemed | (71730) | (35372) |
| Net Increase (Decrease) in Class I Shares Outstanding | (26457) | 9407 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 8761 | 18774 |
| Shares Issued on Distributions Reinvested | 10112 | 16292 |
| Shares Redeemed | (28399) | (20936) |
| Net Increase (Decrease) in Class A Shares Outstanding | (9526) | 14130 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 6 | 5 |
| Shares Issued on Distributions Reinvested | 384 | 562 |
| Shares Redeemed | (575) | (280) |
| Net Increase (Decrease) in Class L Shares Outstanding | (185) | 287 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 1224 | 1988 |
| Shares Issued on Distributions Reinvested | 1209 | 1895 |
| Shares Redeemed | (3705) | (1698) |
| Net Increase (Decrease) in Class C Shares Outstanding | (1272) | 2185 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 12457 | 5170 |
| Shares Issued on Distributions Reinvested | 6810 | 8826 |
| Shares Redeemed | (12544) | (6897) |
| Net Increase in Class R6 Shares Outstanding | 6723 | 7099 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Subscribed | 853 | 674 |
| Shares Issued on Distributions Reinvested | 3 | 803 |
| Shares Redeemed | (5098) | (1454) |
| Net Increase (Decrease) in Class IR Shares Outstanding | (4242) | 23 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Growth Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $74.29 | $91.47 | $46.33 | $41.75 | $41.65 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.20) | (0.50) | (0.38) | (0.19) | (0.08) |
| Net Realized and Unrealized Gain (Loss) | (44.22) | 1.32 | 54.08 | 9.73 | 3.50 |
| Total from Investment Operations | (44.42) | 0.82 | 53.70 | 9.54 | 3.42 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.29) | (18.00) | (8.56) | (4.96) | (3.32) |
| **Net Asset Value, End of Period** | $25.58 | $74.29 | $91.47 | $46.33 | $41.75 |
| **Total Return<sup>(3)</sup>** | (60.34)% | 0.43% | 115.57% | 23.16% | 7.66% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1469843 | $6234787 | $6816690 | $2440640 | $1785893 |
| Ratio of Expenses Before Expense Limitation | 0.64% | 0.56% | N/A | 0.59% | N/A |
| Ratio of Expenses After Expense Limitation | 0.64%<sup>(4)</sup> | 0.56%<sup>(4)</sup> | 0.54%<sup>(4)</sup> | 0.58%<sup>(4)</sup> | 0.58%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.58%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (0.46)%<sup>(4)</sup> | (0.51)%<sup>(4)</sup> | (0.53)%<sup>(4)</sup> | (0.38)%<sup>(4)</sup> | (0.17)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 40% | 59% | 60% | 87% | 41% |

---

(1) Not consolidated.

(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%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Growth Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $67.88 | $85.31 | $43.57 | $39.61 | $39.77 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.27) | (0.70) | (0.51) | (0.30) | (0.19) |
| Net Realized and Unrealized Gain (Loss) | (40.35) | 1.27 | 50.81 | 9.22 | 3.35 |
| Total from Investment Operations | (40.62) | 0.57 | 50.30 | 8.92 | 3.16 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.29) | (18.00) | (8.56) | (4.96) | (3.32) |
| **Net Asset Value, End of Period** | $22.97 | $67.88 | $85.31 | $43.57 | $39.61 |
| **Total Return<sup>(3)</sup>** | (60.44)% | 0.16% | 115.09% | 22.81% | 7.39% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1577172 | $5307929 | $5465808 | $2399450 | $2043706 |
| Ratio of Expenses Before Expense Limitation | 0.89% | 0.82% | N/A | 0.84% | N/A |
| Ratio of Expenses After Expense Limitation | 0.89%<sup>(4)</sup> | 0.82%<sup>(4)</sup> | 0.79%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | 0.84%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.83%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (0.71)%<sup>(4)</sup> | (0.77)%<sup>(4)</sup> | (0.77)%<sup>(4)</sup> | (0.64)%<sup>(4)</sup> | (0.43)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 40% | 59% | 60% | 87% | 41% |

---

(1) Not consolidated.

(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%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Growth Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $61.05 | $78.85 | $40.77 | $37.51 | $37.99 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.40) | (1.03) | (0.76) | (0.50) | (0.39) |
| Net Realized and Unrealized Gain (Loss) | (36.22) | 1.23 | 47.40 | 8.72 | 3.23 |
| Total from Investment Operations | (36.62) | 0.20 | 46.64 | 8.22 | 2.84 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.29) | (18.00) | (8.56) | (4.96) | (3.32) |
| **Net Asset Value, End of Period** | $20.14 | $61.05 | $78.85 | $40.77 | $37.51 |
| **Total Return<sup>(3)</sup>** | (60.63)% | (0.30)% | 114.01% | 22.22% | 6.89% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $46313 | $151668 | $173317 | $93053 | $83818 |
| Ratio of Expenses Before Expense Limitation | 1.36% | 1.28% | N/A | 1.33% | N/A |
| Ratio of Expenses After Expense Limitation | 1.36%<sup>(4)</sup> | 1.28%<sup>(4)</sup> | 1.29%<sup>(4)</sup> | 1.32%<sup>(4)</sup> | 1.31%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 1.32%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Loss | (1.18)%<sup>(4)</sup> | (1.24)%<sup>(4)</sup> | (1.27)%<sup>(4)</sup> | (1.12)%<sup>(4)</sup> | (0.90)%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 40% | 59% | 60% | 87% | 41% |

---

(1) Not consolidated.

(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%.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Growth Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $59.49 | $77.49 | $40.23 | $37.17 | $37.76 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.48) | (1.23) | (0.93) | (0.61) | (0.51) |
| Net Realized and Unrealized Gain (Loss) | (35.24) | 1.23 | 46.75 | 8.63 | 3.24 |
| Total from Investment Operations | (35.72) | 0.00<br><sup>(3)</sup> | 45.82 | 8.02 | 2.73 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.29) | (18.00) | (8.56) | (4.96) | (3.32) |
| **Net Asset Value, End of Period** | $19.48 | $59.49 | $77.49 | $40.23 | $37.17 |
| **Total Return<sup>(4)</sup>** | (60.73)% | (0.55)% | 113.48% | 21.91% | 6.61% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $147014 | $524748 | $514190 | $166303 | $92431 |
| Ratio of Expenses Before Expense Limitation | 1.61% | 1.55% | N/A | 1.59% | N/A |
| Ratio of Expenses After Expense Limitation | 1.61%<sup>(5)</sup> | 1.55%<sup>(5)</sup> | 1.53%<sup>(5)</sup> | 1.58%<sup>(5)</sup> | 1.57%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 1.58%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Loss | (1.43)%<sup>(5)</sup> | (1.50)%<sup>(5)</sup> | (1.51)%<sup>(5)</sup> | (1.38)%<sup>(5)</sup> | (1.17)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 40% | 59% | 60% | 87% | 41% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Growth Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $75.32 | $92.42 | $46.73 | $42.04 | $41.89 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.13) | (0.41) | (0.32) | (0.15) | (0.04) |
| Net Realized and Unrealized Gain (Loss) | (44.87) | 1.31 | 54.57 | 9.80 | 3.51 |
| Total from Investment Operations | (45.00) | 0.90 | 54.25 | 9.65 | 3.47 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.29) | (18.00) | (8.56) | (4.96) | (3.32) |
| **Net Asset Value, End of Period** | $26.03 | $75.32 | $92.42 | $46.73 | $42.04 |
| **Total Return<sup>(4)</sup>** | (60.28)% | 0.51% | 115.76% | 23.26% | 7.74% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1413983 | $3585865 | $3743697 | $1560148 | $1202659 |
| Ratio of Expenses Before Expense Limitation | 0.50% | 0.46% | N/A | 0.50% | N/A |
| Ratio of Expenses After Expense Limitation | 0.50%<sup>(5)</sup> | 0.46%<sup>(5)</sup> | 0.47%<sup>(5)</sup> | 0.49%<sup>(5)</sup> | 0.50%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.49%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Loss | (0.32)%<sup>(5)</sup> | (0.41)%<sup>(5)</sup> | (0.45)%<sup>(5)</sup> | (0.29)%<sup>(5)</sup> | (0.09)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 40% | 59% | 60% | 87% | 41% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Growth Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 15, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $75.32 | $92.41 | $46.73 | $42.04 | $52.16 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.16) | (0.41) | (0.31) | (0.15) | (0.04) |
| Net Realized and Unrealized Gain (Loss) | (44.93) | 1.32 | 54.55 | 9.80 | (6.76) |
| Total from Investment Operations | (45.09) | 0.91 | 54.24 | 9.65 | (6.80) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (4.29) | (18.00) | (8.56) | (4.96) | (3.32) |
| **Net Asset Value, End of Period** | $25.94 | $75.32 | $92.41 | $46.73 | $42.04 |
| **Total Return<sup>(4)</sup>** | (60.41)% | 0.52% | 115.74% | 23.26% | (13.48)%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $33 | $319566 | $389971 | $269241 | $149578 |
| Ratio of Expenses Before Expense Limitation | 0.49% | 0.46% | N/A | 0.50% | N/A |
| Ratio of Expenses After Expense Limitation | 0.49%<sup>(6)</sup> | 0.46%<sup>(6)</sup> | 0.47%<sup>(6)</sup> | 0.49%<sup>(6)</sup> | 0.49%<sup>(6)(8)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.49%<sup>(6)</sup> | N/A |
| Ratio of Net Investment Loss | (0.33)%<sup>(6)</sup> | (0.41)%<sup>(6)</sup> | (0.45)%<sup>(6)</sup> | (0.30)%<sup>(6)</sup> | (0.14)%<sup>(6)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 40% | 59% | 60% | 87% | 41% |

---

(1) Not consolidated.

(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) Not annualized.

(6) 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."

(7) Amount is less than 0.005%.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>19

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Growth Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of large capitalization companies.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Growth Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented approximately $38,496,000 or approximately 0.83% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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 June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"), which clarifies the guidance in ASC Topic No. 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and introduces new disclosures related to such equity security. ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security's fair value (i.e., the entity should not apply a discount related to the contractual sale restriction, as stated in ASC 820-10-35-36B as amended by ASU 2022-03). In addition, ASU 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. The new guidance is effective for public companies with annual reporting periods in fiscal years beginning after December 15, 2023, and interim periods in the following year, with early adoption permitted. At this time, management is currently evaluating the impact of ASU 2022-03.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) 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; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; (7) Private Investment in Public Equity ("PIPE") investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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

**2. Fair Value Measurement:** FASB ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Automobiles | $15892 | $— | $— |  | $15892 |  |
| Biotechnology | 66134 |  |  |  | 66134 |  |
| Capital Markets | 17880 |  |  |  | 17880 |  |
| Chemicals | 19503 |  |  |  | 19503 |  |
| Commercial <br>Services & <br>Supplies | 7360 |  |  |  | 7360 |  |
| Consumer Finance | 6924 |  |  |  | 6924 |  |
| Electronic <br>Equipment, <br>Instruments & <br>Components |  |  |  | † |  | † |
| Entertainment | 234087 |  |  |  | 234087 |  |
| Health Care <br>Equipment & <br>Supplies | 7489 |  |  |  | 7489 |  |
| Health Care <br>Providers & <br>Services | 148208 |  |  |  | 148208 |  |
| Health Care <br>Technology | 88367 |  |  |  | 88367 |  |
| Information <br>Technology <br>Services | 1022132 | 192458 |  |  | 1214590 |  |
| Interactive Media & <br>Services | 129273 |  |  |  | 129273 |  |
| Internet & Direct <br>Marketing Retail | 649519 |  |  |  | 649519 |  |
| Leisure Products | 25564 |  |  |  | 25564 |  |
| Life Sciences <br>Tools & Services | 199042 |  |  |  | 199042 |  |
| Media | 275963 |  |  |  | 275963 |  |
| Pharmaceuticals | 324840 |  |  |  | 324840 |  |
| Road & Rail | 383616 |  |  |  | 383616 |  |
| Semiconductors & <br>Semiconductor <br>Equipment | 90977 |  |  |  | 90977 |  |
| Software | 540835 |  |  |  | 540835 |  |
| Specialty Retail | 16057 |  |  |  | 16057 |  |
| **Total Common <br>Stocks** | **4269662** | **192458** | **—** | **†** | **4462120** | **†** |
| **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** |
| Software |  |  | 102367 |  | 102367 |  |
| **Investment <br>Company** | 32354 |  |  |  | 32354 |  |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** | **Total<br>(000)** |
| **Preferred Stock (cont'd)** | **Preferred Stock (cont'd)** | **Preferred Stock (cont'd)** | **Preferred Stock (cont'd)** | **Preferred Stock (cont'd)** | **Preferred Stock (cont'd)** | **Preferred Stock (cont'd)** |
| **Call Options <br>Purchased** | $— | $8821 | $— |  | $8821 |  |
| **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** |
| Investment <br>Company | 113959 |  |  |  | 113959 |  |
| Repurchase <br>Agreements |  | 6355 |  |  | 6355 |  |
| **Total Short-Term <br>Investments** | **113959** | **6355** | **—** |  | **120314** |  |
| **Total Assets** | $**4415975** | $**207634** | $**102367** | **†** | $**4725976** | **†** |

---

† 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.

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

---

| | | | |
|:---|:---|:---|:---|
| | **Common <br>Stock <br>(000)** | **Common <br>Stock <br>(000)** | **Preferred <br>Stock<br>(000)** |
| **Beginning Balance** | $— |  | $139951 |
| Purchases |  |  |  |
| Sales |  |  |  |
| PIPE transaction |  |  |  |
| Amortization of discount |  |  |  |
| Transfers in |  | † |  |
| Transfers out |  |  | (— |
| Corporate actions |  |  |  |
| Change in unrealized appreciation (depreciation) |  |  | (37584 |
| Realized gains (losses) |  |  |  |
| **Ending Balance** | $— | † | $102367 |
| Net change in unrealized appreciation <br>(depreciation) from investments still <br>held as of December 31, 2022 | $— |  | $(37584 |

---

† Includes a security valued at zero.

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 December 31, 2022. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance. The Fund calculated the weighted averages of the unobservable inputs relative to each investment's fair value as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value at <br>December 31, 2022 <br>(000)** | **Valuation<br>Technique** | **Unobservable<br>Input** | **Amount\*** | **Impact to<br>Valuation from an<br>Increase in Input\*\*** |
| Preferred Stock | $102367 | Discounted Cash Flow | Weighted Average <br>Cost of Capital | <br>14.0% | <br>Decrease |
|  |  |  | Perpetual Growth Rate | 3.5% | Increase |
|  |  | Market Comparable<br>Companies | Enterprise Value/ <br>Revenue | <br>12.8x | <br>Increase |
|  |  |  | Discount for Lack <br>of Marketability | <br>15.0% | <br>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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 U.S. 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.

**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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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:** 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.

As of December 31, 2022, the Fund did not have any open PIPE 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 table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives <br>Consolidated Statement <br>of Assets and <br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Purchased Options | Investments, at Value<br>(Purchased Options) | Currency Risk | $8821<br> (a) |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(81580)(b) |

---

(b) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value <br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $65429<br> (c) |

---

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(d)<br>(000)** | **Liabilities(d)<br>(000)** |
| Purchased Options | $8821<br> (a) | $— |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 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 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Asset <br>Derivatives <br>Presented in <br>the Consolidated <br>Statement of <br>Assets and <br>Liabilities(a) <br>(000)** | **<br>Financial <br>Instrument <br>(000)** | **<br>Collateral <br>Received(e) <br>(000)** | **<br>Net Amount <br>(not less <br>than $0) <br>(000)** |
| Goldman Sachs <br>International | $29 | $— | $(29) | $0 |
| JP Morgan Chase Bank NA | 4025 |  | (4025) | 0 |
| Standard Chartered Bank | 4767 |  | (4767) | 0 |
| Total | $8821 | $— | $(8821) | $0 |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 9023429000 |
| **Derivative Contract — PIPE:** | **Derivative Contract — PIPE:** |
| Average monthly notional amount | $19330000 |

---

**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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 Consolidated 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Gross Asset<br>Amounts<br>Presented in<br>the Consolidated<br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| $41973<br> (f) | $— | $(41973)(g)(h) | $0 |

---

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

(g) The Fund received cash collateral of approximately $40,605,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $1,943,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated Portfolio of Investments.

(h) 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 & <br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stocks | $40605 | $— | $— | $— | $40605 |
| **Total Borrowings** | $**40605** | $**—** | $**—** | $**—** | $**40605** |
| **Gross amount of<br>recognized liabilities<br>for securities lending<br>transactions** |  |  |  |  | $**40605** |

---

**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 Consolidated Portfolio of Investments.

**8. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

**10. Security Transactions, Income and Expenses:** Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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<br>billion** | **Next $1<br>billion** | **Next $1<br>billion** | **Over $3<br>billion** |
| 0.50% | 0.45% | 0.40% | 0.35% |

---

For the year ended December 31, 2022, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.39% 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, 1.65% for Class L shares, 1.90% for Class C shares, 0.73% for Class R6 shares and 0.73% for Class IR 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 Directors act to discontinue all or a portion of such

waivers and/or reimbursements when they deem such action is appropriate. This arrangement had no effect for the year ended December 31, 2022.

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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $3,292,791,000 and $5,467,292,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $165,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company/<br>Issuer** | **Value<br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $345484 | $2621680 | $2853205 | $1203 |
| ProKidney Corp. |  | 38660 | 305 |  |
| Total | $345484 | $2660340 | $2853510 | $1203 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company/ <br>Issuer (cont'd)** | **Realized<br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $113959 |
| ProKidney Corp. | 18 | (12049) | 26324 |
| Total | $18 | $(12049) | $140283 |

---

During the year ended December 31, 2022, the Fund incurred approximately $41,000 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Directors of the Fund who will have served as independent Directors for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Directors voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the year ended December 31, 2022, included in "Directors' Fees and Expenses" in the Consolidated Statement

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

of Operations amounted to approximately $3,000. At December 31, 2022, the Fund had an accrued pension liability of approximately $39,000, which is reflected as "Payable for Directors' Fees and Expenses" in the Consolidated Statement of Assets and Liabilities.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $724752 | $709582 | $2678180 |

---

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 a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated<br>Loss <br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $107504 | $(107504) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $1,070,945,000 and $467,078,000, 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.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified Late<br>Year Ordinary<br>Losses<br>(000)** | **Post-October<br>Capital Losses<br>(000)** |
| $18173 | $— |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 55.6%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrencies indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user

preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**Special Purpose Acquisition Companies ("SPAC"):** The Fund may invest in stock, warrants, and other securities of 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 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. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. —<br>Growth Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Growth Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279221_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated and paid approximately $724,752,000 as a long-term capital gain distribution.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) 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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279221_za006.jpg)

IFIGRWANN<br>5452860 EXP 02.29.24

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![](j23279222_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Inception Portfolio

Annual Report

December 31, 2022

![](j23279222_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 9 |
| Consolidated Statement of Operations | 11 |
| Consolidated Statements of Changes in Net Assets | 12 |
| Consolidated Financial Highlights | 14 |
| Notes to Consolidated Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 33 |
| Liquidity Risk Management Program | 34 |
| Federal Tax Notice | 35 |
| U.S. Customer Privacy Notice | 36 |
| Director and Officer Information | 39 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279222_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Inception Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 December 31, 2022 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) and redemption fees. 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Inception Portfolio Class I | $1000.00 | $863.10 | $1020.16 | $4.70 | $5.09 | 1.00% |
| Inception Portfolio Class A | 1000.00 | 860.70 | 1018.40 | 6.33 | 6.87 | 1.35 |
| Inception Portfolio Class L | 1000.00 | 859.50 | 1016.13 | 8.44 | 9.15 | 1.80 |
| Inception Portfolio Class C | 1000.00 | 857.10 | 1014.62 | 9.83 | 10.66 | 2.10 |
| Inception Portfolio Class R6<sup>(1)</sup> | 1000.00 | 863.70 | 1020.52 | 4.37 | 4.74 | 0.93 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Inception Portfolio**

The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of small capitalization companies.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –59.42%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the Russell 2000® Growth Index (the "Index"), which returned –26.36%.

**Factors Affecting Performance**

• Stubbornly high inflation, rapidly rising interest rates and moderating economic growth were significant headwinds to U.S. equity performance in 2022. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher. The U.S. Federal Reserve and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in stock and bond markets. While tightening financial conditions helped slow some segments of the economy and inflation appeared to be receding from peak levels, the jobs market remained resilient and inflation rates were still historically high at year-end, setting up expectations for additional interest rate hikes in 2023.

• Small-cap growth equities, as measured by the Index, declined over the 12-month period. Except for the energy sector's outsized gain, all Index sectors had negative performance in the year. Real estate, communication services, and information technology were the bottom performing sectors.

• Counterpoint Global seeks high quality companies, which we define primarily as those with sustainable competitive advantages. We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period primarily due to unfavorable stock selection; sector allocation detracted to a lesser extent.

• Fear and uncertainty due to concerns about inflation, rising interest rates, geopolitical tensions and ongoing effects of the global pandemic continued to weigh on market sentiment, contributing to greater volatility and a continued aversion towards high growth equities. We believe this rotation away from high growth equities remains driven primarily by non-fundamental factors. Fundamentals across portfolio holdings have largely remained healthy and in line with our expectations. Despite market volatility, we continue to find many high-quality companies with attractive end-game potential due to compelling fundamentals, strong balance sheets and multiple competitive advantages. We believe today's market offers an attractive opportunity to buy unique companies with strong fundamentals that can be long-term winners over the next three to five years.

• Stock selection was the main driver of relative underperformance, largely driven by mixed selection in the health care, consumer discretionary and information technology sectors. The largest detractor across the whole portfolio was a technology company specializing in consumer buy-now-pay-later point of sale financing and payment processing. Its shares languished due to concerns about a tougher funding environment and macroeconomic weakness resulting in potentially greater consumer delinquencies and loan losses. Within these sectors the weak performance of this company and a diverse set of other holdings was partly offset by strength in a hardware and software solutions provider for the network access market, which was the greatest contributor across the portfolio in the period. Its strong performance was driven by solid quarterly results and a substantial increase in revenue guidance. The company also had a record quarter for hiring and announced a stock repurchase program.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Inception Portfolio**

• The portfolio's stock selection and sector allocations in most other sectors diminished relative performance as well; although an overweight to health care and an underweight to real estate were modestly beneficial, the impact to relative performance was negligible given the Fund's relative underperformance. Utilities — a sector the portfolio has no exposure to — had a negligible impact on relative performance.

**Management Strategies**

• As a team, we believe having a market outlook can be an anchor. Our focus is on assessing company prospects over a five-year horizon, and owning a portfolio of unique companies whose market value we believe can increase significantly for underlying fundamental reasons.

![](j23279222_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the Russell 2000<sup>®</sup> Growth Index** **<sup>(1)</sup>** **and the Lipper Small-Cap Growth Funds Index** **<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(9)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –59.42% | 6.21% | 8.08% | 9.88% |
| Fund — Class A Shares <br>w/o sales charges<sup>(5)</sup> | –59.57 | 5.87 | 7.74 | 8.80 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(5)</sup> | –61.69 | 4.73 | 7.16 | 8.58 |
| Fund — Class L Shares <br>w/o sales charges<sup>(6)</sup> | –59.76 | 5.30 | 7.18 | 7.52 |
| Fund — Class C Shares <br>w/o sales charges<sup>(8)</sup> | –59.90 | 5.03 |  | 5.29 |
| Fund — Class C Shares with <br>maximum 1.00% deferred sales <br>charges<sup>(8)</sup> | –60.30 | 5.03 |  | 5.29 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(7)</sup> | –59.39 | 6.26 |  | 4.98 |
| Russell 2000<sup>®</sup> Growth Index | –26.36 | 3.51 | 9.20 | 7.48 |
| Lipper Small-Cap Growth <br>Funds Index | –26.54 | 7.09 | 10.45 | 9.15 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Russell 2000<sup>®</sup> Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000<sup>®</sup> Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000<sup>®</sup> Index is a subset of the Russell 3000<sup>®</sup> Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market capitalization and current index membership. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on November 1, 1989.

<sup>(5)</sup> Commenced offering on January 2, 1996.

<sup>(6)</sup> Commenced offering on November 11, 2011.

<sup>(7)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(8)</sup> Commenced offering on May 31, 2017.

<sup>(9)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Inception Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (94.9%)** | **Common Stocks (94.9%)** | **Common Stocks (94.9%)** |
| Airlines (0.4%) | Airlines (0.4%) | Airlines (0.4%) |
| Joby Aviation, Inc. (a)(b) | 412444 | $1382 |
| Auto Components (1.0%) | Auto Components (1.0%) | Auto Components (1.0%) |
| XPEL, Inc. (a) | 57761 | 3469 |
| Beverages (0.5%) | Beverages (0.5%) | Beverages (0.5%) |
| Celsius Holdings, Inc. (a) | 15967 | 1661 |
| Biotechnology (2.2%) | Biotechnology (2.2%) | Biotechnology (2.2%) |
| Beam Therapeutics, Inc. (a) | 46996 | 1838 |
| Fate Therapeutics, Inc. (a) | 82242 | 830 |
| Intellia Therapeutics, Inc. (a) | 71119 | 2481 |
| ProKidney Corp. (Cayman Islands) (a) | 322412 | 2212 |
| Senti Biosciences, Inc. Founder Shares (a)(c) | 144566 | 174 |
|  |  | 7535 |
| Chemicals (0.8%) | Chemicals (0.8%) | Chemicals (0.8%) |
| Ginkgo Bioworks Holdings, Inc. (a)(b) | 1614819 | 2729 |
| Commercial Services & Supplies (0.2%) | Commercial Services & Supplies (0.2%) | Commercial Services & Supplies (0.2%) |
| Aurora Innovation, Inc. (a) | 465702 | 563 |
| Communications Equipment (3.9%) | Communications Equipment (3.9%) | Communications Equipment (3.9%) |
| Calix, Inc. (a) | 194311 | 13297 |
| Consumer Finance (0.5%) | Consumer Finance (0.5%) | Consumer Finance (0.5%) |
| Upstart Holdings, Inc. (a)(b) | 134535 | 1779 |
| Diversified Consumer Services (2.1%) | Diversified Consumer Services (2.1%) | Diversified Consumer Services (2.1%) |
| Duolingo, Inc. (a) | 100486 | 7148 |
| Diversified Telecommunication Services (4.2%) | Diversified Telecommunication Services (4.2%) | Diversified Telecommunication Services (4.2%) |
| Anterix, Inc. (a) | 437630 | 14079 |
| Health Care Equipment & Supplies (2.9%) | Health Care Equipment & Supplies (2.9%) | Health Care Equipment & Supplies (2.9%) |
| Angle PLC (United Kingdom) (a) | 1639299 | 1001 |
| Figs, Inc., Class A (a) | 498666 | 3356 |
| Outset Medical, Inc. (a) | 110792 | 2861 |
| Penumbra, Inc. (a) | 11596 | 2579 |
|  |  | 9797 |
| Health Care Providers & Services (9.5%) | Health Care Providers & Services (9.5%) | Health Care Providers & Services (9.5%) |
| 23andMe Holding Co., Class A (a) | 732545 | 1582 |
| Agilon health, Inc. (a) | 1166462 | 18827 |
| Alignment Healthcare, Inc. (a) | 148667 | 1748 |
| Guardant Health, Inc. (a) | 75488 | 2053 |
| Oak Street Health, Inc. (a) | 80441 | 1730 |
| Privia Health Group, Inc. (a) | 274344 | 6231 |
|  |  | 32171 |
| Health Care Technology (7.2%) | Health Care Technology (7.2%) | Health Care Technology (7.2%) |
| Doximity, Inc., Class A (a) | 584090 | 19602 |
| Inspire Medical Systems, Inc. (a) | 11398 | 2871 |
| Schrodinger, Inc. (a) | 94690 | 1770 |
|  |  | 24243 |
| Hotels, Restaurants & Leisure (0.4%) | Hotels, Restaurants & Leisure (0.4%) | Hotels, Restaurants & Leisure (0.4%) |
| Membership Collective Group, Inc., Class A (a)(b) | 368614 | 1379 |
| Household Durables (4.2%) | Household Durables (4.2%) | Household Durables (4.2%) |
| Cricut, Inc., Class A (a)(b) | 818194 | 7585 |
| Victoria PLC (United Kingdom) (a) | 1134776 | 6619 |
|  |  | 14204 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Information Technology Services (6.6%) | Information Technology Services (6.6%) | Information Technology Services (6.6%) |
| Affirm Holdings, Inc. (a) | 727127 | $7031 |
| Fastly, Inc., Class A (a) | 246688 | 2021 |
| MongoDB, Inc. (a) | 68128 | 13410 |
|  |  | 22462 |
| Insurance (0.5%) | Insurance (0.5%) | Insurance (0.5%) |
| Trupanion, Inc. (a)(b) | 32465 | 1543 |
| Internet & Direct Marketing Retail (6.7%) | Internet & Direct Marketing Retail (6.7%) | Internet & Direct Marketing Retail (6.7%) |
| BARK, Inc. (a) | 1219246 | 1816 |
| Global-e Online Ltd. (Israel) (a) | 863607 | 17825 |
| Wayfair, Inc., Class A (a) | 97595 | 3210 |
|  |  | 22851 |
| Leisure Products (2.7%) | Leisure Products (2.7%) | Leisure Products (2.7%) |
| Peloton Interactive, Inc., Class A (a) | 1141737 | 9065 |
| Life Sciences Tools & Services (5.4%) | Life Sciences Tools & Services (5.4%) | Life Sciences Tools & Services (5.4%) |
| 10X Genomics, Inc., Class A (a) | 375330 | 13677 |
| MaxCyte, Inc. (a) | 449592 | 2455 |
| SomaLogic, Inc. (a) | 393849 | 989 |
| Standard BioTools, Inc. (a)(b) | 1065127 | 1246 |
|  |  | 18367 |
| Metals & Mining (0.5%) | Metals & Mining (0.5%) | Metals & Mining (0.5%) |
| MP Materials Corp. (a) | 70698 | 1717 |
| Pharmaceuticals (0.9%) | Pharmaceuticals (0.9%) | Pharmaceuticals (0.9%) |
| ATAI Life Sciences NV (a)(b) | 548518 | 1459 |
| GH Research PLC (a)(b) | 160091 | 1548 |
|  |  | 3007 |
| Real Estate Management & Development (0.7%) | Real Estate Management & Development (0.7%) | Real Estate Management & Development (0.7%) |
| Opendoor Technologies, Inc. (a) | 279472 | 324 |
| Redfin Corp. (a) | 143975 | 610 |
| WeWork, Inc., Class A REIT (a)(b) | 963408 | 1378 |
|  |  | 2312 |
| Software (26.8%) | Software (26.8%) | Software (26.8%) |
| Appian Corp., Class A (a) | 98532 | 3208 |
| Clear Secure, Inc., Class A | 292740 | 8030 |
| Clearwater Analytics Holdings, Inc., Class A (a) | 105124 | 1971 |
| Confluent, Inc., Class A (a) | 251045 | 5583 |
| Gitlab, Inc., Class A (a) | 441652 | 20069 |
| HashiCorp, Inc., Class A (a) | 189282 | 5175 |
| MicroStrategy, Inc., Class A (a)(b) | 8055 | 1140 |
| Olo, Inc., Class A (a) | 1281434 | 8009 |
| Procore Technologies, Inc. (a) | 305860 | 14431 |
| Samsara, Inc., Class A (a) | 1695666 | 21077 |
| Unity Software, Inc. (a) | 79400 | 2270 |
|  |  | 90963 |
| Specialty Retail (0.3%) | Specialty Retail (0.3%) | Specialty Retail (0.3%) |
| Carvana Co. (a)(b) | 230936 | 1095 |
| Textiles, Apparel & Luxury Goods (2.9%) | Textiles, Apparel & Luxury Goods (2.9%) | Textiles, Apparel & Luxury Goods (2.9%) |
| On Holding AG, Class A (Switzerland) (a) | 570592 | 9791 |
| Trading Companies & Distributors (0.9%) | Trading Companies & Distributors (0.9%) | Trading Companies & Distributors (0.9%) |
| EVI Industries, Inc. (a)(b) | 130595 | 3117 |
| **Total Common Stocks (Cost $504,957)** | **Total Common Stocks (Cost $504,957)** | 321726 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Inception Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Preferred Stocks (3.5%)** | **Preferred Stocks (3.5%)** | **Preferred Stocks (3.5%)** |
| Health Care Technology (1.9%) | Health Care Technology (1.9%) | Health Care Technology (1.9%) |
| Included Health, Inc. Series B (a)(c)(d) <br>(acquisition cost — $3,362; <br>acquired 7/3/14) | 3269139 | $6375 |
| Software (1.6%) | Software (1.6%) | Software (1.6%) |
| Lookout, Inc. Series F (a)(c)(d) <br>(acquisition cost — $13,476; <br>acquired 6/17/14) | 1179743 | 5545 |
| **Total Preferred Stocks (Cost $16,838)** | **Total Preferred Stocks (Cost $16,838)** | 11920 |
| Investment Company (0.6%) | Investment Company (0.6%) | Investment Company (0.6%) |
| Grayscale Bitcoin Trust (a) <br>**(Cost $8,261)** | 227123 | 1883 |
| **Warrants (0.0%) (e)** | **Warrants (0.0%) (e)** | **Warrants (0.0%) (e)** |
| Internet & Direct Marketing Retail (0.0%) (e)  | Internet & Direct Marketing Retail (0.0%) (e)  | Internet & Direct Marketing Retail (0.0%) (e)  |
| BARK, Inc. expires 5/1/26 (a) | 209825 | 32 |
| Life Sciences Tools & Services (0.0%) (e)  | Life Sciences Tools & Services (0.0%) (e)  | Life Sciences Tools & Services (0.0%) (e)  |
| SomaLogic, Inc. expires 8/31/26 (a) | 61142 | 24 |
| **Total Warrants (Cost $1,304)** | **Total Warrants (Cost $1,304)** | 56 |
| **Short-Term Investments (8.0%)** | **Short-Term Investments (8.0%)** | **Short-Term Investments (8.0%)** |
| Securities held as Collateral on Loaned Securities (6.2%) | Securities held as Collateral on Loaned Securities (6.2%) | Securities held as Collateral on Loaned Securities (6.2%) |
| Investment Company (5.2%) | Investment Company (5.2%) | Investment Company (5.2%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 17871025 | 17871 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (1.0%) | Repurchase Agreements (1.0%) | Repurchase Agreements (1.0%) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $1,659; fully collateralized by <br>a U.S. Government obligation; 4.38% <br>due 5/15/41; valued at $1,691) | $1658 | 1658 |
| Merrill Lynch & Co., Inc., (4.25%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $1,659; fully collateralized by <br>a U.S. Government obligation; 1.50% <br>due 2/15/25; valued at $1,691) | 1658 | 1658 |
|  |  | 3316 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $21,187)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $21,187)** | 21187 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Investment Company (1.8%) | Investment Company (1.8%) | Investment Company (1.8%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $5,973)** | 5973106 | $5973 |
| **Total Short-Term Investments (Cost $27,160)** | **Total Short-Term Investments (Cost $27,160)** | 27160 |
| **Total Investments Excluding Purchased <br>Options (107.0%) (Cost $558,520)** | **Total Investments Excluding Purchased <br>Options (107.0%) (Cost $558,520)** | 362745 |
| **Total Purchased Options Outstanding (0.2%) <br>(Cost $1,078)** | **Total Purchased Options Outstanding (0.2%) <br>(Cost $1,078)** | 686 |
| **Total Investments (107.2%) (Cost $559,598) <br>Including $22,610 of Securities Loaned (f)(g)(h)** | **Total Investments (107.2%) (Cost $559,598) <br>Including $22,610 of Securities Loaned (f)(g)(h)** | 363431 |
| Liabilities in Excess of Other Assets (–7.2%) | Liabilities in Excess of Other Assets (–7.2%) | (24533) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $338898 |

---

(a) Non-income producing security.

(b) All or a portion of this security was on loan at December 31, 2022.

(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 December 31, 2022 amounts to approximately $12,094,000 and represents 3.6% of net assets.

(d) At December 31, 2022, the Fund held fair valued securities valued at approximately $11,920,000, representing 3.5% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(e) Amount is less than 0.05%.

(f) The approximate fair value and percentage of net assets, $7,620,000 and 2.2%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(g) Securities are available for collateral in connection with purchased options.

(h) At December 31, 2022, the aggregate cost for federal income tax purposes approximately $627,061,000. The aggregate gross unrealized appreciation is approximately $13,915,000 and the aggregate gross unrealized depreciation is approximately $275,250,000, resulting in net unrealized depreciation of approximately $261,335,000.

REIT Real Estate Investment Trust.

The accompanying notes are an integral part of the consolidated financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Inception Portfolio**

**Call Options Purchased:**

The Fund had the following call options purchased open at December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Depreciation<br>(000)** |
| Goldman Sachs International | USD/CNH CNH | 7.87 | Oct-23 | 914411 | 914 | $2 | $5 | $(3) |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.53 | Jul-23 | 109794878 | 109795 | 316 | 545 | (229) |
| Standard Chartered Bank | USD/CNH CNH | 7.57 | Aug-23 | 118346563 | 118347 | 368 | 528 | (160) |
|  |  |  |  |  |  | $686 | $1078 | $(392) |

---

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Other\*\* | 34.7% |
| Software | 28.2 |
| Health Care Providers & Services | 9.4 |
| Health Care Technology | 9.0 |
| Internet & Direct Marketing Retail | 6.7 |
| Information Technology Services | 6.6 |
| Life Sciences Tools & Services | 5.4 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Inception Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $535,754) | $339587 |
| Investment in Security of Affiliated Issuer, at Value (Cost $23,844) | 23844 |
| Total Investments in Securities, at Value (Cost $559,598) | 363431 |
| Foreign Currency, at Value (Cost $1) |  |
| Receivable from Securities Lending Income | 363 |
| Receivable for Fund Shares Sold | 201 |
| Receivable for Investments Sold | 141 |
| Receivable from Affiliate | 18 |
| Other Assets | 92 |
| **Total Assets** | 364246 |
| **Liabilities:** | **Liabilities:** |
| Collateral on Securities Loaned, at Value | 21187 |
| Due to Broker | 1120 |
| Payable for Fund Shares Redeemed | 955 |
| Payable for Sub Transfer Agency Fees — Class I | 494 |
| Payable for Sub Transfer Agency Fees — Class A | 288 |
| Payable for Sub Transfer Agency Fees — Class L |  |
| Payable for Sub Transfer Agency Fees — Class C | 9 |
| Payable for Investments Purchased | 593 |
| Payable for Advisory Fees | 469 |
| Payable for Professional Fees | 54 |
| Payable for Shareholder Services Fees — Class A | 30 |
| Payable for Distribution and Shareholder Services Fees — Class L |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 8 |
| Payable for Administration Fees | 25 |
| Payable for Custodian Fees | 16 |
| Payable for Transfer Agency Fees — Class I | 4 |
| Payable for Transfer Agency Fees — Class A | 2 |
| Payable for Transfer Agency Fees — Class L | 1 |
| Payable for Transfer Agency Fees — Class C | 1 |
| Payable for Transfer Agency Fees — Class R6\* | 1 |
| Other Liabilities | 91 |
| **Total Liabilities** | 25348 |
| **Net Assets** | $338898 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $1429414 |
| Total Accumulated Loss | (1090516 |
| **Net Assets** | $338898 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Inception Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $157990 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 19777557 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.99 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $132493 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 24847359 |
| **Net Asset Value, Redemption Price Per Share** | $5.33 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.30 |
| **Maximum Offering Price Per Share** | $5.63 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $623 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 140957 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $4.42 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $8490 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1720673 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $4.93 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $39302 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 4863798 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $8.08 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $22610 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Inception Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Income from Securities Loaned — Net | $3169 |
| Dividends from Securities of Unaffiliated Issuers | 291 |
| Dividends from Security of Affiliated Issuer (Note G) | 129 |
| Total Investment Income | 3589 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 5763 |
| Sub Transfer Agency Fees — Class I | 859 |
| Sub Transfer Agency Fees — Class A | 489 |
| Sub Transfer Agency Fees — Class L | 1 |
| Sub Transfer Agency Fees — Class C | 26 |
| Shareholder Services Fees — Class A (Note D) | 540 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 8 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 149 |
| Administration Fees (Note C) | 502 |
| Registration Fees | 361 |
| Shareholder Reporting Fees | 181 |
| Professional Fees | 173 |
| Custodian Fees (Note F) | 68 |
| Transfer Agency Fees — Class I (Note E) | 24 |
| Transfer Agency Fees — Class A (Note E) | 12 |
| Transfer Agency Fees — Class L (Note E) | 4 |
| Transfer Agency Fees — Class C (Note E) | 4 |
| Transfer Agency Fees — Class R6\* (Note E) | 7 |
| Directors' Fees and Expenses | 15 |
| Pricing Fees | 9 |
| Interest Expenses | 1 |
| Other Expenses | 56 |
| Total Expenses | 9252 |
| Waiver of Advisory Fees (Note B) | (1280 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (663 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (134 |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (3 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (4 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (7 |
| Rebate from Morgan Stanley Affiliate (Note G) | (15 |
| Net Expenses | 7146 |
| **Net Investment Loss** | (3557 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (802949 |
| Foreign Currency Translation | (21 |
| Net Realized Loss | (802970 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | 96482 |
| Investments in Affiliates | 2173 |
| Foreign Currency Translation | (— |
| Derivative Contracts — PIPE | 93 |
| Net Change in Unrealized Appreciation (Depreciation) | 98748 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (704222 |
| Net Decrease in Net Assets Resulting from Operations | $(707779 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Inception Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(3557 | $(11858 |
| Net Realized Gain (Loss) | (802970 | 198929 |
| Net Change in Unrealized Appreciation (Depreciation) | 98748 | (526343 |
| Net Decrease in Net Assets Resulting from Operations | (707779 | (339272 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (643 | (161045 |
| **Class A** | (184 | (131242 |
| **Class L** | (1 | (576 |
| **Class C** | (13 | (8978 |
| **Class R6\*** | (203 | (28064 |
| Total Dividends and Distributions to Shareholders | (1044 | (329905 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 176259 | 1243327 |
| Distributions Reinvested | 642 | 160851 |
| Redeemed | (394432 | (794337 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 36648 | 1064454 |
| Distributions Reinvested | 184 | 130793 |
| Redeemed | (117782 | (689202 |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged |  |  |
| Distributions Reinvested | 1 | 575 |
| Redeemed | (169 | (694 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 2486 | 42802 |
| Distributions Reinvested | 13 | 8916 |
| Redeemed | (8655 | (15380 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 21787 | 27096 |
| Distributions Reinvested | 203 | 28064 |
| Redeemed | (38374 | (34507 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (321189 | 1172758 |
| Redemption Fees | 43 | 1946 |
| Total Increase (Decrease) in Net Assets | (1029969 | 505527 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 1368867 | 863340 |
| End of Period | $338898 | $1368867 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Inception Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 13574 | 38969 |
| Shares Issued on Distributions Reinvested | 74 | 8148 |
| Shares Redeemed | (31525 | (27695 |
| Net Increase (Decrease) in Class I Shares Outstanding | (17877 | 19422 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 4353 | 43586 |
| Shares Issued on Distributions Reinvested | 32 | 9909 |
| Shares Redeemed | (13627 | (31696 |
| Net Increase (Decrease) in Class A Shares Outstanding | (9242 | 21799 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged |  |  |
| Shares Issued on Distributions Reinvested |  | 52 |
| Shares Redeemed | (29 | (36 |
| Net Increase (Decrease) in Class L Shares Outstanding | (29 | 16 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 306 | 1924 |
| Shares Issued on Distributions Reinvested | 2 | 724 |
| Shares Redeemed | (1118 | (818 |
| Net Increase (Decrease) in Class C Shares Outstanding | (810 | 1830 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 1643 | 836 |
| Shares Issued on Distributions Reinvested | 23 | 1405 |
| Shares Redeemed | (3903 | (1126 |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (2237 | 1115 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Inception Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $19.75 | $25.48 | $11.19 | $9.62 | $10.90 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | (0.05) | (0.15) | (0.10) | 0.01 | (0.05) |
| Net Realized and Unrealized Gain (Loss) | (11.68) | (0.74) | 16.84 | 3.50 | 0.16 |
| Total from Investment Operations | (11.73) | (0.89) | 16.74 | 3.51 | 0.11 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.02) | (0.11) |  |  |  |
| Net Realized Gain | (0.01) | (4.76) | (2.45) | (1.94) | (1.39) |
| Total Distributions | (0.03) | (4.87) | (2.45) | (1.94) | (1.39) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.03 | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $7.99 | $19.75 | $25.48 | $11.19 | $9.62 |
| **Total Return<sup>(4)</sup>** | (59.42)% | (3.33)% | 150.57% | 37.11% | 0.29% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $157990 | $743854 | $464639 | $59092 | $60777 |
| Ratio of Expenses Before Expense Limitation | 1.41% | 1.12% | 1.18% | 1.21% | 1.17% |
| Ratio of Expenses After Expense Limitation | 1.00%<sup>(5)</sup> | 1.00%<sup>(5)</sup> | 0.99%<sup>(5)</sup> | 0.99%<sup>(5)</sup> | 0.98%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.00%<sup>(5)</sup> | N/A | 0.99%<sup>(5)</sup> | N/A | 0.98%<sup>(5)</sup> |
| Ratio of Net Investment Income (Loss) | (0.43)%<sup>(5)</sup> | (0.49)%<sup>(5)</sup> | (0.54)%<sup>(5)</sup> | 0.09%<sup>(5)</sup> | (0.41)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 100% | 111% | 132% | 99% | 79% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Inception Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $13.20 | $18.68 | $8.51 | $7.68 | $8.99 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.06) | (0.19) | (0.10) | (0.02) | (0.07) |
| Net Realized and Unrealized Gain (Loss) | (7.80) | (0.53) | 12.72 | 2.79 | 0.15 |
| Total from Investment Operations | (7.86) | (0.72) | 12.62 | 2.77 | 0.08 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.03) |  |  |  |
| Net Realized Gain | (0.01) | (4.76) | (2.45) | (1.94) | (1.39) |
| Total Distributions | (0.01) | (4.79) | (2.45) | (1.94) | (1.39) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.03 | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $5.33 | $13.20 | $18.68 | $8.51 | $7.68 |
| **Total Return<sup>(4)</sup>** | (59.57)% | (3.70)% | 149.86% | 36.71% | 0.02% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $132493 | $450058 | $229641 | $45097 | $34166 |
| Ratio of Expenses Before Expense Limitation | 1.62% | 1.40% | 1.44% | 1.52% | 1.44% |
| Ratio of Expenses After Expense Limitation | 1.35%<sup>(5)</sup> | 1.33%<sup>(5)</sup> | 1.25%<sup>(5)</sup> | 1.29%<sup>(5)</sup> | 1.25%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.35%<sup>(5)</sup> | N/A | 1.25%<sup>(5)</sup> | N/A | 1.25%<sup>(5)</sup> |
| Ratio of Net Investment Loss | (0.77)%<sup>(5)</sup> | (0.85)%<sup>(5)</sup> | (0.80)%<sup>(5)</sup> | (0.23)%<sup>(5)</sup> | (0.69)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 100% | 111% | 132% | 99% | 79% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Inception Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $10.99 | $16.45 | $7.65 | $7.10 | $8.46 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.08) | (0.27) | (0.16) | (0.07) | (0.11) |
| Net Realized and Unrealized Gain (Loss) | (6.48) | (0.45) | 11.41 | 2.56 | 0.14 |
| Total from Investment Operations | (6.56) | (0.72) | 11.25 | 2.49 | 0.03 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (0.01) | (4.76) | (2.45) | (1.94) | (1.39) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.02 | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $4.42 | $10.99 | $16.45 | $7.65 | $7.10 |
| **Total Return** | (59.76)%<sup>(4)</sup> | (4.17)%<sup>(4)</sup> | 148.82%<sup>(5)</sup> | 35.91%<sup>(4)</sup> | (0.58)%<sup>(4)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $623 | $1874 | $2543 | $1218 | $1157 |
| Ratio of Expenses Before Expense Limitation | 2.32% | 1.95% | 2.10% | 2.15% | 2.07% |
| Ratio of Expenses After Expense Limitation | 1.85%<sup>(6)</sup> | 1.85%<sup>(6)</sup> | 1.84%<sup>(6)</sup> | 1.84%<sup>(6)</sup> | 1.84%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.85%<sup>(6)</sup> | N/A | 1.84%<sup>(6)</sup> | N/A | 1.84%<sup>(6)</sup> |
| Ratio of Net Investment Loss | (1.28)%<sup>(6)</sup> | (1.36)%<sup>(6)</sup> | (1.43)%<sup>(6)</sup> | (0.78)%<sup>(6)</sup> | (1.28)%<sup>(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 100% | 111% | 132% | 99% | 79% |

---

(1) Not consolidated.

(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) Calculated using the NAV for US GAAP financial reporting purposes and as such differs from the total return presented in the Investment Overview.

(6) 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."

(7) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Inception Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $12.31 | $17.85 | $8.24 | $7.55 | $8.93 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.11) | (0.33) | (0.22) | (0.10) | (0.03) |
| Net Realized and Unrealized Gain (Loss) | (7.26) | (0.47) | 12.28 | 2.73 | 0.04 |
| Total from Investment Operations | (7.37) | (0.80) | 12.06 | 2.63 | 0.01 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (0.01) | (4.76) | (2.45) | (1.94) | (1.39) |
| **Redemption Fees** | (0.01)<sup>(3)</sup> | 0.02 | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $4.93 | $12.31 | $17.85 | $8.24 | $7.55 |
| **Total Return<sup>(4)</sup>** | (59.90)% | (4.37)% | 147.97% | 35.48% | (0.78)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $8490 | $31148 | $12494 | $688 | $116 |
| Ratio of Expenses Before Expense Limitation | 2.33% | 2.12% | 2.26% | 2.75% | 4.73% |
| Ratio of Expenses After Expense Limitation | 2.10%<sup>(5)</sup> | 2.05%<sup>(5)</sup> | 2.07%<sup>(5)</sup> | 2.09%<sup>(5)</sup> | 2.09%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.10%<sup>(5)</sup> | N/A | 2.07%<sup>(5)</sup> | N/A | 2.09%<sup>(5)</sup> |
| Ratio of Net Investment Loss | (1.53)%<sup>(5)</sup> | (1.55)%<sup>(5)</sup> | (1.61)%<sup>(5)</sup> | (0.99)%<sup>(5)</sup> | (1.50)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 100% | 111% | 132% | 99% | 79% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Inception Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $19.99 | $25.73 | $11.29 | $9.69 | $10.96 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(3)</sup> | (0.04) | (0.14) | (0.08) | 0.01 | (0.04) |
| Net Realized and Unrealized Gain (Loss) | (11.83) | (0.74) | 16.97 | 3.53 | 0.16 |
| Total from Investment Operations | (11.87) | (0.88) | 16.89 | 3.54 | 0.12 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.03) | (0.13) |  |  |  |
| Net Realized Gain | (0.01) | (4.76) | (2.45) | (1.94) | (1.39) |
| Total Distributions | (0.04) | (4.89) | (2.45) | (1.94) | (1.39) |
| **Redemption Fees** | 0.00<br><sup>(4)</sup> | 0.03 | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> |
| **Net Asset Value, End of Period** | $8.08 | $19.99 | $25.73 | $11.29 | $9.69 |
| **Total Return<sup>(5)</sup>** | (59.39)% | (3.29)% | 150.79% | 37.04% | 0.38% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $39302 | $141933 | $154023 | $64712 | $110919 |
| Ratio of Expenses Before Expense Limitation | 1.15% | 1.00% | 1.11% | 1.15% | 1.11% |
| Ratio of Expenses After Expense Limitation | 0.93%<sup>(6)</sup> | 0.93%<sup>(6)</sup> | 0.92%<sup>(6)</sup> | 0.92%<sup>(6)</sup> | 0.92%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.93%<sup>(6)</sup> | N/A | 0.92%<sup>(6)</sup> | N/A | 0.92%<sup>(6)</sup> |
| Ratio of Net Investment Income (Loss) | (0.37)%<sup>(6)</sup> | (0.44)%<sup>(6)</sup> | (0.49)%<sup>(6)</sup> | 0.12%<sup>(6)</sup> | (0.36)%<sup>(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 100% | 111% | 132% | 99% | 79% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Inception Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of small capitalization companies.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 5, 2021, the Fund suspended offering of Class I, Class A, Class C and Class IS shares to new investors. On March 15, 2022, the Fund recommenced offering Class I, Class A, Class C and Class IS shares to new investors. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Inception Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all

accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented approximately $2,483,000 or approximately 0.73% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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 June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"), which clarifies the guidance in ASC Topic No. 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and introduces new disclosures related to such equity security. ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security's fair value (i.e., the entity should not apply a discount related to the contractual sale restriction, as stated in ASC 820-10-35-36B as amended by ASU 2022-03). In addition, ASU 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. The new guidance is effective for public companies with annual reporting periods in fiscal years beginning after December 15, 2023, and interim periods in the following year, with early adoption permitted. At this time, management is currently evaluating the impact of ASU 2022-03.

**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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) 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; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; (7) Private Investment in Public Equity ("PIPE") investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** FASB ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Airlines | $1382 | $— | $— | $1382 |
| Auto Components | 3469 |  |  | 3469 |
| Beverages | 1661 |  |  | 1661 |
| Biotechnology | 7361 | 174 |  | 7535 |
| Chemicals | 2729 |  |  | 2729 |
| Commercial Services & <br>Supplies | 563 |  |  | 563 |
| Communications <br>Equipment | 13297 |  |  | 13297 |
| Consumer Finance | 1779 |  |  | 1779 |
| Diversified Consumer <br>Services | 7148 |  |  | 7148 |
| Diversified <br>Telecommunication <br>Services | 14079 |  |  | 14079 |
| Health Care Equipment & <br>Supplies | 8796 | 1001 |  | 9797 |
| Health Care Providers & <br>Services | 32171 |  |  | 32171 |
| Health Care Technology | 24243 |  |  | 24243 |
| Hotels, Restaurants & <br>Leisure | 1379 |  |  | 1379 |
| Household Durables | 7585 | 6619 |  | 14204 |
| Information Technology <br>Services | 22462 |  |  | 22462 |
| Insurance | 1543 |  |  | 1543 |
| Internet & Direct <br>Marketing Retail | 22851 |  |  | 22851 |
| Leisure Products | 9065 |  |  | 9065 |
| Life Sciences Tools & <br>Services | 18367 |  |  | 18367 |
| Metals & Mining | 1717 |  |  | 1717 |
| Pharmaceuticals | 3007 |  |  | 3007 |
| Real Estate Management & <br>Development | 2312 |  |  | 2312 |
| Software | 90963 |  |  | 90963 |
| Specialty Retail | 1095 |  |  | 1095 |
| Textiles, Apparel & <br>Luxury Goods | 9791 |  |  | 9791 |
| Trading Companies & <br>Distributors | 3117 |  |  | 3117 |
| **Total Common Stocks** | **313932** | **7794** | **—** | **321726** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Preferred Stocks** | **Preferred Stocks** | **Preferred Stocks** | **Preferred Stocks** | **Preferred Stocks** |
| Health Care Technology | $— | $— | $6375 | $6375 |
| Software |  |  | 5545 | 5545 |
| **Total Preferred Stocks** | **—** | **—** | **11920** | **11920** |
| **Investment Company** | 1883 |  |  | 1883 |
| **Warrants** | 56 |  |  | 56 |
| **Call Options Purchased** |  | 686 |  | 686 |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 23844 |  |  | 23844 |
| Repurchase Agreements |  | 3316 |  | 3316 |
| **Total Short-Term <br>Investments** | **23844** | **3316** | **—** | **27160** |
| **Total Assets** | $**339715** | $**11796** | $**11920** | $**363431** |

---

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:

---

| | | |
|:---|:---|:---|
| | **Preferred<br>Stocks<br>(000)** | **Derivative<br>Contract — <br>PIPE<br>(000)** |
| **Beginning Balance** | $13361 | $(93) |
| Purchases |  |  |
| Sales |  |  |
| PIPE transactions |  | 93 |
| Amortization of discount |  |  |
| Transfers in |  |  |
| Transfers out |  |  |
| Corporate actions |  |  |
| Change in unrealized appreciation (depreciation) | (1441) |  |
| Realized gains (losses) |  |  |
| **Ending Balance** | $11920 | $— |
| Net change in unrealized appreciation (depreciation) <br>from investments still held as of <br>December 31, 2022 | $(1441) | $— |

---

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 December 31, 2022. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance. The Fund calculated the weighted averages of the unobservable inputs relative to each investment's fair value as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value at<br>December 31, 2022<br>(000)** | **Valuation <br>Technique** | **Unobservable <br>Input** | **Amount or Range/<br>Weighted Average\*** | **Impact to<br>Valuation from an<br>Increase in Input\*\*** |
| Preferred Stocks | $11920 | Discounted Cash Flow | Weighted Average<br>Cost of Capital | 12.0%–14.5%/13.2% | Decrease |
|  |  |  | Perpetual Growth Rate | 3.0%–4.0%/3.5% | Increase |
|  |  | Market Comparable<br>Companies | Enterprise Value/<br>Revenue | <br>0.9x–9.5x/4.2x | <br>Increase |
|  |  |  | Discount for Lack of<br>Marketability | <br>16.0%–19.0%/17.6% | <br>Decrease |
|  |  | Comparable<br>Transactions | Enterprise Value/<br>Revenue | <br>2.8x–15.2x/6.4x | <br>Increase |

---

\* Amount is indicative of the weighted average.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**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 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 U.S. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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:** 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

PIPE investment represents an unfunded subscription agreement in a private investment in public equity.

As of December 31, 2022, the Fund did not have any open PIPE 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 table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Consolidated Statement<br>of Assets and <br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Purchased Options | Investments, at Value<br>(Purchased Options) | <br>Currency Risk | $686<br> (a) |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(7929)(b) |

---

(b) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $6314<br> (c) |
| Equity Risk | Derivative Contract — PIPE | 93 |
| Total |  | $6407 |

---

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(d)<br>(000)** | **Liabilities(d)<br>(000)** |
| Purchased Options | $686<br> (a) | $— |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 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 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Asset <br>Derivatives<br>Presented in<br>the Consolidated <br>Statement of<br>Assets and <br>Liabilities(a)<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received(e)<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| Goldman Sachs <br>International | $2 | $— | $(2) | $0 |
| JP Morgan Chase <br>Bank NA | 316 |  | (316) | 0 |
| Standard Chartered <br>Bank | 368 |  | (368) | 0 |
| Total | $686 | $— | $(686) | $0 |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | $920450000 |
| **Derivative Contract — PIPE:** | **Derivative Contract — PIPE:** |
| Average monthly notional amount | $1954000 |

---

**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 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 Consolidated 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in <br>the Consolidated<br>Statement of <br>Assets and <br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $22610<br> (f) | $— | $(22610)(g)(h) | $0 |

---

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

(g) The Fund received cash collateral of approximately $21,187,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $2,001,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated Portfolio of Investments.

(h) 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 borrowings.

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

contractual maturity of those transactions as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 & <br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stocks | $21187 | $— | $— | $— | $21187 |
| **Total Borrowings** | $**21187** | $**—** | $**—** | $**—** | $**21187** |
| **Gross amount of <br>recognized liabilities <br>for securities lending <br>transactions** |  |  |  |  | $**21187** |

---

**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 Consolidated Portfolio of Investments.

**8. Redemption Fees:** The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class L shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

**9. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company has not had prior claims

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

**10. 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.

**11. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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<br>billion** | **Next $500<br>million** | **Next $500<br>million** | **Over $2<br>billion** |
| 0.92% | 0.85% | 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.71% 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.93% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $1,280,000 of advisory fees were waived and approximately $811,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $645,863,000 and $945,195,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $15,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company/Issuer** | **Value<br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $118626 | $386130 | $480912 | $129 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment <br>Company/Issuer (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $23844 |

---

During the year ended December 31, 2022, the Fund incurred approximately $8,000 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $936 | $108 | $284430 | $45475 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

(losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $11202 | $(11202) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $487,507,000 and $339,470,000 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.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2022, the Fund intends to defer to January 1, 2023 for U.S. federal income tax purposes the following losses:

---

| | |
|:---|:---|
| **Qualified<br>Late Year<br>Ordinary <br>Loses<br>(000)** | **Post-October<br>Capital<br>Losses<br>(000)** |
| $1023 | $— |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 66.5%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrencies indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**Special Purpose Acquisition Companies ("SPAC"):** The Fund may invest in stock, warrants, and other securities of 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 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 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Inception Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Inception Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279222_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 8.01% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $108,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $75,000 as taxable at this lower rate.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since <br>August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since <br>February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since <br>August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since <br>January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since <br>February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since <br>January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since <br>July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since <br>August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since <br>August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since <br>January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since <br>September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since <br>November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since <br>June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since <br>June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279222_za006.jpg)

IFISCGANN<br>5452861 EXP 02.29.24

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![](j23279223_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

International Advantage <br>Portfolio

Annual Report

December 31, 2022

![](j23279223_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 8 |
| Consolidated Statement of Operations | 10 |
| Consolidated Statements of Changes in Net Assets | 11 |
| Consolidated Financial Highlights | 13 |
| Notes to Consolidated Financial Statements | 18 |
| Report of Independent Registered Public Accounting Firm | 28 |
| Liquidity Risk Management Program | 29 |
| Federal Tax Notice | 30 |
| U.S. Customer Privacy Notice | 31 |
| Director 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 Morgan Stanley Institutional Fund, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279223_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**International Advantage Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| International Advantage Portfolio Class I | $1000.00 | $1023.20 | $1020.16 | $5.10 | $5.09 | 1.00% |
| International Advantage Portfolio Class A | 1000.00 | 1021.60 | 1018.60 | 6.68 | 6.67 | 1.31 |
| International Advantage Portfolio Class L | 1000.00 | 1019.30 | 1015.88 | 9.42 | 9.40 | 1.85 |
| International Advantage Portfolio Class C | 1000.00 | 1018.50 | 1014.92 | 10.38 | 10.36 | 2.04 |
| International Advantage Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1023.60 | 1020.62 | 4.64 | 4.63 | 0.91 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**International Advantage Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –34.46%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World ex USA Net Index (the "Index"), which returned –16.00%.

**Factors Affecting Performance**

• International equities declined during the 12-month period ended December 31, 2022. The move was a result of macroeconomic and geopolitical uncertainty. Central banks, including the U.S. Federal Reserve, raised interest rates in response to elevated inflation. Geopolitical risk also continued to weigh on markets as Russian military operations in Ukraine entered their eleventh month as of December 2022.

• Our team remained focused on assessing company prospects over a longer-term period of five to ten years, and owning a portfolio of high quality companies with diverse business drivers not tied to a particular market environment.

• The team manages concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. Our longer-term focus results in lower turnover than many of our peers. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process. For the 12-month period, the Fund underperformed the Index due to unfavorable stock selection and sector allocation.

• The Fund's relative underperformance was primarily driven by stock selection in the information technology, consumer discretionary and consumer staples sectors.

• Positively contributing to relative performance was a sector underweight position in communication services, a sector overweight position in consumer staples, as well as stock selection in materials.

**Management Strategies**

• There were no changes to our bottom-up investment process during the period. The Fund

seeks long-term capital appreciation by investing primarily in international high quality established companies that the investment team believes are undervalued at the time of purchase. To achieve its objective, the investment team typically favors companies it believes have sustainable competitive advantages that can be monetized through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG).

• At the close of the period ended December 31, 2022, consumer discretionary represented the largest sector weight in the Fund, followed by information technology and financials. Our bottom-up investment process resulted in sector overweight positions in consumer discretionary, information technology, consumer staples and industrials, and underweight positions in utilities, communication services, materials, financials, health care, real estate and energy. The Fund had no energy and real estate holdings at the end of the reporting period.

![](j23279223_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**International Advantage Portfolio**

**Performance Compared to the MSCI All Country World ex USA Net Index** **<sup>(1)</sup>** **and the Lipper International Multi-Cap Growth Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(7)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –34.46% | 3.90% | 8.63% | 8.74% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –34.66 | 3.59 | 8.29 | 8.42 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –38.10 | 2.47 | 7.71 | 7.94 |
| Fund — Class L Shares <br>w/o sales charges<sup>(4)</sup> | –35.00 | 3.02 | 7.72 | 7.85 |
| Fund — Class C Shares <br>w/o sales charges<sup>(5)</sup> | –35.11 | 2.85 |  | 6.54 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(5)</sup> | –35.72 | 2.85 |  | 6.54 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(6)</sup> | –34.40 |  |  | 1.83 |
| MSCI All Country World ex USA <br>Net Index | –16.00 | 0.88 | 3.80 | 3.32 |
| Lipper International Multi-Cap <br>Growth Funds Index | –23.20 | 0.48 | 3.97 | 3.58 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country World ex USA Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets, excluding the United States. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper International Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper International Multi-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper International Multi-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on December 28, 2010.

<sup>(5)</sup> Commenced offering on April 30, 2015.

<sup>(6)</sup> Commenced offering on June 15, 2018. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(7)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**International Advantage Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.0%)** | **Common Stocks (98.0%)** | **Common Stocks (98.0%)** |
| Canada (11.4%) | Canada (11.4%) | Canada (11.4%) |
| Brookfield Asset Management Ltd., Class A (a) | 748588 | $21462 |
| Brookfield Corp. | 2905063 | 91393 |
| Brookfield Infrastructure Partners LP | 3160248 | 97936 |
| Canada Goose Holdings, Inc. (See Note G) (a)(b) | 4337890 | 77258 |
| Shopify, Inc., Class A (a) | 1296651 | 45007 |
|  |  | 333056 |
| China (2.3%) | China (2.3%) | China (2.3%) |
| Foshan Haitian Flavouring & Food Co., Ltd., <br>Class A | 5866229 | 67017 |
| Denmark (11.8%) | Denmark (11.8%) | Denmark (11.8%) |
| Chr Hansen Holding AS | 1206045 | 86754 |
| DSV AS | 1629002 | 257606 |
|  |  | 344360 |
| France (8.5%) | France (8.5%) | France (8.5%) |
| Hermes International | 120209 | 186066 |
| Pernod Ricard SA | 316426 | 62248 |
|  |  | 248314 |
| Germany (6.9%) | Germany (6.9%) | Germany (6.9%) |
| Adidas AG | 844104 | 114398 |
| HelloFresh SE (a) | 1506082 | 32870 |
| Puma SE | 886710 | 53596 |
|  |  | 200864 |
| Hong Kong (3.0%) | Hong Kong (3.0%) | Hong Kong (3.0%) |
| AIA Group Ltd. | 7840100 | 86581 |
| India (7.9%) | India (7.9%) | India (7.9%) |
| HDFC Bank Ltd. | 11773046 | 230911 |
| Italy (9.1%) | Italy (9.1%) | Italy (9.1%) |
| Davide Campari-Milano NV | 8790920 | 89248 |
| Moncler SpA | 3304858 | 175610 |
|  |  | 264858 |
| Japan (5.2%) | Japan (5.2%) | Japan (5.2%) |
| Change, Inc. (a) | 1089900 | 17871 |
| Keyence Corp. | 347600 | 134954 |
|  |  | 152825 |
| Netherlands (7.7%) | Netherlands (7.7%) | Netherlands (7.7%) |
| Adyen NV (a) | 52277 | 72573 |
| ASML Holding NV | 278524 | 151866 |
|  |  | 224439 |
| Norway (0.7%) | Norway (0.7%) | Norway (0.7%) |
| AutoStore Holdings Ltd. (a) | 11791693 | 21533 |
| Singapore (1.5%) | Singapore (1.5%) | Singapore (1.5%) |
| Grab Holdings Ltd., Class A (a) | 13836041 | 44552 |
| Sweden (2.7%) | Sweden (2.7%) | Sweden (2.7%) |
| Evolution AB | 586809 | 57158 |
| Vitrolife AB | 1308735 | 23414 |
|  |  | 80572 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Switzerland (6.8%) | Switzerland (6.8%) | Switzerland (6.8%) |
| Chocoladefabriken Lindt & Spruengli AG <br>(Registered) | 393 | $40433 |
| Kuehne & Nagel International AG (Registered) | 326937 | 76007 |
| Straumann Holding AG (Registered) | 712671 | 81723 |
|  |  | 198163 |
| Taiwan (4.4%) | Taiwan (4.4%) | Taiwan (4.4%) |
| Taiwan Semiconductor Manufacturing Co., <br>Ltd. ADR | 1721358 | 128224 |
| United Kingdom (4.7%) | United Kingdom (4.7%) | United Kingdom (4.7%) |
| Diageo PLC | 1421854 | 62237 |
| Rightmove PLC | 12017192 | 74344 |
|  |  | 136581 |
| United States (3.4%) | United States (3.4%) | United States (3.4%) |
| MercadoLibre, Inc. (a) | 117446 | 99387 |
| **Total Common Stocks (Cost $2,810,330)** | **Total Common Stocks (Cost $2,810,330)** | 2862237 |
| **Short-Term Investments (1.0%)** | **Short-Term Investments (1.0%)** | **Short-Term Investments (1.0%)** |
| Securities held as Collateral on Loaned Securities (0.1%) | Securities held as Collateral on Loaned Securities (0.1%) | Securities held as Collateral on Loaned Securities (0.1%) |
| Investment Company (0.1%) | Investment Company (0.1%) | Investment Company (0.1%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 1354289 | 1354 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.0%) (c) | Repurchase Agreements (0.0%) (c) | Repurchase Agreements (0.0%) (c) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $126; fully collateralized by <br>a U.S. Government obligation; 4.38% <br>due 5/15/41; valued at $128) | $126 | 126 |
| Merrill Lynch & Co., Inc., (4.25%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $126; fully collateralized by <br>a U.S. Government obligation; 1.50% <br>due 2/15/25; valued at $128) | 126 | 126 |
|  |  | 252 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $1,606)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $1,606)** | 1606 |
|  | **Shares** |  |
| Investment Company (0.9%) | Investment Company (0.9%) | Investment Company (0.9%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $27,237)** | 27237282 | 27237 |
| **Total Short-Term Investments (Cost $28,843)** | **Total Short-Term Investments (Cost $28,843)** | 28843 |
| **Total Investments (99.0%) (Cost $2,839,173) <br>Including $1,589 of Securities Loaned (d)(e)** | **Total Investments (99.0%) (Cost $2,839,173) <br>Including $1,589 of Securities Loaned (d)(e)** | 2891080 |
| Other Assets in Excess of Liabilities (1.0%) | Other Assets in Excess of Liabilities (1.0%) | 29682 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $2920762 |

---

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

The accompanying notes are an integral part of the consolidated financial statements.<br>6

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**International Advantage Portfolio**

(a) Non-income producing security.

(b) All or a portion of this security was on loan at December 31, 2022.

(c) Amount is less than 0.05%.

(d) The approximate fair value and percentage of net assets, $2,257,018,000 and 77.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(e) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $2,868,318,000. The aggregate gross unrealized appreciation is approximately $596,720,000 and the aggregate gross unrealized depreciation is approximately $580,774,000, resulting in net unrealized appreciation of approximately $15,946,000.

ADR American Depositary Receipt.

**Portfolio Composition\***

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| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Other\*\* | 45.0% |
| Textiles, Apparel & Luxury Goods | 21.0 |
| Semiconductors & Semiconductor Equipment | 9.7 |
| Air Freight & Logistics | 8.9 |
| Banks | 8.0 |
| Beverages | 7.4 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

The accompanying notes are an integral part of the consolidated financial statements.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Advantage Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $2,699,391) | $2785231 |
| Investment in Security of Affiliated Issuer, at Value (Cost $139,782) | 105849 |
| Total Investments in Securities, at Value (Cost $2,839,173) | 2891080 |
| Foreign Currency, at Value (Cost $10) | 10 |
| Cash | 1589 |
| Receivable for Investments Sold | 36815 |
| Receivable for Fund Shares Sold | 9867 |
| Tax Reclaim Receivable | 3422 |
| Dividends Receivable | 634 |
| Receivable from Affiliate | 103 |
| Receivable from Securities Lending Income | 1 |
| Other Assets | 230 |
| **Total Assets** | 2943751 |
| **Liabilities:** | **Liabilities:** |
| Payable for Fund Shares Redeemed | 7174 |
| Deferred Capital Gain Country Tax | 6746 |
| Payable for Advisory Fees | 5750 |
| Collateral on Securities Loaned, at Value | 1606 |
| Payable for Sub Transfer Agency Fees — Class I | 742 |
| Payable for Sub Transfer Agency Fees — Class A | 149 |
| Payable for Sub Transfer Agency Fees — Class L |  |
| Payable for Sub Transfer Agency Fees — Class C | 10 |
| Payable for Administration Fees | 208 |
| Payable for Custodian Fees | 185 |
| Payable for Shareholder Services Fees — Class A | 88 |
| Payable for Distribution and Shareholder Services Fees — Class L |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 20 |
| Payable for Professional Fees | 49 |
| Payable for Transfer Agency Fees — Class I | 28 |
| Payable for Transfer Agency Fees — Class A | 2 |
| Payable for Transfer Agency Fees — Class L |  |
| Payable for Transfer Agency Fees — Class C | 1 |
| Payable for Transfer Agency Fees — Class R6\* | 1 |
| Payable for Investments Purchased | 27 |
| Other Liabilities | 203 |
| **Total Liabilities** | 22989 |
| **Net Assets** | $2920762 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $3339130 |
| Total Accumulated Loss | (418368 |
| **Net Assets** | $2920762 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Advantage Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $2390415 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 125786658 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.00 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $388125 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 20930894 |
| **Net Asset Value, Redemption Price Per Share** | $18.54 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $1.03 |
| **Maximum Offering Price Per Share** | $19.57 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $403 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 22855 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $17.64 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $21455 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1238131 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $17.33 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $120364 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 6309879 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.08 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $1589 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Advantage Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $5,678 of Foreign Taxes Withheld) | $41673 |
| Dividends from Security of Affiliated Issuer (Note G) | 812 |
| Income from Securities Loaned — Net | 80 |
| Total Investment Income | 42565 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 32539 |
| Sub Transfer Agency Fees — Class I | 4046 |
| Sub Transfer Agency Fees — Class A | 878 |
| Sub Transfer Agency Fees — Class L |  |
| Sub Transfer Agency Fees — Class C | 32 |
| Administration Fees (Note C) | 3417 |
| Shareholder Services Fees — Class A (Note D) | 1384 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 2 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 291 |
| Custodian Fees (Note F) | 742 |
| Registration Fees | 458 |
| Shareholder Reporting Fees | 444 |
| Professional Fees | 187 |
| Transfer Agency Fees — Class I (Note E) | 131 |
| Transfer Agency Fees — Class A (Note E) | 8 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 4 |
| Transfer Agency Fees — Class R6\*(Note E) | 7 |
| Directors' Fees and Expenses | 62 |
| Pricing Fees | 3 |
| Other Expenses | 133 |
| Total Expenses | 44770 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (255 |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (187 |
| Net Expenses | 44326 |
| **Net Investment Loss** | (1761 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold (Net of $2,360 of Capital Gain Country Tax) | (483331 |
| Investments in Affiliate | (22774 |
| Foreign Currency Translation | (1171 |
| Net Realized Loss | (507276 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Increase in Deferred Capital Gain Country Tax of $0) | (1725718 |
| Investments in Affiliates | (81819 |
| Foreign Currency Translation | (101 |
| Net Change in Unrealized Appreciation (Depreciation) | (1807638 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (2314914 |
| Net Decrease in Net Assets Resulting from Operations | $(2316675 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Advantage Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(1761) | $(17892 |
| Net Realized Gain (Loss) | (507276) | 170866 |
| Net Change in Unrealized Appreciation (Depreciation) | (1807638) | 496591 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (2316675) | 649565 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (106371) | (52085 |
| **Class A** | (18096) | (7650 |
| **Class L** | (19) | (3 |
| **Class C** | (1097) | (447 |
| **Class R6\*** | (5293) | (2652 |
| Total Dividends and Distributions to Shareholders | (130876) | (62837 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 1559230 | 1810800 |
| Distributions Reinvested | 101013 | 47135 |
| Redeemed | (2650303) | (770937 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 663938 | 257294 |
| Distributions Reinvested | 18093 | 7650 |
| Redeemed | (772431) | (150608 |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 221 |  |
| Distributions Reinvested | 19 | 3 |
| Redeemed | (20) | (118 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 2926 | 18942 |
| Distributions Reinvested | 1087 | 444 |
| Redeemed | (8977) | (4422 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 71870 | 166066 |
| Distributions Reinvested | 3476 | 2089 |
| Redeemed | (135096) | (11705 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (1144954) | 1372633 |
| Redemption Fees | 9 |  |
| Total Increase (Decrease) in Net Assets | (3592496) | 1959361 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 6513258 | 4553897 |
| End of Period | $2920762 | $6513258 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Advantage Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 68230 | 61556 |
| Shares Issued on Distributions Reinvested | 5283 | 1614 |
| Shares Redeemed | (126582) | (26337 |
| Net Increase (Decrease) in Class I Shares Outstanding | (53069) | 36833 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 32799 | 8994 |
| Shares Issued on Distributions Reinvested | 970 | 267 |
| Shares Redeemed | (38999) | (5272 |
| Net Increase (Decrease) in Class A Shares Outstanding | (5230) | 3989 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 13 |  |
| Shares Issued on Distributions Reinvested | 1 |  |
| Shares Redeemed | (1) | (4 |
| Net Increase (Decrease) in Class L Shares Outstanding | 13 | (4 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 132 | 689 |
| Shares Issued on Distributions Reinvested | 62 | 16 |
| Shares Redeemed | (487) | (160 |
| Net Increase (Decrease) in Class C Shares Outstanding | (293) | 545 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 2832 | 5710 |
| Shares Issued on Distributions Reinvested | 181 | 71 |
| Shares Redeemed | (5708) | (401 |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (2695) | 5380 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $30.30 | $27.05 | $20.45 | $15.74 | $16.89 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | 0.00<br><sup>(3)</sup> | (0.08) | (0.07) | 0.06 | 0.04 |
| Net Realized and Unrealized Gain (Loss) | (10.43) | 3.63 | 6.68 | 4.67 | (0.91) |
| Total from Investment Operations | (10.43) | 3.55 | 6.61 | 4.73 | (0.87) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.00)<sup>(3)</sup> |  |
| Net Realized Gain | (0.87) | (0.30) |  | (0.02) | (0.28) |
| Total Distributions | (0.87) | (0.30) | (0.01) | (0.02) | (0.28) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |  | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $19.00 | $30.30 | $27.05 | $20.45 | $15.74 |
| **Total Return<sup>(4)</sup>** | (34.46)% | 13.16% | 32.33% | 30.09% | (5.19)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $2390415 | $5419831 | $3841122 | $1900219 | $569408 |
| Ratio of Expenses Before Expense Limitation | 1.01% | 0.97% | N/A | 1.03% | 1.11% |
| Ratio of Expenses After Expense Limitation | 1.01%<sup>(5)</sup> | 0.97%<sup>(5)</sup> | 0.98%<sup>(5)</sup> | 0.98%<sup>(5)</sup> | 0.98%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 0.98%<sup>(5)</sup> | N/A | N/A |
| Ratio of Net Investment Income (Loss) | 0.00%<sup>(6)</sup> | (0.28)%<sup>(5)</sup> | (0.31)%<sup>(5)</sup> | 0.32%<sup>(5)</sup> | 0.21%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.02% | 0.02% |
| Portfolio Turnover Rate | 19% | 22% | 18% | 15% | 29% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $29.69 | $26.58 | $20.16 | $15.56 | $16.75 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | (0.06) | (0.17) | (0.13) | 0.01 | (0.02) |
| Net Realized and Unrealized Gain (Loss) | (10.22) | 3.58 | 6.56 | 4.61 | (0.89) |
| Total from Investment Operations | (10.28) | 3.41 | 6.43 | 4.62 | (0.91) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) |  |  |
| Net Realized Gain | (0.87) | (0.30) |  | (0.02) | (0.28) |
| Total Distributions | (0.87) | (0.30) | (0.01) | (0.02) | (0.28) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |  | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $18.54 | $29.69 | $26.58 | $20.16 | $15.56 |
| **Total Return<sup>(4)</sup>** | (34.66)% | 12.87% | 31.90% | 29.72% | (5.48)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $388125 | $776662 | $589317 | $379237 | $202732 |
| Ratio of Expenses Before Expense Limitation | 1.30% | 1.26% | N/A | 1.30% | 1.37% |
| Ratio of Expenses After Expense Limitation | 1.30%<sup>(5)</sup> | 1.26%<sup>(5)</sup> | 1.27%<sup>(5)</sup> | 1.28%<sup>(5)</sup> | 1.33%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.27%<sup>(5)</sup> | N/A | N/A |
| Ratio of Net Investment Income (Loss) | (0.27)%<sup>(5)</sup> | (0.57)%<sup>(5)</sup> | (0.60)%<sup>(5)</sup> | 0.04%<sup>(5)</sup> | (0.10)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.02% | 0.02% |
| Portfolio Turnover Rate | 19% | 22% | 18% | 15% | 29% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $28.46 | $25.64 | $19.56 | $15.18 | $16.43 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.18) | (0.32) | (0.24) | (0.09) | (0.09) |
| Net Realized and Unrealized Gain (Loss) | (9.77) | 3.44 | 6.33 | 4.49 | (0.88) |
| Total from Investment Operations | (9.95) | 3.12 | 6.09 | 4.40 | (0.97) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) |  |  |
| Net Realized Gain | (0.87) | (0.30) |  | (0.02) | (0.28) |
| Total Distributions | (0.87) | (0.30) | (0.01) | (0.02) | (0.28) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |  | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $17.64 | $28.46 | $25.64 | $19.56 | $15.18 |
| **Total Return<sup>(4)</sup>** | (35.00)% | 12.21% | 31.14% | 29.01% | (5.95)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $403 | $279 | $350 | $226 | $161 |
| Ratio of Expenses Before Expense Limitation | 2.55% | 2.29% | 2.48% | 2.59% | 2.82% |
| Ratio of Expenses After Expense Limitation | 1.85%<sup>(5)</sup> | 1.85%<sup>(5)</sup> | 1.84%<sup>(5)</sup> | 1.83%<sup>(5)</sup> | 1.83%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.84%<sup>(5)</sup> | N/A | N/A |
| Ratio of Net Investment Loss | (0.93)%<sup>(5)</sup> | (1.16)%<sup>(5)</sup> | (1.17)%<sup>(5)</sup> | (0.48)%<sup>(5)</sup> | (0.55)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.02% | 0.02% |
| Portfolio Turnover Rate | 19% | 22% | 18% | 15% | 29% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $28.03 | $25.29 | $19.31 | $15.02 | $16.30 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.20) | (0.35) | (0.26) | (0.12) | (0.15) |
| Net Realized and Unrealized Gain (Loss) | (9.63) | 3.39 | 6.25 | 4.43 | (0.85) |
| Total from Investment Operations | (9.83) | 3.04 | 5.99 | 4.31 | (1.00) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) |  |  |
| Net Realized Gain | (0.87) | (0.30) |  | (0.02) | (0.28) |
| Total Distributions | (0.87) | (0.30) | (0.01) | (0.02) | (0.28) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |  | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $17.33 | $28.03 | $25.29 | $19.31 | $15.02 |
| **Total Return<sup>(4)</sup>** | (35.11)% | 12.06% | 31.03% | 28.72% | (6.18)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $21455 | $42922 | $24926 | $18180 | $11087 |
| Ratio of Expenses Before Expense Limitation | 2.01% | 1.96% | N/A | 2.03% | 2.10% |
| Ratio of Expenses After Expense Limitation | 2.01%<sup>(5)</sup> | 1.96%<sup>(5)</sup> | 1.97%<sup>(5)</sup> | 2.01%<sup>(5)</sup> | 2.07%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 1.97%<sup>(5)</sup> | N/A | N/A |
| Ratio of Net Investment Loss | (1.02)%<sup>(5)</sup> | (1.27)%<sup>(5)</sup> | (1.29)%<sup>(5)</sup> | (0.69)%<sup>(5)</sup> | (0.88)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.02% | 0.02% |
| Portfolio Turnover Rate | 19% | 22% | 18% | 15% | 29% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Advantage Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **Period from<br>June 15, 2018<sup>(3)</sup> to**<br>**December 31, 2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $30.38 | $27.09 | $20.46 | $15.75 | $18.90 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(4)</sup> |  | (0.06) | (0.06) | 0.05 | (0.00)<sup>(5)</sup> |
| Net Realized and Unrealized Gain (Loss) | (10.43) | 3.65 | 6.70 | 4.69 | (2.87) |
| Total from Investment Operations | (10.43) | 3.59 | 6.64 | 4.74 | (2.87) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.01) |  |
| Net Realized Gain | (0.87) | (0.30) |  | (0.02) | (0.28) |
| Total Distributions | (0.87) | (0.30) | (0.01) | (0.03) | (0.28) |
| **Redemption Fees** | 0.00<br><sup>(5)</sup> | 0.00<br><sup>(5)</sup> |  | 0.00<br><sup>(5)</sup> | 0.00<br><sup>(5)</sup> |
| **Net Asset Value, End of Period** | $19.08 | $30.38 | $27.09 | $20.46 | $15.75 |
| **Total Return<sup>(6)</sup>** | (34.40)% | 13.29% | 32.46% | 30.14% | (15.22)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $120364 | $273564 | $98182 | $774 | $8 |
| Ratio of Expenses Before Expense Limitation | 0.89% | 0.87% | N/A | 3.28% | 19.51%<sup>(10)</sup> |
| Ratio of Expenses After Expense Limitation | 0.89%<sup>(7)</sup> | 0.87%<sup>(7)</sup> | 0.89%<sup>(7)</sup> | 0.93%<sup>(7)</sup> | 0.93%<sup>(7)(10)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | 0.89%<sup>(7)</sup> | N/A | N/A |
| Ratio of Net Investment Income (Loss) | 0.01%<sup>(7)</sup> | (0.19)%<sup>(7)</sup> | (0.26)%<sup>(7)</sup> | 0.24%<sup>(7)</sup> | (0.04)%<sup>(7)(10)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.01% | 0.02% | 0.02%<sup>(10)</sup> |
| Portfolio Turnover Rate | 19% | 22% | 18% | 15% | 29% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Offering.

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

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

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

(7) 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."

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the International Advantage Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, International Advantage Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022,

the Subsidiary represented 0% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

from one or more reputable brokers/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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a

pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Air Freight & <br>Logistics | $— | $257606 | $— | $257606 |
| Banks |  | 230911 |  | 230911 |
| Beverages |  | 213733 |  | 213733 |
| Biotechnology |  | 23414 |  | 23414 |
| Capital Markets | 112855 |  |  | 112855 |
| Chemicals |  | 86754 |  | 86754 |
| Electronic <br>Equipment, <br>Instruments & <br>Components |  | 134954 |  | 134954 |
| Food & Staples <br>Retailing |  | 32870 |  | 32870 |
| Food Products |  | 107450 |  | 107450 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Health Care <br>Equipment & <br>Supplies | $— | $81723 | $— | $81723 |
| Hotels, <br>Restaurants & <br>Leisure |  | 57158 |  | 57158 |
| Information <br>Technology <br>Services | 45007 | 90444 |  | 135451 |
| Insurance |  | 86581 |  | 86581 |
| Interactive Media & <br>Services |  | 74344 |  | 74344 |
| Internet & Direct <br>Marketing Retail | 99387 |  |  | 99387 |
| Machinery |  | 21533 |  | 21533 |
| Marine |  | 76007 |  | 76007 |
| Multi-Utilities | 97936 |  |  | 97936 |
| Road & Rail | 44552 |  |  | 44552 |
| Semiconductors & <br>Semiconductor <br>Equipment | 128224 | 151866 |  | 280090 |
| Textiles, Apparel & <br>Luxury Goods | 77258 | 529670 |  | 606928 |
| **Total Common <br>Stocks** | **605219** | **2257018** | **—** | **2862237** |
| **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** | **Short-Term <br>Investments** |
| Investment <br>Company | 28591 |  |  | 28591 |
| Repurchase <br>Agreements |  | 252 |  | 252 |
| **Total Short-Term <br>Investments** | **28591** | **252** | **—** | **28843** |
| **Total Assets** | $**633810** | $**2257270** | $**—** | $**2891080** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 of foreign currencies, currency gains (losses) realized be-

tween 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 U.S. 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.

**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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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.

As of December 31, 2022, the Fund did not have any outstanding purchased options.

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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

contract for the year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(5869)(a) |

---

(a) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $4686<br> (b) |

---

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 519,931,000 |

---

**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 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 Consolidated 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented <br>in the <br>Consolidated <br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $1589<br> (c) | $— | $(1589)(d)(e) | $0 |

---

(c) Represents market value of loaned securities at year end.

(d) The Fund received cash collateral of approximately $1,606,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments.

(e) 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 borrowings.

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 December 31, 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 &<br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stock | $1606 | $— | $— | $— | $1606 |
| **Total Borrowings** | $**1606** | $**—** | $**—** | $**—** | $**1606** |
| **Gross amount of<br>recognized liabilities<br>for securities lending<br>transactions** |  |  |  |  | $**1606** |

---

**7. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown.

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.76% 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 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.95% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $257,000 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 Directors. 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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement.

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases

and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $780,672,000 and $1,612,186,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $187,000 relating to the Fund's investment in the Liquidity Funds.

The Fund may invest in affiliated entities, deemed to be affiliates as a result of the Fund owning five percent or more of the entity's voting securities.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company/Issuer** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $482779 | $1122135 | $1576323 | $812 |
| Canada Goose <br>Holdings, Inc. | 177505 | 36738 | 32392 |  |
| Total | $660284 | $1158873 | $1608715 | $812 |

---

---

| | | | |
|:---|:---|:---|:---|
| **<br>Affiliated <br>Investment<br>Company/Issuer (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in <br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $28591 |
| Canada Goose <br>Holdings, Inc. | (22774) | (81819) | 77258 |
|  | $(22774) | $(81819) | $105849 |

---

During the year ended December 31, 2022, the Fund incurred approximately $9,000 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Advisers 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

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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 December 31, 2022 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 2022 and 2021 was as follows:

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| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $130876 | $— | $62837 |

---

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 a net operating loss and tax adjustments related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated <br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $63986 | $(63986) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $57,772,000 and $376,447,000, 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 Company 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 for any funds drawn will be based on the federal

------

**Morgan Stanley Institutional Fund, Inc.** 

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 49.2%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrency indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply

chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>International Advantage Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of International Advantage Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279223_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated and paid approximately $130,876,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $5,677,000 as taxable at this lower rate.

The Fund intends to pass through foreign tax credits of approximately $5,677,000 and has derived net income from sources within foreign countries amounting to approximately $47,384,000.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

---

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Company<br>23 Church Street<br>16-01 Capital Square, Singapore 049481

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279223_za006.jpg)

IFIIAANN<br>5452863 EXP 02.29.24

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![](j23279224_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

International Equity Portfolio

Annual Report

December 31, 2022

![](j23279224_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 10 |
| Statement of Operations | 12 |
| Statements of Changes in Net Assets | 13 |
| Financial Highlights | 15 |
| Notes to Financial Statements | 20 |
| Report of Independent Registered Public Accounting Firm | 27 |
| Liquidity Risk Management Program | 28 |
| Federal Tax Notice | 29 |
| U.S. Customer Privacy Notice | 30 |
| Director and Officer Information | 33 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279224_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**International Equity Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| International Equity Portfolio Class I | $1000.00 | $1038.30 | $1020.42 | $4.88 | $4.84 | 0.95% |
| International Equity Portfolio Class A | 1000.00 | 1037.50 | 1019.06 | 6.27 | 6.21 | 1.22 |
| International Equity Portfolio Class L | 1000.00 | 1035.10 | 1016.13 | 9.23 | 9.15 | 1.80 |
| International Equity Portfolio Class C | 1000.00 | 1033.10 | 1014.87 | 10.51 | 10.41 | 2.05 |
| International Equity Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1038.90 | 1020.62 | 4.68 | 4.63 | 0.91 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**International Equity Portfolio**

The Fund seeks long-term capital appreciation by investing primarily in equity securities of non-U.S. issuers.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –14.18%, net of fees. The Fund's Class I shares outperformed the Fund's benchmark, the MSCI EAFE Index (the "Index"), which returned –14.45%.

**Factors Affecting Performance**

• Despite finishing flat for the month of December 2022, the Index managed a mighty fourth quarter return of +17.3% in U.S. dollars (USD). For 2022 overall, the Index returned –14.5% in USD. The quarter was skewed toward the cyclical sectors, with financials (+24%) and materials (+21%) leading the pack, followed by the year's standout performer, energy (+20%) — the only sector to finish the year in positive territory (up +28%). Health care (+14%) and consumer staples (+11%) lagged in the quarter, although both were mildly ahead of the overall Index for the year (–11% and –13% respectively). The growth-tilted information technology (+15%) and consumer discretionary (+18%) sectors, while closer to the overall Index in the fourth quarter, failed to recover losses from previous months and closed out 2022 down a hefty –32% and –22% respectively.

• Geographically, EAFE was well ahead of the U.S. in the fourth quarter of 2022 (+7%) and year (–20%). The fourth quarter saw euroland finish strong, with Italy (+26%), Germany (+25%) and France (+22%) all ahead of the Index, despite lagging the Index for the year. In Asia, Hong Kong (+18%) was roughly in line in the quarter, although significantly ahead for the year, while Japan (+13%) and Singapore (+10%) struggled. Elsewhere, Switzerland (+13%) was also weak, although the U.K. (+17%) held up well in the fourth quarter, and was among the top

performers in the year, returning –5%. (Country performance is shown in USD.)

• For 2022, the Fund's outperformance was driven by stock selection, largely thanks to the strength of financials, consumer staples and industrials stocks, which more than outweighed consumer discretionary and communication services weakness. Sector allocation was mildly negative given the drag from the underweight to the strongly performing energy sector and overweight to the lagging information technology sector. The benefits of the underweight to consumer discretionary and overweight to consumer staples were not enough to compensate.

**Management Strategies**

**The Multiple's Gone, Are Earnings Next?**

• At the start of 2022, we only had two worries about the equity market, but they were significant ones: the multiple and the earnings. In 2022, forward earnings held up reasonably well, up 4% for the MSCI World Index.<sup>(i)</sup> The 18% fall in the MSCI World Index has been entirely down to a sharp derating in public markets, with the MSCI World Index's forward earnings multiple falling from 19.3x to 15.0x — in contrast to private markets, which have protected investors from volatility by failing to mark prices down. This derating has been particularly concentrated in the more expensive, "growthier" companies, with communication services, consumer discretionary and information technology all falling over 30%. The combination of resilient earnings and this skewed derating have made 2022 a very unusual year, as quality has not provided the downside risk mitigation that it did in the previous down years of 2008, 2011, 2015 and 2018, with the MSCI World Quality Index down 22% for the year, 400 basis points (bps) behind the wider MSCI World Index. One surprising element of the year is that EAFE (–14.4%) has significantly

<sup>(i)</sup> Source for all earnings, earnings estimates and earnings multiples data used in this report: FactSet. Data as of December 2022. One basis point = 0.01%. The MSCI World Net Index is a free float adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. The MSCI World Quality Index measures the performance of quality growth stocks (based on high return on equity, stable year-over-year earnings growth and low financial leverage) in the MSCI World Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**International Equity Portfolio**

outperformed the U.S. (–19.9%), despite a major land war in Europe and the knock-on impacts on both short- and long-term access to energy in Europe. Part of this is the massive 31% discount that EAFE started the year on versus the U.S. (now down to a mere 28%), but EAFE has also managed to slightly "out-earn" the U.S., with forward earnings up 5%, versus the U.S. 3%, in the face of a stronger dollar.

• At the start of 2023, our two worries from 12 months ago have reduced to one and a bit. The fall in the MSCI World Index multiple to 15x, now only 5% above the 2003-19 average as against the 36% premium at the start of the year, suggests that the market is no longer clearly overvalued, though of course the multiple could fall below average levels if there is a major economic downturn. The MSCI EAFE Index multiple at 12.1x is actually below the historical average. It is earnings that remain the major concern. Inflation should help top-line growth, in nominal terms at least, but the margins do look stretched, with the MSCI EAFE Index forward EBIT (earnings before interest and taxes) margin at 14.5%, 100 bps above the previous pre-Financial Crisis peak, and over 250 bps ahead of the 2003-19 average. This is consistent with the world of excess demand we have been in, which has given all sorts of lower quality companies pricing power. Companies' earnings issues in this period have tended to be idiosyncratic, rather than due to overall demand issues. Many have come from either the direct impacts of COVID-19, for instance in messing up their supply chains, or from the post-pandemic hangover, with former "COVID heroes" — beneficiaries of the virtual world of the pandemic — having to adjust to the return toward an IRL (in real life) world.

• It is striking that bottom-up forward earnings estimates still look relatively healthy, despite what has been described in various forums as the most predicted recession in history, with 2023 MSCI EAFE Index earnings estimated to be 1% higher than 2022, despite the headwind from the strong dollar, and 28% above the pre-COVID 2019 level. Central banks, particularly in the U.S., are raising rates aggressively to deal with inflation by attempting to slow demand. There is discussion

about exactly how far they need to go, weighing up the balance between slowing goods inflation and continuing wage rises, as well as arcane discussion of the lags in the shelter element of the U.S. inflation calculation. We are in no position to take a view on these intricacies as mighty economists face off against each other. However, the basic fact remains that even in the case of a successful soft landing, the consensus economic outlook is for 2023 growth to roughly grind to a halt in most Western economies. The impacts of central bank actions are already being felt in the more interest rate sensitive areas, notably housing, and consumers are facing an ugly squeeze on real incomes thanks to inflation; but labor markets still remain tight, with U.S. unemployment still down at 3.5%,<sup>(ii)</sup> keeping upward pressure on wages — and on central bank action. Forward-looking indicators have turned down, but most of the economic pain, and thus earnings pain, is still to come.

• As the excess demand of 2021 and 2022 shifts towards excess supply in 2023, there is likely to be an earnings recession, as margins fall from current peaks. Once again, the market will discover which companies have resilient earnings in tough times. Our bet, as ever, is that pricing power and recurring revenue — two of the key criteria for inclusion as compounders in our portfolio — will once again show their worth, as they did in the 2008-09 Financial Crisis and in the first half of 2020 during the early days of the pandemic. Compounders, which we estimate to be 54% of the portfolio, should continue to compound. Given the likely fall in earnings of more cyclical companies, we are not yet making a major shift from compounders to value opportunities within the portfolio, except where earnings expectations have already dropped sharply, notably in semiconductors. In the meantime, owning a portfolio of resilient earnings at a reasonable multiple does seem a sensible approach in such uncertain times.

<sup>(ii)</sup> Source: Bureau of Labor Statistics. Data as of December 2022.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**International Equity Portfolio**

![](j23279224_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI EAFE Index<sup>(1)</sup> and the Lipper International Large-Cap Core Funds Index<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(9)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –14.18% | 0.66% | 3.70% | 7.38% |
| Fund — Class A Shares <br>w/o sales charges<sup>(5)</sup> | –14.37 | 0.40 | 3.40 | 6.28 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(5)</sup> | –18.87 | –0.67 | 2.84 | 6.07 |
| Fund — Class L Shares <br>w/o sales charges<sup>(6)</sup> | –14.86 | –0.15 | 2.85 | 4.20 |
| Fund — Class C Shares <br>w/o sales charges<sup>(8)</sup> | –15.12 | –0.44 |  | 0.81 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(8)</sup> | –15.91 | –0.44 |  | 0.81 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(7)</sup> | –14.14 | 0.70 |  | 2.76 |
| MSCI EAFE Net Index | –14.45 | 1.54 | 4.67 | 4.33 |
| Lipper International Large-Cap <br>Core Funds Index | –13.45 | 0.78 | 4.06 | 5.62 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the international equity market performance of developed markets, excluding the U.S. & Canada. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI EAFE Index currently consists of 21 developed market country indices. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**International Equity Portfolio**

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on August 4, 1989.

<sup>(5)</sup> Commenced offering on January 2, 1996.

<sup>(6)</sup> Commenced offering on June 14, 2012.

<sup>(7)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(8)</sup> Commenced offering on April 30, 2015.

<sup>(9)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**International Equity Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.5%)** | **Common Stocks (98.5%)** | **Common Stocks (98.5%)** |
| Australia (0.8%) | Australia (0.8%) | Australia (0.8%) |
| Aristocrat Leisure Ltd. | 512709 | $10565 |
| Belgium (1.5%) | Belgium (1.5%) | Belgium (1.5%) |
| KBC Group NV | 301889 | 19437 |
| Canada (5.8%) | Canada (5.8%) | Canada (5.8%) |
| Barrick Gold Corp. | 1711870 | 29344 |
| Constellation Software, Inc. | 22796 | 35591 |
| Tourmaline Oil Corp. | 229416 | 11576 |
|  |  | 76511 |
| China (1.0%) | China (1.0%) | China (1.0%) |
| Minth Group Ltd. (a) | 3230000 | 8718 |
| Tencent Holdings Ltd. (a) | 93900 | 3982 |
|  |  | 12700 |
| Denmark (2.8%) | Denmark (2.8%) | Denmark (2.8%) |
| Carlsberg AS Series B | 178995 | 23743 |
| Tryg AS | 538642 | 12801 |
|  |  | 36544 |
| Finland (1.5%) | Finland (1.5%) | Finland (1.5%) |
| Kone Oyj, Class B | 375340 | 19432 |
| France (17.1%) | France (17.1%) | France (17.1%) |
| AXA SA | 978778 | 27264 |
| L'Oreal SA | 36581 | 13100 |
| Legrand SA | 279945 | 22447 |
| LVMH Moet Hennessy Louis Vuitton SE | 40454 | 29438 |
| Pernod Ricard SA | 91653 | 18030 |
| Safran SA | 263907 | 33055 |
| Sanofi | 240813 | 23221 |
| Teleperformance | 72598 | 17356 |
| Thales SA | 168663 | 21550 |
| Worldline SA (b) | 539401 | 21124 |
|  |  | 226585 |
| Germany (14.2%) | Germany (14.2%) | Germany (14.2%) |
| Adidas AG | 103056 | 13967 |
| Deutsche Boerse AG | 119128 | 20513 |
| Deutsche Post AG (Registered) | 742027 | 27772 |
| Fresenius SE & Co., KGaA | 231324 | 6461 |
| Infineon Technologies AG | 597314 | 18153 |
| Knorr-Bremse AG | 283697 | 15434 |
| MTU Aero Engines AG | 134255 | 28883 |
| QIAGEN NV (b) | 284224 | 14288 |
| SAP SE | 406674 | 41985 |
|  |  | 187456 |
| Hong Kong (1.8%) | Hong Kong (1.8%) | Hong Kong (1.8%) |
| AIA Group Ltd. | 2170600 | 23971 |
| Italy (2.2%) | Italy (2.2%) | Italy (2.2%) |
| Moncler SpA | 542890 | 28847 |
| Japan (6.1%) | Japan (6.1%) | Japan (6.1%) |
| FANUC Corp. | 59000 | 8829 |
| Hoya Corp. | 176200 | 16876 |
| Keyence Corp. | 19100 | 7416 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| Kirin Holdings Co., Ltd. (c) | 1327800 | $| 20238 |
| Shiseido Co., Ltd. | 570400 |  | 27957 |
|  |  |  | 81316 |
| Korea, Republic of (3.4%) | Korea, Republic of (3.4%) | Korea, Republic of (3.4%) | Korea, Republic of (3.4%) |
| Samsung Electronics Co., Ltd. | 643434 |  | 28242 |
| SK Hynix, Inc. | 276661 |  | 16507 |
|  |  |  | 44749 |
| Netherlands (2.4%) | Netherlands (2.4%) | Netherlands (2.4%) | Netherlands (2.4%) |
| Heineken NV | 330634 |  | 31143 |
| Norway (0.4%) | Norway (0.4%) | Norway (0.4%) | Norway (0.4%) |
| Mowi ASA | 337060 |  | 5744 |
| Singapore (1.9%) | Singapore (1.9%) | Singapore (1.9%) | Singapore (1.9%) |
| DBS Group Holdings Ltd. | 969200 |  | 24532 |
| Sweden (5.2%) | Sweden (5.2%) | Sweden (5.2%) | Sweden (5.2%) |
| Atlas Copco AB, Class A | 1541964 |  | 18270 |
| Epiroc AB, Class A | 969764 |  | 17658 |
| Hexagon AB, Class B | 855112 |  | 8966 |
| Svenska Handelsbanken AB, Class A | 2432524 |  | 24491 |
|  |  |  | 69385 |
| Switzerland (5.5%) | Switzerland (5.5%) | Switzerland (5.5%) | Switzerland (5.5%) |
| Alcon, Inc. | 90844 |  | 6234 |
| Novartis AG (Registered) | 173974 |  | 15744 |
| Partners Group Holding AG | 10473 |  | 9274 |
| Roche Holding AG (Genusschein) | 67915 |  | 21341 |
| UBS Group AG (Registered) | 1111801 |  | 20664 |
|  |  |  | 73257 |
| Taiwan (2.2%) | Taiwan (2.2%) | Taiwan (2.2%) | Taiwan (2.2%) |
| Taiwan Semiconductor Manufacturing Co., <br>Ltd. ADR | 384125 |  | 28613 |
| United Kingdom (22.7%) | United Kingdom (22.7%) | United Kingdom (22.7%) | United Kingdom (22.7%) |
| Associated British Foods PLC | 1569916 |  | 29764 |
| AstraZeneca PLC | 187069 |  | 25314 |
| British American Tobacco PLC | 539897 |  | 21357 |
| Experian PLC | 339819 |  | 11509 |
| Halma PLC | 353765 |  | 8425 |
| Hiscox Ltd. | 1287338 |  | 16973 |
| Imperial Brands PLC | 843055 |  | 21002 |
| Legal & General Group PLC | 4219226 |  | 12650 |
| Prudential PLC | 2758216 |  | 37609 |
| Reckitt Benckiser Group PLC | 531350 |  | 36831 |
| RELX PLC (Euronext NV) | 521178 |  | 14437 |
| RELX PLC (LSE) | 471947 |  | 13048 |
| Shell PLC | 1305990 |  | 36817 |
| St. James's Place PLC | 1125540 |  | 14827 |
|  |  |  | 300563 |
| **Total Common Stocks (Cost $1,070,346)** | **Total Common Stocks (Cost $1,070,346)** |  | 1301350 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**International Equity Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Short-Term Investment (0.6%)** | **Short-Term Investment (0.6%)** | **Short-Term Investment (0.6%)** |
| Investment Company (0.6%) | Investment Company (0.6%) | Investment Company (0.6%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $8,572)** | 8572312 | $8572 |
| **Total Investments (99.1%) (Cost $1,078,918) <br>Including $7,914 of Securities Loaned (d)(e)** | **Total Investments (99.1%) (Cost $1,078,918) <br>Including $7,914 of Securities Loaned (d)(e)** | 1309922 |
| Other Assets in Excess of Liabilities (0.9%) | Other Assets in Excess of Liabilities (0.9%) | 12444 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $1322366 |

---

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

(a) Security trades on the Hong Kong exchange.

(b) Non-income producing security.

(c) All or a portion of this security was on loan at December 31, 2022.

(d) The approximate fair value and percentage of net assets, $1,196,226,000 and 90.5%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(e) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $1,106,084,000. The aggregate gross unrealized appreciation is approximately $269,965,000 and the aggregate gross unrealized depreciation is approximately $66,128,000, resulting in net unrealized appreciation of approximately $203,837,000.

ADR American Depositary Receipt.

Euronext NV Euronext Amsterdam Stock Market.

LSE London Stock Exchange.

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\*\* | 42.2% |
| Insurance | 10.0 |
| Beverages | 7.1 |
| Pharmaceuticals | 6.6 |
| Aerospace & Defense | 6.4 |
| Machinery | 6.1 |
| Software | 5.9 |
| Textiles, Apparel & Luxury Goods | 5.5 |
| Banks | 5.2 |
| Capital Markets | 5.0 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Equity Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $1,070,346) | $1301350 |  |
| Investment in Security of Affiliated Issuer, at Value (Cost $8,572) | 8572 |  |
| Total Investments in Securities, at Value (Cost $1,078,918) | 1309922 |  |
| Foreign Currency, at Value (Cost $1,538) | 1543 |  |
| Receivable for Investments Sold | 7483 |  |
| Tax Reclaim Receivable | 4963 |  |
| Dividends Receivable | 1719 |  |
| Receivable for Fund Shares Sold | 180 |  |
| Receivable from Affiliate | 52 |  |
| Receivable from Securities Lending Income | 20 |  |
| Other Assets | 155 |  |
| **Total Assets** | 1326037 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Advisory Fees | 2415 |  |
| Payable for Fund Shares Redeemed | 667 |  |
| Payable for Sub Transfer Agency Fees — Class I | 220 |  |
| Payable for Sub Transfer Agency Fees — Class L | 1 |  |
| Payable for Sub Transfer Agency Fees — Class C |  | @ |
| Payable for Administration Fees | 93 |  |
| Payable for Shareholder Services Fees — Class A | 75 |  |
| Payable for Distribution and Shareholder Services Fees — Class A | 3 |  |
| Payable for Distribution and Shareholder Services Fees — Class L | 2 |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 1 |  |
| Payable for Custodian Fees | 61 |  |
| Payable for Professional Fees | 11 |  |
| Payable for Transfer Agency Fees — Class I | 3 |  |
| Payable for Transfer Agency Fees — Class A | 2 |  |
| Payable for Transfer Agency Fees — Class L | 1 |  |
| Payable for Transfer Agency Fees — Class C |  | @ |
| Payable for Transfer Agency Fees — Class R6\* | 1 |  |
| Other Liabilities | 115 |  |
| **Total Liabilities** | 3671 |  |
| **Net Assets** | $1322366 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $1107608 |  |
| Total Distributable Earnings | 214758 |  |
| **Net Assets** | $1322366 |  |

---

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Equity Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $741596 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 61061970 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $12.14 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $330721 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 27387159 |
| **Net Asset Value, Redemption Price Per Share** | $12.08 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.67 |
| **Maximum Offering Price Per Share** | $12.75 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $3579 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 300566 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.91 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $1098 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 94376 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.63 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $245372 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 20222718 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $12.13 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $7914 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Equity Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $4,200 of Foreign Taxes Withheld) | $41688 |
| Dividends from Security of Affiliated Issuer (Note G) | 310 |
| Income from Securities Loaned — Net | 168 |
| Total Investment Income | 42166 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 13103 |
| Sub Transfer Agency Fees — Class I | 1209 |
| Sub Transfer Agency Fees — Class A | 116 |
| Sub Transfer Agency Fees — Class L | 3 |
| Sub Transfer Agency Fees — Class C | 1 |
| Administration Fees (Note C) | 1310 |
| Shareholder Services Fees — Class A (Note D) | 434 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 32 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 8 |
| Custodian Fees (Note F) | 237 |
| Professional Fees | 186 |
| Registration Fees | 95 |
| Shareholder Reporting Fees | 93 |
| Transfer Agency Fees — Class I (Note E) | 18 |
| Transfer Agency Fees — Class A (Note E) | 8 |
| Transfer Agency Fees — Class L (Note E) | 4 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 3 |
| Directors' Fees and Expenses | 26 |
| Pricing Fees | 5 |
| Other Expenses | 56 |
| Total Expenses | 16949 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (782) |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (1) |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2) |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (3) |
| Waiver of Advisory Fees (Note B) | (205) |
| Rebate from Morgan Stanley Affiliate (Note G) | (35) |
| Net Expenses | 15921 |
| **Net Investment Income** | 26245 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold | 47989 |
| Foreign Currency Translation | (36) |
| Net Realized Gain | 47953 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (376308) |
| Foreign Currency Translation | (361) |
| Net Change in Unrealized Appreciation (Depreciation) | (376669) |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | (328716) |
| Net Decrease in Net Assets Resulting from Operations | $(302471) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Equity Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $26245 | $37670 |
| Net Realized Gain | 47953 | 181831 |
| Net Change in Unrealized Appreciation (Depreciation) | (376669) | (131589) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (302471) | 87912 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (53459) | (152453) |
| **Class A** | (24782) | (5746) |
| **Class L** | (236) | (485) |
| **Class C** | (41) | (85) |
| **Class R6\*** | (17483) | (44255) |
| Total Dividends and Distributions to Shareholders | (96001) | (203024) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 115376 | 115427 |
| Distributions Reinvested | 52242 | 148748 |
| Redeemed | (686551) | (304337) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 433632 | 9597 |
| Distributions Reinvested | 24701 | 5586 |
| Redeemed | (144154) | (13561) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 116 | 37 |
| Distributions Reinvested | 234 | 480 |
| Redeemed | (1120) | (338) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 639 | 293 |
| Distributions Reinvested | 41 | 85 |
| Redeemed | (317) | (166) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 18642 | 51194 |
| Distributions Reinvested | 16920 | 36257 |
| Redeemed | (159747) | (77257) |
| Net Decrease in Net Assets Resulting from Capital Share Transactions | (329346) | (27955) |
| Total Decrease in Net Assets | (727818) | (143067) |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 2050184 | 2193251 |
| End of Period | $1322366 | $2050184 |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Equity Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 8805 | 6892 |
| Shares Issued on Distributions Reinvested | 4321 | 10085 |
| Shares Redeemed | (52679) | (18714) |
| Net Decrease in Class I Shares Outstanding | (39553) | (1737) |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 33633 | 577 |
| Shares Issued on Distributions Reinvested | 2055 | 380 |
| Shares Redeemed | (12173) | (821) |
| Net Increase in Class A Shares Outstanding | 23515 | 136 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 9 | 3 |
| Shares Issued on Distributions Reinvested | 20 | 33 |
| Shares Redeemed | (90) | (21) |
| Net Increase (Decrease) in Class L Shares Outstanding | (61) | 15 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 53 | 18 |
| Shares Issued on Distributions Reinvested | 4 | 6 |
| Shares Redeemed | (26) | (10) |
| Net Increase in Class C Shares Outstanding | 31 | 14 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 1465 | 3071 |
| Shares Issued on Distributions Reinvested | 1401 | 2460 |
| Shares Redeemed | (12447) | (4636) |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (9581) | 895 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Equity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $15.22 | $16.20 | $14.74 | $13.49 | $17.97 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.23 | 0.29 | 0.18 | 0.28 | 0.31 |
| Net Realized and Unrealized Gain (Loss) | (2.40) | 0.34 | 1.50 | 2.47 | (2.78) |
| Total from Investment Operations | (2.17) | 0.63 | 1.68 | 2.75 | (2.47) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.13) | (0.33) | (0.22) | (0.32) | (0.39) |
| Net Realized Gain | (0.78) | (1.28) |  | (1.18) | (1.62) |
| Total Distributions | (0.91) | (1.61) | (0.22) | (1.50) | (2.01) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $12.14 | $15.22 | $16.20 | $14.74 | $13.49 |
| **Total Return<sup>(3)</sup>** | (14.18)% | 4.19% | 11.42% | 20.37% | (13.80)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $741596 | $1531709 | $1658464 | $1539709 | $1725392 |
| Ratio of Expenses Before Expense Limitation | 1.03% | 1.01% | 1.00% | 1.00% | 0.99% |
| Ratio of Expenses After Expense Limitation | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> | 0.95%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.95%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 1.76%<sup>(4)</sup> | 1.70%<sup>(4)</sup> | 1.28%<sup>(4)</sup> | 1.86%<sup>(4)</sup> | 1.82%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 36% | 20% | 20% | 20% | 34% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Equity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $15.17 | $16.15 | $14.67 | $13.42 | $17.75 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.06 | 0.25 | 0.11 | 0.24 | 0.32 |
| Net Realized and Unrealized Gain (Loss) | (2.25) | 0.36 | 1.50 | 2.46 | (2.82) |
| Total from Investment Operations | (2.19) | 0.61 | 1.61 | 2.70 | (2.50) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.12) | (0.31) | (0.13) | (0.27) | (0.21) |
| Net Realized Gain | (0.78) | (1.28) |  | (1.18) | (1.62) |
| Total Distributions | (0.90) | (1.59) | (0.13) | (1.45) | (1.83) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $12.08 | $15.17 | $16.15 | $14.67 | $13.42 |
| **Total Return<sup>(3)</sup>** | (14.37)% | 4.07% | 11.00% | 20.11% | (14.13)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $330721 | $58739 | $60346 | $212578 | $244622 |
| Ratio of Expenses Before Expense Limitation | 1.26% | 1.07% | 1.43% | 1.25% | 1.31% |
| Ratio of Expenses After Expense Limitation | 1.23%<sup>(4)</sup> | 1.07%<sup>(4)</sup> | 1.30%<sup>(4)</sup> | 1.25%<sup>(4)</sup> | 1.30%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 1.25%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 0.50%<sup>(4)</sup> | 1.57%<sup>(4)</sup> | 0.80%<sup>(4)</sup> | 1.62%<sup>(4)</sup> | 1.83%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 36% | 20% | 20% | 20% | 34% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Equity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $14.93 | $15.91 | $14.50 | $13.28 | $17.70 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.10 | 0.14 | 0.06 | 0.15 | 0.10 |
| Net Realized and Unrealized Gain (Loss) | (2.33) | 0.35 | 1.45 | 2.44 | (2.66) |
| Total from Investment Operations | (2.23) | 0.49 | 1.51 | 2.59 | (2.56) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.01) | (0.19) | (0.10) | (0.19) | (0.24) |
| Net Realized Gain | (0.78) | (1.28) |  | (1.18) | (1.62) |
| Total Distributions | (0.79) | (1.47) | (0.10) | (1.37) | (1.86) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $11.91 | $14.93 | $15.91 | $14.50 | $13.28 |
| **Total Return<sup>(3)</sup>** | (14.86)% | 3.34% | 10.40% | 19.48% | (14.49)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $3579 | $5394 | $5513 | $5888 | $6022 |
| Ratio of Expenses Before Expense Limitation | 1.85% | 1.79% | 1.83% | 1.79% | N/A |
| Ratio of Expenses After Expense Limitation | 1.80%<sup>(4)</sup> | 1.79%<sup>(4)</sup> | 1.80%<sup>(4)</sup> | 1.78%<sup>(4)</sup> | 1.72%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 1.78%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 0.77%<sup>(4)</sup> | 0.88%<sup>(4)</sup> | 0.41%<sup>(4)</sup> | 1.06%<sup>(4)</sup> | 1.17%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 36% | 20% | 20% | 20% | 34% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Equity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $14.63 | $15.64 | $14.26 | $13.08 | $17.51 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.06 | 0.09 | 0.02 | 0.10 | 0.05 |
| Net Realized and Unrealized Gain (Loss) | (2.28) | 0.34 | 1.43 | 2.41 | (2.64) |
| Total from Investment Operations | (2.22) | 0.43 | 1.45 | 2.51 | (2.59) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.16) | (0.07) | (0.15) | (0.22) |
| Net Realized Gain | (0.78) | (1.28) |  | (1.18) | (1.62) |
| Total Distributions | (0.78) | (1.44) | (0.07) | (1.33) | (1.84) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $11.63 | $14.63 | $15.64 | $14.26 | $13.08 |
| **Total Return<sup>(3)</sup>** | (15.12)% | 3.02% | 10.17% | 19.18% | (14.82)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1098 | $929 | $776 | $674 | $787 |
| Ratio of Expenses Before Expense Limitation | 2.28% | 2.33% | 2.41% | 2.35% | 2.27% |
| Ratio of Expenses After Expense Limitation | 2.05%<sup>(4)</sup> | 2.05%<sup>(4)</sup> | 2.05%<sup>(4)</sup> | 2.05%<sup>(4)</sup> | 2.05%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 2.05%<sup>(4)</sup> | N/A |
| Ratio of Net Investment Income | 0.48%<sup>(4)</sup> | 0.58%<sup>(4)</sup> | 0.15%<sup>(4)</sup> | 0.73%<sup>(4)</sup> | 0.83%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 36% | 20% | 20% | 20% | 34% |

---

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

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

(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%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Equity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $15.21 | $16.19 | $14.74 | $13.48 | $17.97 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.22 | 0.30 | 0.18 | 0.29 | 0.38 |
| Net Realized and Unrealized Gain (Loss) | (2.38) | 0.33 | 1.50 | 2.48 | (2.86) |
| Total from Investment Operations | (2.16) | 0.63 | 1.68 | 2.77 | (2.48) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.14) | (0.33) | (0.23) | (0.33) | (0.39) |
| Net Realized Gain | (0.78) | (1.28) |  | (1.18) | (1.62) |
| Total Distributions | (0.92) | (1.61) | (0.23) | (1.51) | (2.01) |
| **Redemption Fees** |  |  |  | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $12.13 | $15.21 | $16.19 | $14.74 | $13.48 |
| **Total Return<sup>(4)</sup>** | (14.14)% | 4.24% | 11.39% | 20.42% | (13.76)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $245372 | $453413 | $468152 | $456618 | $462752 |
| Ratio of Expenses Before Expense Limitation | 0.92% | 0.91% | 0.91% | 0.91% | N/A |
| Ratio of Expenses After Expense Limitation | 0.92%<sup>(5)</sup> | 0.91%<sup>(5)</sup> | 0.91%<sup>(5)</sup> | 0.91%<sup>(5)</sup> | 0.90%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | N/A | N/A | 0.91%<sup>(5)</sup> | N/A |
| Ratio of Net Investment Income | 1.67%<sup>(5)</sup> | 1.76%<sup>(5)</sup> | 1.31%<sup>(5)</sup> | 1.94%<sup>(5)</sup> | 2.19%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 36% | 20% | 20% | 20% | 34% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the International Equity Portfolio. The Fund seeks long-term capital appreciation by investing primarily in equity securities of non-U.S. issuers.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<br>Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $— | $83488 | $— | $83488 |
| Air Freight & Logistics |  | 27772 |  | 27772 |
| Auto Components |  | 8718 |  | 8718 |
| Banks |  | 68460 |  | 68460 |
| Beverages |  | 93154 |  | 93154 |
| Capital Markets |  | 65278 |  | 65278 |
| Electrical Equipment |  | 22447 |  | 22447 |
| Electronic Equipment, <br>Instruments & <br>Components |  | 24807 |  | 24807 |
| Food Products |  | 35508 |  | 35508 |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<br>Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Health Care <br>Equipment & <br>Supplies | $— | $23110 | $— | $23110 |
| Health Care <br>Providers & <br>Services |  | 6461 |  | 6461 |
| Hotels, Restaurants & <br>Leisure |  | 10565 |  | 10565 |
| Household Products |  | 36831 |  | 36831 |
| Information Technology <br>Services |  | 21124 |  | 21124 |
| Insurance |  | 131268 |  | 131268 |
| Interactive Media & <br>Services |  | 3982 |  | 3982 |
| Life Sciences Tools & <br>Services |  | 14288 |  | 14288 |
| Machinery |  | 79623 |  | 79623 |
| Metals & Mining | 29344 |  |  | 29344 |
| Oil, Gas & <br>Consumable Fuels | 11576 | 36817 |  | 48393 |
| Personal Products |  | 41057 |  | 41057 |
| Pharmaceuticals |  | 85620 |  | 85620 |
| Professional Services |  | 56350 |  | 56350 |
| Semiconductors & <br>Semiconductor <br>Equipment | 28613 | 34660 |  | 63273 |
| Software | 35591 | 41985 |  | 77576 |
| Tech Hardware, <br>Storage & <br>Peripherals |  | 28242 |  | 28242 |
| Textiles, Apparel & <br>Luxury Goods |  | 72252 |  | 72252 |
| Tobacco |  | 42359 |  | 42359 |
| **Total Common Stocks** | **105124** | **1196226** | **—** | **1301350** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 8572 |  |  | 8572 |
| **Total Assets** | $**113696** | $**1196226** | $**—** | $**1309922** |

---

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 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 U.S. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. 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 December 31, 2022:

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| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in <br>the Statement<br>of Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| $7914<br> (a) | $— | $(7914)(b)(c) | $0 |

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

(b) The Fund received non-cash collateral of approximately $8,376,000 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.

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

**5. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $3<br>billion** | **Over $3<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.79% of the Fund's average daily net assets.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 0.95% for Class I shares, 1.30% for Class A shares, 1.80% for Class L shares, 2.05% for Class C shares and 0.91% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $205,000 of advisory fees were waived and approximately $788,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $583,491,000 and $964,197,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $35,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value<br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds <br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $35759 | $438797 | $465984 | $310 |

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| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized Gain <br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $8572 |

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The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 December 31, 2022 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 2022 and 2021 was as follows:

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| | | | |
|:---|:---|:---|:---|
| **2022 <br>Distributions<br>Paid From:** | **2022 <br>Distributions<br>Paid From:** | **2021 <br>Distributions<br>Paid From:** | **2021 <br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $19173 | $76828 | $50803 | $152221 |

---

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 December 31, 2022.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $6019 | $5309 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 63.9%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of

COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>International Equity Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of International Equity Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279224_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year end December 31, 2022.

The Fund designated and paid approximately $76,828,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $23,282,000 as taxable at this lower rate.

The Fund intends to pass through foreign tax credits of approximately $4,110,000 and has derived net income from sources within foreign countries amounting to approximately $41,936,000.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Limited<br>25 Cabot Square, Canary Wharf<br>London, E14 4QA, England

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279224_za006.jpg)

IFIIEANN<br>5452866 EXP 02.29.24

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![](j23279225_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

International Opportunity Portfolio

Annual Report

December 31, 2022

![](j23279225_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 8 |
| Consolidated Statement of Operations | 10 |
| Consolidated Statements of Changes in Net Assets | 11 |
| Consolidated Financial Highlights | 13 |
| Notes to Consolidated Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 29 |
| Liquidity Risk Management Program | 30 |
| Federal Tax Notice | 31 |
| U.S. Customer Privacy Notice | 32 |
| Director and Officer Information | 35 |

---

***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

![](j23279225_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**International Opportunity Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 December 31, 2022 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) and redemption fees. 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| International Opportunity Portfolio Class I | $1000.00 | $1030.00 | $1020.16 | $5.12 | $5.09 | 1.00% |
| International Opportunity Portfolio Class A | 1000.00 | 1027.90 | 1018.40 | 6.90 | 6.87 | 1.35 |
| International Opportunity Portfolio Class L | 1000.00 | 1025.30 | 1015.88 | 9.44 | 9.40 | 1.85 |
| International Opportunity Portfolio Class C | 1000.00 | 1024.10 | 1014.72 | 10.61 | 10.56 | 2.08 |
| International Opportunity Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1030.40 | 1020.52 | 4.76 | 4.74 | 0.93 |
| International Opportunity Portfolio Class IR | 1000.00 | 1030.40 | 1020.52 | 4.76 | 4.74 | 0.93 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**International Opportunity Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –43.76%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World ex USA Net Index (the "Index"), which returned –16.00%.

**Factors Affecting Performance**

• International equities declined during the 12-month period ended December 31, 2022. The move was a result of macroeconomic and geopolitical uncertainty. Central banks, including the U.S. Federal Reserve, raised interest rates in response to elevated inflation. Geopolitical risk also continued to weigh on markets as Russian military operations in Ukraine entered their eleventh month as of December 2022.

• Our team remained focused on assessing company prospects over a longer-term period of five to ten years, and owning a portfolio of high quality companies with diverse business drivers not tied to a particular market environment.

• The team manages concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. Our longer-term focus results in lower turnover than many of our peers. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process. For the 12-month period, the Fund underperformed the Index due to unfavorable stock selection and sector allocation.

• The Fund's relative underperformance was primarily driven by stock selection in the consumer discretionary, information technology and communication services sectors.

• Positively contributing to relative performance were sector underweight positions in industrials and real estate.

**Management Strategies**

• There were no changes to our bottom-up investment process during the period. The Fund

seeks long-term capital appreciation by investing primarily in international high quality established and emerging companies that the investment team believes are undervalued at the time of purchase. To achieve its objective, the investment team typically favors companies it believes have sustainable competitive advantages that can be monetized through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG).

• At the close of the period ended December 31, 2022, consumer discretionary represented the largest sector weight in the Fund, followed by information technology and financials. Our bottom-up investment process resulted in sector overweight positions in consumer discretionary, information technology and communication services, and underweight positions in industrials, financials, consumer staples, health care, energy, materials, real estate and utilities. The Fund had no energy, materials, real estate and utilities holdings at the end of the reporting period.

![](j23279225_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**International Opportunity Portfolio**

**Performance Compared to the MSCI All Country World ex USA Net Index<sup>(1)</sup> and the Lipper International Multi-Cap Growth Funds Index<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(8)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –43.76% | –0.29% | 8.12% | 7.77% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –43.96 | –0.61 | 7.76 | 7.44 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –46.90 | –1.67 | 7.18 | 6.99 |
| Fund — Class L Shares <br>w/o sales charges<sup>(4)</sup> | –44.24 | –1.15 | 7.19 | 6.87 |
| Fund — Class C Shares <br>w/o sales charges<sup>(6)</sup> | –44.36 | –1.31 |  | 4.19 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(6)</sup> | –44.86 | –1.31 |  | 4.19 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(5)</sup> | –43.70 | –0.22 |  | 7.29 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(7)</sup> | –43.70 |  |  | –2.79 |
| MSCI All Country World <br>ex USA Net Index | –16.00 | 0.88 | 3.80 | 3.76 |
| Lipper International Multi-Cap <br>Growth Funds Index | –23.20 | 0.48 | 3.97 | 4.19 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI All Country World ex USA Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets, excluding the United States. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to nonresident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper International Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper International Multi-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper International Multi-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on March 31, 2010.

<sup>(5)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(6)</sup> Commenced offering on April 30, 2015.

<sup>(7)</sup> Commenced offering on June 15, 2018.

<sup>(8)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**International Opportunity Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.6%)** | **Common Stocks (98.6%)** | **Common Stocks (98.6%)** |
| Argentina (2.6%) | Argentina (2.6%) | Argentina (2.6%) |
| Globant SA (a) | 183330 | $30829 |
| Brazil (1.3%) | Brazil (1.3%) | Brazil (1.3%) |
| NU Holdings Ltd., Class A (a) | 3778770 | 15379 |
| Canada (5.2%) | Canada (5.2%) | Canada (5.2%) |
| Canada Goose Holdings, Inc. (a)(b) | 1438773 | 25624 |
| Shopify, Inc., Class A (a) | 1016762 | 35292 |
|  |  | 60916 |
| China (12.2%) | China (12.2%) | China (12.2%) |
| Foshan Haitian Flavouring & Food Co., Ltd., <br>Class A | 1139588 | 13019 |
| Kuaishou Technology (a)(c) | 2234600 | 20087 |
| Meituan, Class B (a)(c) | 2318600 | 51371 |
| Tencent Holdings Ltd. (c) | 409200 | 17350 |
| Trip.com Group Ltd. ADR (a) | 1195844 | 41137 |
|  |  | 142964 |
| Denmark (7.5%) | Denmark (7.5%) | Denmark (7.5%) |
| DSV AS | 552663 | 87396 |
| France (4.7%) | France (4.7%) | France (4.7%) |
| Hermes International | 35533 | 55000 |
| Germany (6.9%) | Germany (6.9%) | Germany (6.9%) |
| Adidas AG | 247998 | 33610 |
| HelloFresh SE (a) | 1171945 | 25578 |
| Puma SE | 349052 | 21098 |
|  |  | 80286 |
| India (13.7%) | India (13.7%) | India (13.7%) |
| HDFC Bank Ltd. | 4916943 | 96439 |
| ICICI Bank Ltd. ADR | 2919434 | 63906 |
|  |  | 160345 |
| Italy (5.0%) | Italy (5.0%) | Italy (5.0%) |
| Moncler SpA | 1107974 | 58874 |
| Japan (3.9%) | Japan (3.9%) | Japan (3.9%) |
| Change, Inc. | 503800 | 8261 |
| Keyence Corp. | 95500 | 37077 |
|  |  | 45338 |
| Korea, Republic of (8.9%) | Korea, Republic of (8.9%) | Korea, Republic of (8.9%) |
| Coupang, Inc. (a) | 3881419 | 57096 |
| KakaoBank Corp. (a)(b) | 1151432 | 22401 |
| NAVER Corp. | 172978 | 24601 |
|  |  | 104098 |
| Netherlands (5.3%) | Netherlands (5.3%) | Netherlands (5.3%) |
| Adyen NV (a) | 21056 | 29231 |
| ASML Holding NV | 59423 | 32400 |
|  |  | 61631 |
| Norway (1.6%) | Norway (1.6%) | Norway (1.6%) |
| AutoStore Holdings Ltd. (a)(b) | 7392022 | 13499 |
| Kahoot! ASA (a) | 2710115 | 5408 |
|  |  | 18907 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Singapore (3.0%) | Singapore (3.0%) | Singapore (3.0%) |
| Grab Holdings Ltd., Class A (a) | 9015988 | $29032 |
| Sea Ltd. ADR (a) | 124552 | 6480 |
|  |  | 35512 |
| Sweden (4.1%) | Sweden (4.1%) | Sweden (4.1%) |
| Evolution AB | 374339 | 36462 |
| Vitrolife AB | 639458 | 11441 |
|  |  | 47903 |
| Taiwan (2.5%) | Taiwan (2.5%) | Taiwan (2.5%) |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 2038000 | 29599 |
| United Kingdom (1.7%) | United Kingdom (1.7%) | United Kingdom (1.7%) |
| Deliveroo PLC (a) | 13287350 | 13750 |
| Fevertree Drinks PLC | 528232 | 6570 |
|  |  | 20320 |
| United States (8.5%) | United States (8.5%) | United States (8.5%) |
| MercadoLibre, Inc. (a) | 79709 | 67453 |
| Spotify Technology SA (a) | 405279 | 31997 |
|  |  | 99450 |
| **Total Common Stocks (Cost $1,249,780)** | **Total Common Stocks (Cost $1,249,780)** | 1154747 |
| **Short-Term Investments (0.1%)** | **Short-Term Investments (0.1%)** | **Short-Term Investments (0.1%)** |
| Securities held as Collateral on Loaned Securities (0.1%) | Securities held as Collateral on Loaned Securities (0.1%) | Securities held as Collateral on Loaned Securities (0.1%) |
| Investment Company (0.1%) | Investment Company (0.1%) | Investment Company (0.1%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $1,212)** | 1212058 | 1212 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.0%) (d) | Repurchase Agreements (0.0%) (d) | Repurchase Agreements (0.0%) (d) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; proceeds <br>$112; fully collateralized by a U.S. <br>Government obligation; 4.38% <br>due 5/15/41; valued at $115) | $112 | 112 |
| Merrill Lynch & Co., Inc., (4.25%, <br>dated 12/30/22, due 1/3/23; proceeds <br>$113; fully collateralized by a U.S. <br>Government obligation; 1.50% <br>due 2/15/25; valued at $115) | 113 | 113 |
| **Total Repurchase Agreements (Cost $225)** | **Total Repurchase Agreements (Cost $225)** | 225 |
| **Total Short-Term Investments (Cost $1,437)** | **Total Short-Term Investments (Cost $1,437)** | 1437 |
| **Total Investments (98.7%) (Cost $1,251,217) <br>Including $21,282 of Securities Loaned (e)(f)** | **Total Investments (98.7%) (Cost $1,251,217) <br>Including $21,282 of Securities Loaned (e)(f)** | 1156184 |
| Other Assets in Excess of Liabilities (1.3%) | Other Assets in Excess of Liabilities (1.3%) | 15440 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $1171624 |

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

(a) Non-income producing security.

The accompanying notes are an integral part of the consolidated financial statements.<br>6

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**International Opportunity Portfolio**

(b) All or a portion of this security was on loan at December 31, 2022.

(c) Security trades on the Hong Kong exchange.

(d) Amount is less than 0.05%.

(e) The approximate fair value and percentage of net assets, $750,522,000 and 64.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(f) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $1,316,869,000. The aggregate gross unrealized appreciation is approximately $212,484,000 and the aggregate gross unrealized depreciation is approximately $375,499,000, resulting in net unrealized depreciation of approximately $163,015,000.

ADR American Depositary Receipt.

**Portfolio Composition\***

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| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Banks | 17.1% |
| Textiles, Apparel & Luxury Goods | 16.8 |
| Internet & Direct Marketing Retail | 16.4 |
| Others\*\* | 15.6 |
| Information Technology Services | 9.0 |
| Air Freight & Logistics | 7.6 |
| Hotels, Restaurants & Leisure | 6.7 |
| Interactive Media & Services | 5.4 |
| Semiconductors & Semiconductor Equipment | 5.4 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

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

The accompanying notes are an integral part of the consolidated financial statements.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $1,250,005) | $1154972 |
| Investment in Security of Affiliated Issuer, at Value (Cost $1,212) | 1212 |
| Total Investments in Securities, at Value (Cost $1,251,217) | 1156184 |
| Foreign Currency, at Value (Cost $93) | 94 |
| Receivable for Investments Sold | 30054 |
| Receivable for Fund Shares Sold | 618 |
| Tax Reclaim Receivable | 607 |
| Dividends Receivable | 156 |
| Receivable from Securities Lending Income | 58 |
| Receivable from Affiliate | 22 |
| Other Assets | 125 |
| **Total Assets** | 1187918 |
| **Liabilities:** | **Liabilities:** |
| Bank Overdraft | 4342 |
| Payable for Fund Shares Redeemed | 3865 |
| Deferred Capital Gain Country Tax | 2420 |
| Payable for Advisory Fees | 2360 |
| Collateral on Securities Loaned, at Value | 1437 |
| Payable for Sub Transfer Agency Fees — Class I | 1080 |
| Payable for Sub Transfer Agency Fees — Class A | 200 |
| Payable for Sub Transfer Agency Fees — Class L |  |
| Payable for Sub Transfer Agency Fees — Class C | 20 |
| Payable for Custodian Fees | 133 |
| Payable for Administration Fees | 87 |
| Payable for Shareholder Services Fees — Class A | 50 |
| Payable for Distribution and Shareholder Services Fees — Class L |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 27 |
| Payable for Investments Purchased | 55 |
| Payable for Professional Fees | 50 |
| Payable for Transfer Agency Fees — Class I | 32 |
| Payable for Transfer Agency Fees — Class A | 2 |
| Payable for Transfer Agency Fees — Class L |  |
| Payable for Transfer Agency Fees — Class C | 5 |
| Payable for Transfer Agency Fees — Class R6\* | 4 |
| Payable for Transfer Agency Fees — Class IR |  |
| Other Liabilities | 125 |
| **Total Liabilities** | 16294 |
| **Net Assets** | $1171624 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $1727218 |
| Total Accumulated Loss | (555594 |
| **Net Assets** | $1171624 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $668597 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 33764837 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.80 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $220442 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 11484818 |
| **Net Asset Value, Redemption Price Per Share** | $19.19 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $1.06 |
| **Maximum Offering Price Per Share** | $20.25 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $171 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 9454 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $18.04 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $28775 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1625223 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $17.71 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $133702 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 6717889 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.90 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $119937 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 6024454 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.91 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $21282 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Opportunity Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $1,625 of Foreign Taxes Withheld) | $10888 |
| Income from Securities Loaned — Net | 1336 |
| Dividends from Security of Affiliated Issuer (Note G) | 227 |
| Total Investment Income | 12451 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 16219 |
| Sub Transfer Agency Fees — Class I | 2579 |
| Sub Transfer Agency Fees — Class A | 580 |
| Sub Transfer Agency Fees — Class L |  |
| Sub Transfer Agency Fees — Class C | 53 |
| Administration Fees (Note C) | 1677 |
| Shareholder Services Fees — Class A (Note D) | 818 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 2 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 475 |
| Custodian Fees (Note F) | 532 |
| Shareholder Reporting Fees | 305 |
| Registration Fees | 234 |
| Professional Fees | 215 |
| Transfer Agency Fees — Class I (Note E) | 72 |
| Transfer Agency Fees — Class A (Note E) | 12 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 15 |
| Transfer Agency Fees — Class R6\* (Note E) | 23 |
| Transfer Agency Fees — Class IR (Note E) | 2 |
| Directors' Fees and Expenses | 36 |
| Pricing Fees | 3 |
| Other Expenses | 85 |
| Total Expenses | 23939 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (1518 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (7 |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (— |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (20 |
| Rebate from Morgan Stanley Affiliate (Note G) | (38 |
| Net Expenses | 22354 |
| **Net Investment Loss** | (9903 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold (Net of $3,177 of Capital Gain Country Tax) | (500564 |
| Foreign Currency Translation | (224 |
| Net Realized Loss | (500788 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Decrease in Deferred Capital Gain Country Tax of $2,266) | (1162655 |
| Investments in Affiliates | (44737 |
| Foreign Currency Translation | (23 |
| Net Change in Unrealized Appreciation (Depreciation) | (1207415 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (1708203 |
| Net Decrease in Net Assets Resulting from Operations | $(1718106 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(9903) | $(36022) |
| Net Realized Gain (Loss) | (500788) | 203008 |
| Net Change in Unrealized Appreciation (Depreciation) | (1207415) | (446887) |
| Net Decrease in Net Assets Resulting from Operations | (1718106) | (279901) |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (61623) | (68830) |
| **Class A** | (19963) | (14095) |
| **Class L** | (16) | (10) |
| **Class C** | (2906) | (2116) |
| **Class R6\*** | (11293) | (2776) |
| **Class IR** | (10104) | (2945) |
| Total Dividends and Distributions to Shareholders | (105905) | (90772) |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 437070 | 1452927 |
| Distributions Reinvested | 60304 | 67721 |
| Redeemed | (1746169) | (1162793) |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 37062 | 227617 |
| Distributions Reinvested | 19946 | 13921 |
| Redeemed | (199584) | (228996) |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 29 | 20 |
| Distributions Reinvested | 16 | 10 |
| Redeemed | (110) | (79) |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 1603 | 23890 |
| Distributions Reinvested | 2878 | 2107 |
| Redeemed | (26545) | (16273) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 135382 | 73335 |
| Distributions Reinvested | 11293 | 2776 |
| Redeemed | (41180) | (33009) |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Subscribed | 60000 |  |
| Distributions Reinvested | 10104 | 2945 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (1237901) | 426119 |
| Redemption Fees | 85 | 121 |
| Total Increase (Decrease) in Net Assets | (3061827) | 55567 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 4233451 | 4177884 |
| End of Period | $1171624 | $4233451 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Opportunity Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 16359 | 33926 |
| Shares Issued on Distributions Reinvested | 3029 | 1820 |
| Shares Redeemed | (69659) | (27751 |
| Net Increase (Decrease) in Class I Shares Outstanding | (50271) | 7995 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 1453 | 5388 |
| Shares Issued on Distributions Reinvested | 1033 | 384 |
| Shares Redeemed | (8026) | (5604 |
| Net Increase (Decrease) in Class A Shares Outstanding | (5540) | 168 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 1 | 1 |
| Shares Issued on Distributions Reinvested | 1 |  |
| Shares Redeemed | (5) | (2 |
| Net Decrease in Class L Shares Outstanding | (3) | (1 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 68 | 597 |
| Shares Issued on Distributions Reinvested | 162 | 62 |
| Shares Redeemed | (1214) | (423 |
| Net Increase (Decrease) in Class C Shares Outstanding | (984) | 236 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 4557 | 1686 |
| Shares Issued on Distributions Reinvested | 564 | 74 |
| Shares Redeemed | (1817) | (776 |
| Net Increase in Class R6 Shares Outstanding | 3304 | 984 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Subscribed | 1850 |  |
| Shares Issued on Distributions Reinvested | 505 | 79 |
| Net Increase in Class IR Shares Outstanding | 2355 | 79 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $38.44 | $41.46 | $26.73 | $19.77 | $22.52 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.10) | (0.30) | (0.22) | (0.04) | (0.04) |
| Net Realized and Unrealized Gain (Loss) | (16.71) | (1.90) | 15.05 | 7.00 | (2.66) |
| Total from Investment Operations | (16.81) | (2.20) | 14.83 | 6.96 | (2.70) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (1.83) | (0.82) | (0.10) |  | (0.05) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $19.80 | $38.44 | $41.46 | $26.73 | $19.77 |
| **Total Return<sup>(4)</sup>** | (43.76)% | (5.24)% | 55.49% | 35.20% | (12.04)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $668597 | $3229961 | $3152320 | $1284678 | $649580 |
| Ratio of Expenses Before Expense Limitation | 1.11% | 0.99% | 0.98% | 1.03% | 1.04% |
| Ratio of Expenses After Expense Limitation | 1.00%<sup>(5)</sup> | 0.99%<sup>(5)</sup> | 0.97%<sup>(5)</sup> | 0.99%<sup>(5)</sup> | 0.99%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.00%<sup>(5)</sup> | 0.99%<sup>(5)</sup> | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (0.39)%<sup>(5)</sup> | (0.70)%<sup>(5)</sup> | (0.70)%<sup>(5)</sup> | (0.15)%<sup>(5)</sup> | (0.19)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 18% | 36% | 25% | 20% | 36% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $37.49 | $40.57 | $26.23 | $19.46 | $22.25 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.19) | (0.41) | (0.30) | (0.10) | (0.11) |
| Net Realized and Unrealized Gain (Loss) | (16.28) | (1.85) | 14.74 | 6.87 | (2.63) |
| Total from Investment Operations | (16.47) | (2.26) | 14.44 | 6.77 | (2.74) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (1.83) | (0.82) | (0.10) |  | (0.05) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $19.19 | $37.49 | $40.57 | $26.23 | $19.46 |
| **Total Return<sup>(4)</sup>** | (43.96)% | (5.50)% | 55.06% | 34.79% | (12.36)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $220442 | $638203 | $683897 | $336109 | $223098 |
| Ratio of Expenses Before Expense Limitation | 1.35% | 1.28% | 1.26% | 1.30% | 1.34% |
| Ratio of Expenses After Expense Limitation | 1.35%<sup>(5)</sup> | 1.28%<sup>(5)</sup> | 1.25%<sup>(5)</sup> | 1.29%<sup>(5)</sup> | 1.33%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.35%<sup>(5)</sup> | 1.28%<sup>(5)</sup> | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (0.78)%<sup>(5)</sup> | (0.99)%<sup>(5)</sup> | (0.96)%<sup>(5)</sup> | (0.44)%<sup>(5)</sup> | (0.51)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 18% | 36% | 25% | 20% | 36% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $35.60 | $38.79 | $25.23 | $18.82 | $21.63 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.29) | (0.62) | (0.44) | (0.23) | (0.22) |
| Net Realized and Unrealized Gain (Loss) | (15.44) | (1.75) | 14.10 | 6.64 | (2.54) |
| Total from Investment Operations | (15.73) | (2.37) | 13.66 | 6.41 | (2.76) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (1.83) | (0.82) | (0.10) |  | (0.05) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $18.04 | $35.60 | $38.79 | $25.23 | $18.82 |
| **Total Return<sup>(4)</sup>** | (44.24)% | (6.04)% | 54.15% | 34.06% | (12.81)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $171 | $448 | $533 | $512 | $382 |
| Ratio of Expenses Before Expense Limitation | 2.62% | 2.15% | 2.14% | 2.19% | 2.28% |
| Ratio of Expenses After Expense Limitation | 1.85%<sup>(5)</sup> | 1.85%<sup>(5)</sup> | 1.84%<sup>(5)</sup> | 1.84%<sup>(5)</sup> | 1.84%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.85%<sup>(5)</sup> | 1.85%<sup>(5)</sup> | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (1.25)%<sup>(5)</sup> | (1.56)%<sup>(5)</sup> | (1.54)%<sup>(5)</sup> | (0.99)%<sup>(5)</sup> | (1.02)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 18% | 36% | 25% | 20% | 36% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $35.08 | $38.29 | $24.94 | $18.63 | $21.46 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.34) | (0.66) | (0.48) | (0.26) | (0.27) |
| Net Realized and Unrealized Gain (Loss) | (15.20) | (1.73) | 13.93 | 6.57 | (2.51) |
| Total from Investment Operations | (15.54) | (2.39) | 13.45 | 6.31 | (2.78) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (1.83) | (0.82) | (0.10) |  | (0.05) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $17.71 | $35.08 | $38.29 | $24.94 | $18.63 |
| **Total Return<sup>(4)</sup>** | (44.36)% | (6.17)% | 53.94% | 33.87% | (13.00)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $28775 | $91503 | $90845 | $53257 | $35297 |
| Ratio of Expenses Before Expense Limitation | 2.07% | 1.98% | 1.98% | 2.03% | 2.06% |
| Ratio of Expenses After Expense Limitation | 2.06%<sup>(5)</sup> | 1.98%<sup>(5)</sup> | 1.97%<sup>(5)</sup> | 2.02%<sup>(5)</sup> | 2.04%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.06%<sup>(5)</sup> | 1.98%<sup>(5)</sup> | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (1.47)%<sup>(5)</sup> | (1.69)%<sup>(5)</sup> | (1.68)%<sup>(5)</sup> | (1.17)%<sup>(5)</sup> | (1.24)%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.01% | 0.01% | 0.01% |
| Portfolio Turnover Rate | 18% | 36% | 25% | 20% | 36% |

---

(1) Not consolidated.

(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) 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."

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $38.58 | $41.56 | $26.77 | $19.79 | $22.54 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(3)</sup> | (0.09) | (0.25) | (0.18) | (0.02) | 0.02 |
| Net Realized and Unrealized Gain (Loss) | (16.76) | (1.91) | 15.07 | 7.00 | (2.72) |
| Total from Investment Operations | (16.85) | (2.16) | 14.89 | 6.98 | (2.70) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (1.83) | (0.82) | (0.10) |  | (0.05) |
| **Redemption Fees** | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> |
| **Net Asset Value, End of Period** | $19.90 | $38.58 | $41.56 | $26.77 | $19.79 |
| **Total Return<sup>(5)</sup>** | (43.70)% | (5.13)% | 55.63% | 35.27% | (12.03)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $133702 | $131721 | $101008 | $50083 | $14016 |
| Ratio of Expenses Before Expense Limitation | 0.94% | 0.90% | 0.90% | 0.98% | 0.95% |
| Ratio of Expenses After Expense Limitation | 0.92%<sup>(6)</sup> | 0.88%<sup>(6)</sup> | 0.88%<sup>(6)</sup> | 0.91%<sup>(6)</sup> | 0.92%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.92%<sup>(6)</sup> | 0.88%<sup>(6)</sup> | N/A | N/A | N/A |
| Ratio of Net Investment Income (Loss) | (0.35)%<sup>(6)</sup> | (0.59)%<sup>(6)</sup> | (0.59)%<sup>(6)</sup> | (0.07)%<sup>(6)</sup> | 0.09%<sup>(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.02% |
| Portfolio Turnover Rate | 18% | 36% | 25% | 20% | 36% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**International Opportunity Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 15, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $38.60 | $41.58 | $26.78 | $19.79 | $25.37 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.09) | (0.25) | (0.19) | (0.02) | (0.06) |
| Net Realized and Unrealized Gain (Loss) | (16.77) | (1.91) | 15.09 | 7.01 | (5.47) |
| Total from Investment Operations | (16.86) | (2.16) | 14.90 | 6.99 | (5.53) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (1.83) | (0.82) | (0.10) |  | (0.05) |
| **Redemption Fees** | 0.00 | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> | 0.00<br><sup>(4)</sup> |
| **Net Asset Value, End of Period** | $19.91 | $38.60 | $41.58 | $26.78 | $19.79 |
| **Total Return<sup>(5)</sup>** | (43.70)% | (5.13)% | 55.64% | 35.32% | (21.84)%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $119937 | $141615 | $149281 | $110401 | $81592 |
| Ratio of Expenses Before Expense Limitation | 0.92% | 0.88% | 0.89% | 0.93% | 0.95%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 0.92%<sup>(6)</sup> | 0.88%<sup>(6)</sup> | 0.88%<sup>(6)</sup> | 0.91%<sup>(6)</sup> | 0.93%<sup>(6)(9)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | 0.92%<sup>(6)</sup> | 0.88%<sup>(6)</sup> | N/A | N/A | N/A |
| Ratio of Net Investment Loss | (0.36)%<sup>(6)</sup> | (0.59)%<sup>(6)</sup> | (0.60)%<sup>(6)</sup> | (0.07)%<sup>(6)</sup> | (0.46)%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% | 0.01% | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 18% | 36% | 25% | 20% | 36% |

---

(1) Not consolidated.

(2) Commencement of Offering.

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

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

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

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the International Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015 the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, International Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022,

the Subsidiary represented 0% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

from one or more reputable brokers/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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley (effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to the Fund), determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign

exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

• 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Air Freight & Logistics | $— | $87396 | $— | $87396 |
| Banks | 79285 | 118840 |  | 198125 |
| Beverages |  | 6570 |  | 6570 |
| Biotechnology |  | 11441 |  | 11441 |
| Electronic Equipment, <br>Instruments & <br>Components |  | 37077 |  | 37077 |
| Entertainment | 38477 | 5408 |  | 43885 |
| Food & Staples <br>Retailing |  | 25578 |  | 25578 |
| Food Products |  | 13019 |  | 13019 |
| Hotels, Restaurants & <br>Leisure | 41137 | 36462 |  | 77599 |
| Information Technology <br>Services | 66121 | 37492 |  | 103613 |
| Interactive Media & <br>Services |  | 62038 |  | 62038 |
| Internet & Direct <br>Marketing Retail | 124549 | 65121 |  | 189670 |
| Machinery |  | 13499 |  | 13499 |
| Road & Rail | 29032 |  |  | 29032 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Semiconductors & <br>Semiconductor <br>Equipment | $— | $61999 | $— | $61999 |
| Textiles, Apparel & <br>Luxury Goods | 25624 | 168582 |  | 194206 |
| **Total Common Stocks** | **404225** | **750522** | **—** | **1154747** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 1212 |  |  | 1212 |
| Repurchase Agreements |  | 225 |  | 225 |
| **Total Short-Term <br>Investments** | **1212** | **225** | **—** | **1437** |
| **Total Assets** | $**405437** | $**750747** | $**—** | $**1156184** |

---

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 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**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 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 U.S. 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.

**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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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.

As of December 31, 2022, the Fund did not have any outstanding purchased options.

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 by primary risk exposure the Fund's change in unrealized appreciation (depreciation) by type of derivative contract for the year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(9660)(a) |

---

(a) Amounts are included in Realized Loss on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $7713<br> (b) |

---

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 856,382,000 |

---

**6. Securities Lending:** The Fund lends securities to qualified financial institutions, such as broker/dealers, to earn

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 Consolidated 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in <br>the Consolidated <br>Statement of <br>Assets and <br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $21282<br> (c) | $— | $(21282)(d)(e) | $0 |

---

(c) Represents market value of loaned securities at year end.

(d) The Fund received cash collateral of approximately $1,437,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $20,828,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated Portfolio of Investments.

(e) 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 & <br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stock | $1437 | $— | $— | $— | $1437 |
| **Total Borrowings** | $**1437** | $**—** | $**—** | $**—** | $**1437** |
| **Gross amount of <br>recognized liabilities <br>for securities lending <br>transactions** |  |  |  |  | $**1437** |

---

**7. Redemption Fees:** The Fund will assess a 2% redemption fee, on Class I shares, Class A shares, Class L shares, Class C shares, Class R6 shares and Class IR shares which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

**8. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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.

**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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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/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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.80% | 0.75% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.77% 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 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares, 0.94% for Class R6 shares and 0.94% for Class IR 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $1,547,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

Effective September 1, 2022, MSIM Company is no longer a Sub-Adviser to 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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares.

The Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

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

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $377,065,000 and $1,640,455,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $38,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company/Issuer** | **Value<br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds <br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $147997 | $846146 | $992931 | $227 |
| Canada Goose<br>Holdings, Inc.\* | 112983 |  | 35604 |  |
| Total | $260980 | $846146 | $1028535 | $227 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company/Issuer (cont'd)** | **Realized<br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $1212 |
| Canada Goose<br>Holdings, Inc.\* | (3682) | (48073) | 25624 |
| Total | $(3682) | $(48073) | $26836 |

---

\* The security was deemed to no longer meet the criteria of an affiliated issuer at the reporting date.

During the year ended December 31, 2022, the Fund incurred approximately $21,000 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $— | $105905 | $— | $90772 |

---

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 a net operating loss and tax adjustments related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $60461 | $(60461) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $165,564,000 and $226,940,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 44.8%.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrency indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated

recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. —<br>International Opportunity Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of International Opportunity Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279225_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated and paid approximately $105,905,000 as a long-term capital gain distribution.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279225_za006.jpg)

IFIIIOANN<br>5452867 EXP 02.29.24

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![](j23279226_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

International Resilience

Portfolio

Annual Report

December 31, 2022

![](j23279226_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 7 |
| Statement of Assets and Liabilities | 8 |
| Statement of Operations | 9 |
| Statement of Changes in Net Assets | 10 |
| Financial Highlights | 11 |
| Notes to Financial Statements | 15 |
| Report of Independent Registered Public Accounting Firm | 21 |
| Liquidity Risk Management Program | 22 |
| U.S. Customer Privacy Notice | 23 |
| Director and Officer Information | 26 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in International Resilience Portfolio (the "Fund") performed during the period beginning July 29, 2022 (when the Fund commenced operations) and ended December 31, 2022.

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,

![](j23279226_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**International Resilience Portfolio**

As a shareholder of the Fund, you 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 period and held for the entire period 7/29/22 - 12/31/22.

**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). 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<br>Account<br>Value<br>7/29/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| International Resilience Portfolio Class I^ | $1000.00 | $976.00 | $1017.67 | $3.52 | $3.60 | 0.84% |
| International Resilience Portfolio Class A^ | 1000.00 | 975.00 | 1016.14 | 5.03 | 5.14 | 1.20 |
| International Resilience Portfolio Class C^ | 1000.00 | 971.00 | 1012.95 | 8.16 | 8.33 | 1.95 |
| International Resilience Portfolio Class R6^ | 1000.00 | 976.00 | 1017.84 | 3.36 | 3.43 | 0.80 |

---

\* 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 155/365 (to reflect the actual days in the period).

\*\* Annualized.

^ The Fund commenced operations on July 29, 2022.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**International Resilience Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the period from Fund inception on July 29, 2022 through December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –2.40%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the MSCI All Country World ex USA Net Index (the "Index"), which returned –0.44% for the same period.

**Factors Affecting Performance**

• The Index was down slightly in December 2022, –0.8% in U.S. dollars (USD) and –2.9% in local currency, finishing ahead of the broader MSCI All Country World Index (ACWI), which returned –3.9% in USD given the underperformance of the U.S. market.<sup>(i)</sup> Despite weakness in December, the Index finished the fourth quarter of 2022 up a whopping 14.3% in USD, though up only 7.8% in local currency. This was ahead of the +9.8% returned by MSCI ACWI, with the U.S. market also lagging for the full quarter. All sectors finished positive for the quarter, led by the cyclical industrials (+17%), materials (+17%) and financials (+16%) sectors, while health care and information technology were in line with the Index (14%). Consumer staples (+10%) and communication services (+12%) underperformed. The regional performance pattern was mixed. Euroland outperformed the Index with strength from Italy (+26% USD, +16% local), Germany (+25%, +14%), Spain (+23%, +13%) and France (+22%, +12%). The U.K. (+17% USD, +9% local) was ahead of the Index, while Switzerland lagged, returning only +10% USD and +4% local. Moving to Asia, Singapore (+10% USD, +4% local) and Japan (+13%, +3%) trailed the Index, while Hong Kong (+18%, +18%) held up better. However, the market's weakness in August and September offset the strength in the final quarter of the year, resulting in overall negative performance for the Index in this reporting period.

• The underperformance of the portfolio since inception was due to sector allocation, as the overweight in information technology, the underweight in financials and the zero weight in materials all hurt performance. Meanwhile, stock selection was roughly neutral, with outperformance in information technology largely balanced by underperformance in health care.

• The top contributors to the Fund's absolute performance since inception were SAP, Shiseido, Moncler, Kone and LVMH. The leading detractors were Reckitt Benckiser, TSMC, Teleperformance, Constellation and Adidas.

**Management Strategies**

**Multiples have Tumbled, are Earnings Next?**

• At the start of 2022, we only had two worries about the equity market, but they were significant ones: the multiple and the earnings. In 2022, forward earnings held up reasonably well, up 3% for MSCI ACWI.<sup>(ii)</sup> The 18% fall in the ACWI index was entirely down to a sharp derating in public markets, with the MSCI ACWI forward earnings multiple falling from 18.2x to 13.8x — in contrast to private markets, which have protected investors from volatility by failing to mark prices down. This derating has been particularly concentrated in the more expensive "growthier" companies, with communication services, consumer discretionary and information technology all falling over 30%. The combination of resilient earnings and this skewed derating have made 2022 a very unusual year, as quality has not provided the downside risk mitigation that it did in the previous down years of 2008, 2011, 2015 and 2018, with the MSCI ACWI Quality down 23% for the year, over 500 basis points (bps) behind the wider ACWI index. One surprising element of the year is that ACWI ex-U.S. (–16.0%) outperformed the U.S. (–19.9%) despite a major land war in Europe and the knock-on impacts on both short- and long-term access to energy in Europe.

<sup>(i)</sup> The MSCI All Country World Index (ACWI) measures the performance of large- and mid-cap stocks across 23 developed markets and 24 emerging markets countries.

<sup>(ii)</sup> Source for all earnings, earnings estimates and earnings multiples data used in this report: FactSet. Data as of December 2022. One basis point = 0.01%. The MSCI ACWI Quality Index measures the performance of quality growth stocks (based on high return on equity, stable year-over-year earnings growth and low financial leverage) in the MSCI All Country World Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**International Resilience Portfolio**

• At the start of 2023, our two worries from 12 months ago have reduced to one and a bit. The fall in the MSCI ACWI multiple to 13.8x, now only 12% above the 2003-19 average as against the 41% premium at the start of the year, suggests that the market is no longer clearly overvalued, though of course the multiple could fall below average levels if there is a major economic downturn. It is earnings that remain the major concern. Inflation should help top-line growth, in nominal terms at least, but the margins do look stretched, with the MSCI ACWI ex-U.S. forward EBIT (earnings before interest and taxes) margin at 15.2%, 250 bps ahead of the 2003-19 average. This is consistent with the world of excess demand we have been in, which has given all sorts of lower quality companies pricing power. Companies' earnings issues in this period have tended to be idiosyncratic, rather than due to overall demand issues. Many have come from either the direct impacts of COVID-19, for instance in messing up their supply chains, or from the post-pandemic hangover, with former "COVID heroes" — beneficiaries of the virtual world of the pandemic — having to adjust to the return towards an IRL (in real life) world.

• It is striking that bottom-up forward earnings estimates still look relatively healthy, despite what has been described in various forums as the most predicted recession in history, with 2023 MSCI ACWI ex-U.S. earnings estimated to be 1% higher than 2022 despite the headwind from the strong dollar, and 25% above the pre-COVID 2019 level. Central banks, particularly in the U.S., are raising rates aggressively to deal with inflation by attempting to slow demand. There is discussion about exactly how far they need to go, weighing up the balance between slowing goods inflation and continuing wage rises, as well as arcane discussion of the lags in the shelter element of the U.S. inflation calculation. We are in no position to take a view on these intricacies as mighty economists face off against each other. However, the basic fact remains that even in the case of a successful soft landing, the consensus economic outlook is for 2023 growth to roughly grind to a halt in most Western economies. The impacts of central bank actions are already being felt in the more interest rate sensitive areas, notably housing, and consumers are facing an ugly squeeze on real incomes thanks to inflation; but

labor markets still remain tight, with U.S. unemployment still down at 3.5%, keeping upwards pressure on wages — and on central bank action. Forward-looking indicators have turned down, but most of the economic pain, and thus earnings pain, is still to come.

• As the excess demand of 2021 and 2022 shifts towards excess supply in 2023, there is likely to be an earnings recession, as margins fall from current peaks. Once again, the market will discover which companies have resilient earnings in tough times. Our bet, as ever, is that pricing power and recurring revenue, two of the key criteria for inclusion in our portfolios, will once again show their worth, as they did in the 2008-09 Financial Crisis and in the first half of 2020, during the early days of the pandemic. Compounders should continue to compound. The silver lining of the painful derating of 2022 is that any compounding is now coming on top of a lower multiple. Given that there are only two ways of losing money in equities — the earnings going away, or the multiple going away — owning a portfolio of resilient earnings at a reasonable multiple does seem a sensible approach in such uncertain times.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**International Resilience Portfolio**

![](j23279226_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on July 29, 2022.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI All Country World ex USA Net Index** **<sup>(1)</sup>** **and the Lipper International Multi-Cap Core Funds Index** **<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | **One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –2.40% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –2.50 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> |  |  |  | –7.58 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –2.90 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(4)</sup> |  |  |  | –3.87 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | –2.40 |
| MSCI All Country World <br>ex USA Net Index |  |  |  | –0.44 |
| Lipper International Multi-Cap <br>Core Funds Index |  |  |  | 0.17 |

---

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

<sup>(1)</sup> The MSCI All Country World ex USA Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets, excluding the United States. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on July 29, 2022.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**International Resilience Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (100.7%)** | **Common Stocks (100.7%)** | **Common Stocks (100.7%)** |
| Australia (1.4%) | Australia (1.4%) | Australia (1.4%) |
| Aristocrat Leisure Ltd. | 1031 | $21 |
| Canada (3.8%) | Canada (3.8%) | Canada (3.8%) |
| Constellation Software, Inc. | 36 | 56 |
| China (1.2%) | China (1.2%) | China (1.2%) |
| Tencent Holdings Ltd. (a) | 400 | 17 |
| Denmark (3.0%) | Denmark (3.0%) | Denmark (3.0%) |
| Carlsberg AS Series B | 333 | 44 |
| Finland (1.6%) | Finland (1.6%) | Finland (1.6%) |
| Kone Oyj, Class B | 457 | 24 |
| France (17.8%) | France (17.8%) | France (17.8%) |
| L'Oreal SA | 154 | 55 |
| Legrand SA | 537 | 43 |
| LVMH Moet Hennessy Louis Vuitton SE | 63 | 46 |
| Pernod Ricard SA | 210 | 42 |
| Sanofi | 168 | 16 |
| Teleperformance | 101 | 24 |
| Worldline SA (b) | 873 | 34 |
|  |  | 260 |
| Germany (14.4%) | Germany (14.4%) | Germany (14.4%) |
| Adidas AG | 149 | 20 |
| Deutsche Boerse AG | 266 | 46 |
| Infineon Technologies AG | 765 | 23 |
| QIAGEN NV (b) | 846 | 43 |
| SAP SE | 770 | 79 |
|  |  | 211 |
| Hong Kong (1.5%) | Hong Kong (1.5%) | Hong Kong (1.5%) |
| AIA Group Ltd. | 2000 | 22 |
| Italy (3.3%) | Italy (3.3%) | Italy (3.3%) |
| Moncler SpA | 908 | 48 |
| Japan (7.6%) | Japan (7.6%) | Japan (7.6%) |
| Hoya Corp. | 400 | 39 |
| Keyence Corp. | 100 | 39 |
| Shiseido Co., Ltd. | 700 | 34 |
|  |  | 112 |
| Netherlands (3.8%) | Netherlands (3.8%) | Netherlands (3.8%) |
| Heineken NV | 583 | 55 |
| Sweden (6.0%) | Sweden (6.0%) | Sweden (6.0%) |
| Atlas Copco AB, Class A | 2978 | 36 |
| Epiroc AB, Class A | 1544 | 28 |
| Hexagon AB, Class B | 2292 | 24 |
|  |  | 88 |
| Switzerland (3.8%) | Switzerland (3.8%) | Switzerland (3.8%) |
| Alcon, Inc. | 468 | 32 |
| Roche Holding AG (Genusschein) | 77 | 24 |
|  |  | 56 |
| Taiwan (3.3%) | Taiwan (3.3%) | Taiwan (3.3%) |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 645 | 48 |
| United Kingdom (18.0%) | United Kingdom (18.0%) | United Kingdom (18.0%) |
| AstraZeneca PLC | 342 | 46 |
| Experian PLC | 1140 | 38 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Halma PLC | 963 | $23 |
| Prudential PLC | 2491 | 34 |
| Reckitt Benckiser Group PLC | 764 | 53 |
| RELX PLC | 2482 | 69 |
|  |  | 263 |
| United States (10.2%) | United States (10.2%) | United States (10.2%) |
| Danaher Corp. | 141 | 38 |
| Procter & Gamble Co. | 232 | 35 |
| Thermo Fisher Scientific, Inc. | 69 | 38 |
| Visa, Inc., Class A | 184 | 38 |
|  |  | 149 |
| **Total Common Stocks (Cost $1,499)** | **Total Common Stocks (Cost $1,499)** | 1474 |
| **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** |
| Investment Company (1.0%) | Investment Company (1.0%) | Investment Company (1.0%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $14)** | 14358 | 14 |
| **Total Investments (101.7%) (Cost $1,513) (c)(d)** | **Total Investments (101.7%) (Cost $1,513) (c)(d)** | 1488 |
| Liabilities in Excess of Other Assets (–1.7%) | Liabilities in Excess of Other Assets (–1.7%) | (24) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $1464 |

---

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

(a) Security trades on the Hong Kong exchange.

(b) Non-income producing security.

(c) The approximate fair value and percentage of net assets, $1,221,000 and 83.4%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(d) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $1,514,000. The aggregate gross unrealized appreciation is approximately $44,000 and the aggregate gross unrealized depreciation is approximately $70,000, resulting in net unrealized depreciation of approximately $26,000.

ADR American Depositary Receipt.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 27.6% |
| Beverages | 9.5 |
| Software | 9.1 |
| Professional Services | 8.8 |
| Life Sciences Tools & Services | 8.0 |
| Textiles, Apparel & Luxury Goods | 7.6 |
| Personal Products | 6.0 |
| Household Products | 5.9 |
| Machinery | 5.9 |
| Electronic Equipment, Instruments & Components | 5.8 |
| Pharmaceuticals | 5.8 |
| 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.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Resilience Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $1,499) | $1474 |
| Investment in Security of Affiliated Issuer, at Value (Cost $14) | 14 |
| Total Investments in Securities, at Value (Cost $1,513) | 1488 |
| Foreign Currency, at Value (Cost $3) | 3 |
| Due from Adviser | 92 |
| Prepaid Offering Costs | 70 |
| Receivable for Investments Sold | 1 |
| Dividends Receivable | 1 |
| Tax Reclaim Receivable |  |
| Receivable from Affiliate |  |
| Other Assets | 4 |
| **Total Assets** | 1659 |
| **Liabilities:** | **Liabilities:** |
| Payable for Offering Costs | 119 |
| Payable for Professional Fees | 58 |
| Payable for Custodian 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 R6 |  |
| Payable for Investments Purchased |  |
| Payable for Administration Fees |  |
| Other Liabilities | 16 |
| **Total Liabilities** | 195 |
| **Net Assets** | $1464 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $1494 |
| Total Accumulated Loss | (30 |
| **Net Assets** | $1464 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $1317 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 135000 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.76 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $49 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |
| **Net Asset Value, Redemption Price Per Share** | $9.75 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.54 |
| **Maximum Offering Price Per Share** | $10.29 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $49 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.71 |
| **CLASS R6:** | **CLASS R6:** |
| **Net Assets** | $49 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $9.76 |

---

@ Amount is less than $500.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Resilience Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Period from<br>July 29, 2022^ to<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $1 of Foreign Taxes Withheld) | $5 |
| Dividends from Security of Affiliated Issuer (Note G) |  |
| Total Investment Income | 5 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 74 |
| Offering Costs | 52 |
| Shareholder Reporting Fees | 13 |
| Advisory Fees (Note B) | 4 |
| Custodian Fees (Note F) | 4 |
| 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 R6 (Note E) | 1 |
| Shareholder Services Fees — Class A (Note D) |  |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Administration Fees (Note C) |  |
| Pricing Fees |  |
| Registration Fees |  |
| Other Expenses | 4 |
| Total Expenses | 155 |
| Expenses Reimbursed by Adviser (Note B) | (142 |
| Waiver of Advisory Fees (Note B) | (4 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class R6 (Note B) | (1 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 5 |
| **Net Investment Loss** | (— |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (5 |
| Foreign Currency Translation | (6 |
| Net Realized Loss | (11 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (25 |
| Foreign Currency Translation |  |
| Net Change in Unrealized Appreciation (Depreciation) | (25 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (36 |
| Net Decrease in Net Assets Resulting from Operations | $(36 |

---

^ Commencement of Operations.

@ Amount is less than $500.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**International Resilience Portfolio**

---

| | |
|:---|:---|
| Statement of Changes in Net Assets | **Period from<br>July 29, 2022^ to<br>December 31, 2022<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** |
| Net Investment Loss | $(— |
| Net Realized Loss | (11 |
| Net Change in Unrealized Appreciation (Depreciation) | (25 |
| Net Decrease in Net Assets Resulting from Operations | (36 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** |
| Subscribed | 1350 |
| **Class A:** | **Class A:** |
| Subscribed | 50 |
| **Class C:** | **Class C:** |
| Subscribed | 50 |
| **Class R6:** | **Class R6:** |
| Subscribed | 50 |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 1500 |
| Total Increase in Net Assets | 1464 |
| **Net Assets:** | **Net Assets:** |
| Beginning of Period |  |
| End of Period | $1464 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** |
| Shares Subscribed | 135 |
| **Class A:** | **Class A:** |
| Shares Subscribed | 5 |
| **Class C:** | **Class C:** |
| Shares Subscribed | 5 |
| **Class R6:** | **Class R6:** |
| Shares Subscribed | 5 |

---

^ Commencement of Operations.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class I** |
|<br>**Selected Per Share Data and Ratios** | **Period from<br>July 29, 2022<sup>(1)</sup> to<br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.00<br><sup>(3)</sup> |
| Net Realized and Unrealized Loss | (0.24) |
| Total from Investment Operations | (0.24) |
| **Net Asset Value, End of Period** | $9.76 |
| **Total Return<sup>(4)</sup>** | (2.40)%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1317 |
| Ratio of Expenses Before Expense Limitation | 25.45%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 0.84%<sup>(5)(7)</sup> |
| Ratio of Net Investment Income | 0.01%<sup>(5)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01%<sup>(7)</sup> |
| Portfolio Turnover Rate | 7%<sup>(6)</sup> |

---

(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) 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.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class A** |
|<br>**Selected Per Share Data and Ratios** | **Period from<br>July 29, 2022<sup>(1)</sup> to<br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.01) |
| Net Realized and Unrealized Loss | (0.24) |
| Total from Investment Operations | (0.25) |
| **Net Asset Value, End of Period** | $9.75 |
| **Total Return<sup>(3)</sup>** | (2.50)%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $49 |
| Ratio of Expenses Before Expense Limitation | 30.17%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation | 1.20%<sup>(4)(6)</sup> |
| Ratio of Net Investment Loss | (0.35)%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)(7)</sup> |
| Portfolio Turnover Rate | 7%<sup>(5)</sup> |

---

(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 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) Not annualized.

(6) Annualized.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class C** |
|<br>**Selected Per Share Data and Ratios** | **Period from<br>July 29, 2022<sup>(1)</sup> to<br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.04) |
| Net Realized and Unrealized Loss | (0.25) |
| Total from Investment Operations | (0.29) |
| **Net Asset Value, End of Period** | $9.71 |
| **Total Return<sup>(3)</sup>** | (2.90)%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $49 |
| Ratio of Expenses Before Expense Limitation | 30.92%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation | 1.95%<sup>(4)(6)</sup> |
| Ratio of Net Investment Loss | (1.10)%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)(7)</sup> |
| Portfolio Turnover Rate | 7%<sup>(5)</sup> |

---

(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 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) Not annualized.

(6) Annualized.

(7) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**International Resilience Portfolio**

---

| | |
|:---|:---|
| | **Class R6** |
|<br>**Selected Per Share Data and Ratios** | **Period from<br>July 29, 2022<sup>(1)</sup> to<br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.00<br><sup>(3)</sup> |
| Net Realized and Unrealized Loss | (0.24) |
| Total from Investment Operations | (0.24) |
| **Net Asset Value, End of Period** | $9.76 |
| **Total Return<sup>(4)</sup>** | (2.40)%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $49 |
| Ratio of Expenses Before Expense Limitation | 29.95%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 0.80%<sup>(5)(7)</sup> |
| Ratio of Net Investment Income | 0.05%<sup>(5)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)(8)</sup> |
| Portfolio Turnover Rate | 7%<sup>(6)</sup> |

---

(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) 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.

(8) Amount is less than 0.005%.

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the International Resilience Portfolio. The Fund seeks long-term capital appreciation.

The Fund commenced operations on July 29, 2022 and offers four classes of shares — Class I, Class A, Class C and Class R6.

**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 Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Beverages | $— | $141 | $— | $141 |
| Capital Markets |  | 46 |  | 46 |
| Electrical Equipment |  | 43 |  | 43 |
| Electronic Equipment, <br>Instruments & <br>Components |  | 86 |  | 86 |
| Health Care Equipment & <br>Supplies |  | 71 |  | 71 |
| Hotels, Restaurants & <br>Leisure |  | 21 |  | 21 |
| Household Products | 35 | 53 |  | 88 |
| Information Technology <br>Services | 38 | 34 |  | 72 |
| Insurance |  | 56 |  | 56 |
| Interactive Media & <br>Services |  | 17 |  | 17 |
| Life Sciences Tools & <br>Services | 76 | 43 |  | 119 |
| Machinery |  | 88 |  | 88 |
| Personal Products |  | 89 |  | 89 |
| Pharmaceuticals |  | 86 |  | 86 |
| Professional Services |  | 131 |  | 131 |
| Semiconductors & <br>Semiconductor <br>Equipment | 48 | 23 |  | 71 |
| Software | 56 | 79 |  | 135 |
| Textiles, Apparel & <br>Luxury Goods |  | 114 |  | 114 |
| **Total Common Stocks** | **253** | **1221** | **—** | **1474** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 14 |  |  | 14 |
| **Total Assets** | $**267** | $**1221** | $**—** | $**1488** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 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 U.S. 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. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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.

**7. Offering Cost:** Offering costs are accounted for as a deferred charge until operations begin and thereafter are amortized to expense over twelve months on a straight-line basis.

**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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $500<br>million** | **Over $500<br>million** |
| 0.70% | 0.65% |

---

For the period ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 0.85% for Class I shares, 1.20% for Class A shares, 1.95% for Class C shares and 0.80% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the period ended December 31, 2022, approximately $4,000 of advisory fees were waived and approximately $146,000 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 Directors. The Adviser pays the Sub-Adviser on a

monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company 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 December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $1,597,000 and $93,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the period ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by less 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 period ended December 31, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>July 29,<br>2022<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $— | $1841 | $1827 | $— | @ |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $14 |

---

@ 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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the period ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 year ended December 31, 2022 remains subject to examination by taxing authorities.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 2022.

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 a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2022:

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| | |
|:---|:---|
| **Total <br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $6 | $(6) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $3,000 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. Other:** At December 31, 2022, the Fund did not have record owners of 10% or greater.

**J. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and

populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>International Resilience Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of International Resilience Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statements of operations and changes in net assets and the financial highlights for the period from July 29, 2022 (commencement of operations) through December 31, 2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, and the results of its operations, the changes in its net assets and its financial highlights for the period from July 29, 2022, (commencement of operations) through December 31, 2022, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

![](j23279226_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program\* (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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 Fund's liquidity risk is assessed by the LRS 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.

\* The Fund commenced operations subsequent to the period covered by the report, which applied to other portfolios of the Company during that period. However, during the fiscal year ended December 31, 2022, the Program applied to the Fund.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

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

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

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

**Sub-Adviser**

Morgan Stanley Investment Management Limited<br>25 Cabot Square, Canary Wharf<br>London, E14 4QA, England

**Distributor**

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

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

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

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

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

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279226_za006.jpg)

IFIINTRESILANN<br>5442602 EXP 02.29.24

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![](j23279227_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Annual Report

December 31, 2022

![](j23279227_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 12 |
| Consolidated Statement of Assets and Liabilities | 18 |
| Consolidated Statement of Operations | 20 |
| Consolidated Statements of Changes in Net Assets | 21 |
| Consolidated Financial Highlights | 22 |
| Notes to Consolidated Financial Statements | 26 |
| Report of Independent Registered Public Accounting Firm | 38 |
| Liquidity Risk Management Program | 39 |
| Federal Tax Notice | 40 |
| U.S. Customer Privacy Notice | 41 |
| Director and Officer Information | 44 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

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

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in Multi-Asset Real Return Portfolio (the "Fund") performed during the latest twelve-month period.

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

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

![](j23279227_ba003.jpg)

John H. Gernon

President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Multi-Asset Real Return Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Multi-Asset Real Return Portfolio Class I | $1000.00 | $1081.60 | $1021.27 | $4.09 | $3.97 | 0.78% |
| Multi-Asset Real Return Portfolio Class A | 1000.00 | 1079.70 | 1019.51 | 5.92 | 5.75 | 1.13 |
| Multi-Asset Real Return Portfolio Class C | 1000.00 | 1076.30 | 1016.08 | 9.47 | 9.20 | 1.81 |
| Multi-Asset Real Return Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1082.10 | 1021.53 | 3.83 | 3.72 | 0.73 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Multi-Asset Real Return Portfolio**

The Fund seeks total return, targeted to be in excess of inflation, through capital appreciation and current income.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 3.11%, net of fees. The Fund outperformed its benchmark, the Bloomberg U.S. Treasury Bills 1-3 Month Index (the "Index"),<sup>(i)</sup> which returned 1.52%. The Fund and benchmark index performance is in U.S. dollar ("USD") terms, unless otherwise noted.

**Factors Affecting Performance\*<sup>(ii)</sup>**

• Global markets suffered steep losses in 2022 as investor sentiment was dominated by the highest inflation in decades, rising policy interest rates and growing fears of central bank-induced recessions around the world. For the first time in any calendar year on record, both the S&P 500 Index and 10-year U.S. Treasuries lost more than –10% each, leading to disappointing returns for traditional 60/40 portfolios (that is, investing 60% of a portfolio in stocks and 40% in bonds). In addition to the volatile macroeconomic environment, markets also faced significant geopolitical turmoil as Russia launched its invasion of Ukraine in the first quarter of 2022, which caused energy and food prices to surge. Although this price spike pushed inflation to even higher levels over the summer, it also meant that commodities were among the few

asset classes that advanced for the year (S&P GSCI Index +26.0%).

• Global equities fell –18.4% (MSCI All Country World Index [ACWI] in USD) as the Federal Reserve's (Fed) rate hiking campaign forced U.S. equity valuations lower, particularly for unprofitable tech stocks that had surged to record levels in 2021. Investor concerns started to shift away from inflation and toward recession in the fourth quarter of 2022 after consecutive inflation reports indicated that inflation had peaked, increasing worries that central banks might overtighten policy rates and tip the global economy into recession in 2023. Energy was the only sector in positive territory in 2022 (MSCI ACWI Energy Index +27.5% in local currency terms), while all other sectors booked losses, with the growth-heavy communication services sector recording the largest drawdown (MSCI ACWI Communication Services –36.2% in local currency terms). Within equity factors, Value continued its rally, outperforming Growth by +23.3% (MSCI ACWI Value Index –5.8%, MSCI ACWI Growth Index –29.0%, both in USD).<sup>(iii)</sup>

• Bond prices fell –17.3% (J.P. Morgan Global Government Bond Index in USD). At the end of 2021, investors had incorrectly assumed inflation would turn out to be transitory, pricing in only three rate hikes of 25 basis points (bps) each for 2022. As price pressures persisted, however, and the Ukraine war fueled inflation further, the Fed

\* Certain of the Fund's investment themes may, in whole or part, be implemented through the use of derivatives, including the purchase and sale of futures, options, swaps, structured investments (including commodity-linked notes) and other related instruments and techniques. The Fund may also invest in foreign currency forward exchange contracts, which are also derivatives, in connection with its investments in foreign securities. The Fund may use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. As a result, the use of derivatives had a material effect on the Fund's performance during the period.

<sup>(i)</sup> "Bloomberg<sup>®</sup>" and the Bloomberg Index/Indices used are service marks of Bloomberg Finance L.P. and its affiliates, and have been licensed for use for certain purposes by Morgan Stanley Investment Management (MSIM). Bloomberg is not affiliated with MSIM, does not approve, endorse, review, or recommend any product, and. does not guarantee the timeliness, accurateness, or completeness of any data or information relating to any product.

<sup>(ii)</sup> Source: Morgan Stanley Investment Management (MSIM) Global Multi-Asset Team analysis; market data sourced from Bloomberg. The MSCI All Country World Net Index (ACWI) is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI Energy Index measures the equity market performance of energy stocks in developed and emerging markets. The MSCI ACWI Communication Services Index measures the equity market performance of communication services stocks in developed and emerging markets. The MSCI ACWI Value Index measures the equity market performance of stocks exhibiting value style characteristics in developed and emerging markets. The MSCI ACWI

Growth Index measures the equity market performance of stocks exhibiting growth style characteristics in developed and emerging markets. The MSCI ACWI ex U.S. Index measure stock market performance across 22 of 23 developed markets countries (excluding the U.S.) and 24 emerging markets countries. The Standard & Poor's 500<sup>®</sup> Index (S&P 500<sup>®</sup>) measures the performance of the large cap segment of the U.S. equities market, covering approximately 80% of the U.S. equities market. The Index includes 500 leading companies in leading industries of the U.S. economy. The U.S. Dollar Index (DXY) is an index of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies. The J.P. Morgan Global Government Bond Index is a market value weighted fixed income index comprised of government bonds in developed countries. The S&P GSCI Commodity Index is a composite index of commodity sector returns, representing an unleveraged, long only investment in commodity futures that is broadly diversified across the spectrum of commodities. The S&P GSCI Industrials Index measures the performance of the industrial metals market. The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. The indexes do not include any expenses, fees or sales charges, which would lower performance. The indexes are unmanaged and should not be considered an investment. It is not possible to invest directly in an index. One basis point = 0.01%.

<sup>(iii)</sup> Due to rounding, the figures may not appear to calculate precisely.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Multi-Asset Real Return Portfolio**

commenced its steepest hiking cycle in history, completing 425 bps worth of hikes in under 12 months. The 10-year Treasury yield increased to 3.87% from 1.51%, with the 2/10 yield curve (the difference between 2- and 10-year Treasury yields) inverting in July and staying inverted for the remainder of the year, triggering a commonly cited recession signal. The European Central Bank (ECB) also started its tightening cycle, ending the eurozone's era of negative interest rates, to regain control of double-digit inflation. By the end of the year, the ECB's main policy rate had increased by 250 bps, with the ECB also announcing its quantitative tightening program would start in March 2023.

• Commodities and the U.S. dollar were the two notable exceptions to the broad market decline in 2022 (S&P GSCI Index +26.0%, DXY Index +8.2%). The U.S dollar advanced versus all G10 currencies in the first three quarters of 2022 due to the Fed's aggressive rate hikes but reversed course in the fourth quarter as investors began to anticipate the end of the Fed's hiking cycle and started to price in narrowing yield differentials relative to other currencies. The Mexican peso (+5.2%) and Brazilian real (+5.4%) were the only currencies from the broader group of G20 currencies that gained versus the dollar, while the Argentine peso (–42.3%) saw the largest decline of the group due to uncontrolled inflation surging above 90%. Commodities closely tracked oil prices, which surged to $128 per barrel following Russia's invasion of Ukraine and remained elevated for the first half of the year. During the second half, however, commodity prices declined –7.3%, driven by an easing of the supply chain issues caused by the war, the release of some of the U.S. Strategic Petroleum Reserves, and weaker industrial metals prices. The prospect of a 2023 recession weighed on the demand outlook for industrial metals and more than offset supply constraints that had pushed prices higher earlier in the year, resulting in a decline of –7.6% for the year (S&P GSCI Industrial Metals Index).

• Within the Fund's Core Real Assets positions, Brent oil, U.S. energy equities, commodities

(GSCI), gold and gold mining stocks (directional and relative to U.S. equities), and U.S. materials stocks contributed to performance. Detractors from performance included positions in U.S. 10-year TIPS (Treasury inflation-protected securities) and iron ore mining stocks.

• Within Opportunistic positions, contributors included 10-year inflation breakevens, U.S. 5-year Treasuries vs. 5-year inflation breakevens, defensive currencies vs. the U.S. dollar, U.S. energy stocks, U.S. real estate investment trusts (REITS), and U.S. defense stocks all vs. U.S. equities; directional longs in U.S. REITS, U.S. defense stocks and U.S. homebuilders, and in U.S. industrial stocks vs. U.S. technology stocks. Detractors included positions in European energy stocks vs. European equities, European banks, U.S. banks and U.S. homebuilders.

**Management Strategies<sup>(iv)</sup>**

**2023 Global Multi-Asset Team Outlook**

After one of the toughest years for both stocks and bonds in decades, there is a pervasive sense of cautiousness and apprehensiveness on the part of investors and asset owners: Is the nightmare over? Or will 2023 bring more of the same?

In this piece, we lay out key macroeconomic and investment themes we expect will materialize over the coming year. Some of the themes are continuation of existing trends, others are new trends we expect to be established in coming quarters, and yet others are reversals of prior trends. However, we do see all these 2023 themes and trends occurring in the context of a broad multi-year regime shift driven by the end of "free" money and end of low-flation; structural trends we have been writing about for nearly three years.

**The Most Anticipated Recession Ever**

The consensus expects an imminent (2023), short and shallow U.S. recession. By contrast, we expect a soft landing in 2023, followed by a deep recession in 2024.

A year ago, we expected the trifecta of a doubling in mortgage rates, skyrocketing gasoline prices and a fiscal cliff to drive the U.S. into recession. But the fiscal cliff did not materialize: the effect of the 2020-2021 stimulus continued

<sup>(iv)</sup> Source: Morgan Stanley Investment Management (MSIM) Global Multi-Asset Team analysis; market data sourced from Bloomberg; consensus estimates sourced from Thomson Reuters I/B/E/S.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Multi-Asset Real Return Portfolio**

because nearly half of the $6 trillion COVID stimulus was saved. In 2022 households drew down nearly $1.2 trillion of excess savings, which helped offset the hit from $5.00 per gallon gasoline and 7% mortgage rates. Ultimately, the U.S. economy bent but did not break.

However, with the Fed raising rates by the most in 30 years, most economists and market participants expect a recession in 2023. In this respect, it is likely to be the most anticipated recession ever. This is interesting from a contrarian point of view. We are intrigued by the possibility that, after skirting recession in 2022, the U.S. economy avoids it again in 2023 as gasoline prices have now collapsed 35% from last June, supply-shortage-driven inflation is reversing, mortgage rates appear to have peaked, and the COVID fiscal stimulus is still coursing through the economy in the form of excess savings. In addition, the shift from goods to services demand, which is still not complete, is favorable for the U.S. economy as more services than goods are domestically produced. And our proprietary recession indicator, which anticipates recessions by an average of eight months, has still not yet triggered, though it is getting close. Of course, it's not all sunshine and roses, as job growth has more than halved from 600,000 new jobs per month a year ago to 250,000 today, wages are decelerating, and the Fed is likely to bring rates to 5% while inflation drops to around 3% by year-end. But until the COVID stimulus/excess savings is spent, probably by the end of 2023, the economy is likely to keep growing, with 2024 being a bigger recession risk, especially if inflation falls but not all the way to 2%, which could cause the Fed to resume rate hikes.

The 2024 recession is likely to be deep because for inflation to fall to 2%, it would require either zero growth for nearly three years or a 2% decline in economic activity in one year. A normal recession is thus much more probable, most likely in 2024, when the excess savings run out and the Fed is still tight.

**The Reversal of the Great Inflation of 2021-2022 — Or Inflation Peaks, Drops, But Not Quite to 2%**

2022 saw core inflation skyrocket to a peak of 6.7% on the consumer price index (CPI) and 5.4% on personal consumption expenditures (PCE) in the U.S. That was a more than 400 bp acceleration from the lows of 2021. This inflation tsunami occurred in most developed and emerging markets. For example, the eurozone saw headline inflation hit nearly 11% in December (core 5.2%) from less than 2% in 2021.

Our framework has been that inflation has shifted structurally higher from the 2010s and that 2% could turn out to be a floor, rather than the ceiling that it was in the prior couple of decades. However, a combination of cyclical supply and demand factors did drive the acceleration in inflation to much higher levels than the structural trend would imply. Our work, partially based on research from the Federal Reserve of San Francisco, indicates that about half of the acceleration in core inflation was supply-driven and the other half demand-driven, and that most of the supply-driven acceleration is likely to recede, as it has started to, over the coming year. If indeed supply-driven inflation goes back from contributing 2.6% to its historical norm of 1.0%, we expect overall core inflation will fall to 3.5%. Demand-driven inflation is also slowing from 2.5% due to sub-par growth in 2022 but will likely require a deeper economic drawdown to drop back to its 0.8% historical contribution to overall inflation. Historically, it has taken a nearly 4% output gap widening for inflation to drop 150 bps. So without a recession, overall core inflation could drop to 3% or modestly below, but getting to the Fed's 2% target will likely require a recession.

However, we believe inflation will be dropping so dramatically in 2023 from the 2022 peak, mostly from easing supply-driven inflation, that the Fed is unlikely to decide to push the economy into a recession until it is clear that inflation is likely to stabilize at too high of a level. In addition, if the Fed gets to 5% policy rates, core inflation of 3% will result in positive 200 bps real rates. That level of real rates is usually sufficiently tight to trigger a significant slowdown when fiscal policy is not pushing in the other direction (as it is still doing through the spending of the reservoir of saved fiscal transfers). We therefore expect a pause starting in March until at least September while the Fed assesses how low inflation will be dropping and whether growth slows enough to reduce inflationary pressures in the labor market. Eventually, if we are correct that demand-driven inflation can only be cured by more slack in the economy and the labor market, the Fed will need to either raise rates even further or at least hold them at 5% for longer than is expected by the market.

There is, of course, the possibility that inflation drops a lot more than expected — a scenario we, and others, have labeled "Immaculate Disinflation," where core inflation drops back to 2% without the unemployment rate rising much and without a recession. The likeliest causes for this would be that most of the inflation we have observed in the past two years was driven by supply issues, not only in goods

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Multi-Asset Real Return Portfolio**

but also in the labor market, and/or that prices slide back down very steep supply curves as the overheated demand environment of 2020-2021 cools back to normalcy. This Immaculate Disinflation scenario would enable an economic soft-landing with rate cuts in late 2023-early 2024 and a renewed economic expansion for a few years. This is clearly the most contrarian scenario for markets as it would argue for a continuing rally in stocks (and bonds) and a rebound in commodities.

**Bear Market Interrupted But Not Complete**

In addition to forecasting an imminent, short and shallow recession, the market consensus generally expects that stocks will have a difficult first half of 2023, with recession and weaker earnings as drivers, but will rebound in the second half on recession exit, bottoming earnings and Fed cuts. However, we believe that this framework is based on the past two decades where inflation was absent and economic/earnings cycles drove stock market performance. The current market cycle is driven more by inflation, reminiscent of the 1965-1985 era. During those inflation-driven cycles, the stock market tended to bottom with peaks in inflation, policy rates and bond yields, not with economic activity troughs, which tended to occur a few months or quarters later. And a peak in inflation, policy rate expectations and bond yields is what we saw in the fourth quarter: core CPI peaked at 6.7%, terminal fed funds expectations peaked at 5.15%, nominal yields peaked at 4.34% and TIPS at 1.79% (intraday). With inflation on its way to 3%, fed funds likely to peak around 5%, nominal yields at 3.7% and TIPS at 1.3%, inflation fears and Fed fears have likely peaked, at least for the foreseeable future. As a result, the stock market low in October could prove a lot more durable than the consensus expects, at least until the Fed is forced to reconsider, if inflation turns out too sticky or the economy slips into recession — both of which we don't expect until the later part of the year. Net-net, our growth, inflation and Fed scenarios argue for a stronger first half 2023 for stocks but a tougher second half and 2024 with inflation unfinished business.

As a result of these views, we have been overweight equities (in the eurozone) and bonds (mostly U.S. and emerging markets) since October. However, we recognize that equities, in the U.S. in particular, have likely not fully adjusted to the higher inflation regime and the end of "free" money. We have discussed at length our views that the 2009-2022 bull market ended in the type of speculative mania that usually takes years to unwind. Despite an 18% decline in 2022 (S&P 500 Index), U.S. stocks never got

close to being cheap at the lows and are currently back to expensive levels which are inconsistent with inflation still forecasted to be above target in a year, with positive real interest rates both at the short and the long end, and the likelihood of a Fed-engineered recession in 2024. For this reason, we have tilted our equity overweight to the eurozone where equities did get cheap in October (10.5x forward earnings per share), the eurozone economy is likely exiting an energy-shock-driven recession, and underlying inflation is less likely to require severe monetary tightening and a recession.

In addition, we fully expect to reduce this equity overweight and move back to an underweight position if our macroeconomic scenario for 2023 plays out. It is worth remembering that, after the late 1990s bubble, it took three years for S&P multiples to compress from 25x to 14x and another six years (and the Global Financial Crisis) to get to outright cheap levels of 10x — and that was with inflation below 1%, trillions of dollars in quantitative easing (QE,) zero interest rate policy (ZIRP), and hundreds of billions of dollars in fiscal stimulus. This cycle, U.S. multiples compressed from 23x to 15.5x and are already back to 17x with inflation at twice the target and rates on their way to 5%. In 140 years, a secular bull market in U.S. stocks has never started with such high earnings multiples — the start of the next secular bull market is likely years away.

**Leaders of the Next Cycle Emerging**

We have long been of the view that winners of one decade are rarely winners of the next. This is an easily observable phenomenon over the past 60-70 years for which financial data is widely available. This has applied to stocks and stock market indices, to industries and themes, as well as to investment styles and countries. The long stock bull market of the past 12 years saw some very powerful leadership trends which we believe are in the process of changing or reversing, or soon will. In the section below, we highlight five new areas of leadership which will become more visible in 2023 and will likely persist over the coming years.

**• Value Bull Market Continues (Has Anyone Noticed?)**

&nbsp;&nbsp;&nbsp;&nbsp;The 2009-2021 bull market saw one of the most powerful advances in Growth stocks of the past half century. Growth stocks (using the Russell 1000 Growth Index) outperformed Value stocks (the Russell 1000 Value Index) by 145% from their trough in 2006, with the last

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Multi-Asset Real Return Portfolio**

four years (2017-2020) seeing 90% outperformance. That is even bigger than the 1990s 76% Growth (relative) bull market (with 1998-2000 seeing +65%). Interestingly, since the summer of 2020, Value stocks have outperformed Growth significantly, but few market participants appear to be viewing this as what it is: the end of the Growth bull market of the 2010s and the beginning of the Value bull market of the 2020s. This is partially understandable since it has been so long since Value stocks have had a sustained period of outperformance — more than 15 years — and anything that goes for a decade has a way of convincing everyone that it is the new reality. In practice, this is exactly what gives rise to the tremendous opportunity we see in Value stocks: the trend has already begun (two years ago), but the valuation gap between Value and Anti-Value is still tremendous and few are actually positioned for sustained outperformance. For the past decade, selling the Value rips and buying the Growth dips was the recipe for success — the opposite is now operational: sell the Growth rips and buy the Value dips. Importantly, Value stocks are cheap and attractive not just in the U.S., but in Europe, Japan and emerging markets as well.

**• The Rise of the Rest**

&nbsp;&nbsp;&nbsp;&nbsp;U.S. stocks have trounced non-U.S. stocks for so long that many U.S. allocators are starting to wonder: why bother with the trouble of non-U.S. investing? The best and largest economy is right here at home, with the best companies, the most innovation, the deepest capital markets, the best shareholder protections. All true or at least partially true, but also misleading on two counts: first, that is more of a description of the past decade than the next decade and, second, it does not address the most important driver of future returns, the price being paid.

&nbsp;&nbsp;&nbsp;&nbsp;Since 2009, the U.S. benefited from an absence of serious crises (having earlier suffered from a housing and banking bust), low inflation, easy money, an appreciating currency, a tech boom, a corporate tax cut — no wonder U.S. stocks outperformed non-U.S. stocks by

approximately 280% (as represented by the S&P 500 Index and MSCI ACWI ex U.S. Index, respectively)! However, it became increasingly clear to us that the many advantages U.S. stocks benefited from in the 2010s are reversing in the 2020s: the U.S. economy is the most overheated of major economies with inflation most entrenched and the U.S. is also facing the highest policy rates in the developed world, both of which increase the likelihood of an eventual recession; the U.S. dollar bull market is likely over; and overpriced tech stocks are no longer an advantage. In addition, U.S. stocks have gone from trading at par with global stocks in 2009 to trading at the biggest premium ever. Expensive valuations and a clear weakening in previously superior fundamentals likely mark the beginning of the end of the U.S.'s outperformance. Unlike the Value bull market, which has been in train for two years, international stocks' outperformance is a nascent trend, having just started in October 2022, but one we expect to last many years. Within "international" stocks, we expect almost all of the following to outperform U.S. equities:

**• Japan's Back:**

&nbsp;&nbsp;&nbsp;&nbsp;After a 30-year derating, Japanese equities are priced at an attractive 20% discount to U.S. equities and the yen is now so cheap that manufacturing unit labor costs are lower in Japan than in China. Even though Japan is not experiencing an inflation surge like the U.S. or even the eurozone, there are indications that Japan is likely exiting its 20-year deflation nightmare with land prices finally beginning to rise and "true" core inflation approaching 2%. Monetary policy is likely to begin normalizing over the coming quarters but is unlikely to get tight, as inflation is not excessive, simply returning to target. In addition, due to 30 years of underperformance, Japan has fallen into total indifference from major asset allocators (remembering that the opposite of love is not hate, but indifference!) All in all, Japan is a cheap equity market with a competitive economy coming out of deflation — a very attractive combination.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Multi-Asset Real Return Portfolio**

**• EMU Survives the Seven Plagues:**

&nbsp;&nbsp;&nbsp;&nbsp;In the 2010s, the eurozone suffered multiple episodes of sovereign debt panic, with five countries ultimately requiring bailouts or support from the European Union, and just when the peripheral crises began to ebb, Brexit caused another panic in the eurozone. The 2020s were supposed to turn the page on crises when Russia unexpectedly invaded Ukraine, causing an energy shock as big as the twin oil shocks of the 1970s. Each of these seven crises took European equities to new lows relative to the U.S.: by October 2022, eurozone equities had underperformed U.S. equities by a staggering 72% in common currency with the help of the euro going back below parity for the first time since the early days of the common currency. At the recent low, eurozone equities were trading at a 36% discount to U.S. equities, nearly twice their normal discount. Even after outperforming by more than 20% in the past three months, EMU equities still trade at a 28% discount to the U.S., and it is looking increasingly likely that the worst of the energy crisis has passed (after huge energy demand destruction and a big shift in sources of supply) and that the economy is exiting a mild and short recession. The ECB is normalizing policy rates, but given much lower wage growth, it will likely not need to raise rates into restrictive territory (though that is a risk). Most investors are still shell-shocked from the most recent crisis and remain pessimistic. Again, this is a cheap market (at least relative to the U.S.), exiting a recession and a crisis, with still deeply oversold conditions and a very competitive exchange rate — we have been overweight eurozone equities unhedged (funded by a U.S. underweight) and continue to expect outperformance in 2023 (and likely beyond).

**• EM ex-China Emerges from the Gloom:**

&nbsp;&nbsp;&nbsp;&nbsp;Similar to Japan and Europe, though for different reasons, emerging markets (EM) have underperformed significantly in the past decade. A big part of it was the unwind of the EM/China/BRICs/commodities boom of the 2000s. Another was the shift to large-cap tech, which are only really present in China, Korea

and Taiwan, stranding the rest of EM. The rest was poor economic policy (Turkey, South Africa, Brazil, and others). With now nearly 12 years' distance from the peak of the EM boom in 2010, EM ex-China equities have nearly roundtripped to their post-Asian crisis (relative) lows. The valuations are not quite as low as in 1998 to 2001, but EM ex-China equities recently hit a 44% discount to the U.S. (though are now at a 28% discount). Just like the euro and the yen, EM ex-China currencies are the most competitive they have been in 30 years. In 2023, we expect EM ex-China GDP growth to outperform U.S. and developed markets GDP, usually a strong catalyst for earnings and market outperformance, particularly from such a low valuation and currency starting point.

**• U.S. Dollar Bear Market has Begun:**

&nbsp;&nbsp;&nbsp;&nbsp;Similar to U.S. equities and for some of the same reasons, the U.S. dollar has performed spectacularly in the past decade. The combination of the housing and banking bust of 2008-2009 and multiple rounds of QE/ZIRP had taken the U.S. dollar to its weakest level in real effective terms since Bretton Woods. From this record-low starting point, the U.S. dollar exploded into a spectacular 11-year bull market supported in the last two years by an overheating economy and an increasingly hawkish Fed. We expect that the U.S. dollar bull market has ended and that a U.S. dollar bear market has begun. The catalyst for the turn was the triple peak in inflation, Fed expectations and bond yields in the fourth quarter. The trend towards a weaker U.S. dollar will continue as non-U.S. growth improves over 2023 and non-U.S. central banks tighten monetary policy. A recession in late 2023 or 2024 would seal the deal for the U.S. dollar bear market, but that is still a long ways off — multiple dollar bear market rallies are likely over the coming year, but the past decade's trend has reversed.

**Bonds: The Long Nightmare for Bond Holders is Over**

For more than a decade, as central banks fought one deflationary crisis after another (housing, banking,

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Multi-Asset Real Return Portfolio**

peripheral, COVID), real yields collapsed further and further into negative territory, culminating in an average –2% real yield across the U.S., Germany, Japan and the U.K. in early 2022. Never had governments paid so little to bondholders. As one pundit described it: return-free risk. The inflation shock of 2021-2022 and the tardy monetary policy response caused a huge backup in policy rates and market yields, resulting in the worst drawdown for government bonds in history. One small silver lining is that one market now offers real yields high enough for some potential return and some deflation protection: the U.S., with real yields near a range between 1.35% (10-year) and 2.25% (2-year). But with negative carry and roll between –20 bps and –110 bps, extending duration at the current time is costly. Over the medium term, we expect that the end of the low inflation regime will prevent the return of nominal yields to the low levels seen over the past decade. However, secular downward pressures on real interest rates, such as slowing trend growth in most major economies and large aggregate debt burdens, will ultimately lead to lower medium- and long-term real yields. In other words, medium-term inflation swaps that price in a return to the low-flation environment are poised to be repriced wider. In light of the continuing cyclical disinflation we expect this year, this repricing will likely play out with some delay. Most other markets' real yields are still too low, close to zero, not offering any real return potential nor much deflation protection. A potential opportunity for steepeners is building in the U.S. as peaking inflation finally causes terminal Fed expectations to decline.

![](j23279227_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on June 18, 2018.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Multi-Asset Real Return Portfolio**

**Performance Compared to the Bloomberg U.S. Treasury Bill 1-3 Month Index<sup>(1)</sup>, the MSIF Multi-Asset Real Return Blend Index<sup>(2)</sup> and the Lipper Real Return Funds Index<sup>(3)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(6)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(5)</sup> | 3.11% |  |  | 7.62% |
| Fund — Class A Shares <br>w/o sales charges<sup>(5)</sup> | 2.75 |  |  | 7.23 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(5)</sup> | –2.68 |  |  | 5.98 |
| Fund — Class C Shares <br>w/o sales charges<sup>(5)</sup> | 2.00 |  |  | 6.44 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(5)</sup> | 1.02 |  |  | 6.44 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(5)</sup> | 3.16 |  |  | 7.66 |
| Bloomberg U.S. Treasury <br>Bill 1-3 Month Index | 1.52 |  |  | 1.19 |
| MSIF Multi-Asset Real Return <br>Blend Index | 1.52 |  |  | 10.71 |
| Lipper Real Return Funds Index | –5.02 |  |  | 4.34 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Bloomberg U.S. Treasury Bills 1-3 Month Index is designed to measure the performance of public obligations of the U.S. Treasury that have a remaining maturity of greater than or equal to one month and less than three months. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The MSIF Multi-Asset Real Return Blend Index is a performance linked benchmarks of the old and new benchmark of the Fund. The old benchmark represented by MSCI World Net Index (index that is designed to measure the equity market performance of developed markets) from the Fund's inception to August 30, 2021 to the new benchmark represented by Bloomberg U.S. Treasury Bill 1-3 Month Index for periods thereafter. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(3)</sup> The Lipper Real Return Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Real Return Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Real Return Funds classification.

<sup>(4)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(5)</sup> Commenced operations on June 18, 2018. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(6)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Multi-Asset Real Return Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (23.0%)** | **Common Stocks (23.0%)** | **Common Stocks (23.0%)** |
| Australia (1.3%) | Australia (1.3%) | Australia (1.3%) |
| Capricorn Metals Ltd. (a) | 6967 | $22 |
| Evolution Mining Ltd. | 35310 | 72 |
| Gold Road Resources Ltd. | 19272 | 22 |
| Newcrest Mining Ltd. | 12705 | 178 |
| Northern Star Resources Ltd. | 21081 | 158 |
| Perseus Mining Ltd. | 24678 | 36 |
| Ramelius Resources Ltd. | 5435 | 4 |
| Regis Resources Ltd. | 13955 | 20 |
| Silver Lake Resources Ltd. (a) | 17622 | 14 |
| St. Barbara Ltd. (a)(b) | 17483 | 9 |
| West African Resources Ltd. (a) | 19950 | 16 |
|  |  | 551 |
| Canada (4.4%) | Canada (4.4%) | Canada (4.4%) |
| Agnico-Eagle Mines Ltd. | 5367 | 279 |
| Alamos Gold, Inc., Class A | 6692 | 68 |
| Aya Gold & Silver, Inc. (a) | 1701 | 11 |
| B2Gold Corp. | 18460 | 66 |
| Barrick Gold Corp. | 20888 | 359 |
| Centerra Gold, Inc. | 4326 | 22 |
| Dundee Precious Metals, Inc. | 3346 | 16 |
| Eldorado Gold Corp. (a) | 3116 | 26 |
| Endeavour Silver Corp. (a)(b) | 3267 | 11 |
| Equinox Gold Corp. (a)(b) | 5507 | 18 |
| First Majestic Silver Corp. | 4420 | 37 |
| Fortuna Silver Mines, Inc. (a) | 4887 | 18 |
| Franco-Nevada Corp. | 2254 | 308 |
| GoGold Resources, Inc. (a) | 1475 | 2 |
| IAMGOLD Corp. (a) | 8827 | 23 |
| K92 Mining, Inc. (a) | 3972 | 22 |
| Karora Resources, Inc. (a) | 662 | 2 |
| Kinross Gold Corp. | 21809 | 89 |
| New Gold, Inc. (a) | 11517 | 11 |
| OceanaGold Corp. (a) | 12379 | 24 |
| Osisko Gold Royalties Ltd. | 3096 | 37 |
| Pan American Silver Corp. (b) | 3767 | 62 |
| Sandstorm Gold Ltd. | 4526 | 24 |
| Silvercorp Metals, Inc. | 661 | 2 |
| SSR Mining, Inc. | 3703 | 58 |
| Torex Gold Resources, Inc. (a) | 1491 | 17 |
| Victoria Gold Corp. (a) | 323 | 2 |
| Wesdome Gold Mines Ltd. (a) | 2594 | 14 |
| Wheaton Precious Metals Corp. | 5396 | 211 |
| Yamana Gold, Inc. | 16192 | 90 |
|  |  | 1929 |
| China (0.4%) | China (0.4%) | China (0.4%) |
| Zhaojin Mining Industry Co., Ltd. H Shares (a)(c) | 46963 | 52 |
| Zijin Mining Group Co., Ltd. H Shares (c) | 100805 | 135 |
|  |  | 187 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Peru (0.1%) | Peru (0.1%) | Peru (0.1%) |
| Cia de Minas Buenaventura SAA ADR | 4019 | $30 |
| South Africa (0.8%) | South Africa (0.8%) | South Africa (0.8%) |
| AngloGold Ashanti Ltd. ADR | 7055 | 137 |
| DRDGOLD Ltd. ADR (b) | 1472 | 11 |
| Gold Fields Ltd. ADR (b) | 15318 | 159 |
| Harmony Gold Mining Co., Ltd. ADR (b) | 10008 | 34 |
|  |  | 341 |
| United Kingdom (0.3%) | United Kingdom (0.3%) | United Kingdom (0.3%) |
| Centamin PLC | 19328 | 26 |
| Endeavour Mining PLC | 4238 | 91 |
|  |  | 117 |
| United States (15.7%) | United States (15.7%) | United States (15.7%) |
| Alexandria Real Estate Equities, Inc. REIT | 342 | 50 |
| American Homes 4 Rent, Class A REIT | 690 | 21 |
| American Tower Corp. REIT | 1006 | 213 |
| APA Corp. | 289 | 13 |
| AvalonBay Communities, Inc. REIT | 308 | 50 |
| Baker Hughes Co. | 841 | 25 |
| Boston Properties, Inc. REIT | 328 | 22 |
| Camden Property Trust REIT | 224 | 25 |
| CBRE Group, Inc., Class A (a) | 721 | 55 |
| Cheniere Energy, Inc. | 195 | 29 |
| Chevron Corp. | 1594 | 286 |
| Coeur Mining, Inc. (a) | 4513 | 15 |
| ConocoPhillips | 1104 | 130 |
| Coterra Energy, Inc. | 687 | 17 |
| Crown Castle International Corp. REIT | 954 | 129 |
| Devon Energy Corp. | 535 | 33 |
| Diamondback Energy, Inc. | 144 | 20 |
| Digital Realty Trust, Inc. REIT | 628 | 63 |
| EOG Resources, Inc. | 500 | 65 |
| EQT Corp. | 284 | 10 |
| Equinix, Inc. REIT | 201 | 132 |
| Equity Lifestyle Properties, Inc. REIT | 389 | 25 |
| Equity Residential REIT | 788 | 47 |
| Essex Property Trust, Inc. REIT | 144 | 31 |
| Extra Space Storage, Inc. REIT | 296 | 44 |
| Exxon Mobil Corp. | 3596 | 397 |
| Gaming and Leisure Properties, Inc. REIT | 563 | 29 |
| General Dynamics Corp. | 1450 | 360 |
| Halliburton Co. | 770 | 30 |
| Healthcare Realty Trust, Inc. REIT | 839 | 16 |
| Healthpeak Properties, Inc. REIT | 1189 | 30 |
| Hecla Mining Co. | 9667 | 54 |
| Hess Corp. | 238 | 34 |
| Host Hotels & Resorts, Inc. REIT | 1576 | 25 |
| Huntington Ingalls Industries, Inc. | 210 | 48 |
| Invitation Homes, Inc. REIT | 1346 | 40 |
| Iron Mountain, Inc. REIT | 641 | 32 |
| Kimco Realty Corp. REIT | 1362 | 29 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>12

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Multi-Asset Real Return Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Shares** | **Value<br>(000)** | **Value<br>(000)** |
| United States (cont'd) | United States (cont'd) | United States (cont'd) | United States (cont'd) |
| Kinder Morgan, Inc. | 1742 | $| 32 |
| L3Harris Technologies, Inc. | 1010 |  | 210 |
| Lockheed Martin Corp. | 1394 |  | 678 |
| Marathon Oil Corp. | 605 |  | 16 |
| Marathon Petroleum Corp. | 462 |  | 54 |
| Medical Properties Trust, Inc. REIT (b) | 1323 |  | 15 |
| Mid-America Apartment Communities, Inc. REIT | 254 |  | 40 |
| Newmont Corp. | 9533 |  | 450 |
| Northrop Grumman Corp. | 812 |  | 443 |
| Occidental Petroleum Corp. | 800 |  | 50 |
| ONEOK, Inc. | 381 |  | 25 |
| Phillips 66 | 411 |  | 43 |
| Pioneer Natural Resources Co. | 197 |  | 45 |
| ProLogis, Inc. REIT | 2034 |  | 229 |
| Public Storage REIT | 348 |  | 98 |
| Raytheon Technologies Corp. | 7779 |  | 785 |
| Realty Income Corp. REIT | 1326 |  | 84 |
| Regency Centers Corp. REIT | 342 |  | 21 |
| Royal Gold, Inc. | 1129 |  | 127 |
| SBA Communications Corp. REIT | 237 |  | 66 |
| Schlumberger NV | 1206 |  | 64 |
| Simon Property Group, Inc. REIT | 724 |  | 85 |
| Sun Communities, Inc. REIT | 268 |  | 38 |
| Targa Resources Corp. | 185 |  | 14 |
| Texas Pacific Land Corp. | 4 |  | 9 |
| UDR, Inc. REIT | 702 |  | 27 |
| Valero Energy Corp. | 348 |  | 44 |
| Ventas, Inc. REIT | 881 |  | 40 |
| VICI Properties, Inc. REIT | 2123 |  | 69 |
| Vornado Realty Trust REIT | 359 |  | 7 |
| Welltower, Inc. REIT | 1000 |  | 66 |
| Weyerhaeuser Co. REIT | 1641 |  | 51 |
| Williams Cos., Inc. | 1040 |  | 34 |
| WP Carey, Inc. REIT | 426 |  | 33 |
| Zillow Group, Inc., Class C (a) | 357 |  | 12 |
|  |  |  | 6778 |
| **Total Common Stocks (Cost $8,828)** | **Total Common Stocks (Cost $8,828)** |  | 9933 |
|  | **Face<br>Amount<br>(000)** |  |  |
| **Sovereign (8.2%)** | **Sovereign (8.2%)** | **Sovereign (8.2%)** | **Sovereign (8.2%)** |
| Canada (8.2%) | Canada (8.2%) | Canada (8.2%) | Canada (8.2%) |
| Canadian Government Real Return Bond,<br>3.00%, 12/1/36 **(Cost $3,639)** | 3953 |  | 3535 |
| **U.S. Treasury Securities (38.6%)** | **U.S. Treasury Securities (38.6%)** | **U.S. Treasury Securities (38.6%)** | **U.S. Treasury Securities (38.6%)** |
| United States (38.6%) | United States (38.6%) | United States (38.6%) | United States (38.6%) |
| U.S. Treasury Inflation-Indexed Bonds,<br>0.13%, 7/15/24 — 4/15/25 | $4954 |  | 4764 |
| 0.25%, 1/15/25 | 1628 |  | 1562 |
| 0.38%, 7/15/25 | 1626 |  | 1562 |
| 0.50%, 4/15/24 | 1604 |  | 1560 |

---

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| 0.63%, 1/15/24 — 7/15/32 | $6112 | $5706 |
| 2.38%, 1/15/25 | 1495 | 1497 |
| **Total U.S. Treasury Securities <br>(Cost $16,722)** | **Total U.S. Treasury Securities <br>(Cost $16,722)** | 16651 |
|  | **Shares** |  |
| **Short-Term Investments (26.1%)** | **Short-Term Investments (26.1%)** | **Short-Term Investments (26.1%)** |
| Securities held as Collateral on Loaned Securities (0.2%) | Securities held as Collateral on Loaned Securities (0.2%) | Securities held as Collateral on Loaned Securities (0.2%) |
| Investment Companies (0.2%) | Investment Companies (0.2%) | Investment Companies (0.2%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 79230 | 79 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.0%) (d) | Repurchase Agreements (0.0%) (d) | Repurchase Agreements (0.0%) (d) |
| HSBC Securities USA, Inc. (4.27%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $8; fully collateralized <br>by a U.S. Government obligation; <br>4.38% due 5/15/41; valued at $8) | $8 | 8 |
| Merrill Lynch & Co., Inc. (4.25%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $7; fully collateralized <br>by a U.S. Government obligation; <br>1.50% due 2/15/25; valued at $7) | 7 | 7 |
|  |  | 15 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $94)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $94)** | 94 |
|  | **Shares** |  |
| Investment Company (25.9%) | Investment Company (25.9%) | Investment Company (25.9%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $11,198)** | 11198228 | 11198 |
| **Total Short-Term Investments (Cost $11,292)** | **Total Short-Term Investments (Cost $11,292)** | 11292 |
| **Total Investments (95.9%) (Cost $40,481) <br>Including $317 of Securities Loaned (e)(f)(g)** | **Total Investments (95.9%) (Cost $40,481) <br>Including $317 of Securities Loaned (e)(f)(g)** | 41411 |
| Other Assets in Excess of Liabilities (4.1%) | Other Assets in Excess of Liabilities (4.1%) | 1784 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $43195 |

---

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

(a) Non-income producing security.

(b) All or a portion of this security was on loan at December 31, 2022.

(c) Security trades on the Hong Kong exchange.

(d) Amount is less than 0.05%.

(e) Securities are available for collateral in connection with open foreign currency forward exchange contracts, futures contracts and swap agreements.

(f) The approximate fair value and percentage of net assets, $764,000 and 1.8%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Multi-Asset Real Return Portfolio**

(g) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $41,413,000. The aggregate gross unrealized appreciation is approximately $2,948,000 and the aggregate gross unrealized depreciation is approximately $2,262,000, resulting in net unrealized appreciation of approximately $686,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

**Foreign Currency Forward Exchange Contracts:**

The Fund had the following foreign currency forward exchange contracts open at December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts to<br>Deliver<br>(000)** | **In Exchange<br>For<br>(000)** | **In Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| BNP Paribas SA | $414 | EUR | 386 | 3/16/23 | $2 |
| Citibank NA | $1878 | CHF | 1720 | 3/16/23 | (3) |
| Citibank NA | $1471 | EUR | 1374 | 3/16/23 | 6 |
| Citibank NA | $430 | JPY | 57343 | 3/16/23 | 12 |
| JPMorgan Chase Bank NA | $37 | CAD | 50 | 3/16/23 | 1 |
| JPMorgan Chase Bank NA | $1900 | GBP | 1529 | 3/16/23 | (49) |
| JPMorgan Chase Bank NA | $1461 | JPY | 195022 | 3/16/23 | 39 |
|  |  |  |  |  | $8 |

---

**Futures Contracts:**

The Fund had the following futures contracts open at December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Number of<br>Contracts** | **Expiration<br>Date** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Unrealized<br>Appreciation<br>(000)** |
| **Long:** | **Long:** | **Long:** | **Long:** | **Long:** | **Long:** |
| Brent Crude (United Kingdom) | 47 | Oct-23 | $47 | $3837 | $1 |
| Gold 100 Oz (United States) | 14 | Feb-23 | 1 | 2557 | 101 |
| **Short:** | **Short:** | **Short:** | **Short:** | **Short:** | **Short:** |
| S&P 500 E Mini Index (United States) | 46 | Mar-23 | (2) | (8880) | 294 |
|  |  |  |  |  | $396 |

---

**Interest Rate Swap Agreements:**

The Fund had the following interest rate swap agreements open at December 31, 2022:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap Counterparty** | **Floating Rate<br>Index** | **Pay/Receive<br>Floating Rate** | **Fixed<br>Rate** | **Payment<br>Frequency<br>Paid/<br>Received** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Morgan Stanley & Co. LLC\* | US CPI All Urban<br>Consumers Index | <br>Pay | 2.91% | Semi-Annual/<br>Quarterly | <br>12/15/26 | $2523 | $(87) | $— | $(87) |
| Morgan Stanley & Co. LLC\* | US CPI All Urban<br>Consumers Index | <br>Pay | 3.28 | Semi-Annual/<br>Quarterly | <br>3/3/27 | 7995 | (26) |  | (26) |
| Morgan Stanley & Co. LLC\* | US CPI All Urban<br>Consumers Index | <br>Receive | 2.68 | Semi-Annual/<br>Quarterly | <br>12/15/31 | 4629 | 178 |  | 178 |
| Morgan Stanley & Co. LLC\* | US CPI All Urban<br>Consumers Index | <br>Receive | 2.92 | Semi-Annual/<br>Quarterly | <br>3/3/32 | 7995 | 20 |  | 20 |
|  |  |  |  |  |  |  | $85 | $— | $85 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Multi-Asset Real Return Portfolio**

**Total Return Swap Agreements:**

The Fund had the following total return swap agreements open at December 31, 2022:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap Counterparty** | **Index** | **Pay/Receive<br>Total Return<br>of Referenced<br>Index** | **Floating<br>Rate** | **Payment<br>Frequency** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(000)** |
| BNP Paribas SA | MSCI USA <br>Information<br>Technology Index<sup>††</sup> | Pay | SOFR + 0.33% | Quarterly | 12/13/23 | $2930 | $27 | $— | $27 |
| BNP Paribas SA | MSCI USA<br>Industrials Index<sup>††</sup> | Receive | SOFR + 0.33% | Quarterly | 12/13/23 | 2932 | 12 |  | 12 |
|  |  |  |  |  |  |  | $39 | $— | $39 |

---

†† See tables below for details of the equity basket holdings underlying the swaps.

The following table represents the equity basket holdings underlying the total return swap with MSCI USA Information Technology Index as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value <br>(000)** | **Index Weight** |
| **MSCI USA Information Technology Index** | **MSCI USA Information Technology Index** | **MSCI USA Information Technology Index** | **MSCI USA Information Technology Index** |
| Accenture PLC — Class A | 633 | $169 | 1.91% |
| Adobe, Inc. | 468 | 157 | 1.78 |
| Advanced Micro Devices | 1614 | 105 | 1.18 |
| Amphenol Corp. — Class A | 595 | 45 | 0.51 |
| Analog Devices, Inc. | 514 | 84 | 0.95 |
| Applem Inc. | 16071 | 2088 | 23.60 |
| Applied Materials, Inc. | 860 | 84 | 0.95 |
| Arista Networks, Inc. | 243 | 30 | 0.33 |
| Autodesk, Inc. | 217 | 41 | 0.46 |
| Automatic Data Processing | 416 | 99 | 1.12 |
| Block, Inc. | 530 | 33 | 0.38 |
| Broadcom, Inc. | 404 | 226 | 2.55 |
| Cadence Design System, Inc. | 274 | 44 | 0.50 |
| Cisco Systems, Inc. | 4141 | 197 | 2.23 |
| Cognizant Tech Solutions — Class A | 518 | 30 | 0.33 |
| Enphase Energy, Inc. | 135 | 36 | 0.41 |
| Fidelity National Info Services, Inc. | 608 | 41 | 0.47 |
| Fiserv, Inc. | 608 | 61 | 0.69 |
| Fortinet, Inc. | 670 | 33 | 0.37 |
| Global Payments, Inc. | 277 | 28 | 0.31 |
| HP, Inc. | 1034 | 28 | 0.31 |
| Intel Corp. | 4106 | 109 | 1.23 |
| Intl Business Machines Corp. | 903 | 127 | 1.44 |
| Intuit, Inc. | 268 | 104 | 1.18 |
| Keysight Technologies, Inc. | 179 | 31 | 0.35 |
| KLA Corp. | 142 | 53 | 0.60 |
| Lam Research Corp. | 137 | 58 | 0.65 |
| Marvell Technology, Inc. | 853 | 32 | 0.36 |
| Mastercard, Inc. — Class A | 863 | 300 | 3.39 |
| Microchip Technology, Inc. | 552 | 39 | 0.44 |
| Micron Technology, Inc. | 1103 | 55 | 0.62 |
| Microsoft Corp. | 7085 | 1699 | 19.21 |
| Motorola Solutions, Inc. | 167 | 43 | 0.49 |
| Nvidia Corp. | 2490 | 364 | 4.11 |
| Nxp Semiconductors NV | 263 | 41 | 0.47 |
| ON Semiconductor | 433 | 27 | 0.31 |
| Oracle Corp. | 1599 | 131 | 1.48 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Multi-Asset Real Return Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value <br>(000)** | **Index Weight** |
| **MSCI USA Information Technology Index (cont'd)** | **MSCI USA Information Technology Index (cont'd)** | **MSCI USA Information Technology Index (cont'd)** | **MSCI USA Information Technology Index (cont'd)** |
| Palo Alto Networks, Inc. | 299 | $42 | 0.47% |
| Paychex, Inc. | 324 | 37 | 0.42 |
| Paypal Holdings, Inc. | 1099 | 78 | 0.88 |
| Qualcomm, Inc. | 1123 | 123 | 1.40 |
| Roper Technologies, Inc. | 106 | 46 | 0.52 |
| Salesforce, Inc. | 1000 | 133 | 1.50 |
| Servicenow, Inc. | 202 | 78 | 0.89 |
| Snowflake, Inc. — Class A | 223 | 32 | 0.36 |
| Synopsys, Inc. | 153 | 49 | 0.55 |
| Te Connectivity Ltd. | 320 | 37 | 0.42 |
| Texas Instruments, Inc. | 914 | 151 | 1.71 |
| Visa, Inc. — Class A Shares | 1635 | 340 | 3.84 |
| Workday, Inc. — Class A | 201 | 34 | 0.38 |

---

The following table represents the equity basket holdings underlying the total return swap with MSCI USA Industrials Index as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value <br>(000)** | **Index Weight** |
| **MSCI USA Industrials Index** | **MSCI USA Industrials Index** | **MSCI USA Industrials Index** | **MSCI USA Industrials Index** |
| 3M Co. | 554 | $66 | 2.23% |
| Ametek, Inc. | 230 | 32 | 1.08 |
| Boeing Co. | 564 | 107 | 3.61 |
| Carrier Global Corp. | 842 | 35 | 1.17 |
| Caterpillar, Inc. | 528 | 126 | 4.25 |
| Cintas Corp. | 91 | 41 | 1.38 |
| Copart, Inc. | 428 | 26 | 0.87 |
| Costar Group, Inc. | 396 | 31 | 1.03 |
| CSX Corp. | 2141 | 66 | 2.23 |
| Cummins, Inc. | 141 | 34 | 1.15 |
| Deere & Co. | 290 | 124 | 4.18 |
| Dover Corp. | 144 | 19 | 0.65 |
| Eaton Corp PLC | 398 | 63 | 2.10 |
| Emerson Electric Co. | 591 | 57 | 1.91 |
| Equifax, Inc. | 122 | 24 | 0.80 |
| Fastenal Co. | 575 | 27 | 0.91 |
| Fedex Corp. | 247 | 43 | 1.44 |
| Ferguson PLC | 208 | 26 | 0.89 |
| Fortive Corp. | 338 | 22 | 0.73 |
| General Dynamics Corp. | 233 | 58 | 1.94 |
| General Electric Co. | 1097 | 92 | 3.09 |
| Honeywell International, Inc. | 674 | 144 | 4.85 |
| IDEX Corp. | 75 | 17 | 0.58 |
| Illinois Tool Works | 310 | 68 | 2.29 |
| Ingersoll-Rand, Inc. | 403 | 21 | 0.71 |
| Johnson Controls Internation | 689 | 44 | 1.48 |
| L3Harris Technologies, Inc. | 191 | 40 | 1.34 |
| Lockheed Martin Corp. | 239 | 116 | 3.90 |
| Norfolk Southern Corp. | 235 | 58 | 1.94 |
| Northrop Grumman Corp. | 147 | 80 | 2.69 |
| Old Dominion Freight Line | 95 | 27 | 0.91 |
| Otis Worldwide Corp. | 420 | 33 | 1.11 |
| Paccar, Inc. | 348 | 34 | 1.16 |
| Parker Hannifin Corp. | 128 | 37 | 1.26 |
| Quanta Services, Inc. | 143 | 20 | 0.68 |
| Raytheon Technologies Corp. | 1477 | 149 | 5.00 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Multi-Asset Real Return Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value <br>(000)** | **Index Weight** |
| **MSCI USA Industrials Index (cont'd)** | **MSCI USA Industrials Index (cont'd)** | **MSCI USA Industrials Index (cont'd)** | **MSCI USA Industrials Index (cont'd)** |
| Republic Services, Inc. | 221 | $29 | 0.96% |
| Rockwell Automation, Inc. | 115 | 30 | 1.00 |
| Trane Technologies PLC | 232 | 39 | 1.31 |
| Transdigm Group, Inc. | 52 | 32 | 1.09 |
| Uber Technologies, Inc. | 1485 | 37 | 1.23 |
| Union Pacific Corp. | 624 | 129 | 4.34 |
| United Parcel Service — Class B | 732 | 127 | 4.27 |
| United Rentals, Inc. | 70 | 25 | 0.84 |
| Verisk Analytics, Inc. | 157 | 28 | 0.93 |
| Wabtec Corp. | 173 | 17 | 0.58 |
| Waste Connections, Inc. | 257 | 34 | 1.15 |
| Waste Management, Inc. | 413 | 65 | 2.18 |
| Ww Grainger, Inc. | 46 | 25 | 0.86 |
| Xylem, Inc. | 180 | 20 | 0.67 |

---

\* Cleared swap agreement, the broker is Morgan Stanley & Co. LLC.

SOFR Secured Overnight Financing Rate.

CAD — Canadian Dollar

CHF — Swiss Franc

EUR — Euro

GBP — British Pound

JPY — Japanese Yen

USD — United States Dollar

**Portfolio Composition\***

---

| | | |
|:---|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** | **Percentage of<br>Total Investments** |
| U.S. Treasury Securities | 40.3 | % |
| Short-Term Investments | 27.1 |  |
| Metals & Mining | 9.2 |  |
| Other\*\* | 8.8 |  |
| Sovereign | 8.5 |  |
| Aerospace & Defense | 6.1 |  |
| Total Investments | 100.0 | %\*\*\* |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

\*\* 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 $15,274,000 and net unrealized appreciation of approximately $396,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $8,000. Also does not include open swap agreements with net unrealized appreciation of approximately $124,000.

The accompanying notes are an integral part of the consolidated financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Multi-Asset Real Return Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $29,204) | $30134 |  |
| Investment in Security of Affiliated Issuer, at Value (Cost $11,277) | 11277 |  |
| Total Investments in Securities, at Value (Cost $40,481) | 41411 |  |
| Foreign Currency, at Value (Cost $77) | 77 |  |
| Cash | 24 |  |
| Receivable for Variation Margin on Futures Contracts | 1254 |  |
| Due from Broker | 394 |  |
| Due from Adviser | 146 |  |
| Receivable for Fund Shares Sold | 91 |  |
| Receivable for Investments Sold | 90 |  |
| Unrealized Appreciation on Foreign Currency Forward Exchange Contracts | 60 |  |
| Interest Receivable | 50 |  |
| Receivable from Affiliate | 41 |  |
| Unrealized Appreciation on Swap Agreements | 39 |  |
| Dividends Receivable | 12 |  |
| Tax Reclaim Receivable | 4 |  |
| Receivable from Securities Lending Income |  | @ |
| Other Assets | 32 |  |
| **Total Assets** | 43725 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Professional Fees | 99 |  |
| Collateral on Securities Loaned, at Value | 94 |  |
| Due to Broker | 90 |  |
| Unrealized Depreciation on Foreign Currency Forward Exchange Contracts | 52 |  |
| Payable for Offering Costs | 30 |  |
| Payable for Custodian Fees | 14 |  |
| Payable for Fund Shares Redeemed | 10 |  |
| Payable for Shareholder Services Fees — Class A | 1 |  |
| Payable for Distribution and Shareholder Services Fees — Class C | 4 |  |
| Payable for Administration Fees | 3 |  |
| Deferred Capital Gain Country Tax | 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 R6\* |  | @ |
| Payable for Sub Transfer Agency Fees — Class I | 1 |  |
| Other Liabilities | 130 |  |
| **Total Liabilities** | 530 |  |
| **Net Assets** | $43195 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $42376 |  |
| Total Distributable Earnings | 819 |  |
| **Net Assets** | $43195 |  |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Multi-Asset Real Return Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $32578 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 3016322 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.80 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $5646 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 522301 |
| **Net Asset Value, Redemption Price Per Share** | $10.81 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.60 |
| **Maximum Offering Price Per Share** | $11.41 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $4957 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 462134 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.73 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $14 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1257 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.80 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $317 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>19

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Multi-Asset Real Return Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Interest from Securities of Unaffiliated Issuers | $1592 |
| Dividends from Securities of Unaffiliated Issuers (Net of $11 of Foreign Taxes Withheld) | 264 |
| Dividends from Security of Affiliated Issuer (Note G) | 112 |
| Income from Securities Loaned — Net |  |
| Total Investment Income | 1968 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 373 |
| Advisory Fees (Note B) | 235 |
| Registration Fees | 61 |
| Shareholder Services Fees — Class A (Note D) | 10 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 33 |
| Custodian Fees (Note F) | 32 |
| Administration Fees (Note C) | 31 |
| Pricing Fees | 19 |
| Sub Transfer Agency Fees — Class I | 12 |
| Sub Transfer Agency Fees — Class A | 3 |
| Sub Transfer Agency Fees — Class C | 1 |
| Transfer Agency Fees — Class I (Note E) | 2 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Directors' Fees and Expenses | 5 |
| Shareholder Reporting Fees | 2 |
| Other Expenses | 21 |
| Total Expenses | 847 |
| Expenses Reimbursed by Adviser (Note B) | (248 |
| Waiver of Advisory Fees (Note B) | (235 |
| Rebate from Morgan Stanley Affiliate (Note G) | (13 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Net Expenses | 349 |
| **Net Investment Income** | 1619 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold (Net of $2 of Capital Gain Country Tax) | (3261 |
| Foreign Currency Forward Exchange Contracts | 236 |
| Foreign Currency Translation | (4 |
| Futures Contracts | 1378 |
| Swap Agreements | 745 |
| Net Realized Loss | (906 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Increase in Deferred Capital Gain Country Tax of $—@) | 141 |
| Foreign Currency Forward Exchange Contracts | 8 |
| Foreign Currency Translation | (— |
| Futures Contracts | 307 |
| Swap Agreements | (357 |
| Net Change in Unrealized Appreciation (Depreciation) | 99 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (807 |
| Net Increase in Net Assets Resulting from Operations | $812 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>20

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Multi-Asset Real Return Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $1619 | $455 |
| Net Realized Gain (Loss) | (906 | 5204 |
| Net Change in Unrealized Appreciation (Depreciation) | 99 | (587 |
| Net Increase in Net Assets Resulting from Operations | 812 | 5072 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (1338 | (4078 |
| **Class A** | (200 | (56 |
| **Class C** | (162 | (133 |
| **Class R6\*** | (1 | (2 |
| Total Dividends and Distributions to Shareholders | (1701 | (4269 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 6573 | 8662 |
| Distributions Reinvested | 1338 | 4078 |
| Redeemed | (5538 | (677 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 8829 | 740 |
| Distributions Reinvested | 189 | 55 |
| Redeemed | (3952 | (— |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 4651 | 1208 |
| Distributions Reinvested | 162 | 133 |
| Redeemed | (727 | (660 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Distributions Reinvested | 1 | 2 |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 11526 | 13541 |
| Total Increase in Net Assets | 10637 | 14344 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 32558 | 18214 |
| End of Period | $43195 | $32558 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 596 | 767 |
| Shares Issued on Distributions Reinvested | 125 | 380 |
| Shares Redeemed | (520 | (60 |
| Net Increase in Class I Shares Outstanding | 201 | 1087 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 794 | 66 |
| Shares Issued on Distributions Reinvested | 18 | 5 |
| Shares Redeemed | (365 | (— |
| Net Increase in Class A Shares Outstanding | 447 | 71 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 429 | 108 |
| Shares Issued on Distributions Reinvested | 15 | 13 |
| Shares Redeemed | (68 | (55 |
| Net Increase in Class C Shares Outstanding | 376 | 66 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>21

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Multi-Asset Real Return Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 18, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $10.93 | $10.38 | $10.51 | $9.06 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(3)</sup> | 0.44 | 0.21 | 0.16 | 0.19 | 0.13 |
| Net Realized and Unrealized Gain (Loss) | (0.10) | 2.04 | (0.14) | 1.46 | (0.79) |
| Total from Investment Operations | 0.34 | 2.25 | 0.02 | 1.65 | (0.66) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.43) | (0.26) | (0.15) | (0.20) | (0.22) |
| Net Realized Gain | (0.04) | (1.44) |  |  |  |
| Paid-in-Capital |  |  |  | (0.00)<sup>(4)</sup> | (0.06) |
| Total Distributions | (0.47) | (1.70) | (0.15) | (0.20) | (0.28) |
| **Net Asset Value, End of Period** | $10.80 | $10.93 | $10.38 | $10.51 | $9.06 |
| **Total Return<sup>(5)</sup>** | 3.11% | 22.11% | 0.39% | 18.35% | (6.70)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $32578 | $30776 | $17942 | $10728 | $9033 |
| Ratio of Expenses Before Expense Limitation | 2.03% | 2.76% | 2.93% | 3.82% | 4.76%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.76%<sup>(6)</sup> | 0.79%<sup>(6)</sup> | 0.77%<sup>(6)</sup> | 0.76%<sup>(6)</sup> | 0.76%<sup>(6)(8)</sup> |
| Ratio of Net Investment Income | 4.03%<sup>(6)</sup> | 1.80%<sup>(6)</sup> | 1.68%<sup>(6)</sup> | 1.88%<sup>(6)</sup> | 2.52%<sup>(6)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.03% | 0.01% | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 797% | 232% | 68% | 65% | 26%<sup>(7)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(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.<br>22

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Multi-Asset Real Return Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 18, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $10.95 | $10.41 | $10.53 | $9.06 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(3)</sup> | 0.53 | 0.29 | 0.11 | 0.15 | 0.11 |
| Net Realized and Unrealized Gain (Loss) | (0.23) | 1.92 | (0.12) | 1.47 | (0.79) |
| Total from Investment Operations | 0.30 | 2.21 | (0.01) | 1.62 | (0.68) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.40) | (0.23) | (0.11) | (0.15) | (0.20) |
| Net Realized Gain | (0.04) | (1.44) |  |  |  |
| Paid-in-Capital |  |  |  | (0.00)<sup>(4)</sup> | (0.06) |
| Total Distributions | (0.44) | (1.67) | (0.11) | (0.15) | (0.26) |
| **Net Asset Value, End of Period** | $10.81 | $10.95 | $10.41 | $10.53 | $9.06 |
| **Total Return<sup>(5)</sup>** | 2.75% | 21.62% | 0.07% | 17.93% | (6.90)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $5646 | $826 | $43 | $42 | $9 |
| Ratio of Expenses Before Expense Limitation | 2.37% | 4.14% | 10.61% | 7.63% | 22.79%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.10%<sup>(6)</sup> | 1.14%<sup>(6)</sup> | 1.14%<sup>(6)</sup> | 1.14%<sup>(6)</sup> | 1.14%<sup>(6)(8)</sup> |
| Ratio of Net Investment Income | 4.94%<sup>(6)</sup> | 2.48%<sup>(6)</sup> | 1.18%<sup>(6)</sup> | 1.46%<sup>(6)</sup> | 2.18%<sup>(6)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.03% | 0.01% | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 797% | 232% | 68% | 65% | 26%<sup>(7)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(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.<br>23

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Multi-Asset Real Return Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(1)</sup>** | **2019<sup>(1)</sup>** | **Period from<br>June 18, 2018<sup>(2)</sup> to**<br>**December 31, 2018<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $10.90 | $10.36 | $10.50 | $9.06 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(3)</sup> | 0.45 | 0.08 | 0.05 | 0.07 | 0.07 |
| Net Realized and Unrealized Gain (Loss) | (0.23) | 2.04 | (0.14) | 1.48 | (0.79) |
| Total from Investment Operations | 0.22 | 2.12 | (0.09) | 1.55 | (0.72) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.35) | (0.14) | (0.05) | (0.11) | (0.16) |
| Net Realized Gain | (0.04) | (1.44) |  |  |  |
| Paid-in-Capital |  |  |  | (0.00)<sup>(4)</sup> | (0.06) |
| Total Distributions | (0.39) | (1.58) | (0.05) | (0.11) | (0.22) |
| **Net Asset Value, End of Period** | $10.73 | $10.90 | $10.36 | $10.50 | $9.06 |
| **Total Return<sup>(5)</sup>** | 2.00% | 20.80% | (0.81)% | 17.12% | (7.27)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4957 | $943 | $218 | $172 | $9 |
| Ratio of Expenses Before Expense Limitation | 3.09% | 4.04% | 5.10% | 8.50% | 23.55%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.82%<sup>(6)</sup> | 1.89%<sup>(6)</sup> | 1.89%<sup>(6)</sup> | 1.89%<sup>(6)</sup> | 1.89%<sup>(6)(8)</sup> |
| Ratio of Net Investment Income | 4.23%<sup>(6)</sup> | 0.69%<sup>(6)</sup> | 0.54%<sup>(6)</sup> | 0.68%<sup>(6)</sup> | 1.37%<sup>(6)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.03% | 0.01% | 0.01% | 0.01% | 0.01%<sup>(8)</sup> |
| Portfolio Turnover Rate | 797% | 232% | 68% | 65% | 26%<sup>(7)</sup> |

---

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(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.<br>24

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Multi-Asset Real Return Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020<sup>(2)</sup>** | **2019<sup>(2)</sup>** | **Period from<br>June 18, 2018<sup>(3)</sup> to**<br>**December 31, 2018<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $10.93 | $10.38 | $10.51 | $9.06 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(4)</sup> | 0.44 | 0.20 | 0.16 | 0.19 | 0.13 |
| Net Realized and Unrealized Gain (Loss) | (0.09) | 2.05 | (0.13) | 1.47 | (0.79) |
| Total from Investment Operations | 0.35 | 2.25 | 0.03 | 1.66 | (0.66) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.44) | (0.26) | (0.16) | (0.21) | (0.22) |
| Net Realized Gain | (0.04) | (1.44) |  |  |  |
| Paid-in-Capital |  |  |  | (0.00)<sup>(5)</sup> | (0.06) |
| Total Distributions | (0.48) | (1.70) | (0.16) | (0.21) | (0.28) |
| **Net Asset Value, End of Period** | $10.80 | $10.93 | $10.38 | $10.51 | $9.06 |
| **Total Return<sup>(6)</sup>** | 3.16% | 22.16% | 0.42% | 18.37% | (6.69)%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $14 | $13 | $11 | $11 | $9 |
| Ratio of Expenses Before Expense Limitation | 17.86% | 21.20% | 22.80% | 22.24% | 22.53%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 0.72%<sup>(7)</sup> | 0.74%<sup>(7)</sup> | 0.74%<sup>(7)</sup> | 0.74%<sup>(7)</sup> | 0.74%<sup>(7)(9)</sup> |
| Ratio of Net Investment Income | 4.03%<sup>(7)</sup> | 1.75%<sup>(7)</sup> | 1.62%<sup>(7)</sup> | 1.90%<sup>(7)</sup> | 2.53%<sup>(7)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.03% | 0.01% | 0.01% | 0.01% | 0.01%<sup>(9)</sup> |
| Portfolio Turnover Rate | 797% | 232% | 68% | 65% | 26%<sup>(8)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Operations.

(4) Per share amount is based on average shares outstanding.

(5) Amount is less than $0.005 per share.

(6) Calculated based on the net asset value as of the last business day of the period.

(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) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>25

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Multi-Asset Real Return Portfolio. The Fund seeks total return, targeted to be in excess of inflation, through capital appreciation and current income.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Multi-Asset Real Return 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented approximately $1,751,000 or approximately 4.05% of the total net 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.

**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/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/dealers; (3) 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; (4) OTC swaps may be valued by an outside pricing service approved by the Directors or quotes from a broker/dealer.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (6) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (7) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates,

respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The Fund invests a significant portion of its assets in securities of real estate investment trusts ("REITs"). The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $2524 | $— | $— | $2524 |
| Diversified <br>Telecommunication <br>Services | 66 |  |  | 66 |
| Energy Equipment & <br>Services | 119 |  |  | 119 |
| Equity Real Estate <br>Investment Trusts <br>(REITs) | 1956 |  |  | 1956 |
| Interactive Media & <br>Services | 12 |  |  | 12 |
| Media | 14 |  |  | 14 |
| Metals & Mining | 3023 | 764 |  | 3787 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Oil, Gas & <br>Consumable Fuels | $1400 | $— | $— | $1400 |
| Real Estate <br>Management & <br>Development | 55 |  |  | 55 |
| **Total Common Stocks** | **9169** | **764** | **—** | **9933** |
| **Sovereign** |  | 3535 |  | 3535 |
| **U.S. Treasury Securities** |  | 16651 |  | 16651 |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 11277 |  |  | 11277 |
| Repurchase Agreements |  | 15 |  | 15 |
| **Total Short-Term <br>Investments** | **11277** | **15** | **—** | **11292** |
| **Foreign Currency Forward<br>Exchange Contracts** |  | 60 |  | 60 |
| **Futures Contracts** | 396 |  |  | 396 |
| **Interest Rate Swap <br>Agreements** |  | 198 |  | 198 |
| **Total Return Swap <br>Agreements** |  | 39 |  | 39 |
| **Total Assets** | **20842** | **21262** | **—** | **42104** |
| **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** |
| **Foreign Currency Forward<br>Exchange Contracts** |  | (52) |  | (52) |
| **Interest Rate Swap <br>Agreements** |  | (113) |  | (113) |
| **Total Liabilities** | **—** | **(165)** | **—** | **(165)** |
| **Total** | $**20842** | $**21097** | $**—** | $**41939** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 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 U.S. 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.

**5. Treasury Inflation-Protected Securities:** The Fund may invest in Treasury Inflation-Protected Securities ("TIPS"), including structured bonds in which the principal amount is adjusted daily to keep pace with inflation, as measured by the U.S. Consumer Pricing Index for Urban Consumers. The adjustments to principal due to inflation/deflation are reflected as increases/decreases to interest income with a corresponding adjustment to cost. Such adjustments may have a significant impact on the Fund's distributions and may result in a return of capital to shareholders. The repayment of the original bond principal upon maturity is guaranteed by the full faith and credit of the U.S. Government.

**6. 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. Derivative instruments used by the Fund

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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:

**Foreign Currency Forward Exchange Contracts:** In connection with its investments in foreign securities, the Fund also entered into contracts with banks, brokers/dealers to purchase or sell 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.

**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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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.

**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 counterparty or clearing-house based on changes in the value of the contract or variation margin, respectively. 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. Commodities Futures Trading 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated 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 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.

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Consolidated <br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Foreign Currency <br>Forward <br>Exchange Contracts | Unrealized Appreciation on<br>Foreign Currency Forward<br>Exchange Contracts | <br>Currency Risk | $60 |
| Futures Contracts | Variation Margin on<br>Futures Contracts | Commodity Risk | 102<br> (a) |
| Futures Contract | Variation Margin on<br>Futures Contract | Equity Risk | 294<br> (a) |
| Swap Agreements | Variation Margin on<br>Swap Agreements | Interest Rate Risk | 198<br> (a) |
| Swap Agreements | Unrealized Appreciation on<br>Swap Agreements | Equity Risk | 39 |
| Total |  |  | $693 |
|  | **Liability Derivatives<br>Consolidated <br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Foreign Currency <br>Forward <br>Exchange Contracts | Unrealized Depreciation on<br>Foreign Currency Forward<br>Exchange Contracts | <br>Currency Risk | $(52) |
| Swap Agreements | Variation Margin on<br>Swap Agreements | Interest Rate Risk | (113)(a) |
| Total |  |  | $(165) |

---

(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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk  | Foreign Currency Forward <br>Exchange Contracts | $236 |
| Commodity Risk | Futures Contracts | 169 |
| Equity Risk | Futures Contracts | 591 |
| Interest Rate Risk | Futures Contracts | 618 |
| Equity Risk | Swap Agreements | 233 |
| Interest Rate Risk | Swap Agreements | 512 |
| Total |  | $2359 |
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk  | Foreign Currency Forward <br>Exchange Contracts | $8 |
| Commodity Risk | Futures Contracts |  |
| Equity Risk | Futures Contracts | 307 |
| Equity Risk | Swap Agreements | (73 |
| Interest Rate Risk | Swap Agreements | (284 |
| Total |  | $(42 |

---

@ Value is less than $500.

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives(b)** | **Assets(c)<br>(000)** | **Liabilities(c)<br>(000)** |
| Foreign Currency Forward Exchange Contracts | $60 | $(52) |
| Swap Agreements | 39 |  |
| Total | $99 | $(52) |

---

(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,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Asset <br>Derivatives<br>Presented in <br>the Consolidated <br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received(d)<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| BNP Paribas SA | $41 | $— | $(41) | $0 |
| Citibank NA | 18 | (3) |  | 15 |
| JPMorgan Chase Bank NA | 40 | (40) |  | 0 |
| Total | $99 | $(43) | $(41) | $15 |
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Liability <br>Derivatives<br>Presented in <br>the Consolidated <br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Pledged<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| Citibank NA | $3 | $(3) | $— | $0 |
| JPMorgan Chase Bank NA | 49 | (40) |  | 9 |
| Total | $52 | $(43) | $— | $9 |

---

(d) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Foreign Currency Forward Exchange Contracts:** | **Foreign Currency Forward Exchange Contracts:** |
| Average monthly principal amount | $6672000 |
| **Futures Contracts:** | **Futures Contracts:** |
| Average monthly notional value | $19348000 |
| **Swap Agreements:** | **Swap Agreements:** |
| Average monthly notional amount | $38417000 |

---

**7. 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 Consolidated 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

The following table presents financial instruments that are subject to enforceable netting arrangements as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in <br>the Consolidated <br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| $317<br> (e) | $— | $(317)(f)(g) | $0 |

---

(e) Represents market value of loaned securities at year end.

(f) The Fund received cash collateral of approximately $94,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $240,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 &<br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stocks | $94 | $— | $— | $— | $94 |
| **Total Borrowings** | $**94** | $**—** | $**—** | $**—** | $**94** |
| **Gross amount of <br>recognized liabilities <br>for securities lending <br>transactions** |  |  |  |  | $**94** |

---

**8. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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.

**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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 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 quarterly, at the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.60% | 0.55% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 R6 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 that the Directors act to discontinue all or a portion of such waivers or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $235,000 of advisory fees were waived and approximately $250,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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 Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $49,365,000 and $44,180,000, respectively. For the year ended December 31, 2022, purchases and sales of long-term U.S. Government securities were approximately $171,569,000 and $159,480,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $13,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $17027 | $213649 | $219399 | $112 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in <br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $11277 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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 December 31, 2022 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 2022 and 2021 was as follows:

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| | | | |
|:---|:---|:---|:---|
| **2022 <br>Distributions<br>Paid From:** | **2022 <br>Distributions<br>Paid From:** | **2021 <br>Distributions<br>Paid From:** | **2021 <br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $1698 | $3 | $2614 | $1655 |

---

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 December 31, 2022.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income <br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain <br>(000)** |
| $380 | $— |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $542,000 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 53.3%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus

("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Multi-Asset Real Return Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of Multi-Asset Real Return Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the four years in the period then ended and the period from June 18, 2018 (commencement of operations) through December 31, 2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the four years in the period then ended and the period from June 18, 2018 (commencement of operations) through December 31, 2018, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279227_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 43.74% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $3,000 as a long-term capital gain distribution.

The Fund designated approximately $54,000 of its distributions paid as qualified business income.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $786,000 as taxable at this lower rate.

In January, the Fund provides tax information to shareholders for the preceding calendar year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279227_za006.jpg)

IFIMARRANN<br>5452868 EXP 02.29.24

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![](j23279228_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Next Gen Emerging Markets Portfolio

Annual Report

December 31, 2022

![](j23279228_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 8 |
| Statement of Assets and Liabilities | 9 |
| Statement of Operations | 11 |
| Statements of Changes in Net Assets | 12 |
| Financial Highlights | 14 |
| Notes to Financial Statements | 19 |
| Report of Independent Registered Public Accounting Firm | 26 |
| Liquidity Risk Management Program | 27 |
| U.S. Customer Privacy Notice | 28 |
| Director and Officer Information | 31 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

***Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary, through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.***

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in Next Gen Emerging Markets Portfolio (the "Fund") performed during the latest twelve-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

![](j23279228_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Next Gen Emerging Markets Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 December 31, 2022 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) and redemption fees. 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Next Gen Emerging Markets Portfolio Class I | $1000.00 | $985.90 | $1019.06 | $6.11 | $6.21 | 1.22% |
| Next Gen Emerging Markets Portfolio Class A | 1000.00 | 983.70 | 1017.19 | 7.95 | 8.08 | 1.59 |
| Next Gen Emerging Markets Portfolio Class L | 1000.00 | 982.10 | 1014.67 | 10.44 | 10.61 | 2.09 |
| Next Gen Emerging Markets Portfolio Class C | 1000.00 | 980.20 | 1013.41 | 11.68 | 11.88 | 2.34 |
| Next Gen Emerging Markets Portfolio Class R6<sup>(1)</sup> | 1000.00 | 988.80 | 1022.03 | 3.16 | 3.21 | 0.63 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Next Gen Emerging Markets Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –37.59%, net of fees. The Fund's Class I shares underperformed the benchmark, MSCI Frontier Emerging Markets Net Index (the "Index"), which returned –18.18%.

**Factors Affecting Performance**

• The unprecedented actions of Russia contributed to the Fund's relative underperformance in the 12-month period given our allocation to Russia and Eastern Europe at the beginning of the year. Allocations to a retail chain operator, a digital bank, an e-commerce platform and an internet search engine detracted. Russia's invasion of Ukraine also led to the underperformance of off-Index names such as a software-as-a-service provider, an IT services company and select companies in Poland including an apparel manufacturer/retailer, due to their exposure to Russia, Ukraine and Belarus. We maintained our positions in these latter companies and in the Polish apparel company, in particular; it was the second largest contributor to performance in the fourth quarter after the stock rebounded strongly in the second half of the year.

• The Fund's allocation to an ASEAN region (Association of Southeast Asian Nations) gaming and e-commerce company was the single largest stock detractor over the one-year period. The stock underperformed amid pressure across growth and technology names, particularly in the first half of the year. We exited our position in the stock in the third quarter of 2022 as we lost conviction in our thesis. Zero allocations to smaller frontier countries like Bahrain, Oman, Romania and Jordan also detracted.

• The Fund's positioning in Vietnam contributed, driven by the allocation to one of the country's largest digital IT services companies, which has talented engineers and counts over 100 of the Fortune 500 companies as its clients. Also within Vietnam, zero allocations to a residential real estate company and a steel producer were positive for relative performance.

• Within Poland, allocations to a gaming company and a Polish software-as-a-service company contributed. The gaming company is in the final stages of developing and publishing new games, which we believe should result in a diversified revenue stream that could generate positive cash flow in the coming quarters. The newly developed games will come at higher price points than previous titles, which should help deliver higher revenues.

• Allocations to a large bank in Indonesia and a global metals and mining company in South Africa were also among the top stock contributors to returns for the year.

**Management Strategies**

• We remain focused on investing in the next generation of global investment opportunities unfolding in large, overlooked frontier and small emerging markets — NextGen countries. This include markets like Indonesia, Pakistan and Vietnam, where populations are young, large and growing fast. Based on Bloomberg data, of the 15 countries with over 100 million people, more than half are NextGen countries — totaling 1.4 billion people. By 2030, Indonesia is expected to overtake Brazil as the fourth-largest consumer market, after China, India and the U.S. The working age population across NextGen markets is projected to grow by nearly 150 million people, while major economies like China and the euro area are projected to lose 40 million and 13 million people from their workforces, respectively, according to Bloomberg data.

• Despite this vast opportunity, NextGen remains largely underinvested. Currently, these markets account for less than 0.3% of global equity indices and less than 3% of the MSCI Emerging Markets Index.<sup>(i)</sup> We are reminded of India in the early 2000s. Despite the massive opportunity, India's total equity market cap was a mere $120 billion in 2002.<sup>(ii)</sup> Over time, market cap follows the opportunity, and over the next two decades India's market cap grew by almost 20 times to over $2 trillion.<sup>(ii)</sup> We think NextGen economies like Indonesia and Vietnam can follow a similar

<sup>(i)</sup> Source: FactSet

<sup>(ii)</sup> Source: World Federation of Exchanges, Bloomberg L.P., Haver Analytics

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Next Gen Emerging Markets Portfolio**

trajectory, given large consumer markets (100 million to 250 million people), strong gross domestic product growth and encouraging trends like positive demographics. We are finding quality businesses which we think can benefit from these trends in the coming decade, and we remain excited about the opportunities to be unlocked in NextGen markets.

• Vietnam is one such example. Its structural macro story is compelling — Vietnam remains a high growth story driven by external sources like exports and manufacturing, and its strong human and financial capital are allowing it to be one of the few countries that is continuing to globalize in a deglobalizing world. A rising consumer class is emerging as the middle class is expected to add around 37 million new consumers by 2030. While Vietnam faces near-term cyclical challenges from tighter macroeconomic and financial conditions given its links to global trade and economic ties to the U.S. and recent credit boom, the country should be in a position to benefit from both China reopening and relocations from countries and corporates seeking a "China plus one" manufacturing strategy. The country's young, tech-savvy and growing middle class is ushering in a new generation of consumers that should help drive growth in this NextGen economy.

• As we start the year, we are thinking about the opportunities and risks in our investment universe. After more than a decade of strong growth and outperformance, the U.S. appears over-stretched and recession risks in 2023 — particularly in the first half of the year — are heightened. We have been mindful in reducing the portfolio's exposure and correlation to developed markets. Where we have sold such positions, we have been allocating to existing and new ideas in NextGen countries like Pakistan, Vietnam and Indonesia — many of which have quality companies trading at cheaper valuations that offer the same, if not more attractive, growth profiles.

• While we are confident in the portfolio we hold, we are always looking for other opportunities that may appear on the horizon. One segment we are

watching closely is markets that have undergone a big adjustment, such as Pakistan and Egypt. The Egyptian pound has depreciated 50% since the beginning of 2022<sup>(iii)</sup> and Pakistan is undergoing one of its most severe political and economic crises in recent history. Elsewhere, Nigeria will face an important election in February 2023 to determine the successor to President Buhari after eight years of negligible change, upticks in protests and violence, and downturns in the financial health of the economy and its population. In these cases where events have caused markets to bottom and investor interest to all but disappear, the slightest sign of positive change could be a signal of an improving macro environment from a depressed low base.

• Our decades-long experience of investing in emerging and frontier markets has taught us that these markets will always face change. Frontier and emerging markets are no stranger to bouts of political uncertainty, inflation risk, currency volatility and financial vulnerabilities. What has emerged from this cycle of change, though, is a degree of resiliency. Companies in these countries have seen market highs and lows and the most steadfast of them that have built long-standing brands entrenched in consumer habits have emerged from each cycle in a stronger position. In what could be a year and decade of change in global markets, we remain committed to investing in outstanding businesses within themes with long runways of growth in NextGen economies.

<sup>(iii)</sup> Source: Bloomberg L.P. Data as of December 31, 2022.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Next Gen Emerging Markets Portfolio**

![](j23279228_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C and R6 shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI Frontier Emerging Markets Net Index<sup>(1)</sup>, the MSCI Frontier Markets/MSCI Frontier Emerging Markets Blend Index<sup>(2)</sup> and the Lipper Emerging Markets Funds Index<sup>(3)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(9)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(5)</sup> | –37.59% | –6.49% | 0.91% | –0.90% |
| Fund — Class A Shares <br>w/o sales charges<sup>(6)</sup> | –37.82 | –6.82 | 0.57 | 1.07 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(6)</sup> | –41.08 | –7.82 | 0.02 | 0.55 |
| Fund — Class L Shares <br>w/o sales charges<sup>(6)</sup> | –38.13 | –7.28 | 0.00 | 0.51 |
| Fund — Class C Shares <br>w/o sales charges<sup>(8)</sup> | –38.29 | –7.52 |  | –4.32 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(8)</sup> | –38.91 | –7.52 |  | –4.32 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(7)</sup> | –37.32 | –6.40 |  | –2.79 |
| MSCI Frontier Emerging <br>Markets Net Index | –18.18 | –4.14 | –0.16 | –1.35 |
| MSCI Frontier Markets/MSCI Frontier <br>Emerging Markets Blend Index | –18.18 | –0.61 | 4.21 | –0.39 |
| Lipper Emerging Markets Funds <br>Index | –22.34 | –1.13 | 1.67 | 2.46 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI Frontier Emerging Markets Net Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of frontier emerging markets. The MSCI Frontier Emerging Markets Index captures large and mid cap representation across 33 Frontier Emerging Markets countries. The performance of the Index is calculated in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Next Gen Emerging Markets Portfolio**

<sup>(2)</sup> The MSCI Frontier Markets/MSCI Frontier Emerging Markets Blend Index is performance linked benchmark of the old and new benchmark of the Fund. The old benchmark represented by MSCI Frontier Markets Net Index (a index that is designed to measure equity market performance of frontier markets) from the Fund's inception to June 29, 2021 to the new benchmark represented by MSCI Frontier Emerging Markets Net Index for periods thereafter. The performance of the Index is calculated in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(3)</sup> The Lipper Emerging Markets Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Emerging Markets Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Emerging Markets Funds classification. The Funds' Lipper category changed from Frontier Markets to Emerging Markets.

<sup>(4)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(5)</sup> On September 17, 2012, all assets of Morgan Stanley Frontier Markets Fund, Inc. (the "Predecessor Fund") were reorganized into Class I shares of Morgan Stanley Institutional Fund, Inc. Next Gen Emerging Markets Portfolio (formerly Morgan Stanley Institutional Fund, Inc. Frontier Markets Portfolio ("the Fund"). Performance shown for Class I shares reflects the performance of the shares of the Predecessor Fund for periods prior to September 17, 2012. The Predecessor Fund may have performed differently if it were an open-end fund since closed-end funds are generally not subject to the cash flow fluctuations of an open-end fund. In addition, Class I shares' returns of the Fund will differ from the Predecessor Fund as they have different expenses. The Predecessor Fund commenced operations on August 25, 2008. The Fund changed it's name to Next Gen Emerging Markets Portfolio effective June 30, 2021.

<sup>(6)</sup> Commenced offering on September 14, 2012.

<sup>(7)</sup> Commenced offering on February 27, 2015. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(8)</sup> Commenced offering on April 30, 2015.

<sup>(9)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Next Gen Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (94.6%)** | **Common Stocks (94.6%)** | **Common Stocks (94.6%)** |
| Bangladesh (2.7%) | Bangladesh (2.7%) | Bangladesh (2.7%) |
| Brac Bank Ltd. | 3097829 | $1163 |
| Brazil (3.2%) | Brazil (3.2%) | Brazil (3.2%) |
| Locaweb Servicos de Internet SA (a) | 1013415 | 1349 |
| Canada (0.5%) | Canada (0.5%) | Canada (0.5%) |
| Cameco Corp. | 10046 | 228 |
| Indonesia (14.8%) | Indonesia (14.8%) | Indonesia (14.8%) |
| Bank Mandiri Persero Tbk PT | 3195500 | 2038 |
| Champ Resto Indonesia Tbk PT (a) | 3317700 | 389 |
| Cisarua Mountain Dairy PT TBK | 1886500 | 515 |
| Industri Jamu Dan Farmasi Sido Muncul Tbk PT | 41227100 | 1997 |
| Medikaloka Hermina Tbk PT | 13980500 | 1391 |
|  |  | 6330 |
| Kazakhstan (3.8%) | Kazakhstan (3.8%) | Kazakhstan (3.8%) |
| NAC Kazatomprom JSC GDR | 58547 | 1644 |
| Kenya (4.3%) | Kenya (4.3%) | Kenya (4.3%) |
| Safaricom PLC | 9290921 | 1820 |
| Pakistan (3.4%) | Pakistan (3.4%) | Pakistan (3.4%) |
| Systems Ltd. | 682107 | 1455 |
| Poland (19.4%) | Poland (19.4%) | Poland (19.4%) |
| 11 bit studios SA (a) | 17591 | 2375 |
| Grupa Kety SA | 12075 | 1262 |
| LiveChat Software SA | 96291 | 2357 |
| LPP SA | 958 | 2336 |
|  |  | 8330 |
| South Africa (8.0%) | South Africa (8.0%) | South Africa (8.0%) |
| Anglo American PLC | 35956 | 1409 |
| Capitec Bank Holdings Ltd. | 18472 | 2011 |
|  |  | 3420 |
| United Kingdom (2.7%) | United Kingdom (2.7%) | United Kingdom (2.7%) |
| Mondi PLC | 67971 | 1162 |
| United States (15.3%) | United States (15.3%) | United States (15.3%) |
| EPAM Systems, Inc. (a) | 5728 | 1877 |
| Grid Dynamics Holdings, Inc. (a) | 138993 | 1560 |
| MercadoLibre, Inc. (a) | 2123 | 1797 |
| SEMrush Holdings, Inc., Class A (a) | 164770 | 1341 |
|  |  | 6575 |
| Vietnam (16.5%) | Vietnam (16.5%) | Vietnam (16.5%) |
| FPT Corp. | 733261 | 2556 |
| Mobile World Investment Corp. | 954088 | 1858 |
| Phu Nhuan Jewelry JSC | 124400 | 493 |
| Vietnam Dairy Products JSC | 673892 | 2175 |
|  |  | 7082 |
| **Total Common Stocks (Cost $40,358)** | **Total Common Stocks (Cost $40,358)** | 40558 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Short-Term Investment (4.3%)** | **Short-Term Investment (4.3%)** | **Short-Term Investment (4.3%)** |
| Investment Company (4.3%) | Investment Company (4.3%) | Investment Company (4.3%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Government Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $1,860)** | 1859829 | $1860 |
| **Total Investments (98.9%) (Cost $42,218) (b)(c)** | **Total Investments (98.9%) (Cost $42,218) (b)(c)** | 42418 |
| Other Assets in Excess of Liabilities (1.1%) | Other Assets in Excess of Liabilities (1.1%) | 460 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $42878 |

---

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $29,342,000 and 68.4%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(c) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $46,703,000. The aggregate gross unrealized appreciation is approximately $5,721,000 and the aggregate gross unrealized depreciation is approximately $10,005,000, resulting in net unrealized depreciation of approximately $4,284,000.

GDR Global Depositary Receipt.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Other\* | 33.4% |
| Information Technology Services | 20.7 |
| Banks | 12.3 |
| Software | 8.7 |
| Textiles, Apparel & Luxury Goods | 6.7 |
| Food Products | 6.3 |
| Metals & Mining | 6.3 |
| Entertainment | 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.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Next Gen Emerging Markets Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $40,358) | $40558 |
| Investment in Security of Affiliated Issuer, at Value (Cost $1,860) | 1860 |
| Total Investments in Securities, at Value (Cost $42,218) | 42418 |
| Foreign Currency, at Value (Cost $561) | 529 |
| Cash | 21 |
| Due from Adviser | 75 |
| Dividends Receivable | 72 |
| Tax Reclaim Receivable | 21 |
| Receivable from Affiliate | 8 |
| Receivable for Fund Shares Sold | 1 |
| Other Assets | 53 |
| **Total Assets** | 43198 |
| **Liabilities:** | **Liabilities:** |
| Payable for Investments Purchased | 117 |
| Payable for Professional Fees | 85 |
| Payable for Custodian Fees | 51 |
| Payable for Fund Shares Redeemed | 19 |
| Payable for Sub Transfer Agency Fees — Class I | 5 |
| Payable for Sub Transfer Agency Fees — Class A | 1 |
| Payable for Sub Transfer Agency Fees — Class L |  |
| Payable for Sub Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class I | 2 |
| Payable for Transfer Agency Fees — Class A | 1 |
| Payable for Transfer Agency Fees — Class L |  |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Payable for Administration Fees | 3 |
| Payable for Shareholder Services Fees — Class A | 1 |
| Payable for Distribution and Shareholder Services Fees — Class L |  |
| Payable for Distribution and Shareholder Services Fees — Class C |  |
| Other Liabilities | 35 |
| **Total Liabilities** | 320 |
| **Net Assets** | $42878 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $159587 |
| Total Accumulated Loss | (116709 |
| **Net Assets** | $42878 |

---

The accompanying notes are an integral part of the financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Next Gen Emerging Markets Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $36405 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 2595278 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $14.03 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $5719 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 411132 |
| **Net Asset Value, Redemption Price Per Share** | $13.91 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.77 |
| **Maximum Offering Price Per Share** | $14.68 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $229 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 16743 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.68 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $485 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 36333 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $13.36 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $40 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 2824 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $14.09 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Next Gen Emerging Markets Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $128 of Foreign Taxes Withheld) | $1246 |
| Dividends from Security of Affiliated Issuer (Note G) | 49 |
| Total Investment Income | 1295 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 817 |
| Professional Fees | 325 |
| Custodian Fees (Note F) | 112 |
| Registration Fees | 100 |
| Administration Fees (Note C) | 54 |
| Sub Transfer Agency Fees — Class I | 41 |
| Sub Transfer Agency Fees — Class A | 9 |
| Sub Transfer Agency Fees — Class L |  |
| Sub Transfer Agency Fees — Class C |  |
| Shareholder Reporting Fees | 37 |
| Shareholder Services Fees — Class A (Note D) | 17 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 2 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 6 |
| Reorganization Expense | 24 |
| Transfer Agency Fees — Class I (Note E) | 9 |
| Transfer Agency Fees — Class A (Note E) | 4 |
| Transfer Agency Fees — Class L (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 3 |
| Directors' Fees and Expenses | 6 |
| Pricing Fees | 2 |
| Other Expenses | 25 |
| Total Expenses | 1598 |
| Waiver of Advisory Fees (Note B) | (686 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (27 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (3 |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (3 |
| Rebate from Morgan Stanley Affiliate (Note G) | (5 |
| Net Expenses | 870 |
| **Net Investment Income** | 425 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (34215 |
| Foreign Currency Translation | (256 |
| Net Realized Loss | (34471 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (23972 |
| Foreign Currency Translation | (8 |
| Net Change in Unrealized Appreciation (Depreciation) | (23980 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (58451 |
| Net Decrease in Net Assets Resulting from Operations | $(58026 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Next Gen Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income (Loss) | $425 | $(190 |
| Net Realized Gain (Loss) | (34471) | 4034 |
| Net Change in Unrealized Appreciation (Depreciation) | (23980) | (583 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (58026) | 3261 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 9954 | 45403 |
| Issued due to a Tax-Free Reorganization |  | 29344 |
| Redeemed | (57215) | (9479 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 1523 | 1653 |
| Issued due to a Tax-Free Reorganization |  | 278 |
| Redeemed | (1590) | (2415 |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 33 |  |
| Redeemed | (66) | (39 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 25 | 45 |
| Issued due to a Tax-Free Reorganization |  | 30 |
| Redeemed | (91) | (140 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 1006 | 43005 |
| Issued due to a Tax-Free Reorganization |  | 14 |
| Redeemed | (28304) | (846 |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (74725) | 106853 |
| Redemption Fees | 7 |  |
| Total Increase (Decrease) in Net Assets | (132744) | 110114 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 175622 | 65508 |
| End of Period | $42878 | $175622 |

---

The accompanying notes are an integral part of the financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Next Gen Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 547 | 1910 |
| Shares Issued due to a Tax-Free Reorganization |  | 1230 |
| Shares Redeemed | (3509) | (432) |
| Net Increase (Decrease) in Class I Shares Outstanding | (2962) | 2708 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 100 | 73 |
| Shares Issued due to a Tax-Free Reorganization |  | 12 |
| Shares Redeemed | (98) | (109) |
| Net Increase (Decrease) in Class A Shares Outstanding | 2 | (24) |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 3 |  |
| Shares Redeemed | (4) | (2) |
| Net Decrease in Class L Shares Outstanding | (1) | (2) |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 1 | 2 |
| Shares Issued due to a Tax-Free Reorganization |  | 1 |
| Shares Redeemed | (6) | (6) |
| Net Decrease in Class C Shares Outstanding | (5) | (3) |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 53 | 1810 |
| Shares Issued due to a Tax-Free Reorganization |  | 1 |
| Shares Redeemed | (1840) | (37) |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (1787) | 1774 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Next Gen Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $22.48 | $19.49 | $17.10 | $15.63 | $21.02 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.13 | (0.02) | 0.04 | 0.39 | 0.33 |
| Net Realized and Unrealized Gain (Loss) | (8.58) | 3.01 | 2.36 | 1.58 | (5.07) |
| Total from Investment Operations | (8.45) | 2.99 | 2.40 | 1.97 | (4.74) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.50) | (0.65) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $14.03 | $22.48 | $19.49 | $17.10 | $15.63 |
| **Total Return<sup>(3)</sup>** | (37.59)% | 15.34% | 14.02% | 12.53% | (22.60)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $36405 | $124931 | $55533 | $125780 | $229688 |
| Ratio of Expenses Before Expense Limitation | 2.30% | 2.21% | 2.13% | 1.92% | N/A |
| Ratio of Expenses After Expense Limitation | 1.24%<sup>(4)</sup> | 1.51%<sup>(4)</sup> | 1.90%<sup>(4)(5)</sup> | 1.90%<sup>(4)(5)</sup> | 1.77%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 1.51%<sup>(4)</sup> | 1.85%<sup>(4)</sup> | 1.85%<sup>(4)</sup> | 1.76%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | 0.77%<sup>(4)</sup> | (0.11)%<sup>(4)</sup> | 0.24%<sup>(4)</sup> | 2.33%<sup>(4)</sup> | 1.68%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 78% | 56% | 56% | 68% | 61% |

---

(1) Per share amount is based on average shares outstanding.

(2) Amount is less than $0.005 per share.

(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) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Next Gen Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $22.37 | $19.47 | $17.15 | $15.61 | $20.86 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.10 | (0.08) | 0.01 | 0.42 | 0.34 |
| Net Realized and Unrealized Gain (Loss) | (8.56) | 2.98 | 2.32 | 1.48 | (5.10) |
| Total from Investment Operations | (8.46) | 2.90 | 2.33 | 1.90 | (4.76) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.36) | (0.49) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $13.91 | $22.37 | $19.47 | $17.15 | $15.61 |
| **Total Return<sup>(3)</sup>** | (37.82)% | 14.89% | 13.57% | 12.13% | (22.80)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $5719 | $9154 | $8436 | $12044 | $34654 |
| Ratio of Expenses Before Expense Limitation | 2.66% | 2.70% | 2.44% | 2.23% | N/A |
| Ratio of Expenses After Expense Limitation | 1.59%<sup>(4)</sup> | 1.96%<sup>(4)</sup> | 2.26%<sup>(4)(5)</sup> | 2.25%<sup>(4)(5)</sup> | 2.07%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 1.96%<sup>(4)</sup> | 2.20%<sup>(4)</sup> | 2.20%<sup>(4)</sup> | 2.06%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | 0.68%<sup>(4)</sup> | (0.38)%<sup>(4)</sup> | 0.07%<sup>(4)</sup> | 2.48%<sup>(4)</sup> | 1.71%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 78% | 56% | 56% | 68% | 61% |

---

(1) Per share amount is based on average shares outstanding.

(2) Amount is less than $0.005 per share.

(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 (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) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Next Gen Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $22.11 | $19.34 | $17.11 | $15.59 | $20.65 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.01 | (0.19) | (0.06) | 0.25 | 0.17 |
| Net Realized and Unrealized Gain (Loss) | (8.44) | 2.96 | 2.30 | 1.56 | (4.98) |
| Total from Investment Operations | (8.43) | 2.77 | 2.24 | 1.81 | (4.81) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.29) | (0.25) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $13.68 | $22.11 | $19.34 | $17.11 | $15.59 |
| **Total Return<sup>(3)</sup>** | (38.13)% | 14.32% | 13.01% | 11.58% | (23.19)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $229 | $396 | $378 | $570 | $1241 |
| Ratio of Expenses Before Expense Limitation | 4.02% | 3.67% | 3.44% | 2.90% | N/A |
| Ratio of Expenses After Expense Limitation | 2.09%<sup>(4)</sup> | 2.46%<sup>(4)</sup> | 2.76%<sup>(4)(5)</sup> | 2.75%<sup>(4)(5)</sup> | 2.57%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 2.46%<sup>(4)</sup> | 2.70%<sup>(4)</sup> | 2.70%<sup>(4)</sup> | 2.56%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | 0.06%<sup>(4)</sup> | (0.86)%<sup>(4)</sup> | (0.39)%<sup>(4)</sup> | 1.47%<sup>(4)</sup> | 0.88%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 78% | 56% | 56% | 68% | 61% |

---

(1) Per share amount is based on average shares outstanding.

(2) Amount is less than $0.005 per share.

(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) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Next Gen Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $21.65 | $18.99 | $16.85 | $15.38 | $20.41 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | (0.02) | (0.24) | (0.10) | 0.20 | 0.11 |
| Net Realized and Unrealized Gain (Loss) | (8.27) | 2.90 | 2.25 | 1.56 | (4.90) |
| Total from Investment Operations | (8.29) | 2.66 | 2.15 | 1.76 | (4.79) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.29) | (0.24) |
| **Redemption Fees** | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> | 0.00<br><sup>(2)</sup> |
| **Net Asset Value, End of Period** | $13.36 | $21.65 | $18.99 | $16.85 | $15.38 |
| **Total Return<sup>(3)</sup>** | (38.29)% | 14.01% | 12.74% | 11.34% | (23.42)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $485 | $897 | $843 | $877 | $1657 |
| Ratio of Expenses Before Expense Limitation | 3.75% | 3.67% | 3.42% | 3.07% | N/A |
| Ratio of Expenses After Expense Limitation | 2.34%<sup>(4)</sup> | 2.71%<sup>(4)</sup> | 3.00%<sup>(4)(5)</sup> | 2.99%<sup>(4)(5)</sup> | 2.83%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 2.71%<sup>(4)</sup> | 2.95%<sup>(4)</sup> | 2.95%<sup>(4)</sup> | 2.82%<sup>(4)</sup> |
| Ratio of Net Investment Income (Loss) | (0.14)%<sup>(4)</sup> | (1.13)%<sup>(4)</sup> | (0.66)%<sup>(4)</sup> | 1.17%<sup>(4)</sup> | 0.56%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 78% | 56% | 56% | 68% | 61% |

---

(1) Per share amount is based on average shares outstanding.

(2) Amount is less than $0.005 per share.

(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 (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) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Next Gen Emerging Markets Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $22.48 | $19.49 | $17.09 | $15.63 | $21.02 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | (0.13) | (0.07) | 0.09 | 0.33 | 0.58 |
| Net Realized and Unrealized Gain (Loss) | (8.26) | 3.06 | 2.32 | 1.64 | (5.33) |
| Total from Investment Operations | (8.39) | 2.99 | 2.41 | 1.97 | (4.75) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  | (0.01) | (0.51) | (0.64) |
| **Redemption Fees** | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> | 0.00<br><sup>(3)</sup> |
| **Net Asset Value, End of Period** | $14.09 | $22.48 | $19.49 | $17.09 | $15.63 |
| **Total Return<sup>(4)</sup>** | (37.32)% | 15.34% | 14.02% | 12.60% | (22.61)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $40 | $40244 | $318 | $1580 | $4633 |
| Ratio of Expenses Before Expense Limitation | 2.24% | 1.80% | 2.20% | 1.91% | N/A |
| Ratio of Expenses After Expense Limitation | 1.19%<sup>(5)</sup> | 1.24%<sup>(5)</sup> | 1.86%<sup>(5)(6)</sup> | 1.85%<sup>(5)(6)</sup> | 1.74%<sup>(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | N/A | 1.24%<sup>(5)</sup> | 1.80%<sup>(5)</sup> | 1.80%<sup>(5)</sup> | 1.73%<sup>(5)</sup> |
| Ratio of Net Investment Income (Loss) | (0.65)%<sup>(5)</sup> | (0.29)%<sup>(5)</sup> | 0.55%<sup>(5)</sup> | 1.95%<sup>(5)</sup> | 2.85%<sup>(5)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> |
| Portfolio Turnover Rate | 78% | 56% | 56% | 68% | 61% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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) 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."

(6) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(7) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Next Gen Emerging Markets Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

On August 13, 2021, the Fund acquired the net assets of the Company's Emerging Markets Small Cap Portfolio ("Emerging Markets Small Cap"), an open-end investment company, based on the respective valuations as of the close of business on August 13, 2021, pursuant to a Plan of Reorganization approved by the shareholders of Emerging Markets Small Cap on August 6, 2021 ("Reorganization"). The purpose of the transaction was to combine two portfolios managed by Morgan Stanley Investment Management Inc., (the "Adviser") with comparable investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of 1,229,838 Class I shares of the Fund at a net asset value ("NAV") of $23.86 for 5,313,467 Class I shares of Emerging Markets Small Cap; 11,699 Class A shares of the Fund at a NAV of $23.79 for 51,786 Class A shares of Emerging Markets Small Cap; 1,308 Class C shares of the Fund at a NAV of $23.09 for 6,028 Class C shares of Emerging Markets Small Cap; 606 Class IS shares of the Fund at a NAV of $23.87 for 2,617 Class IS shares of Emerging Markets Small Cap. The net assets of Emerging Markets Small Cap before the Reorganization were approximately $29,667,000, including unrealized appreciation (depreciation) of approximately $1,927,000 at August 13, 2021. The investment portfolio of Emerging Markets Small Cap, with a fair value of approximately $28,441,000 and

identified cost of approximately $26,492,000, on August 13, 2021, was the principal asset acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Emerging Markets Small Cap was carried forward to align ongoing reporting of the Fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the Reorganization, the net assets of the Fund were approximately $147,270,000. Immediately after the Reorganization, the net assets of the Fund were approximately $176,937,000.

Upon closing of the Reorganization, shareholders of Emerging Markets Small Cap received shares of the Fund as follows:

---

| | |
|:---|:---|
| **Emerging Markets <br>Small Cap** | **Next Gen <br>Emerging Markets** |
| Class I | Class I |
| Class A | Class A |
| Class C | Class C |
| Class IS | Class IS |

---

Assuming the acquisition had been completed on January 1, 2021, the beginning of the annual reporting period of the Fund, the Fund's pro-forma results of operations for the period ended December 31, 2021, are approximately as follows:

---

| | |
|:---|:---|
| Net investment Income<sup>(1)</sup> | $2687000 |
| Net realized gain and unrealized gain<sup>(2)</sup> | $30974000 |
| Net increase in net assets resulting<br>from operations | $33661000 |

---

(1) Approximately $(190,000) as reported, plus approximately $875,000 from Emerging Markets Small Cap prior to the Reorganization, plus approximately $2,002,000 of estimated pro-forma eliminated expenses.

(2) Approximately $3,451,000 as reported, plus approximately $27,523,000 from Emerging Markets Small Cap prior to the Reorganization.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Emerging Markets Small Cap that have been included in the Fund's Statement of Operations since August 13, 2021.

**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 Company 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If the Adviser, a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Banks | $— | $5212 | $— | $5212 |
| Entertainment |  | 2375 |  | 2375 |
| Food Products |  | 2690 |  | 2690 |
| Health Care Providers & <br>Services |  | 1391 |  | 1391 |
| Hotels, Restaurants & <br>Leisure |  | 389 |  | 389 |
| Information Technology <br>Services | 3437 | 5360 |  | 8797 |
| Internet & Direct <br>Marketing Retail | 1797 |  |  | 1797 |
| Metals & Mining |  | 2671 |  | 2671 |
| Oil, Gas & Consumable <br>Fuels | 228 | 1644 |  | 1872 |
| Paper & Forest Products |  | 1162 |  | 1162 |
| Personal Products |  | 1997 |  | 1997 |
| Software | 1341 | 2357 |  | 3698 |
| Specialty Retail |  | 1858 |  | 1858 |
| Textiles, Apparel & <br>Luxury Goods |  | 2829 |  | 2829 |
| Wireless <br>Telecommunication <br>Services |  | 1820 |  | 1820 |
| **Total Common Stocks** | **6803** | **33755** | **—** | **40558** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 1860 |  |  | 1860 |
| **Total Assets** | $**8663** | $**33755** | $**—** | $**42418** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 Statement of Operations.

A significant portion of the Fund's net assets consist of securities of issuers located in emerging markets, which are denominated in foreign currencies. Such securities may be concentrated in a limited number of countries and regions and may vary throughout the year. Changes in currency exchange rates will affect the value of securities and investment income from foreign currency denominated securities. Emerging market securities are often subject to greater price volatility, limited capitalization and liquidity, and higher rates of inflation than securities of companies based in the U.S. In addition, emerging market issuers may be subject to substantial governmental involvement in the economy and greater social, economic and political uncertainty.

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 U.S. 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. Redemption Fees:** The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class L shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

**5. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

respective securities. Most expenses of the Company 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 1.20% 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 1.25% for Class I shares, 1.60% for Class A shares, 2.10% for Class L shares, 2.35% for Class C shares and 1.20% for Class R6 shares. The fee waivers and/or expense reimbursements will continue for at least two years from the date of the Reorganization or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $686,000 of advisory fees were waived and approximately $37,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement.

The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $50,066,000 and $99,981,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by approximately $5,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $27427 | $40327 | $65894 | $49 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized<br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $1860 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 December 31, 2022 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 years 2022 and 2021.

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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

Permanent differences, due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $13 | $(13) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $112,380,000 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 38.2%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods).

These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Next Gen Emerging Markets Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Next Gen Emerging Markets Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279228_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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| | |
|:---|:---|
| **Who is providing this notice?** | Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (*see* Investment Management Affiliates definition below) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279228_za006.jpg)

IFINGEMANN<br>5442640 EXP 02.29.24

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![](j23279229_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Permanence Portfolio

Annual Report

December 31, 2022

![](j23279229_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Consolidated Expense Example | 3 |
| Investment Overview | 4 |
| Consolidated Portfolio of Investments | 6 |
| Consolidated Statement of Assets and Liabilities | 8 |
| Consolidated Statement of Operations | 9 |
| Consolidated Statements of Changes in Net Assets | 10 |
| Consolidated Financial Highlights | 11 |
| Notes to Consolidated Financial Statements | 15 |
| Report of Independent Registered Public Accounting Firm | 24 |
| Liquidity Risk Management Program | 25 |
| Federal Tax Notice | 26 |
| U.S. Customer Privacy Notice | 27 |
| Director and Officer Information | 30 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

***Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary, through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.***

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in Permanence Portfolio (the "Fund") performed during the latest twelve-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

![](j23279229_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Expense Example (unaudited)

**Permanence Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Permanence Portfolio Class I | $1000.00 | $1050.10 | $1020.92 | $4.39 | $4.33 | 0.85% |
| Permanence Portfolio Class A | 1000.00 | 1048.10 | 1019.16 | 6.19 | 6.11 | 1.20 |
| Permanence Portfolio Class C | 1000.00 | 1044.10 | 1016.23 | 9.17 | 9.05 | 1.78 |
| Permanence Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1050.60 | 1021.17 | 4.13 | 4.08 | 0.80 |

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\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Permanence Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –20.55%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the S&P 500® Index (the "Index"), which returned –18.11%.

**Factors Affecting Performance**

• Stubbornly high inflation, rapidly rising interest rates and moderating economic growth were significant headwinds to U.S. equity performance in 2022. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher. The U.S. Federal Reserve and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in stock and bond markets. While tightening financial conditions helped slow some segments of the economy and inflation appeared to be receding from peak levels, the jobs market remained resilient and inflation rates were still historically high at year-end, setting up expectations for additional interest rate hikes in 2023.

• U.S. large-cap equities, as measured by the Index, declined over the one-year period. There was wide variance in sector performance. Energy, with a high double-digit gain, was the top performing sector, while communication services, with a double-digit loss, was the weakest performing sector in the Index over this period.

• Counterpoint Global seeks high quality companies, which we define primarily as those with sustainable competitive advantages. We manage concentrated portfolios that are highly differentiated from the benchmark, with securities weighted on our assessment of the quality of the company and our conviction. The value added or detracted in any period of time will typically result from stock selection, given our philosophy and process.

• The long-term investment horizon and conviction-weighted investment approach embraced by the

team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period due to unfavorable sector allocations and stock selection.

• Fear and uncertainty due to concerns about inflation, rising interest rates, geopolitical tensions and ongoing effects of the global pandemic continued to weigh on market sentiment, contributing to greater volatility and a continued aversion towards high growth equities. We believe this rotation away from high growth equities remains driven primarily by non-fundamental factors. Fundamentals across portfolio holdings have largely remained healthy and in line with our expectations. Despite market volatility, we continue to find many high-quality companies with attractive end-game potential due to compelling fundamentals, strong balance sheets and multiple competitive advantages. We believe today's market offers an attractive opportunity to buy unique companies with strong fundamentals that can be long-term winners over the next three to five years. While we have opportunistically added to some positions and initiated new ones, overall we have made few changes as we remain confident in the long-term prospects for the businesses we own.

• Health care was the greatest detractor from relative performance, largely due to unfavorable stock selection. An overweight to consumer discretionary and stock selection in information technology were also among the largest relative detractors. The largest stock detractor across the portfolio was a leading supplier of lithography equipment used in the production of semiconductors, which underperformed due to a weaker-than-expected outlook resulting from delayed revenue recognition and higher expected costs related to labor, materials and a planned increase in output capacity.

• Stock selection in consumer discretionary was a strong contributor to relative performance, but the negative impact of a sector overweight offset most of the gain. Industrials was also among the largest contributors to performance due to advantageous stock selection and a sector overweight. An underweight in communication services was also beneficial to relative performance. The top stock contributor across the portfolio was a large

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Permanence Portfolio**

landowner in Texas, which generates revenue primarily from oil and gas lease royalties. Its shares advanced as the company continued to capitalize on its unique and advantaged surface position and strong production growth.

**Management Strategies**

• As a team, we believe having a market outlook can be an anchor. Our focus is on assessing company prospects over a five-year horizon, and owning a portfolio of unique companies whose market value we believe can increase significantly for underlying fundamental reasons.

![](j23279229_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on March 31, 2020.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the the S&P 500<sup>®</sup> Index** **<sup>(1)</sup>** **and the Lipper Multi-Cap Growth Funds Index** **<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –20.55% |  |  | 14.25% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –20.83 |  |  | 13.84 |
| Fund — Class A Shares with <br>maximum 5.25% sales charges<sup>(4)</sup> | –24.97 |  |  | 11.65 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –21.47 |  |  | 12.95 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(4)</sup> | –22.24 |  |  | 12.95 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –20.50 |  |  | 14.32 |
| S&P 500<sup>®</sup> Index | –18.11 |  |  | 17.31 |
| Lipper Multi-Cap Growth <br>Funds Index | –34.29 |  |  | 10.23 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Standard & Poor's 500<sup>®</sup> Index (S&P 500<sup>®</sup> Index) measures the performance of the large cap segment of the U.S. equities market, covering approximately 80% of the U.S. equities market. The Index includes 500 leading companies in leading industries of the U.S. economy. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Multi-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Multi-Cap Growth Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on March 31, 2020. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments

**Permanence Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (96.4%)** | **Common Stocks (96.4%)** | **Common Stocks (96.4%)** |
| Aerospace & Defense (7.6%) | Aerospace & Defense (7.6%) | Aerospace & Defense (7.6%) |
| Axon Enterprise, Inc. (a) | 981 | $163 |
| HEICO Corp., Class A | 134 | 16 |
| TransDigm Group, Inc. | 136 | 86 |
|  |  | 265 |
| Capital Markets (6.7%) | Capital Markets (6.7%) | Capital Markets (6.7%) |
| Intercontinental Exchange, Inc. | 1637 | 168 |
| MSCI, Inc. | 72 | 33 |
| S&P Global, Inc. | 101 | 34 |
|  |  | 235 |
| Chemicals (5.3%) | Chemicals (5.3%) | Chemicals (5.3%) |
| Ecolab, Inc. | 117 | 17 |
| Sherwin-Williams Co. | 711 | 169 |
|  |  | 186 |
| Commercial Services & Supplies (2.9%) | Commercial Services & Supplies (2.9%) | Commercial Services & Supplies (2.9%) |
| Cintas Corp. | 38 | 17 |
| Copart, Inc. (a) | 814 | 49 |
| Rollins, Inc. | 919 | 34 |
|  |  | 100 |
| Construction Materials (0.5%) | Construction Materials (0.5%) | Construction Materials (0.5%) |
| Martin Marietta Materials, Inc. | 48 | 16 |
| Distributors (2.3%) | Distributors (2.3%) | Distributors (2.3%) |
| Pool Corp. | 269 | 81 |
| Diversified Consumer Services (2.8%) | Diversified Consumer Services (2.8%) | Diversified Consumer Services (2.8%) |
| Service Corp. International | 1388 | 96 |
| Entertainment (1.0%) | Entertainment (1.0%) | Entertainment (1.0%) |
| Netflix, Inc. (a) | 67 | 20 |
| Walt Disney Co. (a) | 161 | 14 |
|  |  | 34 |
| Equity Real Estate Investment Trusts (REITs) (0.3%) | Equity Real Estate Investment Trusts (REITs) (0.3%) | Equity Real Estate Investment Trusts (REITs) (0.3%) |
| American Tower Corp. REIT | 58 | 12 |
| Food Products (3.3%) | Food Products (3.3%) | Food Products (3.3%) |
| McCormick & Co., Inc. | 206 | 17 |
| UTZ Brands, Inc. | 6151 | 98 |
|  |  | 115 |
| Health Care Equipment & Supplies (2.5%) | Health Care Equipment & Supplies (2.5%) | Health Care Equipment & Supplies (2.5%) |
| Intuitive Surgical, Inc. (a) | 325 | 86 |
| Health Care Technology (0.9%) | Health Care Technology (0.9%) | Health Care Technology (0.9%) |
| Veeva Systems, Inc., Class A (a) | 188 | 30 |
| Hotels, Restaurants & Leisure (1.4%) | Hotels, Restaurants & Leisure (1.4%) | Hotels, Restaurants & Leisure (1.4%) |
| Domino's Pizza, Inc. | 45 | 16 |
| McDonald's Corp. | 59 | 15 |
| Starbucks Corp. | 177 | 18 |
|  |  | 49 |
| Household Durables (1.6%) | Household Durables (1.6%) | Household Durables (1.6%) |
| NVR, Inc. (a) | 12 | 55 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Information Technology Services (5.0%) | Information Technology Services (5.0%) | Information Technology Services (5.0%) |
| Cloudflare, Inc., Class A (a) | 3873 | $175 |
| Insurance (2.4%) | Insurance (2.4%) | Insurance (2.4%) |
| Brown & Brown, Inc. | 894 | 51 |
| Progressive Corp. | 265 | 34 |
|  |  | 85 |
| Interactive Media & Services (2.4%) | Interactive Media & Services (2.4%) | Interactive Media & Services (2.4%) |
| Alphabet, Inc., Class C (a) | 952 | 85 |
| Internet & Direct Marketing Retail (5.5%) | Internet & Direct Marketing Retail (5.5%) | Internet & Direct Marketing Retail (5.5%) |
| Amazon.com, Inc. (a) | 2273 | 191 |
| Life Sciences Tools & Services (2.8%) | Life Sciences Tools & Services (2.8%) | Life Sciences Tools & Services (2.8%) |
| Danaher Corp. | 298 | 79 |
| Thermo Fisher Scientific, Inc. | 32 | 18 |
|  |  | 97 |
| Metals & Mining (1.2%) | Metals & Mining (1.2%) | Metals & Mining (1.2%) |
| Royal Gold, Inc. | 376 | 42 |
| Oil, Gas & Consumable Fuels (0.3%) | Oil, Gas & Consumable Fuels (0.3%) | Oil, Gas & Consumable Fuels (0.3%) |
| Texas Pacific Land Corp. | 5 | 12 |
| Personal Products (0.5%) | Personal Products (0.5%) | Personal Products (0.5%) |
| Estee Lauder Cos., Inc., Class A | 68 | 17 |
| Pharmaceuticals (4.2%) | Pharmaceuticals (4.2%) | Pharmaceuticals (4.2%) |
| Eli Lilly & Co. | 45 | 16 |
| Royalty Pharma PLC, Class A (United Kingdom) | 2877 | 114 |
| Zoetis, Inc. | 121 | 18 |
|  |  | 148 |
| Semiconductors & Semiconductor Equipment (5.9%) | Semiconductors & Semiconductor Equipment (5.9%) | Semiconductors & Semiconductor Equipment (5.9%) |
| ASML Holding NV | 374 | 204 |
| Software (19.4%) | Software (19.4%) | Software (19.4%) |
| Cadence Design Systems, Inc. (a) | 97 | 15 |
| Constellation Software, Inc. | 113 | 176 |
| Procore Technologies, Inc. (a) | 738 | 35 |
| Roper Technologies, Inc. | 40 | 17 |
| Salesforce.com, Inc. (a) | 806 | 107 |
| ServiceNow, Inc. (a) | 432 | 168 |
| Synopsys, Inc. (a) | 49 | 16 |
| Topicus.com, Inc. (a) | 1658 | 87 |
| Tyler Technologies, Inc. (a) | 167 | 54 |
|  |  | 675 |
| Specialty Retail (7.2%) | Specialty Retail (7.2%) | Specialty Retail (7.2%) |
| AutoZone, Inc. (a) | 14 | 35 |
| Floor & Decor Holdings, Inc., Class A (a) | 2094 | 146 |
| Home Depot, Inc. | 57 | 18 |
| TJX Cos., Inc. | 643 | 51 |
|  |  | 250 |
| Trading Companies & Distributors (0.5%) | Trading Companies & Distributors (0.5%) | Trading Companies & Distributors (0.5%) |
| Watsco, Inc. | 66 | 17 |
| **Total Common Stocks (Cost $3,398)** | **Total Common Stocks (Cost $3,398)** | 3358 |

---

The accompanying notes are an integral part of the consolidated financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Portfolio of Investments (cont'd)

**Permanence Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Investment Company (0.3%)** | **Investment Company (0.3%)** | **Investment Company (0.3%)** |
| Grayscale Bitcoin Trust (a) **(Cost $48)** | 1260 | $10 |
| **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** | **Short-Term Investment (1.0%)** |
| Investment Company (1.0%) | Investment Company (1.0%) | Investment Company (1.0%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $35)** | 34828 | 35 |
| **Total Investments Excluding Purchased <br>Options (97.7%) (Cost $3,481)** |  | 3403 |
| **Total Purchased Options Outstanding (0.1%) <br>(Cost $7)** | **Total Purchased Options Outstanding (0.1%) <br>(Cost $7)** | 4 |
| **Total Investments (97.8%) (Cost $3,488) (b)(c)** | **Total Investments (97.8%) (Cost $3,488) (b)(c)** | 3407 |
| Other Assets in Excess of Liabilities (2.2%) | Other Assets in Excess of Liabilities (2.2%) | 77 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $3484 |

---

(a) Non-income producing security.

(b) Securities are available for collateral in connection with purchased options.

(c) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $3,558,000. The aggregate gross unrealized appreciation is approximately $332,000 and the aggregate gross unrealized depreciation is approximately $462,000, resulting in net unrealized depreciation of approximately $130,000.

REIT Real Estate Investment Trust.

**Call Options Purchased:**

The Fund had the following call options purchased open at December 31, 2022:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional <br>Amount<br>(000)** | **Value<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Depreciation<br>(000)** |
| Goldman Sachs International | USD/CNH CNH | 7.87 | Oct-23 | 6257 | 6 | $— | @ | $— | @ | $(— |
| JP Morgan Chase Bank NA | USD/CNH CNH | 7.53 | Jul-23 | 694116 | 694 | 2 |  | 3 |  | (1 |
| Standard Chartered Bank | USD/CNH CNH | 7.57 | Aug-23 | 798506 | 799 | 2 |  | 4 |  | (2 |
|  |  |  |  |  |  | $4 |  | $7 |  | $(3 |

---

@ Value is less than 500

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 36.0% |
| Software | 19.8 |
| Aerospace & Defense | 7.8 |
| Specialty Retail | 7.3 |
| Capital Markets | 6.9 |
| Semiconductors & Semiconductor Equipment | 6.0 |
| Internet & Direct Marketing Retail | 5.6 |
| Chemicals | 5.5 |
| Information Technology Services | 5.1 |
| 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 consolidated financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Permanence Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $3,453) | $3372 |  |
| Investment in Security of Affiliated Issuer, at Value (Cost $35) | 35 |  |
| Total Investments in Securities, at Value (Cost $3,488) | 3407 |  |
| Foreign Currency, at Value (Cost —@) |  | @ |
| Due from Adviser | 72 |  |
| Receivable for Fund Shares Sold | 51 |  |
| Dividends Receivable | 1 |  |
| Receivable from Affiliate |  | @ |
| Other Assets | 23 |  |
| **Total Assets** | 3554 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Professional Fees | 50 |  |
| Payable for Custodian 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 R6\* |  | @ |
| Payable for Sub Transfer Agency Fees — Class I |  | @ |
| Payable for Administration Fees |  | @ |
| Other Liabilities | 18 |  |
| **Total Liabilities** | 70 |  |
| **Net Assets** | $3484 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $3484 |  |
| Total Accumulated Loss | (— | @) |
| **Net Assets** | $3484 |  |
| **CLASS I:** | **CLASS I:** | **CLASS I:** |
| **Net Assets** | $3117 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 279257 |  |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.16 |  |
| **CLASS A:** | **CLASS A:** | **CLASS A:** |
| **Net Assets** | $303 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 27373 |  |
| **Net Asset Value, Redemption Price Per Share** | $11.07 |  |
| **Maximum Sales Load** | 5.25 | % |
| **Maximum Sales Charge** | $0.61 |  |
| **Maximum Offering Price Per Share** | $11.68 |  |
| **CLASS C:** | **CLASS C:** | **CLASS C:** |
| **Net Assets** | $20 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1878 |  |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.86 |  |
| **CLASS R6:\*** | **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $44 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 3919 |  |
| **Net Asset Value, Offering and Redemption Price Per Share** | $11.17 |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Permanence Portfolio**

---

| | |
|:---|:---|
| Consolidated Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld) | $24 |
| Dividends from Security of Affiliated Issuer (Note G) | 1 |
| Total Investment Income | 25 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 152 |
| Registration Fees | 56 |
| Advisory Fees (Note B) | 23 |
| Shareholder Reporting Fees | 13 |
| Transfer Agency Fees — Class I (Note E) | 2 |
| Transfer Agency Fees — Class A (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Custodian Fees (Note F) | 7 |
| Directors' Fees and Expenses | 5 |
| Pricing Fees | 5 |
| Administration Fees (Note C) | 3 |
| Sub Transfer Agency Fees — Class I | 1 |
| Sub Transfer Agency Fees — Class A |  |
| Shareholder Services Fees — Class A (Note D) | 1 |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Other Expenses | 18 |
| Total Expenses | 292 |
| Expenses Reimbursed by Adviser (Note B) | (231 |
| Waiver of Advisory Fees (Note B) | (23 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (1 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 31 |
| **Net Investment Loss** | (6 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold | 138 |
| Foreign Currency Translation | (— |
| Net Realized Gain | 138 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (1004 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (1004 |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | (866 |
| Net Decrease in Net Assets Resulting from Operations | $(872 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Permanence Portfolio**

---

| | | |
|:---|:---|:---|
| Consolidated Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(6 | $(1 |
| Net Realized Gain | 138 | 463 |
| Net Change in Unrealized Appreciation (Depreciation) | (1004 | 121 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (872 | 583 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (84 | (582 |
| **Class A** | (4 | (47 |
| **Class C** |  | (4 |
| **Class R6\*** | (1 | (3 |
| Total Dividends and Distributions to Shareholders | (89 | (636 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 152 | 115 |
| Distributions Reinvested | 84 | 582 |
| Redeemed | (50 |  |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 185 | 344 |
| Distributions Reinvested | 4 | 47 |
| Redeemed | (140 | (308 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed |  | 1 |
| Distributions Reinvested |  | 4 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 43 |  |
| Distributions Reinvested | 1 | 3 |
| Redeemed | (9 |  |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 270 | 788 |
| Total Increase (Decrease) in Net Assets | (691 | 735 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 4175 | 3440 |
| End of Period | $3484 | $4175 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 13 | 7 |
| Shares Issued on Distributions Reinvested | 7 | 42 |
| Shares Redeemed | (5 |  |
| Net Increase in Class I Shares Outstanding | 15 | 49 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 16 | 23 |
| Shares Issued on Distributions Reinvested |  | 3 |
| Shares Redeemed | (12 | (21 |
| Net Increase in Class A Shares Outstanding | 4 | 5 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed |  |  |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class C Shares Outstanding |  |  |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 4 |  |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (1 |  |
| Net Increase in Class R6 Shares Outstanding | 3 |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Permanence Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from<br>March 31, 2020<sup>(1)</sup> to**<br>**December 31, 2020<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $14.42 | $14.65 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(3)</sup> | (0.02)<sup>(4)</sup> | 0.00<br><sup>(4)</sup> | (0.00)<sup>(4)</sup> |
| Net Realized and Unrealized Gain (Loss) | (2.93) | 2.39 | 5.51 |
| Total from Investment Operations | (2.95) | 2.39 | 5.51 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.04) | (0.11) |  |
| Net Realized Gain | (0.27) | (2.51) | (0.86) |
| Total Distributions | (0.31) | (2.62) | (0.86) |
| **Net Asset Value, End of Period** | $11.16 | $14.42 | $14.65 |
| **Total Return<sup>(5)</sup>** | (20.55)% | 16.85% | 55.46%<sup>(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $3117 | $3807 | $3147 |
| Ratio of Expenses Before Expense Limitation | 8.14% | 7.49% | 10.85%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 0.85%<sup>(6)</sup> | 0.85%<sup>(6)</sup> | 0.85%<sup>(6)(9)</sup> |
| Ratio of Net Investment Income (Loss) | (0.14)%<sup>(6)</sup> | 0.01%<sup>(6)</sup> | (0.02)%<sup>(6)(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)(9)</sup> |
| Portfolio Turnover Rate | 57% | 70% | 68%<sup>(8)</sup> |

---

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(6) 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Permanence Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from<br>March 31, 2020<sup>(1)</sup> to**<br>**December 31, 2020<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $14.31 | $14.61 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.06) | (0.05) | (0.01) |
| Net Realized and Unrealized Gain (Loss) | (2.91) | 2.37 | 5.48 |
| Total from Investment Operations | (2.97) | 2.32 | 5.47 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.11) |  |
| Net Realized Gain | (0.27) | (2.51) | (0.86) |
| Total Distributions | (0.27) | (2.62) | (0.86) |
| **Net Asset Value, End of Period** | $11.07 | $14.31 | $14.61 |
| **Total Return<sup>(4)</sup>** | (20.83)% | 16.41% | 55.05%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $303 | $324 | $256 |
| Ratio of Expenses Before Expense Limitation | 9.60% | 8.83% | 17.41%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.20%<sup>(5)</sup> | 1.20%<sup>(5)</sup> | 1.20%<sup>(5)(8)</sup> |
| Ratio of Net Investment Loss | (0.51)%<sup>(5)</sup> | (0.33)%<sup>(5)</sup> | (0.06)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 57% | 70% | 68%<sup>(7)</sup> |

---

(1) Commencement of Operations.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Permanence Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from<br>March 31, 2020<sup>(1)</sup> to**<br>**December 31, 2020<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $14.16 | $14.52 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.13) | (0.17) | (0.11) |
| Net Realized and Unrealized Gain (Loss) | (2.90) | 2.35 | 5.49 |
| Total from Investment Operations | (3.03) | 2.18 | 5.38 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  | (0.03) |  |
| Net Realized Gain | (0.27) | (2.51) | (0.86) |
| Total Distributions | (0.27) | (2.54) | (0.86) |
| **Net Asset Value, End of Period** | $10.86 | $14.16 | $14.52 |
| **Total Return<sup>(4)</sup>** | (21.47)% | 15.52% | 54.15%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $20 | $26 | $21 |
| Ratio of Expenses Before Expense Limitation | 19.54% | 18.17% | 24.15%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.95%<sup>(5)</sup> | 1.95%<sup>(5)</sup> | 1.95%<sup>(5)(8)</sup> |
| Ratio of Net Investment Loss | (1.24)%<sup>(5)</sup> | (1.09)%<sup>(5)</sup> | (1.08)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 57% | 70% | 68%<sup>(7)</sup> |

---

(1) Commencement of Operations.

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Consolidated Financial Highlights

**Permanence Portfolio**

---

| | | | |
|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **Period from<br>March 31, 2020<sup>(2)</sup> to**<br>**December 31, 2020<sup>(3)</sup>** |
| **Net Asset Value, Beginning of Period** | $14.43 | $14.65 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(4)</sup> | (0.01) | 0.01 | (0.00)<sup>(5)</sup> |
| Net Realized and Unrealized Gain (Loss) | (2.94) | 2.40 | 5.51 |
| Total from Investment Operations | (2.95) | 2.41 | 5.51 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.04) | (0.12) |  |
| Net Realized Gain | (0.27) | (2.51) | (0.86) |
| Total Distributions | (0.31) | (2.63) | (0.86) |
| **Net Asset Value, End of Period** | $11.17 | $14.43 | $14.65 |
| **Total Return<sup>(6)</sup>** | (20.50)% | 16.95% | 55.45%<sup>(9)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $44 | $18 | $16 |
| Ratio of Expenses Before Expense Limitation | 12.68% | 20.29% | 25.34%<sup>(10)</sup> |
| Ratio of Expenses After Expense Limitation | 0.80%<sup>(7)</sup> | 0.80%<sup>(7)</sup> | 0.80%<sup>(7)(10)</sup> |
| Ratio of Net Investment Income (Loss) | (0.06)%<sup>(7)</sup> | 0.07%<sup>(7)</sup> | 0.03%<sup>(7)(10)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)</sup> | 0.00%<sup>(8)(10)</sup> |
| Portfolio Turnover Rate | 57% | 70% | 68%<sup>(9)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

(3) Not consolidated.

(4) Per share amount is based on average shares outstanding.

(5) Amount is less than $0.005 per share.

(6) Calculated based on the net asset value as of the last business day of the period.

(7) 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."

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying consolidated financial statements relate to the Permanence Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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 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, Permanence Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of December 31, 2022, the Subsidiary represented approximately $17,000 or approximately 0.50% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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.

**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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

"Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) 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; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by

the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Aerospace & Defense | $265 | $— | $— | $265 |
| Capital Markets | 235 |  |  | 235 |
| Chemicals | 186 |  |  | 186 |
| Commercial Services & <br>Supplies | 100 |  |  | 100 |
| Construction Materials | 16 |  |  | 16 |
| Distributors | 81 |  |  | 81 |
| Diversified Consumer <br>Services | 96 |  |  | 96 |
| Entertainment | 34 |  |  | 34 |
| Equity Real Estate <br>Investment Trusts (REITs) | 12 |  |  | 12 |
| Food Products | 115 |  |  | 115 |
| Health Care Equipment & <br>Supplies | 86 |  |  | 86 |
| Health Care Technology | 30 |  |  | 30 |
| Hotels, Restaurants & <br>Leisure | 49 |  |  | 49 |
| Household Durables | 55 |  |  | 55 |
| Information Technology <br>Services | 175 |  |  | 175 |
| Insurance | 85 |  |  | 85 |
| Interactive Media & <br>Services | 85 |  |  | 85 |
| Internet & Direct <br>Marketing Retail | 191 |  |  | 191 |
| Life Sciences Tools & <br>Services | 97 |  |  | 97 |
| Metals & Mining | 42 |  |  | 42 |
| Oil, Gas & Consumable <br>Fuels | 12 |  |  | 12 |
| Personal Products | 17 |  |  | 17 |
| Pharmaceuticals | 148 |  |  | 148 |
| Semiconductors & <br>Semiconductor <br>Equipment | 204 |  |  | 204 |
| Software | 675 |  |  | 675 |
| Specialty Retail | 250 |  |  | 250 |
| Trading Companies & <br>Distributors | 17 |  |  | 17 |
| **Total Common Stocks** | **3358** | **—** | **—** | **3358** |
| **Investment Company** | 10 |  |  | 10 |
| **Call Options Purchased** |  | 4 |  | 4 |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 35 |  |  | 35 |
| **Total Assets** | $**3403** | $**4** | $**—** | $**3407** |

---

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 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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 U.S. 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. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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 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 Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund writes 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

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.

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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Consolidated <br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Purchased Options | Investments, at Value<br>(Purchased Options) | Currency Risk | $4<br> (a) |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended December 31, 2022 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Realized Gain (Loss)** | **Realized Gain (Loss)** | **Realized Gain (Loss)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $(17)(b) |

---

(b) Amounts are included in Realized Gain on Investments Sold in the Consolidated Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** | **Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk Exposure** | **Derivative Type** | **Value<br>(000)** |
| Currency Risk | Investments<br>(Purchased Options) | $12<br> (c) |

---

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At December 31, 2022, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities <br>Presented in the Consolidated Statement of Assets and Liabilities** |
| **Derivatives** | **Assets(d)<br>(000)** | **Liabilities(d)<br>(000)** |
| Purchased Options | $4<br> (a) | $— |

---

(a) Amounts are included in Investments in Securities in the Consolidated 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 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 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities** |
| **Counterparty** | **Gross Asset <br>Derivatives<br>Presented in <br>the Consolidated <br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Gross Asset <br>Derivatives<br>Presented in <br>the Consolidated <br>Statement of<br>Assets and<br>Liabilities(a)<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| Goldman Sachs International | $— | @ | $— | $— | $— | @ |
| JP Morgan Chase Bank NA | 2 |  |  |  | 2 |  |
| Standard Chartered Bank | 2 |  |  |  | 2 |  |
| Total | $4 |  | $— | $— | $4 |  |

---

@ Value is less than $500

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

For the year ended December 31, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

---

| | |
|:---|:---|
| **Purchased Options:** | **Purchased Options:** |
| Average monthly notional amount | 2,256,000 |

---

**5. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

**6. Dividends and Distributions to Shareholders:** Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is

recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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<br>billion** | **Over $1<br>billion** |
| 0.65% | 0.60% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 0.85% for Class I shares, 1.20% for Class A shares, 1.95% for Class C shares and 0.80% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $23,000 of advisory fees were waived and approximately $238,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the

Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $2,100,000 and $1,937,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by less 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $79 | $1229 | $1273 | $1 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain (Loss)<br>(000)** | **Change in <br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $35 |

---

During the year ended December 31, 2022, the Fund incurred less than $500 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 RIC 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 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. Each of the tax years in the three-year period ended December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $21 | $68 | $270 | $366 |

---

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 December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated <br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $19 | $(19) |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $— | $141 |

---

**I. Credit Facility:** The Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Consolidated Financial Statements (cont'd)

**J. Other:** At December 31, 2022, 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 41.4%.

**K. Market Risk and Risks Relating to Certain Financial Instruments:**

**Bitcoin:** The Fund may have exposure to cryptocurrency indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

**Market:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have

a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Permanence Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statement of assets and liabilities of the Permanence Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the consolidated portfolio of investments, as of December 31, 2022, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the two years in the period then ended and the period from March 31, 2020 (commencement of operations) through December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended, and its consolidated financial highlights for each of the two years in the period then ended and for the period from March 31, 2020 (commencement of operations) through December 31, 2020, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279229_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 86.10% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $68,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $20,000 as taxable at this lower rate.

In January, the Fund provides tax information to shareholders for the preceding calendar year.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) 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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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 —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279229_za006.jpg)

IFIPERMANN<br>5452876 EXP 02.29.24

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![](j23279230_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Sustainable Emerging Markets Portfolio

Annual Report

December 31, 2022

![](j23279230_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 6 |
| Statement of Assets and Liabilities | 8 |
| Statement of Operations | 9 |
| Statement of Changes in Net Assets | 10 |
| Financial Highlights | 11 |
| Notes to Financial Statements | 15 |
| Report of Independent Registered Public Accounting Firm | 21 |
| Liquidity Risk Management Program | 22 |
| U.S. Customer Privacy Notice | 23 |
| Director and Officer Information | 26 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

***Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary, through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.***

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in Sustainable Emerging Markets Portfolio (the "Fund") performed during the period beginning September 30, 2022 (when the Fund commenced operations) and ended December 31, 2022.

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,

![](j23279230_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Sustainable Emerging Markets Portfolio**

As a shareholder of the Fund, you incur two types of costs: (1) transactional costs, including redemption fees; 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 9/30/22 - 12/31/22.

**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) and redemption fees. 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account<br>Value<br>9/30/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Sustainable Emerging Markets Portfolio Class I^ | $1000.00 | $1089.00 | $1010.11 | $2.61 | $2.51 | 0.99% |
| Sustainable Emerging Markets Portfolio Class A^ | 1000.00 | 1088.00 | 1009.23 | 3.53 | 3.39 | 1.34 |
| Sustainable Emerging Markets Portfolio Class C^ | 1000.00 | 1086.00 | 1007.36 | 5.47 | 5.26 | 2.08 |
| Sustainable Emerging Markets Portfolio Class R6^ | 1000.00 | 1089.00 | 1010.23 | 2.47 | 2.38 | 0.94 |

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\*\* 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 92/365 (to reflect the actual days in the period).

\* Annualized

^ The fund commenced operations on September 30, 2022

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Sustainable Emerging Markets Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the period from Fund inception on September 30, 2022 through December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 8.90%, net of fees. The Fund's Class I shares outperformed the Fund's benchmark, the MSCI Emerging Markets ex China Net Index (the "Index"), which returned 7.98% for the same period.

**Factors Affecting Performance**

• The Fund launched a few months prior to the close of the reporting period. Such a short time frame would not provide a meaningful performance analysis as short-term returns may not be indicative of the Fund's long-term performance potential.

**Management Strategies**

• The MSIF Sustainable Emerging Markets Portfolio is a diversified, sustainable core fund which seeks to invest in quality companies in emerging markets, which are financially attractive while also supporting environmental and/or socially sustainable development. In our integrated process, we combine macro and bottom-up financial research with dedicated portfolio manager-led engagements to arrive at a core portfolio of 50 to 70 stocks. The Fund aims to achieve a lower carbon footprint than the Index in aggregate, is positively aligned with our sustainable development themes of: responsible energy transition; circular economy and sustainable production; improved access and affordability; and decent work and innovation, and includes ESG (environmental, social and governance) integration.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Sustainable Emerging Markets Portfolio**

![](j23279230_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on September 30, 2022.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the MSCI Emerging Markets ex China Net Index** **<sup>(1)</sup>** **and the Lipper Emerging Markets Funds Index** **<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | **One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | 8.90% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | 8.80 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> |  |  |  | 3.13 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | 8.60 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> |  |  |  | 7.60 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> |  |  |  | 8.90 |
| MSCI Emerging Markets <br>ex China Net Index |  |  |  | 7.98 |
| Lipper Emerging Markets <br>Funds Index |  |  |  | 9.75 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The MSCI Emerging Markets ex China Net Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of emerging markets excluding China. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Emerging Markets Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Emerging Markets Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Emerging Markets Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on September 30, 2022.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Sustainable Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.0%)** | **Common Stocks (98.0%)** | **Common Stocks (98.0%)** |
| Brazil (6.9%) | Brazil (6.9%) | Brazil (6.9%) |
| Cia Brasileira de Aluminio | 25100 | $54 |
| Itau Unibanco Holding SA (Preference) | 30689 | 146 |
| Lojas Renner SA | 24320 | 94 |
| Raia Drogasil SA | 17594 | 79 |
|  |  | 373 |
| Czech Republic (0.6%) | Czech Republic (0.6%) | Czech Republic (0.6%) |
| Komercni Banka AS | 1114 | 32 |
| Germany (0.8%) | Germany (0.8%) | Germany (0.8%) |
| Infineon Technologies AG | 1504 | 46 |
| India (25.8%) | India (25.8%) | India (25.8%) |
| Bajaj Auto Ltd. | 1613 | 70 |
| Delhivery Ltd. (a) | 7787 | 31 |
| Eicher Motors Ltd. | 1120 | 44 |
| Gland Pharma Ltd. (a) | 999 | 19 |
| Godrej Consumer Products Ltd. (a) | 3149 | 33 |
| HDFC Bank Ltd. ADR | 2387 | 163 |
| Hindalco Industries Ltd. | 14710 | 84 |
| Housing Development Finance Corp., Ltd. | 2708 | 86 |
| ICICI Bank Ltd. | 18207 | 196 |
| ICICI Prudential Life Insurance Co., Ltd. | 8411 | 46 |
| Infosys Ltd. | 4928 | 90 |
| Infosys Ltd. ADR | 1522 | 28 |
| Macrotech Developers Ltd. (a) | 3376 | 45 |
| Mahindra & Mahindra Financial Services Ltd. | 23053 | 65 |
| Mahindra & Mahindra Ltd. | 5395 | 81 |
| MakeMyTrip Ltd. (a) | 1171 | 32 |
| Max Healthcare Institute Ltd. (a) | 11357 | 60 |
| Reliance Industries Ltd. | 6384 | 196 |
| Star Health & Allied Insurance Co. Ltd. (a) | 5208 | 36 |
|  |  | 1405 |
| Indonesia (5.3%) | Indonesia (5.3%) | Indonesia (5.3%) |
| Bank Central Asia Tbk PT | 205200 | 112 |
| Bank Mandiri Persero Tbk PT | 124800 | 80 |
| Bank Rakyat Indonesia Persero Tbk PT | 303200 | 96 |
|  |  | 288 |
| Korea, Republic of (12.2%) | Korea, Republic of (12.2%) | Korea, Republic of (12.2%) |
| KB Financial Group, Inc. | 2004 | 77 |
| Kia Corp. | 692 | 32 |
| Korea Zinc Co. Ltd. | 145 | 65 |
| Samsung Electronics Co., Ltd. | 7281 | 320 |
| Samsung SDI Co., Ltd. (a) | 190 | 89 |
| SK Hynix, Inc. | 1384 | 83 |
|  |  | 666 |
| Mexico (6.4%) | Mexico (6.4%) | Mexico (6.4%) |
| Grupo Financiero Banorte SAB de CV Series O | 11604 | 83 |
| Regional SAB de CV | 13531 | 98 |
| Wal-Mart de Mexico SAB de CV | 47092 | 167 |
|  |  | 348 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Norway (1.8%) | Norway (1.8%) | Norway (1.8%) |
| Norsk Hydro ASA | 12998 | $97 |
| Poland (3.3%) | Poland (3.3%) | Poland (3.3%) |
| Grupa Kety SA | 635 | 66 |
| LPP SA | 47 | 115 |
|  |  | 181 |
| South Africa (7.6%) | South Africa (7.6%) | South Africa (7.6%) |
| Anglo American Platinum Ltd. | 1066 | 89 |
| Anglo American PLC | 4285 | 168 |
| AVI Ltd. | 1291 | 6 |
| Capitec Bank Holdings Ltd. | 877 | 95 |
| Woolworths Holdings Ltd. | 14327 | 56 |
|  |  | 414 |
| Sweden (1.6%) | Sweden (1.6%) | Sweden (1.6%) |
| Medicover AB | 6659 | 89 |
| Switzerland (1.5%) | Switzerland (1.5%) | Switzerland (1.5%) |
| SIG Group AG (a) | 3707 | 81 |
| Taiwan (17.6%) | Taiwan (17.6%) | Taiwan (17.6%) |
| Airtac International Group | 4000 | 121 |
| Chailease Holding Co., Ltd. | 8000 | 56 |
| CTBC Financial Holding Co., Ltd. | 85000 | 61 |
| Delta Electronics, Inc. | 17000 | 158 |
| Merida Industry Co., Ltd. | 6000 | 33 |
| Silergy Corp. | 2000 | 28 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 17000 | 247 |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 2772 | 206 |
| Voltronic Power Technology Corp. | 1000 | 50 |
|  |  | 960 |
| Thailand (0.8%) | Thailand (0.8%) | Thailand (0.8%) |
| Ngern Tid Lor PCL | 51700 | 44 |
| United Kingdom (4.5%) | United Kingdom (4.5%) | United Kingdom (4.5%) |
| Antofagasta PLC | 6171 | 115 |
| Mondi PLC | 7726 | 132 |
|  |  | 247 |
| United States (1.3%) | United States (1.3%) | United States (1.3%) |
| EPAM Systems, Inc. (a) | 208 | 68 |
| **Total Common Stocks (Cost $4,999)** | **Total Common Stocks (Cost $4,999)** | 5339 |
| **Short-Term Investment (1.5%)** | **Short-Term Investment (1.5%)** | **Short-Term Investment (1.5%)** |
| Investment Company (1.5%) | Investment Company (1.5%) | Investment Company (1.5%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Government Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $81)** | 80952 | 81 |
| **Total Investments (99.5%) (Cost $5,080) (b)(c)** | **Total Investments (99.5%) (Cost $5,080) (b)(c)** | 5420 |
| Other Assets in Excess of Liabilities (0.5%) | Other Assets in Excess of Liabilities (0.5%) | 25 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $5445 |

---

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

The accompanying notes are an integral part of the financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Sustainable Emerging Markets Portfolio**

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $4,450,000 and 81.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(c) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $5,080,000. The aggregate gross unrealized appreciation is approximately $466,000 and the aggregate gross unrealized depreciation is approximately $132,000, resulting in net unrealized appreciation of approximately $334,000.

ADR American Depositary Receipt.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\* | 46.4% |
| Banks | 22.9 |
| Metals & Mining | 13.6 |
| Semiconductors & Semiconductor Equipment | 11.2 |
| Tech Hardware, Storage & Peripherals | 5.9 |
| 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.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Sustainable Emerging Markets Portfolio**

---

| | | |
|:---|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $4,999) | $5339 |  |
| Investment in Security of Affiliated Issuer, at Value (Cost $81) | 81 |  |
| Total Investments in Securities, at Value (Cost $5,080) | 5420 |  |
| Foreign Currency, at Value (Cost $6) | 6 |  |
| Prepaid Offering Costs | 125 |  |
| Due from Adviser | 95 |  |
| Receivable for Investments Sold | 42 |  |
| Due from Broker | 39 |  |
| Dividends Receivable | 3 |  |
| Tax Reclaim Receivable | 1 |  |
| Receivable from Affiliate |  | @ |
| Other Assets | 4 |  |
| **Total Assets** | 5735 |  |
| **Liabilities:** | **Liabilities:** | **Liabilities:** |
| Payable for Offering Costs | 165 |  |
| Payable for Professional Fees | 48 |  |
| Payable to Bank | 39 |  |
| Due to Broker | 22 |  |
| Deferred Capital Gain Country Tax | 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 R6 |  | @ |
| Payable for Custodian Fees | 1 |  |
| Payable for Investments Purchased | 1 |  |
| Payable for Administration Fees |  | @ |
| Other Liabilities | 9 |  |
| **Total Liabilities** | 290 |  |
| **Net Assets** | $5445 |  |
| **Net Assets Consist of:** | **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $4992 |  |
| Total Distributable Earnings | 453 |  |
| **Net Assets** | $5445 |  |
| **CLASS I:** | **CLASS I:** | **CLASS I:** |
| **Net Assets** | $5283 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 485000 |  |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.89 |  |
| **CLASS A:** | **CLASS A:** | **CLASS A:** |
| **Net Assets** | $54 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |  |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.88 |  |
| **Maximum Sales Load** | 5.25 | % |
| **Maximum Sales Charges** | $0.60 |  |
| **Maximum Offering Price Per Share** | $11.48 |  |
| **CLASS C:** | **CLASS C:** | **CLASS C:** |
| **Net Assets** | $54 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |  |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.86 |  |
| **CLASS R6:** | **CLASS R6:** | **CLASS R6:** |
| **Net Assets** | $54 |  |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5000 |  |
| **Net Asset Value, Offering and Redemption Price Per Share** | $10.89 |  |

---

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Sustainable Emerging Markets Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Period from<br>September 30, 2022^ to<br>December 31, 2022 <br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $2 of Foreign Taxes Withheld) | $15 |
| Dividends from Security of Affiliated Issuer (Note G) | 1 |
| Total Investment Income | 16 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 54 |
| Offering Costs | 42 |
| Advisory Fees (Note B) | 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 R6 (Note E) | 1 |
| Custodian Fees (Note F) | 1 |
| Administration Fees (Note C) | 1 |
| Shareholder Services Fees — Class A (Note D) |  |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Pricing Fees |  |
| Other Expenses |  |
| Total Expenses | 119 |
| Expenses Reimbursed by Adviser (Note B) | (94 |
| Waiver of Advisory Fees (Note B) | (9 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (— |
| 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 R6 (Note B) | (1 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 13 |
| **Net Investment Income** | 3 |
| **Realized Gain:** | **Realized Gain:** |
| Investments Sold (Net of $9 of Capital Gain Country Tax) | 103 |
| Foreign Currency Translation | 4 |
| Net Realized Gain | 107 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Increase in Deferred Capital Gain Country Tax of $5) | 335 |
| Foreign Currency Translation |  |
| Net Change in Unrealized Appreciation (Depreciation) | 335 |
| **Net Realized Gain and Change in Unrealized Appreciation (Depreciation)** | 442 |
| Net Increase in Net Assets Resulting from Operations | $445 |

---

^ Commencement of Operations.

@ Amount is less than $500

The accompanying notes are an integral part of the financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Sustainable Emerging Markets Portfolio**

---

| | |
|:---|:---|
| Statements of Changes in Net Assets | **Period from<br>September 30, 2022^ to<br>December 31, 2022<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** |
| Net Investment Income | $3 |
| Net Realized Gain | 107 |
| Net Change in Unrealized Appreciation (Depreciation) | 335 |
| Net Increase in Net Assets Resulting from Operations | 445 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** |
| Subscribed | 4850 |
| **Class A:** | **Class A:** |
| Subscribed | 50 |
| **Class C:** | **Class C:** |
| Subscribed | 50 |
| **Class R6:** | **Class R6:** |
| Subscribed | 50 |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 5000 |
| Total Increase in Net Assets | 5445 |
| **Net Assets:** | **Net Assets:** |
| Beginning of Period |  |
| End of Period | $5445 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** |
| Shares Subscribed | 485 |
| **Class A:** | **Class A:** |
| Shares Subscribed | 5 |
| **Class C:** | **Class C:** |
| Shares Subscribed | 5 |
| **Class R6:** | **Class R6:** |
| Shares Subscribed | 5 |

---

^ Commencement of Operations.

The accompanying notes are an integral part of the financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Sustainable Emerging Markets Portfolio**

---

| | |
|:---|:---|
| | **Class I** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>September 30, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income from Investment Operations:** | **Income from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.01 |
| Net Realized and Unrealized Gain | 0.88 |
| Total from Investment Operations | 0.89 |
| **Net Asset Value, End of Period** | $10.89 |
| **Total Return<sup>(3)</sup>** | 8.90%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $5283 |
| Ratio of Expenses Before Expense Limitation | 8.64%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation | 0.98%<sup>(4)(6)</sup> |
| Ratio of Net Investment Income | 0.25%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01%<sup>(6)</sup> |
| Portfolio Turnover Rate | 21%<sup>(5)</sup> |

---

(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) Not annualized.

(6) Annualized

The accompanying notes are an integral part of the financial statements.<br>11

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Sustainable Emerging Markets Portfolio**

---

| | |
|:---|:---|
| | **Class A** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>September 30, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.00)<sup>(3)</sup> |
| Net Realized and Unrealized Gain | 0.88 |
| Total from Investment Operations | 0.88 |
| **Net Asset Value, End of Period** | $10.88 |
| **Total Return<sup>(4)</sup>** | 8.80%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $54 |
| Ratio of Expenses Before Expense Limitation | 13.28%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 1.34%<sup>(5)(7)</sup> |
| Ratio of Net Investment Loss | (0.11)%<sup>(5)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01%<sup>(7)</sup> |
| Portfolio Turnover Rate | 21%<sup>(6)</sup> |

---

(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) 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."

(6) Not annualized.

(7) Annualized

The accompanying notes are an integral part of the financial statements.<br>12

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Sustainable Emerging Markets Portfolio**

---

| | |
|:---|:---|
| | **Class C** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>September 30, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.02) |
| Net Realized and Unrealized Gain | 0.88 |
| Total from Investment Operations | 0.86 |
| **Net Asset Value, End of Period** | $10.86 |
| **Total Return<sup>(3)</sup>** | 8.60%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $54 |
| Ratio of Expenses Before Expense Limitation | 14.04%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limitation | 2.09%<sup>(4)(6)</sup> |
| Ratio of Net Investment Loss | (0.85)%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01%<sup>(6)</sup> |
| Portfolio Turnover Rate | 21%<sup>(5)</sup> |

---

(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 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) Not annualized.

(6) Annualized.

The accompanying notes are an integral part of the financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Sustainable Emerging Markets Portfolio**

---

| | |
|:---|:---|
| | **Class R6** |
|<br>**Selected Per Share Data and Ratios** | **Period from <br>September 30, 2022<sup>(1)</sup> to <br>December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $10.00 |
| **Income from Investment Operations:** | **Income from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.01 |
| Net Realized and Unrealized Gain | 0.88 |
| Total from Investment Operations | 0.89 |
| **Net Asset Value, End of Period** | $10.89 |
| **Total Return<sup>(3)</sup>** | 8.90%<sup>(5)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $54 |
| Ratio of Expenses Before Expense Limitation | 13.03%<sup>(6)</sup> |
| Ratio of Expenses After Expense Limintation | 0.94%<sup>(4)(6)</sup> |
| Ratio of Net Investment Income | 0.29%<sup>(4)(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01%<sup>(6)</sup> |
| Portfolio Turnover Rate | 21%<sup>(5)</sup> |

---

(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) Not annualized.

(6) Annualized.

The accompanying notes are an integral part of the financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Sustainable Emerging Markets Portfolio. The Fund seeks long-term capital appreciation.

The Fund commenced operations on September 30, 2022 and offers four classes of shares — Class I, Class A, Class C and Class R6.

**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 Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE;

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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.

In connection with Rule 2a-5 of the Act, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Air Freight & Logistics | $— | $31 | $— | $31 |
| Automobiles |  | 227 |  | 227 |
| Banks | 344 | 895 |  | 1239 |
| Consumer Finance |  | 109 |  | 109 |
| Containers & Packaging |  | 81 |  | 81 |
| Diversified Financial <br>Services |  | 56 |  | 56 |
| Diversified Financials |  | 86 |  | 86 |
| Electrical Equipment |  | 50 |  | 50 |
| Electronic Equipment, <br>Instruments & <br>Components |  | 247 |  | 247 |
| Food & Staples Retailing | 167 | 79 |  | 246 |
| Food Products |  | 6 |  | 6 |
| Health Care Providers & <br>Services |  | 149 |  | 149 |
| Hotels, Restaurants & <br>Leisure | 32 |  |  | 32 |
| Information Technology <br>Services | 96 | 90 |  | 186 |
| Insurance |  | 82 |  | 82 |
| Leisure Products |  | 33 |  | 33 |
| Machinery |  | 121 |  | 121 |
| Metals & Mining |  | 738 |  | 738 |
| Multi-Line Retail |  | 150 |  | 150 |
| Oil, Gas & Consumable <br>Fuels |  | 196 |  | 196 |
| Paper & Forest Products |  | 132 |  | 132 |
| Personal Products |  | 33 |  | 33 |
| Pharmaceuticals |  | 19 |  | 19 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Real Estate Management & <br>Development | $— | $45 | $— | $45 |
| Semiconductors & <br>Semiconductor <br>Equipment | 206 | 404 |  | 610 |
| Tech Hardware, Storage & <br>Peripherals |  | 320 |  | 320 |
| Textiles, Apparel & <br>Luxury Goods |  | 115 |  | 115 |
| **Total Common Stocks** | **845** | **4494** | **—** | **5339** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 81 |  |  | 81 |
| **Total Assets** | $**926** | $**4494** | $**—** | $**5420** |

---

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 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 U.S. 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. Redemption Fees:**The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**5. Indemnifications:**The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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.

**8. Offering Cost:** Offering costs are accounted for as a deferred charge until operations begin and thereafter are amortized to expense over twelve months on a straight-line basis.

**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 the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.75% | 0.70% |

---

For the period ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 0.99% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the period ended December 31, 2022, approximately $9,000 of advisory fees were waived and approximately $97,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

The Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:**The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company 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 December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $5,962,000 and $1,075,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the period ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by less 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 period ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company** | **Value<br>September 30,<br>2022<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $— | $3199 | $3118 | $1 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $81 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the period ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the 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 year ended December 31, 2022 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 2022.

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 December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Distributable<br>Earnings<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $8 | $(8) |

---

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| |
|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** |
| $118 |

---

**I. Other:**At December 31, 2022, the Fund did not have record owners of 10% or greater.

**J. Market Risk:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Sustainable Emerging Markets Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Sustainable Emerging Markets Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statements of operations and changes in net assets and the financial highlights for the period from September 30, 2022 (commencement of operations) through December 31, 2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, and the results of its operations, the changes in its net assets and its financial highlights for the period from September 30, 2022, (commencement of operations) through December 31, 2022, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

![](j23279230_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program\* (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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 Fund's liquidity risk is assessed by the LRS 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.

\* The Fund commenced operations subsequent to the period covered by the report, which applied to other portfolios of the Company during that period. However, during the fiscal year ended December 31, 2022, the Program applied to the Fund.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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| | |
|:---|:---|
| **Who is providing this notice?** | Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (*see* Investment Management Affiliates definition below) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds<br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Sub-Adviser**

Morgan Stanley Investment Management Company<br>23 Church Street<br>16-01 Capital Square, Singapore 049481

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279230_za006.jpg)

IFISEMKTANN<br>5452884 EXP 02.29.24

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![](j23279231_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

US Core Portfolio

Annual Report

December 31, 2022

![](j23279231_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 6 |
| Statement of Assets and Liabilities | 7 |
| Statement of Operations | 8 |
| Statements of Changes in Net Assets | 9 |
| Financial Highlights | 10 |
| Notes to Financial Statements | 14 |
| Report of Independent Registered Public Accounting Firm | 20 |
| Liquidity Risk Management Program | 21 |
| Federal Tax Notice | 22 |
| U.S. Customer Privacy Notice | 23 |
| Director and Officer Information | 26 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

***Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary, through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.***

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in US Core Portfolio (the "Fund") performed during the latest twelve-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

![](j23279231_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**US Core Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| US Core Portfolio Class I | $1000.00 | $1017.10 | $1021.17 | $4.07 | $4.08 | 0.80% |
| US Core Portfolio Class A | 1000.00 | 1015.70 | 1019.61 | 5.64 | 5.65 | 1.11 |
| US Core Portfolio Class C | 1000.00 | 1012.00 | 1016.03 | 9.23 | 9.25 | 1.82 |
| US Core Portfolio Class R6<sup>(1)</sup> | 1000.00 | 1017.50 | 1021.48 | 3.76 | 3.77 | 0.74 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**US Core Portfolio**

The Fund seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –20.21%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the S&P 500® Index (the "Index"), which returned –18.11%.

**Factors Affecting Performance**

• The Fund underperformed its benchmark in 2022, a challenging period for equities overall. The final, harsh December drawdown marked the end of the worst calendar year for the equity markets since the 2008 financial crisis.

• For the duration of the reporting period, the Fund held both growth and value stocks, with some exposure to more defensive bond proxy stocks in terms of utilities and real estate investment trusts (REITs) to help mitigate market volatility.

• Value stocks were historically inexpensive with strong balance sheets, providing potential for strong upside. These value cyclical stocks had mixed performance for the period. The portfolio overweight to energy, the best performing sector of the reporting period, positively contributed to performance.

• Within the context of a rising rate environment, the portfolio allocation to financials was a decision that contributed positively to performance.

• The portfolio had exposure to some growth, while avoiding the uber-growth stocks which were elevated in terms of their historical valuation levels for much of the period, implying unreasonably high expectations, which benefited portfolio performance for the period. The Fund's underweight to technology/communications services companies positively contributed to performance.

• The team attempts to invest in stocks that have demonstrated themselves as long-term winning positions; however, those stocks lagged the performance of the long-term losers, and thus negatively impacted performance.

• Entering 2023, the portfolio holds about 45% growth and 55% value/core stocks, with an increasing bias toward value versus growth.

• Within stock selection, the largest detractors were positions in a health care company stock that suffered in the shift away from COVID-related products, especially following a uniquely strong year in 2021; a U.S. commercial bank catering to venture capital and credit investors negatively impacted by Federal Reserve rate increases and deal slowdowns; and two technology companies that were impacted by the potential for increased government regulation on top of slowing growth due to tightening budgets and difficult comparisons following a period of heightened demand during the work-from-home period. In addition, the portfolio overweight to companies considered to be long-term winners negatively impacted performance.

• The Fund benefited from good stock selection within value sectors. A position within a U.S.-based global, integrated energy company led positive contributors for the period, followed by positions in financials, including an insurer and a financial services/asset management company.

**Management Strategies**

• There have been no changes to the investment process during the period. Applied Equity Advisors' investment process is comprised of two parts: a Style Positioning Engine and a Stock Selection Engine. The first step, the Style Positioning Engine, takes into account not only what market styles (growth, value, defensive) or areas of the market are in leadership, but also how much momentum a particular style has, whether that style is cheap or expensive, and whether the timing is right to be tilted toward that style. The timing decision comes down to the team's judgment and our combined decades of experience in factor investing. With regard to the Style Positioning Engine, investing in a particular area of the market that shows cheap historical valuation levels may not appear to be advantageous at first, but if chosen correctly, sticking with that investment often proves to be successful over the longer term. The Stock Selection Engine begins its work once the desired style positioning is understood. There are three steps to the Stock Selection Engine: 1. determining which stocks are most correlated to the desired style and least correlated to other portfolio positions, 2. evaluation of the company fundamentals, and 3. Sustainability Analysis. The result is a highly active portfolio of fundamentally attractive stocks that the team believes could benefit from what we have identified to be investment styles likely to outperform.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**US Core Portfolio**

![](j23279231_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on May 27, 2016.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the S&P 500<sup>®</sup> Index<sup>(1)</sup> and the Lipper Multi-Cap Core Funds Index<sup>(2)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –20.21% | 10.28% |  | 11.53% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –20.42 | 9.94 |  | 11.16 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –24.59 | 8.75 |  | 10.26 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –20.97 | 9.12 |  | 10.33 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> | –21.76 | 9.12 |  | 10.33 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –20.16 | 10.34 |  | 11.58 |
| S&P 500<sup>®</sup> Index | –18.11 | 9.42 |  | 11.61 |
| Lipper Multi-Cap Core Funds <br>Index | –17.99 | 7.89 |  | 10.28 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Standard & Poor's 500<sup>®</sup> Index (S&P 500<sup>®</sup> Index) measures the performance of the large cap segment of the U.S. equities market, covering approximately 80% of the U.S. equities market. The Index includes 500 leading companies in leading industries of the U.S. economy. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Multi-Cap Core Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Multi-Cap Core Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Multi-Cap Core Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on May 27, 2016. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**US Core Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (97.9%)** | **Common Stocks (97.9%)** | **Common Stocks (97.9%)** |
| Banks (8.9%) | Banks (8.9%) | Banks (8.9%) |
| First Republic Bank | 78940 | $9622 |
| JPMorgan Chase & Co. | 47236 | 6334 |
| SVB Financial Group (a) | 19435 | 4473 |
|  |  | 20429 |
| Building Products (1.5%) | Building Products (1.5%) | Building Products (1.5%) |
| Fortune Brands Innovations, Inc. | 53812 | 3073 |
| Masterbrand, Inc. | 53812 | 406 |
|  |  | 3479 |
| Capital Markets (4.0%) | Capital Markets (4.0%) | Capital Markets (4.0%) |
| Ameriprise Financial, Inc. | 29502 | 9186 |
| Commercial Services & Supplies (4.1%) | Commercial Services & Supplies (4.1%) | Commercial Services & Supplies (4.1%) |
| Waste Management, Inc. | 59520 | 9338 |
| Distributors (2.5%) | Distributors (2.5%) | Distributors (2.5%) |
| Pool Corp. | 19271 | 5826 |
| Electric Utilities (3.5%) | Electric Utilities (3.5%) | Electric Utilities (3.5%) |
| NextEra Energy, Inc. | 96088 | 8033 |
| Equity Real Estate Investment Trusts (REITs) (4.5%) | Equity Real Estate Investment Trusts (REITs) (4.5%) | Equity Real Estate Investment Trusts (REITs) (4.5%) |
| SBA Communications Corp. REIT | 13858 | 3885 |
| STORE Capital Corp. REIT | 202416 | 6489 |
|  |  | 10374 |
| Food & Staples Retailing (3.2%) | Food & Staples Retailing (3.2%) | Food & Staples Retailing (3.2%) |
| Costco Wholesale Corp. | 15956 | 7284 |
| Health Care Equipment & Supplies (0.5%) | Health Care Equipment & Supplies (0.5%) | Health Care Equipment & Supplies (0.5%) |
| Edwards Lifesciences Corp. (a) | 13929 | 1039 |
| Health Care Technology (0.8%) | Health Care Technology (0.8%) | Health Care Technology (0.8%) |
| Veeva Systems, Inc., Class A (a) | 11195 | 1807 |
| Hotels, Restaurants & Leisure (5.3%) | Hotels, Restaurants & Leisure (5.3%) | Hotels, Restaurants & Leisure (5.3%) |
| McDonald's Corp. | 33032 | 8705 |
| MGM Resorts International | 101237 | 3394 |
|  |  | 12099 |
| Household Durables (1.0%) | Household Durables (1.0%) | Household Durables (1.0%) |
| Lennar Corp., Class A | 26463 | 2395 |
| Information Technology Services (3.3%) | Information Technology Services (3.3%) | Information Technology Services (3.3%) |
| Jack Henry & Associates, Inc. | 17413 | 3057 |
| Mastercard, Inc., Class A | 12659 | 4402 |
|  |  | 7459 |
| Insurance (6.6%) | Insurance (6.6%) | Insurance (6.6%) |
| Brown & Brown, Inc. S | 95060 | 5416 |
| Progressive Corp. | 74590 | 9675 |
|  |  | 15091 |
| Interactive Media & Services (5.3%) | Interactive Media & Services (5.3%) | Interactive Media & Services (5.3%) |
| Alphabet, Inc., Class A (a) | 138476 | 12218 |
| Life Sciences Tools & Services (5.3%) | Life Sciences Tools & Services (5.3%) | Life Sciences Tools & Services (5.3%) |
| Danaher Corp. | 35217 | 9348 |
| West Pharmaceutical Services, Inc. | 12306 | 2896 |
|  |  | 12244 |
| Metals & Mining (0.3%) | Metals & Mining (0.3%) | Metals & Mining (0.3%) |
| Nucor Corp. | 4980 | 656 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Multi-Line Retail (1.2%) | Multi-Line Retail (1.2%) | Multi-Line Retail (1.2%) |
| Dollar General Corp. | 10774 | $2653 |
| Oil, Gas & Consumable Fuels (7.2%) | Oil, Gas & Consumable Fuels (7.2%) | Oil, Gas & Consumable Fuels (7.2%) |
| Chevron Corp. | 80011 | 14361 |
| Valero Energy Corp. | 17802 | 2259 |
|  |  | 16620 |
| Personal Products (1.7%) | Personal Products (1.7%) | Personal Products (1.7%) |
| Estee Lauder Cos., Inc., Class A | 15970 | 3962 |
| Software (7.7%) | Software (7.7%) | Software (7.7%) |
| Microsoft Corp. | 73225 | 17561 |
| Specialty Retail (6.8%) | Specialty Retail (6.8%) | Specialty Retail (6.8%) |
| Home Depot, Inc. | 36120 | 11409 |
| RH (a) | 11781 | 3148 |
| TJX Cos., Inc. | 14541 | 1157 |
|  |  | 15714 |
| Tech Hardware, Storage & Peripherals (7.1%) | Tech Hardware, Storage & Peripherals (7.1%) | Tech Hardware, Storage & Peripherals (7.1%) |
| Apple, Inc. | 125829 | 16349 |
| Textiles, Apparel & Luxury Goods (1.6%) | Textiles, Apparel & Luxury Goods (1.6%) | Textiles, Apparel & Luxury Goods (1.6%) |
| Lululemon Athletica, Inc. (a) | 11321 | 3627 |
| Trading Companies & Distributors (4.0%) | Trading Companies & Distributors (4.0%) | Trading Companies & Distributors (4.0%) |
| United Rentals, Inc. (a) | 25981 | 9234 |
| **Total Common Stocks (Cost $232,766)** | **Total Common Stocks (Cost $232,766)** | 224677 |
| **Short-Term Investment (1.8%)** | **Short-Term Investment (1.8%)** | **Short-Term Investment (1.8%)** |
| Investment Company (1.8%) | Investment Company (1.8%) | Investment Company (1.8%) |
| Morgan Stanley Institutional Liquidity Funds — <br>Treasury Securities Portfolio — Institutional <br>Class (See Note G) **(Cost $4,147)** | 4147037 | 4147 |
| **Total Investments (99.7%) (Cost $236,913) (b)** | **Total Investments (99.7%) (Cost $236,913) (b)** | 228824 |
| Other Assets in Excess of Liabilities (0.3%) | Other Assets in Excess of Liabilities (0.3%) | 697 |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $229521 |

---

(a) Non-income producing security.

(b) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $241,058,000. The aggregate gross unrealized appreciation is approximately $9,592,000 and the aggregate gross unrealized depreciation is approximately $21,784,000, resulting in net unrealized depreciation of approximately $12,192,000.

REIT Real Estate Investment Trust.

**Portfolio Composition**

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Other\* | 39.5% |
| Banks | 8.9 |
| Software | 7.7 |
| Oil, Gas & Consumable Fuels | 7.3 |
| Tech Hardware, Storage & Peripherals | 7.1 |
| Specialty Retail | 6.9 |
| Insurance | 6.6 |
| Life Sciences Tools & Services | 5.4 |
| Interactive Media & Services | 5.3 |
| Hotels, Restaurants & Leisure | 5.3 |
| Total Investments | 100.0% |

---

\* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**US Core Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $232,766) | $224677 |
| Investment in Security of Affiliated Issuer, at Value (Cost $4,147) | 4147 |
| Total Investments in Securities, at Value (Cost $236,913) | 228824 |
| Receivable for Fund Shares Sold | 1188 |
| Dividends Receivable | 17 |
| Receivable from Affiliate | 15 |
| Other Assets | 44 |
| **Total Assets** | 230088 |
| **Liabilities:** | **Liabilities:** |
| Payable for Advisory Fees | 225 |
| Payable for Fund Shares Redeemed | 215 |
| Payable for Professional Fees | 47 |
| Payable for Shareholder Services Fees — Class A | 9 |
| Payable for Distribution and Shareholder Services Fees — Class C | 31 |
| Payable for Administration Fees | 16 |
| Payable for Transfer Agency Fees — Class I | 4 |
| Payable for Transfer Agency Fees — Class A | 1 |
| Payable for Transfer Agency Fees — Class C | 1 |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Payable for Sub Transfer Agency Fees — Class I | 2 |
| Payable for Sub Transfer Agency Fees — Class A | 3 |
| Payable for Custodian Fees | 3 |
| Other Liabilities | 10 |
| **Total Liabilities** | 567 |
| **Net Assets** | $229521 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $247502 |
| Total Accumulated Loss | (17981 |
| **Net Assets** | $229521 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $151003 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 7710537 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.58 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $41802 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 2154792 |
| **Net Asset Value, Redemption Price Per Share** | $19.40 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $1.07 |
| **Maximum Offering Price Per Share** | $20.47 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $36707 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1972604 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $18.61 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $9 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 436 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $19.60 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**US Core Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers | $2255 |
| Dividends from Security of Affiliated Issuer (Note G) | 54 |
| Total Investment Income | 2309 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 1192 |
| Shareholder Services Fees — Class A (Note D) | 95 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 347 |
| Sub Transfer Agency Fees — Class I | 116 |
| Sub Transfer Agency Fees — Class A | 31 |
| Sub Transfer Agency Fees — Class C | 18 |
| Administration Fees (Note C) | 159 |
| Professional Fees | 135 |
| Registration Fees | 116 |
| Shareholder Reporting Fees | 43 |
| Transfer Agency Fees — Class I (Note E) | 9 |
| Transfer Agency Fees — Class A (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 3 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Custodian Fees (Note F) | 16 |
| Directors' Fees and Expenses | 7 |
| Pricing Fees | 2 |
| Other Expenses | 17 |
| Total Expenses | 2311 |
| Waiver of Advisory Fees (Note B) | (196) |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (62) |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2) |
| Rebate from Morgan Stanley Affiliate (Note G) | (5) |
| Net Expenses | 2046 |
| **Net Investment Income** | 263 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (9637) |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (36749) |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (46386) |
| Net Decrease in Net Assets Resulting from Operations | $(46123) |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the financial statements.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**US Core Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $263 | $37 |
| Net Realized Gain (Loss) | (9637 | 327 |
| Net Change in Unrealized Appreciation (Depreciation) | (36749 | 19892 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (46123 | 20256 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (314 | (40 |
| **Class A** | (22 |  |
| **Class C** | (20 |  |
| **Class R6\*** | (— | (— |
| Total Dividends and Distributions to Shareholders | (356 | (40 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 175410 | 91162 |
| Distributions Reinvested | 314 | 40 |
| Redeemed | (105002 | (15252 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 37936 | 31955 |
| Distributions Reinvested | 22 |  |
| Redeemed | (22403 | (7229 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 32309 | 18088 |
| Distributions Reinvested | 20 |  |
| Redeemed | (10256 | (842 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 20 | 229 |
| Distributions Reinvested |  |  |
| Redeemed | (272 | (20 |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 108098 | 118131 |
| Total Increase in Net Assets | 61619 | 138347 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 167902 | 29555 |
| End of Period | $229521 | $167902 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 8220 | 4036 |
| Shares Issued on Distributions Reinvested | 16 | 2 |
| Shares Redeemed | (5010 | (679 |
| Net Increase in Class I Shares Outstanding | 3226 | 3359 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 1812 | 1424 |
| Shares Issued on Distributions Reinvested | 1 |  |
| Shares Redeemed | (1081 | (325 |
| Net Increase in Class A Shares Outstanding | 732 | 1099 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 1538 | 810 |
| Shares Issued on Distributions Reinvested | 1 |  |
| Shares Redeemed | (527 | (41 |
| Net Increase in Class C Shares Outstanding | 1012 | 769 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 1 | 12 |
| Shares Issued on Distributions Reinvested |  |  |
| Shares Redeemed | (12 | (1 |
| Net Increase (Decrease) in Class R6 Shares Outstanding | (11 | 11 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**US Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $24.59 | $18.09 | $14.61 | $10.89 | $12.41 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.08 | 0.05 | 0.06 | 0.09 | 0.11 |
| Net Realized and Unrealized Gain (Loss) | (5.05) | 6.46 | 3.47 | 3.82 | (1.47) |
| Total from Investment Operations | (4.97) | 6.51 | 3.53 | 3.91 | (1.36) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.03) | (0.01) |  | (0.09) | (0.05) |
| Net Realized Gain | (0.01) |  | (0.05) | (0.10) | (0.11) |
| Total Distributions | (0.04) | (0.01) | (0.05) | (0.19) | (0.16) |
| **Net Asset Value, End of Period** | $19.58 | $24.59 | $18.09 | $14.61 | $10.89 |
| **Total Return<sup>(2)</sup>** | (20.21)% | 35.99% | 24.20% | 36.01% | (11.00)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $151003 | $110286 | $20377 | $13086 | $7532 |
| Ratio of Expenses Before Expense Limitation | 0.95% | 1.07% | 1.97% | 2.09% | 2.31% |
| Ratio of Expenses After Expense Limitation | 0.80%<sup>(3)</sup> | 0.80%<sup>(3)</sup> | 0.80%<sup>(3)</sup> | 0.78%<sup>(3)</sup> | 0.80%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.80%<sup>(3)</sup> | 0.80%<sup>(3)</sup> | 0.79%<sup>(3)</sup> | N/A | N/A |
| Ratio of Net Investment Income | 0.37%<sup>(3)</sup> | 0.21%<sup>(3)</sup> | 0.42%<sup>(3)</sup> | 0.71%<sup>(3)</sup> | 0.86%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 23% | 26% | 54% | 69% | 60% |

---

(1) Per share amount is based on average shares outstanding.

(2) Calculated based on the net asset value as of the last business day of the period.

(3) 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."

(4) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**US Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $24.39 | $17.99 | $14.58 | $10.86 | $12.38 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.01 | (0.01) | 0.01 | 0.05 | 0.07 |
| Net Realized and Unrealized Gain (Loss) | (4.99) | 6.41 | 3.45 | 3.82 | (1.47) |
| Total from Investment Operations | (4.98) | 6.40 | 3.46 | 3.87 | (1.40) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income |  |  |  | (0.05) | (0.01) |
| Net Realized Gain | (0.01) |  | (0.05) | (0.10) | (0.11) |
| Total Distributions | (0.01) |  | (0.05) | (0.15) | (0.12) |
| **Net Asset Value, End of Period** | $19.40 | $24.39 | $17.99 | $14.58 | $10.86 |
| **Total Return<sup>(2)</sup>** | (20.42)% | 35.58% | 23.77% | 35.68% | (11.35)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $41802 | $34693 | $5807 | $3393 | $1833 |
| Ratio of Expenses Before Expense Limitation | 1.19% | 1.36% | 2.29% | 2.46% | 2.68% |
| Ratio of Expenses After Expense Limitation | 1.09%<sup>(3)</sup> | 1.09%<sup>(3)</sup> | 1.12%<sup>(3)</sup> | 1.15%<sup>(3)</sup> | 1.15%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.09%<sup>(3)</sup> | 1.09%<sup>(3)</sup> | 1.11%<sup>(3)</sup> | N/A | N/A |
| Ratio of Net Investment Income (Loss) | 0.07%<sup>(3)</sup> | (0.06)%<sup>(3)</sup> | 0.07%<sup>(3)</sup> | 0.34%<sup>(3)</sup> | 0.55%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 23% | 26% | 54% | 69% | 60% |

---

(1) Per share amount is based on average shares outstanding.

(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(3) 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."

(4) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**US Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $23.56 | $17.51 | $14.30 | $10.70 | $12.28 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Loss<sup>(1)</sup> | (0.13) | (0.17) | (0.10) | (0.05) | (0.03) |
| Net Realized and Unrealized Gain (Loss) | (4.81) | 6.22 | 3.36 | 3.75 | (1.44) |
| Total from Investment Operations | (4.94) | 6.05 | 3.26 | 3.70 | (1.47) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Realized Gain | (0.01) |  | (0.05) | (0.10) | (0.11) |
| Total Distributions | (0.01) |  | (0.05) | (0.10) | (0.11) |
| **Net Asset Value, End of Period** | $18.61 | $23.56 | $17.51 | $14.30 | $10.70 |
| **Total Return<sup>(2)</sup>** | (20.97)% | 34.55% | 22.84% | 34.50% | (11.94)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $36707 | $22638 | $3353 | $2489 | $1563 |
| Ratio of Expenses Before Expense Limitation | 1.91% | 2.12% | 3.07% | 3.23% | 3.44% |
| Ratio of Expenses After Expense Limitation | 1.81%<sup>(3)</sup> | 1.84%<sup>(3)</sup> | 1.90%<sup>(3)</sup> | 1.90%<sup>(3)</sup> | 1.90%<sup>(3)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.81%<sup>(3)</sup> | 1.84%<sup>(3)</sup> | 1.90%<sup>(3)</sup> | N/A | N/A |
| Ratio of Net Investment Loss | (0.65)%<sup>(3)</sup> | (0.80)%<sup>(3)</sup> | (0.68)%<sup>(3)</sup> | (0.39)%<sup>(3)</sup> | (0.22)%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> | 0.00%<sup>(4)</sup> |
| Portfolio Turnover Rate | 23% | 26% | 54% | 69% | 60% |

---

(1) Per share amount is based on average shares outstanding.

(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(3) 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."

(4) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**US Core Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $24.61 | $18.10 | $14.61 | $10.88 | $12.41 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.06 | 0.06 | 0.07 | 0.10 | 0.12 |
| Net Realized and Unrealized Gain (Loss) | (5.02) | 6.47 | 3.47 | 3.83 | (1.48) |
| Total from Investment Operations | (4.96) | 6.53 | 3.54 | 3.93 | (1.36) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.04) | (0.02) |  | (0.10) | (0.06) |
| Net Realized Gain | (0.01) |  | (0.05) | (0.10) | (0.11) |
| Total Distributions | (0.05) | (0.02) | (0.05) | (0.20) | (0.17) |
| **Net Asset Value, End of Period** | $19.60 | $24.61 | $18.10 | $14.61 | $10.88 |
| **Total Return<sup>(3)</sup>** | (20.16)% | 36.06% | 24.27% | 36.17% | (11.04)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $9 | $285 | $18 | $26 | $11 |
| Ratio of Expenses Before Expense Limitation | 3.92% | 2.20% | 13.73% | 16.90% | 16.44% |
| Ratio of Expenses After Expense Limitation | 0.75%<sup>(4)</sup> | 0.75%<sup>(4)</sup> | 0.75%<sup>(4)</sup> | 0.75%<sup>(4)</sup> | 0.75%<sup>(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.75%<sup>(4)</sup> | 0.75%<sup>(4)</sup> | 0.75%<sup>(4)</sup> | N/A | N/A |
| Ratio of Net Investment Income | 0.28%<sup>(4)</sup> | 0.25%<sup>(4)</sup> | 0.50%<sup>(4)</sup> | 0.74%<sup>(4)</sup> | 0.92%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 23% | 26% | 54% | 69% | 60% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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%.

The accompanying notes are an integral part of the financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the US Core Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Banks | $20429 | $— | $— | $20429 |
| Building Products | 3479 |  |  | 3479 |
| Capital Markets | 9186 |  |  | 9186 |
| Commercial Services & <br>Supplies | 9338 |  |  | 9338 |
| Distributors | 5826 |  |  | 5826 |
| Electric Utilities | 8033 |  |  | 8033 |
| Equity Real Estate <br>Investment Trusts <br>(REITs) | 10374 |  |  | 10374 |
| Food & Staples Retailing | 7284 |  |  | 7284 |
| Health Care Equipment & <br>Supplies | 1039 |  |  | 1039 |
| Health Care Technology | 1807 |  |  | 1807 |
| Hotels, Restaurants & <br>Leisure | 12099 |  |  | 12099 |
| Household Durables | 2395 |  |  | 2395 |
| Information Technology <br>Services | 7459 |  |  | 7459 |
| Insurance | 15091 |  |  | 15091 |
| Interactive Media & <br>Services | 12218 |  |  | 12218 |
| Life Sciences Tools & <br>Services | 12244 |  |  | 12244 |
| Metals & Mining | 656 |  |  | 656 |
| Multi-Line Retail | 2653 |  |  | 2653 |
| Oil, Gas & Consumable <br>Fuels | 16620 |  |  | 16620 |
| Personal Products | 3962 |  |  | 3962 |
| Software | 17561 |  |  | 17561 |
| Specialty Retail | 15714 |  |  | 15714 |
| Tech Hardware, <br>Storage & Peripherals | 16349 |  |  | 16349 |
| Textiles, Apparel & <br>Luxury Goods | 3627 |  |  | 3627 |
| Trading Companies & <br>Distributors | 9234 |  |  | 9234 |
| **Total Common Stocks** | **224677** | **—** | **—** | **224677** |
| **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** | **Short-Term Investment** |
| Investment Company | 4147 |  |  | 4147 |
| **Total Assets** | $**228824** | $**—** | $**—** | $**228824** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

**3. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

**4. 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.

**5. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 $750<br>million** | **Next $750<br>million** | **Over $1.5<br>billion** |
| 0.60% | 0.55% | 0.50% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.50% 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 R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $196,000 of advisory fees were waived and approximately $64,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $152,897,000 and $45,209,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the year ended December 31, 2022, advisory fees paid were reduced by approximately $5,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company** | **Value<br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $4635 | $122504 | $122992 | $54 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $4147 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022<br>Distributions<br>Paid From:** | **2022<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $236 | $120 | $40 | $— |

---

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 December 31, 2022.

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $54 | $— |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of $5,171,000 and $650,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 70.6%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand,

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>US Core Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of US Core Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279231_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 100% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $120,000 as a long-term capital gain distribution.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $236,000 as taxable at this lower rate.

In January, the Fund provides tax information to shareholders for the preceding calendar year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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| | |
|:---|:---|
| **Who is providing this notice?** | Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (*see* Investment Management Affiliates definition below) |

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**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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279231_za006.jpg)

IFIUSCPANN<br>5452872 EXP 02.29.24

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![](j23279232_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

U.S. Focus Real Estate Portfolio

Annual Report

December 31, 2022

![](j23279232_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022** 

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 6 |
| 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 |
| Report of Independent Registered Public Accounting Firm | 22 |
| Liquidity Risk Management Program | 23 |
| Federal Tax Notice | 24 |
| U.S. Customer Privacy Notice | 25 |
| Director and Officer Information | 28 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

***Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary, through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.***

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in U.S. Focus Real Estate Portfolio (the "Fund") performed during the latest twelve-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

![](j23279232_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**U.S. Focus Real Estate Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| U.S. Focus Real Estate Portfolio Class I | $1000.00 | $909.40 | $1020.72 | $4.28 | $4.53 | 0.89% |
| U.S. Focus Real Estate Portfolio Class A | 1000.00 | 907.80 | 1018.90 | 6.01 | 6.36 | 1.25 |
| U.S. Focus Real Estate Portfolio Class C | 1000.00 | 904.40 | 1015.12 | 9.60 | 10.16 | 2.00 |
| U.S. Focus Real Estate Portfolio Class R6<sup>(1)</sup> | 1000.00 | 909.70 | 1020.92 | 4.09 | 4.33 | 0.85 |

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\* 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 184/365 (to reflect the actual days accrued in the period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**U.S. Focus Real Estate Portfolio**

The Fund seeks to provide current income and long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –27.56%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the FTSE Nareit All Equity REITs Index (the "Index"), which returned –24.95%.

**Factors Affecting Performance**

• Amid a down market primarily dominated by inflation and related concerns — recession, rising interest rates — the real estate sector underperformed the broader equity markets. The Federal Reserve (Fed) announced its first interest rate hike of 25 basis points (bps)<sup>(i)</sup> in the first quarter of 2022, followed by more aggressive interest rate hikes in increments of 50 and 75 bps, surprising the market and investors. The Fed's aggressive monetary policy tightening was negative for risk assets, including real estate, and led to negative absolute performance for real estate investment trusts (REITs).

• The Fund's security selection in retail and apartments and the underweight to office companies were the top relative contributors for the year. Key detractors included underweights to net lease excluding retail and hotels, and security selection in data centers and health care.

**Management Strategies**

• The team uses internal proprietary research to invest in public real estate companies that we believe offer the best value relative to their underlying assets and growth prospects. The team combines a bottom-up approach, assessing the intrinsic value, equity multiples and growth prospects of each security, with a top-down view that incorporates fundamental inflection points, macroeconomic considerations, and geopolitical risk, and actively selects positions in a limited number of equity securities. By incorporating both an equity market valuation and a more traditional real estate valuation with a top-down overlay, we

believe the Fund will be better prepared to identify securities with the best expected total returns.

• Forecasted returns for the listed real estate asset class have deteriorated in the intermediate term given the more challenging macro backdrop. However, we believe relative strength in cash flows can be expected given the unique nature of listed real estate. Specifically, the contracted rental streams with inflation-linked escalations and the necessity-based nature of real estate — the listed real estate market evolves and grows with the broader needs of society and the economy and sits at the epicenter of how people live, work, shop and communicate — coupled with limited new real estate supply additions due to rising construction costs, may portend limited downside in cash flows and support more resiliency in fundamentals, despite near-term macro uncertainty. While our cash flow growth estimates have been reduced for 2023 in light of our expectation for lower gross domestic product growth and a potential recession, we still forecast attractive cash flow growth rates for REITs.

• Real estate values are ultimately a function of supply, demand and credit. With demand moderating due to slowing growth and credit markets tightening with increasing interest rates, we believe real estate values within the public markets have suffered. Despite the inflation protection typically associated with the listed real estate sector, REITs underperformed the broader equities market. At the same time, and as is often the case, values within the private markets are taking longer to adjust. The appraisal-based nature of private real estate typically lags public valuations by approximately 12 months, while the daily pricing and volatility of listed real estate typically results in overcorrections in the public markets, which may create an interesting arbitrage opportunity as there may be some potential contraction in private real estate values and potential appreciation in public real estate. While credit markets remain tight, we believe the trajectory of Fed interest rate hikes is expected to slow, allowing for normalization in lending, spreads and real estate capitalization rates. Ultimately, we believe the growth profile and values of REITs should hold up better than broader equities and private real estate in 2023.

<sup>(i)</sup> One basis point = 0.01%

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**U.S. Focus Real Estate Portfolio**

![](j23279232_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on September 30, 2021.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the the FTSE Nareit All Equity REITs Index<sup>(1)</sup> and the Lipper Real Estate Funds Index<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –27.56% |  |  | –13.81% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –27.83 |  |  | –14.12 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –31.60 |  |  | –17.72 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –28.39 |  |  | –14.78 |
| Fund — Class C Shares with <br>maximum 1.00% deferred <br>sales charges<sup>(4)</sup> | –29.10 |  |  | –14.78 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –27.53 |  |  | –13.77 |
| FTSE Nareit All Equity REITs Index | –24.95 |  |  | –10.37 |
| Lipper Real Estate Funds Index | –25.93 |  |  | –12.27 |

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***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The FTSE Nareit All Equity REITs Index is a free-float adjusted, market capitalization-weighted index of U.S. equity REITs. Constituents of the index include all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Real Estate Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Real Estate Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Real Estate Funds classification."

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on September 30, 2021. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**U.S. Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (99.1%)** | **Common Stocks (99.1%)** | **Common Stocks (99.1%)** |
| Apartments (9.3%) | Apartments (9.3%) | Apartments (9.3%) |
| Mid-America Apartment Communities, Inc. REIT | 1266 | $199 |
| UDR, Inc. REIT | 4862 | 188 |
|  |  | 387 |
| Data Centers (8.8%) | Data Centers (8.8%) | Data Centers (8.8%) |
| Digital Realty Trust, Inc. REIT | 1676 | 168 |
| Equinix, Inc. REIT | 302 | 198 |
|  |  | 366 |
| Free Standing (6.4%) | Free Standing (6.4%) | Free Standing (6.4%) |
| Agree Realty Corp. REIT | 2728 | 194 |
| NETSTREIT Corp. REIT (a) | 3897 | 71 |
|  |  | 265 |
| Health Care (6.8%) | Health Care (6.8%) | Health Care (6.8%) |
| Welltower, Inc. REIT | 4315 | 283 |
| Industrial (12.4%) | Industrial (12.4%) | Industrial (12.4%) |
| Americold Realty Trust REIT | 3701 | 105 |
| Prologis, Inc. REIT | 3628 | 409 |
|  |  | 514 |
| lnfrastructure REITs (15.3%) | lnfrastructure REITs (15.3%) | lnfrastructure REITs (15.3%) |
| American Tower Corp. REIT | 1795 | 380 |
| SBA Communications Corp. REIT | 901 | 253 |
|  |  | 633 |
| Lodging/Resorts (2.2%) | Lodging/Resorts (2.2%) | Lodging/Resorts (2.2%) |
| Boyd Gaming Corp. | 735 | 40 |
| Host Hotels & Resorts, Inc. REIT | 3259 | 52 |
|  |  | 92 |
| Manufactured Homes (5.1%) | Manufactured Homes (5.1%) | Manufactured Homes (5.1%) |
| Sun Communities, Inc. REIT | 1492 | 213 |
| Regional Malls (4.4%) | Regional Malls (4.4%) | Regional Malls (4.4%) |
| Simon Property Group, Inc. REIT | 1557 | 183 |
| Self Storage (9.5%) | Self Storage (9.5%) | Self Storage (9.5%) |
| Life Storage, Inc. REIT | 1175 | 116 |
| Public Storage REIT | 992 | 278 |
|  |  | 394 |
| Shopping Centers (7.1%) | Shopping Centers (7.1%) | Shopping Centers (7.1%) |
| Brixmor Property Group, Inc. REIT | 6686 | 151 |
| Kite Realty Group Trust REIT | 6846 | 144 |
|  |  | 295 |
| Single Family Homes (3.2%) | Single Family Homes (3.2%) | Single Family Homes (3.2%) |
| American Homes 4 Rent, Class A REIT | 4345 | 131 |
| Specialty (8.6%) | Specialty (8.6%) | Specialty (8.6%) |
| Iron Mountain, Inc. REIT | 3222 | 161 |
| VICI Properties, Inc. REIT | 6054 | 196 |
|  |  | 357 |
| **Total Common Stocks (Cost $4,471)** | **Total Common Stocks (Cost $4,471)** | 4113 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Short-Term Investments (3.1%)** | **Short-Term Investments (3.1%)** | **Short-Term Investments (3.1%)** |
| Securities held as Collateral on Loaned Securities (1.8%) | Securities held as Collateral on Loaned Securities (1.8%) | Securities held as Collateral on Loaned Securities (1.8%) |
| Investment Company (1.5%) | Investment Company (1.5%) | Investment Company (1.5%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 62454 | $62 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.3%) | Repurchase Agreements (0.3%) | Repurchase Agreements (0.3%) |
| HSBC Securities USA, Inc. (4.27%, <br>dated 12/30/22, due 1/3/23; proceeds $6; <br>fully collateralized by a U.S. Government <br>obligation; 4.38% due 5/15/41; <br>valued at $6) | $6 | 6 |
| Merrill Lynch & Co., Inc. (4.25%,<br>dated 12/30/22, due 1/3/23; proceeds $6; <br>fully collateralized by a U.S. Government <br>obligation; 1.50% due 2/15/25; <br>valued at $6) | 6 | 6 |
|  |  | 12 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $74)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $74)** | 74 |
|  | **Shares** |  |
| Investment Company (1.3%) | Investment Company (1.3%) | Investment Company (1.3%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $53)** | 53007 | 53 |
| **Total Short-Term Investments (Cost $127)** | **Total Short-Term Investments (Cost $127)** | 127 |
| **Total Investments (102.2%) (Cost $4,598) <br>Including $71 of Securities Loaned (b)** | **Total Investments (102.2%) (Cost $4,598) <br>Including $71 of Securities Loaned (b)** | 4240 |
| Liabilities in Excess of Other Assets (–2.2%) | Liabilities in Excess of Other Assets (–2.2%) | (91) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $4149 |

---

(a) All or a portion of this security was on loan at December 31, 2022.

(b) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $4,613,000. The aggregate gross unrealized appreciation is approximately $45,000 and the aggregate gross unrealized depreciation is approximately $421,000, resulting in net unrealized depreciation of approximately $376,000.

REIT Real Estate Investment Trust.

The accompanying notes are an integral part of the financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**U.S. Focus Real Estate Portfolio**

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| lnfrastructure REITs | 15.2% |
| Industrial | 12.3 |
| Others\*\* | 11.0 |
| Self Storage | 9.5 |
| Apartments | 9.2 |
| Data Centers | 8.8 |
| Specialty | 8.6 |
| Shopping Centers | 7.1 |
| Health Care | 6.8 |
| Free Standing | 6.4 |
| Manufactured Homes | 5.1 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

\*\* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Focus Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $4,483) | $4125 |
| Investment in Security of Affiliated Issuer, at Value (Cost $115) | 115 |
| Total Investments in Securities, at Value (Cost $4,598) | 4240 |
| Foreign Currency, at Value (Cost —@) |  |
| Due from Adviser | 41 |
| Dividends Receivable | 13 |
| Receivable from Affiliate |  |
| Other Assets | 41 |
| **Total Assets** | 4335 |
| **Liabilities:** | **Liabilities:** |
| Collateral on Securities Loaned, at Value | 74 |
| Payable for Offering Costs | 47 |
| Payable for Professional Fees | 39 |
| 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 R6\* |  |
| Payable for Custodian Fees | 1 |
| Payable for Shareholder Services Fees — Class A |  |
| Payable for Distribution and Shareholder Services Fees — Class C |  |
| Payable for Sub Transfer Agency Fees — Class I |  |
| Payable for Administration Fees |  |
| Other Liabilities | 25 |
| **Total Liabilities** | 186 |
| **Net Assets** | $4149 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $5110 |
| Total Accumulated Loss | (961 |
| **Net Assets** | $4149 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $4025 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 497123 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $8.10 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $41 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5101 |
| **Net Asset Value, Redemption Price Per Share** | $8.10 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.45 |
| **Maximum Offering Price Per Share** | $8.55 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $41 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5053 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $8.10 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $42 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5128 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $8.10 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $71 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Focus Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld) | $121 |
| Dividends from Security of Affiliated Issuer (Note G) | 1 |
| Total Investment Income | 122 |
| **Expenses:** | **Expenses:** |
| Professional Fees | 121 |
| Offering Costs | 121 |
| Advisory Fees (Note B) | 33 |
| Shareholder Reporting Fees | 30 |
| Registration Fees | 28 |
| Transfer Agency Fees — Class I (Note E) | 2 |
| Transfer Agency Fees — Class A (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Administration Fees (Note C) | 4 |
| Custodian Fees (Note F) | 3 |
| Directors' Fees and Expenses | 3 |
| Pricing Fees | 2 |
| Shareholder Services Fees — Class A (Note D) |  |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Sub Transfer Agency Fees — Class I |  |
| Other Expenses | 9 |
| Total Expenses | 362 |
| Expenses Reimbursed by Adviser (Note B) | (280 |
| Waiver of Advisory Fees (Note B) | (33 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 43 |
| **Net Investment Income** | 79 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold | (624 |
| Foreign Currency Translation |  |
| Net Realized Loss | (624 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (1038 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (1038 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (1662 |
| Net Decrease in Net Assets Resulting from Operations | $(1583 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Period from<br>September 30, 2021^ to<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $79 | $12 |
| Net Realized Gain (Loss) | (624 | 38 |
| Net Change in Unrealized Appreciation (Depreciation) | (1038 | 680 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (1583 | 730 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (95 | (15 |
| **Class A** | (1 | (— |
| **Class C** | (— | (— |
| **Class R6\*** | (1 | (— |
| Total Dividends and Distributions to Shareholders | (97 | (15 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 18 | 4850 |
| Distributions Reinvested | 95 | 15 |
| Redeemed | (16 |  |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed |  | 50 |
| Distributions Reinvested | 1 |  |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed |  | 50 |
| Distributions Reinvested |  |  |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed |  | 50 |
| Distributions Reinvested | 1 |  |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 99 | 5015 |
| Total Increase (Decrease) in Net Assets | (1581 | 5730 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 5730 |  |
| End of Period | $4149 | $5730 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 2 | 485 |
| Shares Issued on Distributions Reinvested | 11 | 1 |
| Shares Redeemed | (2 |  |
| Net Increase in Class I Shares Outstanding | 11 | 486 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed |  | 5 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class A Shares Outstanding |  | 5 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed |  | 5 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class C Shares Outstanding |  | 5 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed |  | 5 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class R6 Shares Outstanding |  | 5 |

---

^ Commencement of Operations.

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class I** | **Class I** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period from<br>September 30, 2021<sup>(1)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $11.43 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.16 | 0.02 |
| Net Realized and Unrealized Gain (Loss) | (3.30) | 1.44 |
| Total from Investment Operations | (3.14) | 1.46 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.12) | (0.03) |
| Net Realized Gain | (0.07) |  |
| Total Distributions | (0.19) | (0.03) |
| **Net Asset Value, End of Period** | $8.10 | $11.43 |
| **Total Return<sup>(3)</sup>** | (27.56)% | 14.62%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $4025 | $5559 |
| Ratio of Expenses Before Expense Limitation | 7.46% | 8.45%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 0.89%<sup>(4)</sup> | 0.89%<sup>(4)(7)</sup> |
| Ratio of Net Investment Income | 1.68%<sup>(4)</sup> | 0.92%<sup>(4)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)(7)</sup> |
| Portfolio Turnover Rate | 99% | 26%<sup>(6)</sup> |

---

(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.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class A** | **Class A** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended <br>December 31, 2022** | **Period from<br>September 30, 2021<sup>(1)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $11.43 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.12 | 0.02 |
| Net Realized and Unrealized Gain (Loss) | (3.29) | 1.43 |
| Total from Investment Operations | (3.17) | 1.45 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.09) | (0.02) |
| Net Realized Gain | (0.07) |  |
| Total Distributions | (0.16) | (0.02) |
| **Net Asset Value, End of Period** | $8.10 | $11.43 |
| **Total Return<sup>(3)</sup>** | (27.83)% | 14.51%<sup>(6)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $41 | $57 |
| Ratio of Expenses Before Expense Limitation | 11.91% | 11.91%<sup>(7)</sup> |
| Ratio of Expenses After Expense Limitation | 1.25%<sup>(4)</sup> | 1.25%<sup>(4)(7)</sup> |
| Ratio of Net Investment Income | 1.32%<sup>(4)</sup> | 0.56%<sup>(4)(7)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)(7)</sup> |
| Portfolio Turnover Rate | 99% | 26%<sup>(6)</sup> |

---

(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.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class C** | **Class C** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended <br>December 31, 2022** | **Period from<br>September 30, 2021<sup>(1)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $11.43 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(2)</sup> | 0.05 | (0.01) |
| Net Realized and Unrealized Gain (Loss) | (3.29) | 1.44 |
| Total from Investment Operations | (3.24) | 1.43 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.02) | (0.00)<sup>(3)</sup> |
| Net Realized Gain | (0.07) |  |
| Total Distributions | (0.09) | (0.00)<sup>(3)</sup> |
| **Net Asset Value, End of Period** | $8.10 | $11.43 |
| **Total Return<sup>(4)</sup>** | (28.39)% | 14.30%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $41 | $57 |
| Ratio of Expenses Before Expense Limitation | 12.69% | 12.67%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 2.00%<sup>(5)</sup> | 2.00%<sup>(5)(8)</sup> |
| Ratio of Net Investment Income (Loss) | 0.57%<sup>(5)</sup> | (0.19)%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 99% | 26%<sup>(7)</sup> |

---

(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) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Focus Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended <br>December 31, 2022** | **Period from<br>September 30, 2021<sup>(2)</sup> to<br>December 31, 2021** |
| **Net Asset Value, Beginning of Period** | $11.43 | $10.00 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(3)</sup> | 0.16 | 0.03 |
| Net Realized and Unrealized Gain (Loss) | (3.30) | 1.43 |
| Total from Investment Operations | (3.14) | 1.46 |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.12) | (0.03) |
| Net Realized Gain | (0.07) |  |
| Total Distributions | (0.19) | (0.03) |
| **Net Asset Value, End of Period** | $8.10 | $11.43 |
| **Total Return<sup>(4)</sup>** | (27.53)% | 14.63%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $42 | $57 |
| Ratio of Expenses Before Expense Limitation | 11.65% | 11.65%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.85%<sup>(5)</sup> | 0.85%<sup>(5)(8)</sup> |
| Ratio of Net Investment Income | 1.72%<sup>(5)</sup> | 0.95%<sup>(5)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 99% | 26%<sup>(7)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

(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) 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) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the U.S. Focus Real Estate Portfolio. The Fund seeks to provide current income and long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A.** **Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The Fund invests a significant portion of its assets in securities of real estate investment trusts ("REITs"). The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

**2.** **Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Apartments | $387 | $— | $— | $387 |
| Data Centers | 366 |  |  | 366 |
| Free Standing | 265 |  |  | 265 |
| Health Care | 283 |  |  | 283 |
| Industrial | 514 |  |  | 514 |
| lnfrastructure REITs | 633 |  |  | 633 |
| Lodging/Resorts | 92 |  |  | 92 |
| Manufactured Homes | 213 |  |  | 213 |
| Regional Malls | 183 |  |  | 183 |
| Self Storage | 394 |  |  | 394 |
| Shopping Centers | 295 |  |  | 295 |
| Single Family Homes | 131 |  |  | 131 |
| Specialty | 357 |  |  | 357 |
| **Total Common Stocks** | **4113** | **—** | **—** | **4113** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 115 |  |  | 115 |
| Repurchase Agreements |  | 12 |  | 12 |
| **Total Short-Term <br>Investments** | **115** | **12** | **—** | **127** |
| **Total Assets** | $**4228** | $**12** | $**—** | $**4240** |

---

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**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. 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset<br>Amounts<br>Presented in<br>the Statement<br>of Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| $71<br> (a) | $— | $(71)(b)(c) | $0 |

---

(a) Represents market value of loaned securities at year end.

(b) The Fund received cash collateral of approximately $74,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments.

(c) 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 &<br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stock | $74 | $— | $— | $— | $74 |
| **Total Borrowings** | $**74** | $**—** | $**—** | $**—** | $**74** |
| **Gross amount of<br>recognized liabilities<br>for securities lending<br>transactions** |  |  |  |  | $**74** |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

**5.** **Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 quarterly. Net realized capital gains, if any, are distributed at least annually.

**7. Security Transactions, Income and Expenses:** Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 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

quarterly, at the annual rate based on the daily net assets as follows:

---

| | |
|:---|:---|
| **First $1<br>billion** | **Over $1<br>billion** |
| 0.70% | 0.65% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 0.90% for Class I shares, 1.25% for Class A shares, 2.00% for Class C shares and 0.85% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $33,000 of advisory fees were waived and approximately $286,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C.** **Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

The Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E.** **Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F.** **Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G.** **Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $4,855,000 and $4,733,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held

as collateral on loaned securities. Advisory fees paid by the 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 year ended December 31, 2022, advisory fees paid were reduced by less 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $28 | $1253 | $1166 | $1 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $115 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the 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 two-year period ended December 31, 2022 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 2022 and 2021 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2022 <br>Distributions<br>Paid From:** | **2022 <br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** | **2021<br>Distributions<br>Paid From:** |
| **Ordinary <br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** | **Ordinary<br>Income<br>(000)** | **Long-Term<br>Capital Gain<br>(000)** |
| $94 | $3 | $15 | $— |

---

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 December 31, 2022:

---

| | |
|:---|:---|
| **Total <br>Accumulated<br>Loss<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $@ | $(@) |

---

@ Amount is less than $500.

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $21 | $— |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of $456,000 and $153,000, 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J.** **Other:** At December 31, 2022, the Fund did not have record owners of 10% or greater.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>U.S. Focus Real Estate Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of U.S. Focus Real Estate Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, and the statements of changes in net assets and the financial highlights for the year then ended and for the period from September 30, 2021 (commencement of operations) through December 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, and the changes in its net assets and its financial highlights for the year then ended and for the period from September 30, 2021 (commencement of operations) through December 31, 2021, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279232_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 0.97% of the dividends qualified for the dividends received deduction.

The Fund designated and paid approximately $3,000 as a long-term capital gain distribution.

The Fund designated approximately $74,000 of its distributions paid as qualified business income.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $2,000 as taxable at this lower rate.

In January, the Fund provides tax information to shareholders for the preceding calendar year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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| | |
|:---|:---|
| **Who is providing this notice?** | Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (*see* Investment Management Affiliates definition below) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**<br> Dechert LLP<br>1095 Avenue of the Americas

New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279232_za006.jpg)

IFIUSFREANN<br>5452878 EXP 02.29.24

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![](j23279233_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

U.S. Real Estate Portfolio

Annual Report

December 31, 2022

![](j23279233_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 7 |
| Statement of Assets and Liabilities | 9 |
| Statement of Operations | 11 |
| Statements of Changes in Net Assets | 12 |
| Financial Highlights | 14 |
| Notes to Financial Statements | 20 |
| Report of Independent Registered Public Accounting Firm | 28 |
| Liquidity Risk Management Program | 29 |
| Federal Tax Notice | 30 |
| U.S. Customer Privacy Notice | 31 |
| Director 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 Morgan Stanley Institutional Fund, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

***Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary, through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.***

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in U.S. Real Estate Portfolio (the "Fund") performed during the latest twelve-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

![](j23279233_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**U.S. Real Estate Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| U.S. Real Estate Portfolio Class I | $1000.00 | $933.00 | $1020.67 | $4.39 | $4.58 | 0.90% |
| U.S. Real Estate Portfolio Class A | 1000.00 | 930.20 | 1018.80 | 6.18 | 6.46 | 1.27 |
| U.S. Real Estate Portfolio Class L | 1000.00 | 928.70 | 1016.38 | 8.51 | 8.89 | 1.75 |
| U.S. Real Estate Portfolio Class C | 1000.00 | 926.10 | 1015.12 | 9.71 | 10.16 | 2.00 |
| U.S. Real Estate Portfolio Class R6<sup>(1)</sup> | 1000.00 | 932.60 | 1021.02 | 4.04 | 4.23 | 0.83 |
| U.S. Real Estate Portfolio Class IR | 1000.00 | 933.60 | 1021.02 | 4.04 | 4.23 | 0.83 |

---

\* 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 184/365 (to reflect the most recent one-half year period).

\*\* Annualized

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**U.S. Real Estate Portfolio**

The Fund seeks to provide above average current income and long-term capital appreciation by investing primarily in equity securities of companies in the U.S. real estate industry, including real estate investment trusts ("REITs").

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –26.39%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the FTSE Nareit Equity REITs Index (the "Index"), which returned –24.37%, and underperformed the S&P 500® Index, which returned –18.11%.

**Factors Affecting Performance**

• Amid a down market primarily dominated by inflation and related concerns — recession, rising interest rates — the real estate sector underperformed the broader equity markets. The Federal Reserve (Fed) announced its first interest rate hike of 25 basis points (bps)<sup>(i)</sup> in the first quarter of 2022, followed by more aggressive interest rate hikes in increments of 50 and 75 bps, surprising the market and investors. The aggressive Fed's monetary policy tightening was negative for risk assets, including real estate, and led to negative absolute performance for REITs.

• The Fund's security selection in shopping centers, storage and apartments, and the underweight to office companies were top relative contributors for the year. Key detractors included the underweights to the gaming net lease subsector and hotels subsector, and security selection in data centers and health care.

**Management Strategies**

• The team uses internal proprietary research to invest in public real estate companies that we believe offer the best value relative to their underlying assets and growth prospects. The team combines a bottom-up approach, assessing the intrinsic value, equity multiples and growth prospects of each security, with a top-down view that incorporates fundamental inflection points, macroeconomic considerations, and geopolitical risk. By incorporating both an equity market valuation and a more traditional real estate valuation with a top-down overlay, we believe the

Fund will be better prepared to identify securities with the best expected total returns.

• Forecasted returns for the listed real estate asset class have deteriorated in the intermediate term given the more challenging macro backdrop. However, we believe relative strength in cash flows can be expected given the unique nature of listed real estate. Specifically, the contracted rental streams with inflation-linked escalations and the necessity-based nature of real estate — the listed real estate market evolves and grows with the broader needs of society and the economy and sits at the epicenter of how people live, work, shop and communicate — coupled with limited new real estate supply additions due to rising construction costs, may suggest limited downside in cash flows and support more resiliency in fundamentals, despite near-term macro uncertainty. While our cash flow growth estimates have been reduced for 2023 in light of our expectation for lower gross domestic product growth and a potential recession, we still forecast attractive cash flow growth rates for REITs.

• Real estate values are ultimately a function of supply, demand and credit. With demand moderating due to slowing growth and credit markets tightening with increasing interest rates, we believe real estate values within the public markets have suffered. Despite the inflation protection typically associated with the listed real estate sector, REITs underperformed the broader equities market. At the same time, and as is often the case, values within the private markets are taking longer to adjust. The appraisal-based nature of private real estate typically lags public valuations by approximately 12 months, while the daily pricing and volatility of listed real estate typically results in overcorrections in the public markets, which may create an interesting arbitrage opportunity as there may be some potential contraction in private real estate values and potential appreciation in public real estate. While credit markets remain tight, the trajectory of Fed interest rate hikes is expected to slow, allowing for normalization in lending, spreads and real estate capitalization rates. Ultimately, we believe the growth profile and values of REITs should hold up better than broader equities and private real estate in 2023.

<sup>(i)</sup> One basis point = 0.01%

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**U.S. Real Estate Portfolio**

![](j23279233_ba004.jpg)

\* Minimum Investment for Class I shares

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, L, C, R6 and IR shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the FTSE Nareit Equity REITs Index** **<sup>(1)</sup>** **, the S&P 500<sup>®</sup> Index** **<sup>(2)</sup>** **and the Lipper Real Estate Funds Index** **<sup>(3)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(4)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since<br>Inception<sup>(11)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(5)</sup> | –26.39% | –1.90% | 3.22% | 9.32% |
| Fund — Class A Shares <br>w/o sales charges<sup>(6)</sup> | –26.69 | –2.22 | 2.89 | 8.51 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(6)</sup> | –30.56 | –3.28 | 2.34 | 8.29 |
| Fund — Class L Shares <br>w/o sales charges<sup>(7)</sup> | –27.02 | –2.72 | 2.36 | 3.55 |
| Fund — Class C Shares <br>w/o sales charges<sup>(9)</sup> | –27.30 | –2.99 |  | –0.63 |
| Fund — Class C Shares <br>with maximum 1.00% deferred <br>sales charges<sup>(9)</sup> | –27.97 | –2.99 |  | –0.63 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(8)</sup> | –26.33 | –1.82 |  | 3.31 |
| Fund — Class IR Shares <br>w/o sales charges<sup>(10)</sup> | –26.33 |  |  | –1.39 |
| FTSE Nareit Equity REITs Index | –24.37 | 3.68 | 6.53 | 9.48 |
| S&P 500<sup>®</sup> Index | –18.11 | 9.42 | 12.56 | 9.74 |
| Lipper Real Estate Funds Index | –25.93 | 3.55 | 6.18 | N/A |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The FTSE Nareit (National Association of Real Estate Investment Trusts) Equity REITs Index is free float-adjusted market capitalization weighted index of tax-qualified REITs listed on the New York Stock Exchange, NYSE Amex and the NASDAQ National Market Systems. Effective December 20, 2010, the FTSE Nareit Equity REITs Index will not include "Timber REITs" The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index. Effective after the close of business on April 29, 2022, the Fund selected the FTSE Nareit Equity REITs Index as its broad-based index as a replacement for the Standard & Poor's 500<sup>®</sup> Index (S&P 500<sup>®</sup> Index) because it believes the FTSE Nareit Equity REITs Index is more reflective of the Fund's principal investment strategies.

<sup>(2)</sup> The S&P 500<sup>®</sup> Index measures the performance of the large cap segment of the U.S. equities market, covering approximately 80% of the U.S. equities market. The Index includes 500 leading companies in leading industries of the U.S. economy. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**U.S. Real Estate Portfolio**

<sup>(3)</sup> The Lipper Real Estate Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Real Estate Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Real Estate Funds classification.

<sup>(4)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(5)</sup> Commenced operations on February 24, 1995.

<sup>(6)</sup> Commenced offering on January 2, 1996.

<sup>(7)</sup> Commenced offering on November 11, 2011.

<sup>(8)</sup> Commenced offering on September 13, 2013. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(9)</sup> Commenced offering on April 30, 2015.

<sup>(10)</sup> Commenced offering on June 15, 2018.

<sup>(11)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Fund, not the inception of the Index.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**U.S. Real Estate Portfolio**

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (98.3%)** | **Common Stocks (98.3%)** | **Common Stocks (98.3%)** |
| Apartments (11.9%) | Apartments (11.9%) | Apartments (11.9%) |
| Equity Residential REIT | 21873 | $1290 |
| Mid-America Apartment Communities, Inc. REIT | 9594 | 1506 |
| UDR, Inc. REIT | 24267 | 940 |
|  |  | 3736 |
| Data Centers (11.1%) | Data Centers (11.1%) | Data Centers (11.1%) |
| Digital Realty Trust, Inc. REIT | 12586 | 1262 |
| Equinix, Inc. REIT | 3418 | 2239 |
|  |  | 3501 |
| Free Standing (7.0%) | Free Standing (7.0%) | Free Standing (7.0%) |
| Agree Realty Corp. REIT | 11503 | 816 |
| NETSTREIT Corp. REIT (a) | 20140 | 369 |
| Realty Income Corp. REIT | 16156 | 1025 |
|  |  | 2210 |
| Health Care (9.9%) | Health Care (9.9%) | Health Care (9.9%) |
| Healthpeak Properties, Inc. REIT | 23639 | 593 |
| Ventas, Inc. REIT | 17867 | 805 |
| Welltower, Inc. REIT | 26059 | 1708 |
|  |  | 3106 |
| Industrial (13.9%) | Industrial (13.9%) | Industrial (13.9%) |
| Americold Realty Trust, Inc. REIT | 22440 | 635 |
| ProLogis, Inc. REIT | 33094 | 3731 |
|  |  | 4366 |
| Lodging/Resorts (2.4%) | Lodging/Resorts (2.4%) | Lodging/Resorts (2.4%) |
| Boyd Gaming Corp. | 4219 | 230 |
| Host Hotels & Resorts, Inc. REIT | 33189 | 533 |
|  |  | 763 |
| Manufactured Homes (3.5%) | Manufactured Homes (3.5%) | Manufactured Homes (3.5%) |
| Sun Communities, Inc. REIT | 7720 | 1104 |
| Office (0.7%) | Office (0.7%) | Office (0.7%) |
| Kilroy Realty Corp. REIT | 5612 | 217 |
| Regional Malls (4.8%) | Regional Malls (4.8%) | Regional Malls (4.8%) |
| Simon Property Group, Inc. REIT | 12733 | 1496 |
| Self Storage (11.3%) | Self Storage (11.3%) | Self Storage (11.3%) |
| Extra Space Storage, Inc. REIT | 1599 | 235 |
| Life Storage, Inc. REIT | 8592 | 846 |
| Public Storage REIT | 8846 | 2479 |
|  |  | 3560 |
| Shopping Centers (7.8%) | Shopping Centers (7.8%) | Shopping Centers (7.8%) |
| Brixmor Property Group, Inc. REIT | 35799 | 811 |
| Kite Realty Group Trust REIT | 40717 | 857 |
| RPT Realty REIT | 32957 | 331 |
| SITE Centers Corp. REIT | 32732 | 447 |
|  |  | 2446 |
| Single Family Homes (4.7%) | Single Family Homes (4.7%) | Single Family Homes (4.7%) |
| American Homes 4 Rent, Class A REIT | 25586 | 771 |
| Invitation Homes, Inc. REIT | 23433 | 695 |
|  |  | 1466 |

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| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Specialty (9.3%) | Specialty (9.3%) | Specialty (9.3%) |
| Iron Mountain, Inc. REIT | 20712 | $1033 |
| Lamar Advertising Co., Class A REIT | 1858 | 175 |
| VICI Properties, Inc. REIT | 53280 | 1726 |
|  |  | 2934 |
| **Total Common Stocks (Cost $32,307)** | **Total Common Stocks (Cost $32,307)** | 30905 |
| **Short-Term Investments (3.9%)** | **Short-Term Investments (3.9%)** | **Short-Term Investments (3.9%)** |
| Securities held as Collateral on Loaned Securities (1.2%) | Securities held as Collateral on Loaned Securities (1.2%) | Securities held as Collateral on Loaned Securities (1.2%) |
| Investment Company (1.0%) | Investment Company (1.0%) | Investment Company (1.0%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 322765 | 323 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.2%) | Repurchase Agreements (0.2%) | Repurchase Agreements (0.2%) |
| HSBC Securities USA, Inc. (4.27%, <br>dated 12/30/22, due 1/3/23; proceeds <br>$30; fully collateralized by a U.S. <br>Government obligation; 4.38% <br>due 5/15/41; valued at $31) | $30 | 30 |
| Merrill Lynch & Co., Inc. (4.25%, <br>dated 12/30/22, due 1/3/23; proceeds <br>$30; fully collateralized by a U.S. <br>Government obligation; 1.50% <br>due 2/15/25; valued at $31) | 30 | 30 |
|  |  | 60 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $383)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $383)** | 383 |
|  | **Shares** |  |
| Investment Company (2.7%) | Investment Company (2.7%) | Investment Company (2.7%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Portfolio — <br>Institutional Class (See Note G) <br>**(Cost $843)** | 843177 | 843 |
| **Total Short-Term Investments (Cost $1,226)** | **Total Short-Term Investments (Cost $1,226)** | 1226 |
| **Total Investments (102.2%) (Cost $33,533) <br>Including $369 of Securities Loaned (b)** | **Total Investments (102.2%) (Cost $33,533) <br>Including $369 of Securities Loaned (b)** | 32131 |
| Liabilities in Excess of Other Assets (–2.2%) | Liabilities in Excess of Other Assets (–2.2%) | (686) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $31445 |

---

(a) All or a portion of this security was on loan at December 31, 2022.

(b) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $34,805,000. The aggregate gross unrealized appreciation is approximately $747,000 and the aggregate gross unrealized depreciation is approximately $3,423,000, resulting in net unrealized depreciation of approximately $2,676,000.

REIT Real Estate Investment Trust.

The accompanying notes are an integral part of the financial statements.<br>7

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**U.S. Real Estate Portfolio**

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Others\*\* | 18.5% |
| Industrial | 13.8 |
| Apartments | 11.8 |
| Self Storage | 11.2 |
| Data Centers | 11.0 |
| Health Care | 9.8 |
| Specialty | 9.2 |
| Shopping Centers | 7.7 |
| Free Standing | 7.0 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

\*\* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.<br>8

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $32,367) | $30965 |
| Investment in Security of Affiliated Issuer, at Value (Cost $1,166) | 1166 |
| Total Investments in Securities, at Value (Cost $33,533) | 32131 |
| Foreign Currency, at Value (Cost $3) | 3 |
| Dividends Receivable | 112 |
| Due from Adviser | 42 |
| Receivable for Fund Shares Sold | 4 |
| Receivable from Affiliate | 1 |
| Other Assets | 56 |
| **Total Assets** | 32349 |
| **Liabilities:** | **Liabilities:** |
| Payable for Investments Purchased | 417 |
| Collateral on Securities Loaned, at Value | 383 |
| Payable for Professional Fees | 38 |
| Payable for Fund Shares Redeemed | 15 |
| Payable for Sub Transfer Agency Fees — Class I | 9 |
| 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 |  |
| Payable for Transfer Agency Fees — Class I | 2 |
| Payable for Transfer Agency Fees — Class A | 1 |
| Payable for Transfer Agency Fees — Class L | 1 |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* | 1 |
| Payable for Transfer Agency Fees — Class IR |  |
| Payable for Custodian Fees | 5 |
| 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 |  |
| Payable for Administration Fees | 2 |
| Other Liabilities | 24 |
| **Total Liabilities** | 904 |
| **Net Assets** | $31445 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $35393 |
| Total Accumulated Loss | (3948 |
| **Net Assets** | $31445 |

---

The accompanying notes are an integral part of the financial statements.<br>9

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (cont'd) | **December 31, 2022<br>(000)** |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $21174 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 2657449 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.97 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $8403 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 1113784 |
| **Net Asset Value, Redemption Price Per Share** | $7.54 |
| **Maximum Sales Load** | 5.25% |
| **Maximum Sales Charge** | $0.42 |
| **Maximum Offering Price Per Share** | $7.96 |
| **CLASS L:** | **CLASS L:** |
| **Net Assets** | $1553 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 206283 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.53 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $170 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 22757 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.47 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $138 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 17328 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.97 |
| **CLASS IR:** | **CLASS IR:** |
| **Net Assets** | $7 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 917 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $7.97 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $369 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Real Estate Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers | $1708 |
| Dividends from Security of Affiliated Issuer (Note G) | 6 |
| Income from Securities Loaned — Net |  |
| Total Investment Income | 1714 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 275 |
| Professional Fees | 126 |
| Registration Fees | 82 |
| Shareholder Services Fees — Class A (Note D) | 26 |
| Distribution and Shareholder Services Fees — Class L (Note D) | 13 |
| Distribution and Shareholder Services Fees — Class C (Note D) | 3 |
| Sub Transfer Agency Fees — Class I | 28 |
| Sub Transfer Agency Fees — Class A | 10 |
| Sub Transfer Agency Fees — Class L | 1 |
| Sub Transfer Agency Fees — Class C |  |
| Transfer Agency Fees — Class I (Note E) | 13 |
| Transfer Agency Fees — Class A (Note E) | 8 |
| Transfer Agency Fees — Class L (Note E) | 3 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 5 |
| Transfer Agency Fees — Class IR (Note E) | 2 |
| Administration Fees (Note C) | 31 |
| Shareholder Reporting Fees | 21 |
| Custodian Fees (Note F) | 10 |
| Directors' Fees and Expenses | 5 |
| Pricing Fees | 3 |
| Other Expenses | 17 |
| Total Expenses | 684 |
| Waiver of Advisory Fees (Note B) | (242 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (23 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (— |
| Reimbursement of Class Specific Expenses — Class L (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (5 |
| Reimbursement of Class Specific Expenses — Class IR (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (1 |
| Net Expenses | 407 |
| **Net Investment Income** | 1307 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (2466 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (12229 |
| Foreign Currency Translation | (— |
| Net Change in Unrealized Appreciation (Depreciation) | (12229 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (14695 |
| Net Decrease in Net Assets Resulting from Operations | $(13388 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $1307 | $189 |
| Net Realized Gain (Loss) | (2466) | 15451 |
| Net Change in Unrealized Appreciation (Depreciation) | (12229) | (267 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (13388) | 15373 |
| **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** | **Dividends and Distributions to Shareholders:** |
| **Class I** | (2080) | (813 |
| **Class A** | (842) | (295 |
| **Class L** | (146) | (35 |
| **Class C** | (15) | (6 |
| **Class R6\*** | (13) | (5 |
| **Class IR** | (1) |  |
| Total Dividends and Distributions to Shareholders | (3097) | (1154 |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 11273 | 3876 |
| Distributions Reinvested | 2055 | 800 |
| Redeemed | (12670) | (16439 |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 663 | 1672 |
| Distributions Reinvested | 822 | 290 |
| Redeemed | (1994) | (3443 |
| **Class L:** | **Class L:** | **Class L:** |
| Exchanged | 120 | 43 |
| Distributions Reinvested | 144 | 35 |
| Redeemed | (104) | (111 |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed | 76 | 248 |
| Distributions Reinvested | 15 | 6 |
| Redeemed | (180) | (195 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed | 30 | 40 |
| Distributions Reinvested | 13 | 5 |
| Redeemed | (41) | (10 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Distributions Reinvested | 1 |  |
| Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | 223 | $(13183 |
| Total Increase (Decrease) in Net Assets | (16262) | 1036 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 47707 | 46671 |
| End of Period | $31445 | $47707 |

---

The accompanying notes are an integral part of the financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**U.S. Real Estate Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets (cont'd) | **Year Ended<br>December 31, 2022<br>(000)** | **Year Ended<br>December 31, 2021<br>(000)** |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 994 | 373 |
| Shares Issued on Distributions Reinvested | 244 | 73 |
| Shares Redeemed | (1259 | (1601 |
| Net Decrease in Class I Shares Outstanding | (21 | (1155 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 69 | 171 |
| Shares Issued on Distributions Reinvested | 103 | 28 |
| Shares Redeemed | (216 | (360 |
| Net Decrease in Class A Shares Outstanding | (44 | (161 |
| **Class L:** | **Class L:** | **Class L:** |
| Shares Exchanged | 14 | 4 |
| Shares Issued on Distributions Reinvested | 18 | 3 |
| Shares Redeemed | (12 | (11 |
| Net Increase (Decrease) in Class L Shares Outstanding | 20 | (4 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed | 8 | 26 |
| Shares Issued on Distributions Reinvested | 2 | 1 |
| Shares Redeemed | (19 | (19 |
| Net Increase (Decrease) in Class C Shares Outstanding | (9 | 8 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed | 3 | 4 |
| Shares Issued on Distributions Reinvested | 2 |  |
| Shares Redeemed | (4 | (1 |
| Net Increase in Class R6 Shares Outstanding | 1 | 3 |
| **Class IR:** | **Class IR:** | **Class IR:** |
| Shares Issued on Distributions Reinvested |  |  |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $11.91 | $8.79 | $11.08 | $10.82 | $15.24 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.35 | 0.05 | 0.13 | 0.26 | 0.34 |
| Net Realized and Unrealized Gain (Loss) | (3.46) | 3.35 | (2.18) | 1.69 | (1.33) |
| Total from Investment Operations | (3.11) | 3.40 | (2.05) | 1.95 | (0.99) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.13) | (0.12) | (0.20) | (0.40) | (0.34) |
| Net Realized Gain | (0.70) | (0.16) |  | (1.29) | (3.09) |
| Paid-in-Capital |  |  | (0.04) |  |  |
| Total Distributions | (0.83) | (0.28) | (0.24) | (1.69) | (3.43) |
| **Net Asset Value, End of Period** | $7.97 | $11.91 | $8.79 | $11.08 | $10.82 |
| **Total Return<sup>(2)</sup>** | (26.39)% | 38.96% | (18.05)% | 18.40% | (8.44)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $21174 | $31909 | $33708 | $134856 | $177690 |
| Ratio of Expenses Before Expense Limitation | 1.60% | 1.42% | 1.19% | 1.02% | 1.02% |
| Ratio of Expenses After Expense Limitation | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | 0.95%<sup>(3)(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | 0.90%<sup>(3)</sup> | N/A | 0.95%<sup>(3)</sup> |
| Ratio of Net Investment Income | 3.45%<sup>(3)</sup> | 0.50%<sup>(3)</sup> | 1.52%<sup>(3)</sup> | 2.18%<sup>(3)</sup> | 2.44%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 82% | 132% | 39% | 21% | 39% |

---

(1) Per share amount is based on average shares outstanding.

(2) Calculated based on the net asset value as of the last business day of the period.

(3) 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."

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.90% for Class I shares. Prior to July 1, 2018, the maximum ratio was 1.00% for Class I shares.

(5) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $11.33 | $8.38 | $10.56 | $10.38 | $14.76 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(1)</sup> | 0.30 | 0.03 | 0.09 | 0.22 | 0.29 |
| Net Realized and Unrealized Gain (Loss) | (3.29) | 3.18 | (2.06) | 1.61 | (1.28) |
| Total from Investment Operations | (2.99) | 3.21 | (1.97) | 1.83 | (0.99) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.10) | (0.10) | (0.17) | (0.36) | (0.30) |
| Net Realized Gain | (0.70) | (0.16) |  | (1.29) | (3.09) |
| Paid-in-Capital |  |  | (0.04) |  |  |
| Total Distributions | (0.80) | (0.26) | (0.21) | (1.65) | (3.39) |
| **Net Asset Value, End of Period** | $7.54 | $11.33 | $8.38 | $10.56 | $10.38 |
| **Total Return<sup>(2)</sup>** | (26.69)% | 38.46% | (18.28)% | 18.02% | (8.71)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $8403 | $13121 | $11043 | $32596 | $34459 |
| Ratio of Expenses Before Expense Limitation | 1.87% | 1.66% | 1.52% | 1.31% | 1.30% |
| Ratio of Expenses After Expense Limitation | 1.25%<sup>(3)</sup> | 1.18%<sup>(3)</sup> | 1.25%<sup>(3)</sup> | 1.22%<sup>(3)</sup> | 1.26%<sup>(3)(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.25%<sup>(3)</sup> | 1.18%<sup>(3)</sup> | 1.25%<sup>(3)</sup> | N/A | 1.26%<sup>(3)</sup> |
| Ratio of Net Investment Income | 3.13%<sup>(3)</sup> | 0.26%<sup>(3)</sup> | 1.09%<sup>(3)</sup> | 1.91%<sup>(3)</sup> | 2.14%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 82% | 132% | 39% | 21% | 39% |

---

(1) Per share amount is based on average shares outstanding.

(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(3) 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."

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class A shares. Prior to July 1, 2018, the maximum ratio was 1.35% for Class A shares.

(5) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>15

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class L** | **Class L** | **Class L** | **Class L** | **Class L** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $11.31 | $8.36 | $10.55 | $10.37 | $14.74 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.26 | (0.03) | 0.09 | 0.16 | 0.23 |
| Net Realized and Unrealized Gain (Loss) | (3.29) | 3.18 | (2.11) | 1.61 | (1.28) |
| Total from Investment Operations | (3.03) | 3.15 | (2.02) | 1.77 | (1.05) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.05) | (0.04) | (0.13) | (0.30) | (0.23) |
| Net Realized Gain | (0.70) | (0.16) |  | (1.29) | (3.09) |
| Paid-in-Capital |  |  | (0.04) |  |  |
| Total Distributions | (0.75) | (0.20) | (0.17) | (1.59) | (3.32) |
| **Net Asset Value, End of Period** | $7.53 | $11.31 | $8.36 | $10.55 | $10.37 |
| **Total Return<sup>(2)</sup>** | (27.02)% | 37.78% | (18.77)% | 17.43% | (9.16)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1553 | $2101 | $1586 | $2164 | $2057 |
| Ratio of Expenses Before Expense Limitation | 2.46% | 2.31% | 2.11% | 1.88% | 1.84% |
| Ratio of Expenses After Expense Limitation | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | 1.79%<sup>(3)(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | 1.75%<sup>(3)</sup> | N/A | 1.79%<sup>(3)</sup> |
| Ratio of Net Investment Income (Loss) | 2.76%<sup>(3)</sup> | (0.30)%<sup>(3)</sup> | 1.41%<sup>(3)</sup> | 1.42%<sup>(3)</sup> | 1.71%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 82% | 132% | 39% | 21% | 39% |

---

(1) Per share amount is based on average shares outstanding.

(2) Calculated based on the net asset value as of the last business day of the period.

(3) 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."

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class L shares. Prior to July 1, 2018, the maximum ratio was 1.85% for Class L shares.

(5) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>16

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $11.24 | $8.31 | $10.48 | $10.31 | $14.68 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income (Loss)<sup>(1)</sup> | 0.21 | (0.05) | 0.09 | 0.14 | 0.19 |
| Net Realized and Unrealized Gain (Loss) | (3.25) | 3.16 | (2.10) | 1.59 | (1.29) |
| Total from Investment Operations | (3.04) | 3.11 | (2.01) | 1.73 | (1.10) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.03) | (0.02) | (0.12) | (0.27) | (0.18) |
| Net Realized Gain | (0.70) | (0.16) |  | (1.29) | (3.09) |
| Paid-in-Capital |  |  | (0.04) |  |  |
| Total Distributions | (0.73) | (0.18) | (0.16) | (1.56) | (3.27) |
| **Net Asset Value, End of Period** | $7.47 | $11.24 | $8.31 | $10.48 | $10.31 |
| **Total Return<sup>(2)</sup>** | (27.30)% | 37.50% | (18.91)% | 17.07% | (9.47)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $170 | $365 | $206 | $232 | $338 |
| Ratio of Expenses Before Expense Limitation | 3.54% | 3.28% | 3.39% | 2.92% | 2.75% |
| Ratio of Expenses After Expense Limitation | 2.00%<sup>(3)</sup> | 2.00%<sup>(3)</sup> | 2.00%<sup>(3)</sup> | 2.00%<sup>(3)</sup> | 2.05%<sup>(3)(4)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 2.00%<sup>(3)</sup> | 2.00%<sup>(3)</sup> | 2.00%<sup>(3)</sup> | N/A | 2.05%<sup>(3)</sup> |
| Ratio of Net Investment Income (Loss) | 2.18%<sup>(3)</sup> | (0.54)%<sup>(3)</sup> | 1.20%<sup>(3)</sup> | 1.18%<sup>(3)</sup> | 1.39%<sup>(3)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> | 0.00%<sup>(5)</sup> |
| Portfolio Turnover Rate | 82% | 132% | 39% | 21% | 39% |

---

(1) Per share amount is based on average shares outstanding.

(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(3) 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."

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.00% for Class C shares. Prior to July 1, 2018, the maximum ratio was 2.10% for Class C shares.

(5) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>17

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Real Estate Portfolio**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Net Asset Value, Beginning of Period** | $11.91 | $8.79 | $11.08 | $10.82 | $15.24 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.36 | 0.07 | 0.09 | 0.25 | 0.28 |
| Net Realized and Unrealized Gain (Loss) | (3.46) | 3.34 | (2.13) | 1.71 | (1.26) |
| Total from Investment Operations | (3.10) | 3.41 | (2.04) | 1.96 | (0.98) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.14) | (0.13) | (0.21) | (0.41) | (0.35) |
| Net Realized Gain | (0.70) | (0.16) |  | (1.29) | (3.09) |
| Paid-in-Capital |  |  | (0.04) |  |  |
| Total Distributions | (0.84) | (0.29) | (0.25) | (1.70) | (3.44) |
| **Net Asset Value, End of Period** | $7.97 | $11.91 | $8.79 | $11.08 | $10.82 |
| **Total Return<sup>(3)</sup>** | (26.33)% | 39.06% | (17.98)% | 18.48% | (8.36)% |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $138 | $201 | $121 | $12307 | $29523 |
| Ratio of Expenses Before Expense Limitation | 4.36% | 4.18% | 1.20% | 1.04% | 0.97% |
| Ratio of Expenses After Expense Limitation | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | 0.91%<sup>(4)(5)</sup> |
| Ratio of Expenses After Expense Limitation Excluding Interest Expenses | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | N/A | 0.91%<sup>(4)</sup> |
| Ratio of Net Investment Income | 3.64%<sup>(4)</sup> | 0.64%<sup>(4)</sup> | 1.00%<sup>(4)</sup> | 2.09%<sup>(4)</sup> | 1.98%<sup>(4)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |
| Portfolio Turnover Rate | 82% | 132% | 39% | 21% | 39% |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(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 July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.83% for Class IS shares. Prior to July 1, 2018, the maximum ratio was 0.93% for Class IS shares.

(6) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.<br>18

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**U.S. Real Estate Portfolio**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** | **Class IR** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | |
|<br>**Selected Per Share Data and Ratios** | **2022** | **2021** | **2020** | **2020** | **2019** | **Period from<br>June 15, 2018<sup>(1)</sup> to**<br>**December 31, 2018** |
| **Net Asset Value, Beginning of Period** | $11.91 | $8.79 | $ | 11.08 | $10.82 | $14.74 |
| **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** | **Income (Loss) from Investment Operations:** |
| Net Investment Income<sup>(2)</sup> | 0.37 | 0.05 |  | 0.20 | 0.33 | 0.43 |
| Net Realized and Unrealized Gain (Loss) | (3.47) | 3.36 |  | (2.24) | 1.63 | (0.98) |
| Total from Investment Operations | (3.10) | 3.41 |  | (2.04) | 1.96 | (0.55) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Net Investment Income | (0.14) | (0.13) |  | (0.21) | (0.41) | (0.28) |
| Net Realized Gain | (0.70) | (0.16) |  |  | (1.29) | (3.09) |
| Paid-in-Capital |  |  |  | (0.04) |  |  |
| Total Distributions | (0.84) | (0.29) |  | (0.25) | (1.70) | (3.37) |
| **Net Asset Value, End of Period** | $7.97 | $11.91 | $ | 8.79 | $11.08 | $10.82 |
| **Total Return<sup>(3)</sup>** | (26.33)% | 39.06% |  | (17.98)% | 18.48% | (5.73)%<sup>(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period, (Thousands) | $7 | $10 | $| 7 | $9 | $7 |
| Ratio of Expenses Before Expense Limitation | 24.77% | 26.04% |  | 30.10% | 23.80% | 19.12%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> |  | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> | 0.84%<sup>(4)(5)(8)</sup> |
| Ratios of Expenses After Expense Limitation Excluding Interest Expenses | 0.83%<sup>(4)</sup> | 0.83%<sup>(4)</sup> |  | 0.83%<sup>(4)</sup> | N/A | 0.84%<sup>(4)(8)</sup> |
| Ratio of Net Investment Income | 3.71%<sup>(4)</sup> | 0.46%<sup>(4)</sup> |  | 2.40%<sup>(4)</sup> | 2.70%<sup>(4)</sup> | 4.23%<sup>(4)(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)</sup> |  | N/A% | 0.00%<sup>(6)</sup> | 0.00%<sup>(6)(8)</sup> |
| Portfolio Turnover Rate | 82% | 132% |  | 39% | 21% | 39% |

---

(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) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.83% for Class IR shares. Prior to July 1, 2018, the maximum ratio was 0.93% for Class IR shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.<br>19

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the U.S. Real Estate Portfolio. The Fund seeks to provide above average current income and long-term capital appreciation by investing primarily in equity securities of companies in the U.S. real estate industry, including real estate investment trusts ("REITs"). The Fund has a capital subscription commitment to an investee company for this same purpose, the details of which are disclosed in the Unfunded Commitments note.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The Fund invests a significant portion of its assets in securities of REITs. The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Apartments | $3736 | $— | $— | $3736 |
| Data Centers | 3501 |  |  | 3501 |
| Free Standing | 2210 |  |  | 2210 |
| Health Care | 3106 |  |  | 3106 |
| Industrial | 4366 |  |  | 4366 |
| Lodging/Resorts | 763 |  |  | 763 |
| Manufactured Homes | 1104 |  |  | 1104 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** | **Common Stocks (cont'd)** |
| Office | $217 | $— | $— | $217 |
| Regional Malls | 1496 |  |  | 1496 |
| Self Storage | 3560 |  |  | 3560 |
| Shopping Centers | 2446 |  |  | 2446 |
| Single Family Homes | 1466 |  |  | 1466 |
| Specialty | 2934 |  |  | 2934 |
| **Total Common Stocks** | **30905** | **—** | **—** | **30905** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 1166 |  |  | 1166 |
| Repurchase Agreements |  | 60 |  | 60 |
| **Total Short-Term <br>Investments** | **1166** | **60** | **—** | **1226** |
| **Total Assets** | $**32071** | $**60** | $**—** | $**32131** |

---

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<br>Stock<br>(000)** |
| **Beginning Balance** | $523 |
| Purchases |  |
| Sales | (— |
| Amortization of discount |  |
| Transfers in |  |
| Transfers out |  |
| Corporate actions |  |
| Distributions | (523 |
| Change in unrealized appreciation (depreciation) |  |
| Realized gains (losses) |  |
| **Ending Balance** | $— |
| Net change in unrealized appreciation (depreciation) from<br>investments still held as of December 31, 2022 | $— |

---

† Includes a security valued at zero.

**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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 U.S. 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. 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset<br>Amounts<br>Presented in<br>the Statement<br>of Assets and <br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less <br>than $0)<br>(000)** |
| $369<br> (a) | $— | $(369)(b)(c) | $0 |

---

(a) Represents market value of loaned securities at year end.

(b) The Fund received cash collateral of approximately $383,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments.

(c) 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 borrowings.

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

contractual maturity of those transactions as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 & <br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stock | $383 | $— | $— | $— | $383 |
| **Total Borrowings** | $**383** | $**—** | $**—** | $**—** | $**383** |
| **Gross amount of<br>recognized liabilities<br>for securities lending<br>transactions** |  |  |  |  | $**383** |

---

**6. Unfunded Commitments:** Subject to the terms of a Subscription Agreement between the Fund and Exeter Industrial Value Fund LP, the Fund has made a subscription commitment of $8,500,000 for which it will receive 8,500,000 shares of common stock. On December 29, 2022, the Fund was notified of a liquidating cash distribution based on cash proceeds from a property sale and operations through December 31, 2022. After the completion of the distribution, the remaining unfunded commitment eligible to be called was $0.

**7. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 quarterly. Net realized capital gains, if any, are distributed at least annually.

**9. Security Transactions, Income and Expenses:** Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is

in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 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 quarterly, at the annual rate based on the daily net assets as follows:

---

| | | |
|:---|:---|:---|
| **First $500<br>million** | **Next $500<br>million** | **Over $1<br>billion** |
| 0.70% | 0.65% | 0.60% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.08% 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 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares, 0.83% for Class R6 shares and 0.83% for Class IR 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended December 31, 2022, approximately $242,000 of advisory fees were waived and approximately $34,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company and provides administrative services pursuant to an Administration Agreement for an

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A, Class L and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency

Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $32,069,000 and $33,540,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the 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 year ended December 31, 2022, 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company** | **Value <br>December 31, <br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds <br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $261 | $16263 | $15358 | $6 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment <br>Company (cont'd)** | **Realized <br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31, <br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $1166 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 December 31, 2022 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 2022 and 2021 was as follows:

---

| | |
|:---|:---|
| **2022 Distributions<br>Paid From:<br>Ordinary Income<br>(000)** | **2021 Distributions<br>Paid From:<br>Ordinary Income<br>(000)** |
| $3097 | $1154 |

---

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 December 31, 2022.

At December 31, 2022, the components of distributable earnings for the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| **Undistributed<br>Ordinary<br>Income<br>(000)** | **Undistributed<br>Long-Term<br>Capital Gain<br>(000)** |
| $812 | $— |

---

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $2,072,000 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, 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 52.4%.

**K. Market Risk:** Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>U.S. Real Estate Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of U.S. Real Estate Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279233_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022.

The Fund designated approximately $758,000 of its distributions paid as qualified business income.

In January, the Fund provides tax information to shareholders for the preceding calendar year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**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) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

---

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship; Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

---

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds <br>in Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

---

\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

---

| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

---

The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279233_za006.jpg)

IFIUSREAANN<br>5452874 EXP 02.29.24

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![](j23279234_aa001.jpg)

Morgan Stanley Institutional Fund, Inc.

Vitality Portfolio

Annual Report

December 31, 2022

![](j23279234_aa002.jpg)

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Table of Contents** (unaudited)

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| | |
|:---|:---|
| Shareholders' Letter | 2 |
| Expense Example | 3 |
| Investment Overview | 4 |
| Portfolio of Investments | 6 |
| 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 |
| Report of Independent Registered Public Accounting Firm | 21 |
| Liquidity Risk Management Program | 22 |
| Federal Tax Notice | 23 |
| U.S. Customer Privacy Notice | 24 |
| Director and Officer Information | 27 |

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***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, Inc. 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) 869-6397. Please read the prospectuses carefully before you invest or send money.***

***Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary, through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.***

***Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future. 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.***

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual Report, in which you will learn how your investment in Vitality Portfolio (the "Fund") performed during the latest twelve-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

![](j23279234_ba003.jpg)

John H. Gernon<br>President and Principal Executive Officer

January 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Expense Example (unaudited)

**Vitality Portfolio**

As a shareholder of the Fund, you 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 December 31, 2022 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). 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>7/1/22** | **Actual Ending<br>Account<br>Value<br>12/31/22** | **Hypothetical<br>Ending Account<br>Value** | **Actual<br>Expenses<br>Paid<br>During<br>Period\*** | **Hypothetical<br>Expenses Paid<br>During Period\*** | **Net<br>Expense<br>Ratio<br>During<br>Period\*\*** |
| Vitality Portfolio Class I | $1000.00 | $997.70 | $1020.47 | $4.73 | $4.79 | 0.94% |
| Vitality Portfolio Class A | 1000.00 | 995.70 | 1018.70 | 6.49 | 6.56 | 1.29 |
| Vitality Portfolio Class C | 1000.00 | 992.50 | 1014.92 | 10.25 | 10.36 | 2.04 |
| Vitality Portfolio Class R6<sup>(1)</sup> | 1000.00 | 998.20 | 1020.72 | 4.48 | 4.53 | 0.89 |

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\* 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 184/365 (to reflect the actual days accrued in the period).

\*\* Annualized.

<sup>(1)</sup> Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited)

**Vitality Portfolio**

Seeks long-term capital appreciation.

**Performance**

For the fiscal year ended December 31, 2022, the Fund's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –39.84%, net of fees. The Fund's Class I shares underperformed the Fund's benchmark, the Russell 3000® Health Care Net Index (the "Index"), which returned –6.50%.

**Factors Affecting Performance**

• Stubbornly high inflation, rapidly rising interest rates and moderating economic growth were significant headwinds to U.S. equity performance in 2022. The Russia-Ukraine war and China's widespread COVID-19 lockdowns worsened supply chain bottlenecks and drove food and energy prices higher. The U.S. Federal Reserve and other central banks around the world responded with larger-than-normal interest rate increases to bring inflation down, compounding economic uncertainty and contributing to elevated volatility in stock and bond markets. While tightening financial conditions helped slow some segments of the economy and inflation appeared to be receding from peak levels, the jobs market remained resilient and inflation rates were still historically high at year-end, setting up expectations for additional interest rate hikes in 2023.

• The health care sector declined over the year, as measured by the Index. The top performing industries were pharmaceuticals, health care providers & services, and biotechnology — the only industries with positive performance. The Index's weakest performing industries were insurance, electronic equipment instruments & components, and personal products, all of which posted double-digit declines.

• Counterpoint Global makes long-term investments in unique companies whose market value can increase significantly for underlying fundamental reasons. The team's portfolios are typically concentrated and differentiated from their benchmarks, with securities weighted based on an assessment of the quality of the company and the level of conviction.

• The long-term investment horizon and conviction-weighted investment approach embraced by the team since 1998 can result in periods of performance deviation from the benchmark and peers. The Fund underperformed the Index in this reporting period primarily due to unfavorable stock selection; sector allocations detracted to a lesser extent.

• The largest detractors from relative performance were stock selection in biotechnology, stock selection and an industry overweight in life science tools & services, and stock selection and an industry underweight in health care providers & services. The largest stock detractor across the portfolio was a life science tools company focused on single cell sequencing. Shares of the company declined, primarily due to weak market conditions for high growth equities. Investor concerns about macroeconomic weakness, supply chain challenges, and potentially greater competition also weighed on its shares during the period.

• Conversely, an average underweight in health care equipment & supplies and an overweight in biotechnology were positive contributors; however, the impact to relative performance was negligible given the Fund's relative underperformance. The top contributing stock across the portfolio was a commercial-stage biotechnology company that is a leader in gene silencing technologies with a focus on rare diseases. The company most recently reported strong quarterly results characterized by the much-anticipated trial for the treatment of heart failure therapy and a strong drug pipeline for 2023.

**Management Strategies**

• We seek to invest primarily in health care companies in the United States, principally engaged in the discovery, development, production, or distribution of products or services related to advances in health care, and that we believe have sustainable competitive advantages, strong research and development and productive new product flow, financial strength, and an attractive risk/reward profile.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Investment Overview (unaudited) (cont'd)

**Vitality Portfolio**

![](j23279234_ba004.jpg)

\* Minimum Investment for Class I shares

\*\* Commenced Operations on December 31, 2021.

In accordance with SEC regulations, the Fund's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, C and R6 shares will vary from the performance of Class I shares and will be negatively impacted by additional fees assessed to those classes (if applicable).

**Performance Compared to the Russell 3000<sup>®</sup> Health Care Net Index** **<sup>(1)</sup>** **and the Lipper Health/Biotechnology Funds Index** **<sup>(2)</sup>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** | **Period Ended December 31, 2022<br>Total Returns<sup>(3)</sup>** |
| | | **Average Annual** | **Average Annual** | **Average Annual** |
| |<br>**One<br>Year** | **Five<br>Years** | **Ten<br>Years** | **Since <br>Inception<sup>(5)</sup>** |
| Fund — Class I Shares <br>w/o sales charges<sup>(4)</sup> | –39.84% |  |  | –39.84% |
| Fund — Class A Shares <br>w/o sales charges<sup>(4)</sup> | –40.06 |  |  | –40.06 |
| Fund — Class A Shares <br>with maximum 5.25% <br>sales charges<sup>(4)</sup> | –43.18 |  |  | –43.18 |
| Fund — Class C Shares <br>w/o sales charges<sup>(4)</sup> | –40.45 |  |  | –40.45 |
| Fund — Class C Shares <br>with maximum 1.00% <br>deferred sales charges<sup>(4)</sup> | –41.04 |  |  | –41.04 |
| Fund — Class R6 Shares <br>w/o sales charges<sup>(4)</sup> | –39.81 |  |  | –39.81 |
| Russell 3000<sup>®</sup> Health Care Net Index | –6.50 |  |  | –6.50 |
| Lipper Health/Biotechnology <br>Funds Index | –12.94 |  |  | –12.94 |

---

***Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance of share classes will vary due to difference in sales charges and expenses. Fund's total returns are calculated based on the net asset value as of the last business day of the period.***

<sup>(1)</sup> The Russell 3000<sup>®</sup> Health Care Net Index is a capitalization-weighted index of companies involved in medical services or health care. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

<sup>(2)</sup> The Lipper Health/Biotechnology Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Health/Biotechnology Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. As of the date of this report, the Fund was in the Lipper Health/Biotechnology Funds classification.

<sup>(3)</sup> Total returns for the Fund reflect fees waived and expenses reimbursed, if applicable, by the Adviser (as defined herein). Without such waivers and reimbursements, total returns would have been lower.

<sup>(4)</sup> Commenced operations on December 31, 2021. Effective April 29, 2022, Class IS shares were renamed to Class R6 shares.

<sup>(5)</sup> For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Fund, not the inception of the Index.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments

**Vitality Portfolio**

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| **Common Stocks (99.5%)** | **Common Stocks (99.5%)** | **Common Stocks (99.5%)** |
| Biotechnology (28.0%) | Biotechnology (28.0%) | Biotechnology (28.0%) |
| 4D Molecular Therapeutics, Inc. (a) | 1237 | $28 |
| Abcam PLC ADR (United Kingdom) (a) | 1859 | 29 |
| Alnylam Pharmaceuticals, Inc. (a) | 355 | 84 |
| Altimmune, Inc. (a) | 1009 | 17 |
| Argenx SE ADR (Belgium) (a) | 238 | 90 |
| Beam Therapeutics, Inc. (a) | 995 | 39 |
| Century Therapeutics, Inc. (a) | 1415 | 7 |
| Exact Sciences Corp. (a) | 1174 | 58 |
| Fate Therapeutics, Inc. (a) | 1528 | 15 |
| Intellia Therapeutics, Inc. (a) | 1153 | 40 |
| Moderna, Inc. (a) | 298 | 54 |
| Relay Therapeutics, Inc. (a) | 1196 | 18 |
| Vertex Pharmaceuticals, Inc. (a) | 268 | 77 |
|  |  | 556 |
| Health Care Equipment & Supplies (16.4%) | Health Care Equipment & Supplies (16.4%) | Health Care Equipment & Supplies (16.4%) |
| Abbott Laboratories | 310 | 34 |
| Align Technology, Inc. (a) | 204 | 43 |
| DexCom, Inc. (a) | 697 | 79 |
| IDEXX Laboratories, Inc. (a) | 91 | 37 |
| Intuitive Surgical, Inc. (a) | 297 | 79 |
| iRhythm Technologies, Inc. (a) | 111 | 11 |
| ViewRay, Inc. (a) | 9399 | 42 |
|  |  | 325 |
| Health Care Providers & Services (9.0%) | Health Care Providers & Services (9.0%) | Health Care Providers & Services (9.0%) |
| Agilon health, Inc. (a) | 2736 | 44 |
| Guardant Health, Inc. (a) | 880 | 24 |
| UnitedHealth Group, Inc. | 208 | 110 |
|  |  | 178 |
| Health Care Technology (10.1%) | Health Care Technology (10.1%) | Health Care Technology (10.1%) |
| Doximity, Inc., Class A (a) | 1315 | 44 |
| Inspire Medical Systems, Inc. (a) | 315 | 80 |
| Schrodinger, Inc. (a) | 1942 | 36 |
| Veeva Systems, Inc., Class A (a) | 252 | 41 |
|  |  | 201 |
| Internet & Direct Marketing Retail (1.8%) | Internet & Direct Marketing Retail (1.8%) | Internet & Direct Marketing Retail (1.8%) |
| Chewy, Inc., Class A (a)(b) | 982 | 36 |
| Life Sciences Tools & Services (21.8%) | Life Sciences Tools & Services (21.8%) | Life Sciences Tools & Services (21.8%) |
| 10X Genomics, Inc., Class A (a) | 2312 | 84 |
| AbCellera Biologics, Inc. (Canada) (a)(b) | 1793 | 18 |
| Evotec SE ADR (Germany) (a) | 3384 | 28 |
| Illumina, Inc. (a) | 283 | 57 |
| MaxCyte, Inc. (a) | 7901 | 43 |
| SomaLogic, Inc. (a) | 6954 | 18 |
| Stevanato Group SpA (Italy) | 2617 | 47 |
| Thermo Fisher Scientific, Inc. | 191 | 105 |
| West Pharmaceutical Services, Inc. | 140 | 33 |
|  |  | 433 |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br>(000)** |
| Pharmaceuticals (12.4%) | Pharmaceuticals (12.4%) | Pharmaceuticals (12.4%) |
| ATAI Life Sciences NV (a)(b) | 8657 | $23 |
| Eli Lilly & Co. | 286 | 105 |
| GH Research PLC (a) | 932 | 9 |
| Royalty Pharma PLC, Class A | 1535 | 61 |
| Zoetis, Inc. | 331 | 48 |
|  |  | 246 |
| **Total Common Stocks (Cost $2,766)** | **Total Common Stocks (Cost $2,766)** | 1975 |
| **Short-Term Investments (6.5%)** | **Short-Term Investments (6.5%)** | **Short-Term Investments (6.5%)** |
| Securities held as Collateral on Loaned Securities (3.8%) | Securities held as Collateral on Loaned Securities (3.8%) | Securities held as Collateral on Loaned Securities (3.8%) |
| Investment Company (3.2%) | Investment Company (3.2%) | Investment Company (3.2%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) | 63282 | 63 |
|  | **Face<br>Amount<br>(000)** |  |
| Repurchase Agreements (0.6%) | Repurchase Agreements (0.6%) | Repurchase Agreements (0.6%) |
| HSBC Securities USA, Inc., (4.27%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $6; fully collateralized <br>by a U.S. Government obligation; <br>4.38% due 5/15/41; valued at $6) | $6 | 6 |
| Merrill Lynch & Co., Inc., (4.25%, <br>dated 12/30/22, due 1/3/23; <br>proceeds $6; fully collateralized <br>by a U.S. Government obligation; <br>1.50% due 2/15/25; valued at $6) | 6 | 6 |
|  |  | 12 |
| **Total Securities held as Collateral on Loaned <br>Securities (Cost $75)** | **Total Securities held as Collateral on Loaned <br>Securities (Cost $75)** | 75 |
|  | **Shares** |  |
| Investment Company (2.7%) | Investment Company (2.7%) | Investment Company (2.7%) |
| Morgan Stanley Institutional Liquidity <br>Funds — Treasury Securities Portfolio — <br>Institutional Class (See Note G) **(Cost $53)** | 53020 | 53 |
| **Total Short-Term Investments (Cost $128)** | **Total Short-Term Investments (Cost $128)** | 128 |
| **Total Investments (106.0%) (Cost $2,894) <br>Including $72 of Securities Loaned (c)** | **Total Investments (106.0%) (Cost $2,894) <br>Including $72 of Securities Loaned (c)** | 2103 |
| Liabilities in Excess of Other Assets (–6.0%) | Liabilities in Excess of Other Assets (–6.0%) | (119) |
| **Net Assets (100.0%)** | **Net Assets (100.0%)** | $1984 |

---

(a) Non-income producing security.

(b) All or a portion of this security was on loan at December 31, 2022.

(c) At December 31, 2022, the aggregate cost for federal income tax purposes is approximately $2,895,000. The aggregate gross unrealized appreciation is approximately $95,000 and the aggregate gross unrealized depreciation is approximately $887,000, resulting in net unrealized depreciation of approximately $792,000.

ADR American Depositary Receipt.

The accompanying notes are an integral part of the financial statements.<br>6

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Portfolio of Investments (cont'd)

**Vitality Portfolio**

**Portfolio Composition\***

---

| | |
|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** |
| Biotechnology | 27.4% |
| Life Sciences Tools & Services | 21.4 |
| Health Care Equipment & Supplies | 16.0 |
| Pharmaceuticals | 12.1 |
| Health Care Technology | 9.9 |
| Health Care Providers & Services | 8.8 |
| Others\*\* | 4.4 |
| Total Investments | 100.0% |

---

\* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of December 31, 2022.

\*\* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.<br>7

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Vitality Portfolio**

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **December 31, 2022<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value<sup>(1)</sup> (Cost $2,778) | $1987 |
| Investment in Security of Affiliated Issuer, at Value (Cost $116) | 116 |
| Total Investments in Securities, at Value (Cost $2,894) | 2103 |
| Due from Adviser | 66 |
| Dividends Receivable |  |
| Receivable from Affiliate |  |
| Receivable from Securities Lending Income |  |
| Other Assets | 40 |
| **Total Assets** | 2209 |
| **Liabilities:** | **Liabilities:** |
| Payable for Offering Costs | 125 |
| Collateral on Securities Loaned, at Value | 75 |
| Payable for Professional Fees | 15 |
| Payable for Transfer Agency Fees — Class I | 1 |
| Payable for Transfer Agency Fees — Class A |  |
| Payable for Transfer Agency Fees — Class C |  |
| Payable for Transfer Agency Fees — Class R6\* |  |
| Payable for Custodian Fees | 1 |
| 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 Administration Fees |  |
| Other Liabilities | 8 |
| **Total Liabilities** | 225 |
| **Net Assets** | $1984 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Paid-in-Capital | $3194 |
| Total Accumulated Loss | (1210 |
| **Net Assets** | $1984 |
| **CLASS I:** | **CLASS I:** |
| **Net Assets** | $1891 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 323536 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $5.84 |
| **CLASS A:** | **CLASS A:** |
| **Net Assets** | $33 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5749 |
| **Net Asset Value, Redemption Price Per Share** | $5.84 |
| **Maximum Sales Load** | 5.25 |
| **Maximum Sales Charge** | $0.32 |
| **Maximum Offering Price Per Share** | $6.16 |
| **CLASS C:** | **CLASS C:** |
| **Net Assets** | $30 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5090 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $5.85 |
| **CLASS R6:\*** | **CLASS R6:\*** |
| **Net Assets** | $30 |
| **Shares Outstanding** $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's) | 5154 |
| **Net Asset Value, Offering and Redemption Price Per Share** | $5.84 |
| **<sup>(1</sup><sup>)</sup> Including:**<br> Securities on Loan, at Value: | $72 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>8

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Vitality Portfolio**

---

| | |
|:---|:---|
| Statement of Operations | **Year Ended<br>December 31, 2022<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld) | $5 |
| Dividends from Security of Affiliated Issuer (Note G) | 1 |
| Income from Securities Loaned — Net | 1 |
| Total Investment Income | 7 |
| **Expenses:** | **Expenses:** |
| Offering Costs | 137 |
| Professional Fees | 81 |
| Shareholder Reporting Fees | 17 |
| Advisory Fees (Note B) | 16 |
| Transfer Agency Fees — Class I (Note E) | 3 |
| Transfer Agency Fees — Class A (Note E) | 2 |
| Transfer Agency Fees — Class C (Note E) | 2 |
| Transfer Agency Fees — Class R6\* (Note E) | 2 |
| Registration Fees | 7 |
| Custodian Fees (Note F) | 3 |
| Administration Fees (Note C) | 2 |
| Pricing Fees | 2 |
| Shareholder Services Fees — Class A (Note D) |  |
| Distribution and Shareholder Services Fees — Class C (Note D) |  |
| Sub Transfer Agency Fees — Class A |  |
| Directors' Fees and Expenses |  |
| Other Expenses | 2 |
| Total Expenses | 276 |
| Expenses Reimbursed by Adviser (Note B) | (232 |
| Waiver of Advisory Fees (Note B) | (16 |
| Reimbursement of Class Specific Expenses — Class I (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class A (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class C (Note B) | (2 |
| Reimbursement of Class Specific Expenses — Class R6\* (Note B) | (2 |
| Rebate from Morgan Stanley Affiliate (Note G) | (— |
| Net Expenses | 20 |
| **Net Investment Loss** | (13 |
| **Realized Loss:** | **Realized Loss:** |
| Investments Sold | (419 |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments | (745 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | (1164 |
| Net Decrease in Net Assets Resulting from Operations | $(1177 |

---

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.<br>9

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Vitality Portfolio**

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Year Ended<br>December 31, 2022<br>(000)** | **Period Ended<br>December 31, 2021^<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Loss | $(13 | $(— |
| Net Realized Loss | (419 |  |
| Net Change in Unrealized Appreciation (Depreciation) | (745 | (46 |
| Net Decrease in Net Assets Resulting from Operations | (1177 | (46 |
| **Paid-in-Capital:** | **Paid-in-Capital:** | **Paid-in-Capital:** |
| **Class I** | (57 |  |
| **Class A** | (1 |  |
| **Class C** | (1 |  |
| **Class R6\*** | (1 |  |
| Total Dividends and Distributions to Shareholders | (60 |  |
| **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** | **Capital Share Transactions:<sup>(1)</sup>** |
| **Class I:** | **Class I:** | **Class I:** |
| Subscribed | 244 | 2808 |
| Distributions Reinvested | 57 |  |
| **Class A:** | **Class A:** | **Class A:** |
| Subscribed | 5 | 50 |
| Distributions Reinvested | 1 |  |
| Redeemed | (— |  |
| **Class C:** | **Class C:** | **Class C:** |
| Subscribed |  | 50 |
| Distributions Reinvested | 1 |  |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Subscribed |  | 50 |
| Distributions Reinvested | 1 |  |
| Net Increase in Net Assets Resulting from Capital Share Transactions | 309 | 2958 |
| Total Increase (Decrease) in Net Assets | (928 | 2912 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 2912 |  |
| End of Period | $1984 | $2912 |
| **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** | **(1) Capital Share Transactions:** |
| **Class I:** | **Class I:** | **Class I:** |
| Shares Subscribed | 34 | 281 |
| Shares Issued on Distributions Reinvested | 9 |  |
| Net Increase in Class I Shares Outstanding | 43 | 281 |
| **Class A:** | **Class A:** | **Class A:** |
| Shares Subscribed | 1 | 5 |
| Shares Issued on Distributions Reinvested | —- |  |
| Shares Redeemed | (— |  |
| Net Increase in Class A Shares Outstanding | 1 | 5 |
| **Class C:** | **Class C:** | **Class C:** |
| Shares Subscribed |  | 5 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class C Shares Outstanding |  | 5 |
| **Class R6:\*** | **Class R6:\*** | **Class R6:\*** |
| Shares Subscribed |  | 5 |
| Shares Issued on Distributions Reinvested |  |  |
| Net Increase in Class R6 Shares Outstanding |  | 5 |

---

^ Commencement of Operations.

\* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.<br>10

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Vitality Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class I** | **Class I** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended <br>December 31, 2022** | **Period Ended<br> December 31, 2021<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $9.85 | $10.00 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.04) | (0.00)<sup>(3)</sup> |
| Net Realized and Unrealized Loss | (3.79) | (0.15) |
| Total from Investment Operations | (3.83) | (0.15) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Paid-in-Capital | (0.18) |  |
| **Net Asset Value, End of Period** | $5.84 | $9.85 |
| **Total Return** | (39.84)%<sup>(4)</sup> | (1.50)%<sup>(5)(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $1891 | $2765 |
| Ratio of Expenses Before Expense Limitation | 12.50% | 595.07%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 0.94%<sup>(6)</sup> | 0.95%<sup>(8)</sup> |
| Ratio of Net Investment Loss | (0.58)%<sup>(6)</sup> | (0.95)%<sup>(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | N/A |
| Portfolio Turnover Rate | 22% | 0%<sup>(7)</sup> |

---

(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) Calculated using the NAV for US GAAP financial reporting purposes.

(6) 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."

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.<br>11

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Vitality Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class A** | **Class A** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period Ended<br>December 31, 2021<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $9.85 | $10.00 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.06) | (0.00)<sup>(3)</sup> |
| Net Realized and Unrealized Loss | (3.79) | (0.15) |
| Total from Investment Operations | (3.85) | (0.15) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Paid-in-Capital | (0.16) |  |
| **Net Asset Value, End of Period** | $5.84 | $9.85 |
| **Total Return** | (40.06)%<sup>(4)</sup> | (1.50)%<sup>(5)(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $33 | $49 |
| Ratio of Expenses Before Expense Limitation | 18.13% | 598.74%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 1.29%<sup>(6)</sup> | 1.30%<sup>(8)</sup> |
| Ratio of Net Investment Loss | (0.93)%<sup>(6)</sup> | (1.30)%<sup>(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | N/A |
| Portfolio Turnover Rate | 22% | 0%<sup>(7)</sup> |

---

(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) Calculated using the NAV for US GAAP financial reporting purposes. Does not reflect the deduction of sales charge.

(6) 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."

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.<br>12

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Vitality Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class C** | **Class C** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended <br>December 31, 2022** | **Period Ended<br> December 31, 2021<sup>(1)</sup>** |
| **Net Asset Value, Beginning of Period** | $9.85 | $10.00 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(2)</sup> | (0.11) | (0.00)<sup>(3)</sup> |
| Net Realized and Unrealized Loss | (3.78) | (0.15) |
| Total from Investment Operations | (3.89) | (0.15) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Paid-in-Capital | (0.11) |  |
| **Net Asset Value, End of Period** | $5.85 | $9.85 |
| **Total Return** | (40.45)%<sup>(4)</sup> | (1.50)%<sup>(5)(7)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $30 | $49 |
| Ratio of Expenses Before Expense Limitation | 19.32% | 599.49%<sup>(8)</sup> |
| Ratio of Expenses After Expense Limitation | 2.04%<sup>(6)</sup> | 2.05%<sup>(8)</sup> |
| Ratio of Net Investment Loss | (1.68)%<sup>(6)</sup> | (2.05)%<sup>(8)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | N/A |
| Portfolio Turnover Rate | 22% | 0%<sup>(7)</sup> |

---

(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) Calculated using the NAV for US GAAP financial reporting purposes. Does not reflect the deduction of sales charge.

(6) 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."

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.<br>13

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Financial Highlights

**Vitality Portfolio**

---

| | | |
|:---|:---|:---|
| | **Class R6<sup>(1)</sup>** | **Class R6<sup>(1)</sup>** |
|<br>**Selected Per Share Data and Ratios** | **Year Ended<br>December 31, 2022** | **Period Ended<br>December 31, 2021<sup>(2)</sup>** |
| **Net Asset Value, Beginning of Period** | $9.85 | $10.00 |
| **Loss from Investment Operations:** | **Loss from Investment Operations:** | **Loss from Investment Operations:** |
| Net Investment Loss<sup>(3)</sup> | (0.04) | (0.00)<sup>(4)</sup> |
| Net Realized and Unrealized Loss | (3.78) | (0.15) |
| Total from Investment Operations | (3.82) | (0.15) |
| **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** | **Distributions from and/or in Excess of:** |
| Paid-in-Capital | (0.19) |  |
| **Net Asset Value, End of Period** | $5.84 | $9.85 |
| **Total Return** | (39.81)%<sup>(5)</sup> | (1.50)%<sup>(6)(8)</sup> |
| **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** | **Ratios to Average Net Assets and Supplemental Data:** |
| Net Assets, End of Period (Thousands) | $30 | $49 |
| Ratio of Expenses Before Expense Limitation | 18.29% | 598.49%<sup>(9)</sup> |
| Ratio of Expenses After Expense Limitation | 0.89%<sup>(7)</sup> | 0.90%<sup>(9)</sup> |
| Ratio of Net Investment Loss | (0.54)%<sup>(7)</sup> | (0.90)%<sup>(9)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates | 0.01% | N/A |
| Portfolio Turnover Rate | 22% | 0%<sup>(8)</sup> |

---

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(6) Calculated using the NAV for US GAAP financial reporting purposes.

(7) 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."

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.<br>14

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-three separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946.

The accompanying financial statements relate to the Vitality Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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/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/dealers; (3) fixed income securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. 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 does not reflect the security's fair value or is unable to provide a price, prices from brokers/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/dealers; (4) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; 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.

In connection with Rule 2a-5 of the Act, which became effective September 8, 2022, the Directors have designated the Company's Adviser as its valuation designee.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Company's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Company's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Company to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** | **Common Stocks** |
| Biotechnology | $556 | $— | $— | $556 |
| Health Care Equipment & <br>Supplies | 325 |  |  | 325 |
| Health Care Providers & <br>Services | 178 |  |  | 178 |
| Health Care Technology | 201 |  |  | 201 |
| Internet & Direct <br>Marketing Retail | 36 |  |  | 36 |
| Life Sciences Tools & <br>Services | 433 |  |  | 433 |
| Pharmaceuticals | 246 |  |  | 246 |
| **Total Common Stocks** | **1975** | **—** | **—** | **1975** |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| Investment Company | 116 |  |  | 116 |
| Repurchase Agreements |  | 12 |  | 12 |
| **Total Short-Term <br>Investments** | **116** | **12** | **—** | **128** |
| **Total Assets** | $**2091** | $**12** | $**—** | $**2103** |

---

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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. 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 December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** | **Gross Amounts Not Offset in the Statement of Assets and Liabilities** |
| **Gross Asset <br>Amounts<br>Presented in the <br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received<br>(000)** | **Net Amount<br>(not less<br>than $0)<br>(000)** |
| $72<br> (a) | $— | $(72)(b)(c) | $0 |

---

(a) Represents market value of loaned securities at year end.

(b) The Fund received cash collateral of approximately $75,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments.

(c) 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 borrowings.

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 December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and<br>Continuous<br>(000)** | **<30 days<br>(000)** | **Between<br>30 &<br>90 days<br>(000)** | **>90 days<br>(000)** | **Total<br>(000)** |
| **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** | **Securities Lending <br>Transactions** |
| Common Stocks | $75 | $— | $— | $— | $75 |
| **Total Borrowings** | $**75** | $**—** | $**—** | $**—** | $**75** |
| **Gross amount of <br>recognized liabilities <br>for securities lending <br>transactions** |  |  |  |  | $**75** |

---

**5. Indemnifications:** The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company 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 annually. Net

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company 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 $500<br>million** | **Over $500<br>million** |
| 0.75% | 0.70% |

---

For the year ended December 31, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% 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 0.95% for Class I shares, 1.30% for Class A shares, 2.05% for Class C shares and 0.90% for Class R6 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such

action is appropriate. For the year ended December 31, 2022, approximately $16,000 of advisory fees were waived and approximately $240,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

**C. Administration Fees:** The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.

**E. Dividend Disbursing and Transfer/Co-Transfer Agent:** The Company's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS, Inc."). Pursuant to a Transfer Agency Agreement, the Company pays SS&C GIDS, Inc. a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended December 31, 2022, EVM earned $0 for providing such services.

**F. Custodian Fees:** State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**G. Security Transactions and Transactions with Affiliates:** For the year ended December 31, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $697,000 and $481,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended December 31, 2022.

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 year ended December 31, 2022, advisory fees paid were reduced by less 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 year ended December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company** | **Value<br>December 31,<br>2021<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales <br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Funds | $— | $3696 | $3580 | $1 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated <br>Investment<br>Company (cont'd)** | **Realized<br>Gain<br>(Loss)<br>(000)** | **Change in <br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>December 31,<br>2022<br>(000)** |
| Liquidity Funds | $— | $— | $116 |

---

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an

affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended December 31, 2022, 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 Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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 two-year period ended December 31, 2022 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

------

**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Notes to Financial Statements (cont'd)

tax purposes. The tax character of distributions paid during fiscal years 2022 and 2021 was as follows:

---

| | |
|:---|:---|
| **2022 Distributions <br>Paid From: <br>Paid-in-Capital<br>(000)** | **2021 Distributions<br>Paid From:<br>Ordinary Income<br>(000)** |
| $60 | $— |

---

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 December 31, 2022:

---

| | |
|:---|:---|
| **Total<br>Accumulated<br>Loss<br>(000)** | **Paid-in<br>Capital<br>(000)** |
| $13 | $(13) |

---

At December 31, 2022, the Fund had no distributable earnings on a tax basis.

At December 31, 2022, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $419,000 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 Company 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 for any funds drawn will be based on the federal funds 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, which is allocated among participating funds based on relative net assets. During the year ended December 31, 2022, the Fund did not have any borrowings under the Facility.

**J. Other:** At December 31, 2022, the Fund had record owners of 10% or greater. Investment activities of these sharehold-

ers could have a material impact on the Fund. The aggregate percentage of such owners was 52.6%.

**K. Market Risk:**Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, rapid interest rate changes and supply chain disruptions, may occur and could significantly impact issuers, industries, governments and other systems, including the financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments and exacerbate pre-existing risks to the Fund. For example, coronavirus ("COVID-19") and associated recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. The financial performance of the Fund's investments (and, in turn, the Fund's investment results) may be adversely affected because of these and similar types of factors and developments.

**L. Results of Special Meeting of Shareholders (unaudited):** On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For** | **For** | **Against** | **Against** |
| Frances L. Cashman |  | 895,789,918 |  | 17,421,265 |
| Nancy C. Everett |  | 891,941,804 |  | 21,269,379 |
| Eddie A. Grier |  | 895,027,459 |  | 18,183,724 |
| Jakki L. Haussler |  | 891,938,480 |  | 21,272,703 |
| Patricia A. Maleski |  | 892,862,042 |  | 20,349,141 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Report of Independent Registered Public Accounting Firm

**To the Shareholders and Board of Directors of<br>Morgan Stanley Institutional Fund, Inc. — <br>Vitality Portfolio**

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities of Vitality Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund, Inc. (the "Company")), including the portfolio of investments, as of December 31, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year then ended and for the period from December 31, 2021 (commencement of operations) through December 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund, Inc.) at December 31, 2022, the results of its operations for the year then ended, and the changes in its net assets and its financial highlights for the year then ended and for the period from December 31, 2021 (commencement of operations) through December 31, 2021, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](j23279234_fa005.jpg)

We have served as the auditor of one or more Morgan Stanley investment companies since 2000.<br>Boston, Massachusetts<br>February 28, 2023

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Liquidity Risk Management Program (unaudited)

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 Directors (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 1-2, 2022, 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, 2021, through December 31, 2021, as required under the Liquidity Rule. 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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Federal Tax Notice (unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended December 31, 2022. For corporate shareholders 3.26% of the dividends qualified for the dividends received deduction.

For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended December 31, 2022. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $2,000 as taxable at this lower rate.

In January, the Fund provides tax information to shareholders for the preceding calendar year.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) April 2021

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| | |
|:---|:---|
| **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:<br>◼ Social Security number and income<br>◼ investment experience and risk tolerance<br>◼ 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. |

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| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br> 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 —** <br> 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 —** <br> information about your transactions, experiences, and creditworthiness | Yes | Yes |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —** <br> 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 |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

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| | |
|:---|:---|
| **To limit our sharing** | Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com<br>**Please note:**<br> 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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**Who we are**

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| | |
|:---|:---|
| **Who is providing this notice?** | Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (*see* Investment Management Affiliates definition below) |

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**What we do**

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| | |
|:---|:---|
| **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<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>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<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

U.S. Customer Privacy Notice (unaudited) (cont'd) April 2021

**Definitions**

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| | |
|:---|:---|
| **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.<br>◼ *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.<br>◼ *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.<br>◼ *MSIM doesn't jointly market* |

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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.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited)

Independent Directors:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Frank L. Bowman<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1944 | Director | Since August 2006 | President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); formerly, Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (2007-2015); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996) and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mèrite by the French Government; elected to the National Academy of Engineering (2009). | 85 | Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a former member of the CNA Military Advisory Board; Chairman of Fairhaven United Methodist Church Board of Trustees; Member of the Board of Advisors of the Dolphin Scholarship Foundation; Director of other various nonprofit organizations; formerly, Director of BP, plc (November 2010-May 2019). |
| Frances L. Cashman<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1961 | Director | Director Since February 2022 | Chief Executive Officer, Asset Management Division, Director or Trustee of various Morgan Stanley Funds (since February 2022); Delinian Ltd. (financial information) (May 2021-Present); Executive Vice President and various other roles, Legg Mason & Co. (asset management) (2010-2020); Managing Director, Stifel Nicolaus (2005-2010). | 86 | Trustee and Investment Committee Member, GeorgiaTech Foundation (since June 2019); Trustee and Chair of Marketing Committee, Member of Investment Committee, Loyola Blakefield (Since September 2017); Trustee, MMI Gateway Foundation (since September 2017); Director and Investment Committee Member, Catholic Community Foundation Board (2012-2018); Director and Investment Committee Member, St. Ignatius Loyola Academy (2011-2017). |
| Kathleen A. Dennis <br>c/o Perkins Coie LLP <br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1953 | Director | Since August 2006 | Chairperson of the Governance Committee (since January 2021), Chairperson of the Liquidity and Alternatives Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006). | 85 | Board Member, University of Albany Foundation (2012-present); Board Member, Mutual Funds Directors Forum (2014-present); Director of various non-profit organizations. |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Nancy C. Everett<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Since January 2015 | Chairperson of the Equity Investment Committee (since January 2021); Director or Trustee of various Morgan Stanley Funds (since January 2015); Chief Executive Officer, Virginia Commonwealth University Investment Company (since November 2015); Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013) and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010). | 86 | Formerly, Member of Virginia Commonwealth University School of Business Foundation (2005-2016); Member of Virginia Commonwealth University Board of Visitors (2013-2015); Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010). |
| Eddie A. Grier<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1955 | Director | Director Since February 2022 | Dean, Santa Clara University Leavey School of Business (since July 2021); Director or Trustee of various Morgan Stanley Funds (since February 2022); Dean, Virginia Commonwealth University School of Business (2010-2021); President and various other roles, Walt Disney Company (entertainment and media) (1981-2010). | 86 | Director, Witt/Keiffer, Inc. (executive search) (since 2016); Director, NuStar GP, LLC (energy) (since August 2021); Director, Sonida Senior Living, Inc. (residential community operator) (2016-2021); Director, NVR, Inc. (homebuilding) (2013-2020); Director, Middleburg Trust Company (wealth management) (2014-2019); Director, Colonial Williamsburg Company (2012-2021); Regent, University of Massachusetts Global (since 2021); Director and Chair, ChildFund International (2012-2021); Trustee, Brandman University (2010-2021); Director, Richmond Forum (2012-2019). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Jakki L. Haussler<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1957 | Director | Since January 2015 | Chairperson of the Audit Committee (January 2023), Director or Trustee of various Morgan Stanley Funds (since January 2015); Chairman, Opus Capital Group (since 1996); formerly, Chief Executive Officer, Opus Capital Group (1996-2019); Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008). | 86 | Director, Vertiv Holdings Co. (VRT) (August 2022); Director, Barnes Group Inc. (since July 2021); Director of Cincinnati Bell Inc. and Member, Audit Committee and Chairman, Governance and Nominating Committee (2008-2021); Director of Service Corporation International and Member, Audit Committee and Investment Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Center for Law and Entrepreneurship Director of Best Transport (2005-2019); Director of Chase College of Law Board of Visitors; formerly, Member, University of Cincinnati Foundation Investment Committee; Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008). |
| Dr. Manuel H. Johnson<br>c/o Johnson Smick<br>International, Inc.<br>220 I Street, NE <br>Suite 200<br>Washington, D.C. 20002<br>Birth Year: 1949 | Director | Since July 1991 | Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Fixed Income, Liquidity and Alternatives Investment Committee (since January 2021), Chairperson of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006); Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury. | 85 | Director of NVR, Inc. (home construction). |

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Independent Directors: (cont'd)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name, Address and Birth <br>Year of Independent Director | Position(s) <br>Held with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years and Other<br>Relevant Professional Experience | Number of <br>Funds in <br>Fund Complex<br>Overseen by <br>Independent<br>Director\*\* | Other Directorships <br>Held by Independent<br>Director During<br>Past 5 Years\*\*\* |
| Joseph J. Kearns<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1942 | Director | Since August 1994 | Senior Adviser, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee of various Morgan Stanley Funds (August 1994-December 2022), Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006); CFO of the J. Paul Getty Trust (1982-1999). | 86 | Director, Rubicon Investments (since February 2019); Prior to August 2016, Director of Electro Rent Corporation (equipment leasing); Prior to December 31, 2013, Director of The Ford Family Foundation. |
| Michael F. Klein<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1958 | Director | Since August 2006 | Chairperson of the Risk Committee (since January 2021); Managing Director, Aetos Alternatives Management, LP (since March 2000); Co-President, Aetos Alternatives Management, LP (since January 2004) and Co-Chief Executive Officer of Aetos Alternatives Management, LP (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (2006-2020) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management and President, various Morgan Stanley Funds (June 1998-March 2000); Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999). | 85 | Director of certain investment funds managed or sponsored by Aetos Alternatives Management, LP; Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals). |
| Patricia A. Maleski<br>c/o Perkins Coie LLP<br>Counsel to the Independent<br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1960 | Director | Since January 2017 | Director or Trustee of various Morgan Stanley Funds (since January 2017); Managing Director, JPMorgan Asset Management (2004-2016); Oversight and Control Head of Fiduciary and Conflicts of Interest Program (2015-2016); Chief Control Officer — Global Asset Management (2013-2015); President, JPMorgan Funds (2010-2013); Chief Administrative Officer (2004-2013); various other positions including Treasurer and Board Liaison (since 2001). | 86 | Trustee (since January 2022) and Treasurer (since January 2023), Nutley Family Service Bureau, Inc. |
| W. Allen Reed<br>c/o Perkins Coie LLP<br>Counsel to the Independent <br>Directors<br>1155 Avenue of the Americas<br>22nd Floor<br>New York, NY 10036<br>Birth Year: 1947 | Chair of the Board and Director | Chair of the Board since August 2020 and Director since August 2006 | Chair of the Boards of various Morgan Stanley Funds (since August 2020); Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Vice Chair of the Boards of various Morgan Stanley Funds (January 2020-August 2020); President and Chief Executive Officer of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005). | 85 | Formerly, Director of Legg Mason, Inc. (2006-2019); and Director of the Auburn University Foundation (2010-2015). |

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\* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.

\*\* The Fund Complex includes (as of December 31, 2022) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

\*\*\* This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

Director and Officer Information (unaudited) (cont'd)

Executive Officers:

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| | | | |
|:---|:---|:---|:---|
| Name, Address and <br>Birth Year of Executive Officer | Position(s) Held <br>with<br>Registrant | Length of Time<br>Served\* | Principal Occupation(s) During Past 5 Years |
| John H. Gernon<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1963 | President and Principal Executive Officer | Since September <br>2013 | President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex; Managing Director of the Adviser. |
| Deidre A. Downes<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1977 | Chief Compliance Officer | Since November <br>2021 | Executive Director of the Adviser (since January 2021) and Chief Compliance Officer of various Morgan Stanley Funds (since November 2021). Formerly, Vice President and Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020). |
| Francis J. Smith<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1965 | Treasurer and Principal Financial Officer | Treasurer since July 2003 and Principal Financial Officer since September 2002 | Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002). |
| Mary E. Mullin<br>1633 Broadway<br>New York, NY 10019<br>Birth Year: 1967 | Secretary | Since June 1999 | Managing Director of the Adviser; Secretary of various Morgan Stanley Funds (since June 1999). |
| Michael J. Key<br>522 Fifth Avenue<br>New York, NY 10036<br>Birth Year: 1979 | Vice President | Since June 2017 | Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017); Managing Director of the Adviser; Head of Product Development for Equity and Fixed Income Funds (since August 2013). |

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The Fund's statement of additional information includes further information about the Fund's Directors and Officers, and is available without charge by visiting www.morganstanley.com/im/shareholderreports or upon request by calling 1 (800) 869-6397.

\* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

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**Morgan Stanley Institutional Fund, Inc.**

**Annual Report — December 31, 2022**

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Distributor**

Morgan Stanley Distribution, Inc.<br>522 Fifth Avenue<br>New York, New York 10036

**Dividend Disbursing and Transfer Agent**

SS&C Global Investor & Distribution Solutions, Inc.<br>2000 Crown Colony Drive<br>Quincy, Massachusetts 02169

**Co-Transfer Agent**

Eaton Vance Management<br>Two International Place<br>Boston, Massachusetts 02110

**Custodian**

State Street Bank and Trust Company<br>One Lincoln Street<br>Boston, Massachusetts 02111

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Perkins Coie LLP<br>1155 Avenue of the Americas,<br>22nd Floor<br>New York, New York 10036

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>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 Company's Proxy Voting Policy and Procedures and information regarding how the Company 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) 869-6397 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, Inc., 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) 869-6397.

**Householding Notice**

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 869-6397, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

------

Printed in U.S.A.<br>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.<br>522 Fifth Avenue<br>New York, New York 10036© 2023 Morgan Stanley. Morgan Stanley Distribution, Inc.

![](j23279234_za006.jpg)

IFIVITANN<br>5452881 EXP 02.29.24

------

Item 2. Code of Ethics.

(a) The registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b) No information need be disclosed pursuant to this paragraph.

(c) Not applicable.

(d) Not applicable.

(e) Not applicable.

(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The registrant's Code of Ethics is attached hereto as Exhibit 13 A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Not applicable.

Item 3. Audit Committee Financial Expert.

The registrant's Board of Directors has determined that Jakki L. Haussler, an "independent" Trustee, is an "audit committee financial expert" serving on its audit committee. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Directors in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

(a)(b)(c)(d) and (g). Based on fees billed for the periods shown:

**2022**

---

| | | |
|:---|:---|:---|
|  | **Registrant** | **Covered Entities<sup>(1)</sup>** |
| **Audit Fees** | $1753833 | N/A |
| **Non-Audit Fees** |  |  |
| &nbsp;&nbsp;&nbsp;**Audit-Related Fees** | $—<sup>(2)</sup> | $—<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;**Tax Fees** | $nan<sup>(3)</sup> | $—<sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;**All Other Fees** | $— | $5778872<sup>(5)</sup> |
| **Total Non-Audit Fees** | $— | $5778872 |
| **Total** | $1753833 | $5778872 |

---

**2021**

---

| | | |
|:---|:---|:---|
|  | **Registrant** | **Covered Entities<sup>(1)</sup>** |
| **Audit Fees** | $1631907 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A |
| **Non-Audit Fees** |  |  |
| &nbsp;&nbsp;&nbsp;**Audit-Related Fees** | $—<sup>(2)</sup> | $—<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;**Tax Fees** | $—<sup>(3)</sup> | $26678468<sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;**All Other Fees** | $— | $—<sup>(5)</sup> |
| **Total Non-Audit Fees** | $— | $26678468 |
| **Total** | $1631907 | $26678468 |

---

N/A- Not applicable, as not required by Item 4.

<sup>(1)</sup> Covered Entities include the Adviser (excluding sub-advisors) and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Registrant.

<sup>(2)</sup> Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Covered Entities' and funds advised by the Adviser or its affiliates, specifically data verification and agreed-upon procedures related to asset securitizations and agreed-upon procedures engagements.

<sup>(3)</sup> Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the preparation and review of the Registrant's tax returns.

<sup>(4)</sup> Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the review of Covered Entities' tax returns.

<sup>(5)</sup> The fees included under "All Other Fees" are for services provided by Ernst & Young LLP related to surprise examinations for certain investment accounts to satisfy SEC Custody Rules and consulting services related to merger integration for sister entity to the Adviser.

(e)(1) The audit committee's pre-approval policies and procedures are as follows:

**AUDIT COMMITTEE**

**AUDIT AND NON-AUDIT SERVICES**

**PRE-APPROVAL POLICY AND PROCEDURES**

**OF THE**

**MORGAN STANLEY FUNDS**

**AS ADOPTED AND AMENDED JULY 23, 2004 AND JUNE 12 AND 13, 2019<sup>3</sup>**

**1.** **Statement of Principles** 

The Audit Committee of the Board is required to review and, in its sole discretion, pre-approve all Covered Services to be provided by the Independent Auditors to the Fund and Covered Entities in order to assure that services performed by the Independent Auditors do not impair the auditor's independence from the Fund.

The SEC has issued rules specifying the types of services that an independent auditor may not provide to its audit client, as well as the audit committee's administration of the engagement of the independent auditor. The SEC's rules establish two different approaches to pre-approving services, which the SEC considers to be equally valid. Proposed services either: may be pre-approved without consideration of specific case-by-case services by the Audit Committee ("<u>general pre-approval</u>"); or require the specific pre-approval of the Audit Committee or its delegate ("<u>specific pre-approval</u>"). The Audit Committee believes that the combination of these two approaches in this Policy will result in an effective and efficient procedure to pre-approve services performed by the Independent Auditors. As set forth in this Policy, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee (or by any member of the Audit Committee to which pre-approval authority has been delegated) if it is to be provided by the Independent Auditors. Any proposed services exceeding pre-approved cost levels or budgeted amounts will also require specific pre-approval by the Audit Committee.

The appendices to this Policy describe the Audit, Audit-related, Tax and All Other services that have the general pre-approval of the Audit Committee. The term of any general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee considers and provides a different period and states otherwise. The Audit Committee will annually review and pre-approve the services that may be provided by the Independent Auditors without obtaining specific pre-approval from the Audit Committee. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

The purpose of this Policy is to set forth the policy and procedures by which the Audit Committee intends to fulfill its responsibilities. It does not delegate the Audit Committee's responsibilities to pre-approve services performed by the Independent Auditors to management.

The Fund's Independent Auditors have reviewed this Policy and believes that implementation of the Policy will not adversely affect the Independent Auditors' independence.

<sup>3</sup> This Audit Committee Audit and Non-Audit Services Pre-Approval Policy and Procedures (the "<u>Policy</u>"), adopted as of the date above, supersedes and replaces all prior versions that may have been adopted from time to time.

**2.** **Delegation** 

As provided in the Act and the SEC's rules, the Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting.

**3.** **Audit Services** 

The annual Audit services engagement terms and fees are subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the Independent Auditors to be able to form an opinion on the Fund's financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations relating to the audit. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, Fund structure or other items.

In addition to the annual Audit services engagement approved by the Audit Committee, the Audit Committee may grant general pre-approval to other Audit services, which are those services that only the Independent Auditors reasonably can provide. Other Audit services may include statutory audits and services associated with SEC registration statements (on Forms N-1A, N-2, N-3, N-4, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

The Audit Committee has pre-approved the Audit services in Appendix A. All other Audit services not listed in Appendix A must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

**4.** **Audit-related Services** 

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Fund's financial statements and, to the extent they are Covered Services, the Covered Entities or that are traditionally performed by the Independent Auditors. Because the Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor and is consistent with the SEC's rules on auditor independence, the Audit Committee may grant general pre-approval to Audit-related services. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as "Audit services"; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Forms N-CEN and/or N-CSR.

The Audit Committee has pre-approved the Audit-related services in Appendix A. All other Audit-related services not listed in Appendix A must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

**5.** **Tax Services** 

The Audit Committee believes that the Independent Auditors can provide Tax services to the Fund and, to the extent they are Covered Services, the Covered Entities, such as tax compliance, tax planning and tax advice without impairing the auditor's independence, and the SEC has stated that the Independent Auditors may provide such services.

Pursuant to the preceding paragraph, the Audit Committee has pre-approved the Tax Services in Appendix A. All Tax services in Appendix A must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

**6.** **All Other Services** 

The Audit Committee believes, based on the SEC's rules prohibiting the Independent Auditors from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the Audit Committee believes it may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, would not impair the independence of the auditor and are consistent with the SEC's rules on auditor independence.

The Audit Committee has pre-approved the All Other services in Appendix A. Permissible All Other services not listed in Appendix A must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

**7.** **Pre-Approval Fee Levels or Budgeted Amounts** 

Pre-approval fee levels or budgeted amounts for all services to be provided by the Independent Auditors will be established annually by the Audit Committee. Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee is mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services.

**8.** **Procedures** 

All requests or applications for services to be provided by the Independent Auditors that do not require specific approval by the Audit Committee will be submitted to the Fund's Principal Financial and Accounting Officer and must include a detailed description of the services to be rendered. The Fund's Principal Financial and Accounting Officer will determine whether such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed on a timely basis of any such services rendered by the Independent Auditors. Requests or applications to provide services that require specific approval by the Audit Committee or Chairperson of the Audit Committee will be submitted to the Audit Committee by the Fund's Principal Financial and Accounting Officer, who, after consultation with the Independent Auditors, will discuss whether the request or application is consistent with the SEC's rules on auditor independence.

The Audit Committee has designated the Fund's Principal Financial and Accounting Officer to monitor the performance of all services provided by the Independent Auditors and to determine whether such services are in compliance with this Policy. The Fund's Principal Financial and Accounting Officer will report to the Audit Committee on a periodic basis on the results of its monitoring. Both the Fund's Principal Financial and Accounting Officer and management will immediately report to the Chairperson of the Audit Committee any breach of this Policy that comes to the attention of the Fund's Principal Financial and Accounting Officer or any member of management.

**9.** **Additional Requirements** 

The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the Independent Auditors and to assure the auditor's independence from the Fund, such as reviewing a formal written statement from the Independent Auditors delineating all relationships between the Independent Auditors and the Fund, consistent with the PCAOB's Ethics and Independence Rule 3526, and discussing with the Independent Auditors its methods and procedures for ensuring independence.

**10.** **Covered Entities** 

Covered Entities include the Fund's investment adviser(s) and any entity controlling, controlled by or under common control with the Fund's investment adviser(s) that provides ongoing services to the Fund(s). Beginning with non-audit service contracts entered into on or after May 6, 2003, the Fund's audit committee must pre-approve non-audit services provided not only to the Fund but also to the Covered Entities if the engagements relate directly to the operations and financial reporting of the Fund. This list of Covered Entities would include:

<u>Morgan Stanley Funds</u>

Morgan Stanley & Co. LLC

Morgan Stanley Investment Management Inc.

Morgan Stanley Investment Management Limited

Morgan Stanley Investment Management Private Limited

Morgan Stanley Asset & Investment Trust Management Co., Limited

Morgan Stanley Investment Management Company

Morgan Stanley Services Company, Inc.

Morgan Stanley Distribution, Inc.

Morgan Stanley AIP GP LP

Morgan Stanley Alternative Investment Partners LP

Morgan Stanley Smith Barney LLC

Morgan Stanley Capital Management LLC

Morgan Stanley Asia Limited

Morgan Stanley Services Group

(e)(2) Beginning with non-audit service contracts entered into on or after May 6, 2003, the audit committee also is required to pre-approve services to Covered Entities to the extent that the services are determined to have a direct impact on the operations or financial reporting of the Registrant. 100% of such services were pre-approved by the audit committee pursuant to the Audit Committee's pre-approval policies and procedures (attached hereto).

(f) Not applicable.

(g) See table above.

(h) The audit committee of the Board of Directors has considered whether the provision of services other than audit services performed by the auditors to the Registrant and Covered Entities is compatible with maintaining the auditors' independence in performing audit services.

**APPENDIX A**

**Pre-Approved Audit Services**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Service** | &nbsp;&nbsp;**Range of Fees** | &nbsp;&nbsp;**Range of Fees** |
|  | &nbsp;&nbsp;**The Fund(s)** | &nbsp;&nbsp;**Covered<br> Entities** |
| &nbsp;&nbsp; <br> Statutory audits or financial audits for the Funds<br>| &nbsp;&nbsp;&nbsp; <br> For a complete list of fees, please contact the legal department<br> \*\*<br>| &nbsp;&nbsp; <br> N/A |
| &nbsp;&nbsp; <br> Services associated with SEC registration statements (including new fund filings/seed audits), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end fund offerings, consents), and assistance in responding to SEC comment letters<br>| &nbsp;&nbsp; <br> \*<br>| &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> Consultations by the Fund's management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard setting bodies (Note: Under SEC rules, some consultations may be "audit related" services rather than "audit" services)<br>| &nbsp;&nbsp; <br> \*<br>| &nbsp;&nbsp; <br> \* |

---

**Pre-Approved Audit-Related Services**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Service** | &nbsp;&nbsp;**Range of Fees** | &nbsp;&nbsp;**Range of Fees** |
|  | &nbsp;&nbsp;**The Fund(s)** | &nbsp;&nbsp;**Covered<br> Entities** |
| &nbsp;&nbsp;Attest procedures not required by statute or regulation | &nbsp;&nbsp; \*<br>| &nbsp;&nbsp;\* |
| &nbsp;&nbsp; <br> Due diligence services pertaining to potential fund mergers<br>| &nbsp;&nbsp; <br> \* | &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> Consultations by the Fund's management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be "audit" services rather than "audit-related" services)<br>| &nbsp;&nbsp; <br> \*<br>| &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> General assistance with implementation of the requirements of SEC rules or listing standards promulgated pursuant to the Sarbanes-Oxley Act<br>| &nbsp;&nbsp; <br> \* | &nbsp;&nbsp; <br> \* |

---

**Pre-Approved Tax Services**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Service** | &nbsp;&nbsp;**Range of Fees** | &nbsp;&nbsp;**Range of Fees** |
|  | &nbsp;&nbsp;**The Fund(s)** | &nbsp;&nbsp;**Covered<br> Entities** |
| &nbsp;&nbsp; <br> U.S. federal, state and local tax planning and advice<br>| &nbsp;&nbsp; <br> \* | &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> U.S. federal, state and local tax compliance | &nbsp;&nbsp; <br> \* | &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> International tax planning and advice | &nbsp;&nbsp; <br> \* | &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> International tax compliance<br>| &nbsp;&nbsp; <br> \* | &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> Review/preparation of federal, state, local and international income, franchise, and other tax returns<br>| &nbsp;&nbsp; <br> $450,000 PwC | &nbsp;&nbsp; <br> N/A<br>|
| &nbsp;&nbsp; <br> Identification of Passive Foreign Investment Companies<br>| &nbsp;&nbsp; <br> $175,000 PwC<br>| &nbsp;&nbsp; <br> \*<br>|
| &nbsp;&nbsp; <br> PwC ITV Tool – assist in determining which Fund holdings have foreign capital gains tax exposure<br>| &nbsp;&nbsp;$125,000 PwC | &nbsp;&nbsp;\* |
| &nbsp;&nbsp; <br> Foreign Tax Services - Preparation of local foreign tax returns and assistance with local tax compliance issues (including maintenance of transaction schedules, assistance in periodic tax remittances, tax registration, representing funds before foreign revenue authorities and assistance with assessment orders)<br>| &nbsp;&nbsp;$500,000 PwC | &nbsp;&nbsp;\* |
| &nbsp;&nbsp; <br> Assistance with tax audits and appeals before the IRS and similar state, local and foreign agencies<br>| &nbsp;&nbsp; <br> \*<br>| &nbsp;&nbsp; <br> \* |
| &nbsp;&nbsp; <br> Tax advice and assistance regarding statutory, regulatory or administrative developments (e.g., excise tax reviews, evaluation of Fund's tax compliance function)<br>| &nbsp;&nbsp; <br> \*<br>| &nbsp;&nbsp; <br> \*<br>|

---

**Pre-Approved All Other Services**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Service** | &nbsp;&nbsp;**Range of Fees** | &nbsp;&nbsp;**Range of Fees** |
|  | &nbsp;&nbsp;**The Fund(s)** | &nbsp;&nbsp;**Covered<br> Entities** |
| &nbsp;&nbsp; <br> Risk management advisory services, e.g., assessment and testing of security infrastructure controls<br>| &nbsp;&nbsp; <br> \*<br>| &nbsp;&nbsp; <br> \*<br>|

---

\*Aggregate fees related to the pre-approved services will be limited to 10% of the 2022/2023 annual fees for audit and tax services (see fee schedule distributed by the Auditors).

\*\* Audit and tax services for new funds/portfolios will be subject to the maximum audit and tax fee for a fund/portfolio on fee schedule distributed by the Auditors.

**Prohibited Non-Audit Services**

● Bookkeeping or other services related to the accounting records or financial statements of the audit client

● Financial information systems design and implementation

● Appraisal or valuation services, fairness opinions or contribution-in-kind reports

● Actuarial services

● Internal audit outsourcing services

● Management functions

● Human resources

● Broker-dealer, investment adviser or investment banking services

● Legal services

● Expert services unrelated to the audit

(i) Not Applicable.

(j) Not Applicable.

Item 5. Audit Committee of Listed Registrants.

&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant has a separately-designated standing audit committee
established in accordance with Section 3(a)(58)(A) of the Exchange Act whose members are:

Joseph J. Kearns, Nancy C. Everett, Eddie A. Grier and Jakki L. Haussler.

(b) Not applicable.

Item 6. Schedule of Investments

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Applicable only to reports filed by closed-end funds.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable only to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund's Board of Directors 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 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) The Code of Ethics for Principal Executive and Senior Financial Officers.](tm232792d1_ex99-codeeth.htm)

[(b) A separate certification for each principal executive officer and principal financial officer of the registrant as part of EX-99.CERT.](tm232792d1_ex99-cert.htm)

[(c) Section 906 Certification](tm232792d1_ex99-906cert.htm)

**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, Inc.

/s/ John H. Gernon

John H. Gernon

Principal Executive Officer

February 16, 2023

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

February 16, 2023

/s/ Francis J. Smith

Francis J. Smith

Principal Financial Officer

February 16, 2023

## Ex-99.Code

**Exhibit 99.CODEETH**

**EXHIBIT 13 a**

**<u>CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS<br> adopted SEPTEMBER 28, 2004, As AMended September 20, 2005, december 1, 2006, January 1, 2008 , SEPTEMBER 25, 2008 and april 23, 2009 And March 18, 2010</u>**

**I.** This Code of Ethics (the "Code") for the investment companies within the Morgan Stanley complex
identified in Exhibit A (collectively, "Funds" and each, a "Fund") applies to each Fund's Principal
Executive Officer, President, Principal Financial Officer and Treasurer (or persons performing similar functions) ("Covered Officers"
each of whom are set forth in Exhibit B) for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest
between personal and professional relationships.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· full, fair, accurate, timely and understandable disclosure in reports and documents that a company files
with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· compliance with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· prompt internal reporting of violations of the Code to an appropriate person or persons identified in
the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. Any question about the application of the Code should be referred to the General Counsel or his/her designee (who is set forth in Exhibit C).

**II.** **Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest** 

***Overview***. A "conflict of interest" occurs when a Covered Officer's private interest interferes, or appears to interfere, with the interests of, or his service to, the Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fund.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as "affiliated persons" (as defined in the Investment Company Act) of the Fund. The Fund's and its investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside the parameters of this Code, unless or until the General Counsel determines that any violation of such programs and procedures is also a violation of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between the Fund and its investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fund or for the investment adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Fund and its investment adviser. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the investment adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Boards of Directors/Trustees ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund.

Each Covered Officer must not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· use his personal influence or personal relationships improperly to influence investment decisions or financial
reporting by the Fund whereby the Covered Officer would benefit personally (directly or indirectly);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered
Officer rather than the benefit of the Fund; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· use material non-public knowledge of portfolio transactions made or contemplated for, or actions proposed
to be taken by, the Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

Each Covered Officer must, at the time of signing this Code, report to the General Counsel all affiliations or significant business relationships outside the Morgan Stanley complex and must update the report annually.

Conflict of interest situations should always be approved by the General Counsel and communicated to the relevant Fund or Fund's Board. Any activity or relationship that would present such a conflict for a Covered Officer would likely also present a conflict for the Covered Officer if an immediate member of the Covered Officer's family living in the same household engages in such an activity or has such a relationship. Examples of these include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· service or significant business relationships as a director on the board of any public or private company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· accepting directly or indirectly, anything of value, including gifts and gratuities in excess of $100 per year from any person or
entity with which the Fund has current or prospective business dealings, not including occasional meals or tickets for theatre or sporting
events or other similar entertainment; provided it is business-related, reasonable in cost, appropriate as to time and place, and not
so frequent as to raise any question of impropriety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any ownership interest in, or any consulting or employment relationship with, any of the Fund's
service providers, other than its investment adviser, principal underwriter, or any affiliated person thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund
for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's
employment, such as compensation or equity ownership.

**III.** **Disclosure and Compliance** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Each Covered Officer should familiarize himself/herself with the disclosure and compliance requirements
generally applicable to the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· each Covered Officer must not knowingly misrepresent, or cause others to misrepresent, facts about the
Fund to others, whether within or outside the Fund, including to the Fund's Directors/Trustees and auditors, or to governmental
regulators and self-regulatory organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· each Covered Officer should, to the extent appropriate within his area of responsibility, consult with
other officers and employees of the Funds and their investment advisers with the goal of promoting full, fair, accurate, timely and understandable
disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions
imposed by applicable laws, rules and regulations.

**IV.** **Reporting and Accountability** 

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· upon adoption of the Code (thereafter as applicable, upon becoming a Covered Officer), affirm in writing
to the Boards that he has received, read and understands the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· annually thereafter affirm to the Boards that he has complied with the requirements of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· not retaliate against any other Covered Officer, other officer or any employee of the Funds or their affiliated
persons for reports of potential violations that are made in good faith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· notify the General Counsel promptly if he/she knows or suspects of any violation of this Code. Failure
to do so is itself a violation of this Code.

The General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any waivers<sup>1</sup> sought by a Covered Officer must be considered by the Board of the relevant Fund or Funds.

The Funds will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the General Counsel will take all appropriate action to investigate any potential violations reported
to him;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· if, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to
take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any matter that the General Counsel believes is a violation will be reported to the relevant Fund's Audit
Committee;

<sup>1</sup> Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· if the directors/trustees/managing general partners who are not "interested persons" as defined by the Investment Company
Act (the "Independent Directors/Trustees/Managing General Partners") of the relevant Fund concur that a violation has occurred,
they will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures;
notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer or other
appropriate disciplinary actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Independent Directors/Trustees/Managing General Partners of the relevant Fund will be responsible
for granting waivers of this Code, as appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

**V.** **Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' investment advisers, principal underwriters, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code unless any provision of this Code conflicts with any applicable federal or state law, in which case the requirements of such law will govern. The Funds' and their investment advisers' and principal underwriters' codes of ethics under Rule 17j-1 under the Investment Company Act and Morgan Stanley's Code of Ethics are separate requirements applying to the Covered Officers and others, and are not part of this Code.

**VI.** **Amendments** 

Any amendments to this Code, other than amendments to Exhibits A, B or C, must be approved or ratified by a majority vote of the Board of each Fund, including a majority of Independent Directors/Trustees/Managing General Partners.

**VII.** **Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Independent Directors/Trustees/Managing General Partners of the relevant Fund or Funds and their counsel, the relevant Fund or Funds and their counsel and the relevant investment adviser and its counsel.

**VIII.** **Internal Use** 

The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion

I have read and understand the terms of the above Code. I recognize the responsibilities and obligations incurred by me as a result of my being subject to the Code. I hereby agree to abide by the above Code.

Date:

<u>EXHIBIT A</u>

**MORGAN STANLEY FUNDS**

at

**December 31, 2022**

For a current list of the Morgan Stanley Funds, please contact the Legal Department.

**<u>EXHIBIT B</u>**

**<u>Equity and Fixed Income Funds</u>**

**<u>Money Market Funds</u>**

**<u>Covered Officers</u>**

John H. Gernon –President and Principal Executive Officer

Francis J. Smith – Principal Financial Officer and Treasurer

**<u>EXHIBIT C</u>**

**<u>General Counsel's Designee - Chief Legal Officer</u>**

**Mary E. Mullin**

## Ex-99.Cert

**Exhibit 99.CERT**

**EXHIBIT 13 B1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**<u>CERTIFICATIONS</u>**

I, John H. Gernon, certify that:

1. I have reviewed this report on Form N-CSR of Morgan Stanley Institutional Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report
based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of
the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information;
and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal controls over financial reporting.

Date: February 16, 2023

---

| |
|:---|
| /s/ John H. Gernon |
| John H. Gernon |
| Principal Executive Officer |

---

**EXHIBIT 13 B2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**<u>CERTIFICATIONS</u>**

I, Francis J. Smith, certify that:

1. I have reviewed this report on Form N-CSR of Morgan Stanley Institutional Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report
based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

5. The registrant's other certifying offices and I have disclosed to the registrant's auditors and the audit committee of
the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information;
and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal controls over financial reporting.

Date: February 16, 2023

---

| |
|:---|
| /s/ Francis J. Smith |
| Francis J. Smith |
| Principal Financial Officer |

---

## Exhibit 99.906

**Exhibit 99.906CERT**

EXHIBIT 13 C1

**SECTION 906 CERTIFICATION**

Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Morgan Stanley Institutional Fund, Inc.

In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended December 31, 2022 that is accompanied by this certification, the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Issuer.

---

| | |
|:---|:---|
| Date: February 16, 2023 | /s/ John H. Gernon |
|  | John H. Gernon |
|  | Principal Executive Officer |

---

A signed original of this written statement required by Section 906 has been provided to Morgan Stanley Institutional Fund, Inc. and will be retained by Morgan Stanley Institutional Fund, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EXHIBIT 13 C2

**SECTION 906 CERTIFICATION**

Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Morgan Stanley Institutional Fund, Inc.

In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended December 31, 2022 that is accompanied by this certification, the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Issuer.

---

| | |
|:---|:---|
| Date: February 16, 2023 | /s/ Francis J. Smith |
|  | Francis J. Smith |
|  | Principal Financial Officer |

---

A signed original of this written statement required by Section 906 has been provided to Morgan Stanley Institutional Fund, Inc. and will be retained by Morgan Stanley Institutional Fund, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.