Morgan Stanley Variable Insurance Fund NCSRS Certified semi-annual shareholder report (management investment company)

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			811-07607

Morgan Stanley Variable Insurance Fund, Inc.
(Exact name of registrant as specified in charter)

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

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

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

Date of fiscal year end:	December 31,

Date of reporting period:		June 30, 2020

Item 1 - Report to Shareholders

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Core Plus Fixed Income Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		14
Statement of Operations		15
Statements of Changes in Net Assets		16
Financial Highlights		17
Notes to Financial Statements		19
Investment Advisory Agreement Approval		30
Liquidity Risk Management Program		32
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

Core Plus Fixed Income Portfolio

As a shareholder of the Core Plus Fixed Income Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 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 insurance company charges. Therefore, the table below is useful in comparing ongoing costs, but will not help you determine the relative total cost of owning different funds. In addition, if these insurance company charges were included, your costs would have been higher.

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Core Plus Fixed Income Portfolio Class I	$	1,000.00	$	1,038.00	$	1,021.48	$	3.45	$	3.42		0.68	%
Core Plus Fixed Income Portfolio Class II		1,000.00		1,036.40		1,020.24		4.71		4.67		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 182/366 (to reflect the most recent one-half year period).

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (97.1%)
Agency Adjustable Rate Mortgages (0.1%)
Federal Home Loan Mortgage Corporation, Conventional Pools: 12 Month USD LIBOR + 1.62%, 2.83%, 7/1/45		$150		$155
Federal National Mortgage Association, Conventional Pool:
12 Month USD LIBOR + 1.59%, 2.42%, 12/1/45		53		55
				210
Agency Fixed Rate Mortgages (16.6%)
Federal Home Loan Mortgage Corporation, Gold Pools: 3.50%, 1/1/44		595		644
4.00%, 12/1/41 - 10/1/44		741		806
5.41%, 7/1/37 - 8/1/37		20		22
5.44%, 1/1/37 - 6/1/38		50		55
5.46%, 5/1/37 - 1/1/38		53		57
5.48%, 8/1/37 - 10/1/37		47		52
5.50%, 8/1/37 - 4/1/38		72		81
5.52%, 10/1/37		5		6
5.62%, 12/1/36 - 8/1/37		60		66
6.00%, 8/1/37 - 5/1/38		18		20
6.50%, 9/1/32		11		12
7.50%, 5/1/35		29		35
8.00%, 8/1/32		19		22
8.50%, 8/1/31		23		29
Federal National Mortgage Association, Conventional Pools: 2.50%, 2/1/50		408		425
3.00%, 7/1/49		297		308
3.50%, 7/1/46 - 7/1/49		2,249		2,400
4.00%, 11/1/41 - 8/1/49		1,833		1,971
4.50%, 8/1/40 - 9/1/48		1,431		1,580
5.00%, 7/1/40		89		103
5.62%, 12/1/36		31		34
6.00%, 12/1/38		427		497
6.50%, 11/1/27 - 10/1/38		21		25
7.00%, 6/1/29		6		7
7.50%, 8/1/37		49		60
8.00%, 4/1/33		39		48
8.50%, 10/1/32		39		48
9.50%, 4/1/30		4		4
July TBA: 2.50%, 7/1/50 (a)		5,300		5,526
3.00%, 7/1/35 - 7/1/50 (a)		3,400		3,579
3.50%, 7/1/50 (a)		8,000		8,415
Government National Mortgage Association, Various Pools: 3.50%, 11/20/40 - 7/20/46		506		539
4.00%, 7/15/44 - 5/20/49		1,451		1,547
5.00%, 12/20/48 - 2/20/49		125		135
				29,158

	Face Amount (000)		Value (000)
Asset-Backed Securities (11.4%)
Aaset Trust, 3.84%, 5/15/39 (b)	$	222	$	203
Accredited Mortgage Loan Trust, 1 Month USD LIBOR + 0.60%, 0.78%, 4/25/34 (c)		493		481
American Homes 4 Rent Trust, 6.07%, 10/17/52 (b)		490		551
AMSR 2019-SFR1 Trust, 2.77%, 1/19/39 (b)		600		641
Aqua Finance Trust, 3.47%, 7/16/40 (b)		300		272
Avant Loans Funding Trust, 4.65%, 4/15/26 (b)		400		380
5.00%, 11/17/25 (b)		150		149
Blackbird Capital Aircraft Lease Securitization Ltd., 5.68%, 12/16/41 (b)		401		252
Cascade Funding Mortgage Trust, 5.60%, 4/25/30 (b)(c)		200		205
7.30%, 4/25/30 (b)(c)		400		410
Cascade MH Asset Trust, 4.00%, 11/25/44 (b)(c)		384		381
CFMT 2020-HB3 LLC, 6.28%, 5/25/30 (b)(c)		250		254
Conn's Receivables Funding LLC, 3.62%, 6/17/24 (b)		250		241
Fair Square Issuance Trust, 2.90%, 9/20/24 (b)		200		200
Fairstone Financial Issuance Trust I, 3.95%, 3/21/33 (b)	CAD	250		181
Falcon Aerospace Ltd., 3.60%, 9/15/39 (b)	$	283		256
Foundation Finance Trust, 3.86%, 11/15/34 (b)		267		270
FREED ABS Trust, 3.87%, 6/18/26 (b)		350		348
4.52%, 6/18/27 (b)		281		284
4.61%, 10/20/25 (b)		520		516
GAIA Aviation Ltd., 7.00%, 12/15/44 (b)		341		142
JOL Air Ltd., 4.95%, 4/15/44 (b)		227		137
Lunar Aircraft Ltd., 3.38%, 2/15/45 (b)		243		226
MACH 1 Cayman Ltd., 3.47%, 10/15/39 (b)		332		279
METAL LLC, 4.58%, 10/15/42 (b)		368		274
MFA LLC, 3.35%, 11/25/47 (b)		398		399
4.16%, 7/25/48 (b)		364		364
Mosaic Solar Loan Trust, 2.10%, 4/20/46 (b)		250		252
Nationstar HECM Loan Trust, 5.43%, 11/25/28 (b)(c)		600		649

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
NovaStar Mortgage Funding Trust, 1 Month USD LIBOR + 1.06%, 1.24%, 12/25/33 (c)	$	328	$	318
NRZ Excess Spread-Collateralized Notes, 4.37%, 1/25/23 (b)		257		251
4.59%, 2/25/23 (b)		351		355
5.44%, 6/25/25		600		600
Oxford Finance Funding LLC, 3.10%, 2/15/28 (b)		250		254
5.44%, 2/15/27 (b)		300		278
PNMAC GMSR Issuer Trust, 1 Month USD LIBOR + 2.85%, 3.03%, 2/25/23 (b)(c)		300		296
Pretium Mortgage Credit Partners I 2020-NPL2 LLC, 3.72%, 2/27/60 (b)		399		400
Pretium Mortgage Credit Partners I LLC, 2.86%, 5/27/59 (b)		517		514
Prosper Marketplace Issuance Trust, 5.50%, 10/15/24 (b)		646		624
PRPM LLC, 3.35%, 11/25/24 (b)		235		236
Raptor Aircraft Finance I LLC, 4.21%, 8/23/44 (b)		618		515
S-Jets Ltd., 7.02%, 8/15/42 (b)		655		274
SFS Asset Securitization LLC, 4.24%, 6/10/25 (b)		509		509
SLM Student Loan Trust, 3 Month EURIBOR + 0.55%, 0.39%, 7/25/39 - 1/25/40 (c)	EUR	1,100		1,130
Small Business Lending Trust, 2.85%, 7/15/26 (b)	$	132		128
Sprite Ltd., 4.25%, 12/15/37 (b)		228		191
START Ireland, 4.09%, 3/15/44 (b)		165		148
Tricon American Homes Trust, 5.10%, 1/17/36 (b)		400		409
5.15%, 9/17/34 (b)		400		408
5.77%, 11/17/33 (b)		460		457
Upstart Securitization Trust, 3.09%, 4/22/30 (b)		580		546
3.73%, 9/20/29 (b)		550		535
Vantage Data Centers Issuer LLC, 4.07%, 2/16/43 (b)		195		201
VOLT LXIV LLC, 3.38%, 10/25/47 (b)		185		185
VOLT LXXXV LLC, 3.23%, 1/25/50 (b)		596		593
VOLT LXXXVIII LLC, 2.98%, 3/25/50 (b)		473		469
				20,021

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (0.7%)
Federal Home Loan Mortgage Corporation, 1 Month USD LIBOR + 4.35%, 4.53%, 12/25/26 (b)(c)	$	74	$	73
1 Month USD LIBOR + 5.05%, 5.23%, 7/25/23 (c)		92		89
1 Month USD LIBOR + 5.25%, 5.43%, 7/25/26 (b)(c)		43		43
IO 0.46%, 11/25/27 (c)		13,389		301
0.57%, 8/25/27 (c)		8,299		229
IO REMIC 6.00% - 1 Month USD LIBOR, 5.82%, 11/15/43 - 6/15/44 (d)		1,796		304
6.05% - 1 Month USD LIBOR, 5.87%, 4/15/39 (d)		250		7
IO STRIPS 7.50%, 12/15/29		3		1
Federal National Mortgage Association, IO 6.39% - 1 Month USD LIBOR, 6.22%, 9/25/20 (d)		274		1
IO REMIC 6.00%, 5/25/33 - 7/25/33		165		32
IO STRIPS 8.00%, 4/25/24		1		—	@
8.00%, 6/25/35 (c)		10		2
9.00%, 11/25/26		1		—	@
REMIC 7.00%, 9/25/32		27		33
Government National Mortgage Association, IO 0.73%, 8/20/58 (c)		3,815		90
5.00%, 2/16/41		80		15
IO PAC 6.15% - 1 Month USD LIBOR , 5.96%, 10/20/41 (d)		795		54
				1,274
Commercial Mortgage-Backed Securities (6.2%)
Bancorp Commercial Mortgage Trust, 1 Month USD LIBOR + 2.30%, 2.48%, 9/15/36 (b)(c)		450		399
BANK 2019-BNK21, IO 1.00%, 10/17/52 (c)		3,993		247
Barclays Commercial Mortgage Trust, IO 1.51%, 5/15/52 (c)		3,991		309
BF 2019-NYT Mortgage Trust, 1 Month USD LIBOR + 1.70%, 1.88%, 12/15/35 (b)(c)		600		568
BXP Trust, 1 Month USD LIBOR + 3.00%, 3.18%, 11/15/34 (b)(c)		650		534

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
Citigroup Commercial Mortgage Trust, 3.62%, 12/10/41 (b)	$	300	$	222
IO 0.99%, 11/10/48 (c)		2,651		75
1.04%, 9/10/58 (c)		4,530		170
COMM Mortgage Trust, IO
0.14%, 7/10/45 (c)		9,999		23
0.92%, 10/10/47 (c)		2,995		75
1.15%, 7/15/47 (c)		2,790		89
CSWF 2018-TOP, 1 Month USD LIBOR + 1.45%, 1.63%, 8/15/35 (b)(c)		480		451
GS Mortgage Securities Trust, 4.90%, 8/10/46 (b)(c)		500		384
IO 0.87%, 9/10/47 (c)		4,663		111
1.42%, 10/10/48 (c)		4,861		246
HMH Trust, 6.29%, 7/5/31 (b)		300		274
InTown Hotel Portfolio Trust, 1 Month USD LIBOR + 2.05%, 2.23%, 1/15/33 (b)(c)		346		322
Jackson Park Trust LIC, 3.24%, 10/14/39 (b)(c)		400		383
JP Morgan Chase Commercial Mortgage Securities Trust, IO 0.65%, 4/15/46 (c)		6,000		84
0.82%, 12/15/49 (c)		2,921		83
1.09%, 7/15/47 (c)		6,553		133
JPMBB Commercial Mortgage Securities Trust, IO 1.16%, 8/15/47 (c)		3,596		114
MFT Trust, 3.48%, 2/6/30 (b)(c)		200		180
MKT 2020-525M Mortgage Trust, 2.94%, 2/12/40 (b)(c)		200		176
Multifamily Connecticut Avenue Securities Trust, 1 Month USD LIBOR + 1.95%, 2.13%, 3/25/50 (b)(c)		699		670
Natixis Commercial Mortgage Securities Trust, 1 Month USD LIBOR + 2.20%, 2.38%, 7/15/36 (b)(c)		500		477
4.27%, 5/15/39 (b)(c)		450		451
4.46%, 1/15/43 (b)(c)		200		170
4.56%, 2/15/39 (b)(c)		807		791
Olympic Tower 2017-OT Mortgage Trust, 3.57%, 5/10/39 (b)		600		646
SG Commercial Mortgage Securities Trust, 3.85%, 3/15/37 (b)(c)		450		406
4.66%, 2/15/41 (b)(c)		550		478
VMC Finance LLC, 1 Month USD LIBOR + 2.05%, 2.24%, 9/15/36 (b)(c)		481		425

	Face Amount (000)		Value (000)
Wells Fargo Commercial Mortgage Trust, 1 Month USD LIBOR + 1.74%, 1.92%, 2/15/37 (b)(c)	$	250	$	220
1 Month USD LIBOR + 2.21%, 2.39%, 1/15/35 (b)(c)		200		184
WFRBS Commercial Mortgage Trust, 4.28%, 5/15/45 (b)(c)		385		347
				10,917
Corporate Bonds (38.6%)
Energy (0.4%)
BP Capital Markets America, Inc. 3.12%, 5/4/26		375		410
Midwest Connector Capital Co. LLC 3.63%, 4/1/22 (b)		175		179
Petrobras Global Finance BV 6.75%, 6/3/50		150		155
				744
Finance (16.5%)
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.13%, 7/3/23		575		563
Air Lease Corp. 2.30%, 2/1/25		325		311
American International Group, Inc. 4.50%, 7/16/44		150		175
AvalonBay Communities, Inc., Series G
2.95%, 5/11/26		175		190
Avolon Holdings Funding Ltd. 2.88%, 2/15/25 (b)		475		399
Banco Bradesco SA 3.20%, 1/27/25 (b)		700		690
Banco Santander Chile 2.70%, 1/10/25 (b)		300		309
Bank of America Corp., 2.68%, 6/19/41		275		284
4.24%, 4/24/38		225		274
MTN 4.00%, 1/22/25		1,085		1,199
Bank of Montreal 3.80%, 12/15/32		450		485
BBVA USA 3.50%, 6/11/21		425		434
BNP Paribas SA 4.40%, 8/14/28 (b)		300		346
Boston Properties LP 3.80%, 2/1/24		145		157
BPCE SA 5.15%, 7/21/24 (b)		550		614
Brighthouse Financial, Inc. 4.70%, 6/22/47		35		32
Brookfield Finance LLC 3.45%, 4/15/50		250		240
Brookfield Finance, Inc. 4.00%, 4/1/24		525		570
Brown & Brown, Inc. 4.20%, 9/15/24		275		298

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Canadian Imperial Bank of Commerce 2.25%, 1/28/25	$	600	$	627
Capital One Bank USA NA 3.38%, 2/15/23		510		537
Capital One Financial Corp. 3.30%, 10/30/24		725		781
Citigroup, Inc., 2.57%, 6/3/31		700		725
4.45%, 9/29/27		175		200
5.50%, 9/13/25		250		297
CNO Financial Group, Inc. 5.25%, 5/30/29		170		183
Cooperatieve Rabobank UA 3.95%, 11/9/22		625		662
Credit Agricole SA 3.75%, 4/24/23 (b)		400		428
Credit Suisse Group AG 2.59%, 9/11/25 (b)		700		724
CyrusOne LP/CyrusOne Finance Corp. 2.90%, 11/15/24		175		184
Danske Bank A/S 5.00%, 1/12/23 (b)		200		210
Deutsche Bank AG, 2.70%, 7/13/20		425		425
3.95%, 2/27/23		425		442
GE Capital International Funding Co., Unlimited Co. 4.42%, 11/15/35		350		356
GLP Capital LP/GLP Financing II, Inc. 3.35%, 9/1/24		300		301
Goldman Sachs Group, Inc. (The), 3.69%, 6/5/28		175		196
6.75%, 10/1/37		285		415
MTN 4.80%, 7/8/44		175		229
Grupo Aval Ltd. 4.38%, 2/4/30 (b)		200		190
Guardian Life Insurance Co. of America (The) 4.85%, 1/24/77 (b)		175		224
HSBC Holdings PLC 4.25%, 3/14/24		750		810
HSBC USA, Inc. 3.50%, 6/23/24		250		273
Intesa Sanpaolo SpA 5.25%, 1/12/24		300		324
iStar, Inc. 5.25%, 9/15/22		175		170
Itau Unibanco Holding SA 2.90%, 1/24/23 (b)		800		792
Jefferies Finance LLC/JFIN Co-Issuer Corp. 6.25%, 6/3/26 (b)		300		283
JPMorgan Chase & Co., 3.70%, 5/6/30		625		718
4.13%, 12/15/26		550		641
JPMorgan Chase Bank NA 0.00%, 8/7/22		200		246

	Face Amount (000)		Value (000)
Lloyds Banking Group PLC 4.38%, 3/22/28	$	525	$	610
Macquarie Bank Ltd. 2.30%, 1/22/25 (b)		450		472
Marsh & McLennan Cos., Inc. 2.25%, 11/15/30		350		364
MassMutual Global Funding II 3.40%, 3/8/26 (b)		400		449
Metropolitan Life Global Funding I 2.95%, 4/9/30 (b)		150		165
MPT Operating Partnership LP/ MPT Finance Corp. 5.00%, 10/15/27		175		180
Nationwide Building Society, 4.30%, 3/8/29 (b)		375		426
4.36%, 8/1/24 (b)		200		217
Pine Street Trust I 4.57%, 2/15/29 (b)		250		286
Progressive Corp. (The), 3.20%, 3/26/30		150		171
4.00%, 3/1/29		100		120
Realty Income Corp. 3.25%, 10/15/22		350		367
Royal Bank of Scotland Group PLC 3.88%, 9/12/23		250		270
Santander UK Group Holdings PLC 3.57%, 1/10/23		900		934
Service Properties Trust 4.35%, 10/1/24		365		329
Societe Generale SA 2.63%, 1/22/25 (b)		425		434
Standard Chartered PLC, 3.05%, 1/15/21 (b)		375		380
4.64%, 4/1/31 (b)		200		227
Syngenta Finance N.V. 4.89%, 4/24/25 (b)		550		579
TD Ameritrade Holding Corp. 3.63%, 4/1/25		475		531
Travelers Cos., Inc. (The) 3.75%, 5/15/46		200		236
WEA Finance LLC/Westfield UK & Europe Finance PLC 3.25%, 10/5/20 (b)		450		451
Wells Fargo & Co., 2.57%, 2/11/31		175		183
2.88%, 10/30/30		225		241
5.01%, 4/4/51		225		314
				29,099
Industrials (19.0%)
AbbVie, Inc. 3.20%, 11/21/29 (b)		450		497
Adobe, Inc. 2.30%, 2/1/30		325		351
Airbus SE 0.00%, 6/14/21	EUR	300		334
Akamai Technologies, Inc. 0.38%, 9/1/27 (b)	$	181		197

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Albertsons Cos., Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC 3.50%, 2/15/23 (b)	$	175	$	177
Amazon.com, Inc., 2.50%, 6/3/50		225		232
4.25%, 8/22/57		100		134
American Airlines Pass-Through Trust, Series AA 3.15%, 8/15/33		197		182
Amgen, Inc., 2.30%, 2/25/31		300		315
4.66%, 6/15/51		150		200
Anheuser-Busch InBev Worldwide, Inc., 4.75%, 1/23/29		400		484
5.55%, 1/23/49		350		467
Anthem, Inc. 3.65%, 12/1/27		200		228
Apple, Inc. 2.95%, 9/11/49		250		273
AT&T, Inc., 3.85%, 6/1/60		225		241
4.30%, 2/15/30		475		557
4.90%, 8/15/37		175		211
BAT Capital Corp. 3.56%, 8/15/27		550		593
Boeing Co. (The), 3.95%, 8/1/59		250		220
5.15%, 5/1/30		325		363
Booking Holdings, Inc. 0.90%, 9/15/21		105		112
BP Capital Markets PLC, 4.38%, 12/31/99 (e)		150		153
4.88%, 12/31/99 (e)		150		155
Braskem Netherlands Finance BV 4.50%, 1/31/30 (b)		310		284
Bristol-Myers Squibb Co. 3.40%, 7/26/29 (b)		550		641
Campbell Soup Co. 3.13%, 4/24/50		300		307
Canadian National Railway Co. 2.45%, 5/1/50		200		194
Charter Communications Operating LLC/ Charter Communications Operating Capital 2.80%, 4/1/31		250		254
Cigna Corp. 3.05%, 10/15/27 (b)		175		191
CNH Industrial Capital LLC 4.38%, 11/6/20		300		303
CNOOC Finance 2013 Ltd. 3.00%, 5/9/23		220		230
Coca-Cola Femsa SAB de CV 2.75%, 1/22/30		400		424
Comcast Corp., 1.95%, 1/15/31		150		152
4.05%, 11/1/52		300		369
4.25%, 1/15/33		200		246

	Face Amount (000)		Value (000)
Concho Resources, Inc. 4.85%, 8/15/48	$	150	$	170
Crown Castle International Corp. 3.30%, 7/1/30		250		276
CVS Health Corp., 3.75%, 4/1/30		523		604
5.05%, 3/25/48		200		262
5.13%, 7/20/45		75		97
Deere & Co. 3.10%, 4/15/30		125		142
Dell International LLC/EMC Corp., 4.90%, 10/1/26 (b)		200		221
6.02%, 6/15/26 (b)		175		201
Delta Air Lines, Inc., Series AA
3.20%, 10/25/25		250		251
Diageo Capital PLC 2.13%, 10/24/24		450		474
Diamond Sports Group LLC/Diamond Sports Finance Co. 6.63%, 8/15/27 (b)		250		134
Diamondback Energy, Inc. 3.25%, 12/1/26		425		428
Dollar Tree, Inc. 3.70%, 5/15/23		250		268
DuPont de Nemours, Inc. 5.42%, 11/15/48		75		99
Enbridge, Inc. 2.50%, 1/15/25		250		260
Energy Transfer Operating LP 2.90%, 5/15/25		250		256
Expedia Group, Inc. 3.25%, 2/15/30		100		93
Exxon Mobil Corp. 3.10%, 8/16/49		325		339
Ford Motor Credit Co., LLC, 3.10%, 5/4/23		200		190
4.39%, 1/8/26		200		191
Fortune Brands Home & Security, Inc. 4.00%, 9/21/23		350		382
Fox Corp. 5.58%, 1/25/49		200		279
General Motors Co. 6.60%, 4/1/36		125		135
General Motors Financial Co., Inc., 3.85%, 1/5/28		150		149
4.35%, 1/17/27		375		389
Georgia-Pacific LLC 2.30%, 4/30/30 (b)		325		339
Glencore Funding LLC 4.13%, 3/12/24 (b)		450		483
Grifols SA 2.25%, 11/15/27 (b)	EUR	200		222
HCA, Inc., 5.25%, 6/15/49	$	125		150
5.50%, 6/15/47		175		214
Heathrow Funding Ltd. 4.88%, 7/15/23 (b)		435		447

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Imperial Brands Finance PLC 3.13%, 7/26/24 (b)	$	350	$	364
Intel Corp. 3.90%, 3/25/30		400		484
Johns Hopkins University, Series A
2.81%, 1/1/60		270		286
Kimberly-Clark de Mexico SAB de CV 2.43%, 7/1/31 (b)(f)		300		303
Las Vegas Sands Corp., 3.20%, 8/8/24		175		175
3.50%, 8/18/26		150		150
Level 3 Financing, Inc. 3.40%, 3/1/27 (b)		325		344
Lowe's Cos., Inc. 3.65%, 4/5/29		350		402
LYB International Finance III LLC 4.20%, 10/15/49		175		189
Newcastle Coal Infrastructure Group Pty Ltd. 4.40%, 9/29/27 (b)		475		459
Newmont Corp. 3.70%, 3/15/23		58		60
NIKE, Inc. 2.85%, 3/27/30		300		334
Nuance Communications, Inc. 1.00%, 12/15/35		179		212
Nucor Corp. 2.70%, 6/1/30		250		263
Nvent Finance Sarl
3.95%, 4/15/23		450		471
NVIDIA Corp. 2.85%, 4/1/30		300		334
Occidental Petroleum Corp., 3.20%, 8/15/26		45		37
5.55%, 3/15/26		325		297
Omnicom Group, Inc. 2.45%, 4/30/30		275		281
Palo Alto Networks, Inc. 0.75%, 7/1/23		159		170
Procter & Gamble Co. (The) 3.00%, 3/25/30		250		287
Resort at Summerlin LP, Series B 13.00%, 12/15/07 (g)(h)(i)(j)(k)		299		—
Resorts World Las Vegas LLC/RWLV Capital, Inc. 4.63%, 4/16/29 (b)		400		393
Rockies Express Pipeline LLC 3.60%, 5/15/25 (b)		475		440
Sherwin-Williams Co. (The) 2.30%, 5/15/30		450		460
Siemens Financieringsmaatschappij N.V. 2.35%, 10/15/26 (b)		525		563
Sika AG 0.15%, 6/5/25	CHF	120		149
Splunk, Inc. 0.50%, 9/15/23	$	158		228

	Face Amount (000)		Value (000)
Sprint Spectrum Co., LLC/Sprint Spectrum Co., II LLC/Sprint Spectrum Co., III LLC 3.36%, 3/20/23 (b)	$	332	$	336
Standard Industries, Inc. 2.25%, 11/21/26 (b)	EUR	125		133
Starbucks Corp. 3.80%, 8/15/25	$	450		508
Sunoco Logistics Partners Operations LP 3.90%, 7/15/26		200		210
T-Mobile USA, Inc. 3.88%, 4/15/30 (b)		350		390
Target Corp. 2.65%, 9/15/30		125		138
Telefonica Emisiones SA 4.10%, 3/8/27		550		628
Teva Pharmaceutical Finance Netherlands III BV 2.20%, 7/21/21		46		45
Trimble, Inc. 4.15%, 6/15/23		625		667
Twitter, Inc. 1.00%, 9/15/21		344		338
United Technologies Corp. 4.50%, 6/1/42		150		187
Upjohn, Inc. 2.70%, 6/22/30 (b)		325		334
Verint Systems, Inc. 1.50%, 6/1/21		200		199
Verizon Communications, Inc. 4.67%, 3/15/55		418		569
Volkswagen Group of America Finance LLC 4.75%, 11/13/28 (b)		275		325
VTR Finance 6.38%, 7/15/28 (b)(f)		200		206
Walmart, Inc. 2.95%, 9/24/49		100		113
Walt Disney Co. (The) 3.60%, 1/13/51		550		616
Weibo Corp. 1.25%, 11/15/22		132		123
Western Midstream Operating LP 3.10%, 2/1/25		300		285
Williams Cos., Inc. (The) 4.85%, 3/1/48		350		383
				33,284
Utilities (2.7%)
Boston Gas Co. 3.00%, 8/1/29 (b)		225		243
Calpine Corp. 4.50%, 2/15/28 (b)		350		342
DTE Energy Co. 2.95%, 3/1/30		225		235
Duke Energy Indiana LLC, Series YYY
3.25%, 10/1/49		150		166

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Utilities (cont'd)
Enel Finance International N.V. 3.63%, 5/25/27 (b)	$	275	$	301
Entergy Louisiana LLC 3.05%, 6/1/31		175		195
FirstEnergy Corp., Series C 3.40%, 3/1/50		250		266
Korea Hydro & Nuclear Power Co., Ltd. 3.75%, 7/25/23 (b)		710		770
Mississippi Power Co. 3.95%, 3/30/28		500		569
Northern States Power Co. 2.90%, 3/1/50		250		272
Oglethorpe Power Corp. 5.05%, 10/1/48		250		284
ONEOK, Inc. 3.10%, 3/15/30		375		359
Pacific Gas and Electric Co., 2.10%, 8/1/27		175		174
3.50%, 8/1/50		250		242
Xcel Energy, Inc. 2.60%, 12/1/29		325		350
				4,768
				67,895
Mortgages — Other (14.6%)
Alternative Loan Trust, 1 Month USD LIBOR + 0.18%, 0.36%, 5/25/47 (c)		119		104
5.50%, 2/25/36		7		6
6.00%, 7/25/37		53		45
PAC 5.50%, 2/25/36		3		3
6.00%, 4/25/36		15		11
Banc of America Alternative Loan Trust, 1 Month USD LIBOR + 0.65%, 0.83%, 7/25/46 (c)		149		108
5.86%, 10/25/36		311		141
6.00%, 4/25/36		9		9
Banc of America Funding Trust, 5.25%, 7/25/37		89		88
6.00%, 7/25/37		18		17
Bunker Hill Loan Depositary Trust, 1.72%, 2/25/55		600		600
ChaseFlex Trust, 6.00%, 2/25/37		354		223
Classic RMBS Trust, 3.06%, 8/16/49 (b)	CAD	728		539
CSFB Mortgage-Backed Pass-Through Certificates, 6.50%, 11/25/35	$	749		238
Eurosail BV, 3 Month EURIBOR + 1.80%, 1.55%, 10/17/40 (c)	EUR	300		329
Eurosail PLC, 3 Month GBP LIBOR + 0.95%, 1.14%, 6/13/45 (c)	GBP	440		536

	Face Amount (000)		Value (000)
Farringdon Mortgages No. 2 PLC, 3 Month GBP LIBOR + 1.50%, 2.17%, 7/15/47 (c)	GBP	209	$	254
Federal Home Loan Mortgage Corporation, 1 Month USD LIBOR + 2.35%, 2.53%, 4/25/30 (c)	$	519		522
3.00%, 9/25/45 - 5/25/47		2,161		2,207
3.50%, 5/25/45 - 5/25/47		1,379		1,434
3.88%, 5/25/45 (b)(c)		64		63
4.00%, 5/25/45		58		61
Grifonas Finance PLC, 6 Month EURIBOR + 0.28%, 0.00%, 8/28/39 (c)	EUR	353		372
GSR Mortgage Loan Trust, 5.75%, 1/25/37	$	135		122
HarborView Mortgage Loan Trust, 1 Month USD LIBOR + 0.19%, 0.38%, 1/19/38 (c)		307		272
Headlands Residential LLC, 3.97%, 6/25/24 (b)		150		150
IM Pastor 3 FTH, 3 Month EURIBOR + 0.14%, 0.00%, 3/22/43 (c)	EUR	403		404
JP Morgan Alternative Loan Trust, 6.00%, 12/25/35	$	52		48
JP Morgan Mortgage Trust, 3.81%, 6/25/37 (c)		49		43
6.00%, 6/25/37		33		34
L1C 2020-1 LLC, 5.29%, 8/25/51 (b)		400		400
Landmark Mortgage Securities No. 1 PLC, 3 Month EURIBOR + 0.60%, 0.25%, 6/17/38 (c)	EUR	384		401
Legacy Mortgage Asset Trust, 3.25%, 2/25/60 (b)	$	596		600
Lehman Mortgage Trust, 6.50%, 9/25/37		702		370
LHOME Mortgage Trust, 3.23%, 10/25/24 (b)		170		171
4.58%, 10/25/23 (b)		400		400
New Residential Mortgage Loan Trust, 4.00%, 9/25/57 (b)		363		382
NRPL Trust, 4.25%, 7/25/67 (b)		497		510
OBX 2020-EXP1 Trust, 3.50%, 2/25/60 (b)		258		266
Paragon Mortgages No. 13 PLC, 3 Month GBP LIBOR + 0.40%, 1.07%, 1/15/39 (c)	GBP	270		308
Paragon Mortgages No. 15 PLC, 3 Month EURIBOR + 0.54%, 0.18%, 12/15/39 (c)	EUR	500		488
PRPM LLC, 4.50%, 1/25/24 (b)	$	382		388

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
RALI Trust, 6.00%, 4/25/36 - 1/25/37	$	38	$	35
PAC 6.00%, 4/25/36		13		13
Residential Asset Securitization Trust, 6.00%, 7/25/36		25		21
RMF Buyout Issuance Trust, 1.71%, 6/25/30 (b)(c)		461		462
2.15%, 6/25/30 (b)(c)		150		150
Rochester Financing No. 2 PLC, 3 Month GBP LIBOR + 2.75%, 2.91%, 6/18/45 (c)	GBP	350		419
Seasoned Credit Risk Transfer Trust, 3.00%, 7/25/56 - 2/25/59	$	4,982		5,479
4.00%, 7/25/56 (c)		300		299
4.00%, 8/25/56 (b)(c)		400		363
4.00%, 8/25/58 - 2/25/59		577		642
4.25%, 8/25/59 (b)(c)		650		581
4.50%, 6/25/57		1,183		1,330
4.75%, 7/25/56 - 6/25/57 (b)(c)		700		664
4.75%, 10/25/58 (c)		300		290
Structured Asset Securities Corp. Reverse Mortgage Loan Trust, 1 Month USD LIBOR + 1.85%, 2.03%, 5/25/47 (b)(c)		833		662
TDA 27 FTA, 3 Month EURIBOR + 0.19%, 0.00%, 12/28/50 (c)	EUR	500		448
TVC Mortgage Trust, 3.47%, 9/25/24 (b)	$	200		199
				25,724
Municipal Bonds (1.1%)
Chicago O'Hare International Airport, IL, O'Hare International Airport Revenue Series 2010B 6.40%, 1/1/40		115		171
City of New York, NY, Series G-1 5.97%, 3/1/36		245		350
Illinois State Toll Highway Authority, IL, Highway Revenue, Build America Bonds Series A 6.18%, 1/1/34		705		1,022
Pennsylvania State University/The, PA, Series D 2.84%, 9/1/50		325		334
				1,877
Sovereign (7.8%)
Angolan Government International Bond, 8.00%, 11/26/29 (b)		240		199
Australia Government Bond, 2.75%, 11/21/28	AUD	3,725		2,986
Banque Ouest Africaine de Developpement, 4.70%, 10/22/31 (b)	$	350		354
Brazil Notas do Tesouro Nacional Series F, 10.00%, 1/1/29	BRL	2,300		508

	Face Amount (000)		Value (000)
Croatia Government International Bond, 2.75%, 1/27/30	EUR	275	$	348
Dominican Republic International Bond, 5.88%, 1/30/60 (b)	$	170		147
Ecuador Government International Bond, 9.50%, 3/27/30 (g)(h)		200		86
10.65%, 1/31/29 (g)(h)		275		114
Egypt Government International Bond, 6.38%, 4/11/31 (b)	EUR	400		417
8.15%, 11/20/59 (b)	$	200		187
Export-Import Bank of India, 3.25%, 1/15/30 (b)		200		198
Honduras Government International Bond, 5.63%, 6/24/30 (b)(l)		150		153
Indonesia Treasury Bond, 8.25%, 5/15/29	IDR	5,325,000		398
8.38%, 3/15/34		4,816,000		356
Italy Buoni Poliennali Del Tesoro, 1.65%, 12/1/30 (b)	EUR	450		522
Mexican Bonos, Series M 8.50%, 5/31/29	MXN	16,500		850
Mexico Government International Bond, 3.25%, 4/16/30 (l)	$	300		298
Nigeria Government International Bond, 9.25%, 1/21/49 (b)		400		406
Pertamina Persero PT, 6.50%, 11/7/48 (b)		350		460
Petroleos Mexicanos, 6.50%, 1/23/29		210		183
6.84%, 1/23/30 (b)		180		159
6.95%, 1/28/60 (b)		55		42
7.69%, 1/23/50 (b)		159		133
Qatar Government International Bond, 5.10%, 4/23/48 (b)		300		409
Republic of Austria Government Bond, 0.85%, 6/30/20 (b)	EUR	60		75
2.10%, 9/20/17 (b)		42		94
Republic of Belarus Ministry of Finance, 6.38%, 2/24/31 (b)	$	220		213
Republic of South Africa Government Bond, 8.00%, 1/31/30	ZAR	15,032		801
Russian Federal Bond - OFZ, 7.95%, 10/7/26	RUB	57,880		925
Russian Foreign Bond - Eurobond, 5.63%, 4/4/42	$	400		544
Senegal Government International Bond, 6.25%, 5/23/33 (b)		200		204
Spain Government Bond, 1.25%, 10/31/30 (b)	EUR	775		939
				13,708
Total Fixed Income Securities (Cost $167,470)				170,784

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Shares		Value (000)
Short-Term Investments (13.2%)
Securities held as Collateral on Loaned Securities (0.3%)
Investment Company (0.3%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note H) (Cost $459)		459,000	$	459
Investment Company (12.4%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note H) (Cost $21,893)		21,893,013		21,893
	Face Amount (000)
U.S. Treasury Security (0.5%)
U.S. Treasury Bill 0.16%, 1/28/21 (m)(n) (Cost $832)	$	833		832
Total Short-Term Investments (Cost $23,184)				23,184
Total Investments (110.3%) (Cost $190,654) Including $452 of Securities Loaned (o)(p)				193,968
Liabilities in Excess of Other Assets (-10.3%)				(18,082	)
Net Assets (100.0%)			$	175,886

(a) Security is subject to delayed delivery.

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

(c) Floating or variable rate securities: The rates disclosed are as of June 30, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(d) Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at June 30, 2020.

(e) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of June 30, 2020.

(f) When-issued security.

(g) Issuer in bankruptcy.

(h) Non-income producing security; bond in default.

(i) Acquired through exchange offer.

(j) At June 30, 2020, the Fund held a fair valued security valued 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.

(k) PIK: Payment-in-kind security for which part of the income earned may be paid as additional principal.

(l) All or a portion of this security was on loan at June 30, 2020.

(m) Rate shown is the yield to maturity at June 30, 2020.

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

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

(p) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,498,000 and the aggregate gross unrealized depreciation is approximately $4,975,000, resulting in net unrealized appreciation of approximately $3,523,000.

@ Value is less than $500.

EURIBOR Euro Interbank Offered Rate.

IO Interest Only.

LIBOR London Interbank Offered Rate.

MTN Medium Term Note.

OFZ Obilgatsyi Federal'novo Zaima (Russian Federal Loan Obligation).

PAC Planned Amortization Class.

REMIC Real Estate Mortgage Investment Conduit.

STRIPS Separate Trading of Registered Interest and Principal of Securities.

TBA To Be Announced.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at June 30, 2020:

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
Bank of America NA	HUF	130,175		$	425		9/3/20	$	12
Bank of America NA	MXN	19,326		$	875		9/3/20		42
Barclays Bank PLC	AUD	4,334		$	3,001		9/3/20		9
Barclays Bank PLC	$	9		CHF	8		9/3/20		—	@
Barclays Bank PLC	$	941		JPY	100,840		9/3/20		(6	)
Barclays Bank PLC	$	436		NOK	4,115		9/3/20		(8	)
Barclays Bank PLC	$	315		ZAR	5,250		9/3/20		(14	)
BNP Paribas SA	BRL	2,891		$	569		9/3/20		39
BNP Paribas SA	CHF	491		EUR	454		9/3/20		(9	)
BNP Paribas SA	EUR	5,365		$	6,093		9/3/20		58
BNP Paribas SA	EUR	441		$	499		9/3/20		3
BNP Paribas SA	EUR	59		$	66		9/3/20		(—	@)
BNP Paribas SA	IDR	11,675,884		$	817		9/3/20		5
BNP Paribas SA	PLN	1,915		$	485		9/3/20		1
BNP Paribas SA	$	372		CHF	355		9/3/20		4
BNP Paribas SA	$	22		GBP	18		9/3/20		(—	@)
BNP Paribas SA	$	411		HUF	125,173		9/3/20		(14	)
Citibank NA	GBP	1,231		$	1,544		9/3/20		19
Citibank NA	RUB	64,368		$	928		9/3/20		29
Citibank NA	$	482		PLN	1,889		9/3/20		(5	)
Citibank NA	ZAR	19,702		$	1,157		9/3/20		29
HSBC Bank PLC	EUR	800		$	906		9/3/20		6
JPMorgan Chase Bank NA	CAD	1,042		$	771		9/3/20		4
JPMorgan Chase Bank NA	CHF	—	@	$	—	@	9/3/20		(—	@)
JPMorgan Chase Bank NA	GBP	716		EUR	795		9/3/20		6
JPMorgan Chase Bank NA	JPY	101,543		$	932		9/3/20		(9	)
JPMorgan Chase Bank NA	$	888		EUR	791		9/3/20		2
State Street Bank and Trust Co.	$	41		CAD	56		9/3/20		—	@
UBS AG	$	32		MXN	713		9/3/20		(2	)
UBS AG	$	454		NZD	705		9/3/20		1
								$	202

Futures Contracts:

The Fund had the following futures contracts open at June 30, 2020:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		46	Sep-20	$	9,200		$	10,158		$	5
U.S. Treasury 5 yr. Note		96	Sep-20		9,600			12,071			30
U.S. Treasury Ultra Bond		69	Sep-20		6,900			15,053			(70	)
Short:
German Euro 30 yr. Bond		1	Sep-20	EUR	(100	)		(247	)		(2	)
German Euro Bund		9	Sep-20		(900	)		(1,785	)		(9	)
German Euro OAT		7	Sep-20		(700	)		(1,318	)		(14	)
U.S. Treasury 10 yr. Note		7	Sep-20	$	(700	)		(974	)		(3	)
U.S. Treasury 30 yr. Bond		3	Sep-20		(300	)		(536	)		(6	)
U.S. Treasury Ultra Long Bond		32	Sep-20		(3,200	)		(5,040	)		(42	)
										$	(111	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Credit Default Swap Agreement:

The Fund had the following credit default swap agreement open at June 30, 2020:

Swap Counterparty and Reference Obligation				Credit Rating of Reference Obligation†				Buy/Sell Protection				Pay/ Receive Fixed Rate				Payment Frequency				Maturity Date				Notional Amount (000)				Value (000)				Upfront Payment (Received) (000)				Unrealized Appreciation (000)
Morgan Stanley & Co. LLC* CDX.NA.HY.33				NR				Buy					5.00	%		Quarterly				12/20/24				$	1,426			$	6			$	(112	)		$	118

@ — Value is less than $500.

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

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

NR — Not Rated.

OAT — Obligations Assimilables du Trésor (French Treasury Obligation).

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

CHF — Swiss Franc

EUR — Euro

GBP — British Pound

HUF — Hungarian Forint

IDR — Indonesian Rupiah

JPY — Japanese Yen

MXN — Mexican Peso

NOK — Norwegian Krone

NZD — New Zealand Dollar

PLN — Polish Zloty

RUB — Russian Ruble

USD — United States Dollar

ZAR — South African Rand

Portfolio Composition**

Classification	Percentage of Total Investments
Industrials		17.2	%
Agency Fixed Rate Mortgages		15.1
Finance		15.0
Mortgages — Other		13.3
Short-Term Investments		11.7
Asset-Backed Securities		10.3
Sovereign		7.1
Commercial Mortgage-Backed Securities		5.6
Other***		4.7
Total Investments		100.0	%****

** Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2020.

*** 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 $47,182,000 and net unrealized depreciation of approximately $111,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $202,000 and does not include open swap agreements with total unrealized appreciation of approximately $118,000.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $168,302)	$	171,616
Investment in Security of Affiliated Issuer, at Value (Cost $22,352)		22,352
Total Investments in Securities, at Value (Cost $190,654)		193,968
Foreign Currency, at Value (Cost $4)		4
Interest Receivable		1,050
Receivable for Variation Margin on Futures Contracts		755
Receivable for Investments Sold		531
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		269
Receivable for Fund Shares Sold		231
Tax Reclaim Receivable		4
Receivable from Affiliate		1
Receivable from Securities Lending Income		—	@
Other Assets		20
Total Assets		196,833
Liabilities:
Payable for Investments Purchased		19,595
Collateral on Securities Loaned, at Value		459
Payable for Fund Shares Redeemed		435
Payable for Advisory Fees		133
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		67
Payable for Servicing Fees		59
Payable for Professional Fees		39
Due to Broker		28
Deferred Capital Gain Country Tax		24
Payable for Variation Margin on Swap Agreements		24
Payable for Distribution Fees — Class II Shares		17
Payable for Custodian Fees		13
Payable for Administration Fees		11
Bank Overdraft		10
Payable for Transfer Agency Fees		2
Other Liabilities		31
Total Liabilities		20,947
NET ASSETS	$	175,886
Net Assets Consist of:
Paid-in-Capital	$	158,595
Total Distributable Earnings		17,291
Net Assets	$	175,886
CLASS I:
Net Assets	$	83,719
Net Asset Value, Offering and Redemption Price Per Share Applicable to 7,133,424 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	11.74
CLASS II:
Net Assets	$	92,167
Net Asset Value, Offering and Redemption Price Per Share Applicable to 7,889,063 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	11.68
⁽¹⁾Including:
Securities on Loan, at Value:	$	452

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $12 of Foreign Taxes Withheld)	$	2,949
Dividends from Security of Affiliated Issuer (Note H)		57
Dividends from Securities of Unaffiliated Issuers		9
Income from Securities Loaned — Net		3
Total Investment Income		3,018
Expenses:
Advisory Fees (Note B)		338
Distribution Fees — Class II Shares (Note E)		116
Servicing Fees (Note D)		98
Administration Fees (Note C)		72
Professional Fees		69
Custodian Fees (Note G)		29
Pricing Fees		24
Shareholder Reporting Fees		13
Transfer Agency Fees (Note F)		5
Directors' Fees and Expenses		4
Other Expenses		8
Total Expenses		776
Waiver of Advisory Fees (Note B)		(31	)
Rebate from Morgan Stanley Affiliate (Note H)		(15	)
Net Expenses		730
Net Investment Income		2,288
Realized Gain (Loss):
Investments Sold (Net of $9 of Capital Gain Country Tax)		4,326
Foreign Currency Forward Exchange Contracts		152
Foreign Currency Translation		(34	)
Futures Contracts		901
Swap Agreements		151
Net Realized Gain		5,496
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $12)		(2,255	)
Foreign Currency Forward Exchange Contracts		338
Foreign Currency Translation		—	@
Futures Contracts		(189	)
Swap Agreements		123
Net Change in Unrealized Appreciation (Depreciation)		(1,983	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		3,513
Net Increase in Net Assets Resulting from Operations	$	5,801

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,288		$	5,046
Net Realized Gain		5,496			4,158
Net Change in Unrealized Appreciation (Depreciation)		(1,983	)		7,725
Net Increase in Net Assets Resulting from Operations		5,801			16,929
Dividends and Distributions to Shareholders:
Class I		—			(2,963	)
Class II		—			(3,607	)
Total Dividends and Distributions to Shareholders		—			(6,570	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		10,817			32,507
Distributions Reinvested		—			2,963
Redeemed		(21,956	)		(18,360	)
Class II:
Subscribed		10,360			18,320
Distributions Reinvested		—			3,607
Redeemed		(17,245	)		(23,496	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(18,024	)		15,541
Total Increase (Decrease) in Net Assets		(12,223	)		25,900
Net Assets:
Beginning of Period		188,109			162,209
End of Period	$	175,886		$	188,109
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		944			2,899
Shares Issued on Distributions Reinvested		—			270
Shares Redeemed		(1,960	)		(1,651	)
Net Increase (Decrease) in Class I Shares Outstanding		(1,016	)		1,518
Class II:
Shares Subscribed		909			1,659
Shares Issued on Distributions Reinvested		—			329
Shares Redeemed		(1,533	)		(2,137	)
Net Decrease in Class II Shares Outstanding		(624	)		(149	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	11.31		$	10.63		$	10.98		$	10.67		$	10.25		$	10.68
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.15			0.35			0.34			0.34			0.33			0.20
Net Realized and Unrealized Gain (Loss)		0.28			0.79			(0.41	)		0.32			0.30			(0.27	)
Total from Investment Operations		0.43			1.14			(0.07	)		0.66			0.63			(0.07	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.46	)		(0.28	)		(0.35	)		(0.21	)		(0.36	)
Net Asset Value, End of Period	$	11.74		$	11.31		$	10.63		$	10.98		$	10.67		$	10.25
Total Return⁽³⁾		3.80	%⁽⁷⁾		10.88	%⁽⁴⁾		(0.65	)%		6.24	%		6.11	%⁽⁵⁾		(0.65	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	83,719		$	92,157		$	70,476		$	79,752		$	82,746		$	88,018
Ratio of Expenses Before Expense Limitation		0.73	%⁽⁸⁾		0.77	%		0.76	%		0.76	%		0.72	%		0.76	%
Ratio of Expenses After Expense Limitation		0.68	%⁽⁶⁾⁽⁸⁾		0.69	%⁽⁶⁾		0.68	%⁽⁶⁾		0.68	%⁽⁶⁾		0.61	%⁽⁶⁾		0.69	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Non-Operating Expenses		N/A			N/A			N/A			N/A			0.61	%⁽⁶⁾		N/A
Ratio of Net Investment Income		2.66	%⁽⁶⁾⁽⁸⁾		3.16	%⁽⁶⁾		3.12	%⁽⁶⁾		3.10	%⁽⁶⁾		3.06	%⁽⁶⁾		1.89	%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%⁽⁸⁾		0.01	%		0.02	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		142	%⁽⁷⁾		231	%		220	%		277	%		376	%		400	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation would have been 0.07% higher and the Ratio of Net Investment Income would have been 0.07% lower had the custodian not reimbursed the Fund.

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

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

(4) Performance was positively impacted by approximately 0.10% due to the receipt of proceeds from the settlement of class action suit involving the Fund's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class I shares would have been approximately 10.78%.

(5) Performance was positively impacted by approximately 1.77% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 4.34%.

(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.
17

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Core Plus Fixed Income Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	11.27		$	10.59		$	10.94		$	10.64		$	10.22		$	10.65
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.14			0.32			0.31			0.31			0.30			0.17
Net Realized and Unrealized Gain (Loss)		0.27			0.79			(0.41	)		0.31			0.30			(0.26	)
Total from Investment Operations		0.41			1.11			(0.10	)		0.62			0.60			(0.09	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.43	)		(0.25	)		(0.32	)		(0.18	)		(0.34	)
Net Asset Value, End of Period	$	11.68		$	11.27		$	10.59		$	10.94		$	10.64		$	10.22
Total Return⁽³⁾		3.64	%⁽⁷⁾		10.61	%⁽⁴⁾		(0.91	)%		5.89	%		5.86	%⁽⁵⁾		(0.83	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	92,167		$	95,952		$	91,733		$	111,585		$	103,739		$	104,736
Ratio of Expenses Before Expense Limitation		0.98	%⁽⁸⁾		1.02	%		1.01	%		1.01	%		0.97	%		1.04	%
Ratio of Expenses After Expense Limitation		0.93	%⁽⁶⁾⁽⁸⁾		0.94	%⁽⁶⁾		0.93	%⁽⁶⁾		0.93	%⁽⁶⁾		0.86	%⁽⁶⁾		0.94	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Non-Operating Expenses		N/A			N/A			N/A			N/A			0.86	%⁽⁶⁾		N/A
Ratio of Net Investment Income		2.41	%⁽⁶⁾⁽⁸⁾		2.91	%⁽⁶⁾		2.87	%⁽⁶⁾		2.85	%⁽⁶⁾		2.81	%⁽⁶⁾		1.64	%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%⁽⁸⁾		0.01	%		0.02	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		142	%⁽⁷⁾		231	%		220	%		277	%		376	%		400	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class II shares. The Ratio of Expenses After Expense Limitation would have been 0.07% higher and the Ratio of Net Investment Income would have been 0.07% lower had the custodian not reimbursed the Fund.

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

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

Morgan Stanley Variable Insurance 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 ten 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.

The accompanying financial statements relate to the Core Plus Fixed Income Portfolio. The Fund seeks above-average total return over a market cycle of three to five years by investing primarily in a diversified portfolio of fixed income securities. The Fund offers two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

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 August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13, Fair Value Measurement (Topic 820) — Disclosures Framework — Changes to Disclosure Requirements of Fair Value Measurement ("ASU 2018-13") which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The impact of the Fund's adoption was limited to changes in the Fund's financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy and disclosure of the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, when applicable.

1. Security Valuation: (1) Certain portfolio 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Directors or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

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

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

• Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair

value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

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

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgages	$	—	$	210	$	—		$	210
Agency Fixed Rate Mortgages		—		29,158		—			29,158
Asset-Backed Securities		—		20,021		—			20,021
Collateralized Mortgage Obligations - Agency Collateral Series		—		1,274		—			1,274
Commercial Mortgage- Backed Securities		—		10,917		—			10,917
Corporate Bonds		—		67,895		—	†		67,895	†
Mortgages — Other		—		25,724		—			25,724
Municipal Bonds		—		1,877		—			1,877
Sovereign		—		13,708		—			13,708
Total Fixed Income Securities		—		170,784		—	†		170,784	†
Short-Term Investments
Investment Companies		22,352		—		—			22,352
U.S. Treasury Security		—		832		—			832
Total Short-Term Investments		22,352		832		—			23,184
Foreign Currency Forward Exchange Contracts		—		269		—			269
Futures Contracts		35		—		—			35
Credit Default Swap Agreement		—		118		—			118
Total Assets		22,387		172,003		—	†		194,390	†

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Liabilities:
Foreign Currency Forward Exchange Contracts	$	—		$	(67	)	$	—		$	(67	)
Futures Contracts		(146	)		—			—			(146	)
Total Liabilities		(146	)		(67	)		—			(213	)
Total	$	22,241		$	171,936		$	—	†	$	194,177	†

† Includes one 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:

	Corporate Bond (000)
Beginning Balance	$	—	†
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	—	†
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2020	$	—

† Includes one 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.

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

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

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

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

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

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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

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

and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis.

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

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap agreement and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Fund's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

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

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

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

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 June 30, 2020:

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

269

Futures Contracts

Variation Margin on
Futures Contracts

Interest
Rate Risk

(a)

Swap Agreement

Variation Margin on
Swap Agreement

Credit Risk

118

(a)

Total

422

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

(67

)

Futures Contracts

Variation Margin on
Futures Contracts

Interest
Rate Risk

(146

)(a)

Total

(213

)

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

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended June 30, 2020 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	152
Interest Rate Risk	Futures Contracts		901
Credit Risk	Swap Agreement		151
Total		$	1,204
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	338
Interest Rate Risk	Futures Contracts		(189	)
Credit Risk	Swap Agreement		123
Total		$	272

At June 30, 2020, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	269	$	(67	)

(b) Excludes exchange-traded derivatives.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	54		$	—		$	(28	)	$	26
Barclays Bank PLC		9			(9	)		—			0
BNP Paribas SA		110			(23	)		—			87
Citibank NA		77			(5	)		—			72
HSBC Bank PLC		6			—			—			6
JPMorgan Chase Bank NA		12			(9	)		—			3
State Street Bank and Trust Co.		—	@		—			—			—	@
UBS AG		1			(1	)		—			0
Total	$	269		$	(47	)	$	(28	)	$	194

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	28	$	(9	)	$	—	$	19
BNP Paribas SA		23		(23	)		—		0
Citibank NA		5		(5	)		—		0
JPMorgan Chase Bank NA		9		(9	)		—		0
UBS AG		2		(1	)		—		1
Total	$	67	$	(47	)	$	—	$	20

@ Amount is less than $500.

For the six months ended June 30, 2020, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	31,414,000
Futures Contracts:
Average monthly notional value	$	84,242,000
Swap Agreements:
Average monthly notional amount	$	2,008,000

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

6. 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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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 June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	452	(d)	$	—	$	(452	)(e)(f)	$	0

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

(e) The Fund received cash collateral of approximately $459,000, which was subsequently invested in Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments.

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

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining contractual maturity of those transactions as of June 30, 2020:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Sovereign	$	459	$	—	$	—	$	—	$	459
Total Borrowings	$	459	$	—	$	—	$	—	$	459
Gross amount of recognized liabilities for securities lending transactions									$	459

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. 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 net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

Settlement and registration of foreign securities transactions may be subject to significant risks not normally associated with investments in the United States. In certain markets, ownership of shares is defined according to entries in the issuer's share register. It is possible that a Fund holding these securities could lose its share registration through fraud, negligence or even mere oversight. In addition, shares being delivered for sales and cash being paid for purchases may be delivered before the exchange is complete. This may subject the Fund to further risk of

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

loss in the event of a failure to complete the transaction by the counterparty.

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.

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

First $1 billion				Over $1 billion
	0.375	%			0.30	%

For the six months ended June 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.32% 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 and 0.95% for Class II 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 six months ended June 30, 2020, approximately $31,000 of advisory fees were waived 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. Servicing Fees: The Company accrues daily and pays quarterly a servicing fee of up to 0.17% of the average daily value of shares of the Fund held in an insurance company's account. Certain insurance companies have entered into a servicing agreement with the Company to provide

administrative and other contract-owner related services on behalf of the Fund.

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

G. 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.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $66,945,000 and $54,319,000, respectively. For the six months ended June 30, 2020, purchases and sales of long-term U.S. Government securities were approximately $181,087,000 and $206,761,000, 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 as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2020, advisory fees paid were reduced by approximately $15,000 relating to the Fund's investment in the Liquidity Funds.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	16,060			$	59,644			$	53,352			$	57

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	22,352

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 six months ended June 30, 2020, 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.

I. 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, 2019 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 2019 and 2018 was as follows:

2019 Distributions Paid From:		2018 Distributions Paid From:
Ordinary Income (000)		Ordinary Income (000)
$	6,570	$	4,328

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, 2019:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	(663	)		$	663

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	6,133			$	507

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

During the year ended December 31, 2019, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $1,262,000.

J. 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 on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2020, the Fund did not have any borrowings under the Facility.

K. Other: At June 30, 2020, 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 56.7%.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

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

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

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Fund's management fee was lower than its peer group average and the Fund's total expense ratio was higher than its peer group average. After discussion, the Board concluded that the Fund's (i) performance and management fee were competitive with its peer group averages and (ii) total expense ratio was acceptable.

Economies of Scale

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Profitability of the Adviser and Affiliates

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

Other Benefits of the Relationship

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

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

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

Other Factors and Current Trends

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

As part of the Board's review, the Board received information from management on the impact of COVID-19 on the firm generally and the Adviser and the Fund in particular including, among other information, the pandemic's current and expected impact on the Fund's performance and operations.

General Conclusion

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of 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 April 22-23, 2020, 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 December 1, 2018, through December 31, 2019, 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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. However, the holdings for each money market fund are 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) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is submitted for the general information of the shareholders of the Fund. For more detailed information about the Fund, its fees and expenses and other pertinent information, please read its Prospectus. The Company's Statement of Additional Information contains additional information about the Fund, including its Directors. It is available, without charge, by calling 1 (800) 548-7786.

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

UIFCPFISAN
3174321 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Discovery Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		6
Statement of Operations		7
Statements of Changes in Net Assets		8
Financial Highlights		9
Notes to Financial Statements		11
Investment Advisory Agreement Approval		20
Liquidity Risk Management Program		22
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

Discovery Portfolio

As a shareholder of the Discovery Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Discovery Portfolio Class I	$	1,000.00	$	1,611.50	$	1,020.14	$	6.17	$	4.77		0.95	%
Discovery Portfolio Class II		1,000.00		1,610.50		1,019.64		6.82		5.27		1.05

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Discovery Portfolio

	Shares		Value (000)
Common Stocks (96.1%)
Biotechnology (2.0%)
Alnylam Pharmaceuticals, Inc. (a)		9,202	$	1,363
Exact Sciences Corp. (a)		21,995		1,912
Moderna, Inc. (a)		29,541		1,897
				5,172
Electronic Equipment, Instruments & Components (1.0%)
Cognex Corp.		44,574		2,662
Entertainment (6.0%)
Roku, Inc. (a)		20,477		2,386
Spotify Technology SA (a)		50,985		13,164
				15,550
Health Care Equipment & Supplies (3.5%)
DexCom, Inc. (a)		22,559		9,146
Health Care Providers & Services (1.9%)
Covetrus, Inc. (a)		91,597		1,638
Guardant Health, Inc. (a)		39,291		3,188
				4,826
Health Care Technology (4.5%)
Agilon Health Topco, Inc.(a)(b)(c) (acquisition cost — $596; acquired 11/7/18)		1,577		722
Veeva Systems, Inc., Class A (a)		46,801		10,971
				11,693
Information Technology Services (26.3%)
Adyen N.V. (Netherlands) (a)		3,421		4,984
MongoDB, Inc. (a)		48,701		11,023
Okta, Inc. (a)		53,077		10,628
Shopify, Inc., Class A (Canada) (a)		19,516		18,525
Square, Inc., Class A (a)		118,586		12,444
Twilio, Inc., Class A (a)		50,350		11,048
				68,652
Interactive Media & Services (7.4%)
Pinterest, Inc., Class A (a)		161,187		3,574
Snap, Inc., Class A (a)		178,123		4,184
Twitter, Inc. (a)		196,550		5,855
Zillow Group, Inc., Class C (a)		98,220		5,658
				19,271
Internet & Direct Marketing Retail (7.6%)
Chewy, Inc., Class A (a)		156,892		7,012
Farfetch Ltd., Class A (a)		140,600		2,428
Overstock.com, Inc. (a)		78,179		2,223
Wayfair, Inc., Class A (a)		41,800		8,260
				19,923

	Shares		Value (000)
Leisure Products (2.6%)
Peloton Interactive, Inc., Class A (a)		119,601	$	6,909
Life Sciences Tools & Services (3.3%)
10X Genomics, Inc., Class A (a)		95,185		8,501
Metals & Mining (0.2%)
Royal Gold, Inc.		3,649		454
Oil, Gas & Consumable Fuels (0.2%)
Texas Pacific Land Trust		954		567
Semiconductors & Semiconductor Equipment (1.0%)
Teradyne, Inc.		31,716		2,680
Software (25.1%)
Alteryx, Inc., Class A (a)		54,687		8,984
Coupa Software, Inc. (a)		46,865		12,983
Datadog, Inc., Class A (a)		74,954		6,517
DocuSign, Inc. (a)		25,752		4,435
Slack Technologies, Inc., Class A (a)		286,071		8,894
Trade Desk, Inc. (The), Class A (a)		25,216		10,250
Zoom Video Communications, Inc., Class A (a)		52,444		13,297
				65,360
Specialty Retail (3.5%)
Carvana Co. (a)		75,242		9,044
Total Common Stocks (Cost $131,234)				250,410
Preferred Stocks (1.6%)
Internet & Direct Marketing Retail (1.1%)
Airbnb, Inc. Series D (a)(b)(c) (acquisition cost — $1,370; acquired 4/16/14)		33,636		2,692
Overstock.com, Inc. Series A-1 (a)		7,866		154
				2,846
Software (0.5%)
Palantir Technologies, Inc. Series G (a)(b)(c) (acquisition cost — $455; acquired 7/19/12)		148,616		1,031
Palantir Technologies, Inc. Series H (a)(b)(c) (acquisition cost — $102; acquired 10/25/13)		29,092		201
Palantir Technologies, Inc. Series H1 (a)(b)(c) (acquisition cost — $102; acquired 10/25/13)		29,092		201
				1,433
Total Preferred Stocks (Cost $2,109)				4,279

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Discovery Portfolio

	Shares		Value (000)
Short-Term Investment (3.1%)
Investment Company (3.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note H) (Cost $8,009)		8,009,213	$	8,009
Total Investments Excluding Purchased Options (100.8%) (Cost $141,352)				262,698
Total Purchased Options Outstanding (0.1%) (Cost $557)				181
Total Investments (100.9%) (Cost $141,909) (d)(e)				262,879
Liabilities in Excess of Other Assets (-0.9%)				(2,230	)
Net Assets (100.0%)			$	260,649

(a) Non-income producing security.

(b) 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 June 30, 2020 amounts to approximately $4,847,000 and represents 1.9% of net assets.

(c) At June 30, 2020, the Fund held fair valued securities valued at approximately $4,847,000, representing 1.9% 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.

(d) The approximate fair value and percentage of net assets, $4,984,000 and 1.9%, 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.

(e) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $124,134,000 and the aggregate gross unrealized depreciation is approximately $3,164,000, resulting in net unrealized appreciation of approximately $120,970,000.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2020:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
Royal Bank of Scotland	USD/CNH	CNH	7.75	Jan-21		38,896,197		38,896	$	99	$	170	$	(71	)
Royal Bank of Scotland	USD/CNH	CNH	8.09	Sep-20		31,203,116		31,203		5		168		(163	)
Royal Bank of Scotland	USD/CNH	CNH	8.48	May-21		35,020,637		35,021		77		219		(142	)
									$	181	$	557	$	(376	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Discovery Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Other*		26.5	%
Information Technology Services		26.1
Software		25.4
Internet & Direct Marketing Retail		8.7
Interactive Media & Services		7.4
Entertainment		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.
5

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Discovery Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $133,900)	$	254,870
Investment in Security of Affiliated Issuer, at Value (Cost $8,009)		8,009
Total Investments in Securities, at Value (Cost $141,909)		262,879
Foreign Currency, at Value (Cost $1)		1
Receivable for Fund Shares Sold		103
Receivable from Affiliate		—	@
Other Assets		10
Total Assets		262,993
Liabilities:
Payable for Fund Shares Redeemed		1,587
Payable for Advisory Fees		312
Due to Broker		290
Payable for Servicing Fees		78
Payable for Professional Fees		31
Payable for Distribution Fees — Class II Shares		17
Payable for Administration Fees		16
Payable for Custodian Fees		4
Payable for Transfer Agency Fees		2
Other Liabilities		7
Total Liabilities		2,344
NET ASSETS	$	260,649
Net Assets Consist of:
Paid-in-Capital	$	102,070
Total Distributable Earnings		158,579
Net Assets	$	260,649
CLASS I:
Net Assets	$	46,143
Net Asset Value, Offering and Redemption Price Per Share Applicable to 2,193,823 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	21.03
CLASS II:
Net Assets	$	214,506
Net Asset Value, Offering and Redemption Price Per Share Applicable to 10,543,428 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	20.34

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Discovery Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Income from Securities Loaned — Net	$	159
Dividends from Security of Affiliated Issuer (Note H)		12
Dividends from Securities of Unaffiliated Issuers		4
Total Investment Income		175
Expenses:
Advisory Fees (Note B)		698
Distribution Fees — Class II Shares (Note E)		190
Servicing Fees (Note D)		143
Administration Fees (Note C)		74
Professional Fees		62
Shareholder Reporting Fees		15
Custodian Fees (Note G)		6
Transfer Agency Fees (Note F)		5
Directors' Fees and Expenses		4
Pricing Fees		2
Other Expenses		11
Total Expenses		1,210
Waiver of Advisory Fees (Note B)		(136	)
Waiver of Distribution Fees — Class II Shares (Note E)		(114	)
Rebate from Morgan Stanley Affiliate (Note H)		(3	)
Net Expenses		957
Net Investment Loss		(782	)
Realized Gain:
Investments Sold		9,852
Foreign Currency Translation		(—	@)
Net Realized Gain		9,852
Change in Unrealized Appreciation (Depreciation):
Investments		89,954
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		89,954
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		99,806
Net Increase in Net Assets Resulting from Operations	$	99,024

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Discovery Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(782	)	$	(959	)
Net Realized Gain		9,852			30,675
Net Change in Unrealized Appreciation (Depreciation)		89,954			21,166
Net Increase in Net Assets Resulting from Operations		99,024			50,882
Dividends and Distributions to Shareholders:
Class I		—			(5,010	)
Class II		—			(19,016	)
Total Dividends and Distributions to Shareholders		—			(24,026	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		6,097			8,452
Distributions Reinvested		—			5,010
Redeemed		(8,290	)		(16,098	)
Class II:
Subscribed		17,928			19,074
Distributions Reinvested		—			19,016
Redeemed		(18,073	)		(26,007	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(2,338	)		9,447
Total Increase in Net Assets		96,686			36,303
Net Assets:
Beginning of Period		163,963			127,660
End of Period	$	260,649		$	163,963
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		401			637
Shares Issued on Distributions Reinvested		—			368
Shares Redeemed		(563	)		(1,228	)
Net Decrease in Class I Shares Outstanding		(162	)		(223	)
Class II:
Shares Subscribed		1,200			1,502
Shares Issued on Distributions Reinvested		—			1,443
Shares Redeemed		(1,207	)		(1,992	)
Net Increase (Decrease) in Class II Shares Outstanding		(7	)		953

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Discovery Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	13.05		$	10.71		$	12.10		$	8.72		$	10.03		$	12.73
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.06	)		(0.07	)		(0.08	)		(0.05	)		(0.00	)⁽³⁾		(0.08	)
Net Realized and Unrealized Gain (Loss)		8.04			4.45			1.69			3.43			(0.87	)		(0.50	)
Total from Investment Operations		7.98			4.38			1.61			3.38			(0.87	)		(0.58	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.04	)		(3.00	)		—			(0.44	)		(2.12	)
Net Asset Value, End of Period	$	21.03		$	13.05		$	10.71		$	12.10		$	8.72		$	10.03
Total Return⁽⁴⁾		61.15	%⁽⁸⁾		40.11	%		10.65	%		38.76	%		(8.78	)%		(5.90	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	46,143		$	30,739		$	27,630		$	28,747		$	27,893		$	48,467
Ratio of Expenses Before Expense Limitation		1.10	%⁽⁹⁾		1.11	%		1.15	%		1.17	%		1.14	%		1.10	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁹⁾		0.94	%⁽⁵⁾		0.94	%⁽⁵⁾		0.99	%⁽⁵⁾⁽⁶⁾		1.04	%⁽⁵⁾		1.05	%⁽⁵⁾
Ratio of Net Investment Loss		(0.76	)%⁽⁵⁾⁽⁹⁾		(0.49	)%⁽⁵⁾		(0.59	)%⁽⁵⁾		(0.45	)%⁽⁵⁾		(0.00	)%⁽⁵⁾⁽⁷⁾		(0.67	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		22	%⁽⁸⁾		101	%		89	%		64	%		42	%		25	%

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

(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. Performance does not reflect fees and expenses imposed by your insurance company's separate account. If performance information included the effect of these additional charges, the total return would be lower.

(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 July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.95% for Class I shares. Prior to July 1, 2017, the maximum ratio was 1.05% for Class I shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Discovery Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	12.63		$	10.42		$	11.85		$	8.55		$	9.85		$	12.55
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.06	)		(0.08	)		(0.09	)		(0.06	)		(0.01	)		(0.09	)
Net Realized and Unrealized Gain (Loss)		7.77			4.33			1.66			3.36			(0.85	)		(0.49	)
Total from Investment Operations		7.71			4.25			1.57			3.30			(0.86	)		(0.58	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.04	)		(3.00	)		—			(0.44	)		(2.12	)
Net Asset Value, End of Period	$	20.34		$	12.63		$	10.42		$	11.85		$	8.55		$	9.85
Total Return⁽³⁾		61.05	%⁽⁷⁾		39.97	%		10.53	%		38.60	%		(8.84	)%		(5.99	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	214,506		$	133,224		$	100,030		$	89,140		$	75,163		$	98,499
Ratio of Expenses Before Expense Limitation		1.35	%⁽⁸⁾		1.36	%		1.40	%		1.42	%		1.39	%		1.39	%
Ratio of Expenses After Expense Limitation		1.05	%⁽⁴⁾⁽⁸⁾		1.04	%⁽⁴⁾		1.04	%⁽⁴⁾		1.09	%⁽⁴⁾⁽⁵⁾		1.14	%⁽⁴⁾		1.15	%⁽⁴⁾
Ratio of Net Investment Loss		(0.86	)%⁽⁴⁾⁽⁸⁾		(0.59	)%⁽⁴⁾		(0.69	)%⁽⁴⁾		(0.55	)%⁽⁴⁾		(0.10	)%⁽⁴⁾		(0.77	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.00	%⁽⁶⁾		0.01	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		22	%⁽⁷⁾		101	%		89	%		64	%		42	%		25	%

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

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

(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 July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.05% for Class II shares. Prior to July 1, 2017, the maximum ratio was 1.15% for Class II shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Discovery Portfolio. The Fund seeks long-term capital growth by investing primarily in common stocks and other equity securities. The Fund offers two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

changes. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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 (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.

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 following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Biotechnology	$	5,172	$	—	$	—	$	5,172
Electronic Equipment, Instruments & Components		2,662		—		—		2,662
Entertainment		15,550		—		—		15,550
Health Care Equipment & Supplies		9,146		—		—		9,146
Health Care Providers & Services		4,826		—		—		4,826
Health Care Technology		10,971		—		722		11,693

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Information Technology Services	$	63,668	$	4,984	$	—	$	68,652
Interactive Media & Services		19,271		—		—		19,271
Internet & Direct Marketing Retail		19,923		—		—		19,923
Leisure Products		6,909		—		—		6,909
Life Sciences Tools & Services		8,501		—		—		8,501
Metals & Mining		454		—		—		454
Oil, Gas & Consumable Fuels		567		—		—		567
Semiconductors & Semiconductor Equipment		2,680		—		—		2,680
Software		65,360		—		—		65,360
Specialty Retail		9,044		—		—		9,044
Total Common Stocks		244,704		4,984		722		250,410
Preferred Stocks
Internet & Direct Marketing Retail		154		—		2,692		2,846
Software		—		—		1,433		1,433
Total Preferred Stocks		154		—		4,125		4,279
Call Options Purchased		—		181		—		181
Short-Term Investment
Investment Company		8,009		—		—		8,009
Total Assets	$	252,867	$	5,165	$	4,847	$	262,879

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

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

	Common Stock (000)		Preferred Stocks (000)
Beginning Balance	$	709	$	5,712
Purchases		—		—
Sales		—		—
Amortization of discount		—		—
Transfers in		—		—
Transfers out		—		—
Corporate actions		—		—
Change in unrealized appreciation (depreciation)		13		(1,587	)
Realized gains (losses)		—		—
Ending Balance	$	722	$	4,125
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2020.	$	13	$	(1,587	)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2020. 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 June 30, 2020.

Fair Value at
June 30, 2020
(000)

Valuation
Technique

Unobservable
Input

Amount or Range/
Weighted Average*

Impact to
Valuation from an
Increase in Input**

Common Stock

722

Discounted Cash Flow

Weighted Average
Cost of Capital

13.0%

Decrease

Perpetual Growth Rate

3.5%

Increase

Market Comparable
Companies

Enterprise Value/
Revenue

1.4x

Increase

Discount for Lack of
Marketability

12.0%

Decrease

Preferred Stocks

4,125

Discounted Cash Flow

Weighted Average
Cost of Capital

13.5%–16.0%/14.8%

Decrease

Perpetual Growth Rate

3.0%–4.0%/3.5%

Increase

Market Comparable
Companies

Enterprise Value/
Revenue

1.7x–30.3x/9.4x

Increase

Discount for Lack of
Marketability

14.0%–16.5%/15.6%

Decrease

Comparable
Transactions

Enterprise Value/
Revenue

15.0x

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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to 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 Statement of Operations.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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

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 June 30, 2020:

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options Investments, at Value

(Purchased Options)

Currency Risk

181

(a)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(319	)(b)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	53	(c)

At June 30, 2020, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Purchased Options	$	181	(a)	$	—

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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 June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities(a) (000)		Financial Instrument (000)		Collateral Received(e) (000)			Net Amount (not less than $0) (000)
Royal Bank of Scotland	$	181	$	—	$	(181	)	$	0

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

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

For the six months ended June 30, 2020, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					111,347,000

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.

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

At June 30, 2020, 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,

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

8. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

^{First $500}^million				^{Next $500}^million				^{Over $1}^billion
	0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.60% of the Fund's average daily net assets.

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 six months ended June 30, 2020, approximately $136,000 of advisory fees were waived pursuant to this arrangement.

The Distributor has agreed to waive 0.15% of the 0.25% distribution fee that it may receive. This fee waiver 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 waiver when they deem such action is appropriate. For the six months ended June 30, 2020, this waiver amounted to approximately $114,000.

G. Custodian Fees: State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $41,045,000 and $48,817,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2020.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2020, 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 six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	8,601			$	34,755			$	35,347			$	12

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	8,009

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.

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	604	$	23,422	$	1,341	$	27,131

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

differences are either considered temporary or permanent in nature.

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2019.

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	6,331			$	23,020

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Fund's contractual management fee was higher than its peer group average and the actual management fee and total expense ratio were higher than but close to its peer group averages. After discussion, the Board concluded that the Fund's performance, management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

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

Profitability of the Adviser and Affiliates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFMCGSAN
3174455 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Emerging Markets Debt Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		8
Statement of Operations		9
Statements of Changes in Net Assets		10
Financial Highlights		11
Notes to Financial Statements		13
Investment Advisory Agreement Approval		22
Liquidity Risk Management Program		24
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

Emerging Markets Debt Portfolio

As a shareholder of the Emerging Markets Debt Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Emerging Markets Debt Portfolio Class I	$	1,000.00	$	963.50	$	1,019.19	$	5.57	$	5.72		1.14	%
Emerging Markets Debt Portfolio Class II		1,000.00		964.50		1,018.95		5.81		5.97		1.19

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Emerging Markets Debt Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (97.6%)
Angola (1.5%)
Sovereign (1.5%)
Angolan Government International Bond, 8.00%, 11/26/29 (a)	$	1,990	$	1,646
9.38%, 5/8/48 (a)		890		728
				2,374
Argentina (1.7%)
Corporate Bonds (1.1%)
Province of Santa Fe, 6.90%, 11/1/27 (a)		1,210		732
Provincia de Cordoba, 7.45%, 9/1/24 (a)		440		262
Provincia de Entre Rios Argentina, 8.75%, 2/8/25 (a)		1,470		661
				1,655
Sovereign (0.6%)
Argentine Republic Government International Bond, 7.50%, 4/22/26 (b)(c)		2,295		933
				2,588
Azerbaijan (1.5%)
Sovereign (1.5%)
Republic of Azerbaijan International Bond, 3.50%, 9/1/32		2,430		2,381
Bahrain (1.1%)
Sovereign (1.1%)
Bahrain Government International Bond, 7.50%, 9/20/47		1,530		1,713
Belarus (0.8%)
Sovereign (0.8%)
Republic of Belarus International Bond, 6.20%, 2/28/30 (a)		720		691
Republic of Belarus Ministry of Finance, 6.38%, 2/24/31 (a)		550		532
				1,223
Brazil (5.4%)
Corporate Bonds (2.9%)
Braskem Netherlands Finance BV, 4.50%, 1/31/30 (a)		1,030		944
CSN Islands XI Corp., 6.75%, 1/28/28 (a)		1,130		973
Minerva Luxembourg SA, 5.88%, 1/19/28 (a)		1,080		1,061
Petrobras Global Finance BV, 5.09%, 1/15/30 (a)		449		448
6.75%, 6/3/50		320		330
Rumo Luxembourg Sarl, 5.25%, 1/10/28		360		360
7.38%, 2/9/24		452		475
				4,591

	Face Amount (000)		Value (000)
Sovereign (2.5%)
Brazilian Government International Bond, 3.88%, 6/12/30	$	460	$	444
4.50%, 5/30/29		420		431
5.00%, 1/27/45		1,739		1,677
6.00%, 4/7/26		1,250		1,418
				3,970
				8,561
Chile (2.8%)
Corporate Bonds (1.2%)
Colbun SA, 3.15%, 3/6/30 (a)		990		1,003
Geopark Ltd., 6.50%, 9/21/24 (a)		890		821
				1,824
Sovereign (1.6%)
Chile Government International Bond, 3.50%, 1/25/50		1,350		1,522
3.86%, 6/21/47		230		274
Empresa Nacional del Petroleo, 4.75%, 12/6/21		761		789
				2,585
				4,409
China (5.3%)
Corporate Bond (0.6%)
Fufeng Group Ltd., 5.88%, 8/28/21		950		972
Sovereign (4.7%)
Sinopec Group Overseas Development 2012 Ltd., 4.88%, 5/17/42		1,090		1,407
Sinopec Group Overseas Development 2013 Ltd., 4.38%, 10/17/23		1,070		1,172
Sinopec Group Overseas Development 2018 Ltd., 2.95%, 11/12/29 (a)		1,600		1,682
Three Gorges Finance I Cayman Islands Ltd., 2.30%, 6/2/21 (a)		1,340		1,354
3.70%, 6/10/25		750		821
3.70%, 6/10/25 (a)		838		917
				7,353
				8,325
Colombia (2.5%)
Corporate Bonds (0.7%)
Millicom International Cellular SA, 6.63%, 10/15/26 (a)(d)		390		416
Termocandelaria Power Ltd., 7.88%, 1/30/29 (a)		610		643
				1,059

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Debt Portfolio

	Face Amount (000)		Value (000)
Sovereign (1.8%)
Colombia Government International Bond, 3.00%, 1/30/30	$	556	$	552
5.00%, 6/15/45		1,960		2,228
				2,780
				3,839
Costa Rica (0.8%)
Sovereign (0.8%)
Costa Rica Government International Bond, 6.13%, 2/19/31 (a)		840		728
7.16%, 3/12/45		710		596
				1,324
Croatia (0.3%)
Sovereign (0.3%)
Croatia Government International Bond, 6.00%, 1/26/24		400		459
Dominican Republic (2.8%)
Sovereign (2.8%)
Dominican Republic International Bond, 5.88%, 1/30/60 (a)		320		276
6.00%, 7/19/28 (a)		570		575
6.85%, 1/27/45 (a)		740		713
6.88%, 1/29/26 (a)		1,310		1,378
7.45%, 4/30/44 (a)		739		765
9.75%, 6/5/26 (a)	DOP	44,050		680
				4,387
Ecuador (1.8%)
Sovereign (1.8%)
Ecuador Government International Bond, 7.78%, 1/23/28 (b)(c)	$	520		216
8.88%, 10/23/27 (b)(c)		2,000		848
9.63%, 6/2/27 (b)(c)		800		344
9.65%, 12/13/26 (b)(c)		1,080		468
10.65%, 1/31/29 (a)(b)(c)		460		191
10.65%, 1/31/29 (b)(c)		1,900		789
				2,856
Egypt (3.6%)
Sovereign (3.6%)
Egypt Government International Bond, 4.75%, 4/16/26	EUR	510		546
6.38%, 4/11/31 (a)		1,300		1,356
6.59%, 2/21/28	$	1,000		990
7.50%, 1/31/27 (a)(d)		890		936
8.15%, 11/20/59 (a)		1,540		1,439
8.88%, 5/29/50 (a)		340		337
				5,604
El Salvador (1.5%)
Sovereign (1.5%)
El Salvador Government International Bond, 6.38%, 1/18/27		1,491		1,286
7.12%, 1/20/50 (a)		360		295
8.63%, 2/28/29 (a)		760		731
				2,312

	Face Amount (000)		Value (000)
Gabon (0.5%)
Sovereign (0.5%)
Republic of Gabon, 6.63%, 2/6/31 (a)	$	320	$	287
6.95%, 6/16/25 (a)		610		575
				862
Ghana (1.7%)
Sovereign (1.7%)
Ghana Government International Bond, 8.63%, 6/16/49 (a)		1,820		1,655
8.95%, 3/26/51 (a)		1,070		984
				2,639
Guatemala (1.2%)
Sovereign (1.2%)
Guatemala Government Bond, 4.88%, 2/13/28		1,410		1,509
6.13%, 6/1/50 (a)		320		371
				1,880
Honduras (0.4%)
Sovereign (0.4%)
Honduras Government International Bond, 5.63%, 6/24/30 (a)(d)		180		184
8.75%, 12/16/20		400		408
				592
Hungary (1.3%)
Sovereign (1.3%)
Hungary Government International Bond, 5.38%, 3/25/24		1,250		1,422
7.63%, 3/29/41		350		588
				2,010
India (0.5%)
Sovereign (0.5%)
Export-Import Bank of India, 3.38%, 8/5/26 (a)		790		816
Indonesia (6.2%)
Sovereign (6.2%)
Indonesia Government International Bond, 3.85%, 7/18/27		400		434
4.13%, 1/15/25		2,564		2,791
4.45%, 4/15/70		860		993
4.75%, 1/8/26 (a)		830		937
4.75%, 1/8/26		990		1,117
5.35%, 2/11/49		200		260
5.88%, 1/15/24		1,250		1,420
Pertamina Persero PT, 6.45%, 5/30/44 (a)		680		874
6.50%, 11/7/48 (a)		660		867
				9,693
Iraq (0.5%)
Sovereign (0.5%)
Iraq International Bond, 6.75%, 3/9/23 (a)		820		759

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Debt Portfolio

	Face Amount (000)		Value (000)
Jamaica (1.2%)
Sovereign (1.2%)
Jamaica Government International Bond, 7.88%, 7/28/45	$	720	$	883
8.00%, 3/15/39		860		1,065
				1,948
Jordan (0.5%)
Sovereign (0.5%)
Jordan Government International Bond, 7.38%, 10/10/47 (a)		840		866
Kazakhstan (2.0%)
Sovereign (2.0%)
Kazakhstan Government International Bond, 5.13%, 7/21/25 (a)		200		233
5.13%, 7/21/25		1,000		1,162
6.50%, 7/21/45		320		475
KazMunayGas National Co., JSC, 6.38%, 10/24/48 (a)		980		1,239
				3,109
Kenya (0.7%)
Sovereign (0.7%)
Kenya Government International Bond, 8.00%, 5/22/32 (a)		1,110		1,099
Lebanon (0.3%)
Sovereign (0.3%)
Lebanon Government International Bond, 6.85%, 3/23/27 - 5/25/29 (b)(c)		2,940		528
Lithuania (0.3%)
Sovereign (0.3%)
Lithuania Government International Bond, 6.63%, 2/1/22		430		469
Malaysia (0.5%)
Sovereign (0.5%)
Petronas Capital Ltd., 3.50%, 3/18/25		720		787
Mexico (6.7%)
Corporate Bond (0.8%)
Orbia Advance Corp SAB de CV, 5.50%, 1/15/48 (a)		1,240		1,307
Sovereign (5.9%)
Banco Nacional de Comercio Exterior SNC, 3.80%, 8/11/26 (a)		243		238
Mexican BonosSeries M, 7.50%, 6/3/27	MXN	18,115		879
Mexico Government International Bond, 3.75%, 1/11/28	$	990		1,032
4.15%, 3/28/27		1,244		1,340
4.50%, 4/22/29 (d)		410		446
4.60%, 1/23/46		580		600

	Face Amount (000)		Value (000)
Petroleos Mexicanos, 6.84%, 1/23/30 (a)	$	1,501	$	1,324
6.95%, 1/28/60 (a)		470		362
7.69%, 1/23/50		450		376
7.69%, 1/23/50 (a)		3,288		2,750
				9,347
				10,654
Mongolia (0.5%)
Sovereign (0.5%)
Mongolia Government International Bond, 5.63%, 5/1/23		740		743
Nigeria (2.7%)
Corporate Bond (0.6%)
IHS Netherlands Holdco BV, 8.00%, 9/18/27 (a)		950		967
Sovereign (2.1%)
Nigeria Government International Bond, 6.38%, 7/12/23		270		276
6.50%, 11/28/27 (a)		920		878
7.14%, 2/23/30 (a)		860		806
9.25%, 1/21/49 (a)		1,400		1,422
				3,382
				4,349
Oman (1.3%)
Sovereign (1.3%)
Oman Government International Bond, 6.00%, 8/1/29 (a)		2,200		2,057
Panama (3.1%)
Sovereign (3.1%)
Aeropuerto Internacional de Tocumen SA, 5.63%, 5/18/36 (a)		1,245		1,341
Panama Government International Bond, 3.87%, 7/23/60		470		535
4.00%, 9/22/24 (d)		1,264		1,378
4.50%, 4/1/56		450		554
8.88%, 9/30/27		763		1,086
				4,894
Paraguay (2.0%)
Sovereign (2.0%)
Paraguay Government International Bond, 4.63%, 1/25/23 (a)		320		337
4.70%, 3/27/27 (a)		523		573
4.95%, 4/28/31 (a)		600		671
5.40%, 3/30/50 (a)		610		709
6.10%, 8/11/44 (a)		760		938
				3,228
Peru (3.5%)
Sovereign (3.5%)
Corporación Financiera de Desarrollo SA, 5.25%, 7/15/29 (a)		998		1,051
Peruvian Government International Bond, 5.63%, 11/18/50 (d)		890		1,408
6.55%, 3/14/37		1,150		1,754

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Debt Portfolio

	Face Amount (000)		Value (000)
Sovereign (cont'd)
Petroleos del Peru SA, 4.75%, 6/19/32 (a)	$	1,140	$	1,269
				5,482
Philippines (2.2%)
Sovereign (2.2%)
Philippine Government International Bond, 3.95%, 1/20/40		386		449
9.50%, 2/2/30		1,849		3,016
				3,465
Poland (1.6%)
Sovereign (1.6%)
Republic of Poland Government International Bond, 3.00%, 3/17/23		1,290		1,368
4.00%, 1/22/24		800		890
5.00%, 3/23/22		250		268
				2,526
Qatar (3.6%)
Sovereign (3.6%)
Qatar Government International Bond, 3.75%, 4/16/30 (a)		760		867
4.00%, 3/14/29		950		1,095
4.82%, 3/14/49 (a)		2,870		3,785
				5,747
Romania (0.4%)
Sovereign (0.4%)
Romanian Government International Bond, 4.38%, 8/22/23		600		639
Russia (4.1%)
Sovereign (4.1%)
Russian Foreign Bond — Eurobond, 4.50%, 4/4/22		2,200		2,328
5.63%, 4/4/42		3,000		4,079
				6,407
Saudi Arabia (2.0%)
Sovereign (2.0%)
Saudi Government International Bond, 4.38%, 4/16/29		1,300		1,515
5.25%, 1/16/50 (a)		1,280		1,649
				3,164
Senegal (0.6%)
Sovereign (0.6%)
Senegal Government International Bond, 6.25%, 5/23/33 (a)		920		940
South Africa (1.2%)
Sovereign (1.2%)
Eskom Holdings SOC Ltd., 7.13%, 2/11/25		760		707
8.45%, 8/10/28 (a)		1,220		1,144
				1,851

	Face Amount (000)		Value (000)
Sri Lanka (1.5%)
Sovereign (1.5%)
Sri Lanka Government International Bond, 6.20%, 5/11/27	$	2,000	$	1,315
7.55%, 3/28/30		300		197
7.85%, 3/14/29		1,300		860
				2,372
Turkey (2.5%)
Sovereign (2.5%)
Turkey Government International Bond, 4.88%, 4/16/43		630		488
5.63%, 3/30/21 (d)		1,204		1,227
6.88%, 3/17/36		700		683
7.25%, 12/23/23		1,480		1,545
				3,943
Ukraine (2.5%)
Sovereign (2.5%)
Ukraine Government International Bond, 7.75%, 9/1/23 - 9/1/26		3,730		3,912
United Arab Emirates (2.3%)
Corporate Bond (0.5%)
DP World Crescent Ltd., 4.85%, 9/26/28		740		782
Sovereign (1.8%)
Abu Dhabi Government International Bond, 2.50%, 9/30/29 (a)		1,750		1,839
3.13%, 5/3/26		938		1,020
				2,859
				3,641
Uruguay (1.8%)
Sovereign (1.8%)
Uruguay Government International Bond, 4.38%, 10/27/27		1,100		1,261
5.10%, 6/18/50		1,220		1,579
				2,840
Venezuela (0.3%)
Sovereign (0.3%)
Petroleos de Venezuela SA, 6.00%, 11/15/26 (b)(c)		15,740		456
Total Fixed Income Securities (Cost $164,191)				153,722
	No. of Warrants
Warrants (0.0%)
Nigeria (0.0%)
Central Bank of Nigeria Bond, 0.00% expires 11/15/20		750		9
Venezuela (0.0%)
Venezuela Government International Bond, Oil-Linked Payment Obligation, 0.00% expires 4/15/20		2,750		8
Total Warrants (Cost $—)				17

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Debt Portfolio

	Shares		Value (000)
Short-Term Investments (2.4%)
Securities held as Collateral on Loaned Securities (0.9%)
Investment Company (0.7%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note H)		1,054,337	$	1,054
	Face Amount (000)
Repurchase Agreements (0.2%)
HSBC Securities USA, Inc., (0.07%, dated 6/30/20, due 7/1/20; proceeds $104; fully collateralized by a U.S. Government obligation; 0.50% due 3/15/23; valued at $106)	$	104		104
Merrill Lynch & Co., Inc., (0.07%, dated 6/30/20, due 7/1/20; proceeds $182; fully collateralized by U.S. Government obligations; 1.38% – 3.88% due 9/30/20 – 8/15/40; valued at $186)		182		182
				286
Total Securities held as Collateral on Loaned Securities (Cost $1,340)				1,340
	Shares
Investment Company (1.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note H) (Cost $2,416)		2,415,527		2,416
Total Short-Term Investments (Cost $3,756)				3,756
Total Investments (100.0%) (Cost $167,947) Including $4,561 of Securities Loaned (e)(f)				157,495
Other Assets in Excess of Liabilities (0.0%) (g)				39
Net Assets (100.0%)			$	157,534

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

(b) Issuer in bankruptcy.

(d) All or a portion of this security was on loan at June 30, 2020.

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

(f) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $9,746,000 and the aggregate gross unrealized depreciation is approximately $20,193,000, resulting in net unrealized depreciation of approximately $10,447,000.

(g) Amount is less than 0.05%.

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at June 30, 2020:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (000)
Citibank NA	$	751	EUR	670	9/10/20	$	3
JPMorgan Chase Bank NA	EUR	2,350	$	2,647	9/10/20		2
						$	5

DOP — Dominican Peso

EUR — Euro

MXN — Mexican Peso

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Sovereign		90.0	%
Corporate Bonds		8.4
Other**		1.6
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2020.

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

*** Does not include open foreign currency forward exchange contracts with total unrealized appreciation of approximately $5,000.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Emerging Markets Debt Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $164,477)	$	154,025
Investment in Security of Affiliated Issuer, at Value (Cost $3,470)		3,470
Total Investments in Securities, at Value (Cost $167,947)		157,495
Foreign Currency, at Value (Cost $33)		26
Interest Receivable		2,383
Due from Broker		41
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		5
Receivable for Fund Shares Sold		3
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		23
Total Assets		159,976
Liabilities:
Collateral on Securities Loaned, at Value		1,340
Payable for Investments Purchased		360
Payable for Advisory Fees		289
Deferred Capital Gain Country Tax		191
Payable for Fund Shares Redeemed		100
Payable for Servicing Fees		76
Payable for Professional Fees		38
Payable for Custodian Fees		10
Payable for Administration Fees		10
Payable for Transfer Agency Fees		2
Payable for Distribution Fees — Class II Shares		1
Other Liabilities		25
Total Liabilities		2,442
NET ASSETS	$	157,534
Net Assets Consist of:
Paid-in-Capital	$	179,863
Total Accumulated Loss		(22,329	)
Net Assets	$	157,534
CLASS I:
Net Assets	$	138,924
Net Asset Value, Offering and Redemption Price Per Share Applicable to 18,767,946 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	7.40
CLASS II:
Net Assets	$	18,610
Net Asset Value, Offering and Redemption Price Per Share Applicable to 2,535,443 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	7.34
⁽¹⁾Including:
Securities on Loan, at Value:	$	4,561

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Emerging Markets Debt Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $18 of Foreign Taxes Withheld)	$	4,548
Dividends from Security of Affiliated Issuer (Note H)		26
Dividends from Securities of Unaffiliated Issuers		11
Income from Securities Loaned — Net		7
Total Investment Income		4,592
Expenses:
Advisory Fees (Note B)		637
Servicing Fees (Note D)		142
Administration Fees (Note C)		68
Professional Fees		67
Distribution Fees — Class II Shares (Note E)		24
Custodian Fees (Note G)		15
Shareholder Reporting Fees		14
Pricing Fees		8
Transfer Agency Fees (Note F)		5
Directors' Fees and Expenses		4
Other Expenses		11
Total Expenses		995
Waiver of Distribution Fees — Class II Shares (Note E)		(19	)
Rebate from Morgan Stanley Affiliate (Note H)		(5	)
Net Expenses		971
Net Investment Income		3,621
Realized Gain (Loss):
Investments Sold		2,953
Foreign Currency Forward Exchange Contracts		(85	)
Foreign Currency Translation		(25	)
Net Realized Gain		2,843
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $215)		(15,702	)
Foreign Currency Forward Exchange Contracts		26
Foreign Currency Translation		(6	)
Net Change in Unrealized Appreciation (Depreciation)		(15,682	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(12,839	)
Net Decrease in Net Assets Resulting from Operations	$	(9,218	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Emerging Markets Debt Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	3,621		$	9,689
Net Realized Gain (Loss)		2,843			(5,209	)
Net Change in Unrealized Appreciation (Depreciation)		(15,682	)		21,132
Net Increase (Decrease) in Net Assets Resulting from Operations		(9,218	)		25,612
Dividends and Distributions to Shareholders:
Class I		—			(9,202	)
Class II		—			(1,118	)
Total Dividends and Distributions to Shareholders		—			(10,320	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		6,957			16,559
Distributions Reinvested		—			9,202
Redeemed		(30,117	)		(34,616	)
Class II:
Subscribed		1,024			2,508
Distributions Reinvested		—			1,118
Redeemed		(2,657	)		(3,602	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(24,793	)		(8,831	)
Total Increase (Decrease) in Net Assets		(34,011	)		6,461
Net Assets:
Beginning of Period		191,545			185,084
End of Period	$	157,534		$	191,545
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		967			2,195
Shares Issued on Distributions Reinvested		—			1,219
Shares Redeemed		(4,382	)		(4,595	)
Net Decrease in Class I Shares Outstanding		(3,415	)		(1,181	)
Class II:
Shares Subscribed		139			336
Shares Issued on Distributions Reinvested		—			149
Shares Redeemed		(382	)		(480	)
Net Increase (Decrease) in Class II Shares Outstanding		(243	)		5

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Emerging Markets Debt Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	7.68		$	7.09		$	8.08		$	7.79		$	7.45		$	7.95
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.15			0.38			0.36			0.42			0.45			0.41
Net Realized and Unrealized Gain (Loss)		(0.43	)		0.62			(0.92	)		0.32			0.34			(0.48	)
Total from Investment Operations		(0.28	)		1.00			(0.56	)		0.74			0.79			(0.07	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.41	)		(0.43	)		(0.45	)		(0.45	)		(0.43	)
Net Asset Value, End of Period	$	7.40		$	7.68		$	7.09		$	8.08		$	7.79		$	7.45
Total Return⁽³⁾		(3.65	)%⁽⁶⁾		14.25	%		(6.94	)%		9.71	%		10.55	%		(1.12	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	138,924		$	170,382		$	165,582		$	219,994		$	200,455		$	209,794
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			1.08	%		N/A
Ratio of Expenses After Expense Limitation		1.14	%⁽⁴⁾⁽⁷⁾		1.11	%⁽⁴⁾		1.11	%⁽⁴⁾		1.10	%⁽⁴⁾		1.05	%⁽⁴⁾		1.09	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Non-Operating Expenses		N/A			N/A			1.11	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		4.27	%⁽⁴⁾⁽⁷⁾		5.04	%⁽⁴⁾		4.83	%⁽⁴⁾		5.22	%⁽⁴⁾		5.72	%⁽⁴⁾		5.24	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.00	%⁽⁵⁾		0.01	%		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		30	%⁽⁶⁾		40	%		32	%		46	%		53	%		37	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation would have been 0.03% higher and the Ratio of Net Investment Income would have been 0.03% lower had the custodian not reimbursed the Fund.

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

(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.
11

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Emerging Markets Debt Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	7.61		$	7.03		$	8.02		$	7.74		$	7.40		$	7.90
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.15			0.37			0.36			0.41			0.44			0.40
Net Realized and Unrealized Gain (Loss)		(0.42	)		0.62			(0.92	)		0.32			0.34			(0.48	)
Total from Investment Operations		(0.27	)		0.99			(0.56	)		0.73			0.78			(0.08	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.41	)		(0.43	)		(0.45	)		(0.44	)		(0.42	)
Net Asset Value, End of Period	$	7.34		$	7.61		$	7.03		$	8.02		$	7.74		$	7.40
Total Return⁽³⁾		(3.55	)%⁽⁶⁾		14.17	%		(7.04	)%		9.58	%		10.58	%		(1.17	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	18,610		$	21,163		$	19,502		$	22,144		$	19,661		$	18,270
Ratio of Expenses Before Expense Limitation		1.39	%⁽⁷⁾		1.37	%		1.36	%		1.36	%		1.33	%		1.37	%
Ratio of Expenses After Expense Limitation		1.19	%⁽⁴⁾⁽⁷⁾		1.16	%⁽⁴⁾		1.16	%⁽⁴⁾		1.15	%⁽⁴⁾		1.10	%⁽⁴⁾		1.14	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Non-Operating Expenses		N/A			N/A			1.16	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		4.22	%⁽⁴⁾⁽⁷⁾		4.99	%⁽⁴⁾		4.78	%⁽⁴⁾		5.17	%⁽⁴⁾		5.67	%⁽⁴⁾		5.19	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.00	%⁽⁵⁾		0.01	%		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		30	%⁽⁶⁾		40	%		32	%		46	%		53	%		37	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class II shares. The Ratio of Expenses After Expense Limitation would have been 0.03% higher and the Ratio of Net Investment Income would have been 0.03% lower had the custodian not reimbursed the Fund.

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Emerging Markets Debt Portfolio. The Fund seeks high total return by investing primarily in fixed income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries. The Fund offers two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (2) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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; (3) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (4) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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 following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Corporate Bonds	$	—	$	13,157	$	—	$	13,157
Sovereign		—		140,565		—		140,565
Total Fixed Income Securities		—		153,722		—		153,722
Warrants		—		17		—		17
Short-Term Investments
Investment Company		3,470		—		—		3,470
Repurchase Agreements		—		286		—		286
Total Short-Term Investments		3,470		286		—		3,756
Foreign Currency Forward Exchange Contracts		—		5		—		5
Total Assets	$	3,470	$	154,030	$	—	$	157,500

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

3. 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,

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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.

transactions for the period is reflected in the Statement of Operations.

5. Structured Investments: The Fund invested a portion of its assets in structured investments. A structured investment is a derivative security designed to offer a return linked to a particular underlying security, currency, commodity or market. Structured investments may come in various forms including notes (such as exchange-traded notes), warrants and options to purchase securities. The Fund will typically use structured investments to gain exposure to a permitted underlying security, currency, commodity or market when direct access to a market is limited or inefficient from a tax or cost standpoint. There can be no assurance that structured investments will trade at the same price or have the same value as the underlying security, currency, commodity or market. Investments in structured investments involve risks including issuer risk, counterparty risk and market risk. Holders of structured investments bear risks of the underlying investment and are subject to issuer or counterparty risk because the Fund is relying on the creditworthiness of such issuer or counterparty and has no rights with respect to the underlying investment. Certain structured investments may be thinly traded or have a limited trading market and may have the effect of increasing the Fund's illiquidity to the extent that the Fund, at a particular time, may be unable to find qualified buyers for these securities.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2020:

Asset Derivatives
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward
Exchange
Contracts

Unrealized Appreciation
on Foreign Currency
Forward Exchange
Contracts

Currency Risk

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(85	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	26

At June 30, 2020, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities(a) (000)
Foreign Currency Forward Exchange Contracts		$5		$—

(a) 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 June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Pledged (000)		Net Amount (not less than $0) (000)
Citibank NA	$	3	$	—	$	—	$	3
JPMorgan Chase Bank NA		2		—		—		2
Total	$	5	$	—	$	—	$	5

For the six months ended June 30, 2020, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount				$	3,378,000

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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

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

The following table presents financial instruments that are subject to enforceable netting arrangements as of June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	4,561	(b)	$	—	$	(4,561	)(c)(d)	$	0

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

(c) The Fund received cash collateral of approximately $1,340,000, 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 $3,309,000 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.

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 June 30, 2020:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Corporate Bonds	$	146	$	—	$	—	$	—	$	146
Sovereign		1,194		—		—		—		1,194
Total Borrowings	$	1,340	$	—	$	—	$	—	$	1,340
Gross amount of recognized liabilities for securities lending transactions									$	1,340

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. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

loss in the event of a failure to complete the transaction by the counterparty.

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.

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 million				Next $500 million				Over $1 billion
	0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2020, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.74% 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 1.30% for Class I shares and 1.35% for Class II 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 six months ended June 30, 2020.

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.

D. Servicing Fees: The Company accrues daily and pays quarterly a servicing fee of up to 0.17% of the average daily

value of shares of the Fund held in an insurance company's account. Certain insurance companies have entered into a servicing agreement with the Company to provide administrative and other contract-owner related services on behalf of the Fund.

E. Distribution 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 Distributor of the Fund and provides the Fund's Class II shareholders with distribution services pursuant to a Distribution Plan (the "Plan") in accordance with Rule 12b-1 under the Act. Under the Plan, the Fund is authorized to pay the Distributor a distribution fee, which is accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class II shares. The Distributor has agreed to waive 0.20% of the 0.25% distribution fee that it may receive. This fee waiver 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 waiver when they deem such action is inappropriate. For the six months ended June 30, 2020, this waiver amounted to approximately $19,000.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $49,052,000 and $62,723,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2020.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2020, 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 six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	9,041			$	32,339			$	37,910			$	26

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	3,470

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.

2019 Distributions Paid From:		2018 Distributions Paid From:
Ordinary Income (000)		Ordinary Income (000)
$	10,320	$	12,224

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2019.

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	7,189			$	—

At December 31, 2019, the Fund had available for federal income tax purposes unused short-term and long-term capital

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

losses of approximately $1,564,000 and $22,011,000, 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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one- and five-year periods but below its peer group average for the three-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Fund's management fee was higher than its peer group average and the total expense ratio was higher than but close to its peer group average. After discussion, the Board concluded that the Fund's (i) performance and total expense ratio were competitive with its peer group averages and (ii) management fee was acceptable.

Economies of Scale

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Profitability of the Adviser and Affiliates

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Sub-Adviser

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFEMDSAN
3173370 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Emerging Markets Equity Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		5
Statement of Operations		6
Statements of Changes in Net Assets		7
Financial Highlights		8
Notes to Financial Statements		10
Investment Advisory Agreement Approval		18
Liquidity Risk Management Program		20
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

Emerging Markets Equity Portfolio

As a shareholder of the Emerging Markets Equity Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Emerging Markets Equity Portfolio Class I	$	1,000.00	$	878.00	$	1,018.65	$	5.84	$	6.27		1.25	%
Emerging Markets Equity Portfolio Class II		1,000.00		877.60		1,018.40		6.07		6.52		1.30

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Emerging Markets Equity Portfolio

	Shares		Value (000)
Common Stocks (97.9%)
Argentina (0.9%)
Globant SA (a)		12,128	$	1,817
Brazil (7.4%)
Atacadao SA		460,541		1,673
Hapvida Participacoes e Investimentos SA		155,697		1,780
Localiza Rent a Car SA		254,761		1,917
Lojas Renner SA		242,377		1,863
Pagseguro Digital Ltd., Class A (a)		59,585		2,106
Petroleo Brasileiro SA		362,187		1,488
Petroleo Brasileiro SA (Preference)		401,347		1,590
Rumo SA (a)		455,669		1,884
				14,301
China (36.6%)
Alibaba Group Holding Ltd. (a)(b)		110,300		2,976
Alibaba Group Holding Ltd. ADR (a)		48,095		10,374
Anhui Conch Cement Co., Ltd., Class A		280,084		2,107
Bank of China Ltd. H Shares (b)		6,438,000		2,385
China Construction Bank Corp. H Shares (b)		4,441,230		3,612
China International Capital Corp., Ltd. H Shares (a)(b)(c)		516,000		1,021
China Mengniu Dairy Co., Ltd. (a)(b)		798,000		3,060
China Mobile Ltd. (b)		166,000		1,121
China Overseas Land & Investment Ltd. (b)		426,000		1,301
China Resources Beer Holdings Co., Ltd. (b)		470,000		2,624
China Resources Land Ltd. (b)		238,000		910
CSPC Pharmaceutical Group Ltd. (b)		1,106,400		2,095
Hua Hong Semiconductor Ltd. (a)(b)(c)		568,000		1,991
Jiangsu Hengrui Medicine Co., Ltd., Class A		83,758		1,095
Joincare Pharmaceutical Group Industry Co. Ltd.		352,400		810
Kweichow Moutai Co., Ltd., Class A		20,191		4,193
New Oriental Education & Technology Group, Inc. ADR (a)		19,213		2,502
Ping An Insurance Group Co. of China Ltd., Class A		130,889		1,325
Ping An Insurance Group Co. of China Ltd. H Shares (b)		101,500		1,012
Shandong Weigao Group Medical Polymer Co., Ltd. H Shares (b)		418,000		933
Shenzhou International Group Holdings Ltd. (b)		194,200		2,361
Sino Biopharmaceutical Ltd. (b)		1,000,000		1,885
TAL Education Group ADR (a)		26,677		1,824
Tencent Holdings Ltd. (b)		230,800		14,789
Universal Scientific Industrial Shanghai Co., Ltd., Class A		415,195		1,291
Yihai International Holding Ltd. (a)(b)		112,000		1,154
				70,751
Hong Kong (0.4%)
Budweiser Brewing Co. APAC Ltd.		276,900		811
Hungary (1.1%)
Richter Gedeon Nyrt		102,600		2,129

	Shares		Value (000)
India (6.1%)
Bharti Airtel Ltd. (a)		238,726	$	1,773
Eicher Motors Ltd.		3,447		837
HDFC Bank Ltd. ADR		29,965		1,362
ICICI Bank Ltd.		299,297		1,395
ICICI Prudential Life Insurance Co., Ltd.		165,796		937
Infosys Ltd.		169,337		1,646
Infosys Ltd. ADR		41,206		398
Larsen & Toubro Ltd.		57,330		720
Marico Ltd.		24,269		113
Reliance Industries Partly Paid (a)		21,678		229
Reliance Industries Ltd.		67,152		1,528
Shree Cement Ltd.		3,053		933
				11,871
Indonesia (2.4%)
Astra International Tbk PT		2,383,000		806
Bank Central Asia Tbk PT		1,608,300		3,218
Bank Rakyat Indonesia Persero Tbk PT		2,495,300		532
				4,556
Korea, Republic of (7.8%)
Hotel Shilla Co., Ltd.		10,015		596
Kakao Corp.		5,765		1,294
NCSoft Corp.		3,135		2,332
Samsung Biologics Co., Ltd. (a)		1,841		1,194
Samsung Electronics Co., Ltd.		200,582		8,879
SK Hynix, Inc.		12,416		887
				15,182
Mexico (2.4%)
Grupo Aeroportuario del Centro Norte SAB de CV (a)		176,315		820
Grupo Financiero Banorte SAB de CV Series O		466,814		1,615
Wal-Mart de Mexico SAB de CV		945,486		2,261
				4,696
Peru (1.2%)
Cia de Minas Buenaventura SAA ADR		116,573		1,065
Credicorp Ltd.		9,647		1,290
				2,355
Philippines (0.4%)
Jollibee Foods Corp.		252,770		714
Poland (2.8%)
Jeronimo Martins SGPS SA		92,295		1,615
LPP SA (a)		958		1,462
PLAY Communications SA		184,088		1,422
Santander Bank Polska SA (a)		23,931		1,068
				5,567
Russia (6.7%)
LUKOIL PJSC ADR		32,848		2,442
Novatek PJSC GDR		16,670		2,363
Novolipetsk Steel PJSC GDR		58,418		1,163

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Equity Portfolio

	Shares		Value (000)
TCS Group Holding PLC GDR	$	72,311	$	1,468
X5 Retail Group N.V. GDR		72,546		2,573
Yandex N.V., Class A (a)		56,751		2,838
				12,847
South Africa (2.3%)
Bidvest Group Ltd. (The)		160,585		1,318
Capitec Bank Holdings Ltd.		34,779		1,728
Clicks Group Ltd.		115,477		1,402
				4,448
Taiwan (11.9%)
ASE Technology Holding Co., Ltd.		546,738		1,259
CTBC Financial Holding Co., Ltd.		1,552,000		1,076
Delta Electronics, Inc.		123,000		702
Eclat Textile Co., Ltd.		54,000		629
Largan Precision Co., Ltd.		3,000		417
MediaTek, Inc.		138,000		2,728
Mega Financial Holding Co., Ltd.		1,258,000		1,322
Nanya Technology Corp.		322,000		672
President Chain Store Corp.		72,000		724
Taiwan Semiconductor Manufacturing Co., Ltd.		1,155,000		12,335
Vanguard International Semiconductor Corp.		427,000		1,136
				23,000
Thailand (1.0%)
Central Retail Corp. PCL (a)		30,100		32
CP ALL PCL (Foreign Shares) (a)		508,100		1,120
Muangthai Capital PCL (Foreign Shares) (a)		452,800		769
				1,921
Turkey (1.4%)
Akbank T.A.S. (a)		2,407,713		2,141
Migros Ticaret AS (a)		116,903		658
				2,799
United Kingdom (1.7%)
Avast PLC		180,429		1,179
Mondi PLC		111,335		2,090
				3,269
United States (3.4%)
ASML Holding NV		3,383		1,245
EPAM Systems, Inc. (a)		4,056		1,022
MercadoLibre, Inc. (a)		2,140		2,109
NIKE, Inc., Class B		21,599		2,118
				6,494
Total Common Stocks (Cost $142,877)				189,528
Short-Term Investments (2.0%)
Securities held as Collateral on Loaned Securities (0.2%)
Investment Company (0.2%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note H) (Cost $508)		507,764		508

	Shares		Value (000)
Investment Company (1.8%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note H) (Cost $3,407)		3,406,889	$	3,407
Total Short-Term Investments (Cost $3,915)				3,915
Total Investments (99.9%) (Cost $146,792) Including $2,545 of Securities Loaned (d)(e)				193,443
Other Assets in Excess of Liabilities (0.1%)				150
Net Assets (100.0%)			$	193,593

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(d) The approximate fair value and percentage of net assets, $138,417,000 and 71.5%, 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 June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $58,043,000 and the aggregate gross unrealized depreciation is approximately $11,392,000, resulting in net unrealized appreciation of approximately $46,651,000.

ADR American Depositary Receipt.

GDR Global Depositary Receipt.

PJSC Public Joint Stock Company.

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		47.6	%
Banks		11.8
Semiconductors & Semiconductor Equipment		11.6
Interactive Media & Services		9.8
Internet & Direct Marketing Retail		8.0
Food & Staples Retailing		6.2
Oil, Gas & Consumable Fuels		5.0
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2020.

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Emerging Markets Equity Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $142,877)	$	189,528
Investment in Security of Affiliated Issuer, at Value (Cost $3,915)		3,915
Total Investments in Securities, at Value (Cost $146,792)		193,443
Foreign Currency, at Value (Cost $760)		760
Receivable for Investments Sold		1,342
Dividends Receivable		459
Tax Reclaim Receivable		67
Receivable for Fund Shares Sold		40
Receivable from Securities Lending Income		3
Receivable from Affiliate		—	@
Other Assets		29
Total Assets		196,143
Liabilities:
Payable for Investments Purchased		1,327
Collateral on Securities Loaned, at Value		508
Payable for Advisory Fees		343
Payable for Servicing Fees		89
Payable for Fund Shares Redeemed		77
Payable for Custodian Fees		53
Deferred Capital Gain Country Tax		50
Payable for Professional Fees		44
Payable for Administration Fees		13
Payable for Transfer Agency Fees		3
Payable for Distribution Fees — Class II Shares		—	@
Other Liabilities		43
Total Liabilities		2,550
NET ASSETS	$	193,593
Net Assets Consist of:
Paid-in-Capital	$	156,673
Total Distributable Earnings		36,920
Net Assets	$	193,593
CLASS I:
Net Assets	$	134,479
Net Asset Value, Offering and Redemption Price Per Share Applicable to 9,579,268 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	14.04
CLASS II:
Net Assets	$	59,114
Net Asset Value, Offering and Redemption Price Per Share Applicable to 4,227,296 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	13.98
⁽¹⁾Including:
Securities on Loan, at Value:	$	2,545

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Emerging Markets Equity Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $199 of Foreign Taxes Withheld)	$	1,631
Dividends from Security of Affiliated Issuer (Note H)		9
Income from Securities Loaned — Net		9
Total Investment Income		1,649
Expenses:
Advisory Fees (Note B)		829
Servicing Fees (Note D)		155
Custodian Fees (Note G)		93
Administration Fees (Note C)		78
Distribution Fees — Class II Shares (Note E)		74
Professional Fees		68
Shareholder Reporting Fees		23
Transfer Agency Fees (Note F)		7
Directors' Fees and Expenses		4
Pricing Fees		4
Other Expenses		9
Total Expenses		1,344
Waiver of Distribution Fees — Class II Shares (Note E)		(59	)
Waiver of Advisory Fees (Note B)		(51	)
Rebate from Morgan Stanley Affiliate (Note H)		(2	)
Net Expenses		1,232
Net Investment Income		417
Realized Loss:
Investments Sold		(15,022	)
Foreign Currency Forward Exchange Contracts		(377	)
Foreign Currency Translation		(159	)
Net Realized Loss		(15,558	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $75)		(13,909	)
Foreign Currency Forward Exchange Contracts		146
Foreign Currency Translation		(16	)
Net Change in Unrealized Appreciation (Depreciation)		(13,779	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(29,337	)
Net Decrease in Net Assets Resulting from Operations	$	(28,920	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Emerging Markets Equity Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	417		$	3,148
Net Realized Gain (Loss)		(15,558	)		5,358
Net Change in Unrealized Appreciation (Depreciation)		(13,779	)		34,480
Net Increase (Decrease) in Net Assets Resulting from Operations		(28,920	)		42,986
Dividends and Distributions to Shareholders:
Class I		—			(12,545	)
Class II		—			(5,567	)
Total Dividends and Distributions to Shareholders		—			(18,112	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		5,688			13,470
Distributions Reinvested		—			12,545
Redeemed		(14,863	)		(55,300	)
Class II:
Subscribed		5,796			7,329
Distributions Reinvested		—			5,567
Redeemed		(9,564	)		(16,733	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(12,943	)		(33,122	)
Total Decrease in Net Assets		(41,863	)		(8,248	)
Net Assets:
Beginning of Period		235,456			243,704
End of Period	$	193,593		$	235,456
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		432			885
Shares Issued on Distributions Reinvested		—			840
Shares Redeemed		(1,097	)		(3,583	)
Net Decrease in Class I Shares Outstanding		(665	)		(1,858	)
Class II:
Shares Subscribed		418			495
Shares Issued on Distributions Reinvested		—			374
Shares Redeemed		(689	)		(1,110	)
Net Decrease in Class II Shares Outstanding		(271	)		(241	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Emerging Markets Equity Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	15.99		$	14.48		$	17.65		$	13.16		$	12.39		$	13.98
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.03			0.20			0.14			0.09			0.10			0.08
Net Realized and Unrealized Gain (Loss)		(1.98	)		2.56			(3.23	)		4.52			0.73			(1.56	)
Total from Investment Operations		(1.95	)		2.76			(3.09	)		4.61			0.83			(1.48	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.17	)		(0.08	)		(0.12	)		(0.06	)		(0.11	)
Net Realized Gain		—			(1.08	)		—			—			—			—
Total Distributions		—			(1.25	)		(0.08	)		(0.12	)		(0.06	)		(0.11	)
Net Asset Value, End of Period	$	14.04		$	15.99		$	14.48		$	17.65		$	13.16		$	12.39
Total Return⁽³⁾		(12.20	)%⁽⁸⁾		19.59	%		(17.47	)%		35.06	%		6.74	%		(10.69	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	134,479		$	163,794		$	175,300		$	238,026		$	174,423		$	204,032
Ratio of Expenses Before Expense Limitation		1.30	%⁽⁹⁾		1.27	%		N/A			1.32	%		1.39	%		1.64	%
Ratio of Expenses After Expense Limitation		1.25	%⁽⁴⁾⁽⁹⁾		1.25	%⁽⁴⁾		1.22	%⁽⁴⁾		1.25	%⁽⁴⁾		1.28	%⁽⁴⁾⁽⁶⁾		1.40	%⁽⁴⁾⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Non-Operating Expenses		N/A			1.25	%⁽⁴⁾		1.22	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.44	%⁽⁴⁾⁽⁹⁾		1.33	%⁽⁴⁾		0.86	%⁽⁴⁾		0.56	%⁽⁴⁾		0.74	%⁽⁴⁾		0.55	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		30	%⁽⁸⁾		36	%		42	%		37	%		34	%		38	%

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

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

(5) Effective September 30, 2015, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class I shares. Prior to September 30, 2015, the maximum ratio was 1.42% for Class I shares.

(6) Effective September 30, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class I shares. Prior to September 30, 2016, the maximum ratio was 1.35% for Class I shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Emerging Markets Equity Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	15.93		$	14.44		$	17.59		$	13.11		$	12.35		$	13.93
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.03			0.19			0.13			0.08			0.09			0.07
Net Realized and Unrealized Gain (Loss)		(1.98	)		2.54			(3.21	)		4.51			0.73			(1.55	)
Total from Investment Operations		(1.95	)		2.73			(3.08	)		4.59			0.82			(1.48	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.16	)		(0.07	)		(0.11	)		(0.06	)		(0.10	)
Net Realized Gain		—			(1.08	)		—			—			—			—
Total Distributions		—			(1.24	)		(0.07	)		(0.11	)		(0.06	)		(0.10	)
Net Asset Value, End of Period	$	13.98		$	15.93		$	14.44		$	17.59		$	13.11		$	12.35
Total Return⁽³⁾		(12.24	)%⁽⁸⁾		19.51	%		(17.51	)%		35.06	%		6.62	%		(10.71	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	59,114		$	71,662		$	68,404		$	89,249		$	76,392		$	73,325
Ratio of Expenses Before Expense Limitation		1.55	%⁽⁹⁾		1.52	%		1.48	%		1.57	%		1.64	%		1.92	%
Ratio of Expenses After Expense Limitation		1.30	%⁽⁴⁾⁽⁹⁾		1.30	%⁽⁴⁾		1.27	%⁽⁴⁾		1.30	%⁽⁴⁾		1.33	%⁽⁴⁾⁽⁶⁾		1.45	%⁽⁴⁾⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Non- Operating Expenses		N/A			1.30	%⁽⁴⁾		1.27	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.39	%⁽⁴⁾⁽⁹⁾		1.28	%⁽⁴⁾		0.81	%⁽⁴⁾		0.51	%⁽⁴⁾		0.69	%⁽⁴⁾		0.50	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		30	%⁽⁸⁾		36	%		42	%		37	%		34	%		38	%

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

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

(5) Effective September 30, 2015, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.40% for Class II shares. Prior to September 30, 2015, the maximum ratio was 1.47% for Class II shares.

(6) Effective September 30, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.30% for Class II shares. Prior to September 30, 2016, the maximum ratio was 1.40% for Class II shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Emerging Markets Equity 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 two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

cial exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

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

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

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Automobiles	$	—	$	1,643	$	—	$	1,643
Banks		4,267		18,477		—		22,744
Beverages		—		7,628		—		7,628
Capital Markets		—		1,021		—		1,021

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Commercial Banks	$	—	$	1,468	$	—	$	1,468
Construction & Engineering		—		720		—		720
Construction Materials		—		3,040		—		3,040
Consumer Finance		—		769		—		769
Diversified Consumer Services		4,326		—		—		4,326
Electronic Equipment, Instruments & Components		—		2,410		—		2,410
Entertainment		—		2,332		—		2,332
Food & Staples Retailing		3,934		8,092		—		12,026
Food Products		—		4,214		—		4,214
Health Care Equipment & Supplies		—		933		—		933
Health Care Providers & Services		1,780		—		—		1,780
Hotels, Restaurants & Leisure		—		714		—		714
Industrial Conglomerates		—		1,318		—		1,318
Information Technology Services		3,526		1,646		—		5,172
Insurance		—		3,274		—		3,274
Interactive Media & Services		2,838		16,083		—		18,921
Internet & Direct Marketing Retail		12,483		2,976		—		15,459
Life Sciences Tools & Services		—		1,194		—		1,194
Metals & Mining		1,065		1,163		—		2,228
Multi-Line Retail		1,863		32		—		1,895
Oil, Gas & Consumable Fuels		3,307		6,333		—		9,640
Paper & Forest Products		—		2,090		—		2,090
Personal Products		—		113		—		113
Pharmaceuticals		—		8,014		—		8,014
Real Estate Management & Development		—		2,211		—		2,211
Road & Rail		3,801		—		—		3,801
Semiconductors & Semiconductor Equipment		1,245		21,008		—		22,253
Software		1,817		1,179		—		2,996
Specialty Retail		—		596		—		596
Tech Hardware, Storage & Peripherals		—		8,879		—		8,879

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Textiles, Apparel & Luxury Goods	$	2,118	$	4,452	$	—	$	6,570
Transportation Infrastructure		820		—		—		820
Wireless Telecommunication Services		—		4,316		—		4,316
Total Common Stocks		49,190		140,338		—		189,528
Short-Term Investments
Investment Company		3,915		—		—		3,915
Total Assets	$	53,105	$	140,338	$	—	$	193,443

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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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.

As of June 30, 2020, the Fund did not have any open foreign currency forward exchange contracts.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(377	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	146

For the six months ended June 30, 2020, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount				$	28,542,000

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 June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	2,545	(a)	$	—	$	(2,545	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $508,000, which was subsequently invested in Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $2,126,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

FASB ASC 860, "Transfers & Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", is intended to provide increased transparency

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	508	$	—	$	—	$	—	$	508
Total Borrowings	$	508	$	—	$	—	$	—	$	508
Gross amount of recognized liabilities for securities lending transactions									$	508

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. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

holding these securities could lose its share registration through fraud, negligence or even mere oversight. In addition, shares being delivered for sales and cash being paid for purchases may be delivered before the exchange is complete. This may subject the Fund to further risk of loss in the event of a failure to complete the transaction by the counterparty.

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.

First $500 million				Next $500 million				Next $1.5 billion				Over $2.5 billion
	0.85	%			0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.80% 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 1.25% for Class I shares and 1.30% for Class II 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 six months ended June 30, 2020, approximately $51,000 of advisory fees were waived pursuant to this arrangement.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

E. Distribution 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 Distributor of the Fund and provides the Fund's Class II shareholders with distribution services pursuant to a Distribution Plan (the "Plan") in accordance with Rule 12b-1 under the Act. Under the Plan, the Fund is authorized to pay the Distributor a distribution fee, which is accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class II shares. The Distributor has agreed to waive 0.20% of the 0.25% distribution fee that it may receive. This fee waiver 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 waiver when they deem such action is appropriate. For the six months ended June 30, 2020, this waiver amounted to approximately $59,000.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $57,490,000 and $72,656,000, respectively. There were no purchases and sales of long-term

U.S. Government securities for the six months ended June 30, 2020.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2020, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	3,605			$	26,140			$	25,830			$	9

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	3,915

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	2,399	$	15,713	$	1,273	$	—

Permanent differences, primarily due to equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2019:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	(2,995	)		$	2,995

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	2,805			$	3,447

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was below its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's (i) performance was acceptable and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

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

Profitability of the Adviser and Affiliates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Sub-Adviser

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFEMESAN
3174310 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Franchise Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		4
Statement of Operations		5
Statements of Changes in Net Assets		6
Financial Highlights		7
Notes to Financial Statements		8
Investment Advisory Agreement Approval		14
Liquidity Risk Management Program		16
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

Global Franchise Portfolio

As a shareholder of the Global Franchise Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

				Beginning Account Value 1/1/20				Actual Ending Account Value 6/30/20				Hypothetical Ending Account Value				Actual Expenses Paid During Period*				Hypothetical Expenses Paid During Period*				Net Expense Ratio During Period**
Global Franchise Portfolio Class II				$	1,000.00			$	1,006.40			$	1,018.90			$	5.99			$	6.02				1.20	%

* Expenses are calculated using the Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 182/366 (to reflect the most recent one-half year period).

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Global Franchise Portfolio

	Shares		Value (000)
Common Stocks (98.1%)
France (5.6%)
L'Oreal SA (BSRM) (a)		3,045	$	983
LVMH Moet Hennessy Louis Vuitton SE		796		352
Pernod Ricard SA		2,993		471
				1,806
Germany (4.8%)
SAP SE		11,201		1,566
Italy (0.4%)
Davide Campari-Milano SpA		17,286		146
Netherlands (2.2%)
Heineken N.V.		7,762		716
United Kingdom (17.9%)
British American Tobacco PLC		23,426		898
Experian PLC		11,327		398
Reckitt Benckiser Group PLC		31,919		2,936
RELX PLC (Euronext N.V)		12,381		287
RELX PLC (LSE)		32,020		741
Unilever PLC		10,713		578
				5,838
United States (67.2%)
Abbott Laboratories		12,961		1,185
Accenture PLC, Class A		8,266		1,775
Automatic Data Processing, Inc.		7,860		1,170
Baxter International, Inc.		15,345		1,321
Becton Dickinson & Co.		5,423		1,298
Coca-Cola Co. (The)		13,041		583
Danaher Corp.		6,972		1,233
Factset Research Systems, Inc.		1,268		416
Fidelity National Information Services, Inc.		6,244		837
Fox Corp., Class A		10,435		280
Fox Corp., Class B (a)		5,824		156
Microsoft Corp.		15,334		3,121
Moody's Corp.		1,354		372
NIKE, Inc., Class B		4,387		430
Philip Morris International, Inc.		34,899		2,445
Procter & Gamble Co. (The)		12,240		1,464
Roper Technologies, Inc.		792		307
Thermo Fisher Scientific, Inc.		2,826		1,024
Visa, Inc., Class A		9,327		1,802
Zoetis, Inc.		4,681		641
				21,860
Total Common Stocks (Cost $19,572)				31,932

	Shares		Value (000)
Short-Term Investment (1.8%)
Investment Company (1.8%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note H) (Cost $586)		586,081	$	586
Total Investments (99.9%) (Cost $20,158) (b)(c)				32,518
Other Assets in Excess of Liabilities (0.1%)				17
Net Assets (100.0%)			$	32,535

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $10,072,000 and 31.0%, 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 Financial Statements.

(c) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $12,853,000 and the aggregate gross unrealized depreciation is approximately $493,000, resulting in net unrealized appreciation of approximately $12,360,000.

BSRM Berlin Second Regulated Market.

Euronext N.V. Euronext Amsterdam Stock Market.

LSE London Stock Exchange.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		23.2	%
Information Technology Services		17.2
Health Care Equipment & Supplies		15.5
Software		14.4
Household Products		13.5
Tobacco		10.3
Beverages		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.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Franchise Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $19,572)	$	31,932
Investment in Security of Affiliated Issuer, at Value (Cost $586)		586
Total Investments in Securities, at Value (Cost $20,158)		32,518
Dividends Receivable		62
Tax Reclaim Receivable		16
Receivable for Fund Shares Sold		10
Receivable from Affiliate		—	@
Other Assets		10
Total Assets		32,616
Liabilities:
Payable for Professional Fees		32
Payable for Advisory Fees		16
Payable for Servicing Fees		12
Payable for Distribution Fees — Class II Shares		7
Payable for Custodian Fees		3
Payable for Administration Fees		2
Payable for Fund Shares Redeemed		1
Payable for Transfer Agency Fees		1
Other Liabilities		7
Total Liabilities		81
NET ASSETS	$	32,535
Net Assets Consist of:
Paid-in-Capital	$	14,709
Total Distributable Earnings		17,826
Net Assets	$	32,535
CLASS II:
Net Asset Value, Offering and Redemption Price Per Share Applicable to 2,591,634 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	12.55

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Franchise Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $5 of Foreign Taxes Withheld)	$	313
Dividends from Security of Affiliated Issuer (Note H)		2
Total Investment Income		315
Expenses:
Advisory Fees (Note B)		129
Professional Fees		53
Distribution Fees — Class II Shares (Note E)		40
Servicing Fees (Note D)		22
Administration Fees (Note C)		13
Custodian Fees (Note G)		9
Shareholder Reporting Fees		6
Directors' Fees and Expenses		3
Transfer Agency Fees (Note F)		2
Pricing Fees		1
Other Expenses		5
Total Expenses		283
Waiver of Advisory Fees (Note B)		(89	)
Rebate from Morgan Stanley Affiliate (Note H)		(1	)
Net Expenses		193
Net Investment Income		122
Realized Gain (Loss):
Investments Sold		1,957
Foreign Currency Translation		(3	)
Net Realized Gain		1,954
Change in Unrealized Appreciation (Depreciation):
Investments		(2,022	)
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(2,022	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(68	)
Net Increase in Net Assets Resulting from Operations	$	54

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Franchise Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	122		$	279
Net Realized Gain		1,954			3,256
Net Change in Unrealized Appreciation (Depreciation)		(2,022	)		5,272
Net Increase in Net Assets Resulting from Operations		54			8,807
Dividends and Distributions to Shareholders:
Class II		—			(4,904	)
Capital Share Transactions:⁽¹⁾
Class II:
Subscribed		620			876
Distributions Reinvested		—			4,904
Redeemed		(3,432	)		(6,712	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(2,812	)		(932	)
Total Increase (Decrease) in Net Assets		(2,758	)		2,971
Net Assets:
Beginning of Period		35,293			32,322
End of Period	$	32,535		$	35,293
⁽¹⁾Capital Share Transactions:
Class II:
Shares Subscribed		55			72
Shares Issued on Distributions Reinvested		—			415
Shares Redeemed		(294	)		(547	)
Net Decrease in Class II Shares Outstanding		(239	)		(60	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Global Franchise Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	12.47		$	11.18		$	13.73		$	12.64		$	14.02		$	16.04
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.10			0.11			0.13			0.16			0.19
Net Realized and Unrealized Gain (Loss)		0.03			3.09			(0.22	)		2.96			0.63			0.76
Total from Investment Operations		0.08			3.19			(0.11	)		3.09			0.79			0.95
Distributions from and/or in Excess of:
Net Investment Income		—			(0.12	)		(0.15	)		(0.19	)		(0.21	)		(0.35	)
Net Realized Gain		—			(1.78	)		(2.29	)		(1.81	)		(1.96	)		(2.62	)
Total Distributions		—			(1.90	)		(2.44	)		(2.00	)		(2.17	)		(2.97	)
Net Asset Value, End of Period	$	12.55		$	12.47		$	11.18		$	13.73		$	12.64		$	14.02
Total Return⁽³⁾		0.64	%⁽⁶⁾		29.53	%		(1.77	)%		25.75	%		5.42	%		6.20	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	32,535		$	35,293		$	32,322		$	39,318		$	37,841		$	45,673
Ratio of Expenses Before Expense Limitation		1.75	%⁽⁷⁾		1.69	%		1.77	%		1.73	%		1.60	%		1.65	%
Ratio of Expenses After Expense Limitation		1.20	%⁽⁴⁾⁽⁷⁾		1.20	%⁽⁴⁾		1.20	%⁽⁴⁾		1.20	%⁽⁴⁾		1.20	%⁽⁴⁾		1.20	%⁽⁴⁾
Ratio of Net Investment Income		0.75	%⁽⁴⁾⁽⁷⁾		0.82	%⁽⁴⁾		0.88	%⁽⁴⁾		0.96	%⁽⁴⁾		1.19	%⁽⁴⁾		1.25	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		11	%⁽⁶⁾		14	%		27	%		26	%		24	%		26	%

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

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Franchise Portfolio. The Company seeks long-term capital appreciation. The Fund currently offers Class II shares only, although Class I shares may be offered in the future.

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

traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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 following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Beverages	$	583	$	1,333	$	—	$	1,916
Capital Markets		788		—		—		788
Health Care Equipment & Supplies		5,037		—		—		5,037
Household Products		1,464		2,936		—		4,400
Industrial Conglomerates		307		—		—		307
Information Technology Services		5,584		—		—		5,584
Life Sciences Tools & Services		1,024		—		—		1,024

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Media	$	436	$	—	$	—	$	436
Personal Products		—		1,561		—		1,561
Pharmaceuticals		641		—		—		641
Professional Services		—		1,426		—		1,426
Software		3,121		1,566		—		4,687
Textiles, Apparel & Luxury Goods		430		352		—		782
Tobacco		2,445		898		—		3,343
Total Common Stocks		21,860		10,072		—		31,932
Short-Term Investment
Investment Company		586		—		—		586
Total Assets	$	22,446	$	10,072	$	—	$	32,518

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.

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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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.

First $500 million				Next $500 million				Over $1 billion
	0.80	%			0.75	%			0.70	%

For the six months ended June 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.25% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that the 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 II 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 six months ended June 30,

2020, approximately $89,000 of advisory fees were waived pursuant to this arrangement.

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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $3,485,000 and $6,179,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2020.

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 six months ended June 30, 2020, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	633			$	3,365			$	3,412			$	2

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	586

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.

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	315	$	4,589	$	439	$	5,927

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2019.

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	366			$	3,263

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was below its peer group average for the one-year period but better than its peer group average for the three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's contractual management fee and total expense ratio were higher than but close to its peer group averages and the actual management fee was lower than its peer group average. After discussion, the Board concluded that the Fund's performance, management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

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

Profitability of the Adviser and Affiliates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Sub-Adviser

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFGFSAN
3173418 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Infrastructure Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		5
Statement of Operations		6
Statements of Changes in Net Assets		7
Financial Highlights		8
Notes to Financial Statements		10
Investment Advisory Agreement Approval		17
Liquidity Risk Management Program		19
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

Global Infrastructure Portfolio

As a shareholder of the Global Infrastructure Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Infrastructure Portfolio Class I	$	1,000.00	$	899.00	$	1,020.54	$	4.11	$	4.37		0.87	%
Global Infrastructure Portfolio Class II		1,000.00		897.00		1,019.29		5.28		5.62		1.12

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Global Infrastructure Portfolio

	Shares		Value (000)
Common Stocks (98.1%)
Australia (6.0%)
APA Group		78,342	$	606
Atlas Arteria Ltd.		181,421		838
Spark Infrastructure Group		501,984		750
Sydney Airport		78,310		309
Transurban Group		197,023		1,932
				4,435
Brazil (0.4%)
Energisa SA (Units) (a)		29,900		269
Canada (10.9%)
Canadian Pacific Railway Ltd.		300		77
Enbridge, Inc.		62,159		1,890
Gibson Energy, Inc.		145,150		2,259
Pembina Pipeline Corp. (b)		36,090		902
TC Energy Corp. (b)		67,302		2,875
				8,003
China (5.2%)
China Everbright International Ltd. (c)		2,083,000		1,105
China Gas Holdings Ltd. (c)		512,800		1,589
China Tower Corp. Ltd. H Shares (c)		2,922,000		519
ENN Energy Holdings Ltd. (c)		28,900		326
Jiangsu Expressway Co., Ltd. H Shares (c)		232,000		273
				3,812
Denmark (0.2%)
Orsted A/S		1,172		136
France (5.1%)
Aeroports de Paris (ADP)		2,320		240
Getlink SE (d)		37,840		547
Vinci SA		32,390		3,003
				3,790
India (2.5%)
Azure Power Global Ltd. (d)		116,694		1,862
Italy (4.2%)
Atlantia SpA (b)(d)		39,646		641
Infrastrutture Wireless Italiane SpA		72,760		731
Snam SpA		88,640		432
Terna Rete Elettrica Nazionale SpA		187,050		1,290
				3,094
Japan (1.3%)
Japan Airport Terminal Co., Ltd. (b)		5,200		222
Tokyo Gas Co., Ltd.		32,200		771
				993
Mexico (2.4%)
Promotora y Operadora de Infraestructura SAB de CV (d)		243,321		1,757
New Zealand (0.8%)
Auckland International Airport Ltd.		143,118		609

	Shares		Value (000)
Spain (6.0%)
Aena SME SA (d)		5,430	$	726
Atlantica Yield PLC		40,562		1,180
Cellnex Telecom SA		17,852		1,091
Ferrovial SA		42,146		1,127
Red Electrica Corp., SA (b)		14,750		276
				4,400
Switzerland (0.5%)
Flughafen Zurich AG (Registered) (d)		2,680		350
United Kingdom (7.3%)
National Grid PLC		243,714		2,974
Pennon Group PLC		87,112		1,206
Severn Trent PLC		22,449		687
United Utilities Group PLC		45,299		509
				5,376
United States (45.3%)
Ameren Corp.		5,510		388
American Electric Power Co., Inc.		4,260		339
American Tower Corp. REIT		28,740		7,430
American Water Works Co., Inc.		13,450		1,731
Atmos Energy Corp.		20,327		2,024
Cheniere Energy, Inc. (d)		21,683		1,048
CMS Energy Corp.		10,030		586
Crown Castle International Corp. REIT		24,235		4,056
Edison International		23,527		1,278
Essential Utilities, Inc.		27,423		1,158
Evergy, Inc.		11,180		663
Eversource Energy		19,649		1,636
Kinder Morgan, Inc.		110,903		1,682
NiSource, Inc.		53,133		1,208
ONEOK, Inc.		22,440		746
SBA Communications Corp. REIT		5,740		1,710
Sempra Energy		18,126		2,125
Targa Resources Corp.		15,950		320
Union Pacific Corp.		440		74
Waste Management, Inc.		13,660		1,447
Williams Cos., Inc. (The)		54,610		1,039
Xcel Energy, Inc.		11,670		729
				33,417
Total Common Stocks (Cost $58,598)				72,303
Short-Term Investments (4.0%)
Securities held as Collateral on Loaned Securities (3.9%)
Investment Company (3.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note H) (Cost $2,283)		2,282,668		2,283

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Global Infrastructure Portfolio

	Face Amount (000)		Value (000)
Repurchase Agreements (0.8%)
HSBC Securities USA, Inc., (0.07%, dated 6/30/20, due 7/1/20; proceeds $224; fully collateralized by a U.S. Government obligation; 0.5% due 3/15/23; valued at $229)	$	224	$	224
Merrill Lynch & Co., Inc., (0.07%, dated 6/30/20, due 7/1/20; proceeds $395; fully collateralized by U.S. Government obligations; 1.38% – 3.88% due 9/30/20 – 8/15/40; valued at $403)		395		395
				619
Total Securities held as Collateral on Loaned Securities (Cost $2,902)				2,902
	Shares
Investment Company (0.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note H) (Cost $39)		39,413		39
Total Short-Term Investments (Cost $2,941)				2,941
Total Investments (102.1%) (Cost $61,539) Including $4,383 of Securities Loaned (e)(f)				75,244
Liabilities in Excess of Other Assets (-2.1%)				(1,573	)
Net Assets (100.0%)			$	73,671

(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 June 30, 2020.

(d) Non-income producing security.

(e) The approximate fair value and percentage of net assets, $25,815,000 and 35.0%, 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 Financial Statements.

(f) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $16,569,000 and the aggregate gross unrealized depreciation is approximately $2,864,000, resulting in net unrealized appreciation of approximately $13,705,000.

REIT Real Estate Investment Trust.

Portfolio Composition*

Classification	Percentage of Total Investments
Oil & Gas Storage & Transportation		30.2	%
Communications		21.5
Electricity Transmission & Distribution		13.2
Other**		12.3
Water		8.8
Toll Roads		8.3
Diversified		5.7
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2020.

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Infrastructure Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $59,217)	$	72,922
Investment in Security of Affiliated Issuer, at Value (Cost $2,322)		2,322
Total Investments in Securities, at Value (Cost $61,539)		75,244
Foreign Currency, at Value (Cost $163)		163
Receivable for Investments Sold		1,172
Dividends Receivable		246
Receivable for Fund Shares Sold		48
Tax Reclaim Receivable		12
Receivable from Securities Lending Income		1
Receivable from Affiliate		—	@
Other Assets		15
Total Assets		76,901
Liabilities:
Collateral on Securities Loaned, at Value		2,902
Payable for Investments Purchased		132
Payable for Advisory Fees		67
Payable for Servicing Fees		39
Payable for Professional Fees		37
Payable for Fund Shares Redeemed		21
Payable for Distribution Fees — Class II Shares		8
Payable for Custodian Fees		8
Payable for Administration Fees		5
Payable for Transfer Agency Fees		1
Other Liabilities		10
Total Liabilities		3,230
NET ASSETS	$	73,671
Net Assets Consist of:
Paid-in-Capital	$	59,620
Total Distributable Earnings		14,051
Net Assets	$	73,671
CLASS I:
Net Assets	$	35,016
Net Asset Value, Offering and Redemption Price Per Share Applicable to 4,798,295 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	7.30
CLASS II:
Net Assets	$	38,655
Net Asset Value, Offering and Redemption Price Per Share Applicable to 5,343,827 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	7.23
⁽¹⁾Including:
Securities on Loan, at Value:	$	4,383

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Infrastructure Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $53 of Foreign Taxes Withheld)	$	1,098
Dividends from Security of Affiliated Issuer (Note H)		3
Income from Securities Loaned — Net		2
Total Investment Income		1,103
Expenses:
Advisory Fees (Note B)		330
Professional Fees		58
Servicing Fees (Note D)		58
Distribution Fees — Class II Shares (Note E)		51
Administration Fees (Note C)		31
Custodian Fees (Note G)		18
Shareholder Reporting Fees		9
Directors' Fees and Expenses		3
Transfer Agency Fees (Note F)		3
Pricing Fees		2
Other Expenses		7
Total Expenses		570
Waiver of Advisory Fees (Note B)		(182	)
Rebate from Morgan Stanley Affiliate (Note H)		(1	)
Net Expenses		387
Net Investment Income		716
Realized Loss:
Investments Sold		(1,757	)
Foreign Currency Translation		(10	)
Net Realized Loss		(1,767	)
Change in Unrealized Appreciation (Depreciation):
Investments		(7,713	)
Foreign Currency Translation		(1	)
Net Change in Unrealized Appreciation (Depreciation)		(7,714	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(9,481	)
Net Decrease in Net Assets Resulting from Operations	$	(8,765	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Infrastructure Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	716		$	2,087
Net Realized Gain (Loss)		(1,767	)		1,333
Net Change in Unrealized Appreciation (Depreciation)		(7,714	)		17,287
Net Increase (Decrease) in Net Assets Resulting from Operations		(8,765	)		20,707
Dividends and Distributions to Shareholders:
Class I		—			(3,030	)
Class II		—			(3,020	)
Total Dividends and Distributions to Shareholders		—			(6,050	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,059			691
Distributions Reinvested		—			3,030
Redeemed		(4,092	)		(7,493	)
Class II:
Subscribed		2,255			5,255
Distributions Reinvested		—			3,020
Redeemed		(5,003	)		(7,778	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(5,781	)		(3,275	)
Total Increase (Decrease) in Net Assets		(14,546	)		11,382
Net Assets:
Beginning of Period		88,217			76,835
End of Period	$	73,671		$	88,217
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		144			90
Shares Issued on Distributions Reinvested		—			394
Shares Redeemed		(536	)		(974	)
Net Decrease in Class I Shares Outstanding		(392	)		(490	)
Class II:
Shares Subscribed		303			682
Shares Issued on Distributions Reinvested		—			395
Shares Redeemed		(672	)		(1,018	)
Net Increase (Decrease) in Class II Shares Outstanding		(369	)		59

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Global Infrastructure Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	8.12		$	6.80		$	7.91		$	7.53		$	7.08		$	9.31
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.07			0.20			0.20			0.23			0.22			0.22
Net Realized and Unrealized Gain (Loss)		(0.89	)		1.69			(0.79	)		0.72			0.88			(1.36	)
Total from Investment Operations		(0.82	)		1.89			(0.59	)		0.95			1.10			(1.14	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.23	)		(0.19	)		(0.18	)		(0.16	)
Net Realized Gain		—			(0.35	)		(0.29	)		(0.38	)		(0.47	)		(0.93	)
Total Distributions		—			(0.57	)		(0.52	)		(0.57	)		(0.65	)		(1.09	)
Net Asset Value, End of Period	$	7.30		$	8.12		$	6.80		$	7.91		$	7.53		$	7.08
Total Return⁽³⁾		(10.10	)%⁽⁶⁾		28.30	%		(7.85	)%		12.96	%		15.27	%		(13.76	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	35,016		$	42,162		$	38,642		$	50,116		$	51,786		$	52,323
Ratio of Expenses Before Expense Limitation		1.34	%⁽⁷⁾		1.33	%		1.34	%		1.34	%		1.29	%		1.35	%
Ratio of Expenses After Expense Limitation		0.87	%⁽⁴⁾⁽⁷⁾		0.87	%⁽⁴⁾		0.87	%⁽⁴⁾		0.86	%⁽⁴⁾		0.86	%⁽⁴⁾		0.87	%⁽⁴⁾
Ratio of Net Investment Income		1.97	%⁽⁴⁾⁽⁷⁾		2.58	%⁽⁴⁾		2.80	%⁽⁴⁾		2.98	%⁽⁴⁾		2.87	%⁽⁴⁾		2.56	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.00	%⁽⁵⁾
Portfolio Turnover Rate		34	%⁽⁶⁾		30	%		44	%		43	%		51	%		50	%

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

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Global Infrastructure Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	8.06		$	6.76		$	7.85		$	7.49		$	7.05		$	9.27
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.06			0.18			0.18			0.21			0.20			0.19
Net Realized and Unrealized Gain (Loss)		(0.89	)		1.67			(0.77	)		0.71			0.87			(1.34	)
Total from Investment Operations		(0.83	)		1.85			(0.59	)		0.92			1.07			(1.15	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.20	)		(0.21	)		(0.18	)		(0.16	)		(0.14	)
Net Realized Gain		—			(0.35	)		(0.29	)		(0.38	)		(0.47	)		(0.93	)
Total Distributions		—			(0.55	)		(0.50	)		(0.56	)		(0.63	)		(1.07	)
Net Asset Value, End of Period	$	7.23		$	8.06		$	6.76		$	7.85		$	7.49		$	7.05
Total Return⁽³⁾		(10.30	)%⁽⁶⁾		27.87	%		(7.89	)%		12.54	%		14.97	%		(13.88	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	38,655		$	46,055		$	38,193		$	45,234		$	37,747		$	23,427
Ratio of Expenses Before Expense Limitation		1.59	%⁽⁷⁾		1.58	%		1.59	%		1.59	%		1.54	%		1.63	%
Ratio of Expenses After Expense Limitation		1.12	%⁽⁴⁾⁽⁷⁾		1.12	%⁽⁴⁾		1.12	%⁽⁴⁾		1.11	%⁽⁴⁾		1.11	%⁽⁴⁾		1.12	%⁽⁴⁾
Ratio of Net Investment Income		1.72	%⁽⁴⁾⁽⁷⁾		2.33	%⁽⁴⁾		2.55	%⁽⁴⁾		2.73	%⁽⁴⁾		2.62	%⁽⁴⁾		2.31	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.00	%⁽⁵⁾
Portfolio Turnover Rate		34	%⁽⁶⁾		30	%		44	%		43	%		51	%		50	%

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

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Infrastructure Portfolio. The Fund seeks both capital appreciation and current income. The Fund offers two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• 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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Airports	$	—	$	2,456	$	—	$	2,456
Communications		13,196		2,341		—		15,537
Diversified		—		4,130		—		4,130
Electricity Transmission & Distribution		4,251		5,290		—		9,541
Oil & Gas Storage & Transportation		18,118		3,724		—		21,842
Railroads		151		—		—		151
Renewables		3,042		136		—		3,178
Toll Roads		1,757		4,231		—		5,988
Utilities		3,084		—		—		3,084
Water		2,889		3,507		—		6,396
Total Common Stocks		46,488		25,815		—		72,303
Short-Term Investments
Investment Company		2,322		—		—		2,322
Repurchase Agreements		—		619		—		619
Total Short-Term Investments		2,322		619		—		2,941
Total Assets	$	48,810	$	26,434	$	—	$	75,244

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.

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.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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.

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 June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	4,383	(a)	$	—	$	(4,383	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $2,902,000, 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 $1,652,000 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.

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	2,902	$	—	$	—	$	—	$	2,902
Total Borrowings	$	2,902	$	—	$	—	$	—	$	2,902
Gross amount of recognized liabilities for securities lending transactions									$	2,902

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. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

is complete. This may subject the Fund to further risk of loss in the event of a failure to complete the transaction by the counterparty.

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.

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 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 0.87% for Class I shares and 1.12% for Class II 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 six months ended June 30, 2020, approximately $182,000 of advisory fees were waived pursuant to this arrangement.

the Distributor a distribution fee, which is accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class II shares.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $26,465,000 and $31,878,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2020.

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 six months ended June 30, 2020, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	924			$	18,449			$	17,051			$	3

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	2,322

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

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. The tax character of distributions paid during fiscal years 2019 and 2018 was as follows:

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	2,240	$	3,810	$	2,994	$	2,907

Permanent differences, primarily due to equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2019:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	(252	)		$	252

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	1,599			$	1,029

L. Subsequent Event: Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's Investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's Investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one- and five-year periods but below its peer group average for the three-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Fund's contractual management fee was higher than but close to its peer group average, the actual management fee was higher than its peer group average and the total expense ratio was lower than its peer group average. After discussion, the Board concluded that the Fund's (i) performance and total expense ratio were competitive with its peer group averages and (ii) management fee was acceptable.

Economies of Scale

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

Profitability of the Adviser and Affiliates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFGINSAN
3173435 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Real Estate Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report - June 30, 2020

Table of Contents

Expense Example					2
Portfolio of Investments					3
Statement of Assets and Liabilities					6
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					9
Notes to Financial Statements					10
Investment Advisory Agreement Approval					16
Liquidity Risk Management Program					18
Director and Officer Information					Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report - June 30, 2020 (unaudited)

Expense Example

Global Real Estate Portfolio

As a shareholder of the Global Real Estate Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

				Beginning Account Value 1/1/20				Actual Ending Account Value 6/30/20				Hypothetical Ending Account Value				Actual Expenses Paid During Period*				Hypothetical Expenses Paid During Period*				Net Expense Ratio During Period**
Global Real Estate Portfolio Class II				$	1,000.00			$	731.50			$	1,018.65			$	5.38			$	6.27				1.25	%

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Global Real Estate Portfolio

	Shares		Value (000)
Common Stocks (98.0%)
Australia (2.5%)
Dexus REIT		75,629	$	485
Goodman Group REIT		5,080		53
GPT Group (The) REIT		85,317		248
Mirvac Group REIT		91,521		138
Scentre Group REIT		145,421		221
Stockland REIT		7,447		17
Vicinity Centres REIT		76,935		77
				1,239
Austria (0.0%)
CA Immobilien Anlagen AG		195		7
Canada (1.5%)
Boardwalk REIT		1,914		42
Crombie Real Estate Investment Trust REIT		8,510		80
First Capital Real Estate Investment Trust		26,622		272
H&R Real Estate Investment Trust REIT		5,783		42
RioCan Real Estate Investment Trust REIT		24,806		281
SmartCentres Real Estate Investment Trust REIT		2,615		40
				757
China (1.5%)
China Overseas Land & Investment Ltd. (a)		18,000		55
China Resources Land Ltd. (a)		60,000		229
KWG Property Holding Ltd. (a)(b)		11,000		19
Longfor Group Holdings Ltd. (a)		66,000		316
Poly Property Development Co., Ltd., Class H (a)		2,400		24
Shimao Property Holdings Ltd. (a)		16,500		71
Sunac China Holdings Ltd. (a)		5,000		21
				735
Finland (0.3%)
Kojamo Oyj		7,229		153
France (3.8%)
Carmila SA REIT		4,824		66
Covivio REIT		638		46
Gecina SA REIT		4,111		508
ICADE REIT		270		19
Klepierre SA REIT		31,571		631
Mercialys SA REIT		23,193		195
Unibail-Rodamco-Westfield REIT		7,474		421
				1,886
Germany (4.5%)
ADO Properties SA (b)		1,891		51
Alstria Office AG REIT		16,115		240
Deutsche Wohnen SE		14,527		653
LEG Immobilien AG		1,905		241
Vonovia SE		17,140		1,048
				2,233
Hong Kong (7.8%)
CK Asset Holdings Ltd.		38,000		228
Hang Lung Properties Ltd.		103,000		245
Hongkong Land Holdings Ltd.		115,400		480

	Shares		Value (000)
Hysan Development Co., Ltd.		18,921	$	61
Link REIT		80,264		659
New World Development Co., Ltd.		63,146		300
Sun Hung Kai Properties Ltd.		84,393		1,078
Swire Properties Ltd.		196,500		502
Wharf Real Estate Investment Co., Ltd.		67,420		323
				3,876
Ireland (0.7%)
Hibernia REIT PLC		274,038		346
Japan (10.7%)
Activia Properties, Inc. REIT		17		59
Advance Residence Investment Corp. REIT		69		205
Daiwa Office Investment Corp. REIT		27		149
GLP J-REIT		145		210
Hulic Co., Ltd.		11,200		106
Hulic REIT, Inc.		35		43
Invincible Investment Corp. REIT		281		73
Japan Hotel REIT Investment Corp.		228		95
Japan Prime Realty Investment Corp. REIT		11		32
Japan Real Estate Investment Corp. REIT		85		436
Japan Retail Fund Investment Corp. REIT		29		36
Kenedix Office Investment Corp. REIT		23		129
Kenedix, Inc.		10,100		50
Mitsubishi Estate Co., Ltd.		51,800		772
Mitsubishi Estate Logistics REIT Investment Corp. REIT		34		125
Mitsui Fudosan Co., Ltd.		42,300		751
Mitsui Fudosan Logistics Park, Inc. REIT		43		192
Mori Trust Sogo Reit, Inc.		46		57
Nippon Building Fund, Inc. REIT		112		638
Nippon Prologis, Inc. REIT		60		182
Nomura Real Estate Master Fund, Inc. REIT		168		201
Orix, Inc. J-REIT		38		50
Premier Investment Corp. REIT		45		50
Sumitomo Realty & Development Co., Ltd.		20,000		552
United Urban Investment Corp. REIT		124		134
				5,327
Malta (0.0%)
BGP Holdings PLC (b)(c)		5,886,464		9
Netherlands (0.6%)
Eurocommercial Properties N.V. CVA REIT		13,121		169
NSI N.V. REIT		3,507		136
				305
Norway (0.5%)
Entra ASA		16,438		211
Norwegian Property ASA		34,158		43
				254
Singapore (1.8%)
Ascendas Real Estate Investment Trust REIT		107,524		247
CapitaLand Commercial Trust REIT		20,592		25
CapitaLand Mall Trust REIT		26,500		37
Frasers Logistics & Industrial Trust REIT		19,600		17

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Global Real Estate Portfolio

	Shares		Value (000)
Singapore (cont'd)
Keppel DC REIT		114,600	$	210
Mapletree Commercial Trust REIT		74,112		104
Mapletree Industrial Trust REIT		48,000		100
Mapletree Logistics Trust REIT		52,500		74
UOL Group Ltd.		9,074		44
				858
Spain (1.1%)
Inmobiliaria Colonial Socimi SA REIT		23,143		205
Merlin Properties Socimi SA REIT		40,991		341
				546
Sweden (1.1%)
Atrium Ljungberg AB, Class B		5,989		85
Castellum AB		2,627		49
Fabege AB		16,136		190
Hufvudstaden AB, Class A		13,504		168
Kungsleden AB		8,772		66
				558
Switzerland (0.4%)
PSP Swiss Property AG (Registered)		1,604		181
United Kingdom (5.4%)
British Land Co., PLC (The) REIT		133,786		640
Capital & Counties Properties PLC		39,683		72
Derwent London PLC REIT		10,997		378
Grainger PLC		11,000		39
Great Portland Estates PLC REIT		39,147		307
Hammerson PLC REIT		94,524		94
Land Securities Group PLC REIT		102,943		703
Segro PLC REIT		10,287		114
Shaftesbury PLC REIT		3,524		23
St. Modwen Properties PLC		15,389		66
Urban & Civic PLC		67,047		194
Workspace Group PLC REIT		6,459		52
				2,682
United States (53.8%)
Alexandria Real Estate Equities, Inc. REIT		3,120		506
American Campus Communities, Inc. REIT		19,230		672
American Homes 4 Rent, Class A REIT		8,217		221
AvalonBay Communities, Inc. REIT		8,977		1,388
Boston Properties, Inc. REIT		14,618		1,321
Brixmor Property Group, Inc. REIT		980		13
Camden Property Trust REIT		9,586		874
Cousins Properties, Inc. REIT		14,569		435
CubeSmart REIT		19,477		526
DiamondRock Hospitality Co. REIT		23,377		129
Digital Realty Trust, Inc. REIT		7,170		1,019
Duke Realty Corp. REIT		13,181		467
Equity Lifestyle Properties, Inc. REIT		1,124		70
Equity Residential REIT		16,411		965
Essex Property Trust, Inc. REIT		2,409		552
Extra Space Storage, Inc. REIT		3,390		313
Five Star Senior Living, Inc. (b)		621		2

	Shares		Value (000)
Gaming and Leisure Properties, Inc. REIT		8,419	$	291
Healthcare Realty Trust, Inc. REIT		24,898		729
Healthcare Trust of America, Inc., Class A REIT		10,168		270
Healthpeak Properties, Inc. REIT		12,566		346
Highwoods Properties, Inc. REIT		2,750		103
Host Hotels & Resorts, Inc. REIT		99,697		1,076
Hudson Pacific Properties, Inc. REIT		25,901		652
Invitation Homes, Inc. REIT		24,896		685
JBG SMITH Properties REIT		10,506		311
Kilroy Realty Corp. REIT		8,208		482
Lexington Realty Trust REIT		13,830		146
Life Storage, Inc. REIT		1,795		170
Macerich Co. (The) REIT		3,242		29
Mack-Cali Realty Corp. REIT		17,322		265
Mid-America Apartment Communities, Inc. REIT		2,795		321
Paramount Group, Inc. REIT		29,372		227
ProLogis, Inc. REIT		28,827		2,690
Public Storage REIT		4,136		794
QTS Realty Trust, Inc., Class A REIT		519		33
Regency Centers Corp. REIT		10,288		472
RLJ Lodging Trust REIT		27,970		264
Simon Property Group, Inc. REIT		28,815		1,970
SL Green Realty Corp. REIT		38,011		1,874
Sunstone Hotel Investors, Inc. REIT		51,947		423
Taubman Centers, Inc. REIT		4,160		157
UDR, Inc. REIT		1,794		67
Ventas, Inc. REIT		29,185		1,069
Vornado Realty Trust REIT		16,841		644
Weingarten Realty Investors REIT		25,901		490
Welltower, Inc. REIT		4,254		220
				26,743
Total Common Stocks (Cost $47,514)				48,695
Short-Term Investment (1.7%)
Investment Company (1.7%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note H) (Cost $844)		844,217		844
Total Investments (99.7%) (Cost $48,358) (d)(e)				49,539
Other Assets in Excess of Liabilities (0.3%)				159
Net Assets (100.0%)			$	49,698

(a) Security trades on the Hong Kong exchange.

(b) Non-income producing security.

(c) At June 30, 2020, the Fund held a fair valued security valued at approximately $9,000, 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.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Global Real Estate Portfolio

(d) The approximate fair value and percentage of net assets, $20,886,000 and 42.0%, 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 Financial Statements.

(e) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,018,000 and the aggregate gross unrealized depreciation is approximately $6,837,000, resulting in net unrealized appreciation of approximately $1,181,000.

CVA Certificaten Van Aandelen.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Diversified		23.4	%
Office		20.8
Residential		17.3
Retail		12.9
Other*		11.7
Industrial		8.6
Health Care		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.
5

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $47,514)	$	48,695
Investment in Security of Affiliated Issuer, at Value (Cost $844)		844
Total Investments in Securities, at Value (Cost $48,358)		49,539
Foreign Currency, at Value (Cost $108)		108
Dividends Receivable		180
Receivable for Investments Sold		40
Tax Reclaim Receivable		33
Receivable for Fund Shares Sold		4
Receivable from Affiliate		—	@
Other Assets		14
Total Assets		49,918
Liabilities:
Payable for Investments Purchased		49
Payable for Professional Fees		34
Payable for Advisory Fees		30
Payable for Fund Shares Redeemed		28
Payable for Servicing Fees		21
Deferred Capital Gain Country Tax		18
Payable for Distribution Fees — Class II Shares		11
Payable for Custodian Fees		9
Payable for Administration Fees		3
Payable for Transfer Agency Fees		1
Other Liabilities		16
Total Liabilities		220
NET ASSETS	$	49,698
Net Assets Consist of:
Paid-in-Capital	$	52,649
Total Accumulated Loss		(2,951	)
Net Assets	$	49,698
CLASS II:
Net Asset Value, Offering and Redemption Price Per Share Applicable to 6,289,202 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	7.90

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $42 of Foreign Taxes Withheld)	$	972
Dividends from Security of Affiliated Issuer (Note H)		1
Total Investment Income		973
Expenses:
Advisory Fees (Note B)		222
Distribution Fees — Class II Shares (Note E)		69
Professional Fees		59
Servicing Fees (Note D)		47
Custodian Fees (Note G)		29
Administration Fees (Note C)		22
Shareholder Reporting Fees		11
Pricing Fees		5
Directors' Fees and Expenses		3
Transfer Agency Fees (Note F)		2
Other Expenses		7
Total Expenses		476
Waiver of Advisory Fees (Note B)		(130	)
Rebate from Morgan Stanley Affiliate (Note H)		(1	)
Net Expenses		345
Net Investment Income		628
Realized Gain (Loss):
Investments Sold (Net of $9 of Capital Gain Country Tax)		(3,643	)
Foreign Currency Translation		4
Net Realized Loss		(3,639	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $1)		(15,286	)
Foreign Currency Translation		(6	)
Net Change in Unrealized Appreciation (Depreciation)		(15,292	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(18,931	)
Net Decrease in Net Assets Resulting from Operations	$	(18,303	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	628		$	1,191
Net Realized Gain (Loss)		(3,639	)		2,682
Net Change in Unrealized Appreciation (Depreciation)		(15,292	)		7,870
Net Increase (Decrease) in Net Assets Resulting from Operations		(18,303	)		11,743
Dividends and Distributions to Shareholders:
Class II		—			(5,238	)
Capital Share Transactions:⁽¹⁾
Class II:
Subscribed		4,812			6,093
Distributions Reinvested		—			5,238
Redeemed		(7,237	)		(14,161	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(2,425	)		(2,830	)
Total Increase (Decrease) in Net Assets		(20,728	)		3,675
Net Assets:
Beginning of Period		70,426			66,751
End of Period	$	49,698		$	70,426
⁽¹⁾Capital Share Transactions:
Class II:
Shares Subscribed		607			571
Shares Issued on Distributions Reinvested		—			498
Shares Redeemed		(837	)		(1,313	)
Net Decrease in Class II Shares Outstanding		(230	)		(244	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Global Real Estate Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	10.80		$	9.87		$	11.09		$	10.36		$	10.18		$	10.57
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.10			0.18			0.25			0.24			0.16			0.14
Net Realized and Unrealized Gain (Loss)		(3.00	)		1.58			(1.13	)		0.75			0.16			(0.29	)
Total from Investment Operations		(2.90	)		1.76			(0.88	)		0.99			0.32			(0.15	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.29	)		(0.34	)		(0.26	)		(0.14	)		(0.24	)
Net Realized Gain		—			(0.54	)		—			—			—			—
Total Distributions		—			(0.83	)		(0.34	)		(0.26	)		(0.14	)		(0.24	)
Net Asset Value, End of Period	$	7.90		$	10.80		$	9.87		$	11.09		$	10.36		$	10.18
Total Return⁽³⁾		(26.85	)%⁽⁷⁾		18.06	%		(8.20	)%		9.71	%		3.12	%		(1.42	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	49,698		$	70,426		$	66,751		$	83,625		$	86,247		$	94,884
Ratio of Expenses Before Expense Limitation		1.72	%⁽⁸⁾		1.64	%		1.66	%		1.69	%		1.60	%		1.67	%
Ratio of Expenses After Expense Limitation		1.25	%⁽⁴⁾⁽⁸⁾		1.25	%⁽⁴⁾		1.33	%⁽⁴⁾⁽⁵⁾		1.40	%⁽⁴⁾		1.40	%⁽⁴⁾		1.40	%⁽⁴⁾
Ratio of Net Investment Income		2.26	%⁽⁴⁾⁽⁸⁾		1.67	%⁽⁴⁾		2.37	%⁽⁴⁾		2.26	%⁽⁴⁾		1.54	%⁽⁴⁾		1.80	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		20	%⁽⁷⁾		24	%		36	%		34	%		24	%		26	%

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

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

(5) 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 II shares. Prior to July 1, 2018, the maximum ratio was 1.40% for Class II shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Real Estate Portfolio. The Fund seeks to provide current income and capital appreciation. The Fund currently offers Class II shares only, although Class I shares may be offered in the future.

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

the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including cir-

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

cumstances 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 established 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The 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.

• 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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Diversified	$	2,614	$	9,302	$	—	$	11,916
Health Care		2,636		—		—		2,636
Industrial		3,303		967		—		4,270
Industrial/Office Mixed		—		462		—		462
Lodging/Resorts		1,892		168		—		2,060
Office		5,600		4,683		—		10,283
Residential		5,857		2,698		9		8,564
Retail		3,804		2,606		—		6,410
Self Storage		1,803		—		—		1,803
Specialty		291		—		—		291
Total Common Stocks		27,800		20,886		9		48,695
Short-Term Investment
Investment Company		844		—		—		844
Total Assets	$	28,644	$	20,886	$	9	$	49,539

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

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

	Common Stock (000)
Beginning Balance	$	9
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—	@
Realized gains (losses)		—
Ending Balance	$	9
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2020.	$	—	@

@ 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 June 30, 2020:

Fair Value at
June 30, 2020
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

Common Stock

Market Transaction
Method

Transaction Valuation

0.001

Increase

Discount for Lack of
Marketability

50.0

Decrease

* Amount is indicative of the weighted average.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) 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 an annual rate of 0.80% of the daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that the 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 II 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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

action is appropriate. For the six months ended June 30, 2020, approximately $130,000 of advisory fees were waived 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.

tody 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.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $11,078,000 and $12,558,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2020.

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. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2020, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	473			$	5,120			$	4,749			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	844

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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.

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	1,979	$	3,259	$	2,376	$	—

Permanent differences, primarily due to equalization debits and an adjustment to prior period distributable earnings, resulted in the following reclassifications among the components of net assets at December 31, 2019:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	(622	)		$	622

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	2,332			$	1,067

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was below its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's contractual management fee and total expense ratio were higher than but close to its peer group averages and the actual management fee was lower than its peer group average. After discussion, the Board concluded that the Fund's (i) performance was acceptable and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Sub-Advisers

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

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFGRESAN
3173663 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Strategist Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Consolidated Expense Example		2
Consolidated Portfolio of Investments		3
Consolidated Statement of Assets and Liabilities		32
Consolidated Statement of Operations		33
Consolidated Statements of Changes in Net Assets		34
Consolidated Financial Highlights		35
Notes to Consolidated Financial Statements		37
Investment Advisory Agreement Approval		49
Liquidity Risk Management Program		51
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Expense Example

Global Strategist Portfolio

As a shareholder of the Global Strategist Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Strategist Portfolio Class I	$	1,000.00	$	938.60	$	1,020.49	$	4.24	$	4.42		0.88	%
Global Strategist Portfolio Class II		1,000.00		938.20		1,019.99		4.72		4.92		0.98

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (40.3%)
Agency Adjustable Rate Mortgage (0.0%)
United States (0.0%)
Federal Home Loan Mortgage Corporation, Conventional Pools: 12 Month USD LIBOR + 1.62%, 2.83%, 7/1/45 (Cost $29)	$	29	$	30
Agency Fixed Rate Mortgages (2.6%)
United States (2.6%)
Federal Home Loan Mortgage Corporation, Conventional Pools: 4.50%, 1/1/49		61		66
Gold Pools: 3.50%, 2/1/45 - 6/1/45		348		380
4.50%, 1/1/49		46		49
Federal National Mortgage Association, Conventional Pools: 4.00%, 11/1/41 - 1/1/46		327		358
4.50%, 3/1/41 - 11/1/44		177		195
5.00%, 1/1/41 - 3/1/41		62		70
6.00%, 1/1/38		10		12
6.50%, 8/1/38		2		2
July TBA: 3.00%, 7/1/50 (b)		220		232
3.50%, 7/1/50 (b)		900		947
Government National Mortgage Association, Various Pools:
4.00%, 7/15/44		40		44
5.00%, 2/20/49 - 3/20/49		57		61
Total Agency Fixed Rate Mortgages (Cost $2,376)				2,416
Asset-Backed Securities (0.6%)
United States (0.6%)
Freed ABS Trust, 3.06%, 3/18/27 (c)		100		95
Louisiana Public Facilities Authority, 3 Month USD LIBOR + 0.90%, 1.89%, 4/26/27 (a)		13		13
New Century Home Equity Loan Trust, 1 Month USD LIBOR + 1.35%, 1.53%, 3/25/33 (a)		73		70
New Residential Advance Receivables Trust, 2.52%, 8/15/53 (c)		115		111
North Carolina State Education Assistance Authority, 3 Month USD LIBOR + 0.80%, 1.79%, 7/25/25 (a)		13		13
NovaStar Mortgage Funding Trust, 1 Month USD LIBOR + 1.58%, 1.76%, 12/25/34 (a)		75		73
Renaissance Home Equity Loan Trust, 1 Month USD LIBOR + 0.76%, 0.94%, 12/25/32 (a)		83		79
SLM Student Loan Trust, 3 Month EURIBOR + 0.55%, 0.39%, 7/25/39 (a)	EUR	100		106
Total Asset-Backed Securities (Cost $575)				560

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (0.8%)
United Kingdom (0.1%)
Taurus 2018-2 UK DAC, 3 Month GBP LIBOR + 1.10%, 1.35%, 5/22/28 (a)	GBP	95	$	105
United States (0.7%)
COMM Mortgage Trust, 3.28%, 1/10/46	$	45		46
3.96%, 3/10/47		144		156
4.88%, 7/15/47 (a)(c)		100		79
Commercial Mortgage Pass-Through Certificates, 4.24%, 2/10/47 (a)		77		84
UBS-Barclays Commercial Mortgage Trust, 3.53%, 5/10/63		40		42
WFRBS Commercial Mortgage Trust, 4.14%, 10/15/57 (a)(c)		144		119
5.20%, 9/15/46 (a)(c)		140		78
				604
Total Commercial Mortgage-Backed Securities (Cost $789)				709
Corporate Bonds (14.5%)
Australia (0.5%)
Macquarie Bank Ltd., 6.63%, 4/7/21 (c)		85		88
Macquarie Group Ltd., 4.15%, 3/27/24 (c)		50		54
Transurban Finance Co. Pty Ltd., 2.00%, 8/28/25	EUR	100		117
Woolworths Group Ltd., 4.00%, 9/22/20 (c)	$	150		151
				410
Belgium (0.1%)
Anheuser-Busch InBev SA N.V., 2.75%, 3/17/36	EUR	75		93
Canada (1.0%)
Enbridge, Inc., 2.50%, 1/15/25	$	50		52
Province of Alberta Canada, 1.75%, 8/26/20		260		261
Province of British Columbia Canada, 2.00%, 10/23/22		260		270
Royal Bank of Canada, 2.75%, 2/1/22		250		259
TransCanada PipeLines Ltd., 4.10%, 4/15/30		75		86
				928
Chile (0.2%)
Banco del Estado de Chile, 2.67%, 1/8/21 (c)		200		202
China (0.2%)
Baidu, Inc., 2.88%, 7/6/22		200		205

The accompanying notes are an integral part of the consolidated financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Corporate Bonds (cont'd)
Colombia (0.1%)
Ecopetrol SA, 5.88%, 9/18/23	$	120	$	129
France (0.7%)
BNP Paribas SA, 1.13%, 6/11/26		125		143
BPCE SA, 5.15%, 7/21/24 (c)		200		223
Orange SA, 5.00%, 10/1/26 (d)	EUR	100		131
TOTAL SA, 3.88%, 0/0/0 (d)	$	100		116
				613
Germany (1.2%)
Bayer US Finance II LLC, 3.88%, 12/15/23 (c)		200		220
Daimler Finance North America LLC, 2.70%, 6/14/24 (c)		150		155
Deutsche Bank AG, 2.70%, 7/13/20		225		225
Deutsche Telekom International Finance BV, 3.60%, 1/19/27 (c)		150		168
Kreditanstalt fuer Wiederaufbau, 1.13%, 9/15/32	EUR	190		246
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, 6.00%, 5/26/41	$	100		118
				1,132
India (0.2%)
ONGC Videsh Vankorneft Pte Ltd., 3.75%, 7/27/26		200		206
Ireland (0.1%)
Avolon Holdings Funding Ltd., 2.88%, 2/15/25 (c)		50		42
Israel (0.0%)
Teva Pharmaceutical Finance Netherlands III BV, 2.20%, 7/21/21		32		32
Italy (0.1%)
Intesa Sanpaolo SpA, 6.50%, 2/24/21 (c)		100		103
Korea, Republic of (0.2%)
Korea Hydro & Nuclear Power Co., Ltd., 3.75%, 7/25/23 (c)		200		217
Malaysia (0.2%)
Petronas Capital Ltd., 3.50%, 3/18/25 (c)		200		219
Netherlands (0.4%)
ASR Nederland N.V., 5.00%, 9/30/24 (d)	EUR	100		123
Cooperatieve Rabobank UA, 3.88%, 2/8/22		50		53

	Face Amount (000)		Value (000)
Series G 3.75%, 11/9/20	$	50	$	57
ING Groep N.V., 1.38%, 1/11/28		100		119
				352
Saudi Arabia (0.2%)
Saudi Arabian Oil Co., 3.50%, 4/16/29	$	200		216
Spain (0.5%)
Banco Santander SA, 3.13%, 1/19/27		100		122
5.18%, 11/19/25		200		225
CaixaBank SA, 0.75%, 4/18/23	EUR	100		113
				460
Switzerland (0.5%)
Syngenta Finance N.V., 4.44%, 4/24/23 (c)	$	200		210
UBS Group AG, 3.49%, 5/23/23 (c)		200		209
				419
United Arab Emirates (0.2%)
ADCB Finance Cayman Ltd., 4.00%, 3/29/23 (c)		200		211
United Kingdom (1.4%)
BAT Capital Corp., 3.56%, 8/15/27		125		135
BP Capital Markets PLC, 2.50%, 11/6/22		100		104
Heathrow Funding Ltd., 4.88%, 7/15/23 (c)		100		103
HSBC Holdings PLC, 4.25%, 3/14/24		200		216
Lloyds Banking Group PLC, 2.44%, 2/5/26		200		206
Nationwide Building Society, 3.77%, 3/8/24 (c)		200		211
NGG Finance PLC, 5.63%, 6/18/73	GBP	100		139
Royal Bank of Scotland Group PLC, 3.88%, 9/12/23		200		216
				1,330
United States (6.5%)
AbbVie, Inc., 3.20%, 11/21/29 (c)	$	100		110
Air Lease Corp., 2.30%, 2/1/25		75		72
Amazon.com, Inc., 2.80%, 8/22/24		75		82
American International Group, Inc., 4.88%, 6/1/22		50		54
American Tower Corp., 2.40%, 3/15/25		50		53
Apple, Inc., 2.50%, 2/9/22		200		207

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Corporate Bonds (cont'd)
AT&T, Inc., 1.80%, 9/5/26	EUR	100	$	118
AvalonBay Communities, Inc., Series G 2.95%, 9/15/22	$	50		52
Bank of America Corp., MTN 4.00%, 1/22/25		175		193
Boeing Co. (The), 5.15%, 5/1/30		125		140
Campbell Soup Co., 2.38%, 4/24/30		50		52
Chubb INA Holdings, Inc., 0.88%, 6/15/27	EUR	100		113
Cigna Corp., 3.05%, 10/15/27 (c)	$	50		54
Citigroup, Inc., 2.57%, 6/3/31		50		52
5.50%, 9/13/25		75		89
Comcast Corp., 1.95%, 1/15/31		75		76
3.40%, 4/1/30		50		57
Crown Castle International Corp., 3.30%, 7/1/30		25		28
CVS Health Corp., 4.10%, 3/25/25		125		141
Deere & Co., 3.10%, 4/15/30		25		28
Diamondback Energy, Inc., 2.88%, 12/1/24		100		100
Dollar Tree, Inc., 3.70%, 5/15/23		75		80
Emerson Electric Co., 1.25%, 10/15/25	EUR	125		148
Energy Transfer Operating LP, 2.90%, 5/15/25	$	150		153
Ford Motor Credit Co. LLC, 3.09%, 1/9/23		200		191
Fox Corp., 4.71%, 1/25/29		50		60
Georgia-Pacific LLC, 2.30%, 4/30/30 (c)		75		78
Goldman Sachs Group, Inc. (The), 2.88%, 10/31/22		75		77
HCA, Inc., 5.25%, 6/15/49		25		30
HSBC USA, Inc., 3.50%, 6/23/24		100		109
Intel Corp., 3.90%, 3/25/30		100		121
International Business Machines Corp., 3.00%, 5/15/24		250		271
JPMorgan Chase & Co., 3.70%, 5/6/30		75		86
Kroger Co. (The), 2.20%, 5/1/30		50		52

	Face Amount (000)		Value (000)
Las Vegas Sands Corp., 3.20%, 8/8/24	$	25	$	25
3.50%, 8/18/26		50		50
Level 3 Financing, Inc., 3.40%, 3/1/27 (c)		100		106
McDonald's Corp., MTN 3.38%, 5/26/25		100		111
Metropolitan Life Global Funding I, 2.40%, 1/8/21 (c)		200		202
2.95%, 4/9/30 (c)		150		165
Microsoft Corp., 1.55%, 8/8/21		200		203
Newmont Corp., 3.70%, 3/15/23		10		10
NextEra Energy Capital Holdings, Inc., 2.75%, 11/1/29		100		108
NIKE, Inc., 2.85%, 3/27/30		50		56
NVIDIA Corp., 2.85%, 4/1/30		75		84
Occidental Petroleum Corp., 3.20%, 8/15/26		35		29
5.55%, 3/15/26		75		69
Omnicom Group, Inc., 4.20%, 6/1/30		75		87
Oracle Corp., 2.95%, 4/1/30		50		56
3.40%, 7/8/24		75		82
Pacific Gas and Electric Co., 2.50%, 2/1/31		75		74
PepsiCo, Inc., 2.63%, 4/28/26	EUR	100		128
Prologis Euro Finance LLC, 1.88%, 1/5/29		100		123
salesforce.com, Inc., 3.25%, 4/11/23	$	100		107
Synchrony Bank, 3.00%, 6/15/22		250		255
Target Corp., 2.65%, 9/15/30		25		27
TJX Cos., Inc. (The), 3.88%, 4/15/30		100		118
Union Pacific Corp., 3.95%, 9/10/28		50		59
Verizon Communications, Inc., 4.67%, 3/15/55		43		59
Visa, Inc., 3.15%, 12/14/25		75		84
Walt Disney Co. (The), 2.65%, 1/13/31		100		106
Wells Fargo & Co., 2.57%, 2/11/31		75		79
2.88%, 10/30/30		50		54
				6,043
Total Corporate Bonds (Cost $12,986)				13,562

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (1.0%)
United States (1.0%)
Federal Home Loan Mortgage Corporation, 3.00%, 9/25/45 - 5/25/47	$	406	$	416
3.50%, 5/25/45 - 7/25/46		160		167
4.00%, 5/25/45		15		15
Seasoned Credit Risk Transfer Trust, 3.00%, 11/25/57 - 10/25/58		279		306
4.00%, 10/25/58		24		26
Total Mortgages — Other (Cost $875)				930
Sovereign (18.3%)
Argentina (0.3%)
Argentine Republic Government International Bond, 5.88%, 1/11/28		750		300
Australia (0.6%)
Australia Government Bond, 2.50%, 5/21/30	AUD	380		303
2.75%, 11/21/29		350		283
				586
Austria (0.0%)
Republic of Austria Government Bond, 2.10%, 9/20/17 (c)	EUR	15		33
Belgium (0.4%)
Kingdom of Belgium Government Bond, 0.90%, 6/22/29 (c)		30		37
1.70%, 6/22/50 (c)		80		117
1.90%, 6/22/38 (c)		140		201
				355
Canada (1.5%)
Canadian Government Bond, 2.25%, 6/1/29	CAD	1,160		986
Province of Ontario Canada, 2.30%, 6/15/26		230		250
Province of Quebec Canada, 1.35%, 5/28/30		210		214
				1,450
China (1.2%)
China Government Bond, 3.13%, 11/21/29	$	4,990		721
3.86%, 7/22/49		1,430		211
Sinopec Group Overseas Development 2013 Ltd., 2.63%, 10/17/20	EUR	130		147
				1,079
Denmark (0.1%)
Denmark Government Bond, 0.50%, 11/15/27	DKK	570		92
Finland (0.1%)
Finland Government Bond, 1.13%, 4/15/34 (c)	EUR	60		78

	Face Amount (000)		Value (000)
France (0.9%)
French Republic Government Bond OAT, 0.00%, 11/25/29	$	460	$	526
2.00%, 5/25/48 (c)		190		296
				822
Germany (0.8%)
Bundesrepublik Deutschland Bundesanleihe, 0.25%, 2/15/29		250		301
4.25%, 7/4/39		50		105
State of North Rhine-Westphalia Germany, 1.65%, 2/22/38		240		341
				747
Greece (2.6%)
Hellenic Republic Government Bond, 3.75%, 1/30/28		1,785		2,405
Hungary (0.0%)
Hungary Government Bond, 3.00%, 8/21/30	HUF	4,000		14
Indonesia (0.3%)
Indonesia Government International Bond, 1.75%, 4/24/25	EUR	130		148
Indonesia Treasury Bond, 8.25%, 5/15/29	IDR	753,000		56
8.38%, 3/15/34		880,000		65
				269
Italy (1.0%)
Italy Buoni Poliennali Del Tesoro, 1.40%, 5/26/25 (c)	EUR	100		115
1.75%, 7/1/24		455		536
2.45%, 9/1/50 (c)		220		260
				911
Japan (3.6%)
Japan Government Ten Year Bond, 0.10%, 6/20/29	JPY	127,000		1,188
Japan Government Thirty Year Bond, 0.30%, 6/20/46		50,000		438
0.40%, 9/20/49		30,000		265
1.70%, 6/20/33		58,000		642
2.00%, 9/20/40		65,000		785
				3,318
Korea, Republic of (0.7%)
Export-Import Bank of Korea, 2.38%, 6/25/24	$	200		211
Korea Electric Power Corp., 2.50%, 6/24/24 (c)		200		211
Korea International Bond, 2.00%, 6/19/24		200		209
				631
Malaysia (0.2%)
Malaysia Government Bond, 3.96%, 9/15/25	MYR	600		150

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Sovereign (cont'd)
Mexico (0.6%)
Mexican Bonos, Series M 7.50%, 6/3/27	MXN	2,700	$	131
8.50%, 5/31/29		800		41
10.00%, 12/5/24		2,000		105
Mexico Government International Bond, 4.50%, 4/22/29		200		218
Petroleos Mexicanos, 6.84%, 1/23/30 (c)		92		81
6.95%, 1/28/60 (c)	$	20		15
				591
Netherlands (0.2%)
Netherlands Government Bond, 0.00%, 7/15/30 (c)		170		197
2.75%, 1/15/47 (c)		20		39
				236
New Zealand (0.0%)
New Zealand Government Bond, 3.00%, 4/20/29	NZD	30		23
Norway (0.0%)
Norway Government Bond, 1.38%, 8/19/30 (c)	NOK	200		22
Poland (0.1%)
Republic of Poland Government Bond, 2.50%, 7/25/27	PLN	210		58
Portugal (0.1%)
Portugal Obrigacoes do Tesouro OT, 0.70%, 10/15/27 (c)	EUR	100		117
Russia (0.1%)
Russian Federal Bond — OFZ, 6.90%, 5/23/29	RUB	3,000		46
7.95%, 10/7/26		5,400		86
				132
Spain (0.7%)
Spain Government Bond, 1.25%, 10/31/30(c)	EUR	450		545
2.70%, 10/31/48 (c)		40		61
3.45%, 7/30/66 (c)		21		39
				645
Supernational (0.7%)
European Investment Bank, 0.20%, 7/15/24		190		221
International Bank for Reconstruction & Development, 2.20%, 2/27/24	AUD	620		452
				673
Sweden (0.1%)
Sweden Government Bond, 0.75%, 5/12/28	SEK	670		77

	Face Amount (000)		Value (000)
United Kingdom (1.4%)
United Kingdom Gilt, 1.63%, 10/22/28	GBP	210	$	294
3.50%, 1/22/45		380		776
4.25%, 9/7/39		120		249
				1,319
Total Sovereign (Cost $16,444)				17,133
U.S. Treasury Securities (2.5%)
United States (2.5%)
U.S. Treasury Bonds, 1.25%, 5/15/50	$	410		394
2.50%, 2/15/45		340		420
3.13%, 5/15/48		400		561
4.25%, 11/15/40		620		969
Total U.S. Treasury Securities (Cost $2,190)				2,344
Total Fixed Income Securities (Cost $36,264)				37,684
	Shares
Common Stocks (37.2%)
Australia (0.7%)
AGL Energy Ltd.		461		5
Alumina Ltd.		4,631		5
Amcor PLC CDI		1,346		14
AMP Ltd. (e)		3,700		5
ASX Ltd.		241		14
Australia & New Zealand Banking Group Ltd.		3,142		41
BHP Group Ltd.		2,299		57
Brambles Ltd.		1,513		11
CIMIC Group Ltd.		211		4
Coca-Cola Amatil Ltd.		317		2
Coles Group Ltd.		952		11
Commonwealth Bank of Australia		1,030		50
CSL Ltd.		393		78
Fortescue Metals Group Ltd.		1,401		14
GPT Group (The) REIT		4,072		12
Incitec Pivot Ltd.		2,326		3
Insurance Australia Group Ltd.		2,387		10
Macquarie Group Ltd.		349		29
National Australia Bank Ltd.		3,023		38
Newcrest Mining Ltd.		598		13
OneMarket Ltd. (e)		137		—
Orica Ltd.		536		6
Origin Energy Ltd.		1,182		5
Orora Ltd.		1,212		2
QBE Insurance Group Ltd.		2,084		13
Rio Tinto Ltd.		383		26
Santos Ltd.		1,032		4
Scentre Group REIT		5,003		8
Shopping Centres Australasia Property Group REIT		331		—	@
South32 Ltd. (ASX)		3,013		4
South32 Ltd. (LSE)		7,996		11
Star Entertainment Grp Ltd. (The)		218		—	@

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Australia (cont'd)
Stockland REIT		4,655	$	11
Suncorp Group Ltd.		1,395		9
Sydney Airport		452		2
Tabcorp Holdings Ltd.		224		1
Telstra Corp., Ltd.		3,331		7
Transurban Group		1,649		16
Treasury Wine Estates Ltd.		801		6
Wesfarmers Ltd.		952		30
Westpac Banking Corp.		2,666		33
Woodside Petroleum Ltd.		584		9
Woolworths Group Ltd.		1,123		29
				648
Austria (0.0%)
Erste Group Bank AG (e)		315		8
IMMOFINANZ AG (e)		56		1
Verbund AG		75		3
voestalpine AG		158		3
				15
Belgium (0.1%)
Ageas		219		8
Anheuser-Busch InBev SA N.V.		525		26
Colruyt SA		71		4
Groupe Bruxelles Lambert SA		119		10
KBC Group N.V.		89		5
Solvay SA		57		4
Umicore SA		254		12
				69
Canada (0.8%)
Agnico Eagle Mines Ltd.		100		6
Bank of Montreal		176		9
Bank of Nova Scotia (The)		267		11
Barrick Gold Corp. (LSE)		1,449		38
Barrick Gold Corp. (NYSE)		14,201		383
BCE, Inc.		300		12
Blackberry Ltd. (e)		276		1
Brookfield Asset Management, Inc., Class A		563		19
Brookfield Business Partners LP		20		1
Cameco Corp.		176		2
Canadian Imperial Bank of Commerce		176		12
Canadian National Railway Co.		162		14
Canadian Natural Resources Ltd.		262		5
Canadian Pacific Railway Ltd.		100		25
Cenovus Energy, Inc.		362		2
Crescent Point Energy Corp.		286		—	@
Eldorado Gold Corp. (e)		94		1
Enbridge, Inc. (NYSE)		338		10
Enbridge, Inc. (TSE)		357		11
George Weston Ltd.		17		1
Imperial Oil Ltd.		95		2
Kinross Gold Corp. (e)		352		3
Loblaw Cos., Ltd.		129		6

	Shares		Value (000)
Magna International, Inc.		171	$	8
Manulife Financial Corp.		581		8
National Bank of Canada		300		14
Nutrien Ltd.		329		11
Obsidian Energy Ltd. (e)		71		—	@
Power Corp. of Canada		171		3
PrairieSky Royalty Ltd.		19		—	@
Rogers Communications, Inc., Class B		181		7
Royal Bank of Canada		252		17
Sun Life Financial, Inc.		267		10
Suncor Energy, Inc.		533		9
TC Energy Corp.		171		7
Teck Resources Ltd., Class B		376		4
Thomson Reuters Corp.		263		18
Toronto-Dominion Bank (The)		329		15
Wheaton Precious Metals Corp.		281		12
Yamana Gold, Inc.		457		2
				719
China (0.0%)
China Common Rich Renewable Energy Investments Ltd.		18,000		—
Wharf Holdings Ltd. (The) (f)		1,400		3
Yum China Holdings, Inc.		356		17
				20
Denmark (0.4%)
AP Moller — Maersk A/S Series A		5		5
AP Moller — Maersk A/S Series B		9		10
Danske Bank A/S (e)		634		8
Drilling Co of 1972 A/S/The (e)		30		1
DSV A/S		348		43
Novo Nordisk A/S Series B		3,773		246
Novozymes A/S Series B		307		18
Vestas Wind Systems A/S		359		37
				368
Finland (0.1%)
Elisa Oyj		163		10
Fortum Oyj		382		7
Kone Oyj, Class B		343		24
Metso Oyj		120		4
Nokia Oyj		3,329		15
Nokian Renkaat Oyj		141		3
Nordea Bank Abp (e) (OMXH)		35		—	@
Nordea Bank Abp (e) (SSE)		3,766		26
Sampo Oyj, Class A		355		12
Stora Enso Oyj, Class R		588		7
UPM-Kymmene Oyj		325		10
Valmet Oyj		120		3
Wartsila Oyj Abp		513		4
				125

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
France (1.1%)
Accor SA (e)		3,812	$	104
Aeroports de Paris (ADP)		32		3
Air Liquide SA		366		53
Airbus SE (e)		396		28
Alstom SA		238		11
ArcelorMittal (e)		262		3
AXA SA		1,795		38
BNP Paribas SA (e)		1,161		46
Bouygues SA (e)		208		7
Capgemini SE		195		23
Carrefour SA		436		7
CGG SA (e)		5		—	@
Cie de Saint-Gobain (e)		408		15
Cie Generale des Etablissements Michelin SCA		214		22
Covivio REIT		31		2
Credit Agricole SA (e)		1,522		14
Danone SA		432		30
Electricite de France SA		328		3
Engie SA (e)		1,158		14
EssilorLuxottica SA (e)		178		23
Gecina SA REIT		22		3
Getlink SE (e)		557		8
Hermes International		23		19
Klepierre SA REIT		187		4
L'Oreal SA (BSRM) (e)		246		79
Legrand SA		114		9
LVMH Moet Hennessy Louis Vuitton SE		185		82
Orange SA		1,686		20
Pernod Ricard SA		206		32
Peugeot SA (e)		226		4
Publicis Groupe SA		183		6
Renault SA (e)		194		5
Safran SA (e)		147		15
Sanofi		455		46
Schneider Electric SE		459		51
SES SA		360		3
Societe Generale SA (e)		868		15
Sodexo SA		160		11
Thales SA		92		7
TOTAL SA		1,305		50
Unibail-Rodamco-Westfield REIT		52		3
Unibail-Rodamco-Westfield REIT CDI		1,000		3
Vallourec SA (e)		2		—	@
Veolia Environnement SA		344		8
Vinci SA		487		45
Vivendi SA		1,030		27
				1,001
Germany (0.7%)
Adidas AG (e)		126		33
Allianz SE (Registered)		284		58
BASF SE		417		24

	Shares		Value (000)
Bayer AG (Registered)		471	$	35
Bayerische Motoren Werke AG		254		16
CECONOMY AG (e)		125		1
Commerzbank AG (e)		55		—	@
Continental AG (e)		60		6
Daimler AG (Registered)		486		20
Deutsche Bank AG (Registered) (e)		628		6
Deutsche Boerse AG		110		20
Deutsche Lufthansa AG (Registered) (e)		129		1
Deutsche Post AG (Registered)		433		16
Deutsche Telekom AG (Registered)		1,535		26
E.ON SE		1,058		12
Fraport AG Frankfurt Airport Services Worldwide (e)		25		1
Fresenius Medical Care AG & Co., KGaA		133		12
Fresenius SE & Co., KGaA		290		14
HeidelbergCement AG		44		2
Henkel AG & Co., KGaA		114		10
Henkel AG & Co., KGaA (Preference)		211		20
Infineon Technologies AG		911		21
K+S AG (Registered)		63		—	@
LANXESS AG		38		2
Linde PLC		29		6
Linde PLC (e)		167		35
Merck KGaA		138		16
METRO AG		125		1
Muenchener Rueckversicherungs- Gesellschaft AG in Muenchen (Registered)		146		38
OSRAM Licht AG (e)		40		2
Porsche Automobil Holding SE (Preference)		188		11
QIAGEN N.V. (e)		321		14
RWE AG		346		12
Salzgitter AG (e)		52		1
SAP SE		563		79
Siemens AG (Registered)		408		48
thyssenKrupp AG (e)		146		1
Uniper SE		105		3
Volkswagen AG		26		4
Volkswagen AG (Preference)		107		16
				643
Hong Kong (0.1%)
Bank of East Asia Ltd. (The)		810		2
BOC Hong Kong Holdings Ltd.		1,000		3
CK Asset Holdings Ltd.		1,052		6
CK Hutchison Holdings Ltd.		1,052		7
CLP Holdings Ltd.		200		2
Esprit Holdings Ltd. (e)		1,397		—	@
Global Brands Group Holding Ltd. (e)		1,407		—	@
Hang Lung Group Ltd.		1,000		2
Hang Lung Properties Ltd.		1,000		2
Hang Seng Bank Ltd.		300		5
Henderson Land Development Co., Ltd.		1,150		5
Hong Kong & China Gas Co., Ltd.		2,680		4

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Hong Kong (cont'd)
I-CABLE Communications Ltd. (e)		1,072	$	—	@
Kerry Logistics Network Ltd.		250		—	@
Kerry Properties Ltd.		500		1
Link REIT		254		2
MTR Corp., Ltd.		514		3
New World Development Co. Ltd.		533		3
Power Assets Holdings Ltd.		500		3
Sands China Ltd.		800		3
Shangri-La Asia Ltd.		12,000		10
Sino Land Co., Ltd.		791		1
Sun Hung Kai Properties Ltd.		1,030		13
Swire Pacific Ltd., Class A		1,000		5
Swire Properties Ltd.		150		1
Wharf Real Estate Investment Co., Ltd.		400		2
Wynn Macau Ltd.		400		1
				86
Ireland (0.0%)
CRH PLC		488		17
Italy (0.1%)
Assicurazioni Generali SpA		766		12
Atlantia SpA (e)		203		3
Banco BPM SpA (e)		215		—	@
CNH Industrial N.V. (e)		456		3
Enel SpA		4,573		40
Eni SpA		1,280		12
EXOR N.V.		55		3
Ferrari N.V.		61		11
Fiat Chrysler Automobiles N.V. (e)		607		6
Intesa Sanpaolo SpA (e)		6,580		13
Italgas SpA		197		1
Leonardo SpA		351		2
Mediobanca Banca di Credito Finanziario SpA		449		3
Prysmian SpA		116		3
Rizzoli Corriere Della Sera Mediagroup SpA (e)		41		—	@
Saipem SpA		15		—	@
Snam SpA		989		5
Telecom Italia SpA		7,592		3
Tenaris SA		277		2
Terna Rete Elettrica Nazionale SpA		922		6
UniCredit SpA (e)		687		6
Unione di Banche Italiane SpA (e)		471		2
				136
Japan (1.1%)
Mitsubishi Estate Co., Ltd.		15,560		232
Mitsui Fudosan Co., Ltd.		15,375		273
Nomura Real Estate Holdings, Inc.		2,796		52
Sumitomo Realty & Development Co., Ltd.		8,851		244
Takeda Pharmaceutical Co., Ltd. ADR (e)		1,912		34
Tokyo Tatemono Co., Ltd.		7,641		88
Tokyu Fudosan Holdings Corp.		16,962		80
				1,003

	Shares		Value (000)
Netherlands (0.4%)
Akzo Nobel N.V.		202	$	18
ASML Holding N.V.		299		110
Basic-Fit N.V. (e)		788		21
Coca-Cola European Partners PLC		129		5
Fugro N.V. CVA (e)		56		—	@
Heineken N.V.		360		33
ING Groep N.V.		3,316		23
Koninklijke Ahold Delhaize N.V.		882		24
Koninklijke KPN N.V.		1,070		3
Koninklijke Philips N.V. (e)		1,098		51
Koninklijke Vopak N.V.		68		4
PostNL N.V.		385		1
Unilever N.V. CVA		1,146		61
				354
New Zealand (0.0%)
Auckland International Airport Ltd.		1,725		7
Contact Energy Ltd.		1,252		5
Fletcher Building Ltd.		1,181		3
Mercury NZ Ltd.		1,212		4
Meridian Energy Ltd.		2,247		7
Ryman Healthcare Ltd.		661		6
Spark New Zealand Ltd.		3,134		9
				41
Norway (0.1%)
Akastor ASA (e)		246		—	@
Aker Solutions ASA (e)		246		—	@
DNB ASA		1,786	��	24
Equinor ASA		1,764		26
Kvaerner ASA (e)		246		—	@
Norsk Hydro ASA (e)		1,373		4
Orkla ASA		933		8
REC Silicon ASA (e)		118		—	@
Subsea 7 SA (e)		324		2
Telenor ASA		769		11
Yara International ASA		272		10
				85
Poland (0.0%)
Jeronimo Martins SGPS SA		241		4
Portugal (0.0%)
EDP — Energias de Portugal SA		2,371		11
Galp Energia SGPS SA		247		3
Pharol SGPS SA (Registered) (e)		610		—	@
				14
South Africa (0.0%)
Nedbank Group Ltd.		249		2
Old Mutual Ltd.		7,755		5
				7

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Spain (0.2%)
ACS Actividades de Construccion y Servicios SA		195	$	5
Amadeus IT Group SA		176		9
Banco Bilbao Vizcaya Argentaria SA		3,600		12
Banco de Sabadell SA		4,429		2
Banco Santander SA (e)		6,415		16
CaixaBank SA		823		2
Enagas SA		211		5
Ferrovial SA		309		8
Grifols SA		163		5
Grifols SA (Preference) Class B		38		1
Iberdrola SA		2,771		32
Industria de Diseno Textil SA		824		22
International Consolidated Airlines Group SA		1,054		3
Melia Hotels International SA		3,116		13
Naturgy Energy Group SA		192		4
Red Electrica Corp., SA		338		6
Repsol SA		870		8
Telefonica SA		2,506		12
				165
Sweden (0.5%)
Alfa Laval AB (e)		368		8
Assa Abloy AB, Class B		1,262		26
Atlas Copco AB, Class A		836		36
Atlas Copco AB, Class B		487		18
Boliden AB		338		8
Electrolux AB, Class B		299		5
Electrolux Professional AB (e)		293		1
Epiroc AB, Class A		836		10
Epiroc AB, Class B		487		6
Essity AB, Class B (e)		763		25
Getinge AB, Class B		295		5
Hennes & Mauritz AB, Class B		1,157		17
Hexagon AB, Class B (e)		320		19
Husqvarna AB, Class B		581		5
ICA Gruppen AB		103		5
Industrivarden AB, Class C (e)		220		5
Investor AB, Class B		578		31
Kinnevik AB, Class B		299		8
L E Lundbergforetagen AB, Class B (e)		114		5
Lundin Petroleum AB		233		6
Millicom International Cellular SA SDR		85		2
Modern Times Group MTG AB, Class B (e)		17		—	@
Nordic Entertainment Group AB, Class B (e)		17		1
Sandvik AB (e)		1,387		26
Securitas AB, Class B (e)		388		5
Skandinaviska Enskilda Banken AB, Class A (e)		1,896		16
Skanska AB, Class B (e)		421		9
SKF AB, Class B		474		9
Svenska Handelsbanken AB, Class A (e)		1,873		18
Swedbank AB, Class A (e)		1,120		14
Swedish Match AB		224		16
Tele2 AB, Class B		446		6

	Shares		Value (000)
Telefonaktiebolaget LM Ericsson, Class B		3,909	$	36
Telia Co., AB		3,218		12
Volvo AB, Class B (e)		1,938		30
				449
Switzerland (1.7%)
ABB Ltd. (Registered)		2,951		67
Adecco Group AG (Registered)		297		14
Alcon, Inc. (e)		261		15
Baloise Holding AG (Registered)		114		17
Cie Financiere Richemont SA (Registered)		602		39
Credit Suisse Group AG (Registered)		1,554		16
GAM Holding AG (e)		529		1
Geberit AG (Registered)		95		48
Givaudan SA (Registered)		16		60
Idorsia Ltd. (e)		336		11
Julius Baer Group Ltd. (e)		315		13
Kuehne & Nagel International AG (Registered) (e)		94		16
LafargeHolcim Ltd. (Registered) (e) (Euronext)		134		6
LafargeHolcim Ltd. (Registered) (e) (SIX)		307		13
Lonza Group AG (Registered)		141		75
Nestle SA (Registered)		3,546		393
Novartis AG (Registered)		1,300		113
Roche Holding AG (Genusschein)		1,268		439
Schindler Holding AG		100		24
SGS SA (Registered)		14		34
Sonova Holding AG (Registered)		150		30
Swatch Group AG (The)		42		8
Swiss Life Holding AG (Registered) (e)		46		17
Swiss Re AG		166		13
UBS Group AG (Registered)		4,400		51
Zurich Insurance Group AG		217		77
				1,610
United Kingdom (2.6%)
3i Group PLC		1,210		12
Admiral Group PLC		268		8
Anglo American PLC		1,521		35
Antofagasta PLC		533		6
Ashtead Group PLC		568		19
Associated British Foods PLC		446		11
AstraZeneca PLC		1,528		159
Auto Trader Group PLC		1,289		8
Aviva PLC		4,677		16
Babcock International Group PLC		360		1
BAE Systems PLC		3,585		21
Barclays PLC		19,463		27
Barratt Developments PLC		1,294		8
Berkeley Group Holdings PLC		173		9
BHP Group PLC		2,514		51
BP PLC		23,882		92
British American Tobacco PLC		2,865		110
British Land Co., PLC (The) REIT		1,269		6
BT Group PLC		9,897		14
Bunzl PLC		455		12

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Burberry Group PLC		550	$	11
Capita PLC (e)		954		1
Carnival PLC		266		3
Centrica PLC		7,841		4
Coca-Cola HBC AG		245		6
Compass Group PLC		1,791		25
ConvaTec Group PLC		2,001		5
Croda International PLC		173		11
DCC PLC		115		10
Diageo PLC		3,046		101
Direct Line Insurance Group PLC		1,829		6
Dixons Carphone PLC		1,404		2
easyJet PLC		225		2
Experian PLC		1,068		38
Ferguson PLC		282		23
Fresnillo PLC		324		3
G4S PLC		2,164		3
GlaxoSmithKline PLC		5,914		119
Glencore PLC (e)		13,960		30
Hammerson PLC REIT		1,143		1
Hargreaves Lansdown PLC		339		7
Hikma Pharmaceuticals PLC		204		6
HSBC Holdings PLC		24,501		114
IMI PLC		381		4
Imperial Brands PLC		1,081		21
InterContinental Hotels Group PLC		2,754		122
InterContinental Hotels Group PLC ADR		1,100		49
Intertek Group PLC		205		14
Intu Properties PLC REIT (e)		1,268		—	@
Investec PLC		931		2
ITV PLC		4,716		4
J Sainsbury PLC		2,261		6
Johnson Matthey PLC		248		6
Kingfisher PLC		3,052		8
Land Securities Group PLC REIT		967		7
Legal & General Group PLC		6,698		18
Lloyds Banking Group PLC		81,779		32
London Stock Exchange Group PLC		366		38
M&G PLC		3,307		7
Marks & Spencer Group PLC		2,152		3
Mediclinic International PLC		533		2
Meggitt PLC		1,017		4
Melrose Industries PLC		4,868		7
Micro Focus International PLC		504		3
Micro Focus International PLC ADR		219		1
Mondi PLC		480		9
National Grid PLC		3,866		47
Next PLC		183		11
Ninety One PLC (e)		465		1
Paragon Offshore PLC (e)(g)		67		—
Pearson PLC		1,132		8
Persimmon PLC (e)		368		10

	Shares		Value (000)
Provident Financial PLC		221	$	1
Prudential PLC		2,947		44
Quilter PLC		2,394		4
Reckitt Benckiser Group PLC		768		71
RELX PLC		1,219		28
Rio Tinto PLC		1,401		79
Rolls-Royce Holdings PLC		2,086		7
Royal Bank of Scotland Group PLC		4,432		7
Royal Dutch Shell PLC, Class A		5,388		86
Royal Dutch Shell PLC, Class B		4,583		69
Royal Mail PLC		1,287		3
RSA Insurance Group PLC		1,337		7
Sage Group PLC (The)		1,323		11
Schroders PLC		168		6
Segro PLC REIT		1,202		13
Severn Trent PLC		312		10
Smith & Nephew PLC		1,003		19
Smiths Group PLC		521		9
SSE PLC		1,135		19
St. James's Place PLC		686		8
Standard Chartered PLC		3,772		20
Standard Life Aberdeen PLC		3,003		10
Tate & Lyle PLC		619		5
Taylor Wimpey PLC		4,204		7
Tesco PLC		9,661		27
Travis Perkins PLC		335		5
TUI AG		585		3
Unilever PLC		1,452		78
United Utilities Group PLC		880		10
Virgin Money UK PLC (e)		888		1
Vodafone Group PLC		29,946		48
Weir Group PLC (The)		297		4
Whitbread PLC (e)		2,738		75
Wm Morrison Supermarkets PLC		2,934		7
WPP PLC		1,510		12
				2,413
United States (26.5%)
3M Co.		855		133
Abbott Laboratories		1,163		106
AbbVie, Inc.		1,258		124
Accenture PLC, Class A		829		178
Adient PLC (e)		38		1
Adobe, Inc. (e)		432		188
AdvanSix, Inc. (e)		142		2
AES Corp.		292		4
Agilent Technologies, Inc.		226		20
Alexion Pharmaceuticals, Inc. (e)		234		26
Alphabet, Inc., Class A (e)		449		637
Alphabet, Inc., Class C (e)		438		619
Altria Group, Inc.		1,413		55
Amazon.com, Inc. (e)		443		1,222
Ameren Corp.		210		15
American Electric Power Co., Inc.		441		35

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
American Express Co.		2,505	$	238
American International Group, Inc.		1,451		45
American Tower Corp. REIT		475		123
Ameriprise Financial, Inc.		224		34
AmerisourceBergen Corp.		270		27
Amgen, Inc.		636		150
Amphenol Corp., Class A		427		41
Analog Devices, Inc.		168		21
Annaly Capital Management, Inc. REIT		480		3
Anthem, Inc.		446		117
Apache Corp.		242		3
Apple, Inc.		3,479		1,269
AT&T, Inc.		3,538		107
Automatic Data Processing, Inc.		434		65
Avanos Medical, Inc. (e)		434		13
Avery Dennison Corp.		290		33
Baker Hughes a GE Co.		467		7
Bank of America Corp.		7,642		182
Bank of New York Mellon Corp. (The)		516		20
Baxter International, Inc.		789		68
Becton Dickinson & Co.		477		114
Bed Bath & Beyond, Inc.		412		4
Berkshire Hathaway, Inc., Class B (e)		711		127
Biogen, Inc. (e)		444		119
BlackRock, Inc.		305		166
Boeing Co. (The)		705		129
Booking Holdings, Inc. (e)		53		84
Boston Properties, Inc. REIT		175		16
Boston Scientific Corp. (e)		457		16
Bristol-Myers Squibb Co.		2,348		138
Broadcom, Inc.		7		2
Brookfield Property Partners LP (e)		138		1
Brookfield Property Partners LP		40		—	@
California Resources Corp. (e)		223		—	@
Capital One Financial Corp.		224		14
Cardinal Health, Inc.		182		10
Carnival Corp.		2		—	@
Carrier Global Corp.		2,212		49
Caterpillar, Inc.		747		95
CDK Global, Inc.		152		6
CenterPoint Energy, Inc.		175		3
CenturyLink, Inc.		480		5
Cerner Corp.		439		30
CF Industries Holdings, Inc.		38		1
CH Robinson Worldwide, Inc.		232		18
Charles Schwab Corp. (The)		514		17
Charter Communications, Inc., Class A (e)		183		93
Chemours Co. (The)		416		6
Chesapeake Energy Corp. (e)		1		—	@
Chevron Corp.		1,197		107
Chipotle Mexican Grill, Inc. (e)		45		47
Choice Hotels International, Inc.		728		57

	Shares		Value (000)
Cigna Corp. (e)		466	$	87
Cintas Corp.		188		50
Cisco Systems, Inc.		3,397		158
CIT Group, Inc.		459		10
Citigroup, Inc.		2,127		109
Citrix Systems, Inc.		247		37
Cleveland-Cliffs, Inc.		20		—	@
CME Group, Inc.		212		34
CNX Resources Corp. (e)		283		2
Coca-Cola Co. (The)		709		32
Cognizant Technology Solutions Corp., Class A		412		23
Colgate-Palmolive Co.		1,800		132
Comcast Corp., Class A		3,494		136
Comerica, Inc.		224		9
Concho Resources, Inc.		122		6
Conduent, Inc. (e)		319		1
ConocoPhillips		1,215		51
CONSOL Energy, Inc. (e)		46		—	@
Consolidated Edison, Inc.		439		32
Corteva, Inc. (e)		778		21
Costco Wholesale Corp.		681		206
Covetrus, Inc. (e)		131		2
Crown Castle International Corp. REIT		449		75
CSX Corp.		444		31
Cummins, Inc.		9		2
CVS Health Corp.		2,070		135
Danaher Corp.		438		77
DaVita, Inc. (e)		302		24
Deere & Co.		24		4
Dell Technologies, Inc., Class C (e)		250		14
Devon Energy Corp.		273		3
Discover Financial Services		427		21
Discovery, Inc., Class A (e)		427		9
Discovery, Inc., Class C (e)		467		9
Dominion Energy, Inc.		270		22
Dow, Inc. (e)		778		32
DR Horton, Inc.		14,181		786
DTE Energy Co.		280		30
Duke Energy Corp.		711		57
DuPont de Nemours, Inc.		778		41
DXC Technology Co.		166		3
Eagle Materials, Inc.		324		23
Eaton Corp., PLC		30		3
eBay, Inc.		1,018		53
Ecolab, Inc.		34		7
Edison International		464		25
Edwards Lifesciences Corp. (e)		1,248		86
Eli Lilly & Co.		848		139
Emerson Electric Co.		861		53
Entergy Corp.		283		27
EOG Resources, Inc.		472		24
Equity Residential REIT		463		27

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
ESC Seventy Seven (g)		15	$	—
Estee Lauder Cos., Inc. (The), Class A		287		54
Exelon Corp.		471		17
Extended Stay America, Inc. (Units)		2,330		26
Exxon Mobil Corp.		2,395		107
Facebook, Inc., Class A (e)		923		210
Fastenal Co.		30		1
FedEx Corp.		443		62
Fidelity National Financial, Inc.		2,460		75
Fidelity National Information Services, Inc.		208		28
Fifth Third Bancorp		412		8
First American Financial Corp.		1,034		50
FirstEnergy Corp.		412		16
Fluor Corp.		45		1
Ford Motor Co.		3,317		20
Fortive Corp.		292		20
Fox Corp., Class A		465		12
Fox Corp., Class B (e)		216		6
Franklin Resources, Inc.		422		9
Freeport-McMoRan, Inc.		5,648		65
Frontier Communications Corp. (e)		34		—	@
Garrett Motion, Inc. (e)		161		1
General Dynamics Corp.		73		11
General Electric Co.		3,472		24
General Mills, Inc.		523		32
Gilead Sciences, Inc.		660		51
Goldman Sachs Group, Inc. (The)		489		97
Halliburton Co.		5,442		71
Healthpeak Properties, Inc. REIT		419		12
Henry Schein, Inc. (e)		429		25
Hershey Co. (The)		166		22
Hess Corp.		232		12
Hewlett Packard Enterprise Co.		808		8
Hilton Worldwide Holdings, Inc.		3,973		292
Home Depot, Inc. (The)		1,150		288
Honeywell International, Inc.		1,217		176
HP, Inc.		497		9
Humana, Inc.		131		51
Hyatt Hotels Corp., Class A		1,545		78
Illinois Tool Works, Inc.		29		5
Intel Corp.		1,733		104
Intercontinental Exchange, Inc.		479		44
International Business Machines Corp.		762		92
Interpublic Group of Cos., Inc. (The)		518		9
Intuit, Inc.		427		126
Intuitive Surgical, Inc. (e)		142		81
Invesco Ltd.		441		5
Iron Mountain, Inc. REIT		600		16
JBG SMITH Properties REIT		65		2
Johnson & Johnson		1,745		245
Johnson Controls International PLC		450		15
JPMorgan Chase & Co.		2,892		272

	Shares		Value (000)
Juniper Networks, Inc.		460	$	11
KB Home		3,453		106
Kellogg Co.		425		28
KeyCorp		440		5
Keysight Technologies, Inc. (e)		126		13
Kimberly-Clark Corp.		635		90
Kimco Realty Corp. REIT		501		6
Kohl's Corp.		302		6
Kontoor Brands, Inc. (e)		49		1
Kraft Heinz Co. (The)		95		3
Kroger Co. (The)		482		16
L Brands, Inc.		266		4
Laboratory Corp. of America Holdings (e)		173		29
Las Vegas Sands Corp.		162		7
Lennar Corp., Class A		11,805		727
Liberty Global PLC, Class A (e)		465		10
Liberty Global PLC Series C (e)		461		10
Liberty Latin America Ltd., Class A (e)		72		1
Liberty Latin America Ltd., Class C (e)		181		2
Lockheed Martin Corp.		15		5
LogMeIn, Inc.		49		4
Louisiana-Pacific Corp.		925		24
Lowe's Cos., Inc.		1,199		162
M&T Bank Corp.		203		21
M/I Homes, Inc. (e)		1,179		41
Macerich Co. (The) REIT		492		4
Mallinckrodt PLC (e)		29		—	@
ManpowerGroup, Inc.		210		14
Marathon Oil Corp.		307		2
Marathon Petroleum Corp.		426		16
Marriott International, Inc., Class A		4,596		394
Marriott Vacations Worldwide Corp.		575		47
Martin Marietta Materials, Inc.		523		108
Masco Corp.		2,457		123
Mastercard, Inc., Class A		1,472		435
McDonald's Corp.		683		126
McKesson Corp.		302		46
MDC Holdings, Inc.		2,392		85
Medtronic PLC		994		91
Merck & Co., Inc.		1,386		107
Meritage Homes Corp. (e)		1,406		107
MGIC Investment Corp.		3,111		25
Microsoft Corp.		3,940		802
Mohawk Industries, Inc. (e)		573		58
Mondelez International, Inc., Class A		687		35
Mosaic Co. (The)		29		—	@
Murphy Oil Corp.		439		6
Murphy USA, Inc. (e)		162		18
Nasdaq, Inc.		188		22
National Oilwell Varco, Inc.		518		6
NetApp, Inc.		304		14
NetScout Systems, Inc. (e)		1,732		44
New York Community Bancorp, Inc.		188		2

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Newmont Goldcorp Corp (NYSE)		4,146	$	256
Newmont Goldcorp Corp. (TSE)		184		11
News Corp., Class A		456		5
News Corp., Class B		310		4
NextEra Energy, Inc.		420		101
NIKE, Inc., Class B		2,168		213
Noble Corp., PLC (e)		254		—	@
Noble Energy, Inc.		310		3
Nordstrom, Inc.		137		2
Norfolk Southern Corp.		458		80
Northrop Grumman Corp.		20		6
NortonLifeLock, Inc.		308		6
NOW, Inc. (e)		188		2
nVent Electric PLC		6		—	@
NVR, Inc. (e)		138		450
O'Reilly Automotive, Inc. (e)		242		102
Occidental Petroleum Corp.		870		16
Omnicom Group, Inc.		277		15
ONE Gas, Inc.		129		10
ONEOK, Inc.		431		14
Oracle Corp.		2,421		134
Otis Worldwide Corp.		1,106		63
Ovintiv, Inc. (NYSE)		165		2
Ovintiv, Inc. (TSE)		72		1
Owens Corning		869		48
PACCAR, Inc.		22		2
PayPal Holdings, Inc. (e)		1,018		177
Pentair PLC		6		—	@
People's United Financial, Inc.		189		2
PepsiCo, Inc.		1,016		134
Perspecta, Inc.		83		2
Pfizer, Inc.		2,798		92
Philip Morris International, Inc.		972		68
Phillips 66		514		37
Pioneer Natural Resources Co.		302		30
Pitney Bowes, Inc.		332		1
PNC Financial Services Group, Inc. (The)		474		50
PPL Corp.		489		13
Procter & Gamble Co. (The)		1,692		202
ProLogis, Inc. REIT		692		65
Public Service Enterprise Group, Inc.		289		14
Public Storage REIT		167		32
Pulte Group, Inc.		10,085		343
QUALCOMM, Inc.		1,596		146
Quest Diagnostics, Inc.		247		28
Range Resources Corp.		146		1
Rayonier Advanced Materials, Inc.		293		1
Rayonier, Inc. REIT		416		10
Raytheon Technologies Corp.		1,763		109
Regions Financial Corp.		436		5
Republic Services, Inc.		418		34
Resideo Technologies, Inc. (e)		236		3

	Shares		Value (000)
Robert Half International, Inc.		224	$	12
Rockwell Automation, Inc.		9		2
Ross Stores, Inc.		420		36
Royal Caribbean Cruises Ltd.		2		—	@
S&P Global, Inc.		417		137
Sabra Health Care, Inc. REIT		118		2
salesforce.com, Inc. (e)		465		87
Schlumberger Ltd.		895		16
Scotts Miracle-Gro Co. (The), Class A		455		61
Sempra Energy		457		54
Simon Property Group, Inc. REIT		449		31
Skyline Champion Corp. (e)		458		11
Southern Co. (The)		283		15
Southwestern Energy Co. (e)		444		1
Starbucks Corp.		1,443		106
State Street Corp.		457		29
Stericycle, Inc. (e)		249		14
Stewart Information Services Corp.		190		6
Stryker Corp.		427		77
Sysco Corp.		287		16
T Rowe Price Group, Inc.		278		34
T-Mobile US, Inc. (e)		73		8
Tapestry, Inc.		446		6
Target Corp.		665		80
TE Connectivity Ltd.		186		15
TechnipFMC PLC		97		1
Texas Instruments, Inc.		1,811		230
Thermo Fisher Scientific, Inc.		306		111
TJX Cos., Inc. (The)		756		38
Toll Brothers, Inc.		4,745		155
Truist Financial Corp.		987		37
UFP Industries, Inc.		462		23
Union Pacific Corp.		1,187		201
United Parcel Service, Inc., Class B		1,207		134
UnitedHealth Group, Inc.		1,163		343
Urban Edge Properties REIT		74		1
US Bancorp		755		28
Valero Energy Corp.		300		18
Varex Imaging Corp. (e)		124		2
Varian Medical Systems, Inc. (e)		275		34
Ventas, Inc. REIT		253		9
Verisk Analytics, Inc.		168		29
Verizon Communications, Inc.		7,341		405
VF Corp.		448		27
ViacomCBS, Inc., Class B		618		14
Visa, Inc., Class A		1,691		327
Vornado Realty Trust REIT		131		5
Vulcan Materials Co.		1,239		144
Walgreens Boots Alliance, Inc.		468		20
Walmart, Inc.		1,666		200
Walt Disney Co. (The)		1,150		128
Washington Prime Group, Inc. REIT		597		1
Waste Management, Inc.		433		46

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Watsco, Inc.		300	$	53
WEC Energy Group, Inc.		220		19
Wells Fargo & Co.		2,353		60
Welltower, Inc. REIT		463		24
Western Digital Corp.		72		3
Western Union Co. (The)		88		2
Westinghouse Air Brake Technologies Corp.		19		1
Weyerhaeuser Co. REIT		518		12
Williams Cos., Inc. (The)		458		9
WPX Energy, Inc. (e)		432		3
WW Grainger, Inc.		5		2
Wyndham Hotels & Resorts, Inc.		1,152		49
Wynn Resorts Ltd.		215		16
Xcel Energy, Inc.		295		18
Xerox Holdings Corp. (e)		241		4
Xylem, Inc.		135		9
Yum! Brands, Inc.		413		36
Zimmer Biomet Holdings, Inc.		249		30
Zoetis, Inc.		810		111
				24,690
Total Common Stocks (Cost $31,258)				34,682
	No. of Rights
Rights (0.0%)
United States (0.0%)
Bristol-Myers Squibb Co. (e)		760		3
T-Mobile US, Inc. (e)		73		—	@
Total Rights (Cost $2)				3
	No. of Warrants
Warrant (0.0%)
France (0.0%)
CGG SA, expires 2/21/22 (e) (Cost $—)		5		—	@
	Shares
Investment Company (3.8%)
United States (3.8%)
SPDR S&P 500 ETF Trust (Cost $2,078)		11,613		3,581
Short-Term Investments (19.3%)
Investment Company (17.6%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note H) (Cost $16,393)		16,393,063		16,393

	Face Amount (000)		Value (000)
U.S. Treasury Security (1.7%)
U.S. Treasury Bill 0.16%, 1/28/21 (h)(i) (Cost $1,559)	$	1,561	$	1,560
Total Short-Term Investments (Cost $17,952)				17,953
Total Investments (100.6%) (Cost $87,554) (j)(k)(l)				93,903
Liabilities in Excess of Other Assets (-0.6%)				(565	)
Net Assets (100.0%)			$	93,338

(a) Floating or variable rate securities: The rates disclosed are as of June 30, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Consolidated Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Consolidated Portfolio of Investments.

(b) Security is subject to delayed delivery.

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

(d) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of June 30, 2020.

(e) Non-income producing security.

(f) Security trades on the Hong Kong exchange.

(g) At June 30, 2020, the Fund held fair valued securities valued at $0, representing 0.0% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(h) Rate shown is the yield to maturity at June 30, 2020.

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

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

(k) The approximate fair value and percentage of net assets, $9,196,000 and 9.9%, 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.

(l) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $11,409,000 and the aggregate gross unrealized depreciation is approximately $3,697,000, resulting in net unrealized appreciation of approximately $7,712,000.

@ Value is less than $500.

ADR American Depositary Receipt.

ASX Australian Securities Exchange.

CDI CHESS Depositary Interest.

CVA Certificaten Van Aandelen.

ETF Exchange Traded Fund.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

EURIBOR Euro Interbank Offered Rate.

Euronext Euronext Paris Exchange.

LIBOR London Interbank Offered Rate.

LSE London Stock Exchange.

MTN Medium Term Note.

NYSE New York Stock Exchange.

OAT Obligations Assimilables du Trésor (Treasury Obligation).

OFZ Obilgatsyi Federal'novo Zaima (Russian Federal Loan Obligation).

OMXH Helsinki Stock Exchange.

REIT Real Estate Investment Trust.

SDR Swedish Depositary Receipt.

SIX Swiss Exchange.

SPDR Standard & Poor's Depository Receipt.

SSE Stockholm Stock Exchange.

TBA To Be Announced.

TSE Toronto Stock Exchange.

USD United States Dollar.

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at June 30, 2020:

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
Bank of America NA	CNH	2,390		$	335		9/17/20	$	(1	)
Bank of America NA	MXN	3,745		$	170		9/3/20		8
Bank of America NA	PLN	67		$	17		9/17/20		(—	@)
Bank of America NA	$	23		HUF	7,137		9/3/20		(1	)
Bank of America NA	$	55		ILS	189		9/17/20		(—	@)
Bank of Montreal	HUF	4,029		$	13		9/17/20		—	@
Bank of Montreal	$	220		CAD	299		9/17/20		1
Barclays Bank PLC	AUD	825		$	571		9/3/20		2
Barclays Bank PLC	CHF	—	@	$	—	@	9/3/20		(—	@)
Barclays Bank PLC	JPY	38		$	—	@	9/17/20		—	@
Barclays Bank PLC	PEN	10		$	3		9/17/20		—	@
Barclays Bank PLC	$	109		CAD	149		9/17/20		—	@
Barclays Bank PLC	$	371		CNY	2,630		9/17/20		(—	@)
Barclays Bank PLC	$	165		SGD	231		9/17/20		—	@
BNP Paribas SA	BRL	24		$	5		9/17/20		—	@
BNP Paribas SA	EUR	53		$	60		9/17/20		—	@
BNP Paribas SA	IDR	364,730		$	26		9/3/20		—	@
BNP Paribas SA	IDR	26,173		$	2		9/17/20		(—	@)
BNP Paribas SA	INR	846		$	11		9/17/20		(—	@)
BNP Paribas SA	JPY	10,860		$	102		9/17/20		1
BNP Paribas SA	PLN	100		$	25		9/3/20		—	@
BNP Paribas SA	RUB	412		$	6		9/17/20		—	@
BNP Paribas SA	SEK	79		$	8		9/17/20		(—	@)
BNP Paribas SA	TRY	1		$	—	@	9/17/20		(—	@)
BNP Paribas SA	TWD	553		$	19		9/17/20		—	@
BNP Paribas SA	$	7		AUD	10		9/17/20		—	@
BNP Paribas SA	$	89		CAD	121		9/17/20		—	@
BNP Paribas SA	$	193		CHF	184		9/3/20		2
BNP Paribas SA	$	60		CHF	57		9/17/20		—	@
BNP Paribas SA	$	12		CLP	9,489		9/17/20		(1	)
BNP Paribas SA	$	4		COP	15,663		9/17/20		(—	@)
BNP Paribas SA	$	30		DKK	200		9/17/20		(—	@)
BNP Paribas SA	$	2,188		EUR	1,926		9/3/20		(21	)
BNP Paribas SA	$	600		GBP	477		9/17/20		(8	)
BNP Paribas SA	$	28		IDR	405,709		9/3/20		—	@
BNP Paribas SA	$	6		JPY	632		9/3/20		(—	@)
BNP Paribas SA	$	73		SGD	101		9/3/20		—	@
BNP Paribas SA	$	121		THB	3,823		9/3/20		3

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts (cont'd):

Counterparty	Contracts to Deliver (000)		In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
Citibank NA	RUB	4,734	$	68		9/3/20	$	2
Citibank NA	$	12	CAD	17		9/17/20		—	@
Citibank NA	$	123	CNH	875		9/3/20		(—	@)
Citibank NA	$	36	CZK	843		9/17/20		(—	@)
Citibank NA	$	302	GBP	241		9/3/20		(4	)
Citibank NA	$	74	HKD	572		9/17/20		—	@
Citibank NA	$	50	ILS	172		9/17/20		(—	@)
Citibank NA	$	12	KRW	14,435		9/17/20		(—	@)
Citibank NA	$	40	PLN	156		9/3/20		(—	@)
Citibank NA	$	5	THB	145		9/17/20		—	@
Commonwealth Bank of Australia	NZD	13	$	8		9/17/20		(—	@)
Credit Suisse International	JPY	379	$	4		9/17/20		—	@
Goldman Sachs International	JPY	10,816	$	101		9/17/20		1
Goldman Sachs International	$	98	AUD	144		9/17/20		1
Goldman Sachs International	$	116	CAD	158		9/17/20		—	@
Goldman Sachs International	$	120	CHF	113		9/17/20		1
Goldman Sachs International	$	724	CNH	5,139		9/3/20		1
Goldman Sachs International	$	489	EUR	434		9/17/20		(—	@)
Goldman Sachs International	$	31	GBP	24		9/17/20		(—	@)
Goldman Sachs International	$	381	KRW	463,082		9/3/20		4
JPMorgan Chase Bank NA	AUD	23	$	16		9/3/20		(—	@)
JPMorgan Chase Bank NA	CAD	57	$	42		9/3/20		(—	@)
JPMorgan Chase Bank NA	DKK	102	$	15		9/3/20		(—	@)
JPMorgan Chase Bank NA	EUR	428	$	482		9/3/20		(—	@)
JPMorgan Chase Bank NA	GBP	90	EUR	100		9/3/20		1
JPMorgan Chase Bank NA	JPY	275	$	3		9/17/20		—	@
JPMorgan Chase Bank NA	$	83	CAD	113		9/17/20		—	@
JPMorgan Chase Bank NA	$	133	EUR	118		9/17/20		(—	@)
JPMorgan Chase Bank NA	$	113	EUR	100		9/3/20		(1	)
JPMorgan Chase Bank NA	$	96	GBP	77		9/17/20		(1	)
JPMorgan Chase Bank NA	$	137	HKD	1,060		9/17/20		—	@
JPMorgan Chase Bank NA	$	1,998	JPY	217,633		9/3/20		19
JPMorgan Chase Bank NA	$	29	NOK	267		9/3/20		(1	)
JPMorgan Chase Bank NA	ZAR	19	$	1		9/17/20		—	@
State Street Bank and Trust Co.	MYR	193	$	45		9/3/20		—	@
State Street Bank and Trust Co.	$	8	HKD	61		9/17/20		—	@
UBS AG	DKK	112	$	17		9/17/20		(—	@)
UBS AG	EUR	29	$	32		9/17/20		—	@
UBS AG	GBP	107	$	133		9/17/20		(—	@)
UBS AG	GBP	39	$	48		9/3/20		—	@
UBS AG	JPY	13,048	$	121		9/3/20		—	@
UBS AG	JPY	8,298	$	77		9/17/20		1
UBS AG	JPY	3,872	$	36		9/17/20		—	@
UBS AG	JPY	2,085	$	19		9/17/20		—	@
UBS AG	MXN	559	$	25		9/17/20		1
UBS AG	NOK	297	$	31		9/17/20		—	@
UBS AG	TRY	2	$	—	@	9/17/20		(—	@)
UBS AG	$	257	AUD	376		9/17/20		2
UBS AG	$	507	CAD	690		9/17/20		1
UBS AG	$	631	CHF	599		9/17/20		2
UBS AG	$	49	EUR	44		9/17/20		(—	@)
UBS AG	$	236	EUR	210		9/17/20		(—	@)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts (cont'd):

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
UBS AG	$	171	GBP	136	9/17/20	$	(2	)
UBS AG	$	110	HKD	856	9/17/20		—	@
UBS AG	$	85	JPY	9,136	9/17/20		(—	@)
UBS AG	$	11	MXN	239	9/3/20		(—	@)
UBS AG	$	30	NZD	46	9/3/20		—	@
UBS AG	$	51	SEK	473	9/17/20		(—	@)
UBS AG	$	79	SEK	727	9/3/20		(1	)
UBS AG	ZAR	192	$	11	9/17/20		—	@
						$	12

Futures Contracts:

The Fund had the following futures contracts open at June 30, 2020:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
Euro Stoxx 50 (Germany)		29	Sep-20	EUR	—	@	$	1,050		$	44
Hang Seng China Enterprises Index (Hong Kong)		3	Jul-20	HKD	—	@		469			(4	)
SGX MSCI Singapore (Singapore)		8	Jul-20	SGD	1			170			(2	)
IBEX 35 Index (Spain)		7	Jul-20	EUR	—	@		567			(5	)
S&P 500 E Mini Index (United States)		31	Sep-20	$	2			4,790			103
U.S. Treasury 10 yr. Note (United States)		4	Sep-20		400			557			—	@
S&P TSE 60 Index (Canada)		6	Sep-20	CAD	1			821			25
100 oz Gold Future (United States)		10	Aug-20	$	1			1,800			62
SPI 200 Index (Australia)		4	Sep-20	AUD	—	@		406			8
FTSE MIB Index (Italy)		5	Sep-20	EUR	—	@		542			12
NYMEX WTI Crude Oil Futures (United States)		6	Nov-21	$	6			245			(1	)
CAC 40 Index (France)		1	Jul-20	EUR	—	@		55			1
Short:
TOPIX Index (Japan)		7	Sep-20	JPY	(70	)		(1,010	)		40
U.S. Treasury 10 yr. Note (United States)		1	Sep-20	$	(100	)		(139	)		(—	@)
U.S. Treasury Ultra Long Bond (United States)		8	Sep-20		(800	)		(1,260	)		(6	)
U.S. Treasury Ultra Bond (United States)		5	Sep-20		(500	)		(1,091	)		10
U.S. Treasury 5 yr. Note (United States)		8	Sep-20		(800	)		(1,006	)		(4	)
U.S. Treasury 2 yr. Note (United States)		6	Sep-20		(1,200	)		(1,325	)		(—	@)
NIKKEI 225 Index (Japan)		2	Sep-20	JPY	(1	)		(206	)		4
MSCI Emerging Market E Mini (United States)		21	Sep-20	$	(1	)		(1,035	)		(33	)
German Euro BTP (Germany)		12	Sep-20	EUR	(1,200	)		(1,940	)		(36	)
										$	218

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at June 30, 2020:

Swap Counterparty and Reference Obligation				Credit Rating of Reference Obligation†				Buy/Sell Protection				Pay/ Receive Fixed Rate				Payment Frequency				Maturity Date				Notional Amount (000)				Value (000)				Upfront Payment Paid (000)				Unrealized Depreciation (000)
Morgan Stanley & Co. LLC* CDX.EM.32				NR				Buy					1.00	%		Quarterly				12/20/24				$	325			$	11			$	17			$	(6	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at June 30, 2020:

Swap Counterparty	Floating Rate Index	Pay/ Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)		Upfront Payment Paid (000)		Unrealized Appreciation (000)
JPMorgan Chase Bank NA	3 Month KORIBOR	Pay		1.83	%	Quarterly/ Quarterly	6/14/27	KRW	510,000	$	27	$	—	$	27
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		1.24		Semi-Annual/ Quarterly	3/30/30	$	316		7		—		7
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		1.27		Semi-Annual/ Quarterly	3/30/30		1,261		23		—		23
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		1.3		Semi-Annual/ Quarterly	3/30/30		315		5		—		5
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		1.18		Semi-Annual/ Quarterly	3/31/30		526		14		—		14
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		1.31		Semi-Annual/ Quarterly	4/28/30		190		3		—		3
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		1.37		Semi-Annual/ Quarterly	5/29/30		134		2		—		2
										$	81	$	—	$	81

Total Return Swap Agreements:

The Fund had the following total return swap agreements open at June 30, 2020:

Swap Counterparty	Index	Pay/ Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.15%	Quarterly	9/16/20	$	106	$	(7	)	$	—	$	(7	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.15%	Quarterly	9/16/20		299		(19	)		—		(19	)
BNP Paribas SA	BNP Custom U.S. Banks Index††	Receive	3 Month USD LIBOR plus 0.15%	Quarterly	9/16/20		18		(1	)		—		(1	)
BNP Paribas SA	MSCI Emerging Markets Index	Receive	3 Month USD LIBOR plus 0.28%	Quarterly	1/26/21		6,929		860			—		860
JPMorgan Chase Bank NA	Long EMU Value Index††	Receive	3 Month EUR EURIBOR plus 0.14%	Quarterly	6/16/21	EUR	612		—	@		—		—	@
JPMorgan Chase Bank NA	Long EMU Value Index††	Receive	3 Month EUR EURIBOR plus 0.14%	Quarterly	6/16/21		639		(20	)		—		(20	)
JPMorgan Chase Bank NA	Long SP500 Value Index††	Receive	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21	$	1,667		(60	)		—		(60	)
JPMorgan Chase Bank NA	Long SP500 Value Index††	Receive	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		1,322		(35	)		—		(35	)
JPMorgan Chase Bank NA	Long SP500 Value Index††	Receive	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		1,328		(31	)		—		(31	)
JPMorgan Chase Bank NA	Long U.S. Value (SP1500) Index††	Receive	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		576		—	@		—		—	@
JPMorgan Chase Bank NA	Long U.S. Value (SP1500) Index††	Receive	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		1,107		36			—		36
JPMorgan Chase Bank NA	Long U.S. Value (SP1500) Index††	Receive	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		1,229		49			—		49
JPMorgan Chase Bank NA	MSCI Japan Net Total Return Index	Receive	3 Month USD LIBOR plus 0.15%	Quarterly	2/10/21		3,747		313			—		313
JPMorgan Chase Bank NA	Short EMU Anti Value Index††	Pay	3 Month EUR EURIBOR plus 0.05%	Quarterly	6/16/21	EUR	640		(1	)		—		(1	)
JPMorgan Chase Bank NA	Short EMU Low Vol Index††	Pay	3 Month EUR EURIBOR plus 0.05%	Quarterly	6/16/21		626		(14	)		—		(14	)
JPMorgan Chase Bank NA	Short SP500 Anti Value Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21	$	746		5			—		5

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Total Return Swap Agreements (cont'd):

Swap Counterparty	Index	Pay/ Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	Short SP500 Anti Value Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21	$	745	$	3		$	—	$	3
JPMorgan Chase Bank NA	Short SP500 Anti Value Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		745		7			—		7
JPMorgan Chase Bank NA	Short SP500 Low Vol Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		691		10			—		10
JPMorgan Chase Bank NA	Short SP500 Low Vol Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		689		6			—		6
JPMorgan Chase Bank NA	Short SP500 Low Vol Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		692		7			—		7
JPMorgan Chase Bank NA	Short U.S. Low Vol (SP1500) Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		575		2			—		2
JPMorgan Chase Bank NA	Short U.S. Low Vol (SP1500) Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		1,130		(17	)		—		(17	)
JPMorgan Chase Bank NA	Short U.S. Low Vol (SP1500) Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	5/14/21		1,188		(35	)		—		(35	)
								$	1,058		$	—	$	1,058

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

The following table represents the equity basket holdings underlying the total return swap with BNP Custom U.S. Banks Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
BNP Custom U.S. Banks Index
Bank of America Corp.		308,343	$	7,323		20.76	%
CIT Group, Inc.		3,298		68		0.19
Citigroup, Inc.		79,236		4,049		11.48
Citizens Financial Group		15,687		396		1.12
Comerica, Inc.		5,287		201		0.57
East West Bancorp, Inc.		4,961		180		0.51
Fifth Third Bancorp, Inc.		25,079		484		1.37
First Republic Bank		5,750		609		1.73
Huntington Bancshares, Inc.		35,695		323		0.91
JPMorgan Chase & Co.		110,953		10,436		29.57
KeyCorp		34,389		419		1.19
M & T Bank Corp.		4,440		462		1.31
People's United Financial		13,619		158		0.45
PNC Financial Services Group		15,425		1,623		4.60
Regions Financial Corp.		34,597		385		1.09
Signature Bank		1,907		204		0.58
SVB Financial Group		1,793		386		1.10
Truist Financial Corp.		45,852		1,722		4.88
US Bancorp		51,605		1,900		5.39
Wells Fargo & Co.		146,120		3,741		10.60
Zions Bancorp NA		6,245		212		0.60
Total			$	35,281		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Long EMU Value Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Long EMU Value Index
Acs Actividades Cons Y Serv		7,278	$	183		1.95	%
Aercap Holdings N.V.		5,831		179		1.91
Atlantia SpA		11,800		190		2.01
Atos SE		2,512		214		2.27
Banco Bilbao Vizcaya Argenta		54,264		187		1.98
Banco Santander SA		73,967		181		1.92
Bayer AG-Reg		2,677		198		2.10
Bayerische Motoren Werke AG		3,053		195		2.07
Bayerische Motoren Werke-Pref		3,956		192		2.04
Bnp Paribas		4,813		191		2.03
Bollore		61,065		192		2.04
Bouygues SA		6,208		212		2.25
Capgemini SE		1,850		212		2.25
Carrefour SA		12,437		192		2.04
Casino Guichard Perrachon		5,020		186		1.97
CNP Assurances		15,511		179		1.90
Compagnie De Saint Gobain		5,705		205		2.18
Credit Agricole SA		20,958		198		2.11
EDF Energy		21,316		197		2.09
Eiffage		2,150		197		2.09

Security Description	Shares		Value (000)		Index Weight
Long EMU Value Index (cont'd)
Engie		15,770	$	195		2.07	%
Fresenius Medical Care AG		2,335		200		2.12
Fresenius SE & Co. KGaA		4,073		202		2.14
Heidelbergcement AG		3,705		198		2.10
Hochtief AG		2,214		196		2.08
Ipsen		2,365		201		2.13
Klepierre		9,098		181		1.92
Koninklijke Ahold Delhaize N		7,463		203		2.16
Lanxess AG		3,712		196		2.08
Leonardo SpA		26,961		179		1.90
Metro AG		20,337		192		2.04
Naturgy Energy Group SA		10,495		195		2.07
Nn Group N.V.		5,890		198		2.10
Nokia Oyj		46,102		201		2.13
Omv AG		5,458		182		1.94
Peugeot SA		12,515		204		2.16
Porsche Automobil Holding SE		3,391		195		2.07
Proximus		8,852		180		1.91
Publicis Groupe		5,867		190		2.02
Raiffeisen Bank International		10,151		181		1.92
Repsol SA		19,635		172		1.82
Societe Generale SA		11,393		189		2.01
Solvay SA		2,407		193		2.05
Stora Enso Oyj		16,410		196		2.08
Telefonica SA		37,453		179		1.90
Unibail-Rodamco-Westfield		2,855		161		1.71
Uniper SE		6,335		204		2.17
Volkswagen AG		1,158		186		1.98
Volkswagen AG-Pref		1,256		190		2.02
Total			$	9,419		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Long SP500 Value Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Long SP500 Value Index
AES Corp.		7,427	$	108		1.14	%
Alliance Data Systems Corp.		1,911		86		0.90
Allstate Corp.		527		51		0.54
American International Group		3,047		95		1.00
AmerisourceBergen Corp.		1,024		103		1.08
Anthem, Inc.		379		100		1.05
Archer-Daniels-Midland Co.		2,489		99		1.04
Baker Hughes Co.		6,024		93		0.97
Bank Of New York Mellon Corp.		2,620		101		1.06
Biogen, Inc.		360		96		1.01
BorgWarner, Inc.		3,019		107		1.12
Cardinal Health, Inc.		1,861		97		1.02
Carrier Global Corp.		2,366		53		0.55
CBRE Group Inc — A		2,097		95		0.99

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Long SP500 Value Index (cont'd)
Centene Corp.		1,583	$	101		1.05	%
CenterPoint Energy, Inc.		5,516		103		1.08
CenturyLink, Inc.		9,708		97		1.02
CF Industries Holdings, Inc.		3,293		93		0.97
Cigna Corp.		526		99		1.03
Cisco Systems, Inc.		2,183		102		1.07
Citigroup, Inc.		1,863		95		1.00
Cognizant Tech Solutions — A		1,832		104		1.09
CVS Health Corp.		1,547		101		1.05
Davita, Inc.		1,285		102		1.07
Delta Air Lines, Inc.		3,241		91		0.95
Devon Energy Corp.		7,628		86		0.91
Discovery, Inc. — A		4,557		96		1.01
Discovery, Inc. — C		5,065		98		1.02
Dow, Inc.		2,401		98		1.03
DXC Technology Co.		6,254		103		1.08
Eastman Chemical Co.		1,418		99		1.03
Edison International		1,676		91		0.95
Exelon Corp.		2,629		95		1.00
FedEx Corp.		748		105		1.10
Fifth Third Bancorp, Inc.		4,603		89		0.93
General Dynamics Corp.		650		97		1.02
General Motors Co.		3,652		92		0.97
Hanesbrands, Inc.		8,384		95		0.99
Harley-Davidson, Inc.		3,991		95		0.99
Hartford Financial SVCS Group		2,445		94		0.99
Hewlett Packard Enterprise		9,745		95		0.99
Host Hotels & Resorts, Inc.		7,919		85		0.90
Howmet Aerospace, Inc.		6,661		106		1.11
HP, Inc.		5,881		103		1.07
Huntington Ingalls Industries		547		95		1.00
Intel Corp.		1,680		100		1.05
International Paper Co.		2,841		100		1.05
Interpublic Group Of Cos, Inc.		2,927		50		0.53
Intl Business Machines Corp.		811		98		1.03
Invesco Ltd.		9,107		98		1.03
JM Smucker Co. (The)		939		99		1.04
Johnson Controls International		2,863		98		1.02
Juniper Networks, Inc.		4,163		95		1.00
Kimco Realty Corp.		7,180		92		0.97
Kinder Morgan, Inc.		3,270		50		0.52
Kohls Corp.		4,087		85		0.89
Kraft Heinz Co. (The)		3,100		99		1.04
Kroger Co.		3,119		106		1.11
Lennar Corp. — A		1,587		98		1.02
Lincoln National Corp.		2,389		88		0.92
Lyondellbasell Indu — Class A		1,469		97		1.01
Metlife, Inc.		2,622		96		1.00
Micron Technology, Inc.		1,988		102		1.07
Mohawk Industries, Inc.		1,033		105		1.10
Molson Coors Beverage Co. — B		2,549		88		0.92

Security Description	Shares		Value (000)		Index Weight
Long SP500 Value Index (cont'd)
Mylan N.V.		6,289	$	101		1.06	%
NetApp, Inc.		2,287		101		1.06
Newell Brands, Inc.		6,449		102		1.07
Nielsen Holdings PLC		6,679		99		1.04
NRG Energy, Inc.		3,005		98		1.03
Oneok, Inc.		2,642		88		0.92
Perrigo Co. PLC		1,897		105		1.10
Pfizer, Inc.		1,564		51		0.54
Phillips 66		1,317		95		0.99
PPL Corp.		3,732		96		1.01
Principal Financial Group		2,295		95		1.00
Pultegroup, Inc.		2,777		95		0.99
PVH Corp.		1,930		93		0.97
Quanta Services, Inc.		2,617		103		1.08
Seagate Technology		1,963		95		1.00
Simon Property Group Inc.		1,343		92		0.96
Sl Green Realty Corp.		1,887		93		0.97
Snap-on, Inc.		739		102		1.07
Synchrony Financial		4,032		89		0.94
Tapestry, Inc.		6,768		90		0.94
Te Connectivity Ltd.		1,234		101		1.05
Textron, Inc.		2,900		95		1.00
Tyson Foods, Inc. — Class A		1,564		93		0.98
United Airlines Holdings, Inc.		2,523		87		0.92
United Rentals, Inc.		641		96		1.00
Universal Health Services — B		995		92		0.97
Unum Group		5,777		96		1.00
Viacomcbs, Inc. — Class B		4,194		98		1.03
Vornado Realty Trust		2,450		94		0.98
Wabtec Corp.		1,613		93		0.97
Walgreens Boots Alliance, Inc.		2,407		102		1.07
Wells Fargo & Co.		3,557		91		0.95
Western Digital Corp.		2,281		101		1.06
Western Union Co.		4,613		100		1.05
Westrock Co.		3,507		99		1.04
Xerox Holdings Corp.		5,834		89		0.93
			$	9,543		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Long U.S. Value (SP1500) Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Long U.S. Value (SP1500) Index
AAR Corp.		2,576	$	53		0.54	%
Acuity Brands, Inc.		604		58		0.58
Advansix, Inc.		3,502		41		0.41
Alexion Pharmaceuticals, Inc.		462		52		0.52
Alliance Data Systems Corp.		1,139		51		0.52
American Equity Invt Life Hl		2,326		57		0.58
American International Group		1,698		53		0.53

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Long U.S. Value (SP1500) Index (cont'd)
American Woodmark Corp.		749	$	57		0.57	%
Apogee Enterprises, Inc.		2,474		57		0.57
Arcbest Corp.		2,072		55		0.55
Archer-Daniels-Midland Co.		1,350		54		0.54
Archrock, Inc.		8,821		57		0.58
Atlas Air Worldwide Holdings		1,334		57		0.58
Autonation, Inc.		1,412		53		0.53
AZZ, Inc.		1,599		55		0.55
Baker Hughes Co.		3,517		54		0.54
Bank Of New York Mellon Corp.		1,401		54		0.54
Big Lots, Inc.		1,598		67		0.67
Biogen, Inc.		204		55		0.55
Bonanza Creek Energy, Inc.		3,266		48		0.49
Brinker International, Inc.		2,365		57		0.57
Brixmor Property Group, Inc.		4,198		54		0.54
Brunswick Corp.		858		55		0.55
Cadence Bancorp		5,786		51		0.52
Caleres, Inc.		6,673		56		0.56
Callon Petroleum Co.		38,286		44		0.44
Capri Holdings Ltd.		3,421		53		0.54
Cardinal Health, Inc.		1,003		52		0.53
Cardtronics PLC — A		2,246		54		0.54
Carnival Corp.		3,133		51		0.52
Cato Corp. — Class A		3,174		26		0.26
CenterPoint Energy, Inc.		2,991		56		0.56
Central Garden And Pet Co. — A		1,708		58		0.58
Century Communities, Inc.		1,771		54		0.55
CenturyLink, Inc.		5,319		53		0.54
Chart Industries, Inc.		1,285		62		0.63
Cheesecake Factory, Inc. (The)		2,395		55		0.55
Cigna Corp.		57		11		0.11
Citigroup, Inc.		1,037		53		0.53
Citizens Financial Group		2,123		54		0.54
Cno Financial Group, Inc.		3,524		55		0.55
Commercial Metals Co.		2,623		54		0.54
Computer Programs & Systems		1,214		28		0.28
Comtech Telecommunications		3,223		54		0.55
Conn's Inc		5,952		60		0.60
Consol Energy, Inc.		7,596		39		0.39
Cooper-Standard Holding		2,941		39		0.39
Corecivic, Inc.		5,345		50		0.50
Crane Co.		973		58		0.58
Customers Bancorp, Inc.		3,238		39		0.39
Cvs Health Corp.		840		55		0.55
Dana, Inc.		4,525		55		0.55
Darling Ingredients, Inc.		2,238		55		0.55
Dave & Buster'S Entertainment		3,680		49		0.49
Deluxe Corp.		2,390		56		0.57
Designer Brands, Inc. — Class A		7,927		54		0.54
Diamondrock Hospitality Co.		9,504		53		0.53
Diodes, Inc.		1,079		55		0.55

Security Description	Shares		Value (000)		Index Weight
Long U.S. Value (SP1500) Index (cont'd)
Discovery, Inc. — C		2,715	$	52		0.53	%
Donnelley Financial Solution		2,510		21		0.21
Dxc Technology Co.		3,485		58		0.58
Eastman Chemical Co.		779		54		0.55
Ebay, Inc.		1,098		58		0.58
Ebix, Inc.		2,357		53		0.53
Edgewell Personal Care Co.		1,914		60		0.60
Endo International PLC		15,293		52		0.53
Enova International, Inc.		3,726		55		0.56
Exelon Corp.		1,437		52		0.52
Fifth Third Bancorp, Inc.		2,568		50		0.50
First Financial Bancorp		3,946		55		0.55
First Horizon National Corp.		5,236		52		0.52
First Solar, Inc.		1,084		54		0.54
Fnb Corp.		7,122		53		0.54
Garrett Motion, Inc.		8,798		49		0.49
Genworth Financial, Inc. — Class A		20,763		48		0.48
Geo Group, Inc. (The)		4,429		52		0.53
G-Iii Apparel Group Ltd.		4,059		54		0.54
Gms, Inc.		2,354		58		0.58
Graham Holdings Co. — Class B		166		57		0.57
Greenbrier Companies, Inc.		2,394		54		0.55
Greif, Inc. — Class A		1,623		56		0.56
Group 1 Automotive, Inc.		826		54		0.55
Hartford Financial SVCS Group		1,380		53		0.54
Heidrick & Struggles International		2,133		46		0.46
Herman Miller, Inc.		2,231		53		0.53
Hologic, Inc.		978		56		0.56
Hope Bancorp, Inc.		5,874		54		0.54
Howmet Aerospace, Inc.		3,685		58		0.59
Ichor Holdings Ltd.		2,292		61		0.61
Insight Enterprises, Inc.		1,099		54		0.54
Integer Holdings, Corp.		731		53		0.54
Integra Lifesciences Holding		1,125		53		0.53
Intel Corp.		180		11		0.11
Interface, Inc.		6,568		53		0.54
Intl Business Machines Corp.		446		54		0.54
Invesco Ltd.		4,765		51		0.52
Istar, Inc.		4,214		52		0.52
J2 Global, Inc.		146		9		0.09
Kelly Services, Inc. — A		2,683		42		0.43
Koppers Holdings, Inc.		2,228		42		0.42
Kraton Corp.		3,336		58		0.58
Lannett Co., Inc.		7,227		52		0.53
Lantheus Holdings, Inc.		3,861		55		0.56
Laredo Petroleum, Inc.		3,463		48		0.48
Lyondellbasell Indu — Class A		809		53		0.54
M/I Homes, Inc.		1,611		55		0.56
Macerich Co. (The)		6,066		54		0.55
Marcus Corp.		3,733		50		0.50
Mastec, Inc.		1,189		53		0.54

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Long U.S. Value (SP1500) Index (cont'd)
Matrix Service Co.		2,543	$	25		0.25	%
Mdu Resources Group, Inc.		2,504		56		0.56
Medtronic PLC		116		11		0.11
Meredith Corp.		3,458		50		0.51
Meridian Bioscience, Inc.		2,742		64		0.64
Meritor, Inc.		2,709		54		0.54
Meta Financial Group, Inc.		2,969		54		0.54
Metlife, Inc.		1,462		53		0.54
Micron Technology, Inc.		1,055		54		0.55
Minerals Technologies, Inc.		1,180		55		0.56
Molson Coors Beverage Co. — B		1,422		49		0.49
Moog, Inc. — Class A		1,101		58		0.59
Mts Systems Corp.		3,174		56		0.56
Mylan N.V.		3,280		53		0.53
MYR Group, Inc.		1,126		36		0.36
Natus Medical, Inc.		2,557		56		0.56
Navient Corp.		7,029		49		0.50
Netgear, Inc.		2,120		55		0.55
NRG Energy, Inc.		1,581		51		0.52
Oge Energy Corp.		1,750		53		0.53
Oracle Corp.		196		11		0.11
Oshkosh Corp.		744		53		0.54
Owens & Minor, Inc.		7,603		58		0.58
Pebblebrook Hotel Trust		3,952		54		0.54
Penn Virginia Corp.		4,850		46		0.47
Perspecta, Inc.		2,284		53		0.53
Photronics, Inc.		4,868		54		0.55
Pilgrim'S Pride Corp.		3,019		51		0.51
Plantronics, Inc.		3,949		58		0.58
Pra Health Sciences, Inc.		564		55		0.55
Principal Financial Group		1,309		54		0.55
Progress Software Corp.		1,436		56		0.56
Propetro Holding Corp.		9,797		50		0.51
Quinstreet, Inc.		4,792		50		0.50
Renewable Energy Group, Inc.		1,925		48		0.48
Resideo Technologies, Inc.		4,618		54		0.54
Ring Energy, Inc.		8,456		10		0.10
RPT Realty		7,892		55		0.55
Sabra Health Care REIT, Inc.		3,754		54		0.54
Sanmina Corp.		2,139		54		0.54
Scansource, Inc.		1,593		38		0.39
Schweitzer-Mauduit International, Inc.		1,799		60		0.60
Select Medical Holdings Corp.		3,751		55		0.56
Service Properties Trust		6,591		47		0.47
Signet Jewelers Ltd.		4,521		46		0.47
Simmons First National Corp. — Class A		3,128		54		0.54
Skywest, Inc.		1,652		54		0.54
Sl Green Realty Corp.		1,036		51		0.51
Smart Global Holdings, Inc.		2,070		56		0.57
Spartannash Co.		2,885		61		0.62
Standex International Corp.		713		41		0.41

Security Description	Shares		Value (000)		Index Weight
Long U.S. Value (SP1500) Index (cont'd)
Sterling Bancorp		4,418	$	52		0.52	%
Summit Hotel Properties, Inc.		8,938		53		0.53
Suncoke Energy, Inc.		10,948		32		0.33
Sykes Enterprises, Inc.		2,015		56		0.56
Syneos Health, Inc.		987		58		0.58
Synnex Corp.		519		62		0.63
Synovus Financial Corp.		2,512		52		0.52
Tanger Factory Outlet Center		7,571		54		0.54
Timken Co.		1,220		56		0.56
Toll Brothers, Inc.		1,667		54		0.55
Tri Pointe Group, Inc.		3,834		56		0.57
Tyson Foods, Inc. — Class A		879		52		0.53
UGI Corp.		1,688		54		0.54
United Therapeutics Corp.		91		11		0.11
Universal Health Services — B		562		52		0.52
Unum Group		3,290		55		0.55
Urban Edge Properties		4,989		59		0.60
Vanda Pharmaceuticals, Inc.		4,606		53		0.53
Varex Imaging Corp.		3,552		54		0.54
Vera Bradley, Inc.		3,455		15		0.15
Veritiv Corp.		1,022		17		0.17
Viacomcbs, Inc. — Class B		2,298		54		0.54
Virtus Investment Partners		471		55		0.55
Wabash National Corp.		5,542		59		0.59
Waddell & Reed Financial — A		3,499		54		0.55
Walgreens Boots Alliance, Inc.		1,248		53		0.53
Walker & Dunlop, Inc.		1,087		55		0.56
Warrior Met Coal, Inc.		3,447		53		0.53
Weingarten Realty Investors		2,865		54		0.55
Wells Fargo & Co.		1,974		51		0.51
Werner Enterprises, Inc.		1,275		56		0.56
Westrock Co.		1,972		56		0.56
Whitestone REIT		5,535		40		0.40
Wyndham Destinations, Inc.		1,775		50		0.50
Xerox Holdings Corp.		3,286		50		0.51
Xperi Holding Corp.		3,990		59		0.59
Total			$	9,938		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short EMU Anti Value Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Short EMU Anti Value Index
ADP		1,809	$	186		1.85	%
Adyen N.V.		147		214		2.12
Air Liquide SA		1,441		208		2.07
Airbus SE		2,601		186		1.85
Amundi SA		2,663		209		2.07
Beiersdorf AG		1,818		206		2.05
Cellnex Telecom SA		3,510		214		2.13

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Short EMU Anti Value Index (cont'd)
Davide Campari-Milano SpA		23,984	$	202		2.01	%
Delivery Hero SE		2,098		214		2.13
Deutsche Bank AG-Registered		21,416		204		2.03
Deutsche Boerse AG		1,174		212		2.11
Deutsche Wohnen SE		4,482		201		2.00
Diasorin SpA		1,063		204		2.02
E.On SE		18,400		207		2.06
Elia Group SA		1,912		207		2.06
Ferrari N.V.		1,193		204		2.02
Ferrovial SA		7,083		189		1.88
Finecobank SpA		15,003		202		2.01
Galapagos N.V.		1,015		200		1.99
Gea Group AG		6,440		204		2.03
Getlink SE		13,727		198		1.97
Groupe Bruxelles Lambert SA		2,416		203		2.02
Hannover Rueck SE		1,136		196		1.95
Hermes International		243		203		2.02
Iberdrola SA		18,142		210		2.09
Iliad SA		1,094		213		2.12
Just Eat Takeaway		2,122		221		2.21
Knorr-Bremse AG		1,897		192		1.91
Koninklijke Dsm N.V.		1,510		209		2.08
L'Oreal		667		214		2.13
Muenchener Rueckver AG-Reg		790		205		2.04
Nemetschek SE		2,953		203		2.02
Pernod Ricard SA		1,253		197		1.96
Prosus N.V.		2,313		215		2.14
Sartorius AG-Vorzug		614		202		2.01
Sartorius Stedim Biotech		836		211		2.10
Scout24 AG		2,688		209		2.07
Symrise AG		1,893		220		2.20
Teamviewer AG		4,003		219		2.17
Teleperformance		832		211		2.10
Tenaris SA		28,121		182		1.81
Terna SpA		28,663		197		1.96
Ubisoft Entertainment		2,659		219		2.18
Umicore		4,239		200		1.99
Vonovia SE		3,348		205		2.04
Vopak		3,705		196		1.95
Wendel		2,113		201		2.00
Wolters Kluwer		2,703		211		2.10
Zalando SE		3,092		218		2.17
Total			$	10,053		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short EMU Low Vol Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Short EMU Low Vol Index
Aena Sme SA		1,328	$	177		1.81	%
Ageas		5,080		180		1.83
Air Liquide SA		1,424		205		2.09
Akzo Nobel N.V.		2,296		206		2.10
Allianz SE-Reg		959		196		2.00
Alstom		4,212		196		2.00
Asml Holding N.V.		581		213		2.17
Assicurazioni Generali		12,600		191		1.94
Axa SA		9,262		194		1.97
Cellnex Telecom SA		3,732		227		2.32
Dassault Systemes SA		1,174		203		2.06
Deutsche Boerse AG		1,169		212		2.16
Deutsche Telekom AG-Reg		11,833		199		2.02
Endesa SA		8,056		198		2.02
Essilorluxottica		1,481		190		1.94
Ferrovial SA		6,961		185		1.89
Grifols SA		6,417		195		1.99
Groupe Bruxelles Lambert SA		2,285		192		1.95
Hannover Rueck SE		1,118		193		1.96
Heineken Holding N.V.		2,315		189		1.93
Heineken N.V.		2,094		193		1.97
Hermes International		235		196		2.00
ICADE		2,586		180		1.84
Industria De Diseno Textiles		6,999		185		1.89
Koninklijke Dsm N.V.		1,547		214		2.18
Legrand SA		2,784		211		2.16
L'Oreal		676		217		2.21
Lvmh Moet Hennessy Louis Vui		455		199		2.03
Michelin		1,843		191		1.95
Muenchener Rueckver AG		760		198		2.01
Orange		16,288		195		1.98
Pernod Ricard SA		1,225		193		1.96
Prosus N.V.		2,367		220		2.24
Recordati SpA		4,333		216		2.20
Red Electrica Corporacion SA		10,763		201		2.05
Sanofi		1,987		202		2.06
Sap SE		1,489		208		2.12
Schneider Electric SE		1,889		210		2.14
Snam SpA		40,039		195		1.99
Symrise AG		1,885		219		2.23
Teleperformance		831		211		2.15
Terna SpA		29,065		200		2.04
Total SA		4,768		182		1.85

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Short EMU Low Vol Index (cont'd)
Ucb SA		2,011	$	233		2.38	%
Vinci SA		2,058		190		1.93
Vivendi		7,862		202		2.06
Vonovia SE		3,389		208		2.12
Vopak		3,698		196		1.99
Wolters Kluwer		2,663		208		2.12
Total			$	9,814		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short SP500 Anti Value Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Short SP500 Anti Value Index
Abiomed, Inc.		397	$	96		0.97	%
Adobe, Inc.		241		105		1.05
Advanced Micro Devices		1,818		96		0.96
Air Products & Chemicals, Inc.		416		100		1.01
Alexandria Real Estate Equities		585		95		0.95
Align Technology, Inc.		374		103		1.03
Amazon.Com, Inc.		38		104		1.05
American Tower Corp.		374		97		0.97
American Water Works Co., Inc.		764		98		0.99
Ansys, Inc.		350		102		1.03
Aon PLC — Class A		532		102		1.03
Apache Corp.		6,795		92		0.92
Arthur J Gallagher & Co.		1,035		101		1.01
Autodesk, Inc.		411		98		0.99
Ball Corp.		1,411		98		0.99
Blackrock, Inc.		180		98		0.98
Boeing Co. (The)		501		92		0.92
Booking Holdings, Inc.		59		94		0.95
Brown-Forman Corp. — Class B		1,498		95		0.96
Cadence Design Sys, Inc.		1,076		103		1.04
Cboe Global Markets, Inc.		976		91		0.92
Chipotle Mexican Grill, Inc.		96		101		1.02
Cintas Corp.		362		96		0.97
Clorox Company		474		104		1.05
Cme Group, Inc.		562		91		0.92
Colgate-Palmolive Co.		1,347		99		0.99
Copart, Inc.		1,121		93		0.94
Costco Wholesale Corp.		329		100		1.00
Crown Castle Intl Corp.		584		98		0.98
Dexcom, Inc.		252		102		1.03
Domino'S Pizza, Inc.		264		98		0.98
Ecolab, Inc.		480		96		0.96
Edwards Lifesciences Corp.		1,410		97		0.98
Equifax, Inc.		583		100		1.01
Equinix, Inc.		142		100		1.00
Estee Lauder Companies — Class A		505		95		0.96
Eversource Energy		1,176		98		0.98

Security Description	Shares		Value (000)		Index Weight
Short SP500 Anti Value Index (cont'd)
Fastenal Co.		2,368	$	101		1.02	%
First Republic Bank		891		94		0.95
Firstenergy Corp.		2,444		95		0.95
Fortinet, Inc.		724		99		1.00
Freeport-Mcmoran, Inc.		9,185		106		1.07
Hess Corp.		1,896		98		0.99
Hilton Worldwide Holdings In		1,265		93		0.93
IDEX Corp.		639		101		1.01
Idexx Laboratories, Inc.		317		105		1.05
Illinois Tool Works		584		102		1.03
Illumina, Inc.		279		103		1.04
Incyte Corp.		1,036		108		1.07
Intercontinental Exchange In		1,046		96		0.96
Intuit, Inc.		343		102		1.02
Intuitive Surgical, Inc.		172		98		0.99
Jack Henry & Associates, Inc.		563		104		1.04
Linde PLC		475		101		1.01
Live Nation Entertainment In		2,012		89		0.90
Marathon Petroleum Corp.		2,562		96		0.96
Marketaxess Holdings, Inc.		198		99		1.00
Marriott International — Class A		1,053		90		0.91
Marsh & Mclennan Cos		922		99		1.00
Mastercard, Inc. — A		325		96		0.97
Mccormick & Co-Non Vtg Shrs		572		103		1.03
Mcdonald'S Corp.		520		96		0.96
Mettler-Toledo International		126		102		1.02
Monster Beverage Corp.		1,425		99		0.99
Moody'S Corp.		361		99		1.00
Msci, Inc.		307		102		1.03
Nasdaq, Inc.		835		100		1.00
National Oilwell Varco, Inc.		7,628		93		0.94
Netflix, Inc.		227		103		1.04
Nextera Energy, Inc.		399		96		0.96
Nike, Inc. — Class B		1,000		98		0.99
Nvidia Corp.		273		104		1.04
Old Dominion Freight Line		610		103		1.04
Otis Worldwide Corp.		1,711		97		0.98
Paycom Software, Inc.		317		98		0.99
Paypal Holdings, Inc.		614		107		1.08
Resmed, Inc.		586		112		1.12
Rockwell Automation, Inc.		463		99		0.99
Rollins, Inc.		2,337		99		1.00
Roper Technologies, Inc.		248		96		0.97
S&P Global, Inc.		305		100		1.01
Salesforce.Com, Inc.		549		103		1.03
Sba Communications Corp.		328		98		0.98
Schlumberger Ltd.		5,064		93		0.94
Servicenow, Inc.		248		101		1.01
Sherwin-Williams Co. (The)		172		99		1.00
Starbucks Corp.		1,272		94		0.94
T-Mobile Us, Inc.		962		100		1.01

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Short SP500 Anti Value Index (cont'd)
Transdigm Group, Inc.		213	$	94		0.95	%
UDR, Inc.		2,469		92		0.93
Under Armour, Inc. — Class A		9,557		93		0.94
Under Armour, Inc. — Class C		10,669		94		0.95
Verisign, Inc.		477		99		0.99
Verisk Analytics, Inc.		595		101		1.02
Visa, Inc. — Class A Shares		513		99		1.00
Wec Energy Group, Inc.		1,090		96		0.96
West Pharmaceutical Services		470		107		1.07
Wynn Resorts Ltd.		1,094		81		0.82
Xcel Energy, Inc.		1,553		97		0.98
Yum! Brands, Inc.		1,078		94		0.94
Zoetis, Inc.		727		100		1.00
Total			$	9,944		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short SP500 Low Vol Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Short SP500 Low Vol Index
Abbott Laboratories		1,173	$	107		1.09	%
Accenture PLC — Class A		515		111		1.12
Aflac, Inc.		2,818		102		1.03
Air Products & Chemicals, Inc.		442		107		1.08
Akamai Technologies, Inc.		1,052		113		1.15
Alexandria Real Estate Equities		622		101		1.02
Alphabet, Inc. — Class A		73		103		1.05
Alphabet, Inc. — Class C		73		103		1.05
Ameren Corp.		1,451		102		1.03
American Tower Corp.		398		103		1.04
Aon PLC — Class A		566		109		1.10
Arthur J Gallagher & Co.		1,101		107		1.09
Atmos Energy Corp.		1,029		103		1.04
Automatic Data Processing		694		103		1.05
Autozone, Inc.		92		104		1.06
Ball Corp.		1,500		104		1.06
Berkshire Hathaway, Inc. — Class B		577		103		1.04
Booking Holdings, Inc.		63		100		1.02
C.H. Robinson Worldwide, Inc.		1,348		107		1.08
Cabot Oil & Gas Corp.		5,451		94		0.95
Cerner Corp.		1,516		104		1.05
Chevron Corp.		1,119		100		1.01
Cme Group, Inc.		598		97		0.98
Cms Energy Corp.		1,780		104		1.05
Coca-Cola Co. (The)		2,251		101		1.02
Colgate-Palmolive Co.		1,432		105		1.06
Comcast Corp. — Class A		2,648		103		1.05
Crown Castle Intl Corp.		621		104		1.05
Danaher Corp.		602		106		1.08
Dollar General Corp.		551		105		1.06

Security Description	Shares		Value (000)		Index Weight
Short SP500 Low Vol Index (cont'd)
Duke Realty Corp.		2,852	$	101		1.02	%
Ecolab, Inc.		510		102		1.03
Eli Lilly & Co.		643		106		1.07
Eversource Energy		1,250		104		1.06
Expeditors Intl Wash, Inc.		1,423		108		1.10
Extra Space Storage, Inc.		1,078		100		1.01
Exxon Mobil Corp		2,184		98		0.99
Fidelity National Info Serv		749		100		1.02
Fiserv, Inc.		1,019		99		1.01
Garmin Ltd.		1,107		108		1.09
Hershey Co. (The)		794		103		1.04
Hilton Worldwide Holdings In		1,345		99		1.00
Home Depot, Inc.		421		105		1.07
Honeywell International, Inc.		706		102		1.03
IDEX Corp.		679		107		1.09
IHS Markit Ltd.		1,457		110		1.11
Illinois Tool Works		621		109		1.10
Intercontinental Exchange In		1,112		102		1.03
Intuit, Inc.		365		108		1.10
Jack Henry & Associates, Inc.		598		110		1.12
Johnson & Johnson		729		102		1.04
Kimberly-Clark Corp.		748		106		1.07
Leidos Holdings, Inc.		1,050		98		1.00
Linde PLC		505		107		1.09
Marsh & Mclennan Cos		980		105		1.07
Mastercard, Inc. — A		346		102		1.04
Mcdonald'S Corp.		553		102		1.03
Medtronic PLC		1,102		101		1.02
Merck & Co., Inc.		1,368		106		1.07
Microsoft Corp.		544		111		1.12
Mondelez International, Inc. — A		2,002		102		1.04
Nasdaq, Inc.		888		106		1.08
Nextera Energy, Inc.		424		102		1.03
Nike, Inc. — Class B		1,063		104		1.06
Northrop Grumman Corp.		324		100		1.01
Omnicom Group		1,868		102		1.03
Oracle Corp.		1,928		107		1.08
Packaging Corp Of America		1,043		104		1.06
Paychex, Inc.		1,377		104		1.06
Pepsico, Inc.		799		106		1.07
Procter & Gamble Co. (The)		891		107		1.08
Progressive Corp.		1,309		105		1.06
Public Storage		529		102		1.03
Republic Services, Inc.		1,272		104		1.06
Resmed, Inc.		623		120		1.22
Rollins, Inc.		2,484		105		1.07
Roper Technologies, Inc.		264		103		1.04
Ross Stores, Inc.		1,078		92		0.93
S&P Global, Inc.		324		107		1.08
Sherwin-Williams Co. (The)		183		106		1.07
Starbucks Corp.		1,352		100		1.01

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Short SP500 Low Vol Index (cont'd)
Steris PLC		680	$	104		1.06	%
Stryker Corp		550		99		1.00
Tjx Companies, Inc.		1,895		96		0.97
T-Mobile US, Inc.		1,023		107		1.08
Trane Technologies PLC		1,148		102		1.04
Verisign, Inc.		508		105		1.06
Verisk Analytics, Inc.		633		108		1.09
Visa, Inc. — Class A Shares		546		105		1.07
Walt Disney Co. (The)		889		99		1.00
Waste Management, Inc.		996		105		1.07
Wec Energy Group, Inc.		1,159		102		1.03
Williams Cos, Inc.		5,437		103		1.05
Wr Berkley Corp		1,798		103		1.04
Zoetis, Inc.		773		106		1.07
Total			$	9,868		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short U.S. Low Vol (SP1500) Index as of June 30, 2020:

Security Description	Shares		Value (000)		Index Weight
Short U.S. Low Vol (SP1500) Index
Abbott Laboratories		582	$	53		0.53	%
Adobe, Inc.		120		52		0.52
Agilent Technologies, Inc.		594		53		0.53
Air Products & Chemicals, Inc.		222		54		0.54
Akamai Technologies, Inc.		518		55		0.55
Alexandria Real Estate Equities		312		51		0.51
Allstate Corp.		541		53		0.53
Ameren Corp.		745		52		0.52
American Express Co.		529		50		0.50
American Tower Corp.		199		51		0.51
Amerisafe, Inc.		879		54		0.54
Amerisourcebergen Corp.		517		52		0.52
Ametek, Inc.		589		53		0.53
Amgen, Inc.		225		53		0.53
Amphenol Corp. — Class A		539		52		0.52
Analog Devices, Inc.		436		54		0.54
Aptargroup, Inc.		489		55		0.55
Arthur J Gallagher & Co.		544		53		0.53
AT&T, Inc.		1,747		53		0.53
Atmos Energy Corp.		525		52		0.52
Autozone, Inc.		46		52		0.52
Badger Meter, Inc.		842		53		0.53
Baxter International, Inc.		626		54		0.54
Becton Dickinson And Co.		224		54		0.54
Booking Holdings, Inc.		32		51		0.51
Brady Corp. — Class A		1,105		52		0.52
Broadcom, Inc.		168		53		0.53
Brown & Brown, Inc.		1,270		52		0.52
C.H. Robinson Worldwide, Inc.		683		54		0.54

Security Description	Shares		Value (000)		Index Weight
Short U.S. Low Vol (SP1500) Index (cont'd)
Cable One, Inc.		29	$	52		0.52	%
Cabot Oil & Gas Corp.		2,911		50		0.50
Carrier Global Corp.		2,313		51		0.51
CDW Corp.		453		53		0.53
Cerner Corp.		739		51		0.51
Chemed Corp.		116		52		0.52
Chevron Corp.		574		51		0.51
Cisco Systems, Inc.		1,165		54		0.54
City Holding Co.		840		55		0.55
Cme Group, Inc.		300		49		0.49
Cms Energy Corp.		895		52		0.52
Columbia Sportswear Co.		662		53		0.53
Comcast Corp. — Class A		1,368		53		0.53
Commerce Bancshares, Inc.		864		51		0.51
Community Bank System, Inc.		937		53		0.53
Conocophillips		1,207		51		0.51
Corning, Inc.		1,982		51		0.51
Costco Wholesale Corp.		175		53		0.53
Crown Castle Intl Corp.		316		53		0.53
Cvb Financial Corp.		2,826		53		0.53
Danaher Corp.		301		53		0.53
Deckers Outdoor Corp.		262		51		0.51
Digital Realty Trust, Inc.		370		53		0.53
Dollar General Corp.		274		52		0.52
Domino'S Pizza, Inc.		137		51		0.51
Dorman Products, Inc.		771		52		0.52
Dril-Quip, Inc.		1,732		52		0.52
Dsp Group, Inc.		3,300		52		0.52
Duke Realty Corp.		1,484		53		0.53
Dunkin' Brands Group, Inc.		819		53		0.53
Easterly Government Properties		2,231		52		0.52
Eastgroup Properties, Inc.		439		52		0.52
Eaton Corp. PLC		604		53		0.53
Ecolab, Inc.		261		52		0.52
Emcor Group, Inc.		827		55		0.55
Equinix, Inc.		75		53		0.53
Estee Lauder Co. — Class A		274		52		0.52
Ethan Allen Interiors, Inc.		4,372		52		0.52
Eversource Energy		625		52		0.52
Extra Space Storage, Inc.		567		52		0.52
Exxon Mobil Corp.		1,133		51		0.51
Factset Research Systems, Inc.		170		56		0.56
Fidelity National Info Serv		379		51		0.51
First Finl Bankshares, Inc.		1,728		50		0.50
Firstcash, Inc.		791		53		0.53
Fiserv, Inc.		519		51		0.51
Flowers Foods, Inc.		2,347		52		0.53
Fmc Corp.		524		52		0.52
Fulton Financial Corp.		4,929		52		0.52
Garmin Ltd.		539		53		0.53
Gatx Corp.		856		52		0.52

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Short U.S. Low Vol (SP1500) Index (cont'd)
Gentex Corp.		1,969	$	51		0.51	%
Gilead Sciences, Inc.		695		53		0.54
Glacier BanCorp., Inc.		1,477		52		0.52
Graco, Inc.		1,096		53		0.53
Hasbro, Inc.		719		54		0.54
Hawaiian Electric Industries		1,454		52		0.52
Heartland Express, Inc.		2,581		54		0.54
Helen Of Troy Ltd.		293		55		0.55
Henry Schein, Inc.		884		52		0.52
Heritage Financial Corp.		2,724		54		0.55
Hershey Co. (The)		403		52		0.52
Hilton Worldwide Holdings In		691		51		0.51
Home Depot, Inc.		211		53		0.53
Hp, Inc.		3,107		54		0.54
IDEX Corp.		343		54		0.54
IHS Markit Ltd		718		54		0.54
Illinois Tool Works		306		54		0.54
Intercontinental Exchange In		558		51		0.51
Intuit, Inc.		179		53		0.53
Jack Henry & Associates, Inc.		287		53		0.53
Jacobs Engineering Group, Inc.		614		52		0.52
Johnson & Johnson		367		52		0.52
Juniper Networks, Inc.		2,273		52		0.52
Kinder Morgan, Inc.		3,369		51		0.51
Kkr Real Estate Finance Trust		3,004		50		0.50
L3Harris Technologies, Inc.		286		48		0.48
Lennox International, Inc.		235		55		0.55
Life Storage, Inc.		554		53		0.53
LIncoln Electric Holdings		636		54		0.54
Linde PLC		250		53		0.53
Lindsay Corp.		594		55		0.55
Lowe'S Cos, Inc.		390		53		0.53
Marsh & Mclennan Cos		498		53		0.54
Maxim Integrated Products		868		53		0.53
Maximus, Inc.		768		54		0.54
Mcdonald's Corp.		281		52		0.52
Merck & Co., Inc.		685		53		0.53
Microsoft Corp.		262		53		0.53
Mid-America Apartment Communities		461		53		0.53
Mondelez International, Inc. — A		1,005		51		0.51
N B T BanCorp., Inc.		1,736		53		0.53
Nasdaq, Inc.		439		52		0.53
National Instruments Corp.		1,336		52		0.52
National Oilwell Varco, Inc.		4,453		55		0.55
National Storage Affiliates		1,832		53		0.53
Neenah, Inc.		1,060		52		0.52
Netscout Systems, Inc.		2,117		54		0.54
Newmarket Corp.		127		51		0.51
Newmont Corp.		903		56		0.56
Nextera Energy, Inc.		213		51		0.51
Nike, Inc. — Class B		529		52		0.52

Security Description	Shares		Value (000)		Index Weight
Short U.S. Low Vol (SP1500) Index (cont'd)
Northfield BanCorp., Inc.		2,794	$	32		0.32	%
Northrop Grumman Corp.		167		51		0.51
Northwest Bancshares, Inc.		5,189		53		0.53
Nucor Corp.		1,243		51		0.52
NVR, Inc.		16		52		0.52
Old National BanCorp.		3,798		52		0.52
Omnicom Group		997		54		0.54
O'Reilly Automotive, Inc.		122		51		0.52
Paccar, Inc.		704		53		0.53
Pepsico, Inc.		401		53		0.53
Power Integrations, Inc.		440		52		0.52
Procter & Gamble Co. (The)		447		53		0.53
Progressive Corp.		651		52		0.52
Prologis, Inc.		568		53		0.53
Ps Business Parks, Inc.		397		53		0.53
Public Storage		276		53		0.53
Reliance Steel & Aluminum		546		52		0.52
Republic Services, Inc.		647		53		0.53
Resmed, Inc.		294		56		0.56
Rex American Resources Corp.		576		40		0.40
Rollins, Inc.		1,255		53		0.53
Ross Stores, Inc.		580		49		0.49
S&P Global, Inc.		161		53		0.53
Safety Insurance Group, Inc.		699		53		0.53
Seacor Holdings, Inc.		1,498		42		0.42
Service Corp. International		1,323		51		0.52
Sherwin-Williams Co. (The)		90		52		0.52
Sonoco Products Co.		1,026		54		0.54
Southside Bancshares, Inc.		1,912		53		0.53
Southwest Airlines Co.		1,531		52		0.52
Standard Motor Prods		1,298		53		0.54
Starbucks Corp.		698		51		0.51
Steris PLC		343		53		0.53
Stryker Corp.		284		51		0.51
Te Connectivity Ltd.		650		53		0.53
Teledyne Technologies, Inc.		162		50		0.50
Texas Instruments, Inc.		420		53		0.53
Thermo Fisher Scientific, Inc.		149		54		0.54
Tiffany & Co.		431		53		0.53
TJX Companies, Inc.		996		50		0.50
Tompkins Financial Corp.		841		54		0.55
Tootsie Roll Inds		1,520		52		0.52
Toro Co.		794		53		0.53
Tractor Supply Company		404		53		0.53
Trane Technologies PLC		583		52		0.52
Tyler Technologies, Inc.		155		54		0.54
UDR, Inc.		1,393		52		0.52
Union Pacific Corp.		313		53		0.53
Unitedhealth Group, Inc.		180		53		0.53
Verisk Analytics, Inc.		314		54		0.54
Vertex Pharmaceuticals, Inc.		179		52		0.52

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
Short U.S. Low Vol (SP1500) Index (cont'd)
Visa, Inc. — Class A Shares		270	$	52		0.52	%
Walmart, Inc.		432		52		0.52
Waste Management, Inc.		507		54		0.54
Watsco, Inc.		299		53		0.53
Watts Water Technologies — A		648		52		0.53
Westamerica BanCorp.		962		55		0.55
Williams Cos, Inc.		2,692		51		0.51
Yum! Brands, Inc.		599		52		0.52
Zoetis, Inc.		384		53		0.53
Total			$	9,989		100.00	%

@ Value is less than $500.

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

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

NR Not rated.

BTP Buoni del Tesoro Poliennali.

CAC Cotation Assistée en Continu.

CPI Consumer Price Index.

EURIBOR Euro Interbank Offered Rate.

IBEX Índice Bursátil Español.

KORIBOR Korea Interbank Offered Rate.

LIBOR London Interbank Offered Rate.

MIB Milano Indice di Borsa.

NYMEX New York Mercantile Exchange.

SGX Singapore Exchange Ltd.

TOPIX Tokyo Stock Price Index.

TSE Toronto Stock Exchange.

WTI West Texas Intermediate.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

CHF — Swiss Franc

CLP — Chilean Peso

CNH — Chinese Yuan Renminbi Offshore

CNY — Chinese Yuan Renminbi

COP — Colombian Peso

CZK — Czech Koruna

DKK — Danish Krone

EUR — Euro

GBP — British Pound

HKD — Hong Kong Dollar

HUF — Hungarian Forint

IDR — Indonesian Rupiah

ILS — Israeli Shekel

INR — Indian Rupee

JPY — Japanese Yen

KRW — South Korean Won

MXN — Mexican Peso

MYR — Malaysian Ringgit

NOK — Norwegian Krone

NZD — New Zealand Dollar

PEN — Peruvian Nuevo Sol

PLN — Polish Zloty

RUB — Russian Ruble

SEK — Swedish Krona

SGD — Singapore Dollar

THB — Thai Baht

TRY — Turkish Lira

TWD — Taiwan Dollar

USD — United States Dollar

ZAR — South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Fixed Income Securities		40.1	%
Common Stocks		37.0
Short-Term Investments		19.1
Other**		3.8
Total Investments		100.0	%***

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

*** Does not include open long/short futures contracts with a value of approximately $20,484,000 and net unrealized appreciation of approximately $218,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $12,000. Also does not include open swap agreements with net unrealized appreciation of approximately $1,133,000.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $71,161)	$	77,510
Investment in Security of Affiliated Issuer, at Value (Cost $16,393)		16,393
Total Investments in Securities, at Value (Cost $87,554)		93,903
Foreign Currency, at Value (Cost $408)		409
Cash		4
Receivable for Variation Margin on Futures Contracts		1,685
Unrealized Appreciation on Swap Agreements		1,325
Receivable for Investments Sold		954
Interest Receivable		231
Tax Reclaim Receivable		60
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		54
Receivable for Fund Shares Sold		49
Dividends Receivable		42
Due from Adviser		3
Receivable for Variation Margin on Swap Agreements		3
Receivable from Affiliate		1
Other Assets		18
Total Assets		98,741
Liabilities:
Payable for Investments Purchased		3,561
Due to Broker		1,341
Unrealized Depreciation on Swap Agreements		240
Payable for Professional Fees		52
Payable for Fund Shares Redeemed		51
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		42
Payable for Servicing Fees		35
Payable for Custodian Fees		26
Payable for Administration Fees		6
Payable for Transfer Agency Fees		2
Payable for Distribution Fees — Class II Shares		1
Other Liabilities		46
Total Liabilities		5,403
NET ASSETS	$	93,338
Net Assets Consist of:
Paid-in-Capital	$	81,522
Total Distributable Earnings		11,816
Net Assets	$	93,338
CLASS I:
Net Assets	$	78,853
Net Asset Value, Offering and Redemption Price Per Share Applicable to 7,701,339 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	10.24
CLASS II:
Net Assets	$	14,485
Net Asset Value, Offering and Redemption Price Per Share Applicable to 1,423,265 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	10.18

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $2 of Foreign Taxes Withheld)	$	460
Dividends from Securities of Unaffiliated Issuers (Net of $19 of Foreign Taxes Withheld)		442
Dividends from Security of Affiliated Issuer (Note H)		29
Total Investment Income		931
Expenses:
Advisory Fees (Note B)		352
Custodian Fees (Note G)		110
Professional Fees		93
Servicing Fees (Note D)		72
Pricing Fees		49
Administration Fees (Note C)		38
Distribution Fees — Class II Shares (Note E)		18
Shareholder Reporting Fees		15
Transfer Agency Fees (Note F)		5
Directors' Fees and Expenses		3
Other Expenses		9
Total Expenses		764
Waiver of Advisory Fees (Note B)		(323	)
Waiver of Distribution Fees — Class II Shares (Note E)		(11	)
Rebate from Morgan Stanley Affiliate (Note H)		(8	)
Net Expenses		422
Net Investment Income		509
Realized Gain (Loss):
Investments Sold (Net of $1 of Capital Gain Country Tax)		2,178
Foreign Currency Forward Exchange Contracts		(413	)
Foreign Currency Translation		44
Futures Contracts		(1,050	)
Swap Agreements		(3,211	)
Net Realized Loss		(2,452	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $1)		(5,303	)
Foreign Currency Forward Exchange Contracts		(39	)
Foreign Currency Translation		(4	)
Futures Contracts		131
Swap Agreements		331
Net Change in Unrealized Appreciation (Depreciation)		(4,884	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(7,336	)
Net Decrease in Net Assets Resulting from Operations	$	(6,827	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Global Strategist Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	509		$	1,638
Net Realized Gain (Loss)		(2,452	)		5,537
Net Change in Unrealized Appreciation (Depreciation)		(4,884	)		10,258
Net Increase (Decrease) in Net Assets Resulting from Operations		(6,827	)		17,433
Dividends and Distributions to Shareholders:
Class I		—			(5,415	)
Class II		—			(1,033	)
Total Dividends and Distributions to Shareholders		—			(6,448	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,708			2,208
Distributions Reinvested		—			5,415
Redeemed		(6,672	)		(14,962	)
Class II:
Subscribed		326			319
Distributions Reinvested		—			1,033
Redeemed		(1,361	)		(3,415	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(5,999	)		(9,402	)
Total Increase (Decrease) in Net Assets		(12,826	)		1,583
Net Assets:
Beginning of Period		106,164			104,581
End of Period	$	93,338		$	106,164
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		166			211
Shares Issued on Distributions Reinvested		—			521
Shares Redeemed		(674	)		(1,427	)
Net Decrease in Class I Shares Outstanding		(508	)		(695	)
Class II:
Shares Subscribed		33			31
Shares Issued on Distributions Reinvested		—			100
Shares Redeemed		(139	)		(328	)
Net Decrease in Class II Shares Outstanding		(106	)		(197	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Consolidated Financial Highlights

Global Strategist Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015⁽²⁾
Net Asset Value, Beginning of Period	$	10.91		$	9.85		$	11.17		$	9.87		$	9.39		$	10.28
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.05			0.16			0.16			0.20			0.15			0.17
Net Realized and Unrealized Gain (Loss)		(0.72	)		1.56			(0.86	)		1.38			0.37			(0.81	)
Total from Investment Operations		(0.67	)		1.72			(0.70	)		1.58			0.52			(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.20	)		(0.13	)		(0.12	)		—			(0.17	)
Net Realized Gain		—			(0.46	)		(0.49	)		(0.16	)		(0.04	)		(0.08	)
Total Distributions		—			(0.66	)		(0.62	)		(0.28	)		(0.04	)		(0.25	)
Net Asset Value, End of Period	$	10.24		$	10.91		$	9.85		$	11.17		$	9.87		$	9.39
Total Return⁽⁴⁾		(6.14	)%⁽⁷⁾		17.77	%		(6.50	)%		16.11	%		5.58	%		(6.39	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	78,853		$	89,575		$	87,675		$	107,015		$	104,197		$	119,248
Ratio of Expenses Before Expense Limitation		1.59	%⁽⁸⁾		1.49	%		1.44	%		1.42	%		1.43	%		1.47	%
Ratio of Expenses After Expense Limitation		0.88	%⁽⁵⁾⁽⁸⁾		0.88	%⁽⁵⁾		0.89	%⁽⁵⁾		0.88	%⁽⁵⁾		0.88	%⁽⁵⁾		0.69	%⁽⁵⁾⁽⁶⁾
Ratio of Net Investment Income		1.10	%⁽⁵⁾⁽⁸⁾		1.55	%⁽⁵⁾		1.48	%⁽⁵⁾		1.85	%⁽⁵⁾		1.54	%⁽⁵⁾		1.73	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%⁽⁸⁾		0.02	%		0.01	%		0.02	%		0.02	%		0.03	%
Portfolio Turnover Rate		55	%⁽⁷⁾		124	%		85	%		99	%		105	%		146	%

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

(2) Not consolidated.

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

(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 August 1, 2015, 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 August 1, 2015, the maximum ratio was 0.60% for Class I shares.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Consolidated Financial Highlights

Global Strategist Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015⁽²⁾
Net Asset Value, Beginning of Period	$	10.85		$	9.79		$	11.11		$	9.82		$	9.35		$	10.24
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.05			0.15			0.15			0.18			0.14			0.16
Net Realized and Unrealized Gain (Loss)		(0.72	)		1.56			(0.86	)		1.38			0.37			(0.82	)
Total from Investment Operations		(0.67	)		1.71			(0.71	)		1.56			0.51			(0.66	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.19	)		(0.12	)		(0.11	)		—			(0.15	)
Net Realized Gain		—			(0.46	)		(0.49	)		(0.16	)		(0.04	)		(0.08	)
Total Distributions		—			(0.65	)		(0.61	)		(0.27	)		(0.04	)		(0.23	)
Net Asset Value, End of Period	$	10.18		$	10.85		$	9.79		$	11.11		$	9.82		$	9.35
Total Return⁽⁴⁾		(6.18	)%⁽⁷⁾		17.74	%		(6.65	)%		15.96	%		5.49	%		(6.53	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14,485		$	16,589		$	16,906		$	21,700		$	21,861		$	24,481
Ratio of Expenses Before Expense Limitation		1.84	%⁽⁸⁾		1.74	%		1.69	%		1.67	%		1.68	%		1.76	%
Ratio of Expenses After Expense Limitation		0.98	%⁽⁵⁾⁽⁸⁾		0.98	%⁽⁵⁾		0.99	%⁽⁵⁾		0.98	%⁽⁵⁾		0.98	%⁽⁵⁾		0.79	%⁽⁵⁾⁽⁶⁾
Ratio of Net Investment Income		1.00	%⁽⁵⁾⁽⁸⁾		1.45	%⁽⁵⁾		1.38	%⁽⁵⁾		1.75	%⁽⁵⁾		1.44	%⁽⁵⁾		1.63	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.02	%⁽⁸⁾		0.02	%		0.01	%		0.02	%		0.02	%		0.03	%
Portfolio Turnover Rate		55	%⁽⁷⁾		124	%		85	%		99	%		105	%		146	%

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

(2) Not consolidated.

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

(6) Effective August 1, 2015, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class II shares. Prior to August 1, 2015, the maximum ratio was 0.70% for Class II shares.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Global Strategist Portfolio. The Fund seeks total return and offers two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

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.

In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13, Fair Value Measurement (Topic 820) — Disclosures Framework — Changes to Disclosure Requirements of Fair Value Measurement ("ASU 2018-13") which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The impact of the Fund's adoption was limited to changes in the Fund's consolidated financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy and disclosure of the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, when applicable.

The Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, VIF Global Strategist Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest, directly or indirectly through the use of derivatives, in securities, commodities, commodity-related instruments and other in-

vestments, primarily futures, swaps and notes. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2020, the Subsidiary represented approximately $5,530,000 or approximately 5.92% 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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

uity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) OTC swaps may be valued by an outside pricing service approved by the Directors or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (6) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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 oc-

cur 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgage	$	—	$	30	$	—	$	30
Agency Fixed Rate Mortgages		—		2,416		—		2,416
Asset-Backed Securities		—		560		—		560
Commercial Mortgage - Backed Securities		—		709		—		709
Corporate Bonds		—		13,562		—		13,562
Mortgages - Other		—		930		—		930
Sovereign		—		17,133		—		17,133
U.S. Treasury Securities		—		2,344		—		2,344
Total Fixed Income Securities		—		37,684		—		37,684
Common Stocks
Aerospace & Defense		260		84		—		344
Air Freight & Logistics		214		63		—		277
Airlines		—		6		—		6
Auto Components		10		31		—		41
Automobiles		20		93		—		113
Banks		876		647		—		1,523
Beverages		171		206		—		377

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Biotechnology	$	470	$	95	$	—		$	565
Building Products		261		89		—			350
Capital Markets		667		228		—			895
Chemicals		189		262		—			451
Commercial Banks		—		1		—			1
Commercial Services & Supplies		145		20		—			165
Communications Equipment		213		51		—			264
Construction & Engineering		2		78		—			80
Construction Materials		275		41		—			316
Consumer Finance		273		1		—			274
Containers & Packaging		33		16		—			49
Diversified Financial Services		127		84		—			211
Diversified Telecommunication Services		529		127		—			656
Electric Utilities		324		141		—			465
Electrical Equipment		58		176		—			234
Electronic Equipment, Instruments & Components		69		19		—			88
Energy Equipment & Services		101		5		—	†		106	†
Entertainment		128		27		—			155
Equity Real Estate Investment Trusts (REITs)		476		75		—			551
Food & Staples Retailing		465		125		—			590
Food Products		120		447		—			567
Gas Utilities		10		14		—			24
Health Care Equipment & Supplies		795		125		—			920
Health Care Providers & Services		924		34		—			958
Health Care Technology		30		—		—			30
Hotels, Restaurants & Leisure		1,347		392		—			1,739
Household Durables		2,869		44		—			2,913
Household Products		424		126		—			550
Independent Power & Renewable Electricity Producers		4		10		—			14
Industrial Conglomerates		333		74		—			407
Information Technology Services		1,333		32		—			1,365
Insurance		197		426		—			623
Interactive Media & Services		1,519		8		—	†		1,527	†

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Internet & Direct Marketing Retail	$	1,306		$	—	$	—		$	1,306
Life Sciences Tools & Services		131			89		—			220
Machinery		201			225		—			426
Marine		—			31		—			31
Media		335			34		—			369
Metals & Mining		743			392		—			1,135
Multi-Line Retail		88			44		—			132
Multi-Utilities		189			102		—			291
Oil, Gas & Consumable Fuels		522			379		—			901
Paper & Forest Products		24			26		—			50
Personal Products		54			218		—			272
Pharmaceuticals		866			1,179		—			2,045
Professional Services		73			129		—			202
Real Estate Management & Development		4			1,011		—			1,015
Road & Rail		351			3		—			354
Semiconductors & Semiconductor Equipment		503			131		—			634
Software		1,392			93		—			1,485
Specialty Retail		652			50		—			702
Tech Hardware, Storage & Peripherals		1,321			—		—			1,321
Textiles, Apparel & Luxury Goods		247			215		—			462
Thrifts & Mortgage Finance		27			—		—			27
Tobacco		123			147		—			270
Trading Companies & Distributors		58			59		—			117
Transportation Infrastructure		—			40		—			40
Water Utilities		—			20		—			20
Wireless Telecommunication Services		15			56		—			71
Total Common Stocks		25,486			9,196		—	†		34,682	†
Rights		3			—		—			3
Warrant		—	@		—		—			—	@
Investment Company		3,581			—		—			3,581
Short-Term Investments
Investment Company		16,393			—		—			16,393
U.S. Treasury Security		—			1,560		—			1,560
Total Short-Term Investments		16,393			1,560		—			17,953

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Foreign Currency Forward Exchange Contracts	$	—		$	54		$	—		$	54
Futures Contracts		309			—			—			309
Interest Rate Swap Agreements		—			81			—			81
Total Return Swap Agreements		—			1,298			—			1,298
Total Assets		45,772			49,873			—	†		95,645	†
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(42	)		—			(42	)
Futures Contracts		(91	)		—			—			(91	)
Credit Default Swap Agreement		—			(6	)		—			(6	)
Total Return Swap Agreements		—			(240	)		—			(240	)
Total Liabilities		(91	)		(288	)		—			(379	)
Total	$	45,681		$	49,585		$	—	†	$	95,266	†

@ Value is less than $500.

† Includes one or more securities valued at zero.

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

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

	Common Stocks (000)
Beginning Balance	$	—	†
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	—	†
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2020	$	—

† Includes one or more securities valued at zero.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

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.

eign securities markets and the possibility of political or economic instability.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission ("SEC") rules and regulations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser and/or Sub-Adviser seek to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

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

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

otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized gain or loss. The Fund records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 June 30, 2020:

Asset Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary
Risk
Exposure

Value
(000)

Foreign Currency
Forward
Exchange
Contracts

Unrealized Appreciation
on Foreign Currency
Forward Exchange
Contracts

Currency
Risk

Futures Contracts

Variation Margin on
Futures Contracts

Commodity
Risk

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

237

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Interest
Rate Risk

(a)

Swap Agreements

Variation Margin on
Swap Agreements

Interest
Rate Risk

(a)

Swap Agreements

Unrealized Appreciation
on Swap Agreements

Equity Risk

1,298

Swap Agreement

Unrealized Appreciation
on Swap Agreement

Interest
Rate Risk

Total

1,742

Liability Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary
Risk
Exposure

Value
(000)

Foreign Currency
Forward
Exchange
Contracts

Unrealized Depreciation
on Foreign Currency
Forward Exchange
Contracts

Currency
Risk

(42

)

Futures Contracts

Variation Margin on
Futures Contracts

Commodity
Risk

)(a)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

(44

)(a)

Futures Contracts

Variation Margin on
Futures Contracts

Interest
Rate Risk

(46

)(a)

Swap Agreement

Variation Margin on
Swap Agreement

Credit Risk

)(a)

Swap Agreements

Unrealized Depreciation
on Swap Agreements

Equity Risk

(240

)

Total

(379

)

(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.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(413	)
Commodity Risk	Futures Contracts		290
Equity Risk	Futures Contracts		(947	)
Interest Rate Risk	Futures Contracts		(393	)
Credit Risk	Swap Agreements		15
Equity Risk	Swap Agreements		(3,083	)
Interest Rate Risk	Swap Agreements		(143	)
Total		$	(4,674	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(39	)
Commodity Risk	Futures Contracts		(11	)
Equity Risk	Futures Contracts		211
Interest Rate Risk	Futures Contracts		(69	)
Equity Risk	Swap Agreements		312
Credit Risk	Swap Agreements		1
Interest Rate Risk	Swap Agreements		18
Total		$	423

At June 30, 2020, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	54	$	(42	)
Swap Agreements		1,325		(240	)
Total	$	1,379	$	(282	)

(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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2020:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	8		$	(2	)	$	—		$	6
Bank of Montreal		1			—			—			1
Barclays Bank PLC		2			(—	@)		—			2
BNP Paribas SA		866			(33	)		(833	)		0
Citibank NA		2			(2	)		—			0
Credit Suisse International		—	@		—			—			—	@
Goldman Sachs International		8			(—	@)		—			8
JPMorgan Chase Bank NA		485			(216	)		(269	)		0
State Street Bank and Trust Co.		—	@		—			—			—	@
UBS AG		7			(3	)		—			4
Total	$	1,379		$	(256	)	$	(1,102	)	$	21

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	2		$	(2	)	$	—	$	0
Barclays Bank PLC		—	@		(—	@)		—		0
BNP Paribas SA		57			(33	)		—		24
Citibank NA		4			(2	)		—		2
Commonwealth Bank of Australia		—	@		—			—		—	@
Goldman Sachs International		—	@		(—	@)		—		0
JPMorgan Chase Bank NA		216			(216	)		—		0
UBS AG		3			(3	)		—		0
Total	$	282		$	(256	)	$	—	$	26

@ Value is less than $500.

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

For the six months ended June 30, 2020, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	33,246,000
Futures Contracts:
Average monthly notional value	$	37,371,000
Swap Agreements:
Average monthly notional amount	$	10,986,000

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

leverage which may increase the impact that gains (losses) may have on the Fund.

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 million				Next $500 million				Over $1 billion
	0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.04% 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 and 1.00% for Class II 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 six months ended June 30, 2020, approximately $323,000 of advisory fees were waived 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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

E. Distribution 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 Distributor of the Fund and provides the Fund's Class II shareholders with distribution services pursuant to a Distribution Plan (the "Plan") in accordance with Rule 12b-1 under the Act. Under the Plan, the Fund is authorized to pay the Distributor a distribution fee, which is accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class II shares. The Distributor has agreed to waive 0.15% of the 0.25% distribution fee that it may receive. This fee waiver 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 waiver when they deem such action is appropriate. For the six months ended June 30, 2020, this waiver amounted to approximately $11,000.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $26,252,000 and $37,726,000, respectively. For the six months ended June 30, 2020, purchases and sales of long-term U.S. Government securities were approximately $19,556,000 and $20,948,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management

investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2020, advisory fees paid were reduced by approximately $8,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	12,137			$	39,357			$	35,101			$	29

Affiliated
Investment
Company (cont'd)

Realized
Gain (Loss)
(000)

Change in
Unrealized
Appreciation
(Depreciation)
(000)

Value
June 30,
2020
(000)

Liquidity Funds

—

16,393

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.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2019 remains subject to examination by taxing authorities.

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	1,951	$	4,497	$	1,352	$	5,269

Permanent differences, primarily due to equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2019:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	(707	)		$	707

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	4,583			$	4,078

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was below its peer group average for the one and five-year periods but better than its peer group average for the three year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Fund's contractual management fee was higher than its peer group average and the actual management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's (i) performance was acceptable and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Profitability of the Adviser and Affiliates

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Sub-Adviser

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Officers

John H. Gernon

President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFIMSAN
3175056 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Growth Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		5
Statement of Operations		6
Statements of Changes in Net Assets		7
Financial Highlights		8
Notes to Financial Statements		10
Investment Advisory Agreement Approval		20
Liquidity Risk Management Program		22
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

Growth Portfolio

As a shareholder of the Growth Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Growth Portfolio Class I	$	1,000.00	$	1,520.70	$	1,022.03	$	3.57	$	2.87		0.57	%
Growth Portfolio Class II		1,000.00		1,518.90		1,020.79		5.14		4.12		0.82

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

Growth Portfolio

	Shares		Value (000)
Common Stocks (96.4%)
Biotechnology (1.3%)
Alnylam Pharmaceuticals, Inc. (a)		30,348	$	4,495
Moderna, Inc. (a)		97,084		6,234
				10,729
Entertainment (6.8%)
Netflix, Inc. (a)		24,567		11,179
Spotify Technology SA (a)		183,209		47,303
				58,482
Health Care Equipment & Supplies (6.9%)
DexCom, Inc. (a)		78,538		31,839
Intuitive Surgical, Inc. (a)		48,548		27,664
				59,503
Health Care Providers & Services (1.7%)
Covetrus, Inc. (a)		195,017		3,489
Guardant Health, Inc. (a)		136,001		11,034
				14,523
Health Care Technology (4.9%)
Agilon Health Topco, Inc. (a)(b)(c) (acquisition cost — $1,272; acquired 11/7/18)		3,363		1,539
Veeva Systems, Inc., Class A (a)		171,578		40,221
				41,760
Information Technology Services (26.3%)
Adyen N.V. (Netherlands) (a)		11,783		17,168
MongoDB, Inc. (a)		97,452		22,057
Okta, Inc. (a)		191,869		38,418
Shopify, Inc., Class A (Canada) (a)		66,542		63,162
Square, Inc., Class A (a)		441,184		46,298
Twilio, Inc., Class A (a)		177,369		38,918
				226,021
Interactive Media & Services (5.5%)
Snap, Inc., Class A (a)		621,074		14,589
Twitter, Inc. (a)		684,557		20,393
Zillow Group, Inc., Class C (a)		216,177		12,454
				47,436
Internet & Direct Marketing Retail (10.9%)
Amazon.com, Inc. (a)		17,733		48,922
Chewy, Inc., Class A (a)		397,968		17,785
Farfetch Ltd., Class A (a)		470,063		8,118
Wayfair, Inc., Class A (a)		92,683		18,315
				93,140
Life Sciences Tools & Services (4.8%)
10X Genomics, Inc., Class A (a)		143,132		12,783
Illumina, Inc. (a)		77,832		28,825
				41,608
Metals & Mining (0.2%)
Royal Gold, Inc.		12,201		1,517
Oil, Gas & Consumable Fuels (0.2%)
Texas Pacific Land Trust		3,086		1,835

	Shares		Value (000)
Road & Rail (3.8%)
Uber Technologies, Inc. (a)		1,038,006	$	32,261
Semiconductors & Semiconductor Equipment (1.4%)
NVIDIA Corp.		31,863		12,105
Software (19.0%)
Atlassian Corp., PLC, Class A (United Kingdom) (a)		64,202		11,574
Coupa Software, Inc. (a)		111,408		30,864
Datadog, Inc., Class A (a)		160,396		13,946
Slack Technologies, Inc., Class A (a)		1,074,879		33,418
Trade Desk, Inc. (The), Class A (a)		64,046		26,035
Zoom Video Communications, Inc., Class A (a)		188,022		47,671
				163,508
Specialty Retail (2.7%)
Carvana Co. (a)		191,188		22,981
Total Common Stocks (Cost $444,413)				827,409
Preferred Stocks (0.7%)
Electronic Equipment, Instruments & Components (0.0%)
Magic Leap Series C (a)(b)(c) (acquisition cost — $1,526; acquired 12/22/15)		66,235		—
Internet & Direct Marketing Retail (0.7%)
Airbnb, Inc. Series D (a)(b)(c) (acquisition cost — $3,074; acquired 4/16/14)		75,501		6,042
Software (0.0%)
Lookout, Inc. Series F (a)(b)(c) (acquisition cost — $1,618; acquired 6/17/14)		141,612		360
Total Preferred Stocks (Cost $6,218)				6,402
Short-Term Investment (3.2%)
Investment Company (3.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note H) (Cost $27,495)		27,494,963		27,495
Total Investments Excluding Purchased Options (100.3%) (Cost $478,126)				861,306
Total Purchased Options Outstanding (0.1%) (Cost $1,977)				646
Total Investments (100.4%) (Cost $480,103) (d)(e)				861,952
Liabilities in Excess of Other Assets (-0.4%)				(3,508	)
Net Assets (100.0%)			$	858,444

(a) Non-income producing security.

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

Growth Portfolio

(c) At June 30, 2020, the Fund held fair valued securities valued at approximately $7,941,000, representing 0.9% 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.

(d) The approximate fair value and percentage of net assets, $17,168,000 and 2.0%, 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 Financial Statements.

(e) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $391,145,000 and the aggregate gross unrealized depreciation is approximately $9,296,000, resulting in net unrealized appreciation of approximately $381,849,000.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2020:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
Royal Bank of Scotland	USD/CNH	CNH	7.75	Jan-21		142,018,241	$	142,018	$	363	$	620	$	(257	)
Royal Bank of Scotland	USD/CNH	CNH	8.09	Sep-20		111,384,445		111,384		18		601		(583	)
Royal Bank of Scotland	USD/CNH	CNH	8.48	May-21		121,053,871		121,054		265		756		(491	)
									$	646	$	1,977	$	(1,331	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Information Technology Services		26.3	%
Other*		24.0
Software		19.0
Internet & Direct Marketing Retail		11.5
Health Care Equipment & Supplies		6.9
Entertainment		6.8
Interactive Media & Services		5.5
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.
4

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Growth Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $452,608)	$	834,457
Investment in Security of Affiliated Issuer, at Value (Cost $27,495)		27,495
Total Investments in Securities, at Value (Cost $480,103)		861,952
Foreign Currency, at Value (Cost $1)		1
Receivable for Fund Shares Sold		87
Tax Reclaim Receivable		20
Receivable from Affiliate		1
Other Assets		42
Total Assets		862,103
Liabilities:
Payable for Fund Shares Redeemed		1,866
Due to Broker		721
Payable for Advisory Fees		562
Payable for Servicing Fees		267
Payable for Distribution Fees — Class II Shares		61
Payable for Administration Fees		54
Payable for Reorganization Expense		51
Payable for Professional Fees		27
Payable for Directors' Fees and Expenses		10
Payable for Custodian Fees		6
Payable for Transfer Agency Fees		3
Other Liabilities		31
Total Liabilities		3,659
NET ASSETS	$	858,444
Net Assets Consist of:
Paid-in-Capital	$	329,718
Total Distributable Earnings		528,726
Net Assets	$	858,444
CLASS I:
Net Assets	$	549,941
Net Asset Value, Offering and Redemption Price Per Share Applicable to 10,101,182 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	54.44
CLASS II:
Net Assets	$	308,503
Net Asset Value, Offering and Redemption Price Per Share Applicable to 6,061,482 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	50.90

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Growth Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Dividends from Security of Affiliated Issuer (Note H)	$	40
Dividends from Securities of Unaffiliated Issuers		2
Total Investment Income		42
Expenses:
Advisory Fees (Note B)		1,656
Servicing Fees (Note D)		445
Distribution Fees — Class II Shares (Note E)		297
Administration Fees (Note C)		265
Professional Fees		61
Shareholder Reporting Fees		14
Custodian Fees (Note G)		12
Directors' Fees and Expenses		8
Transfer Agency Fees (Note F)		6
Pricing Fees		2
Other Expenses		15
Total Expenses		2,781
Waiver of Advisory Fees (Note B)		(597	)
Rebate from Morgan Stanley Affiliate (Note H)		(13	)
Net Expenses		2,171
Net Investment Loss		(2,129	)
Realized Gain:
Investments Sold		65,389
Foreign Currency Translation		—	@
Net Realized Gain		65,389
Change in Unrealized Appreciation (Depreciation):
Investments		235,361
Foreign Currency Translation		—	@
Net Change in Unrealized Appreciation (Depreciation)		235,361
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		300,750
Net Increase in Net Assets Resulting from Operations	$	298,621

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Growth Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(2,129	)	$	(2,479	)
Net Realized Gain		65,389			100,790
Net Change in Unrealized Appreciation (Depreciation)		235,361			189
Net Increase in Net Assets Resulting from Operations		298,621			98,500
Dividends and Distributions to Shareholders:
Class I		—			(20,830	)
Class II		—			(12,370	)
Total Dividends and Distributions to Shareholders		—			(33,200	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		8,324			10,618
Issued due to a Tax-free Reorganization		—			245,109
Distributions Reinvested		—			20,830
Redeemed		(36,362	)		(49,722	)
Class II:
Subscribed		32,580			28,971
Issued due to a Tax-free Reorganization		—			61,369
Distributions Reinvested		—			12,370
Redeemed		(45,199	)		(60,606	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(40,657	)		268,939
Total Increase in Net Assets		257,964			334,239
Net Assets:
Beginning of Period		600,480			266,241
End of Period	$	858,444		$	600,480
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		201			308
Shares Issued due to a Tax-free Reorganization		—			6,914
Shares Issued on Distributions Reinvested		—			585
Shares Redeemed		(903	)		(1,439	)
Net Increase (Decrease) in Class I Shares Outstanding		(702	)		6,368
Class II:
Shares Subscribed		834			913
Shares Issued due to a Tax-free Reorganization		—			1,840
Shares Issued on Distributions Reinvested		—			370
Shares Redeemed		(1,152	)		(1,912	)
Net Increase (Decrease) in Class II Shares Outstanding		(318	)		1,211

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Growth Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	35.80		$	28.62		$	32.38		$	24.65		$	29.93		$	30.73
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.11	)		(0.14	)		(0.14	)		(0.13	)		(0.03	)		(0.11	)
Net Realized and Unrealized Gain (Loss)		18.75			9.23			3.34			10.44			(0.57	)		3.76
Total from Investment Operations		18.64			9.09			3.20			10.31			(0.60	)		3.65
Distributions from and/or in Excess of:
Net Realized Gain		—			(1.91	)		(6.96	)		(2.58	)		(4.68	)		(4.45	)
Net Asset Value, End of Period	$	54.44		$	35.80		$	28.62		$	32.38		$	24.65		$	29.93
Total Return⁽³⁾		52.07	%⁽⁷⁾		31.81	%		7.54	%		43.15	%		(1.64	)%		12.24	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	549,941		$	386,720		$	126,941		$	133,745		$	104,504		$	119,883
Ratio of Expenses Before Expense Limitation		0.75	%⁽⁸⁾		0.78	%		N/A			0.81	%		0.79	%		0.81	%
Ratio of Expenses After Expense Limitation		0.57	%⁽⁴⁾⁽⁸⁾		0.61	%⁽⁴⁾⁽⁵⁾		0.79	%⁽⁴⁾		0.79	%⁽⁴⁾		0.76	%⁽⁴⁾		0.80	%⁽⁴⁾
Ratio of Net Investment Loss		(0.56	)%⁽⁴⁾⁽⁸⁾		(0.41	)%⁽⁴⁾		(0.39	)%⁽⁴⁾		(0.43	)%⁽⁴⁾		(0.11	)%⁽⁴⁾		(0.37	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.00	%⁽⁶⁾		0.01	%		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		23	%⁽⁷⁾		95	%		56	%		54	%		39	%		33	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation would have been 0.03% higher and the Ratio of Net Investment Loss would have been 0.03% lower had the custodian not reimbursed the Fund.

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

(5) Effective April 29, 2019, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.57% for Class I shares. Prior to April 29, 2019, the maximum ratio was 0.80% for Class I shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

Growth Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	33.51		$	26.95		$	30.89		$	23.66		$	29.00		$	29.97
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.15	)		(0.21	)		(0.21	)		(0.19	)		(0.09	)		(0.18	)
Net Realized and Unrealized Gain (Loss)		17.54			8.68			3.23			10.00			(0.57	)		3.66
Total from Investment Operations		17.39			8.47			3.02			9.81			(0.66	)		3.48
Distributions from and/or in Excess of:
Net Realized Gain		—			(1.91	)		(6.96	)		(2.58	)		(4.68	)		(4.45	)
Net Asset Value, End of Period	$	50.90		$	33.51		$	26.95		$	30.89		$	23.66		$	29.00
Total Return⁽³⁾		51.89	%⁽⁷⁾		31.47	%		7.30	%		42.82	%		(1.92	)%		11.97	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	308,503		$	213,760		$	139,300		$	124,268		$	80,081		$	89,398
Ratio of Expenses Before Expense Limitation		1.00	%⁽⁸⁾		1.03	%		N/A			1.06	%		1.04	%		1.09	%
Ratio of Expenses After Expense Limitation		0.82	%⁽⁴⁾⁽⁸⁾		0.86	%⁽⁴⁾⁽⁵⁾		1.04	%⁽⁴⁾		1.04	%⁽⁴⁾		1.01	%⁽⁴⁾		1.05	%⁽⁴⁾
Ratio of Net Investment Loss		(0.81	)%⁽⁴⁾⁽⁸⁾		(0.66	)%⁽⁴⁾		(0.64	)%⁽⁴⁾		(0.68	)%⁽⁴⁾		(0.36	)%⁽⁴⁾		(0.62	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.00	%⁽⁶⁾		0.01	%		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		23	%⁽⁷⁾		95	%		56	%		54	%		39	%		33	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class II shares. The Ratio of Expenses After Expense Limitation would have been 0.03% higher and the Ratio of Net Investment Loss would have been 0.03% lower had the custodian not reimbursed the Fund.

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

(5) Effective April 29, 2019, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.82% for Class II shares. Prior to April 29, 2019, the maximum ratio was 1.05% for Class II shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

The accompanying 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 two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

On April 26, 2019, the Fund acquired the net assets of Morgan Stanley Variable Investment Series Multi Cap Growth ("Multi Cap Growth"), an open-end investment company, based on the respective valuations as of the close of business on April 26, 2019, pursuant to a Plan of Reorganization approved by the shareholders of Multi Cap Growth on February 6, 2019 ("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 6,914,222 Class I shares of the Fund at a net asset value ("NAV") of $35.45 for 6,427,253 Class X shares of Multi Cap Growth; 1,840,161 Class II shares of the Fund at a NAV of $33.35 for 1,745,017 Class Y shares of Multi Cap Growth. The net assets of Multi Cap Growth before the Reorganization were approximately $306,479,000, including unrealized appreciation (depreciation) of approximately $84,991,000 at April 26, 2019. The investment portfolio of Multi Cap Growth, with a fair value of approximately $306,245,000 and identified cost of approximately $221,254,000, on April 26, 2019, 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 Multi Cap Growth 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 $309,573,000. Immediately after the Reorganization, the net assets of the Fund were approximately $616,052,000.

Upon closing of the Reorganization, shareholders of Multi Cap Growth received shares of the Fund as follows:

Multi Cap Growth				Growth Portfolio
Class X				Class I
Class Y				Class II

Assuming the acquisition had been completed on January 1, 2019, the beginning of the annual reporting period of the Fund, the Fund's pro-forma results of operations for the period ended December 31, 2019, are approximately as follows:

Net investment loss⁽¹⁾	$	(1,530,000	)
Net realized gain and unrealized gain⁽²⁾	$	217,538,000
Net increase in net assets resulting from operations	$	216,008,000

(1) Approximately $(2,479,000) as reported, plus approximately $388,000 from Multi Cap Growth prior to the Reorganization, plus approximately $561,000 of estimated pro-forma eliminated expenses.

(2) Approximately $100,979,000 as reported, plus approximately $116,559,000 from Multi Cap Growth 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 Multi Cap Growth that have been included in the Fund's Statement of Operations since April 26, 2019.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

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 or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a

given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If the Adviser, a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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.

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

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

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Assets:
Common Stocks
Biotechnology	$	10,729	$	—	$	—		$	10,729
Entertainment		58,482		—		—			58,482
Health Care Equipment & Supplies		59,503		—		—			59,503
Health Care Providers & Services		14,523		—		—			14,523
Health Care Technology		40,221		—		1,539			41,760
Information Technology Services		208,853		17,168		—			226,021
Interactive Media & Services		47,436		—		—			47,436
Internet & Direct Marketing Retail		93,140		—		—			93,140
Life Sciences Tools & Services		41,608		—		—			41,608
Metals & Mining		1,517		—		—			1,517
Oil, Gas & Consumable Fuels		1,835		—		—			1,835
Road & Rail		32,261		—		—			32,261
Semiconductors & Semiconductor Equipment		12,105		—		—			12,105
Software		163,508		—		—			163,508
Specialty Retail		22,981		—		—			22,981
Total Common Stocks		808,702		17,168		1,539			827,409
Preferred Stocks
Electronic Equipment, Instruments & Components		—		—		—	†		—	†
Internet & Direct Marketing Retail		—		—		6,042			6,042
Software		—		—		360			360
Total Preferred Stocks		—		—		6,402	†		6,402	†
Call Options Purchased		—		646		—			646
Short-Term Investment
Investment Company		27,495		—		—			27,495
Total Assets	$	836,197	$	17,814	$	7,941	†	$	861,952	†

† Includes one 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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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

	Common Stock (000)		Preferred Stocks (000)
Beginning Balance	$	1,511	$	11,897
Purchases		—		—
Sales		—		—
Amortization of discount		—		—
Transfers in		—		—
Transfers out		—		—
Corporate actions		—		—
Change in unrealized appreciation (depreciation)		28		(5,495	)
Realized gains (losses)		—		—
Ending Balance	$	1,539	$	6,402	†
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2020	$	28	$	(5,495	)

† Includes one security valued at zero.

Fair Value at
June 30, 2020
(000)

Valuation
Technique

Unobservable
Input

Amount or Range/
Weighted Average*

Impact to
Valuation from an
Increase in Input**

Common Stock

1,539

Discounted Cash Flow

Weighted Average
Cost of Capital

13.0%

Decrease

Perpetual Growth Rate

3.5%

Increase

Market Comparable
Companies

Enterprise Value/
Revenue

1.4x

Increase

Discount for Lack
of Marketability

12.0%

Decrease

Preferred Stocks

6,402

Market Transaction
Method

Precedent Transaction

$8.41

Increase

Discounted Cash Flow

Weighted Average
Cost of Capital

14.0%–19.0%/15.2%

Decrease

Perpetual Growth Rate

3.0%–4.0%/3.5%

Increase

Market Comparable
Companies

Enterprise Value/
Revenue

1.5x–27.1x/5.6x

Increase

Discount for Lack
of Marketability

16.5%–17.0%/16.5%

Decrease

Comparable
Transactions

Enterprise Value/
Revenue

3.5x

Increase

* Amount is indicative of the weighted average.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to 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.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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

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 June 30, 2020:

Asset Derivatives
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

646

(a)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(1,179	)(b)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	245	(c)

At June 30, 2020, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Purchased Options	$	646	(a)	$	—

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

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2020:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities(a) (000)		Financial Instrument (000)		Collateral Received(e) (000)			Net Amount (not less than $0) (000)
Royal Bank of Scotland	$	646	$	—	$	(646	)	$	0

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

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

For the six months ended June 30, 2020, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					395,976,000

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, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Fund can sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and the acquirer of the securities. The Fund would, in either case, bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

First $1 billion				Next $1 billion				Next $1 billion				Over $3 billion
	0.50	%			0.45	%			0.40	%			0.35	%

For the six months ended June 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.32% 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 0.57% for Class I shares and 0.82% for Class II 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 six months ended June 30, 2020, approximately $597,000 of advisory fees were waived pursuant to this arrangement.

paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class II shares.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $151,560,000 and $218,996,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2020.

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 six months ended June 30, 2020, 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 six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	5,219			$	139,956			$	117,680			$	40

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	27,495

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	33,200	$	4,769	$	51,255

Permanent differences, primarily due to equalization debits and tax adjustments related to the Reorganization, resulted in the following reclassifications among the components of net assets at December 31, 2019:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	(13,581	)		$	13,581

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	13,028			$	77,000

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was below its peer group average for the one-year period but better than its peer group average for the three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's performance, management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

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

Profitability of the Adviser and Affiliates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFCGSAN
3174441 EXP. 08.31.21

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

U.S. Real Estate Portfolio

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Table of Contents

Expense Example		2
Portfolio of Investments		3
Statement of Assets and Liabilities		5
Statement of Operations		6
Statements of Changes in Net Assets		7
Financial Highlights		8
Notes to Financial Statements		10
Investment Advisory Agreement Approval		16
Liquidity Risk Management Program		18
Director and Officer Information	Back Cover

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Expense Example

U.S. Real Estate Portfolio

As a shareholder of the U.S. Real Estate Portfolio (the "Fund"), you incur two types of costs: (1) insurance company charges; and (2) ongoing costs, which may include advisory fees, administration fees, distribution (12b-1) 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 June 30, 2020 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/20		Actual Ending Account Value 6/30/20		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
U.S. Real Estate Portfolio Class I	$	1,000.00	$	728.20	$	1,020.79	$	3.52	$	4.12		0.82	%
U.S. Real Estate Portfolio Class II		1,000.00		727.10		1,019.54		4.59		5.37		1.07

** Annualized.

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments

U.S. Real Estate Portfolio

	Shares		Value (000)
Common Stocks (96.1%)
Apartments (17.0%)
American Campus Communities, Inc. REIT		212,490	$	7,429
AvalonBay Communities, Inc. REIT		100,004		15,465
Camden Property Trust REIT		115,635		10,548
Equity Residential REIT		203,395		11,964
Essex Property Trust, Inc. REIT		26,324		6,033
Mid-America Apartment Communities, Inc. REIT		30,196		3,462
UDR, Inc. REIT		20,818		778
				55,679
Data Centers (4.1%)
Digital Realty Trust, Inc. REIT		80,510		11,441
QTS Realty Trust, Inc., Class A REIT		30,000		1,923
				13,364
Diversified (4.9%)
JBG SMITH Properties REIT		119,198		3,524
Mack-Cali Realty Corp. REIT		251,866		3,851
Vornado Realty Trust REIT		229,751		8,779
				16,154
Health Care (9.5%)
Five Star Senior Living, Inc. (a)		6,975		27
Healthcare Realty Trust, Inc. REIT		267,150		7,825
Healthcare Trust of America, Inc., Class A REIT		117,102		3,106
Healthpeak Properties, Inc. REIT		136,949		3,774
Ventas, Inc. REIT		321,890		11,788
Welltower, Inc. REIT		89,245		4,618
				31,138
Industrial (11.1%)
Duke Realty Corp. REIT		89,819		3,179
Lexington Realty Trust REIT		158,730		1,675
ProLogis, Inc. REIT		337,676		31,515
				36,369
Lodging/Resorts (7.0%)
DiamondRock Hospitality Co. REIT		224,290		1,240
Host Hotels & Resorts, Inc. REIT		1,281,366		13,826
RLJ Lodging Trust REIT		314,710		2,971
Sunstone Hotel Investors, Inc. REIT		582,826		4,750
				22,787
Manufactured Homes (0.2%)
Equity Lifestyle Properties, Inc. REIT		12,643		790
Office (20.7%)
Alexandria Real Estate Equities, Inc. REIT		35,192		5,710
Boston Properties, Inc. REIT		173,671		15,696
Cousins Properties, Inc. REIT		174,236		5,198
Highwoods Properties, Inc. REIT		31,950		1,193
Hudson Pacific Properties, Inc. REIT		362,978		9,133
Kilroy Realty Corp. REIT		94,055		5,521
Paramount Group, Inc. REIT		332,734		2,565
SL Green Realty Corp. REIT		460,463		22,696
				67,712

	Shares		Value (000)
Regional Malls (7.7%)
Macerich Co. (The) REIT		35,905	$	322
Simon Property Group, Inc. REIT		336,457		23,007
Taubman Centers, Inc. REIT		47,470		1,792
				25,121
Self Storage (6.0%)
CubeSmart REIT		212,774		5,743
Extra Space Storage, Inc. REIT		38,360		3,543
Life Storage, Inc. REIT		17,861		1,696
Public Storage REIT		45,638		8,757
				19,739
Shopping Centers (3.9%)
Brixmor Property Group, Inc. REIT		10,810		139
Regency Centers Corp. REIT		142,120		6,522
Weingarten Realty Investors REIT		321,845		6,092
				12,753
Single Family Homes (3.0%)
American Homes 4 Rent, Class A REIT		93,379		2,512
Invitation Homes, Inc. REIT		263,847		7,264
				9,776
Specialty (1.0%)
Gaming and Leisure Properties, Inc. REIT		92,231		3,191
Total Common Stocks (Cost $288,933)				314,573
Short-Term Investment (3.3%)
Investment Company (3.3%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note H) (Cost $10,736)		10,736,365		10,736
Total Investments (99.4%) (Cost $299,669) (b)				325,309
Other Assets in Excess of Liabilities (0.6%)				1,852
Net Assets (100.0%)			$	327,161

(a) Non-income producing security.

(b) At June 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $63,124,000 and the aggregate gross unrealized depreciation is approximately $37,484,000, resulting in net unrealized appreciation of approximately $25,640,000.

REIT Real Estate Investment Trust.

The accompanying notes are an integral part of the financial statements.
3

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Portfolio of Investments (cont'd)

U.S. Real Estate Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Office		20.8	%
Apartments		17.1
Other*		15.5
Industrial		11.2
Health Care		9.6
Regional Malls		7.7
Lodging/Resorts		7.0
Self Storage		6.1
Diversified		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.
4

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

U.S. Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2020 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $288,933)	$	314,573
Investment in Security of Affiliated Issuer, at Value (Cost $10,736)		10,736
Total Investments in Securities, at Value (Cost $299,669)		325,309
Receivable for Fund Shares Sold		1,414
Dividends Receivable		1,108
Receivable from Affiliate		—	@
Other Assets		35
Total Assets		327,866
Liabilities:
Payable for Advisory Fees		394
Payable for Servicing Fees		115
Payable for Fund Shares Redeemed		59
Payable for Distribution Fees — Class II Shares		37
Payable for Professional Fees		33
Payable for Administration Fees		22
Payable for Custodian Fees		4
Payable for Transfer Agency Fees		3
Other Liabilities		38
Total Liabilities		705
NET ASSETS	$	327,161
Net Assets Consist of:
Paid-in-Capital	$	311,361
Total Distributable Earnings		15,800
Net Assets	$	327,161
CLASS I:
Net Assets	$	152,667
Net Asset Value, Offering and Redemption Price Per Share Applicable to 9,562,304 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	15.97
CLASS II:
Net Assets	$	174,494
Net Asset Value, Offering and Redemption Price Per Share Applicable to 11,011,320 Outstanding $0.001 Par Value Shares (Authorized 500,000,000 Shares)	$	15.85

@ Amount is less than $500.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

U.S. Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2020 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	6,256
Dividends from Security of Affiliated Issuer (Note H)		12
Total Investment Income		6,268
Expenses:
Advisory Fees (Note B)		1,219
Servicing Fees (Note D)		252
Distribution Fees — Class II Shares (Note E)		231
Administration Fees (Note C)		139
Professional Fees		55
Shareholder Reporting Fees		21
Custodian Fees (Note G)		8
Transfer Agency Fees (Note F)		6
Directors' Fees and Expenses		6
Pricing Fees		2
Other Expenses		9
Total Expenses		1,948
Waiver of Advisory Fees (Note B)		(289	)
Rebate from Morgan Stanley Affiliate (Note H)		(7	)
Net Expenses		1,652
Net Investment Income		4,616
Realized Loss:
Investments Sold		(27,812	)
Change in Unrealized Appreciation (Depreciation):
Investments		(90,046	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(117,858	)
Net Decrease in Net Assets Resulting from Operations	$	(113,242	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

U.S. Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2020 (unaudited) (000)			Year Ended December 31, 2019 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	4,616		$	9,607
Net Realized Gain (Loss)		(27,812	)		13,948
Net Change in Unrealized Appreciation (Depreciation)		(90,046	)		49,796
Net Increase (Decrease) in Net Assets Resulting from Operations		(113,242	)		73,351
Dividends and Distributions to Shareholders:
Class I		—			(11,305	)
Class II		—			(12,425	)
Total Dividends and Distributions to Shareholders		—			(23,730	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		20,162			15,265
Distributions Reinvested		—			11,305
Redeemed		(15,104	)		(34,028	)
Class II:
Subscribed		19,891			13,892
Distributions Reinvested		—			12,425
Redeemed		(13,266	)		(43,241	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		11,683			(24,382	)
Total Increase (Decrease) in Net Assets		(101,559	)		25,239
Net Assets:
Beginning of Period		428,720			403,481
End of Period	$	327,161		$	428,720
⁽¹⁾Capital Share Transactions:
Class I:
Shares Subscribed		1,293			703
Shares Issued on Distributions Reinvested		—			531
Shares Redeemed		(879	)		(1,572	)
Net Increase (Decrease) in Class I Shares Outstanding		414			(338	)
Class II:
Shares Subscribed		1,299			642
Shares Issued on Distributions Reinvested		—			587
Shares Redeemed		(752	)		(2,015	)
Net Increase (Decrease) in Class II Shares Outstanding		547			(786	)

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

U.S. Real Estate Portfolio

	Class I
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	21.93		$	19.52		$	21.72		$	21.39		$	20.28		$	20.13
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.25			0.51			0.51			0.45			0.35			0.30
Net Realized and Unrealized Gain (Loss)		(6.21	)		3.15			(2.13	)		0.20			1.04			0.12
Total from Investment Operations		(5.96	)		3.66			(1.62	)		0.65			1.39			0.42
Distributions from and/or in Excess of:
Net Investment Income		—			(0.42	)		(0.58	)		(0.32	)		(0.28	)		(0.27	)
Net Realized Gain		—			(0.83	)		—			—			—			—
Total Distributions		—			(1.25	)		(0.58	)		(0.32	)		(0.28	)		(0.27	)
Net Asset Value, End of Period	$	15.97		$	21.93		$	19.52		$	21.72		$	21.39		$	20.28
Total Return⁽³⁾		(27.18	)%⁽⁹⁾		18.94	%		(7.71	)%		3.11	%		6.81	%		2.17	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	152,667		$	200,635		$	185,191		$	228,487		$	251,517		$	191,188
Ratio of Expenses Before Expense Limitation		0.99	%⁽¹⁰⁾		0.97	%		1.03	%		1.07	%		1.06	%		1.07	%
Ratio of Expenses After Expense Limitation		0.82	%^(4)(10)		0.82	%⁽⁴⁾		0.86	%⁽⁴⁾⁽⁵⁾		0.92	%⁽⁴⁾⁽⁶⁾		0.97	%⁽⁴⁾⁽⁷⁾		1.00	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Non-Operating Expenses		N/A			N/A			N/A			N/A			N/A			1.00	%⁽⁴⁾
Ratio of Net Investment Income		2.78	%^(4)(10)		2.36	%⁽⁴⁾		2.47	%⁽⁴⁾		2.13	%⁽⁴⁾		1.66	%⁽⁴⁾		2.36	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.00	%⁽⁸⁾		0.00	%⁽⁸⁾		0.00	%⁽⁸⁾		0.01	%		0.00	%⁽⁸⁾
Portfolio Turnover Rate		16	%⁽⁹⁾		20	%		40	%		44	%		21	%		26	%

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

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

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.82% for Class I shares. Prior to July 1, 2018, the maximum ratio was 0.90% for Class I shares.

(6) Effective July 1, 2017, 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, 2017, the maximum ratio was 0.95% for Class I shares.

(7) Effective July 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.95% for Class I shares. Prior to July 1, 2016, the maximum ratio was 1.00% for Class I shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020

Financial Highlights

U.S. Real Estate Portfolio

	Class II
	Six Months Ended June 30, 2020			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2019			2018			2017			2016⁽¹⁾			2015
Net Asset Value, Beginning of Period	$	21.80		$	19.40		$	21.59		$	21.26		$	20.16		$	20.02
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.22			0.45			0.46			0.40			0.29			0.25
Net Realized and Unrealized Gain (Loss)		(6.17	)		3.14			(2.13	)		0.20			1.04			0.12
Total from Investment Operations		(5.95	)		3.59			(1.67	)		0.60			1.33			0.37
Distributions from and/or in Excess of:
Net Investment Income		—			(0.36	)		(0.52	)		(0.27	)		(0.23	)		(0.23	)
Net Realized Gain		—			(0.83	)		—			—			—			—
Total Distributions		—			(1.19	)		(0.52	)		(0.27	)		(0.23	)		(0.23	)
Net Asset Value, End of Period	$	15.85		$	21.80		$	19.40		$	21.59		$	21.26		$	20.16
Total Return⁽³⁾		(27.29	)%⁽⁹⁾		18.68	%		(7.97	)%		2.87	%		6.55	%		1.92	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	174,494		$	228,085		$	218,290		$	283,481		$	298,254		$	281,056
Ratio of Expenses Before Expense Limitation		1.24	%⁽¹⁰⁾		1.22	%		1.28	%		1.32	%		1.31	%		1.35	%
Ratio of Expenses After Expense Limitation		1.07	%^(4)(10)		1.07	%⁽⁴⁾		1.11	%⁽⁴⁾⁽⁵⁾		1.17	%⁽⁴⁾⁽⁶⁾		1.22	%⁽⁴⁾⁽⁷⁾		1.25	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Non-Operating Expenses		N/A			N/A			N/A			N/A			N/A			1.25	%⁽⁴⁾
Ratio of Net Investment Income		2.53	%^(4)(10)		2.11	%⁽⁴⁾		2.22	%⁽⁴⁾		1.88	%⁽⁴⁾		1.41	%⁽⁴⁾		2.11	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.00	%⁽⁸⁾		0.00	%⁽⁸⁾		0.00	%⁽⁸⁾		0.01	%		0.00	%⁽⁸⁾
Portfolio Turnover Rate		16	%⁽⁹⁾		20	%		40	%		44	%		21	%		26	%

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

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

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.07% for Class II shares. Prior to July 1, 2018, the maximum ratio was 1.15% for Class II shares.

(6) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.15% for Class II shares. Prior to July 1, 2017, the maximum ratio was 1.20% for Class II shares.

(7) Effective July 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.20% for Class II shares. Prior to July 1, 2016, the maximum ratio was 1.25% for Class II shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements

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 offers two classes of shares — Class I and Class II. Both classes of shares have identical voting rights (except that shareholders of a Class have exclusive voting rights regarding any matter relating solely to that Class of shares), dividend, liquidation and other rights.

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

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the 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. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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.

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.

• 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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2020:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Apartments	$	55,679	$	—	$	—	$	55,679
Data Centers		13,364		—		—		13,364
Diversified		16,154		—		—		16,154
Health Care		31,138		—		—		31,138
Industrial		36,369		—		—		36,369
Lodging/Resorts		22,787		—		—		22,787
Manufactured Homes		790		—		—		790
Office		67,712		—		—		67,712
Regional Malls		25,121		—		—		25,121
Self Storage		19,739		—		—		19,739
Shopping Centers		12,753		—		—		12,753
Single Family Homes		9,776		—		—		9,776
Specialty		3,191		—		—		3,191
Total Common Stocks		314,573		—		—		314,573
Short-Term Investment
Investment Company		10,736		—		—		10,736
Total Assets	$	325,309	$	—	$	—	$	325,309

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.

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 Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

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. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the 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) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $500 million				Next $500 million				Over $1 billion
	0.70	%			0.65	%			0.60	%

For the six months ended June 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.53% 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 0.82% for Class I shares and 1.07% for Class II 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 six months ended June 30, 2020, approximately $289,000 of advisory fees were waived pursuant to this arrangement.

H. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2020, purchases and sales of investment securities for the Fund, other

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

than long-term U.S. Government securities and short-term investments were approximately $66,500,000 and $55,084,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2020.

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. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2020, 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 six months ended June 30, 2020 is as follows:

Affiliated Investment Company				Value December 31, 2019 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	4,416			$	37,608			$	31,288			$	12

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2020 (000)
Liquidity Funds				$	—			$	—			$	10,736

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.

2019 Distributions Paid From:				2018 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	8,744	$	14,986	$	12,078	$	—

Permanent differences, primarily due to equalization debits and an adjustment to prior period distributable earnings,

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Notes to Financial Statements (cont'd)

resulted in the following reclassifications among the components of net assets at December 31, 2019:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	(1,906	)		$	1,906

At December 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	9,338			$	9,683

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2019, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was below its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's contractual management fee and total expense ratio were higher than but close to its peer group averages and the actual management fee was lower than its peer group average. After discussion, the Board concluded that the Fund's (i) performance was acceptable and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

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

Profitability of the Adviser and Affiliates

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Variable Insurance Fund, Inc.

Semi-Annual Report – June 30, 2020 (unaudited)

Director and Officer Information

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

W. Allen Reed, Chair of the Board

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Legal Counsel

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

Counsel to the Independent Directors

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

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

UIFREISAN
3174295 EXP. 08.31.21

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

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

Not applicable.

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

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

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

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

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of 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 most recent fiscal half-year period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed End Management Investment Companies.

Not Applicable.

Item 13. Exhibits

(a) Code of Ethics — Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto as part of EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Variable Insurance Fund, Inc.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
August 13, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
August 13, 2020

/s/ Francis Smith
Francis Smith
Principal Financial Officer
August 13, 2020

Morgan Stanley Variable Insurance Fund N-CSRSCertified semi-annual shareholder report (management investment company)