Morgan Stanley Institutional 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: 811-05624

Morgan Stanley Institutional 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, 2021

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					7
Statement of Operations					9
Statements of Changes in Net Assets					10
Financial Highlights					12
Notes to Financial Statements					18
Investment Advisory Agreement Approval					29
Liquidity Risk Management Program					31
U.S. Customer Privacy Notice					32
Director and Officer Information					35

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

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Active International Allocation Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Active International Allocation Portfolio Class I	$	1,000.00	$	1,076.20	$	1,020.38	$	4.58	$	4.46		0.89	%
Active International Allocation Portfolio Class A		1,000.00		1,074.60		1,018.99		6.02		5.86		1.17
Active International Allocation Portfolio Class L		1,000.00		1,071.60		1,016.31		8.78		8.55		1.71
Active International Allocation Portfolio Class C		1,000.00		1,070.20		1,014.93		10.21		9.94		1.99
Active International Allocation Portfolio Class IS		1,000.00		1,076.70		1,020.63		4.33		4.21		0.84
Active International Allocation Portfolio Class IR		1,000.00		1,076.70		1,020.63		4.33		4.21		0.84

* Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 181/365 (to reflect the most recent one-half year period).

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Active International Allocation Portfolio

	Shares		Value (000)
Common Stocks (99.0%)
Argentina (2.1%)
Despegar.com Corp. (a)		399,550	$	5,278
Belgium (1.0%)
Anheuser-Busch InBev SA N.V.		35,666		2,572
Brazil (1.4%)
Ambev SA ADR (b)		992,621		3,415
Canada (6.4%)
Agnico Eagle Mines Ltd.		39,382		2,382
Altus Group Ltd. (b)		25,941		1,202
Cameco Corp.		37,683		723
First Quantum Minerals Ltd.		358,254		8,257
Gildan Activewear, Inc.		43,068		1,589
Teck Resources Ltd., Class B		75,688		1,744
				15,897
China (6.5%)
Alibaba Group Holding Ltd. ADR (a)		27,107		6,147
China Resources Beer Holdings Co., Ltd. (c)		150,000		1,347
Tencent Holdings Ltd. (c)		57,100		4,295
Tencent Music Entertainment Group ADR (a)		53,366		826
Trip.com Group Ltd. ADR (a)		58,933		2,090
Yum China Holdings, Inc.		23,000		1,524
				16,229
Denmark (1.7%)
Drilling Co of 1972 A/S (The) (a)		25,313		1,057
Novo Nordisk A/S Series B		37,166		3,114
				4,171
France (8.6%)
Air Liquide SA		7,560		1,324
Airbus SE (a)		26,842		3,451
Capgemini SE		10,908		2,095
Dassault Systemes SE		5,613		1,361
EssilorLuxottica SA		76		14
Hermes International		463		675
Kering SA		2,026		1,771
L'Oreal SA (BSRM)		3,731		1,663
Legrand SA		6,555		694
LVMH Moet Hennessy Louis Vuitton SE		1,997		1,566
Pernod Ricard SA		6,591		1,463
Remy Cointreau SA		3,053		630
Sanofi		11,120		1,165
Ubisoft Entertainment SA (a)		26,061		1,824
Vivendi SE (b)		48,795		1,639
				21,335
Germany (7.0%)
Bayer AG (Registered)		76,678		4,656
CTS Eventim AG & Co. KGaA (a)		28,509		1,781
Duerr AG		9,388		357
Infineon Technologies AG		39,415		1,581
Jungheinrich AG (Preference)		31,250		1,527
KION Group AG		15,048		1,604

	Shares		Value (000)
Linde PLC (a)		9,321	$	2,690
Siemens Healthineers AG		53,094		3,254
				17,450
India (3.3%)
Apollo Hospitals Enterprise Ltd.		45,661		2,224
ICICI Bank Ltd. (a)		129,188		1,096
ICICI Prudential Life Insurance Co., Ltd.		144,760		1,193
Maruti Suzuki India Ltd.		12,004		1,214
Reliance Industries Ltd.		48,168		1,368
State Bank of India		182,705		1,030
				8,125
Ireland (0.4%)
Kerry Group PLC, Class A		6,696		935
Japan (9.2%)
FANUC Corp.		5,150		1,242
Hoya Corp.		7,800		1,034
Keyence Corp.		5,600		2,826
Murata Manufacturing Co., Ltd.		8,700		664
Nexon Co., Ltd.		10,100		225
Nikon Corp.		448,300		4,782
Nintendo Co., Ltd.		1,808		1,052
Shimano, Inc.		4,350		1,032
Shiseido Co., Ltd.		10,300		757
SMC Corp.		2,105		1,244
Sony Group Corp.		32,993		3,212
Sony Group Corp. ADR		25,250		2,455
Tokyo Electron Ltd.		3,900		1,688
Unicharm Corp.		13,300		535
				22,748
Korea, Republic of (3.5%)
Samsung Electronics Co., Ltd.		104,272		7,472
SK Hynix, Inc.		10,956		1,241
				8,713
Malta (0.0%) (d)
BGP Holdings PLC (a)(e)		72,261		—	@
Netherlands (4.3%)
Akzo Nobel N.V.		11,933		1,474
ASML Holding N.V.		5,084		3,493
Koninklijke Philips N.V.		92,227		4,570
Wolters Kluwer N.V.		10,871		1,092
				10,629
Norway (1.3%)
Adevinta ASA (a)		137,328		2,632
Subsea 7 SA		60,874		584
				3,216
Poland (1.1%)
Allegro.eu SA (a)		159,781		2,750
Singapore (8.6%)
Sea Ltd. ADR (a)		78,174		21,467

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Active International Allocation Portfolio

	Shares		Value (000)
South Africa (0.8%)
Impala Platinum Holdings Ltd.		61,784	$	1,019
Sibanye Stillwater Ltd.		219,946		919
Thungela Resources Ltd. (a)(b)		7,820		21
				1,959
Spain (1.3%)
Amadeus IT Group SA (a)		47,731		3,357
Sweden (1.3%)
Atlas Copco AB, Class A		6,146		376
Epiroc AB, Class A		25,544		582
Telefonaktiebolaget LM Ericsson, Class B		181,320		2,279
				3,237
Switzerland (1.3%)
Givaudan SA (Registered)		246		1,144
Nestle SA (Registered)		16,605		2,068
				3,212
Taiwan (3.5%)
Airtac International Group		32,000		1,235
Taiwan Semiconductor Manufacturing Co., Ltd.		212,000		4,527
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		24,292		2,919
				8,681
United Kingdom (13.9%)
Anglo American PLC		78,214		3,108
AstraZeneca PLC		26,912		3,232
Diageo PLC		59,312		2,840
Experian PLC		84,897		3,272
Glencore PLC (a)		2,072,444		8,871
Intertek Group PLC		3,793		290
Keywords Studios PLC (a)		52,066		1,793
Ryanair Holdings PLC ADR (a)		25,057		2,711
Sage Group PLC (The)		72,435		686
Unilever PLC		38,935		2,279
Unilever PLC ADR		21,923		1,283
Unilever PLC CVA		61,315		3,588
Weir Group PLC (The) (a)		25,917		664
				34,617
United States (10.5%)
Air Products & Chemicals, Inc.		4,116		1,184
Booking Holdings, Inc. (a)		1,006		2,201
Charles River Laboratories International, Inc. (a)		5,346		1,978
Cognex Corp.		7,900		664
Estee Lauder Cos., Inc. (The), Class A		5,577		1,774
Farfetch Ltd., Class A (a)		123,637		6,226
Medtronic PLC		15,251		1,893
Mondelez International, Inc., Class A		17,409		1,087
Newmont Corp. (NYSE)		64,750		4,104
Newmont Corp. (TSX)		29,323		1,859
Schlumberger N.V.		46,230		1,480
Vertex Pharmaceuticals, Inc. (a)		8,100		1,633
				26,083
Total Common Stocks (Cost $153,534)				246,076

	Shares		Value (000)
Investment Company (0.4%)
United States (0.4%)
Morgan Stanley China A Share Fund, Inc. (See Note G) (Cost $1,067)		46,002	$	1,052
Short-Term Investments (0.1%)
Securities held as Collateral on Loaned Securities (0.0%) (d)
Investment Company (0.0%) (d)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		45,858		46
	Face Amount (000)
Repurchase Agreements (0.0%) (d)
HSBC Securities USA, Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $2; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $2)	$	2		2
Merrill Lynch & Co., Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $6; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 12/30/21 - 8/15/43; valued at $6)		6		6
				8
Total Securities held as Collateral on Loaned Securities (Cost $54)				54
	Shares
Investment Company (0.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $172)		171,691		172
Total Short-Term Investments (Cost $226)				226
Total Investments (99.5%) (Cost $154,827) Including $6,172 of Securities Loaned (f)(g)				247,354
Other Assets in Excess of Liabilities (0.5%)				1,196
Net Assets (100.0%)			$	248,550

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.

@ Value is less than $500.

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2021.

(d) Amount is less than 0.05%.

(e) At June 30, 2021, the Fund held a fair valued security valued at less than $500, representing less than 0.05% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Active International Allocation Portfolio

(g) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $97,265,000 and the aggregate gross unrealized depreciation is approximately $4,797,000, resulting in net unrealized appreciation of approximately $92,468,000.

ADR American Depositary Receipt.

BSRM Berlin Second Regulated Market.

CVA Certificaten Van Aandelen.

NYSE New York Stock Exchange.

TSX Toronto Stock Exchange.

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at June 30, 2021:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Citibank NA	EUR	1,593	$	1,936	9/16/21	$	44
State Street Bank and Trust Co.	$	2,668	GBP	1,894	9/16/21		(49	)
State Street Bank and Trust Co.	$	1,934	JPY	212,626	9/16/21		(18	)
						$	(23	)

Futures Contract:

The Fund had the following futures contract open at June 30, 2021:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)		Unrealized Depreciation (000)
Long:
DAX Index (Germany)		8	Sep-21	EUR	—	@	$	3,682	$	(36	)

@ Amount is less than $500.

EUR — Euro

GBP — British Pound

JPY — Japanese Yen

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		57.1	%
Metals & Mining		13.0
Entertainment		11.7
Internet & Direct Marketing Retail		7.0
Semiconductors & Semiconductor Equipment		6.2
Beverages		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, 2021.

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

*** Does not include open long futures contract with a value of approximately $3,682,000 and a total unrealized depreciation of approximately $36,000. Also does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $23,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Active International Allocation Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $153,542)	$	246,084
Investment in Securities of Affiliated Issuers, at Value (Cost $1,285)		1,270
Total Investments in Securities, at Value (Cost $154,827)		247,354
Foreign Currency, at Value (Cost $95)		91
Cash from Securities Lending		2
Receivable for Fund Shares Sold		1,382
Tax Reclaim Receivable		417
Receivable for Variation Margin on Futures Contracts		256
Dividends Receivable		114
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		44
Receivable from Affiliate		—	@
Other Assets		97
Total Assets		249,757
Liabilities:
Payable for Fund Shares Redeemed		445
Payable for Advisory Fees		380
Deferred Capital Gain Country Tax		108
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		67
Collateral on Securities Loaned, at Value		56
Payable for Professional Fees		36
Payable for Shareholder Services Fees — Class A		15
Payable for Distribution and Shareholder Services Fees — Class L		4
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Custodian Fees		18
Payable for Administration Fees		17
Payable for Sub Transfer Agency Fees — Class I		10
Payable for Sub Transfer Agency Fees — Class A		5
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Transfer Agency Fees — Class IR		—	@
Other Liabilities		42
Total Liabilities		1,207
Net Assets	$	248,550
Net Assets Consist of:
Paid-in-Capital	$	145,534
Total Distributable Earnings		103,016
Net Assets	$	248,550

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Active International Allocation Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	167,344
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		8,170,179
Net Asset Value, Offering and Redemption Price Per Share	$	20.48
CLASS A:
Net Assets	$	74,451
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,565,379
Net Asset Value, Redemption Price Per Share	$	20.88
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.16
Maximum Offering Price Per Share	$	22.04
CLASS L:
Net Assets	$	5,968
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		288,933
Net Asset Value, Offering and Redemption Price Per Share	$	20.65
CLASS C:
Net Assets	$	748
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		36,361
Net Asset Value, Offering and Redemption Price Per Share	$	20.57
CLASS IS:
Net Assets	$	24
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,150
Net Asset Value, Offering and Redemption Price Per Share	$	20.50
CLASS IR:
Net Assets	$	15
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		735
Net Asset Value, Offering and Redemption Price Per Share	$	20.50
⁽¹⁾ Including: Securities on Loan, at Value:	$	6,172

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Active International Allocation Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $204 of Foreign Taxes Withheld)	$	1,621
Dividends from Securities of Affiliated Issuers (Note G)		—	@
Total Investment Income		1,621
Expenses:
Advisory Fees (Note B)		767
Shareholder Services Fees — Class A (Note D)		90
Distribution and Shareholder Services Fees — Class L (Note D)		22
Distribution and Shareholder Services Fees — Class C (Note D)		3
Administration Fees (Note C)		94
Sub Transfer Agency Fees — Class I		42
Sub Transfer Agency Fees — Class A		25
Sub Transfer Agency Fees — Class L		2
Sub Transfer Agency Fees — Class C		—	@
Professional Fees		62
Registration Fees		34
Custodian Fees (Note F)		26
Shareholder Reporting Fees		14
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Transfer Agency Fees — Class IR (Note E)		1
Pricing Fees		4
Directors' Fees and Expenses		3
Other Expenses		11
Total Expenses		1,210
Waiver of Advisory Fees (Note B)		(13	)
Rebate from Morgan Stanley Affiliate (Note G)		(10	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(4	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Net Expenses		1,180
Net Investment Income		441
Realized Gain (Loss):
Investments Sold		18,488
Investments in Affiliates		(10	)
Foreign Currency Forward Exchange Contracts		31
Foreign Currency Translation		(2	)
Futures Contracts		1
Options Written		(3,753	)
Net Realized Gain		14,755
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $108)		703
Investments in Affiliates		49
Foreign Currency Forward Exchange Contracts		(74	)
Foreign Currency Translation		(33	)
Futures Contracts		(36	)
Options Written		1,291
Net Change in Unrealized Appreciation (Depreciation)		1,900
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		16,655
Net Increase in Net Assets Resulting from Operations	$	17,096

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Active International Allocation Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	441		$	223
Net Realized Gain		14,755			1,228
Net Change in Unrealized Appreciation (Depreciation)		1,900			49,406
Net Increase in Net Assets Resulting from Operations		17,096			50,857
Dividends and Distributions to Shareholders:
Class I		—			(57	)
Class A		—			(26	)
Class L		—			(2	)
Class C		—			(—	@)
Class IS		—			(—	@)
Class IR		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(85	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		41,045			13,746
Distributions Reinvested		—			57
Redeemed		(31,291	)		(28,630	)
Class A:
Subscribed		7,716			5,120
Distributions Reinvested		—			26
Redeemed		(7,561	)		(9,666	)
Class L:
Exchanged		—			334
Distributions Reinvested		—			2
Redeemed		(154	)		(637	)
Class C:
Subscribed		582			83
Distributions Reinvested		—			—	@
Redeemed		(4	)		(5	)
Class IS:
Subscribed		13			—
Distributions Reinvested		—			—	@
Redeemed		(4	)		—
Class IR:
Distributions Reinvested		—			—	@
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		10,342			(19,570	)
Total Increase in Net Assets		27,438			31,202
Net Assets:
Beginning of Period		221,112			189,910
End of Period	$	248,550		$	221,112

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Active International Allocation Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		2,063			915
Shares Issued on Distributions Reinvested		—			3
Shares Redeemed		(1,568	)		(1,939	)
Net Increase (Decrease) in Class I Shares Outstanding		495			(1,021	)
Class A:
Shares Subscribed		381			323
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(373	)		(672	)
Net Increase (Decrease) in Class A Shares Outstanding		8			(348	)
Class L:
Shares Exchanged		—			29
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(8	)		(44	)
Net Decrease in Class L Shares Outstanding		(8	)		(15	)
Class C:
Shares Subscribed		29			4
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		(—	@@)
Net Increase in Class C Shares Outstanding		29			4
Class IS:
Shares Subscribed		1			—
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		—
Net Increase in Class IS Shares Outstanding		—	@@		—	@@
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Active International Allocation Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.03		$	14.59		$	12.07		$	14.46		$	11.83		$	12.20
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.04			0.16			0.23			0.19			0.26
Net Realized and Unrealized Gain (Loss)		1.40			4.41			2.54			(2.41	)		2.74			(0.34	)
Total from Investment Operations		1.45			4.45			2.70			(2.18	)		2.93			(0.08	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.18	)		(0.21	)		(0.30	)		(0.29	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	20.48		$	19.03		$	14.59		$	12.07		$	14.46		$	11.83
Total Return⁽⁴⁾		7.62	%⁽⁶⁾		30.48	%		22.41	%		(15.14	)%		24.76	%		(0.67	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	167,344		$	146,087		$	126,860		$	119,925		$	155,550		$	169,589
Ratio of Expenses Before Expense Limitation		0.92	%⁽⁷⁾		1.02	%		0.97	%		0.97	%		1.14	%		0.94	%
Ratio of Expenses After Expense Limitation		0.89	%⁽⁵⁾⁽⁷⁾		0.89	%⁽⁵⁾		0.89	%⁽⁵⁾		0.88	%⁽⁵⁾		0.88	%⁽⁵⁾		0.76	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.89	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income		0.48	%⁽⁵⁾⁽⁷⁾		0.24	%⁽⁵⁾		1.22	%⁽⁵⁾		1.67	%⁽⁵⁾		1.44	%⁽⁵⁾		2.18	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.01	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		19	%⁽⁶⁾		37	%		34	%		43	%		22	%		40	%

(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 0.13% higher and the Ratio of Net Investment Income would have been 0.13% lower had the custodian not reimbursed the Fund.

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

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

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

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

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Active International Allocation Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.43		$	14.94		$	12.36		$	14.79		$	12.10		$	12.47
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.02			(0.01	)		0.11			0.19			0.14			0.21
Net Realized and Unrealized Gain (Loss)		1.43			4.51			2.61			(2.46	)		2.80			(0.34	)
Total from Investment Operations		1.45			4.50			2.72			(2.27	)		2.94			(0.13	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.14	)		(0.16	)		(0.25	)		(0.24	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	20.88		$	19.43		$	14.94		$	12.36		$	14.79		$	12.10
Total Return⁽⁴⁾		7.46	%⁽⁶⁾		30.10	%		22.00	%		(15.38	)%		24.29	%		(1.05	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	74,451		$	69,135		$	58,339		$	50,726		$	65,710		$	56,934
Ratio of Expenses Before Expense Limitation		1.19	%⁽⁷⁾		1.31	%		1.25	%		1.26	%		1.48	%		1.32	%
Ratio of Expenses After Expense Limitation		1.17	%⁽⁵⁾⁽⁷⁾		1.19	%⁽⁵⁾		1.22	%⁽⁵⁾		1.19	%⁽⁵⁾		1.23	%⁽⁵⁾		1.14	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.19	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.19	%⁽⁵⁾⁽⁷⁾		(0.06	)%⁽⁵⁾		0.82	%⁽⁵⁾		1.37	%⁽⁵⁾		1.02	%⁽⁵⁾		1.79	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.01	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		19	%⁽⁶⁾		37	%		34	%		43	%		22	%		40	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation would have been 0.10% higher and the Ratio of Net Investment Income would have been 0.10% lower had the custodian not reimbursed the Fund.

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

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

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

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

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Active International Allocation Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.27		$	14.90		$	12.32		$	14.73		$	12.04		$	12.41
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.04	)		(0.09	)		0.05			0.13			0.07			0.14
Net Realized and Unrealized Gain (Loss)		1.42			4.47			2.59			(2.46	)		2.79			(0.35	)
Total from Investment Operations		1.38			4.38			2.64			(2.33	)		2.86			(0.21	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.06	)		(0.08	)		(0.17	)		(0.16	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	20.65		$	19.27		$	14.90		$	12.32		$	14.73		$	12.04
Total Return⁽⁴⁾		7.16	%⁽⁶⁾		29.38	%		21.43	%		(15.87	)%		23.80	%		(1.68	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,968		$	5,718		$	4,644		$	4,375		$	6,463		$	6,053
Ratio of Expenses Before Expense Limitation		1.73	%⁽⁷⁾		1.86	%		1.81	%		1.76	%		2.07	%		1.93	%
Ratio of Expenses After Expense Limitation		1.71	%⁽⁵⁾⁽⁷⁾		1.74	%⁽⁵⁾		1.74	%⁽⁵⁾		1.69	%⁽⁵⁾		1.73	%⁽⁵⁾		1.74	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.74	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.35	)%⁽⁵⁾⁽⁷⁾		(0.61	)%⁽⁵⁾		0.35	%⁽⁵⁾		0.92	%⁽⁵⁾		0.54	%⁽⁵⁾		1.20	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		(0.01	)%		0.01	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		19	%⁽⁶⁾		37	%		34	%		43	%		22	%		40	%

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

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

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

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

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Active International Allocation Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017				2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.22		$	14.89		$	12.34		$	14.77		$	12.15			$	12.38
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.05	)		(0.12	)		0.00	⁽³⁾		0.09			(0.00	)⁽³⁾			0.14
Net Realized and Unrealized Gain (Loss)		1.40			4.46			2.59			(2.45	)		2.83				(0.37	)
Total from Investment Operations		1.35			4.34			2.59			(2.36	)		2.83				(0.23	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.04	)		(0.07	)		(0.21	)			—
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾			0.00	⁽³⁾
Net Asset Value, End of Period	$	20.57		$	19.22		$	14.89		$	12.34		$	14.77			$	12.15
Total Return⁽⁴⁾		7.02	%⁽⁶⁾		29.13	%		21.03	%		(16.04	)%		23.42	%	��		(1.94	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	748		$	144		$	45		$	42		$	23			$	9
Ratio of Expenses Before Expense Limitation		2.25	%⁽⁷⁾		5.66	%		7.49	%		7.18	%		20.06	%			8.58	%
Ratio of Expenses After Expense Limitation		1.99	%⁽⁵⁾⁽⁷⁾		1.99	%⁽⁵⁾		1.99	%⁽⁵⁾		1.98	%⁽⁵⁾		1.97	%⁽⁵⁾			1.99	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.99	%⁽⁵⁾		N/A			N/A			N/A				N/A
Ratio of Net Investment Income (Loss)		(0.52	)%⁽⁵⁾⁽⁷⁾		(0.81	)%⁽⁵⁾		0.03	%⁽⁵⁾		0.67	%⁽⁵⁾		(0.03	)%⁽⁵⁾			1.19	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.01	%		0.02	%		0.03	%			0.01	%
Portfolio Turnover Rate		19	%⁽⁶⁾		37	%		34	%		43	%		22	%			40	%

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

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

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

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

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Active International Allocation Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020			Period from October 31, 2019⁽¹⁾ to December 31, 2019
Net Asset Value, Beginning of Period	$	19.04		$	14.59		$	13.79
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.04			0.00	⁽³⁾
Net Realized and Unrealized Gain		1.41			4.42			0.98
Total from Investment Operations		1.46			4.46			0.98
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.18	)
Net Asset Value, End of Period	$	20.50		$	19.04		$	14.59
Total Return⁽⁴⁾		7.67	%⁽⁶⁾		30.55	%		7.15	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	24		$	14		$	11
Ratio of Expenses Before Expense Limitation		11.02	%⁽⁷⁾		21.16	%		14.33	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		0.84	%⁽⁵⁾⁽⁷⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾⁽⁷⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A%			0.84	%⁽⁵⁾		N/A%
Ratio of Net Investment Income		0.26	%⁽⁵⁾⁽⁷⁾		0.28	%⁽⁵⁾		0.18	%⁽⁵⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		19	%⁽⁶⁾		37	%		34	%

(1) Commencement of Offering.

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

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

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

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Active International Allocation Portfolio

	Class IR
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020			Period from October 31, 2019⁽¹⁾ to December 31, 2019
Net Asset Value, Beginning of Period	$	19.04		$	14.59		$	13.79
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.04			0.00	⁽³⁾
Net Realized and Unrealized Gain on Investments		1.41			4.42			0.98
Total from Investment Operations		1.46			4.46			0.98
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.18	)
Net Asset Value, End of Period	$	20.50		$	19.04		$	14.59
Total Return⁽⁴⁾		7.67	%⁽⁶⁾		30.55	%		7.15	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	15		$	14		$	11
Ratio of Expenses Before Expense Limitation		12.64	%⁽⁷⁾		20.70	%		14.33	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		0.84	%⁽⁵⁾⁽⁷⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾⁽⁷⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.84	%⁽⁵⁾		N/A
Ratio of Net Investment Income		0.52	%⁽⁵⁾⁽⁷⁾		0.29	%⁽⁵⁾		0.18	%⁽⁵⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		19	%⁽⁶⁾		37	%		34	%

(1) Commencement of Offering.

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

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

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

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty 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 Active International Allocation Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class IS and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

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.

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 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) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (6) when market quotations are not readily available, including circumstances under which the Adviser determines

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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; (7) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The 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.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	3,451	$	—	$	—		$	3,451
Airlines		2,711		—		—			2,711
Automobiles		1,214		—		—			1,214
Banks		2,126		—		—			2,126
Beverages		12,267		—		—			12,267
Biotechnology		1,633		—		—			1,633
Chemicals		7,816		—		—			7,816
Communications Equipment		2,279		—		—			2,279
Electrical Equipment		694		—		—			694
Electronic Equipment, Instruments & Components		4,154		—		—			4,154
Energy Equipment & Services		3,121		—		—			3,121
Entertainment		28,814		—		—			28,814
Food Products		4,090		—		—			4,090
Health Care Equipment & Supplies		10,751		—		—			10,751
Health Care Providers & Services		2,224		—		—			2,224
Hotels, Restaurants & Leisure		9,003		—		—			9,003
Household Durables		10,449		—		—			10,449
Household Products		535		—		—			535
Information Technology Services		7,245		—		—			7,245
Insurance		1,193		—		—			1,193
Interactive Media & Services		6,927		—		—			6,927
Internet & Direct Marketing Retail		17,213		—		—			17,213
Leisure Products		1,032		—		—			1,032
Life Sciences Tools & Services		1,978		—		—			1,978
Machinery		8,831		—		—			8,831
Metals & Mining		32,263		—		—			32,263
Oil, Gas & Consumable Fuels		2,112		—		—			2,112
Personal Products		11,344		—		—			11,344
Pharmaceuticals		12,167		—		—			12,167
Professional Services		4,654		—		—			4,654
Real Estate Management & Development		1,202		—		—	@		1,202
Semiconductors & Semiconductor Equipment		15,449		—		—			15,449
Software		2,047		—		—			2,047
Tech Hardware, Storage & Peripherals		7,472		—		—			7,472
Textiles, Apparel & Luxury Goods		5,615		—		—			5,615
Total Common Stocks		246,076		—		—	@		246,076

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Investment Company	$	1,052		$	—		$	—		$	1,052
Short-Term Investments
Investment Company		218			—			—			218
Repurchase Agreements		—			8			—			8
Total Short-Term Investments		218			8			—			226
Foreign Currency Forward Exchange Contract		—			44			—			44
Total Assets		247,346			52			—	@		247,398
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(67	)		—			(67	)
Futures Contract		(36	)		—			—			(36	)
Total Liabilities		(36	)		(67	)		—			(103	)
Total	$	247,310		$	(15	)	$	—	@	$	247,295

@ Value is less than $500.

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

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

	Common Stock (000)
Beginning Balance	$	—	@
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—	@
Realized gains (losses)		—
Ending Balance	$	—	@
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	—	@

@ Value is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

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

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

treated as ordinary income for U.S. federal income tax purposes.

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

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

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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

to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Statement of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If the Fund 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. The Fund may write call and put options on stock indexes, futures, securities or currencies it owns or in which it may invest. Writing put options tend to increase the Fund's exposure to the underlying instrument. Writing call options tend to decrease the Fund's exposure to the underlying instruments. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability. Any liability recorded is subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the net realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

As of June 30, 2021, the Fund did not have any outstanding purchased options.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of

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

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

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contract

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contract

Currency Risk

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

)

Future Contract

Variation Margin on
Future Contract

Equity Risk

(36

)(a)

Total

(103

)

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended June 30, 2021 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	31
Equity Risk	Futures Contracts		1
Currency Risk	Investments (Purchased Options)		(665	)(b)
Currency Risk	Written Options		(3,753	)
Total		$	(4,386	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(74	)
Equity Risk	Futures Contracts		(36	)
Currency Risk	Written Options		1,291
Total		$	1,181

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

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(c)	Assets(d) (000)		Liabilities(d) (000)
Foreign Currency Forward Exchange Contracts	$	44	$	(67	)

(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.

chase 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, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received (000)		Net Amount (not less than $0) (000)
Citibank NA	$	44	$	—	$	—	$	44
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)
State Street Bank and Trust Co.	$	67	$	—	$	—	$	67

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	7,887,000
Futures Contracts:
Average monthly notional value	$	19,611,000
Purchased Options:
Average monthly notional amount		17,000
Written Options:
Average monthly notional amount		20,000

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

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, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	6,172	(e)	$	—	$	(6,172	)(f)(g)	$	0

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

(f) The Fund received cash collateral of approximately $56,000, of which approximately $54,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $2,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $6,614,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining contractual maturity of those transactions as of June 30, 2021:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	56	$	—	$	—	$	—	$	56
Total Borrowings	$	56	$	—	$	—	$	—	$	56
Gross amount of recognized liabilities for securities lending transactions									$	56

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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

First $1 billion				Over $1 billion
	0.65	%			0.60	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.63% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares, 0.85% for Class IS shares and 0.85% for Class IR shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $13,000 of advisory fees were waived and approximately $7,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Company and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets.

Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Company. For such services, the

Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

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

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

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

E. 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.

F. Custodian Fees: State Street (the "Custodian") also serves as Custodian for the Company in accordance with a Custodian Agreement. The Custodian holds cash, securities

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

and other assets of the Company as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $51,346,000 and $44,825,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $10,000 relating to the Fund's investment in the Liquidity Funds.

The Fund invests in Morgan Stanley China A Share Fund, Inc., a closed-end management investment company advised by an affiliate of the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Morgan Stanley China A Share Fund, Inc. For the six months ended June 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Morgan Stanley China A Share Fund, Inc.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company/Issuer	Value December 31, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	1,074	$	36,623	$	37,479	$	—	@
Morgan Stanley China A Share Fund, Inc.		1,260		—		247		—
Total	$	2,334	$	36,623	$	37,726	$	—	@

Affiliated Investment Company/Issuer (cont'd)	Realized Gain (Loss) (000)			Change in Unrealized Appreciation (Depreciation) (000)		Value June 30, 2021 (000)
Liquidity Funds	$	—		$	—	$	218
Morgan Stanley China A Share Fund		(10	)		49		1,052
Total	$	(10	)	$	49	$	1,270

@ Value is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended June 30, 2021, the Fund did not engage in any cross-trade transactions.

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

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

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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, 2020 remains subject to examination by taxing authorities.

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

2020 Distributions Paid From: Ordinary Income (000)				2019 Distributions Paid From: Ordinary Income (000)
$	85			$	2,134

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

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

Permanent differences, primarily due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	—	@		$	(—	@)

@ Amount is less than $500.

At December 31, 2020, the Fund had no distributable earnings on a tax basis.

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $3,422,000, that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended

December 31, 2020, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $1,602,000.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2020, the Fund intends to defer to January 1, 2021 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	21			$	—

I. Credit Facility: The Company and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2021, the Fund did not have any borrowings under the Facility.

J. Other: At June 30, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 77.3%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 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, 2020, 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. 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 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.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the 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 the COVID-19 pandemic 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

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

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

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

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

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other Important Information

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

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

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

IFIAIASAN
3691814 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Advantage Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					16
Investment Advisory Agreement Approval					25
Liquidity Risk Management Program					27
U.S. Customer Privacy Notice					28
Director and Officer Information					31

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Advantage Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Advantage Portfolio Class I	$	1,000.00	$	1,085.00	$	1,020.58	$	4.39	$	4.26		0.85	%
Advantage Portfolio Class A		1,000.00		1,083.50		1,019.29		5.73		5.56		1.11
Advantage Portfolio Class L		1,000.00		1,084.60		1,020.23		4.76		4.61		0.92
Advantage Portfolio Class C		1,000.00		1,079.60		1,015.72		9.44		9.15		1.83
Advantage Portfolio Class IS		1,000.00		1,085.50		1,021.03		3.93		3.81		0.76

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Advantage Portfolio

	Shares		Value (000)
Common Stocks (97.4%)
Aerospace & Defense (2.1%)
HEICO Corp., Class A		176,414	$	21,907
Entertainment (5.3%)
Activision Blizzard, Inc.		167,125		15,950
Spotify Technology SA (a)		138,508		38,172
				54,122
Food & Staples Retailing (2.3%)
Costco Wholesale Corp.		60,042		23,757
Health Care Equipment & Supplies (5.8%)
Danaher Corp.		41,714		11,195
Intuitive Surgical, Inc. (a)		52,872		48,623
				59,818
Health Care Technology (4.9%)
Veeva Systems, Inc., Class A (a)		162,281		50,461
Industrial Conglomerates (1.0%)
Roper Technologies, Inc.		21,673		10,191
Information Technology Services (25.8%)
Adyen N.V. (Netherlands) (a)		6,021		14,711
Okta, Inc. (a)		106,532		26,066
PayPal Holdings, Inc. (a)		56,704		16,528
Shopify, Inc., Class A (Canada) (a)		42,959		62,762
Snowflake, Inc., Class A (a)		148,193		35,833
Square, Inc., Class A (a)		217,584		53,047
Twilio, Inc., Class A (a)		144,574		56,986
				265,933
Interactive Media & Services (16.3%)
Facebook, Inc., Class A (a)		44,234		15,381
IAC/InterActiveCorp (a)		145,464		22,426
Match Group, Inc. (a)		100,306		16,174
Snap, Inc., Class A (a)		391,202		26,656
Twitter, Inc. (a)		871,471		59,966
Vimeo, Inc. (a)		236,160		11,572
ZoomInfo Technologies, Inc., Class A (a)		293,850		15,330
				167,505
Internet & Direct Marketing Retail (9.5%)
Amazon.com, Inc. (a)		13,235		45,530
Chewy, Inc., Class A (a)		137,498		10,960
Farfetch Ltd., Class A (a)		353,869		17,821
Wayfair, Inc., Class A (a)		76,097		24,025
				98,336
Metals & Mining (0.3%)
Royal Gold, Inc.		22,769		2,598
Pharmaceuticals (3.2%)
Royalty Pharma PLC, Class A		540,240		22,145
Zoetis, Inc.		57,487		10,713
				32,858
Road & Rail (2.4%)
Uber Technologies, Inc. (a)		497,705		24,945

	Shares		Value (000)
Semiconductors & Semiconductor Equipment (2.5%)
ASML Holding N.V. (Netherlands)		37,538	$	25,933
Software (15.1%)
Avalara, Inc. (a)		65,197		10,549
Coupa Software, Inc. (a)		71,293		18,687
Datadog, Inc., Class A (a)		149,093		15,517
DocuSign, Inc. (a)		61,286		17,134
salesforce.com, Inc. (a)		61,793		15,094
ServiceNow, Inc. (a)		28,972		15,921
Workday, Inc., Class A (a)		97,163		23,197
Zoom Video Communications, Inc., Class A (a)		101,072		39,118
				155,217
Textiles, Apparel & Luxury Goods (0.9%)
Lululemon Athletica, Inc. (a)		26,291		9,595
Total Common Stocks (Cost $621,715)				1,003,176
Investment Company (0.3%)
Grayscale Bitcoin Trust (a) (Cost $5,707)		113,571		3,385
Short-Term Investment (3.3%)
Investment Company (3.3%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $34,365)		34,364,930		34,365
Total Investments Excluding Purchased Options (101.0%) (Cost $659,467)				1,040,926
Total Purchased Options Outstanding (0.0%) (b) (Cost $3,990)				224
Total Investments (101.0%) (Cost $665,777) (c)				1,041,150
Liabilities in Excess of Other Assets (–1.0%)				(10,482	)
Net Assets (100.0%)			$	1,030,668

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(c) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $384,313,000 and the aggregate gross unrealized depreciation is approximately $8,940,000, resulting in net unrealized appreciation of approximately $375,373,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Advantage Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
BNP Paribas	USD/CNH	CNH	7.99	Sep-21		121,426,064		121,426	$	—	@	$	734	$	(734	)
BNP Paribas	USD/CNH	CNH	7.45	Jan-22		169,591,626		169,592		70			905		(835	)
BNP Paribas	USD/CNH	CNH	7.64	Nov-21		140,421,482		140,421		14			763		(749	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		177,160,838		177,161		140			880		(740	)
Royal Bank of Scotland	USD/CNH	CNH	8.06	Jul-21		133,439,457		133,439		—	@		708		(708	)
									$	224		$	3,990	$	(3,766	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Information Technology Services		25.6	%
Other*		23.1
Interactive Media & Services		16.1
Software		14.9
Internet & Direct Marketing Retail		9.4
Health Care Equipment & Supplies		5.7
Entertainment		5.2
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Advantage Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $631,412)	$	1,006,785
Investment in Security of Affiliated Issuer, at Value (Cost $34,365)		34,365
Total Investments in Securities, at Value (Cost $665,777)		1,041,150
Foreign Currency, at Value (Cost $1)		1
Receivable for Fund Shares Sold		1,309
Receivable for Investments Sold		625
Dividends Receivable		25
Tax Reclaim Receivable		23
Receivable from Affiliate		—	@
Other Assets		145
Total Assets		1,043,278
Liabilities:
Payable for Investments Purchased		9,385
Payable for Advisory Fees		1,470
Payable for Fund Shares Redeemed		941
Due to Broker		528
Payable for Shareholder Services Fees — Class A		27
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		63
Payable for Administration Fees		64
Payable for Sub Transfer Agency Fees — Class I		42
Payable for Sub Transfer Agency Fees — Class A		4
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		4
Payable for Professional Fees		32
Payable for Custodian Fees		10
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		2
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Organization Costs for Subsidiary		3
Other Liabilities		33
Total Liabilities		12,610
Net Assets	$	1,030,668
Net Assets Consist of:
Paid-in-Capital	$	555,585
Total Distributable Earnings		475,083
Net Assets	$	1,030,668

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Advantage Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	762,086
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		16,232,448
Net Asset Value, Offering and Redemption Price Per Share	$	46.95
CLASS A:
Net Assets	$	139,147
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,056,342
Net Asset Value, Redemption Price Per Share	$	45.53
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	2.52
Maximum Offering Price Per Share	$	48.05
CLASS L:
Net Assets	$	5,334
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		114,276
Net Asset Value, Offering and Redemption Price Per Share	$	46.68
CLASS C:
Net Assets	$	79,896
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,830,025
Net Asset Value, Offering and Redemption Price Per Share	$	43.66
CLASS IS:
Net Assets	$	44,205
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		938,155
Net Asset Value, Offering and Redemption Price Per Share	$	47.12

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Advantage Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $11 of Foreign Taxes Withheld)	$	711
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		713
Expenses:
Advisory Fees (Note B)		2,979
Shareholder Services Fees — Class A (Note D)		165
Distribution and Shareholder Services Fees — Class L (Note D)		19
Distribution and Shareholder Services Fees — Class C (Note D)		370
Sub Transfer Agency Fees — Class I		347
Sub Transfer Agency Fees — Class A		67
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		23
Administration Fees (Note C)		372
Professional Fees		62
Registration Fees		51
Shareholder Reporting Fees		18
Custodian Fees (Note F)		15
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		3
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		5
Organization Costs for Subsidiary		3
Pricing Fees		2
Other Expenses		15
Total Expenses		4,528
Reimbursement of Class Specific Expenses — Class I (Note B)		(34	)
Distribution Fees — Class L Shares Waived (Note D)		(18	)
Rebate from Morgan Stanley Affiliate (Note G)		(11	)
Net Expenses		4,465
Net Investment Loss		(3,752	)
Realized Gain (Loss):
Investments Sold		51,217
Foreign Currency Translation		(3	)
Net Realized Gain		51,214
Change in Unrealized Appreciation (Depreciation):
Investments		28,056
Foreign Currency Translation		(1	)
Net Change in Unrealized Appreciation (Depreciation)		28,055
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		79,269
Net Increase in Net Assets Resulting from Operations	$	75,517

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Advantage Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(3,752	)	$	(4,226	)
Net Realized Gain		51,214			98,701
Net Change in Unrealized Appreciation (Depreciation)		28,055			270,286
Net Increase in Net Assets Resulting from Operations		75,517			364,761
Dividends and Distributions to Shareholders:
Class I		—			(31,922	)
Class A		—			(6,564	)
Class L		—			(269	)
Class C		—			(3,709	)
Class IS		—			(2,037	)
Total Dividends and Distributions to Shareholders		—			(44,501	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		191,680			287,542
Distributions Reinvested		—			30,715
Redeemed		(141,172	)		(193,112	)
Class A:
Subscribed		29,352			63,008
Distributions Reinvested		—			6,509
Redeemed		(30,589	)		(66,691	)
Class L:
Exchanged		—			6
Distributions Reinvested		—			264
Redeemed		(480	)		(1,327	)
Class C:
Subscribed		9,020			15,494
Distributions Reinvested		—			3,598
Redeemed		(6,376	)		(14,501	)
Class IS:
Subscribed		1,348			11,240
Distributions Reinvested		—			2,037
Redeemed		(1,911	)		(13,749	)
Net Increase in Net Assets Resulting from Capital Share Transactions		50,872			131,033
Total Increase in Net Assets		126,389			451,293
Net Assets:
Beginning of Period		904,279			452,986
End of Period	$	1,030,668		$	904,279

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Advantage Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		4,339			8,865
Shares Issued on Distributions Reinvested		—			726
Shares Redeemed		(3,266	)		(5,822	)
Net Increase in Class I Shares Outstanding		1,073			3,769
Class A:
Shares Subscribed		685			1,823
Shares Issued on Distributions Reinvested		—			158
Shares Redeemed		(727	)		(2,060	)
Net Decrease in Class A Shares Outstanding		(42	)		(79	)
Class L:
Shares Exchanged		—			—	@@
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(11	)		(49	)
Net Decrease in Class L Shares Outstanding		(11	)		(43	)
Class C:
Shares Subscribed		220			473
Shares Issued on Distributions Reinvested		—			91
Shares Redeemed		(156	)		(502	)
Net Increase in Class C Shares Outstanding		64			62
Class IS:
Shares Subscribed		31			275
Shares Issued on Distributions Reinvested		—			48
Shares Redeemed		(43	)		(482	)
Net Decrease in Class IS Shares Outstanding		(12	)		(159	)

* Not consolidated.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Advantage Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	43.28		$	26.06		$	20.98		$	21.45		$	17.47		$	17.40
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.15	)		(0.19	)		(0.04	)		(0.01	)		0.00	⁽⁴⁾		0.07
Net Realized and Unrealized Gain		3.82			19.64			5.61			0.87			5.57			0.42
Total from Investment Operations		3.67			19.45			5.57			0.86			5.57			0.49
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.04	)
Net Realized Gain		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.38	)
Total Distributions		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.42	)
Net Asset Value, End of Period	$	46.95		$	43.28		$	26.06		$	20.98		$	21.45		$	17.47
Total Return⁽⁵⁾		8.50	%⁽⁸⁾		74.79	%		26.60	%		3.74	%		32.06	%		2.82	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	762,086		$	656,030		$	296,843		$	156,782		$	54,002		$	42,695
Ratio of Expenses Before Expense Limitation		0.86	%⁽⁹⁾		0.89	%		0.93	%		1.01	%		1.09	%		1.15	%
Ratio of Expenses After Expense Limitation		0.85	%⁽⁶⁾⁽⁹⁾		0.84	%⁽⁶⁾		0.84	%⁽⁶⁾		0.84	%⁽⁶⁾		0.84	%⁽⁶⁾		0.84	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.84	%⁽⁶⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.69	)%⁽⁶⁾⁽⁹⁾		(0.54	)%⁽⁶⁾		(0.15	)%⁽⁶⁾		(0.02	)%⁽⁶⁾		0.02	%⁽⁶⁾		0.38	%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		26	%⁽⁸⁾		73	%		70	%		79	%		65	%		79	%

(1) Not consolidated.

(2) 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.

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

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Advantage Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	42.02		$	25.42		$	20.54		$	21.10		$	17.26		$	17.22
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.20	)		(0.28	)		(0.13	)		(0.08	)		(0.06	)		0.01
Net Realized and Unrealized Gain		3.71			19.11			5.50			0.85			5.49			0.41
Total from Investment Operations		3.51			18.83			5.37			0.77			5.43			0.42
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.38	)
Net Asset Value, End of Period	$	45.53		$	42.02		$	25.42		$	20.54		$	21.10		$	17.26
Total Return⁽⁴⁾		8.35	%⁽⁷⁾		74.27	%		26.20	%		3.37	%		31.64	%		2.47	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	139,147		$	130,176		$	80,743		$	42,959		$	23,715		$	19,850
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.21	%		1.29	%		1.39	%		1.43	%
Ratio of Expenses After Expense Limitation		1.11	%⁽⁵⁾⁽⁸⁾		1.15	%⁽⁵⁾		1.19	%⁽⁵⁾		1.17	%⁽⁵⁾		1.19	%⁽⁵⁾		1.19	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.19	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.96	)%⁽⁵⁾⁽⁸⁾		(0.84	)%⁽⁵⁾		(0.50	)%⁽⁵⁾		(0.37	)%⁽⁵⁾		(0.32	)%⁽⁵⁾		0.04	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		26	%⁽⁷⁾		73	%		70	%		79	%		65	%		79	%

(1) Not consolidated.

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

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Advantage Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	43.04		$	25.95		$	20.92		$	21.42		$	17.46		$	17.40
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.16	)		(0.21	)		(0.06	)		(0.05	)		(0.02	)		0.04
Net Realized and Unrealized Gain		3.80			19.53			5.58			0.88			5.57			0.43
Total from Investment Operations		3.64			19.32			5.52			0.83			5.55			0.47
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.03	)
Net Realized Gain		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.38	)
Total Distributions		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.41	)
Net Asset Value, End of Period	$	46.68		$	43.04		$	25.95		$	20.92		$	21.42		$	17.46
Total Return⁽⁴⁾		8.46	%⁽⁷⁾		74.65	%		26.44	%		3.61	%		31.96	%		2.72	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,334		$	5,391		$	4,363		$	3,751		$	4,077		$	3,684
Ratio of Expenses Before Expense Limitation		1.63	%⁽⁸⁾		1.66	%		1.69	%		1.82	%		1.87	%		1.85	%
Ratio of Expenses After Expense Limitation		0.92	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.98	%⁽⁵⁾		0.96	%⁽⁵⁾		0.91	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.95	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.76	)%⁽⁵⁾⁽⁸⁾		(0.64	)%⁽⁵⁾		(0.25	)%⁽⁵⁾		(0.21	)%⁽⁵⁾		(0.10	)%⁽⁵⁾		0.26	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		26	%⁽⁷⁾		73	%		70	%		79	%		65	%		79	%

(1) Not consolidated.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Advantage Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	40.44		$	24.68		$	20.10		$	20.82		$	17.16		$	17.25
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.34	)		(0.50	)		(0.29	)		(0.24	)		(0.20	)		(0.12	)
Net Realized and Unrealized Gain		3.56			18.49			5.36			0.85			5.45			0.41
Total from Investment Operations		3.22			17.99			5.07			0.61			5.25			0.29
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.38	)
Net Asset Value, End of Period	$	43.66		$	40.44		$	24.68		$	20.10		$	20.82		$	17.16
Total Return⁽⁴⁾		7.96	%⁽⁷⁾		73.10	%		25.27	%		2.64	%		30.77	%		1.71	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	79,896		$	71,419		$	42,054		$	32,706		$	11,835		$	6,376
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.93	%		2.00	%		2.10	%		2.20	%
Ratio of Expenses After Expense Limitation		1.83	%⁽⁵⁾⁽⁸⁾		1.85	%⁽⁵⁾		1.90	%⁽⁵⁾		1.88	%⁽⁵⁾		1.90	%⁽⁵⁾		1.94	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.90	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(1.67	)%⁽⁵⁾⁽⁸⁾		(1.55	)%⁽⁵⁾		(1.20	)%⁽⁵⁾		(1.08	)%⁽⁵⁾		(1.01	)%⁽⁵⁾		(0.72	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		26	%⁽⁷⁾		73	%		70	%		79	%		65	%		79	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Advantage Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	43.41		$	26.12		$	21.02		$	21.49		$	17.48		$	17.42
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.13	)		(0.16	)		(0.03	)		(0.01	)		0.01			0.08
Net Realized and Unrealized Gain		3.84			19.68			5.62			0.87			5.59			0.41
Total from Investment Operations		3.71			19.52			5.59			0.86			5.60			0.49
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.05	)
Net Realized Gain		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.38	)
Total Distributions		—			(2.23	)		(0.49	)		(1.33	)		(1.59	)		(0.43	)
Net Asset Value, End of Period	$	47.12		$	43.41		$	26.12		$	21.02		$	21.49		$	17.48
Total Return⁽⁴⁾		8.55	%⁽⁷⁾		74.93	%		26.64	%		3.74	%		32.22	%		2.79	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	44,205		$	41,263		$	28,983		$	26,601		$	17,542		$	13,273
Ratio of Expenses Before Expense Limitation		N/A			N/A			0.83	%		0.93	%		1.01	%		1.05	%
Ratio of Expenses After Expense Limitation		0.76	%⁽⁵⁾⁽⁸⁾		0.79	%⁽⁵⁾		0.80	%⁽⁵⁾		0.80	%⁽⁵⁾		0.80	%⁽⁵⁾		0.80	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.80	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.61	)%⁽⁵⁾⁽⁸⁾		(0.47	)%⁽⁵⁾		(0.10	)%⁽⁵⁾		(0.04	)%⁽⁵⁾		0.07	%⁽⁵⁾		0.46	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		26	%⁽⁷⁾		73	%		70	%		79	%		65	%		79	%

(1) Not consolidated.

(2) 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 the Class IS shares. The Ratio of Expense 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 tonet expenses or net investment income.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

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

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class IS. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

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

The Fund may, 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, Advantage Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $4,165,000 or approximately 0.40% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin within the limitations of Subchapter M of the Code and recent Internal Revenue Service ("IRS")

revenue rulings, which require that a mutual fund receive no more than ten percent of its gross income from such investments in order to receive favorable tax treatment as a regulated investment company ("RIC"). Tax treatment of the income received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

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

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	21,907	$	—	$	—	$	21,907
Entertainment		54,122		—		—		54,122
Food & Staples Retailing		23,757		—		—		23,757
Health Care Equipment & Supplies		59,818		—		—		59,818
Health Care Technology		50,461		—		—		50,461
Industrial Conglomerates		10,191		—		—		10,191
Information Technology ervices		265,933		—		—		265,933
Interactive Media & Services		167,505		—		—		167,505
Internet & Direct Marketing Retail		98,336		—		—		98,336
Metals & Mining		2,598		—		—		2,598
Pharmaceuticals		32,858		—		—		32,858

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)
Road & Rail	$	24,945	$	—	$	—	$	24,945
Semiconductors & Semiconductor Equipment		25,933		—		—		25,933
Software		155,217		—		—		155,217
Textiles, Apparel & Luxury Goods		9,595		—		—		9,595
Total Common Stocks		1,003,176		—		—		1,003,176
Call Options Purchased		—		224		—		224
Investment Company		3,385		—		—		3,385
Short-Term Investment
Investment Company		34,365		—		—		34,365
Total Assets	$	1,040,926	$	224	$	—	$	1,041,150

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

treated as ordinary income for U.S. federal income tax purposes.

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.

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:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund 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.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

224

(a)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(1,027	)(b)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(1,125	)(c)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Purchased Options	$	224	(a)	$	—

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities(a) (000)			Financial Instrument (000)		Collateral Received(e) (000)			Net Amount (not less than $0) (000)
BNP Paribas	$	84		$	—	$	(84	)	$	0
Goldman Sachs International		140			—		(140	)		0
Royal Bank of Scotland		—	@		—		(—	@)		0
Total	$	224		$	—	$	(224	)	$	0

@ Value is less than $500.

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

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

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					743,412,000

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

6. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment

income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

7. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $750 million				Next $750 million				Over $1.5 billion
	0.65	%			0.60	%			0.55	%

For the six months ended June 30, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.64% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

June 30, 2021, approximately $34,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser provides investment advisory services to the Subsidiary pursuant to the Subsidiary Investment Management Agreement (the "Agreement"). Under the Agreement, the Subsidiary will pay the Adviser at the end of each fiscal quarter, calculated by applying a quarterly rate, based on the annual rate of 0.05%, to the average daily net assets of the Subsidiary.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

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.

The Company has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.50% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares. The Distributor has agreed to waive for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimburse-

ments when they deem such action is appropriate, the 12b-1 fees on Class L shares of the Fund to the extent it exceeds 0.04% of the average daily net assets of such shares on an annualized basis. For the six months ended June 30, 2021, this waiver amounted to approximately $18,000.

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $320,494,000 and $238,249,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021, advisory fees paid were reduced by approximately $11,000 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, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	63,846			$	200,736			$	230,217			$	2

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	34,365

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

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for consolidated financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	18,463	$	26,038	$	1,435	$	6,841

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	42,371			$	16,306

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Market: 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFIADVSAN
3691995 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Asia Opportunity Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					15
Investment Advisory Agreement Approval					26
Liquidity Risk Management Program					28
U.S. Customer Privacy Notice					29
Director and Officer Information					32

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Asia Opportunity Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

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

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Asia Opportunity Portfolio Class I	$	1,000.00	$	1,005.40	$	1,019.89	$	4.92	$	4.96		0.99	%
Asia Opportunity Portfolio Class A		1,000.00		1,003.80		1,018.55		6.26		6.31		1.26
Asia Opportunity Portfolio Class C		1,000.00		1,000.30		1,014.88		9.92		9.99		2.00
Asia Opportunity Portfolio Class IS		1,000.00		1,005.70		1,020.08		4.72		4.76		0.95

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Asia Opportunity Portfolio

	Shares		Value (000)
Common Stocks (97.5%)
China (60.9%)
360 DigiTech, Inc. (a)		500,024	$	20,921
Agora, Inc. ADR (a)(b)		132,204		5,547
Alibaba Group Holding Ltd. ADR (a)		133,092		30,183
China East Education Holdings Ltd. (c)		2,964,000		4,657
China Resources Beer Holdings Co., Ltd. (c)		3,006,300		27,007
DIDI Global, Inc. ADR		1,453,321		22,063
Foshan Haitian Flavouring & Food Co., Ltd., Class A		1,785,042		35,624
Haidilao International Holding Ltd. (b)(c)		2,280,000		12,010
Huazhu Group Ltd. ADR (a)(b)		128,091		6,765
HUYA, Inc. ADR (a)(b)		1,451,576		25,620
Inner Mongolia Yili Industrial Group Co., Ltd., Class A		2,811,586		16,026
Kuaishou Technology		380,000		9,248
Kuaishou Technology (a)(b)(c)		251,700		6,315
Kweichow Moutai Co., Ltd., Class A		116,194		36,985
Meituan, Class B (a)(c)		1,357,000		55,998
New Frontier Health Corp. SPAC (a)		93,794		1,047
Shenzhou International Group Holdings Ltd. (c)		1,462,500		36,938
TAL Education Group ADR (a)		681,666		17,198
Tencent Holdings Ltd. (c)		387,000		29,109
Trip.com Group Ltd. ADR (a)		1,064,980		37,764
Tsingtao Brewery Co., Ltd. H Shares (c)		1,610,000		17,335
Weimob, Inc. (a)(c)		3,685,000		8,125
Yihai International Holding Ltd. (a)(b)(c)		900,000		6,045
				468,530
Hong Kong (4.1%)
AIA Group Ltd.		2,533,900		31,493
India (18.6%)
HDFC Bank Ltd.		1,805,202		36,378
HDFC Bank Ltd. ADR (a)		259,489		18,974
ICICI Bank Ltd. ADR (a)		2,132,055		36,458
IndusInd Bank Ltd. (a)		1,589,191		21,730
Kotak Mahindra Bank Ltd. (a)		940,108		21,575
Shree Cement Ltd. (a)		21,151		7,827
				142,942
Korea, Republic of (5.0%)
NAVER Corp.		104,083		38,587
Taiwan (7.5%)
Nien Made Enterprise Co., Ltd.		874,000		12,971
Silergy Corp.		94,000		12,786
Taiwan Semiconductor Manufacturing Co., Ltd.		1,512,000		32,289
				58,046
United States (1.4%)
Coupang, Inc. (a)		262,921		10,995
Total Common Stocks (Cost $602,963)				750,593

	Shares		Value (000)
Investment Company (0.3%)
United States (0.3%)
Grayscale Bitcoin Trust (a) (Cost $4,419)		87,751	$	2,616
Short-Term Investments (7.4%)
Securities held as Collateral on Loaned Securities (2.3%)
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		14,949,244		14,949
	Face Amount (000)
Repurchase Agreements (0.4%)
HSBC Securities USA, Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $704; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $718)	$	704		704
Merrill Lynch & Co., Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $1,971; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 12/30/21 - 8/15/43; valued at $2,010)		1,971		1,971
				2,675
Total Securities held as Collateral on Loaned Securities (Cost $17,624)				17,624
	Shares
Investment Company (5.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $39,396)		39,396,473		39,396
Total Short-Term Investments (Cost $57,020)				57,020
Total Investments (105.2%) (Cost $664,402) Including $63,071 of Securities Loaned (e)(g)				810,229
Liabilities in Excess of Other Assets (–5.2%)				(40,306	)
Net Assets (100.0%)			$	769,923

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Asia Opportunity Portfolio

The Fund had the following Derivative Contract — PIPE open at June 30, 2021:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Appreciation (000)				% of Net Assets
Altimeter Growth Corp.				Grab Holdings, Inc. (a)(d)(f)(h)(i)				$	5,732,530			12/31/21				$	304				0.04	%

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2021.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted derivative contract (excluding 144A holdings) at June 30, 2021 amounts to approximately $304,000 and represents less than 0.05% of net assets.

(e) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $182,895,000 and the aggregate gross unrealized depreciation is approximately $36,764,000, resulting in net unrealized appreciation of approximately $146,131,000.

(f) At June 30, 2021, the Fund held a fair valued derivative contract valued at approximately $304,000, representing less than 0.05% of net assets. This holding 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.

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

(h) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 573,253 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings, Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings, Inc. The investment is restricted from resale until the settlement date.

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

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		27.2	%
Banks		17.0
Internet & Direct Marketing Retail		17.0
Interactive Media & Services		10.5
Beverages		10.3
Food Products		7.3
Semiconductors & Semiconductor Equipment		5.7
Short-Term Investments		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, 2021.

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

*** Does not include an open PIPE contract with unrealized appreciation of approximately $304,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Asia Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $610,057)	$	755,884
Investment in Security of Affiliated Issuer, at Value (Cost $54,345)		54,345
Total Investments in Securities, at Value (Cost $664,402)		810,229
Foreign Currency, at Value (Cost $311)		310
Cash from Securities Lending		511
Receivable for Fund Shares Sold		1,670
Dividends Receivable		235
Receivable from Securities Lending Income		46
Receivable from Affiliate		—	@
Unrealized Appreciation on Derivative Contract — PIPE		304
Other Assets		146
Total Assets		813,451
Liabilities:
Payable for Investments Purchased		22,063
Collateral on Securities Loaned, at Value		18,135
Payable for Advisory Fees		1,477
Deferred Capital Gain Country Tax		1,192
Payable for Fund Shares Redeemed		485
Payable for Shareholder Services Fees — Class A		25
Payable for Distribution and Shareholder Services Fees — Class C		25
Payable for Administration Fees		50
Payable for Professional Fees		31
Payable for Custodian Fees		30
Payable for Organization Costs for Subsidiary		2
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		12
Total Liabilities		43,528
Net Assets	$	769,923
Net Assets Consist of:
Paid-in-Capital	$	635,378
Total Distributable Earnings		134,545
Net Assets	$	769,923

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Asia Opportunity Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	568,890
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		17,838,006
Net Asset Value, Offering and Redemption Price Per Share	$	31.89
CLASS A:
Net Assets	$	122,709
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,906,504
Net Asset Value, Redemption Price Per Share	$	31.41
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.74
Maximum Offering Price Per Share	$	33.15
CLASS C:
Net Assets	$	30,990
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,019,392
Net Asset Value, Offering and Redemption Price Per Share	$	30.40
CLASS IS:
Net Assets	$	47,334
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,481,985
Net Asset Value, Offering and Redemption Price Per Share	$	31.94
⁽¹⁾ Including: Securities on Loan, at Value:	$	63,071

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Asia Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $186 of Foreign Taxes Withheld)	$	1,966
Income from Securities Loaned — Net		477
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		2,445
Expenses:
Advisory Fees (Note B)		2,782
Shareholder Services Fees — Class A (Note D)		148
Distribution and Shareholder Services Fees — Class C (Note D)		142
Administration Fees (Note C)		278
Sub Transfer Agency Fees — Class I		124
Sub Transfer Agency Fees — Class A		37
Sub Transfer Agency Fees — Class C		6
Custodian Fees (Note F)		82
Professional Fees		58
Registration Fees		57
Shareholder Reporting Fees		11
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		5
Organization Costs for Subsidiary		2
Pricing Fees		1
Other Expenses		13
Total Expenses		3,754
Rebate from Morgan Stanley Affiliate (Note G)		(13	)
Net Expenses		3,741
Net Investment Loss		(1,296	)
Realized Loss:
Investments Sold (Net of $537 of Capital Gain Country Tax)		(4,563	)
Foreign Currency Translation		(313	)
Net Realized Loss		(4,876	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $960)		(11,447	)
Foreign Currency Translation		(1	)
Derivative Contracts — PIPE		304
Net Change in Unrealized Appreciation (Depreciation)		(11,144	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(16,020	)
Net Decrease in Net Assets Resulting from Operations	$	(17,316	)

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Asia Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(1,296	)	$	(1,593	)
Net Realized Gain (Loss)		(4,876	)		5,967
Net Change in Unrealized Appreciation (Depreciation)		(11,144	)		132,042
Net Increase (Decrease) in Net Assets Resulting from Operations		(17,316	)		136,416
Dividends and Distributions to Shareholders:
Class I		—			(3,671	)
Class A		—			(1,035	)
Class C		—			(190	)
Class IS		—			(280	)
Total Dividends and Distributions to Shareholders		—			(5,176	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		263,612			275,285
Distributions Reinvested		—			3,669
Redeemed		(47,447	)		(89,217	)
Class A:
Subscribed		56,359			60,482
Distributions Reinvested		—			1,027
Redeemed		(30,349	)		(31,767	)
Class C:
Subscribed		15,404			9,579
Distributions Reinvested		—			190
Redeemed		(2,490	)		(3,635	)
Class IS:
Subscribed		31,072			18,500
Distributions Reinvested		—			280
Redeemed		(10,001	)		(2,000	)
Net Increase in Net Assets Resulting from Capital Share Transactions		276,160			242,393
Redemption Fees		13			51
Total Increase in Net Assets		258,857			373,684
Net Assets:
Beginning of Period		511,066			137,382
End of Period	$	769,923		$	511,066

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Asia Opportunity Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		7,736			11,091
Shares Issued on Distributions Reinvested		—			118
Shares Redeemed		(1,459	)		(3,635	)
Net Increase in Class I Shares Outstanding		6,277			7,574
Class A:
Shares Subscribed		1,670			2,396
Shares Issued on Distributions Reinvested		—			33
Shares Redeemed		(914	)		(1,448	)
Net Increase in Class A Shares Outstanding		756			981
Class C:
Shares Subscribed		472			374
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(79	)		(168	)
Net Increase in Class C Shares Outstanding		393			212
Class IS:
Shares Subscribed		956			897
Shares Issued on Distributions Reinvested		—			9
Shares Redeemed		(315	)		(66	)
Net Increase in Class IS Shares Outstanding		641			840

* Not consolidated.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	31.72		$	21.02		$	14.53		$	16.92		$	9.68		$	10.03
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.05	)		(0.12	)		0.02			0.01			(0.04	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		0.22			11.16			6.47			(2.30	)		7.47			(0.10	)
Total from Investment Operations		0.17			11.04			6.49			(2.29	)		7.43			(0.13	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		—			—			(0.08	)
Net Realized Gain		—			(0.34	)		—			(0.10	)		(0.19	)		—
Paid-in-Capital		—			—			—			—			—			(0.14	)
Total Distributions		—			(0.34	)		(0.01	)		(0.10	)		(0.19	)		(0.22	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾		—
Net Asset Value, End of Period	$	31.89		$	31.72		$	21.02		$	14.53		$	16.92		$	9.68
Total Return⁽⁴⁾		0.54	%⁽⁷⁾		52.53	%		44.74	%		(13.65	)%		76.82	%		(1.34	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	568,890		$	366,758		$	83,805		$	25,479		$	15,913		$	5,405
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.28	%		1.67	%		3.10	%		5.28	%
Ratio of Expenses After Expense Limitation		1.00	%⁽⁵⁾⁽⁸⁾		1.06	%⁽⁵⁾		1.08	%⁽⁵⁾		1.09	%⁽⁵⁾		1.06	%⁽⁵⁾		1.08	%⁽⁵⁾
Ratio of Net Investment Income (Loss)		(0.28	)%⁽⁵⁾⁽⁸⁾		(0.48	)%⁽⁵⁾		0.11	%⁽⁵⁾		0.04	%⁽⁵⁾		(0.27	)%⁽⁵⁾		(0.31	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		12	%⁽⁷⁾		44	%		27	%		63	%		50	%		44	%

(1) Not consolidated.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	31.29		$	20.79		$	14.42		$	16.84		$	9.67		$	10.03
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.09	)		(0.19	)		(0.06	)		(0.04	)		(0.10	)		(0.08	)
Net Realized and Unrealized Gain (Loss)		0.21			11.03			6.42			(2.28	)		7.46			(0.09	)
Total from Investment Operations		0.12			10.84			6.36			(2.32	)		7.36			(0.17	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.05	)
Net Realized Gain		—			(0.34	)		—			(0.10	)		(0.19	)		—
Paid-in-Capital		—			—			—			—			—			(0.14	)
Total Distributions		—			(0.34	)		—			(0.10	)		(0.19	)		(0.19	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾		—
Net Asset Value, End of Period	$	31.41		$	31.29		$	20.79		$	14.42		$	16.84		$	9.67
Total Return⁽⁴⁾		0.38	%⁽⁷⁾		52.15	%		44.17	%		(13.89	)%		76.17	%		(1.67	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	122,709		$	98,559		$	45,111		$	6,930		$	2,873		$	535
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.56	%		2.05	%		3.50	%		6.36	%
Ratio of Expenses After Expense Limitation		1.26	%⁽⁵⁾⁽⁸⁾		1.34	%⁽⁵⁾		1.37	%⁽⁵⁾		1.44	%⁽⁵⁾		1.44	%⁽⁵⁾		1.44	%⁽⁵⁾
Ratio of Net Investment Loss		(0.58	)%⁽⁵⁾⁽⁸⁾		(0.76	)%⁽⁵⁾		(0.33	)%⁽⁵⁾		(0.22	)%⁽⁵⁾		(0.69	)%⁽⁵⁾		(0.78	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		12	%⁽⁷⁾		44	%		27	%		63	%		50	%		44	%

(1) Not consolidated.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	30.39		$	20.35		$	14.21		$	16.73		$	9.68		$	10.03
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.20	)		(0.36	)		(0.17	)		(0.15	)		(0.22	)		(0.14	)
Net Realized and Unrealized Gain (Loss)		0.21			10.74			6.30			(2.27	)		7.46			(0.10	)
Total from Investment Operations		0.01			10.38			6.13			(2.42	)		7.24			(0.24	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.34	)		—			(0.10	)		(0.19	)		—
Paid-in-Capital		—			—			—			—			—			(0.11	)
Total Distributions		—			(0.34	)		—			(0.10	)		(0.19	)		(0.11	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾		—
Net Asset Value, End of Period	$	30.40		$	30.39		$	20.35		$	14.21		$	16.73		$	9.68
Total Return⁽⁴⁾		0.03	%⁽⁷⁾		51.02	%		43.21	%		(14.58	)%		74.85	%		(2.44	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	30,990		$	19,042		$	8,445		$	2,582		$	431		$	10
Ratio of Expenses Before Expense Limitation		N/A			N/A			2.33	%		2.80	%		5.26	%		27.34	%
Ratio of Expenses After Expense Limitation		2.00	%⁽⁵⁾⁽⁸⁾		2.08	%⁽⁵⁾		2.14	%⁽⁵⁾		2.19	%⁽⁵⁾		2.19	%⁽⁵⁾		2.19	%⁽⁵⁾
Ratio of Net Investment Loss		(1.30	)%⁽⁵⁾⁽⁸⁾		(1.49	)%⁽⁵⁾		(0.95	)%⁽⁵⁾		(0.92	)%⁽⁵⁾		(1.51	)%⁽⁵⁾		(1.42	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		12	%⁽⁷⁾		44	%		27	%		63	%		50	%		44	%

(1) Not consolidated.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	31.76		$	21.04		$	14.54		$	16.92		$	9.68		$	10.03
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.04	)		(0.09	)		0.03			0.01			(0.02	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		0.22			11.15			6.48			(2.29	)		7.45			(0.10	)
Total from Investment Operations		0.18			11.06			6.51			(2.28	)		7.43			(0.13	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.02	)		—			—			(0.08	)
Net Realized Gain		—			(0.34	)		—			(0.10	)		(0.19	)		—
Paid-in-Capital		—			—			—			—			—			(0.14	)
Total Distributions		—			(0.34	)		(0.02	)		(0.10	)		(0.19	)		(0.22	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾		—
Net Asset Value, End of Period	$	31.94		$	31.76		$	21.04		$	14.54		$	16.92		$	9.68
Total Return⁽⁴⁾		0.57	%⁽⁷⁾		52.58	%		44.82	%		(13.59	)%		76.82	%		(1.29	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	47,334		$	26,707		$	21		$	15		$	17		$	10
Ratio of Expenses Before Expense Limitation		N/A			1.03	%		11.85	%		13.31	%		17.65	%		25.20	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		1.01	%⁽⁵⁾		1.03	%⁽⁵⁾		1.04	%⁽⁵⁾		1.04	%⁽⁵⁾		1.04	%⁽⁵⁾
Ratio of Net Investment Income (Loss)		(0.23	)%⁽⁵⁾⁽⁸⁾		(0.32	)%⁽⁵⁾		0.19	%⁽⁵⁾		0.05	%⁽⁵⁾		(0.18	)%⁽⁵⁾		(0.26	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		12	%⁽⁷⁾		44	%		27	%		63	%		50	%		44	%

(1) Not consolidated.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

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

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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

The Fund may, 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, Asia Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $3,237,000 or approximately 0.42% of the total net assets of the Fund.

by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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; 6) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Banks	$	135,115	$	—	$	—	$	135,115
Beverages		81,327		—		—		81,327
Construction Materials		7,827		—		—		7,827
Consumer Finance		20,921		—		—		20,921
Diversified Consumer Services		21,855		—		—		21,855
Entertainment		25,620		—		—		25,620
Food Products		57,695		—		—		57,695
Health Care Providers & Services		1,047		—		—		1,047
Hotels, Restaurants & Leisure		18,775		—		—		18,775
Household Durables		12,971		—		—		12,971
Insurance		31,493		—		—		31,493
Interactive Media & Services		74,011		9,248		—		83,259
Internet & Direct Marketing Retail		134,940		—		—		134,940
Road & Rail		22,063		—		—		22,063
Semiconductors & Semiconductor Equipment		45,075		—		—		45,075
Software		13,672		—		—		13,672
Textiles, Apparel & Luxury Goods		36,938		—		—		36,938
Total Common Stocks		741,345		9,248		—		750,593

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Investment Company	$	2,616	$	—	$	—	$	2,616
Short-Term Investments
Investment Company		54,345		—		—		54,345
Repurchase Agreements		—		2,675		—		2,675
Total Short-Term Investments		54,345		2,675		—		57,020
Derivative Contract — PIPE		—		—		304		304
Total Assets	$	798,306	$	11,923	$	304	$	810,533

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:

	Derivative Contract — PIPE (000)
Beginning Balance	$	—
Purchases		—
Sales		—
PIPE transactions		304
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	304
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	304

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, 2021:

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

PIPE

304

Market Implied

Discount for Lack of
Marketability and
Transaction Risk

10.0

Decrease

* Amount is indicative of the weighted average.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

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

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

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.

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

5. Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. 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:

transactions typically involve the purchase of securities directly from a publicly traded company or its affiliates in a private placement transaction, typically at a discount to the market price of the company's securities. The Fund's PIPE investment represents an unfunded subscription agreement in a private investment in public equity. The Fund will earmark or segregate cash or liquid assets or establish a segregated account on the Fund's books in which it will continually maintain cash or cash equivalents or other liquid portfolio securities equal in value to commitments to purchase securities on a forward commitment basis.

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Appreciation on
Derivative Contract — PIPE

Equity Risk

304

The following table sets forth by primary risk exposure the Fund's change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended June 30, 2021 in accordance with ASC 815:

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Derivative Contract — PIPE	$	304

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities(a) (000)
Derivative Contract — PIPE	$	304	$	—

(a) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Derivative Contract — PIPE:
Average monthly notional amount				$	5,733,000

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, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	63,071	(b)	$	—	$	(63,071	)(c)(d)	$	0

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

(c) The Fund received cash collateral of approximately $18,135,000, of which approximately $17,624,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $511,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $48,409,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated Portfolio of Investments.

(d) 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.

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	$	18,135	$	—	$	—	$	—	$	18,135
Total Borrowings	$	18,135	$	—	$	—	$	—	$	18,135
Gross amount of recognized liabilities for securities lending transactions									$	18,135

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

8. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class IS shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

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

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

11. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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

First $750 million				Next $750 million				Over $1.5 billion
	0.80	%			0.75	%			0.70	%

For the six months ended June 30, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.80% of the Fund's average daily net assets.

Effective March 5, 2021, the Adviser has entered into a Sub-Advisory Agreement with the Sub-Adviser, a wholly-owned subsidiary of Morgan Stanley. The Sub-Adviser provides the Fund with advisory services subject to the overall supervision of the Adviser and the Fund's Officers and Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $387,946,000 and $75,604,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, 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, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	52,775			$	182,667			$	181,097			$	2

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	54,345

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	3,766	$	1,410	$	37	$	—

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.

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	—			$	4,138

During the year ended December 31, 2020, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $2,541,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

Unless and until an acquisition is completed, a SPAC generally invests its assets (less a portion retained to cover expenses) in U.S. government securities, money market securities and cash.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

below a set threshold, the company may have to issue additional stock at a significantly reduced price, which may dilute the value of the Fund's investment. Shares in PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restricted period can last many months. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 higher than its peer group average and total expense ratio were higher than but close to its peer group averages. After discussion, the Board concluded that the Fund's (i) performance and total expense ratio were competitive with its peer group average 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.

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management 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

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

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

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

IFIASOPPSAN
3692037 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

China Equity Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					18
Liquidity Risk Management Program					20
U.S. Customer Privacy Notice					21
Director and Officer Information					24

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

China Equity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
China Equity Portfolio Class I	$	1,000.00	$	961.70	$	1,019.04	$	5.64	$	5.81		1.16	%
China Equity Portfolio Class A		1,000.00		960.20		1,017.11		7.53		7.75		1.55
China Equity Portfolio Class C		1,000.00		956.30		1,013.39		11.16		11.48		2.30
China Equity Portfolio Class IS		1,000.00		961.70		1,019.09		5.59		5.76		1.15

* 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 181/365 (to reflect the most recent one-half year period).

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

China Equity Portfolio

	Shares		Value (000)
Common Stocks (90.1%)
Banks (6.2%)
China Construction Bank Corp. H Shares (a)		503,000	$	396
China Merchants Bank Co., Ltd. H Shares (a)		51,500		439
				835
Beverages (9.6%)
China Resources Beer Holdings Co., Ltd. (a)		42,000		378
Kweichow Moutai Co., Ltd., Class A		2,900		923
				1,301
Biotechnology (0.5%)
Innovent Biologics, Inc. (a)(b)		6,000		70
Capital Markets (2.0%)
Hong Kong Exchanges & Clearing Ltd.		4,600		274
Computers & Peripherals (0.4%)
Xiaomi Corp., Class B (a)(b)		16,600		58
Diversified Consumer Services (2.3%)
New Oriental Education & Technology Group, Inc. ADR (b)		19,770		162
TAL Education Group ADR (b)		5,670		143
				305
Electronic Equipment, Instruments & Components (2.4%)
Sunny Optical Technology Group Co., Ltd. (a)		6,200		196
Universal Scientific Industrial Shanghai Co., Ltd., Class A		50,700		132
				328
Food & Staples Retailing (0.6%)
Yixintang Pharmaceutical Group Co. Ltd., Class A		15,600		80
Food Products (3.2%)
China Mengniu Dairy Co., Ltd. (a)(b)		72,000		436
Household Durables (3.0%)
Gree Electric Appliances, Inc. of Zhuhai		25,700		207
Midea Group Co. Ltd.		18,200		201
				408
Insurance (2.2%)
Ping An Insurance Group Co. of China Ltd. H Shares (a)		30,500		299
Interactive Media & Services (19.3%)
Tencent Holdings Ltd. (a)		34,700		2,610
Internet & Direct Marketing Retail (24.9%)
Alibaba Group Holding Ltd. (a)(b)		59,128		1,675
Alibaba Group Holding Ltd. ADR (b)		578		131
JD.com, Inc., Class A (a)(b)		4,650		183
Meituan, Class B (a)(b)		22,100		912
Pinduoduo, Inc. ADR (b)		3,625		461
				3,362
Life Sciences Tools & Services (2.2%)
Wuxi Biologics Cayman, Inc. (a)(b)		16,000		293
Machinery (1.4%)
Jiangsu Hengli Hydraulic Co. Ltd.		14,000		186
Pharmaceuticals (1.9%)
Jiangsu Hengrui Medicine Co., Ltd., Class A		24,361		256

	Shares		Value (000)
Real Estate Management & Development (1.5%)
KE Holdings, Inc. ADR (b)		4,160	$	198
Textiles, Apparel & Luxury Goods (6.5%)
Li Ning Co., Ltd. (a)		22,000		268
Shenzhou International Group Holdings Ltd. (a)		23,900		604
				872
Total Common Stocks (Cost $9,555)				12,171
Short-Term Investment (8.7%)
Investment Company (8.7%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,181)		1,180,951		1,181
Total Investments (98.8%) (Cost $10,736) (c)				13,352
Other Assets in Excess of Liabilities (1.2%)				167
Net Assets (100.0%)			$	13,519

(a) Security trades on the Hong Kong exchange.

(b) Non-income producing security.

(c) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $3,156,000 and the aggregate gross unrealized depreciation is approximately $540,000, resulting in net unrealized appreciation of approximately $2,616,000.

ADR American Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Internet & Direct Marketing Retail		25.2	%
Other*		23.9
Interactive Media & Services		19.6
Beverages		9.7
Short-Term Investments		8.8
Textiles, Apparel & Luxury Goods		6.5
Banks		6.3
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.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

China Equity Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $9,555)	$	12,171
Investment in Security of Affiliated Issuer, at Value (Cost $1,181)		1,181
Total Investments in Securities, at Value (Cost $10,736)		13,352
Foreign Currency, at Value (Cost $8)		8
Receivable for Investments Sold		133
Due from Adviser		22
Receivable from Affiliate		—	@
Other Assets		42
Total Assets		13,557
Liabilities:
Payable for Professional Fees		29
Payable for Custodian Fees		1
Payable for Administration Fees		1
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		7
Total Liabilities		38
Net Assets	$	13,519
Net Assets Consist of:
Paid-in-Capital	$	10,225
Total Distributable Earnings		3,294
Net Assets	$	13,519
CLASS I:
Net Assets	$	13,443
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,010,829
Net Asset Value, Offering and Redemption Price Per Share	$	13.30
CLASS A:
Net Assets	$	13
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,014
Net Asset Value, Redemption Price Per Share	$	13.26
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.73
Maximum Offering Price Per Share	$	13.99
CLASS C:
Net Assets	$	50
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,797
Net Asset Value, Offering and Redemption Price Per Share	$	13.12
CLASS IS:
Net Assets	$	13
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,013
Net Asset Value, Offering and Redemption Price Per Share	$	13.30

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

China Equity Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $2 of Foreign Taxes Withheld)	$	44
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		44
Expenses:
Professional Fees		61
Advisory Fees (Note B)		56
Registration Fees		22
Shareholder Reporting Fees		7
Administration Fees (Note C)		6
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		3
Directors' Fees and Expenses		2
Pricing Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class I		—	@
Sub Transfer Agency Fees — Class C		—	@
Other Expenses		8
Total Expenses		170
Waiver of Advisory Fees (Note B)		(56	)
Expenses Reimbursed by Adviser (Note B)		(29	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		82
Net Investment Loss		(38	)
Realized Gain (Loss):
Investments Sold		864
Foreign Currency Translation		(1	)
Net Realized Gain		863
Change in Unrealized Appreciation (Depreciation):
Investments		(1,366	)
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(1,366	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(503	)
Net Decrease in Net Assets Resulting from Operations	$	(541	)

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

China Equity Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(38	)	$	(14	)
Net Realized Gain		863			58
Net Change in Unrealized Appreciation (Depreciation)		(1,366	)		3,092
Net Increase (Decrease) in Net Assets Resulting from Operations		(541	)		3,136
Dividends and Distributions to Shareholders:
Class I		—			(180	)
Class A		—			(—	@)
Class C		—			(—	@)
Class IS		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(180	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		10			—
Distributions Reinvested		—			180
Class A:
Subscribed		—	@		—
Distributions Reinvested		—			—	@
Class C:
Subscribed		—			35
Distributions Reinvested		—			—	@
Redeemed		—			(—	@)
Class IS:
Distributions Reinvested		—			—	@
Net Increase in Net Assets Resulting from Capital Share Transactions		10			215
Total Increase (Decrease) in Net Assets		(531	)		3,171
Net Assets:
Beginning of Period		14,050			10,879
End of Period	$	13,519		$	14,050
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1			—
Shares Issued on Distributions Reinvested		—			13
Net Increase in Class I Shares Outstanding		1			13
Class A:
Shares Subscribed		—	@@		—
Shares Issued on Distributions Reinvested		—			—	@@
Net Increase in Class A Shares Outstanding		—	@@		—	@@
Class C:
Shares Subscribed		—			3
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		—			(—	@@)
Net Increase in Class C Shares Outstanding		—			3
Class IS:
Shares Issued on Distributions Reinvested		—			—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

China Equity Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020			Period from October 31, 2019⁽¹⁾ to December 31, 2019
Net Asset Value, Beginning of Period	$	13.83		$	10.88		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.04	)		(0.01	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(0.49	)		3.14			0.90
Total from Investment Operations		(0.53	)		3.13			0.88
Distributions from and/or in Excess of:
Net Investment Income		—			(0.18	)		—
Net Asset Value, End of Period	$	13.30		$	13.83		$	10.88
Total Return⁽³⁾		(3.83	)%⁽⁶⁾		28.80	%		8.80	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,443		$	13,970		$	10,846
Ratio of Expenses Before Expense Limitation		2.37	%⁽⁷⁾		3.20	%		5.72	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		1.16	%⁽⁴⁾⁽⁷⁾		1.16	%⁽⁴⁾		1.15	%⁽⁴⁾⁽⁷⁾
Ratio of Net Investment Loss		(0.53	)%⁽⁴⁾⁽⁷⁾		(0.11	)%⁽⁴⁾		(0.98	)%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		33	%⁽⁶⁾		25	%		0	%⁽⁶⁾

(1) Commencement of Operations.

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

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

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

China Equity Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020			Period from October 31, 2019⁽¹⁾ to December 31, 2019
Net Asset Value, Beginning of Period	$	13.81		$	10.87		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.06	)		(0.06	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(0.49	)		3.13			0.89
Total from Investment Operations		(0.55	)		3.07			0.87
Distributions from and/or in Excess of:
Net Investment Income		—			(0.13	)		—
Net Asset Value, End of Period	$	13.26		$	13.81		$	10.87
Total Return⁽³⁾		(3.98	)%⁽⁶⁾		28.30	%		8.70	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13		$	(14	)	$	11
Ratio of Expenses Before Expense Limitation		14.93	%⁽⁷⁾		21.25	%		19.30	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		1.55	%⁽⁴⁾⁽⁷⁾		1.54	%⁽⁴⁾		1.54	%⁽⁴⁾⁽⁷⁾
Ratio of Net Investment Loss		(0.92	)%⁽⁴⁾⁽⁷⁾		(0.50	)%⁽⁴⁾		(1.37	)%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		33	%⁽⁶⁾		25	%		0	%⁽⁶⁾

(1) Commencement of Operations.

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

China Equity Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020			Period from October 31, 2019⁽¹⁾ to December 31, 2019
Net Asset Value, Beginning of Period	$	13.72		$	10.86		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.11	)		(0.21	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		(0.49	)		3.18			0.90
Total from Investment Operations		(0.60	)		2.97			0.86
Distributions from and/or in Excess of:
Net Investment Income		—			(0.11	)		—
Net Asset Value, End of Period	$	13.12		$	13.72		$	10.86
Total Return⁽³⁾		(4.37	)%⁽⁶⁾		27.38	%		8.60	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	50		$	52		$	11
Ratio of Expenses Before Expense Limitation		6.70	%⁽⁷⁾		13.32	%		20.07	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		2.30	%⁽⁴⁾⁽⁷⁾		2.29	%⁽⁴⁾		2.29	%⁽⁴⁾⁽⁷⁾
Ratio of Net Investment Loss		(1.67	)%⁽⁴⁾⁽⁷⁾		(1.66	)%⁽⁴⁾		(2.12	)%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		33	%⁽⁶⁾		25	%		0	%⁽⁶⁾

(1) Commencement of Operations.

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

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

China Equity Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020			Period from October 31, 2019⁽¹⁾ to December 31, 2019
Net Asset Value, Beginning of Period	$	13.83		$	10.88		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.04	)		(0.01	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(0.49	)		3.14			0.90
Total from Investment Operations		(0.53	)		3.13			0.88
Distributions from and/or in Excess of:
Net Investment Income		—			(0.18	)		—
Net Asset Value, End of Period	$	13.30		$	13.83		$	10.88
Total Return⁽³⁾		(3.83	)%⁽⁶⁾		28.82	%		8.80	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13		$	14		$	11
Ratio of Expenses Before Expense Limitation		14.61	%⁽⁷⁾		20.92	%		19.05	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		1.15	%⁽⁴⁾⁽⁷⁾		1.14	%⁽⁴⁾		1.14	%⁽⁴⁾⁽⁷⁾
Ratio of Net Investment Loss		(0.53	)%⁽⁴⁾⁽⁷⁾		(0.10	)%⁽⁴⁾		(0.97	)%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		33	%⁽⁶⁾		25	%		0	%⁽⁶⁾

(1) Commencement of Operations.

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

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

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) 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.

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Banks	$	835	$	—	$	—	$	835
Beverages		1,301		—		—		1,301
Biotechnology		70		—		—		70
Capital Markets		274		—		—		274
Computers & Peripherals		58		—		—		58
Diversified Consumer Services		305		—		—		305
Electronic Equipment, Instruments & Components		328		—		—		328
Food & Staples Retailing		80		—		—		80
Food Products		436		—		—		436
Household Durables		408		—		—		408
Insurance		299		—		—		299

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Interactive Media & Services	$	2,610	$	—	$	—	$	2,610
Internet & Direct Marketing Retail		3,362		—		—		3,362
Life Sciences Tools & Services		293		—		—		293
Machinery		186		—		—		186
Pharmaceuticals		256		—		—		256
Real Estate Management & Development		198		—		—		198
Textiles, Apparel & Luxury Goods		872		—		—		872
Total Common Stocks		12,171		—		—		12,171
Short-Term Investment Investment Company		1,181		—		—		1,181
Total Assets	$	13,352	$	—	$	—	$	13,352

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.

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. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class IS shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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.

such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $56,000 of advisory fees were waived and approximately $32,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has entered into a Sub-Advisory Agreement with the Sub-Adviser, a wholly-owned subsidiary of Morgan Stanley. The Sub-Adviser provides the Fund with advisory services subject to the overall supervision of the Adviser and the Fund's Officers and Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

providing shareholder support services to investors who purchase Class A and Class C shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $4,374,000 and $5,317,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	415			$	2,955			$	2,189			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	1,181

@ Amount is less than $500.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the two-year period ended December 31, 2020 remains subject to examination by taxing authorities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

2020 Distributions Paid From:					2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)			Ordinary Income (000)		Long-Term Capital Gain (000)
$	180	$	—	��	$	—	$	—

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	240			$	18

J. Other: At June 30, 2021, the Fund did not have record owners of 10% or greater.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 and the period since the end of October 2019, the month of the Fund's inception. 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 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management 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

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

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

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

IFICEQSAN
3694623 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					10
Consolidated Statement of Operations					11
Consolidated Statements of Changes in Net Assets					12
Consolidated Financial Highlights					13
Notes to Consolidated Financial Statements					17
Investment Advisory Agreement Approval					29
Liquidity Risk Management Program					31
U.S. Customer Privacy Notice					32
Director and Officer Information					35

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Counterpoint Global Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Counterpoint Global Portfolio Class I	$	1,000.00	$	1,156.20	$	1,019.59	$	5.61	$	5.26		1.05	%
Counterpoint Global Portfolio Class A		1,000.00		1,154.00		1,017.85		7.48		7.00		1.40
Counterpoint Global Portfolio Class C		1,000.00		1,150.00		1,014.13		11.46		10.74		2.15
Counterpoint Global Portfolio Class IS		1,000.00		1,156.60		1,019.84		5.35		5.01		1.00

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Counterpoint Global Portfolio

	Shares		Value (000)
Common Stocks (92.0%)
Argentina (0.1%)
Globant SA (a)		78	$	17
Australia (0.6%)
Afterpay Ltd. (a)		457		41
Brookfield Infrastructure Partners LP		1,500		83
Redbubble Ltd. (a)		10,362		28
Xero Ltd. (a)		368		38
				190
Brazil (0.1%)
B3 SA — Brasil Bolsa Balcao		1,170		4
Magazine Luiza SA		2,509		11
				15
Canada (4.8%)
AbCellera Biologics, Inc. (a)		443		10
Brookfield Asset Management, Inc., Class A		1,791		91
Canada Goose Holdings, Inc. (a)		2,857		125
Canadian National Railway Co.		226		24
Colliers International Group, Inc.		983		110
Constellation Software, Inc.		91		138
FirstService Corp.		177		30
Shopify, Inc., Class A (a)		587		858
Topicus.com, Inc. (a)		319		23
				1,409
China (2.5%)
360 DigiTech, Inc. ADR (a)		325		14
Agora, Inc. ADR (a)		45		2
Alibaba Group Holding Ltd. ADR (a)		412		93
China East Education Holdings Ltd. (a)(b)		3,000		5
DIDI Global, Inc. ADR (a)		2,642		38
Foshan Haitian Flavouring & Food Co., Ltd., Class A		6,838		136
Haidilao International Holding Ltd. (b)		2,000		11
Huazhu Group Ltd. ADR (a)		41		2
HUYA, Inc. ADR (a)		1,159		20
Inner Mongolia Yili Industrial Group Co., Ltd., Class A		900		5
Kuaishou Technology (a)(b)		600		15
Meituan, Class B (a)(b)		3,600		149
New Frontier Health Corp. SPAC (a)		1,068		12
Shenzhou International Group Holdings Ltd. (b)		900		23
TAL Education Group ADR (a)		4,228		107
Tencent Holdings Ltd. (b)		600		45
Trip.com Group Ltd. ADR (a)		1,974		70
Weimob, Inc. (a)(b)		1,000		2
				749
Denmark (1.7%)
Chr Hansen Holding A/S		810		73
DSV Panalpina A/S		1,760		410
Novo Nordisk A/S Series B		66		6
				489

	Shares		Value (000)
Finland (0.1%)
Revenio Group Oyj		518	$	39
France (2.5%)
Christian Dior SE		143		115
Dassault Systemes SE		219		53
EssilorLuxottica SA		109		20
Hermes International		303		441
L'Oreal SA (BSRM)		68		30
Pernod Ricard SA		259		58
Remy Cointreau SA		164		34
				751
Germany (0.4%)
Adidas AG		159		59
HelloFresh SE (a)		354		35
Puma SE		102		12
				106
Hong Kong (0.3%)
AIA Group Ltd.		7,200		89
India (1.8%)
HDFC Bank Ltd. ADR (a)		6,227		455
ICICI Bank Ltd. ADR (a)		3,773		65
				520
Israel (0.4%)
Global-e Online Ltd. (a)		580		33
IronSource Ltd., Class A (a)(c)		5,141		49
Monday.com Ltd. (a)		216		49
				131
Italy (1.2%)
Brunello Cucinelli SpA (a)		354		21
Davide Campari-Milano N.V.		4,962		66
Moncler SpA		3,907		264
				351
Japan (1.1%)
BASE, Inc. (a)		2,100		32
Change, Inc. (a)		700		19
Demae-Can Co., Ltd. (a)		1,500		21
Freee KK (a)		300		28
Keyence Corp.		300		151
Mercari, Inc. (a)		500		26
Pigeon Corp.		2,200		62
				339
Korea, Republic of (0.2%)
NAVER Corp.		200		74
Mexico (0.1%)
Grupo Aeroportuario del Sureste SAB de CV, Class B (a)		1,175		22
Netherlands (2.4%)
Adyen N.V. (a)		140		342
ASML Holding N.V.		269		185

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

	Shares		Value (000)
Netherlands (cont'd)
ASML Holding N.V. (Registered)		248	$	171
JDE Peet's N.V. (a)		433		16
Just Eat Takeaway.com N.V (a)		77		7
				721
Norway (0.0%) (d)
Kahoot! ASA (a)		825		6
Poland (0.4%)
Dino Polska SA (a)		1,519		111
Russia (0.0%) (d)
Yandex N.V., Class A (a)		41		3
Singapore (2.9%)
Sea Ltd. ADR (a)		3,141		862
Spain (0.1%)
Aena SME SA (a)		114		19
Sweden (1.7%)
AddLife AB, Class B		4,735		146
Evolution AB		1,418		224
Kinnevik AB, Class B (a)		1,593		64
Olink Holding AB ADR (a)		520		18
Vitrolife AB		1,310		54
				506
Switzerland (0.5%)
Kuehne & Nagel International AG (Registered)		191		65
Straumann Holding AG (Registered)		53		85
				150
Taiwan (0.5%)
Taiwan Semiconductor Manufacturing Co., Ltd.		7,000		149
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		89		11
				160
United Kingdom (3.0%)
Abcam PLC (a)		399		8
Abcam PLC ADR (a)		936		18
Angle PLC (a)		39,023		74
ASOS PLC (a)		936		64
Babcock International Group PLC (a)		12,287		49
Deliveroo PLC (a)		18,859		75
Diageo PLC		970		46
Fevertree Drinks PLC		630		22
Intertek Group PLC		200		15
Rentokil Initial PLC		7,146		49
Rightmove PLC		10,439		94
Victoria PLC (a)		24,703		366
				880
United States (62.6%)
10X Genomics, Inc., Class A (a)		323		63
23andMe Holding Co. (a)(c)		1,186		13
4D Molecular Therapeutics, Inc. (a)		397		10
ABG Acquisition Corp. I, Class A SPAC (a)		797		8
Activision Blizzard, Inc.		47		4
Adobe, Inc. (a)		210		123

	Shares		Value (000)
Affirm Holdings, Inc. (a)		196	$	13
Agilon health, Inc. (a)		5,125		208
Airbnb, Inc., Class A (a)		9		1
Ajax I, Class A SPAC (a)		5,600		56
Alignment Healthcare, Inc. (a)		734		17
Allogene Therapeutics, Inc. (a)		361		9
Alnylam Pharmaceuticals, Inc. (a)		169		29
Alphabet, Inc., Class C (a)		51		128
Altimeter Growth Corp., Class A SPAC (a)		12,681		148
Amazon.com, Inc. (a)		85		292
American Tower Corp. REIT		17		5
Anaplan, Inc. (a)		647		34
ANSYS, Inc. (a)		7		2
Anterix, Inc. (a)		1,466		88
Appfolio, Inc., Class A (a)		1,188		168
Appian Corp. (a)		1,645		227
ATAI Life Sciences N.V. (a)		1,084		20
AutoZone, Inc. (a)		2		3
Avalara, Inc. (a)		18		3
Axon Enterprise, Inc. (a)		1,257		222
Ball Corp.		95		8
Beam Therapeutics, Inc. (a)		84		11
Berkshire Hathaway, Inc., Class B (a)		25		7
Big Sky Growth Partners, Inc. (Units) SPAC (a)(e)		1,681		17
Bill.Com Holdings, Inc. (a)		61		11
BowX Acquisition Corp., Class A SPAC (a)		3,438		40
Brookfield Asset Management Reinsurance Partners Ltd., Class A (a)		12		1
C3.ai, Inc., Class A (a)		573		36
C4 Therapeutics, Inc. (a)		249		9
Cadence Design Systems, Inc. (a)		21		3
Cardlytics, Inc. (a)		1,913		243
Carvana Co. (a)		1,638		494
Century Therapeutics, Inc. (a)		359		11
Chegg, Inc. (a)		26		2
Chewy, Inc., Class A (a)		35		3
Cintas Corp.		8		3
Clear Secure, Inc., Class A (a)		964		30
Cloudflare, Inc., Class A (a)		3,814		404
CM Life Sciences II, Inc. (Units) SPAC (a)(e)		517		7
CM Life Sciences III, Inc. (Units) SPAC (a)(e)		330		4
Colgate-Palmolive Co.		49		4
Confluent, Inc., Class A (a)		183		9
Copart, Inc. (a)		32		4
CoStar Group, Inc. (a)		50		4
Costco Wholesale Corp.		202		80
Coupa Software, Inc. (a)		621		163
Coupang, Inc. (a)		7,315		306
Covetrus, Inc. (a)		20,253		547
Credit Acceptance Corp. (a)		173		79
Cricut, Inc., Class A (a)		5,448		232
Crowdstrike Holdings, Inc., Class A (a)		18		5
Danaher Corp.		110		30

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

	Shares		Value (000)
United States (cont'd)
Datadog, Inc., Class A (a)		432	$	45
Desktop Metal, Inc., Class A (a)		3,062		35
DexCom, Inc. (a)		10		4
Digital Transformation Opportunities Corp. (Units) SPAC (a)(e)		327		3
DocuSign, Inc. (a)		33		9
Domino's Pizza, Inc.		9		4
DoorDash, Inc., Class A (a)		1,121		200
Doximity, Inc., Class A (a)		1,085		63
Dynamics Special Purpose Corp., Class A SPAC (a)		3,129		31
Ecolab, Inc.		44		9
Editas Medicine, Inc. (a)		98		6
EPAM Systems, Inc. (a)		508		260
Equinix, Inc. REIT		3		2
Equitable Holdings, Inc.		1,221		37
EVI Industries, Inc. (a)		384		11
Exact Sciences Corp. (a)		155		19
Facebook, Inc., Class A (a)		329		114
Farfetch Ltd., Class A (a)		4,957		250
Fastenal Co.		53		3
Fastly, Inc., Class A (a)		10,685		637
Fate Therapeutics, Inc. (a)		104		9
Figs, Inc., Class A (a)		1,067		53
Floor & Decor Holdings, Inc., Class A (a)		1,144		121
GH Research PLC (a)		217		5
GoodRx Holdings, Inc., Class A (a)		517		19
Gores Holdings VI, Inc., Class A SPAC (a)		2,740		44
Graphite Bio, Inc. (a)		281		9
GTT Communications, Inc. (a)		2,676		6
Guardant Health, Inc. (a)		384		48
Guidewire Software, Inc. (a)		22		2
HealthEquity, Inc. (a)		187		15
HEICO Corp., Class A		607		75
Home Depot, Inc. (The)		14		4
IAC/InterActiveCorp (a)		40		6
IDEXX Laboratories, Inc. (a)		7		4
Illumina, Inc. (a)		17		8
Inspire Medical Systems, Inc. (a)		225		43
Intellia Therapeutics, Inc. (a)		226		37
Intercontinental Exchange, Inc.		295		35
Intuitive Surgical, Inc. (a)		263		242
JFrog Ltd. (a)		2,491		113
Latch, Inc. (a)		5,708		70
Linde PLC		62		18
Lululemon Athletica, Inc. (a)		7		3
Lyell Immunopharma, Inc. (a)		1,775		29
Marqeta, Inc., Class A (a)		712		20
Martin Marietta Materials, Inc.		52		18
Mastercard, Inc., Class A		569		208
Match Group, Inc. (a)		28		5
McDonald's Corp.		18		4
MercadoLibre, Inc. (a)		168		262

	Shares		Value (000)
MicroStrategy, Inc., Class A (a)		69	$	46
Moderna, Inc. (a)		554		130
MongoDB, Inc. (a)		203		73
MP Materials Corp. (a)		431		16
NanoString Technologies, Inc. (a)		2,367		153
NIKE, Inc., Class B		27		4
NVIDIA Corp.		10		8
Oak Street Health, Inc. (a)		153		9
Okta, Inc. (a)		1,284		314
Olo, Inc., Class A (a)		1,041		39
Opendoor Technologies, Inc. (a)		419		7
Original BARK Co. (The) (a)		1,403		16
Oscar Health, Inc., Class A (a)		562		12
Outset Medical, Inc. (a)		221		11
Overstock.com, Inc. (a)		10,034		925
Party City Holdco, Inc. (a)		25,605		239
Passage Bio, Inc. (a)		704		9
PayPal Holdings, Inc. (a)		15		4
Peloton Interactive, Inc., Class A (a)		307		38
Penumbra, Inc. (a)		64		18
Pinterest, Inc., Class A (a)		3,694		292
Porch Group, Inc. (a)		1,700		33
Privia Health Group, Inc. (a)		314		14
Procore Technologies, Inc. (a)		89		8
Progressive Corp. (The)		350		34
Qualtrics International, Inc., Class A (a)		318		12
Quotient Ltd. (a)		3,613		13
Redfin Corp. (a)		3,768		239
Relay Therapeutics, Inc. (a)		252		9
Ribbit LEAP Ltd. (Units) SPAC (a)(e)		974		11
ROBLOX Corp., Class A (a)		2,482		223
Roku, Inc. (a)		88		40
Rollins, Inc.		207		7
Roper Technologies, Inc.		61		29
Royal Gold, Inc.		504		58
Royalty Pharma PLC, Class A		12,742		522
S&P Global, Inc.		141		58
salesforce.com, Inc. (a)		599		146
Sana Biotechnology, Inc. (a)		664		13
Schrodinger, Inc. (a)		208		16
Seer, Inc. (a)		518		17
Service Corp. International		51		3
ServiceNow, Inc. (a)		282		155
Sherwin-Williams Co. (The)		16		4
Signify Health, Inc., Class A (a)		622		19
Skillz, Inc. (a)		24,016		522
Smartsheet, Inc., Class A (a)		2,479		179
Snap, Inc., Class A (a)		5,531		377
Snowflake, Inc., Class A (a)		1,386		335
Soaring Eagle Acquisition Corp. (Units) SPAC (a)(e)		7,655		81
Spotify Technology SA (a)		1,581		436
Square, Inc., Class A (a)		1,945		474
Squarespace, Inc., Class A (a)		314		19

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

	Shares		Value (000)
United States (cont'd)
Starbucks Corp.		33	$	4
Stitch Fix, Inc., Class A (a)		4,470		270
Synopsys, Inc. (a)		11		3
Talkspace, Inc. (a)(c)		1,323		10
TCV Acquisition Corp., Class A SPAC (a)		1,029		10
Teladoc Health, Inc. (a)		61		10
Texas Pacific Land Corp.		33		53
TPG Pace Tech Opportunities Corp., Class A SPAC (a)		3,021		30
Trade Desk, Inc. (The), Class A (a)		2,223		172
Twilio, Inc., Class A (a)		1,004		396
Twitter, Inc. (a)		7,320		504
Tyler Technologies, Inc. (a)		50		23
Uber Technologies, Inc. (a)		4,924		247
UiPath, Inc., Class A (a)		449		30
Unity Software, Inc. (a)		1,252		138
Upwork, Inc. (a)		681		40
USHG Acquisition Corp. (Units) SPAC (a)(e)		1,705		17
UTZ Brands, Inc.		4,036		88
Veeva Systems, Inc., Class A (a)		1,550		482
Vimeo, Inc. (a)		887		43
Visa, Inc., Class A		596		139
Vroom, Inc. (a)		3,058		128
Walt Disney Co. (The) (a)		1,085		191
Waste Connections, Inc.		230		27
Watsco, Inc.		9		3
Wayfair, Inc., Class A (a)		1,085		343
Workday, Inc., Class A (a)		27		6
Zillow Group, Inc., Class A (a)		163		20
Zillow Group, Inc., Class C (a)		1,237		151
Zoetis, Inc.		16		3
Zoom Video Communications, Inc., Class A (a)		1,032		399
ZoomInfo Technologies, Inc., Class A (a)		714		37
Zymergen, Inc. (a)		992		40
				18,504
Total Common Stocks (Cost $16,915)				27,213

	Shares		Value (000)
Preferred Stocks (0.1%)
United States (0.1%)
Overstock.com, Inc. Series A-1 (a) (Cost $1)		176	$	15
Investment Companies (0.7%)
United States (0.3%)
Grayscale Bitcoin Trust (a)		3,346		100
United Kingdom (0.4%)
Hipgnosis Songs Fund Ltd.		63,936		108
Total Investment Companies (Cost $275)				208
	No. of Warrants
Warrant (0.0%) (d)
United States (0.0%) (d)
Original Bark Co. (The) expires 5/1/26 (a) (Cost $2)		373		1
	Shares
Short-Term Investment (7.5%)
Investment Company (7.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $2,213)		2,213,315		2,213
Total Investments Excluding Purchased Options (100.3%) (Cost $19,406)				29,650
Total Purchased Options Outstanding (0.0%) (Cost $67) (d)				4
Total Investments (100.3%) (Cost $19,473) (f)(o)				29,654
Liabilities in Excess of Other Assets (–0.3%)				(93	)
Net Assets (100.0%)			$	29,561

The Fund had the following Derivative Contracts — PIPE open at June 30, 2021:

Counterparty	Referenced Obligation	Notional Amount	Settlement Date	Unrealized Appreciation (Depreciation) (000)			% of Net Assets
Altimeter Growth Corp.	Grab Holdings, Inc. (a)(c)(g)(h)(n)	$106,460	12/31/21	$6				0.02	%
Ajax I	Cazoo Holdings Limited. (a)(c)(g)(i)(n)	117,310	12/31/21	(15)				(0.05	)
CM Life Sciences, Inc.	Mount Sinai Genomics, Inc. (d/b/a Sema4) (a)(c)(g)(j)(n)	23,490	12/31/21	5				0.02
CM Life Sciences II, Inc.	SomaLogic, Inc. (a)(c)(g)(k)(n)	10,800	12/31/21	2				0.01
Good Works Acquisition Corp.	Cipher Mining Technologies, Inc. (a)(c)(g)(l)(n)	42,660	12/31/21	(11)				(0.04	)
Soaring Eagle Acquisition Corp.	Ginkgo Bioworks, Inc. (a)(c)(g)(m)(n)	58,700	12/31/21	(8)				(0.03	)
				$	(21	)		(0.07	)%

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities and derivative contracts (excluding 144A holdings) at June 30, 2021 amounts to approximately $51,000 and represents 0.2% of net assets.

(d) Amount is less than 0.05%.

(e) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(f) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $10,734,000 and the aggregate gross unrealized depreciation is approximately $574,000, resulting in net unrealized appreciation of approximately $10,160,000.

(g) At June 30, 2021, the Fund held fair valued derivative contracts valued at approximately $(21,000) representing (0.1)% of net assets. These holdings 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) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 10,646 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

(i) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 11,731 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Cazoo Holdings Limited., and Ajax I, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Ajax I, and Cazoo Holdings Limited., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Ajax I, and Cazoo Holdings Limited. The investment is restricted from resale until the settlement date.

(j) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 2,349 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Mount Sinai Genomics, Inc. (d/b/a Sema4), and CM Life Sciences, Inc., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both CM Life Sciences, Inc., and Mount Sinai Genomics, Inc. (d/b/a Sema4), and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to CM Life Sciences, Inc., and Mount Sinai Genomics, Inc. (d/b/a Sema4). The investment is restricted from resale until the settlement date.

(k) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 1,080 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between SomaLogic, Inc., and CM Life Sciences II Inc., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both CM Life Sciences II Inc., and SomaLogic, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to CM Life Sciences II Inc., and SomaLogic, Inc. The investment is restricted from resale until the settlement date.

(l) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 4,266 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Cipher Mining Technologies, Inc., and Good Works Acquisition Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Good Works Acquisition Corp., and Cipher Mining Technologies, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Good Works Acquisition Corp., and Cipher Mining Technologies, Inc. The investment is restricted from resale until the settlement date.

(m) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 5,870 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Ginkgo Bioworks, Inc., and Soaring Eagle Acquisition Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Soaring Eagle Acquisition Corp., and Ginkgo Bioworks, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Soaring Eagle Acquisition Corp., and Ginkgo Bioworks, Inc. The investment is restricted from resale until the settlement date.

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

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

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

REIT Real Estate Investment Trust.

SPAC Special Purpose Acquisition Company.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
BNP Paribas	USD/CNH	CNH	7.99	Sep-21		1,958,561		1,959	$	—	@	$	12	$	(12	)
BNP Paribas	USD/CNH	CNH	7.45	Jan-22		2,935,915		2,936		1			15		(14	)
BNP Paribas	USD/CNH	CNH	7.64	Nov-21		2,347,349		2,347		—	@		13		(13	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		3,169,691		3,170		3			16		(13	)
JP Morgan Chase Bank NA	USD/CNH	CNH	8.10	Jul-21		2,322,002		2,322		—	@		11		(11	)
									$	4		$	67	$	(63	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Other*		41.1	%
Information Technology Services		14.2
Internet & Direct Marketing Retail		11.8
Software		10.8
Entertainment		8.2
Short-Term Investments		7.5
Interactive Media & Services		6.4
Total Investments		100.0	%**

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

** Does not include open PIPE contracts with net unrealized depreciation of approximately $21,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Counterpoint Global Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $17,260)	$	27,441
Investment in Security of Affiliated Issuer, at Value (Cost $2,213)		2,213
Total Investments in Securities, at Value (Cost $19,473)		29,654
Foreign Currency, at Value (Cost $25)		25
Receivable for Investments Sold		137
Receivable for Fund Shares Sold		34
Due from Adviser		21
Tax Reclaim Receivable		3
Dividends Receivable		2
Receivable from Affiliate		—	@
Unrealized Appreciation on Derivative Contracts — PIPE		13
Other Assets		69
Total Assets		29,958
Liabilities:
Payable for Investments Purchased		209
Payable for Fund Shares Redeemed		68
Payable for Custodian Fees		40
Payable for Professional Fees		30
Bank Overdraft		2
Payable for Administration Fees		2
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Organization Costs for Subsidiary		—	@
Unrealized Depreciation on Derivative Contracts — PIPE		34
Other Liabilities		12
Total Liabilities		397
Net Assets	$	29,561
Net Assets Consist of:
Paid-in-Capital	$	15,623
Total Distributable Earnings		13,938
Net Assets	$	29,561
CLASS I:
Net Assets	$	27,685
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,259,285
Net Asset Value, Offering and Redemption Price Per Share	$	21.98
CLASS A:
Net Assets	$	1,810
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		83,039
Net Asset Value, Redemption Price Per Share	$	21.80
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.21
Maximum Offering Price Per Share	$	23.01
CLASS C:
Net Assets	$	43
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,996
Net Asset Value, Offering and Redemption Price Per Share	$	21.39
CLASS IS:
Net Assets	$	23
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,028
Net Asset Value, Offering and Redemption Price Per Share	$	22.01

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Counterpoint Global Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $4 of Foreign Taxes Withheld)	$	59
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		59
Expenses:
Advisory Fees (Note B)		108
Professional Fees		60
Custodian Fees (Note F)		47
Registration Fees		25
Administration Fees (Note C)		11
Pricing Fees		8
Sub Transfer Agency Fees — Class I		6
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class C		—	@
Shareholder Reporting Fees		6
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		3
Shareholder Services Fees — Class A (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Organization Costs for Subsidiary		—	@
Other Expenses		9
Total Expenses		290
Waiver of Advisory Fees (Note B)		(108	)
Expenses Reimbursed by Adviser (Note B)		(35	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		143
Net Investment Loss		(84	)
Realized Gain:
Investments Sold		3,044
Foreign Currency Translation		—	@
Net Realized Gain		3,044
Change in Unrealized Appreciation (Depreciation):
Investments		913
Foreign Currency Translation		(—	@)
Derivative Contracts — PIPE		(21	)
Net Change in Unrealized Appreciation (Depreciation)		892
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		3,936
Net Increase in Net Assets Resulting from Operations	$	3,852

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Counterpoint Global Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(84	)	$	(132	)
Net Realized Gain		3,044			1,836
Net Change in Unrealized Appreciation (Depreciation)		892			8,072
Net Increase in Net Assets Resulting from Operations		3,852			9,776
Dividends and Distributions to Shareholders:
Class I		—			(654	)
Class A		—			(18	)
Class C		—			(1	)
Class IS		—			(1	)
Total Dividends and Distributions to Shareholders		—			(674	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		2,974			9,074
Distributions Reinvested		—			654
Redeemed		(2,694	)		(5,076	)
Class A:
Subscribed		1,320			654
Distributions Reinvested		—			18
Redeemed		(362	)		(109	)
Class C:
Subscribed		15			7
Distributions Reinvested		—			1
Redeemed		(4	)		—
Class IS:
Distributions Reinvested		—			1
Net Increase in Net Assets Resulting from Capital Share Transactions		1,249			5,224
Total Increase in Net Assets		5,101			14,326
Net Assets:
Beginning of Period		24,460			10,134
End of Period	$	29,561		$	24,460
(1) Capital Share Transactions:
Class I:
Shares Subscribed		143			753
Shares Issued on Distributions Reinvested		—			34
Shares Redeemed		(131	)		(432	)
Net Increase in Class I Shares Outstanding		12			355
Class A:
Shares Subscribed		64			41
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(18	)		(6	)
Net Increase in Class A Shares Outstanding		46			36
Class C:
Shares Subscribed		1			—	@@
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		—
Net Increase in Class C Shares Outstanding		1			—	@@
Class IS:
Shares Issued on Distributions Reinvested		—			—	@@

* Not consolidated.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 29, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	19.01		$	11.32		$	8.46		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.06	)		(0.11	)		(0.03	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		3.03			8.34			2.89			(1.41	)
Total from Investment Operations		2.97			8.23			2.86			(1.44	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.03	)
Net Realized Gain		—			(0.54	)		—			—
Paid-in-Capital		—			—			—			(0.07	)
Total Distributions		—			(0.54	)		—			(0.10	)
Net Asset Value, End of Period	$	21.98		$	19.01		$	11.32		$	8.46
Total Return⁽⁴⁾		15.62	%⁽⁷⁾		72.70	%		33.81	%		(14.36	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	27,685		$	23,717		$	10,097		$	5,733
Ratio of Expenses Before Expense Limitation		2.11	%⁽⁸⁾		3.29	%		5.22	%		6.83	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.05	%⁽⁵⁾⁽⁸⁾		1.04	%⁽⁵⁾		1.03	%⁽⁵⁾		1.03	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.61	)%⁽⁵⁾⁽⁸⁾		(0.79	)%⁽⁵⁾		(0.25	)%⁽⁵⁾		(0.54	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		41	%⁽⁷⁾		116	%		67	%		54	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 29, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	18.89		$	11.28		$	8.47		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.09	)		(0.19	)		(0.06	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		3.00			8.34			2.87			(1.40	)
Total from Investment Operations		2.91			8.15			2.81			(1.44	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.03	)
Net Realized Gain		—			(0.54	)		—			—
Paid-in-Capital		—			—			—			(0.06	)
Total Distributions		—			(0.54	)		—			(0.09	)
Net Asset Value, End of Period	$	21.80		$	18.89		$	11.28		$	8.47
Total Return⁽⁴⁾		15.40	%⁽⁷⁾		72.25	%		33.18	%		(14.44	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,810		$	696		$	15		$	8
Ratio of Expenses Before Expense Limitation		2.54	%⁽⁸⁾		4.61	%		23.73	%		26.82	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.40	%⁽⁵⁾⁽⁸⁾		1.39	%⁽⁵⁾		1.39	%⁽⁵⁾		1.39	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.92	)%⁽⁵⁾⁽⁸⁾		(1.16	)%⁽⁵⁾		(0.62	)%⁽⁵⁾		(0.91	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		41	%⁽⁷⁾		116	%		67	%		54	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 29, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	18.60		$	11.20		$	8.47		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.17	)		(0.27	)		(0.14	)		(0.08	)
Net Realized and Unrealized Gain (Loss)		2.96			8.21			2.87			(1.40	)
Total from Investment Operations		2.79			7.94			2.73			(1.48	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.02	)
Net Realized Gain		—			(0.54	)		—			—
Paid-in-Capital		—			—			—			(0.03	)
Total Distributions		—			(0.54	)		—			(0.05	)
Net Asset Value, End of Period	$	21.39		$	18.60		$	11.20		$	8.47
Total Return⁽⁴⁾		15.00	%⁽⁷⁾		70.89	%		32.23	%		(14.80	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	43		$	27		$	11		$	8
Ratio of Expenses Before Expense Limitation		8.90	%⁽⁸⁾		18.57	%		24.53	%		27.44	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.15	%⁽⁵⁾⁽⁸⁾		2.14	%⁽⁵⁾		2.14	%⁽⁵⁾		2.14	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(1.68	)%⁽⁵⁾⁽⁸⁾		(1.90	)%⁽⁵⁾		(1.37	)%⁽⁵⁾		(1.66	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		41	%⁽⁷⁾		116	%		67	%		54	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 29, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	19.03		$	11.32		$	8.46		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.03	)		(0.10	)		(0.02	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		3.01			8.35			2.88			(1.41	)
Total from Investment Operations		2.98			8.25			2.86			(1.43	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.03	)
Net Realized Gain		—			(0.54	)		—			—
Paid-in-Capital		—			—			—			(0.08	)
Total Distributions		—			(0.54	)		—			(0.11	)
Net Asset Value, End of Period	$	22.01		$	19.03		$	11.32		$	8.46
Total Return⁽⁴⁾		15.66	%⁽⁷⁾		72.88	%		33.81	%		(14.34	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	23		$	20		$	11		$	8
Ratio of Expenses Before Expense Limitation		10.40	%⁽⁸⁾		19.31	%		23.44	%		26.39	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.00	%⁽⁵⁾⁽⁸⁾		0.99	%⁽⁵⁾		0.99	%⁽⁵⁾		0.99	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.57	)%⁽⁵⁾⁽⁸⁾		(0.74	)%⁽⁵⁾		(0.22	)%⁽⁵⁾		(0.51	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		41	%⁽⁷⁾		116	%		67	%		54	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

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

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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

The Fund may, 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, Counterpoint Global Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $118,000 or approximately 0.40% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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 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; (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;

(7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	297	$	—	$	—	$	297
Air Freight & Logistics		410		—		—		410
Banks		520		—		—		520
Beverages		226		—		—		226
Biotechnology		449		—		—		449
Capital Markets		188		—		—		188
Chemicals		144		—		—		144
Commercial Services & Supplies		139		—		—		139
Construction Materials		18		—		—		18
Consumer Finance		93		—		—		93
Containers & Packaging		8		—		—		8
Diversified Consumer Services		117		—		—		117
Diversified Financial Services		108		—		—		108
Diversified Holding Companies		303		—		—		303
Diversified Telecommunication Services		88		—		—		88

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)
Electronic Equipment, Instruments & Components	$	151	$	—	$	—	$	151
Entertainment		2,304		—		—		2,304
Equity Real Estate Investment Trusts (REITs)		7		—		—		7
Food & Staples Retailing		191		—		—		191
Food Products		245		—		—		245
Health Care Equipment & Supplies		573		—		—		573
Health Care Providers & Services		889		23		—		912
Health Care Technology		633		—		—		633
Hotels, Restaurants & Leisure		250		—		—		250
Household Durables		598		—		—		598
Household Products		66		—		—		66
Industrial Conglomerates		29		—		—		29
Information Technology Services		4,207		—		—		4,207
Insurance		136		—		—		136
Interactive Media & Services		1,908		—		—		1,908
Internet & Direct Marketing Retail		3,501		—		—		3,501
Leisure Products		38		—		—		38
Life Sciences Tools & Services		415		—		—		415
Machinery		35		—		—		35
Marine		65		—		—		65
Media		243		—		—		243
Metals & Mining		74		—		—		74
Multi-Line Retail		11		—		—		11
Multi-Utilities		83		—		—		83
Oil, Gas & Consumable Fuels		53		—		—		53
Other		204		—		—		204
Personal Products		30		—		—		30
Pharmaceuticals		536		—		—		536
Professional Services		59		—		—		59
Real Estate Management & Development		386		—		—		386
Road & Rail		309		—		—		309
Semiconductors & Semiconductor Equipment		524		—		—		524
Software		3,123		72		—		3,195
Specialty Retail		989		—		—		989
Textiles, Apparel & Luxury Goods		1,087		—		—		1,087
Trading Companies & Distributors		17		—		—		17
Transportation Infrastructure		41		—		—		41
Total Common Stocks		27,118		95		—		27,213

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Preferred Stocks
Internet & Direct Marketing Retail	$	15	$	—	$	—		$	15
Investment Companies		208		—		—			208
Warrant		1		—		—			1
Call Options Purchased		—		4		—			4
Short-Term Investment
Investment Company		2,213		—		—			2,213
Derivative Contracts — PIPE		—		—		13			13
Total Assets	$	29,555	$	99	$	13		$	29,667
Liabilities:
Derivative Contracts — PIPE		—		—		(34	)		(34	)
Total	$	29,555	$	99	$	(21	)	$	29,633

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:

	Derivative Contracts — PIPE (000)
Beginning Balance	$	—
Purchases		—
Sales		—
PIPE transactions		(21	)
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	(21	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	(21	)

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, 2021:

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Range/
Weighted Average*

Impact to
Valuation from an
Increase in Input**

PIPE

(21

)

Market Implied

Discount for Lack of
Marketability and
Transaction Risk

10.0%–25.5%/12.9%

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Private Investment in Public Equity: The Fund may acquire equity securities of an issuer that are issued through a private investment in public equity transaction, including on a when-issued basis. PIPE transactions typically involve the purchase of securities directly from a publicly traded company or its affiliates in a private placement transaction, typically at a discount to the market price of the company's securities. The Fund's PIPE investment represents an unfunded subscription agreement in a private investment in public equity. The Fund will earmark or segregate cash or liquid assets or establish a segregated account on the Fund's books in which it will continually maintain cash or cash equivalents or other liquid portfolio securities equal in value to commitments to purchase securities on a forward commitment basis.

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

$4(a)

PIPE

Unrealized Appreciation on
Derivative Contracts —
PIPE

Equity Risk

Total

Liability Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contracts —
PIPE

Equity Risk

(34

)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(15	)(b)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(22	)(c)
Equity Risk	Derivative Contracts — PIPE		(21	)
Total		$	(43	)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets (000)			Liabilities (000)
Purchased Options	$	4	(a)(d)	$	—
Derivative Contracts — PIPE		13	(e)		(34	)(e)
Total	$	17		$	(34	)

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

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

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

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

collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities(a) (000)			Financial Instrument (000)		Collateral Received (000)		Net Amount (not less than $0) (000)
BNP Paribas	$	1		$	—	$	—	$	1
Goldman Sachs International		3			—		—		3
JP Morgan Chase Bank NA		—	@		—		—		—	@
Total	$	4		$	—	$	—	$	4

@ Value is less than $500.

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

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		12,744,000
Derivative Contracts — PIPE:
Average monthly notional amount	$	339,000

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 Consolidated Portfolio of Investments.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

8. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.05% for Class I shares, 1.40% for Class A shares, 2.15% for Class C shares and 1.00% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $108,000 of advisory fees were waived and approximately $39,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $11,782,000 and $10,389,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management

investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,944			$	5,920			$	5,651			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	2,213

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for consolidated financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the three-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	442	$	232	$	—	$	—

Permanent differences, due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	—	@		$	(—	@)

@ Amount is less than $500.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	1,142			$	306

During the year ended December 31, 2020, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $88,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Unless and until an acquisition is completed, a SPAC generally invests its assets (less a portion retained to cover expenses) in U.S. government securities, money market securities and cash.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

There is a risk that if the market price of the securities drops below a set threshold, the company may have to issue additional stock at a significantly reduced price, which may dilute the value of the Fund's investment. Shares in PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restricted period can last many months. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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-year period and the period since the end of June 2018, the month of the Fund's inception. 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 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management 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

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

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

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

IFIGCPTSAN

3693645 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Developing Opportunity Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					7
Consolidated Statements of Changes in Net Assets					8
Consolidated Financial Highlights					9
Notes to Consolidated Financial Statements					13
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Developing Opportunity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Developing Opportunity Portfolio Class I	$	1,000.00	$	999.30	$	1,019.09	$	5.70	$	5.76		1.15	%
Developing Opportunity Portfolio Class A		1,000.00		997.90		1,017.90		6.89		6.95		1.39
Developing Opportunity Portfolio Class C		1,000.00		994.40		1,014.18		10.58		10.69		2.14
Developing Opportunity Portfolio Class IS		1,000.00		999.30		1,019.44		5.35		5.41		1.08

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Developing Opportunity Portfolio

	Shares		Value (000)
Common Stocks (98.9%)
Argentina (1.6%)
Globant SA (a)		24,724	$	5,419
Brazil (5.3%)
B3 SA — Brasil Bolsa Balcao		1,396,260		4,721
Magazine Luiza SA		2,997,179		12,745
				17,466
China (48.0%)
360 DigiTech, Inc. (a)		218,060		9,124
Alibaba Group Holding Ltd. ADR (a)		50,935		11,551
China East Education Holdings Ltd. (a)(b)		1,355,000		2,129
China Resources Beer Holdings Co., Ltd. (b)		762,000		6,845
DIDI Global, Inc. ADR (a)		524,346		7,909
Foshan Haitian Flavouring & Food Co., Ltd., Class A		765,982		15,287
Haidilao International Holding Ltd. (b)		661,000		3,482
HUYA, Inc. ADR (a)		548,754		9,686
Kuaishou Technology (a)(b)		209,500		5,256
Kweichow Moutai Co., Ltd., Class A		34,789		11,073
Meituan, Class B (a)(b)		646,700		26,687
New Frontier Health Corp. SPAC (a)		7,725		86
Shenzhou International Group Holdings Ltd. (b)		407,000		10,279
TAL Education Group ADR (a)		283,457		7,152
Tencent Holdings Ltd. (b)		148,100		11,140
Trip.com Group Ltd. ADR (a)		402,438		14,270
Tsingtao Brewery Co., Ltd. H Shares (b)		518,000		5,577
Yihai International Holding Ltd. (a)(b)		262,000		1,760
				159,293
India (18.3%)
HDFC Bank Ltd.		1,228,807		24,763
ICICI Bank Ltd. ADR (a)		928,335		15,875
IndusInd Bank Ltd. (a)		679,894		9,297
Kotak Mahindra Bank Ltd. (a)		312,704		7,176
Shree Cement Ltd. (a)		9,257		3,425
				60,536

	Shares		Value (000)
Korea, Republic of (5.7%)
NAVER Corp.		51,236	$	18,995
Mexico (0.8%)
Grupo Aeroportuario del Sureste SAB de CV, Class B (a)		136,760		2,518
Russia (1.2%)
Yandex N.V., Class A (a)		56,084		3,968
Taiwan (7.4%)
Nien Made Enterprise Co., Ltd.		175,000		2,597
Silergy Corp.		57,000		7,753
Taiwan Semiconductor Manufacturing Co., Ltd.		661,000		14,116
				24,466
United States (10.6%)
Coupang, Inc. (a)		115,087		4,813
EPAM Systems, Inc. (a)		27,025		13,809
MercadoLibre, Inc. (a)		10,607		16,523
				35,145
Total Common Stocks (Cost $294,261)				327,806
Investment Company (0.3%)
United States (0.3%)
Grayscale Bitcoin Trust (a) (Cost $1,951)		38,622		1,151
Short-Term Investment (3.4%)
Investment Company (3.4%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $11,380)		11,379,555		11,380
Total Investments (102.6%) (Cost $307,592) (c)(h)				340,337
Liabilities in Excess of Other Assets (–2.6%)				(8,535	)
Net Assets (100.0%)			$	331,802

The Fund had the following Derivative Contract — PIPE open at June 30, 2021:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Appreciation (000)				% of Net Assets
Altimeter Growth Corp.				Grab Holdings Inc. (a)(d)(e)(f)(g)				$	2,601,490			12/31/21				$	138				0.04	%

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $54,742,000 and the aggregate gross unrealized depreciation is approximately $21,859,000, resulting in net unrealized appreciation of approximately $32,883,000.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted derivative contract (excluding 144A holdings) at June 30, 2021 amounts to approximately $138,000 and represents less than 0.05% of net assets.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Developing Opportunity Portfolio

(e) At June 30, 2021, the Fund held a fair valued derivative contract valued at approximately $138,000 representing less than 0.05% of net assets. This holding has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 260,149 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

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

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

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		26.0	%
Internet & Direct Marketing Retail		21.7
Banks		16.8
Interactive Media & Services		11.6
Beverages		6.9
Semiconductors & Semiconductor Equipment		6.4
Information Technology Services		5.6
Food Products		5.0
Total Investments		100.0	%**

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

** Does not include an open PIPE contract with total unrealized appreciation of approximately $138,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Developing Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $296,212)	$	328,957
Investment in Security of Affiliated Issuer, at Value (Cost $11,380)		11,380
Total Investments in Securities, at Value (Cost $307,592)		340,337
Foreign Currency, at Value (Cost $303)		313
Receivable for Fund Shares Sold		539
Dividends Receivable		193
Receivable from Affiliate		—	@
Unrealized Appreciation on Derivative Contract — PIPE		138
Other Assets		121
Total Assets		341,641
Liabilities:
Payable for Investments Purchased		7,909
Deferred Capital Gain Country Tax		825
Payable for Advisory Fees		729
Payable for Fund Shares Redeemed		274
Payable for Professional Fees		29
Payable for Custodian Fees		24
Payable for Administration Fees		22
Payable for Shareholder Services Fees — Class A		4
Payable for Distribution and Shareholder Services Fees — Class C		8
Payable for Organization Costs for Subsidiary		6
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		9
Total Liabilities		9,839
Net Assets	$	331,802
Net Assets Consist of:
Paid-in-Capital	$	299,296
Total Distributable Earnings		32,506
Net Assets	$	331,802
CLASS I:
Net Assets	$	300,020
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		20,702,429
Net Asset Value, Offering and Redemption Price Per Share	$	14.49
CLASS A:
Net Assets	$	21,683
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,501,599
Net Asset Value, Redemption Price Per Share	$	14.44
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.80
Maximum Offering Price Per Share	$	15.24
CLASS C:
Net Assets	$	10,084
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		706,220
Net Asset Value, Offering and Redemption Price Per Share	$	14.28
CLASS IS:
Net Assets	$	15
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	14.50

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Developing Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $77 of Foreign Taxes Withheld)	$	721
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		722
Expenses:
Advisory Fees (Note B)		1,422
Administration Fees (Note C)		126
Sub Transfer Agency Fees — Class I		86
Sub Transfer Agency Fees — Class A		4
Sub Transfer Agency Fees — Class C		2
Shareholder Services Fees — Class A (Note D)		23
Distribution and Shareholder Services Fees — Class C (Note D)		47
Professional Fees		49
Registration Fees		49
Custodian Fees (Note F)		37
Organization Costs for Subsidiary		17
Shareholder Reporting Fees		6
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		2
Pricing Fees		1
Other Expenses		9
Total Expenses		1,885
Rebate from Morgan Stanley Affiliate (Note G)		(6	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		1,878
Net Investment Loss		(1,156	)
Realized Gain (Loss):
Investments Sold (Net of $169 of Capital Gain Country Tax)		3,233
Foreign Currency Translation		(134	)
Net Realized Gain		3,099
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $287)		(8,037	)
Foreign Currency Translation		9
Derivative Contracts — PIPE		138
Net Change in Unrealized Appreciation (Depreciation)		(7,890	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(4,791	)
Net Decrease in Net Assets Resulting from Operations	$	(5,947	)

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Developing Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Period from February 14, 2020^ to December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(1,156	)	$	(675	)
Net Realized Gain (Loss)		3,099			(945	)
Net Change in Unrealized Appreciation (Depreciation)		(7,890	)		39,957
Net Increase (Decrease) in Net Assets Resulting from Operations		(5,947	)		38,337
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		106,181			203,978
Redeemed		(36,176	)		(4,898	)
Class A:
Subscribed		14,409			11,456
Redeemed		(3,894	)		(1,392	)
Class C:
Subscribed		6,558			5,215
Redeemed		(1,891	)		(173	)
Class IS:
Subscribed		—			10
Net Increase in Net Assets Resulting from Capital Share Transactions		85,187			214,196
Redemption Fees		10			19
Total Increase in Net Assets		79,250			252,552
Net Assets:
Beginning of Period		252,552			—
End of Period	$	331,802		$	252,552
(1) Capital Share Transactions:
Class I:
Shares Subscribed		6,987			16,607
Shares Redeemed		(2,486	)		(406	)
Net Increase in Class I Shares Outstanding		4,501			16,201
Class A:
Shares Subscribed		960			922
Shares Redeemed		(269	)		(112	)
Net Increase in Class A Shares Outstanding		691			810
Class C:
Shares Subscribed		426			426
Shares Redeemed		(130	)		(16	)
Net Increase in Class C Shares Outstanding		296			410
Class IS:
Shares Subscribed		—			1

^ Commencement of Operations.

* Not consolidated.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from February 14, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.50		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.05	)		(0.10	)
Net Realized and Unrealized Gain		0.04			4.60
Total from Investment Operations		(0.01	)		4.50
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	14.49		$	14.50
Total Return⁽⁵⁾		(0.07	)%⁽⁸⁾		45.00	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	300,020		$	234,923
Ratio of Expenses Before Expense Limitation		N/A			1.41	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.15	%⁽⁶⁾⁽⁹⁾		1.14	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Loss		(0.70	)%⁽⁶⁾⁽⁹⁾		(0.87	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%⁽⁹⁾
Portfolio Turnover Rate		24	%⁽⁸⁾		18	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

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

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from February 14, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.47		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.07	)		(0.13	)
Net Realized and Unrealized Gain		0.04			4.60
Total from Investment Operations		(0.03	)		4.47
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	14.44		$	14.47
Total Return⁽⁵⁾		(0.21	)%⁽⁸⁾		44.70	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	21,683		$	11,721
Ratio of Expenses Before Expense Limitation		N/A			1.72	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.39	%⁽⁶⁾⁽⁹⁾		1.44	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Loss		(0.90	)%⁽⁶⁾⁽⁹⁾		(1.17	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%⁽⁹⁾
Portfolio Turnover Rate		24	%⁽⁸⁾		18	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from February 14, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.36		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.12	)		(0.22	)
Net Realized and Unrealized Gain		0.04			4.58
Total from Investment Operations		(0.08	)		4.36
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	14.28		$	14.36
Total Return⁽⁵⁾		(0.56	)%⁽⁸⁾		43.60	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10,084		$	5,893
Ratio of Expenses Before Expense Limitation		N/A			2.53	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		2.14	%⁽⁶⁾⁽⁹⁾		2.24	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Loss		(1.68	)%⁽⁶⁾⁽⁹⁾		(1.97	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%⁽⁹⁾
Portfolio Turnover Rate		24	%⁽⁸⁾		18	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from February 14, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.51		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.05	)		(0.07	)
Net Realized and Unrealized Gain		0.04			4.58
Total from Investment Operations		(0.01	)		4.51
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	14.50		$	14.51
Total Return⁽⁵⁾		(0.07	)%⁽⁸⁾		45.10	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15		$	15
Ratio of Expenses Before Expense Limitation		13.06	%⁽⁹⁾		17.67	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.08	%⁽⁶⁾⁽⁹⁾		1.09	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Loss		(0.64	)%⁽⁶⁾⁽⁹⁾		(0.67	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%⁽⁹⁾
Portfolio Turnover Rate		24	%⁽⁸⁾		18	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

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

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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

The Fund may, 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, Developing Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $1,435,000 or approximately 0.43% of the total net assets of the Fund.

received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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; (6) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Banks	$	57,111	$	—	$	—	$	57,111
Beverages		23,495		—		—		23,495
Capital Markets		4,721		—		—		4,721
Construction Materials		3,425		—		—		3,425
Consumer Finance		9,124		—		—		9,124
Diversified Consumer Services		9,281		—		—		9,281
Entertainment		9,686		—		—		9,686
Food Products		17,047		—		—		17,047
Health Care Providers & Services		86		—		—		86
Hotels, Restaurants & Leisure		3,482		—		—		3,482
Household Durables		2,597		—		—		2,597
Information Technology Services		19,228		—		—		19,228
Interactive Media & Services		39,359		—		—		39,359
Internet & Direct Marketing Retail		73,844		—		—		73,844
Multi-Line Retail		12,745		—		—		12,745
Road & Rail		7,909		—		—		7,909
Semiconductors & Semiconductor Equipment		21,869		—		—		21,869

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	$	10,279	$	—	$	—	$	10,279
Transportation Infrastructure		2,518		—		—		2,518
Total Common Stocks		327,806		—		—		327,806
Investment Company		1,151		—		—		1,151
Short-Term Investment
Investment Company		11,380		—		—		11,380
Derivative Contract — PIPE		—		—		138		138
Total Assets	$	340,337	$	—	$	138	$	340,475

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:

	Derivative Contract — PIPE (000)
Beginning Balance	$	—
Purchases		—
Sales		—
PIPE transaction		138
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	138
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	138

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, 2021:

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

PIPE

138

Market Implied

Discount for Lack of
Marketability and
Transaction Risk

10.0%

Decrease

* Amount is indicative of the weighted average.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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.

rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

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

4. Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of
Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Appreciation on
Derivative Contract — PIPE

Equity Risk

138

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Derivative Contract — PIPE	$	138

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities(a) (000)
Derivative Contract — PIPE	$	138	$	—

(a) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Derivative Contract — PIPE:
Average monthly notional amount				$	2,601,000

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Restricted securities are identified in the Consolidated Portfolio of Investments.

6. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class IS shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

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

9. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.90	%			0.85	%

For the six months ended June 30, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.90% of the Fund's average daily net assets.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other

than long-term U.S. Government securities and short-term investments were approximately $180,914,000 and $70,376,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $6,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	25,691			$	71,659			$	85,970			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	11,380

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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. The tax year ended December 31, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. There were no distributions paid during fiscal year 2020.

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	116			$	(116	)

At December 31, 2020, the Fund had no distributable earnings on a tax basis.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

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

Other risks of investing in SPACs include that a significant portion of the monies raised by the SPAC may be expended during the search for a target transaction; an attractive transaction may

not be identified at all (or any requisite approvals may not be obtained) and the SPAC may dissolve and be required to return any remaining monies to shareholders, causing the Fund to incur the opportunity cost of missed investment opportunities the Fund otherwise could have benefited from; a transaction once identified or effected may prove unsuccessful and an investment in the SPAC may lose value; the warrants or other rights with respect to the SPAC held by the Fund may expire worthless or may be repurchased or retired by the SPAC at an unfavorable price; and an investment in a SPAC may be diluted by additional later offerings of interests in the SPAC or by other investors exercising existing rights to purchase shares of the SPAC. In addition, a SPAC target company may have limited operating experience, a smaller size, limited product lines, markets, distribution channels and financial and managerial resources. Investing in the securities of smaller companies involves greater risk, and portfolio price volatility.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 period since the middle of February 2020, the month of the Fund's inception. 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 contractual management fee was higher than but close to the Fund's 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 performance, management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management 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

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

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

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

IFIDOSAN
3692032 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					10
Statement of Operations					12
Statements of Changes in Net Assets					13
Financial Highlights					15
Notes to Financial Statements					20
Investment Advisory Agreement Approval					29
Liquidity Risk Management Program					31
U.S. Customer Privacy Notice					32
Director and Officer Information					35

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon

President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Emerging Markets Fixed Income Opportunities Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Emerging Markets Fixed Income Opportunities Portfolio Class I	$	1,000.00	$	989.40	$	1,020.58	$	4.19	$	4.26		0.85	%
Emerging Markets Fixed Income Opportunities Portfolio Class A		1,000.00		987.40		1,018.84		5.91		6.01		1.20
Emerging Markets Fixed Income Opportunities Portfolio Class L		1,000.00		985.70		1,017.60		7.14		7.25		1.45
Emerging Markets Fixed Income Opportunities Portfolio Class C		1,000.00		982.20		1,015.12		9.58		9.74		1.95
Emerging Markets Fixed Income Opportunities Portfolio Class IS		1,000.00		988.40		1,020.73		4.04		4.11		0.82

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Emerging Markets Fixed Income Opportunities Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (90.5%)
Argentina (0.8%)
Corporate Bonds (0.5%)
Pampa Energia SA, 9.13%, 4/15/29 (a)	$	150	$	138
Telecom Argentina SA,
8.00%, 7/18/26 (a)		50		47
				185
Sovereign (0.3%)
Argentine Republic Government International Bond,
0.13%, 7/9/30 - 7/9/35 (b)		359		120
1.00%, 7/9/29		24		9
				129
				314
Armenia (1.2%)
Corporate Bond (0.7%)
Ardshinbank CJSC Via Dilijan Finance BV,
6.50%, 1/28/25 (a)		270		270
Sovereign (0.5%)
Republic of Armenia International Bond,
3.95%, 9/26/29		200		198
				468
Brazil (5.6%)
Corporate Bonds (2.1%)
Iochpe-Maxion Austria GmbH/Maxion Wheels de Mexico S de RL de CV,
5.00%, 5/7/28 (a)		200		204
MARB BondCo PLC,
3.95%, 1/29/31 (a)		200		193
MercadoLibre, Inc.,
3.13%, 1/14/31		200		197
Movida Europe SA,
5.25%, 2/8/31 (a)		200		202
Suzano Austria GmbH,
3.75%, 1/15/31		40		42
				838
Sovereign (3.5%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/23 - 1/1/25	BRL	5,538		1,172
Brazilian Government International Bond,
3.88%, 6/12/30	$	200		202
				1,374
				2,212

	Face Amount (000)		Value (000)
Chile (3.0%)
Corporate Bonds (2.1%)
ATP Tower Holdings LLC/Andean Tower Partners Colombia SAS/Andean Telecom Par,
4.05%, 4/27/26 (a)	$	200	$	206
Cencosud SA,
4.38%, 7/17/27		200		219
Colbun SA,
3.15%, 3/6/30 (a)		200		204
Kenbourne Invest SA,
4.70%, 1/22/28 (a)		200		202
				831
Sovereign (0.9%)
Bonos de la Tesoreria de la Republica en pesos,
4.50%, 3/1/26	CLP	90,000		128
Chile Government International Bond,
3.50%, 1/25/50	$	200		210
				338
				1,169
China (5.4%)
Corporate Bonds (1.5%)
Country Garden Holdings Co., Ltd.,
7.25%, 4/8/26		260		289
Huarong Finance Co. Ltd.,
3.88%, 11/13/29		200		137
Huarong Finance II Co. Ltd.,
4.63%, 6/3/26		200		141
				567
Sovereign (3.9%)
China Government Bond,
2.68%, 5/21/30	CNY	2,820		420
3.13%, 11/21/29		4,900		758
3.29%, 10/18/23		940		148
Sinopec Group Overseas Development 2018 Ltd.,
2.95%, 11/12/29 (a)	$	200		211
				1,537
				2,104
Colombia (4.0%)
Corporate Bonds (2.1%)
Banco GNB Sudameris SA,
7.50%, 4/16/31 (a)		200		203
Grupo Aval Ltd.,
4.38%, 2/4/30 (a)		200		198
SierraCol Energy Andina LLC,
6.00%, 6/15/28 (a)		200		203
Termocandelaria Power Ltd.,
7.88%, 1/30/29 (a)		185		198
				802

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Fixed Income Opportunities Portfolio

	Face Amount (000)		Value (000)
Sovereign (1.9%)
Colombia Government International Bond,
4.13%, 5/15/51	$	200	$	190
Colombian TES, Series B
6.00%, 4/28/28	COP	758,400		194
7.00%, 6/30/32		253,800		66
7.50%, 8/26/26		575,100		163
10.00%, 7/24/24		454,100		138
				751
				1,553
Czech Republic (0.4%)
Sovereign (0.4%)
Czech Republic Government Bond,
1.20%, 3/13/31	CZK	3,440		152
Dominican Republic (1.8%)
Corporate Bond (0.1%)
Empresa Generadora de Electricidad Itabo SA,
7.95%, 5/11/26 (a)	$	54		56
Sovereign (1.7%)
Dominican Republic International Bond,
5.30%, 1/21/41 (a)		300		300
5.88%, 1/30/60 (a)		150		150
9.75%, 6/5/26 (a)	DOP	10,550		209
				659
				715
Ecuador (1.0%)
Sovereign (1.0%)
Ecuador Government International Bond,
0.00%, 7/31/30 (a)	$	20		12
0.50%, 7/31/30 - 7/31/40 (a)(b)		286		204
0.50%, 7/31/35 - 7/31/40 (b)		270		175
				391
Egypt (4.2%)
Corporate Bond (1.1%)
African Export-Import Bank (The),
3.99%, 9/21/29 (a)		390		411
Sovereign (3.1%)
Egypt Government Bond,
13.77%, 1/5/24	EGP	5,012		318
14.06%, 1/12/26		3,600		228
Egypt Government International Bond,
5.25%, 10/6/25	$	200		211
6.38%, 4/11/31 (a)	EUR	230		285
7.50%, 2/16/61 (a)	$	200		188
				1,230
				1,641

	Face Amount (000)		Value (000)
El Salvador (0.3%)
Sovereign (0.3%)
El Salvador Government International Bond,
7.12%, 1/20/50 (a)	$	150	$	128
Ghana (1.5%)
Corporate Bonds (1.0%)
Kosmos Energy Ltd.,
7.13%, 4/4/26 (a)		200		199
Tullow Oil PLC,
10.25%, 5/15/26 (a)		200		210
				409
Sovereign (0.5%)
Ghana Government International Bond,
8.88%, 5/7/42 (a)		200		202
				611
Hungary (1.2%)
Sovereign (1.2%)
Hungary Government Bond,
3.00%, 8/21/30	HUF	56,000		198
6.00%, 11/24/23		76,600		286
				484
India (0.6%)
Corporate Bond (0.6%)
Greenko Investment Co.,
4.88%, 8/16/23 (a)	$	240		244
Indonesia (6.0%)
Sovereign (6.0%)
Indonesia Government International Bond,
3.85%, 7/18/27		200		223
4.45%, 4/15/70		230		273
Indonesia Treasury Bond,
6.50%, 6/15/25 - 2/15/31	IDR	7,834,000		558
7.00%, 9/15/30		3,916,000		280
7.50%, 8/15/32 - 6/15/35		5,310,000		383
8.38%, 4/15/39		3,200,000		245
8.75%, 5/15/31		1,310,000		104
Pertamina Persero PT,
6.50%, 11/7/48 (a)	$	200		266
				2,332
Israel (1.3%)
Corporate Bonds (1.3%)
Energean Israel Finance Ltd.,
4.88%, 3/30/26 (a)		165		170
Teva Pharmaceutical Finance Netherlands III BV,
7.13%, 1/31/25		300		331
				501

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Fixed Income Opportunities Portfolio

	Face Amount (000)			Value (000)
Ivory Coast (0.4%)
Sovereign (0.4%)
Ivory Coast Government International Bond,
4.88%, 1/30/32 (a)	EUR	140	��	$	166
Jordan (0.5%)
Sovereign (0.5%)
Jordan Government International Bond,
7.38%, 10/10/47 (a)	$	200			211
Kazakhstan (0.6%)
Sovereign (0.6%)
Development Bank of Kazakhstan JSC,
10.95%, 5/6/26 (a)	KZT	100,000			236
Lebanon (0.1%)
Sovereign (0.1%)
Lebanon Government International Bond,
6.85%, 3/23/27 (c)(d)	$	266			35
Macedonia (0.3%)
Sovereign (0.3%)
North Macedonia Government International Bond,
1.63%, 3/10/28 (a)	EUR	100			117
Malaysia (2.9%)
Sovereign (2.9%)
Malaysia Government Bond,
3.76%, 5/22/40	MYR	950			216
3.96%, 9/15/25		1,603			408
4.18%, 7/15/24		762			194
4.23%, 6/30/31		616			159
4.50%, 4/15/30		559			147
					1,124
Mexico (10.5%)
Corporate Bonds (2.9%)
Cemex SAB de CV,
5.13%, 6/8/26 (a)(e)	$	200			207
Financiera Independencia SAB de CV SOFOM ENR,
8.00%, 7/19/24 (a)		250			235
Total Play Telecomunicaciones SA de CV,
7.50%, 11/12/25 (a)		200			212
Trust Fibra Uno,
6.39%, 1/15/50 (a)		240			282
Unifin Financiera SAB de CV,
9.88%, 1/28/29 (a)		200			199
					1,135
Sovereign (7.6%)
Mexican Bonos,
10.00%, 12/5/24	MXN	1,388			78
Series M
7.50%, 6/3/27		15,813			828
7.75%, 5/29/31		12,030			637
8.00%, 12/7/23		2,072			109
10.00%, 12/5/24		2,321			130

	Face Amount (000)		Value (000)
Mexico Government International Bond,
3.75%, 4/19/71	$	200	$	183
Petroleos Mexicanos,
6.50%, 3/13/27 - 1/23/29		526		549
6.88%, 10/16/25 (a)		135		150
6.95%, 1/28/60		365		323
				2,987
				4,122
Moldova (0.5%)
Corporate Bond (0.5%)
Aragvi Finance International DAC,
8.45%, 4/29/26 (a)		200		209
Mongolia (0.5%)
Sovereign (0.5%)
Mongolia Government International Bond,
4.45%, 7/7/31 (a)(f)		200		197
Morocco (0.5%)
Sovereign (0.5%)
Morocco Government International Bond,
4.00%, 12/15/50 (a)		200		186
Nigeria (4.4%)
Corporate Bonds (3.3%)
Fidelity Bank PLC,
10.50%, 10/16/22 (a)		220		237
First Bank of Nigeria Ltd. Via FBN Finance Co. BV,
8.63%, 10/27/25 (a)		200		213
IHS Netherlands Holdco BV,
8.00%, 9/18/27 (a)		270		294
SEPLAT Petroleum Development Co. PLC,
7.75%, 4/1/26 (a)		210		219
United Bank for Africa PLC,
7.75%, 6/8/22 (a)		300		311
				1,274
Sovereign (1.1%)
Nigeria Government International Bond,
7.14%, 2/23/30 (a)		400		423
				1,697
Oman (1.1%)
Sovereign (1.1%)
Oman Government International Bond,
6.25%, 1/25/31 (a)		410		441
Panama (0.5%)
Corporate Bond (0.5%)
AES Panama Generation Holdings SRL,
4.38%, 5/31/30 (a)		200		210
Paraguay (0.7%)
Sovereign (0.7%)
Paraguay Government International Bond,
5.40%, 3/30/50		230		269

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Fixed Income Opportunities Portfolio

	Face Amount (000)		Value (000)
Peru (1.7%)
Corporate Bonds (1.0%)
InRetail Consumer,
3.25%, 3/22/28 (a)	$	200	$	198
Lima Metro Line 2 Finance Ltd.,
4.35%, 4/5/36 (a)		200		208
				406
Sovereign (0.7%)
Peru Government Bond,
5.40%, 8/12/34	PEN	259		64
5.94%, 2/12/29		742		211
6.15%, 8/12/32		1		—	@
				275
				681
Poland (2.7%)
Sovereign (2.7%)
Republic of Poland Government Bond,
3.25%, 7/25/25	PLN	1,258		359
4.00%, 10/25/23		455		129
5.75%, 10/25/21 - 9/23/22		2,020		563
				1,051
Qatar (0.8%)
Sovereign (0.8%)
Qatar Government International Bond,
4.82%, 3/14/49 (a)	$	230		297
Romania (1.1%)
Sovereign (1.1%)
Romania Government Bond,
4.75%, 2/24/25 - 10/11/34	RON	1,590		411
				411
Russia (4.4%)
Corporate Bond (0.8%)
Alfa Bank AO Via Alfa Bond Issuance PLC,
5.95%, 4/15/30	$	300		316
Sovereign (3.6%)
Russian Federal Bond — OFZ,
6.90%, 5/23/29	RUB	43,141		588
7.00%, 8/16/23		21,670		298
7.70%, 3/23/33		9,485		136
7.95%, 10/7/26		9,240		132
Russian Foreign Bond — Eurobond,
5.63%, 4/4/42	$	200		257
				1,411
				1,727
Saudi Arabia (1.6%)
Corporate Bond (0.5%)
SA Global Sukuk Ltd.,
2.69%, 6/17/31 (a)		200		203

	Face Amount (000)		Value (000)
Sovereign (1.1%)
Saudi Government International Bond,
5.25%, 1/16/50 (a)	$	340	$	446
				649
Senegal (0.9%)
Sovereign (0.9%)
Senegal Government International Bond,
6.25%, 5/23/33 (a)		350		370
South Africa (3.9%)
Sovereign (3.9%)
Republic of South Africa Government Bond,
8.00%, 1/31/30	ZAR	18,181		1,209
8.25%, 3/31/32		2,437		156
8.75%, 1/31/44		820		49
9.00%, 1/31/40		1,500		92
				1,506
Supranational (0.6%)
Banque Ouest Africaine de Developpement,
2.75%, 1/22/33 (a)	EUR	200		249
Tanzania, United Republic of (0.6%)
Corporate Bond (0.6%)
HTA Group Ltd.,
7.00%, 12/18/25 (a)	$	200		214
Thailand (1.8%)
Sovereign (1.8%)
Thailand Government Bond,
3.63%, 6/16/23	THB	9,000		298
4.88%, 6/22/29		10,144		397
				695
Turkey (2.6%)
Corporate Bond (0.5%)
Limak Iskenderun Uluslararasi Liman Isletmeciligi,
9.50%, 7/10/36 (a)	$	200		211
Sovereign (2.1%)
Hazine Mustesarligi Varlik Kiralama AS,
5.13%, 6/22/26 (a)		200		200
Turkey Government Bond,
8.00%, 3/12/25	TRY	1,143		98
10.50%, 8/11/27		1,236		107
10.70%, 8/17/22		58		6
11.00%, 3/2/22		190		21
Turkey Government International Bond,
5.88%, 6/26/31	$	400		390
				822
				1,033

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Fixed Income Opportunities Portfolio

	Face Amount (000)		Value (000)
Ukraine (1.7%)
Sovereign (1.7%)
NAK Naftogaz Ukraine via Kondor Finance PLC,
7.13%, 7/19/24	EUR	200	$	247
Ukraine Government International Bond,
7.75%, 9/1/26	$	380		421
				668
United Arab Emirates (2.9%)
Corporate Bonds (2.3%)
DP World PLC,
5.63%, 9/25/48 (a)		200		251
DP World Salaam,
6.00%, 10/1/25 (e)		200		220
Galaxy Pipeline Assets Bidco Ltd.,
2.16%, 3/31/34 (a)		200		197
3.25%, 9/30/40 (a)		230		229
				897
Sovereign (0.6%)
Abu Dhabi Government International Bond,
3.13%, 4/16/30		200		218
				1,115
Uzbekistan (0.5%)
Sovereign (0.5%)
Republic of Uzbekistan Bond,
3.70%, 11/25/30 (a)		200		200
Venezuela (0.2%)
Sovereign (0.2%)
Petroleos de Venezuela SA,
6.00%, 11/15/26 (c)(d)		1,582		71
Zambia (0.7%)
Sovereign (0.7%)
Zambia Government Bond,
11.00%, 1/25/26	ZMW	2,030		47
13.00%, 1/25/31		5,290		103
Zambia Government International Bond,
5.38%, 9/20/22	$	200		127
				277
Total Fixed Income Securities (Cost $35,815)				35,453
	No. of Warrants
Warrant (0.0%) (g)
Venezuela (0.0%) (g)
Venezuela Government International Bond, Oil-Linked Payment Obligation, 0.0%, expires 4/15/20 (h) (Cost $—)		495		1
	Shares
Short-Term Investments (7.4%)
Investment Company (6.7%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $2,612)		2,611,813		2,612

	Face Amount (000)		Value (000)
Egypt (0.6%)
Sovereign (0.6%)
Egypt Treasury Bill,
13.25%, 9/7/21 (Cost $230)	EGP	3,700	$	231
United States (0.1%)
U.S. Treasury Security (0.1%)
U.S. Treasury Bill,
0.03%, 11/4/21 (i) (Cost $30)	$	30		30
Total Short-Term Investments (Cost $2,872)				2,873
Total Investments (97.9%) (Cost $38,687) (j)(k)				38,327
Other Assets in Excess of Liabilities (2.1%)				827
Net Assets (100.0%)			$	39,154

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

(b) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of June 30, 2021. Maturity date disclosed is the ultimate maturity date.

(d) Issuer in bankruptcy.

(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, 2021.

(f) When-issued security.

(g) Amount is less than 0.05%.

(h) Perpetual maturity date. Date disclosed is the last expiration date.

(i) Rate shown is the yield to maturity at June 30, 2021.

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

(k) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,609,000 and the aggregate gross unrealized depreciation is approximately $1,943,000, resulting in net unrealized depreciation of approximately $334,000.

@ Value is less than $500.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Fixed Income Opportunities Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at June 30, 2021:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Bank of America NA	EUR	20	$	24	8/25/21	$	1
Barclays Bank PLC	$	397	HUF	118,000	8/25/21		1
BNP Paribas SA	CLP	16,000	$	22	8/25/21		—	@
BNP Paribas SA	EUR	1,080	$	1,320	8/25/21		38
BNP Paribas SA	IDR	2,300,000	$	159	8/25/21		1
BNP Paribas SA	$	182	CLP	130,000	8/25/21		(5	)
BNP Paribas SA	$	402	CZK	8,400	8/25/21		(12	)
Citibank NA	MXN	7,450	$	370	8/25/21		(1	)
JPMorgan Chase Bank NA	PLN	170	$	46	8/25/21		1
UBS AG	$	202	CNH	1,310	8/25/21		(—	@)
UBS AG	ZAR	2,400	$	169	8/25/21		2
						$	26

@ Value is less than $500.

BRL — Brazilian Real

CLP — Chilean Peso

CNH — Chinese Yuan Renminbi Offshore

CNY — Chinese Yuan Renminbi

COP — Colombian Peso

CZK — Czech Koruna

DOP — Dominican Peso

EGP — Egyptian Pound

EUR — Euro

HUF — Hungarian Forint

IDR — Indonesian Rupiah

KZT — Kazakhstan Tenge

MXN — Mexican Peso

MYR — Malaysian Ringgit

PEN — Peruvian Nuevo Sol

PLN — Polish Zloty

RON — Romanian New Leu

RUB — Russian Ruble

THB — Thai Baht

TRY — Turkish Lira

USD — United States Dollar

ZAR — South African Rand

ZMW — Zambian kwacha

Portfolio Composition

Classification	Percentage of Total Investments
Sovereign		65.3	%
Corporate Bonds		26.6
Short-Term Investments		7.5
Other*		0.6
Total Investments		100.0	%**

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

** Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $26,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Fixed Income Opportunities Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $36,075)	$	35,715
Investment in Security of Affiliated Issuer, at Value (Cost $2,612)		2,612
Total Investments in Securities, at Value (Cost $38,687)		38,327
Foreign Currency, at Value (Cost $263)		253
Interest Receivable		626
Receivable for Investments Sold		214
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		44
Tax Reclaim Receivable		25
Due from Adviser		2
Dividends Receivable		—	@
Receivable from Affiliate		—	@
Receivable for Fund Shares Sold		—	@
Other Assets		79
Total Assets		39,570
Liabilities:
Payable for Investments Purchased		196
Payable for Fund Shares Redeemed		65
Deferred Capital Gain Country Tax		65
Payable for Professional Fees		36
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		18
Payable for Custodian Fees		11
Payable for Sub Transfer Agency Fees — Class I		4
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		3
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		17
Total Liabilities		416
Net Assets	$	39,154
Net Assets Consist of:
Paid-in-Capital	$	45,751
Total Accumulated Loss		(6,597	)
Net Assets	$	39,154

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Fixed Income Opportunities Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	34,912
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,902,608
Net Asset Value, Offering and Redemption Price Per Share	$	8.95
CLASS A:
Net Assets	$	3,164
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		354,325
Net Asset Value, Redemption Price Per Share	$	8.93
Maximum Sales Load		3.25	%
Maximum Sales Charge	$	0.30
Maximum Offering Price Per Share	$	9.23
CLASS L:
Net Assets	$	549
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		61,567
Net Asset Value, Offering and Redemption Price Per Share	$	8.91
CLASS C:
Net Assets	$	510
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		57,411
Net Asset Value, Offering and Redemption Price Per Share	$	8.88
CLASS IS:
Net Assets	$	19
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,156
Net Asset Value, Offering and Redemption Price Per Share	$	8.95

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Fixed Income Opportunities Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $27 of Foreign Taxes Withheld)	$	1,165
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		1,165
Expenses:
Advisory Fees (Note B)		142
Professional Fees		67
Registration Fees		26
Administration Fees (Note C)		15
Custodian Fees (Note F)		10
Sub Transfer Agency Fees — Class I		8
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Pricing Fees		8
Shareholder Services Fees — Class A (Note D)		4
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		2
Shareholder Reporting Fees		7
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		2
Other Expenses		10
Total Expenses		308
Waiver of Advisory Fees (Note B)		(132	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(5	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		167
Net Investment Income		998
Realized Gain (Loss):
Investments Sold (Net of $9 of Capital Gain Country Tax)		84
Foreign Currency Forward Exchange Contracts		15
Foreign Currency Translation		(5	)
Net Realized Gain		94
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $42)		(1,550	)
Foreign Currency Forward Exchange Contracts		33
Foreign Currency Translation		(20	)
Net Change in Unrealized Appreciation (Depreciation)		(1,537	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(1,443	)
Net Decrease in Net Assets Resulting from Operations	$	(445	)

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Emerging Markets Fixed Income Opportunities Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	998		$	2,304
Net Realized Gain (Loss)		94			(2,303	)
Net Change in Unrealized Appreciation (Depreciation)		(1,537	)		(842	)
Net Decrease in Net Assets Resulting from Operations		(445	)		(841	)
Dividends and Distributions to Shareholders:
Class I		(402	)		(1,008	)
Class A		(35	)		(75	)
Class L		(6	)		(14	)
Class C		(4	)		(8	)
Class IS		(—	@)		(1	)
Paid-in-Capital:
Class I		—			(1,137	)
Class A		—			(84	)
Class L		—			(16	)
Class C		—			(10	)
Class IS		—			(1	)
Total Dividends and Distributions to Shareholders		(447	)		(2,354	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		3,659			2,814
Distributions Reinvested		401			2,140
Redeemed		(3,628	)		(24,914	)
Class A:
Subscribed		62			2,384
Distributions Reinvested		35			159
Redeemed		(176	)		(1,124	)
Class L:
Distributions Reinvested		6			31
Redeemed		(32	)		(188	)
Class C:
Subscribed		118			127
Distributions Reinvested		4			18
Redeemed		(74	)		(182	)
Class IS:
Subscribed		—			—
Distributions Reinvested		—	@		1
Redeemed		—			—
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		375			(18,734	)
Redemption Fees		—	@		—	@
Total Decrease in Net Assets		(517	)		(21,929	)
Net Assets:
Beginning of Period		39,671			61,600
End of Period	$	39,154		$	39,671

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Emerging Markets Fixed Income Opportunities Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		413			318
Shares Issued on Distributions Reinvested		46			258
Shares Redeemed		(404	)		(3,008	)
Net Increase (Decrease) in Class I Shares Outstanding		55			(2,432	)
Class A:
Shares Subscribed		7			257
Shares Issued on Distributions Reinvested		4			19
Shares Redeemed		(20	)		(144	)
Net Increase (Decrease) in Class A Shares Outstanding		(9	)		132
Class L:
Shares Issued on Distributions Reinvested		1			4
Shares Redeemed		(4	)		(22	)
Net Decrease in Class L Shares Outstanding		(3	)		(18	)
Class C:
Shares Subscribed		12			14
Shares Issued on Distributions Reinvested		1			2
Shares Redeemed		(8	)		(21	)
Net Increase (Decrease) in Class C Shares Outstanding		5			(5	)
Class IS:
Shares Subscribed		—			—
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		—			—
Net Increase in Class IS Shares Outstanding		—	@@		—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Fixed Income Opportunities Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	9.16		$	9.25		$	8.52		$	9.68		$	9.07		$	8.53
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.23			0.44			0.51			0.57			0.65			0.67
Net Realized and Unrealized Gain (Loss)		(0.33	)		(0.06	)		0.70			(1.24	)		0.52			0.42
Total from Investment Operations		(0.10	)		0.38			1.21			(0.67	)		1.17			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.22	)		(0.43	)		(0.49	)		(0.56	)		(0.55	)
Paid-in-Capital		—			(0.25	)		(0.05	)		—			—			—
Total Distributions		(0.11	)		(0.47	)		(0.48	)		(0.49	)		(0.56	)		(0.55	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	8.95		$	9.16		$	9.25		$	8.52		$	9.68		$	9.07
Total Return⁽⁴⁾		(1.06	)%⁽⁷⁾		4.69	%		14.41	%		(6.93	)%		12.94	%		12.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	34,912		$	35,262		$	58,152		$	32,575		$	22,219		$	20,332
Ratio of Expenses Before Expense Limitation		1.57	%⁽⁸⁾		1.53	%		1.39	%		1.98	%		2.01	%		2.03	%
Ratio of Expenses After Expense Limitation		0.85	%⁽⁵⁾⁽⁸⁾		0.84	%⁽⁵⁾		0.83	%⁽⁵⁾		0.84	%⁽⁵⁾		0.83	%⁽⁵⁾		0.84	%⁽⁵⁾
Ratio of Net Investment Income		5.27	%⁽⁵⁾⁽⁸⁾		5.05	%⁽⁵⁾		5.65	%⁽⁵⁾		6.24	%⁽⁵⁾		6.73	%⁽⁵⁾		7.32	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		42	%⁽⁷⁾		54	%		58	%		47	%		77	%		116	%

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

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

(3) 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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Fixed Income Opportunities Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	9.15		$	9.24		$	8.51		$	9.67		$	9.06		$	8.52
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.22			0.41			0.48			0.52			0.61			0.64
Net Realized and Unrealized Gain (Loss)		(0.34	)		(0.06	)		0.70			(1.22	)		0.52			0.42
Total from Investment Operations		(0.12	)		0.35			1.18			(0.70	)		1.13			1.06
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		(0.19	)		(0.40	)		(0.46	)		(0.52	)		(0.52	)
Paid-in-Capital		—			(0.25	)		(0.05	)		—			—			—
Total Distributions		(0.10	)		(0.44	)		(0.45	)		(0.46	)		(0.52	)		(0.52	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	8.93		$	9.15		$	9.24		$	8.51		$	9.67		$	9.06
Total Return⁽⁴⁾		(1.26	)%⁽⁷⁾		4.33	%		14.03	%		(7.29	)%		12.54	%		12.53	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,164		$	3,325		$	2,141		$	1,306		$	1,150		$	972
Ratio of Expenses Before Expense Limitation		1.90	%⁽⁸⁾		1.87	%		1.81	%		2.49	%		2.51	%		2.28	%
Ratio of Expenses After Expense Limitation		1.20	%⁽⁵⁾⁽⁸⁾		1.19	%⁽⁵⁾		1.18	%⁽⁵⁾		1.19	%⁽⁵⁾		1.19	%⁽⁵⁾		1.09	%⁽⁵⁾
Ratio of Net Investment Income		4.92	%⁽⁵⁾⁽⁸⁾		4.72	%⁽⁵⁾		5.31	%⁽⁵⁾		5.74	%⁽⁵⁾		6.37	%⁽⁵⁾		7.03	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		42	%⁽⁷⁾		54	%		58	%		47	%		77	%		116	%

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

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Fixed Income Opportunities Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	9.14		$	9.23		$	8.50		$	9.65		$	9.05		$	8.51
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.21			0.39			0.46			0.50			0.59			0.62
Net Realized and Unrealized Gain (Loss)		(0.34	)		(0.06	)		0.70			(1.22	)		0.51			0.41
Total from Investment Operations		(0.13	)		0.33			1.16			(0.72	)		1.10			1.03
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		(0.17	)		(0.38	)		(0.43	)		(0.50	)		(0.49	)
Paid-in-Capital		—			(0.25	)		(0.05	)		—			—			—
Total Distributions		(0.10	)		(0.42	)		(0.43	)		(0.43	)		(0.50	)		(0.49	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	8.91		$	9.14		$	9.23		$	8.50		$	9.65		$	9.05
Total Return⁽⁴⁾		(1.43	)%⁽⁷⁾		4.06	%		13.76	%		(7.52	)%		12.28	%		12.15	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	549		$	589		$	764		$	727		$	842		$	777
Ratio of Expenses Before Expense Limitation		2.39	%⁽⁸⁾		2.35	%		2.16	%		2.78	%		2.77	%		2.78	%
Ratio of Expenses After Expense Limitation		1.45	%⁽⁵⁾⁽⁸⁾		1.44	%⁽⁵⁾		1.43	%⁽⁵⁾		1.44	%⁽⁵⁾		1.44	%⁽⁵⁾		1.45	%⁽⁵⁾
Ratio of Net Investment Income		4.66	%⁽⁵⁾⁽⁸⁾		4.48	%⁽⁵⁾		5.05	%⁽⁵⁾		5.51	%⁽⁵⁾		6.11	%⁽⁵⁾		6.70	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		42	%⁽⁷⁾		54	%		58	%		47	%		77	%		116	%

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

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Fixed Income Opportunities Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	9.13		$	9.21		$	8.50		$	9.65		$	9.05		$	8.52
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.19			0.34			0.41			0.46			0.50			0.54
Net Realized and Unrealized Gain (Loss)		(0.35	)		(0.05	)		0.70			(1.22	)		0.55			0.43
Total from Investment Operations		(0.16	)		0.29			1.11			(0.76	)		1.05			0.97
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.12	)		(0.35	)		(0.39	)		(0.45	)		(0.44	)
Paid-in-Capital		—			(0.25	)		(0.05	)		—			—			—
Total Distributions		(0.09	)		(0.37	)		(0.40	)		(0.39	)		(0.45	)		(0.44	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	8.88		$	9.13		$	9.21		$	8.50		$	9.65		$	9.05
Total Return⁽⁴⁾		(1.78	)%⁽⁷⁾		3.63	%		13.19	%		(7.98	)%		11.76	%		11.60	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	510		$	475		$	524		$	48		$	284		$	225
Ratio of Expenses Before Expense Limitation		2.99	%⁽⁸⁾		3.05	%		2.92	%		3.79	%		3.84	%		3.97	%
Ratio of Expenses After Expense Limitation		1.95	%⁽⁵⁾⁽⁸⁾		1.94	%⁽⁵⁾		1.93	%⁽⁵⁾		1.94	%⁽⁵⁾		1.94	%⁽⁵⁾		1.95	%⁽⁵⁾
Ratio of Net Investment Income		4.22	%⁽⁵⁾⁽⁸⁾		3.98	%⁽⁵⁾		4.54	%⁽⁵⁾		5.09	%⁽⁵⁾		5.18	%⁽⁵⁾		5.87	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		42	%⁽⁷⁾		54	%		58	%		47	%		77	%		116	%

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

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Fixed Income Opportunities Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	9.17		$	9.25		$	8.52		$	9.68		$	9.07		$	8.53
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.24			0.44			0.52			0.56			0.65			0.67
Net Realized and Unrealized Gain (Loss)		(0.35	)		(0.05	)		0.69			(1.23	)		0.52			0.42
Total from Investment Operations		(0.11	)		0.39			1.21			(0.67	)		1.17			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.22	)		(0.43	)		(0.49	)		(0.56	)		(0.55	)
Paid-in-Capital		—			(0.25	)		(0.05	)		—			—			—
Total Distributions		(0.11	)		(0.47	)		(0.48	)		(0.49	)		(0.56	)		(0.55	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	8.95		$	9.17		$	9.25		$	8.52		$	9.68		$	9.07
Total Return⁽⁴⁾		(1.16	)%⁽⁷⁾		4.84	%		14.44	%		(6.91	)%		12.95	%		12.81	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	19		$	20		$	19		$	672		$	763		$	716
Ratio of Expenses Before Expense Limitation		10.75	%⁽⁸⁾		12.56	%		1.73	%		2.22	%		2.25	%		2.25	%
Ratio of Expenses After Expense Limitation		0.82	%⁽⁵⁾⁽⁸⁾		0.81	%⁽⁵⁾		0.80	%⁽⁵⁾		0.81	%⁽⁵⁾		0.81	%⁽⁵⁾		0.82	%⁽⁵⁾
Ratio of Net Investment Income		5.29	%⁽⁵⁾⁽⁸⁾		5.10	%⁽⁵⁾		5.72	%⁽⁵⁾		6.15	%⁽⁵⁾		6.74	%⁽⁵⁾		7.33	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		42	%⁽⁷⁾		54	%		58	%		47	%		77	%		116	%

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

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

(3) 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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Emerging Markets Fixed Income Opportunities Portfolio. The Fund seeks high total return.

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") 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; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Advisers determine that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Corporate Bonds	$	—	$	10,189		$	—	$	10,189
Sovereign		—		25,015			—		25,015
Supranational		—		249			—		249
Total Fixed Income Securities		—		35,453			—		35,453
Warrant		—		1			—		1
Short-Term Investments
Investment Company		2,612		—			—		2,612
Sovereign		—		231			—		231
U.S. Treasury Security		—		30			—		30
Total Short-Term Investments		2,612		261			—		2,873
Foreign Currency Forward Exchange Contracts		—		44			—		44
Total Assets		2,612		35,759			—		38,371
Liabilities:
Foreign Currency Forward Exchange Contracts		—		(18	)		—		(18	)
Total	$	2,612	$	35,741		$	—	$	38,353

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

4. Structured Investments: The Fund invested a portion of its assets in structured investments. A structured investment is a derivative security designed to offer a return linked to a particular underlying security, currency, 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.

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:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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 tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency Forward
Exchange Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

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

(18

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	15
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	33

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities(a) (000)
Foreign Currency Forward Exchange Contracts	$	44	$	(18	)

(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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	1		$	—		$	—	$	1
Barclays Bank PLC		1			—			—		1
BNP Paribas SA		39			(17	)		—		22
JPMorgan Chase Bank NA		1			—			—		1
UBS AG		2			(—	@)		—		2
Total	$	44		$	(17	)	$	—	$	27
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)
BNP Paribas SA	$	17		$	(17	)	$	—	$	0
Citibank NA		1			—			—		1
UBS AG		—	@		(—	@)		—		0
Total	$	18		$	(17	)	$	—	$	1

@ Value is less than $500.

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount				$	4,114,000

6. When-Issued/Delayed Delivery Securities: The Fund purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Fund on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place a month or more after the date of the transaction. When the Fund enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Fund's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower

than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Fund.

7. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class L shares, Class C shares and Class IS shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

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

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

10. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.05% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.85% for Class I shares, 1.20% for Class A shares, 1.45% for Class L shares, 1.95% for Class C shares and 0.82% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $132,000 of advisory fees were waived and approximately $8,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has entered into Sub-Advisory Agreements with the Sub-Advisers, each a wholly-owned subsidiary of Morgan Stanley. The Sub-Advisers provide the Fund with advisory services subject to the overall supervision of the Adviser and the Company's Officers and Directors. The Adviser pays the Sub-Advisers on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $14,844,000 and $14,913,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,781			$	10,703			$	9,872			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	2,612

@ Amount is less than $500.

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.

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, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Paid-in- Capital (000)		Ordinary Income (000)		Paid-in- Capital (000)
$	1,106	$	1,248	$	2,408	$	293

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020.

At December 31, 2020, the Fund had no distributable earnings on a tax basis.

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $1,713,000 and $4,504,000, respectively, that do not have an expiration date. These amounts include capital losses acquired from MSIF Emerging Markets Domestic Debt that may be subject to limitation under IRC Section 382 in future years.

J. Other: At June 30, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders

could have a material impact on the Fund. The aggregate percentage of such owners was 59.5%.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 three-year periods but better than its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this 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 was higher than but close to 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.

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-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

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

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

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

IFIEMEDSAN
3692223 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Leaders Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					9
Notes to Financial Statements					14
Investment Advisory Agreement Approval					20
Liquidity Risk Management Program					22
U.S. Customer Privacy Notice					23
Director and Officer Information					26

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Emerging Markets Leaders Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Emerging Markets Leaders Portfolio Class I	$	1,000.00	$	1,096.80	$	1,019.14	$	5.93	*	$	5.71	*		1.14	%
Emerging Markets Leaders Portfolio Class A		1,000.00		1,094.80		1,017.85		7.27	*		7.00	*		1.40
Emerging Markets Leaders Portfolio Class C		1,000.00		1,090.90		1,014.08		11.20	*		10.79	*		2.16
Emerging Markets Leaders Portfolio Class IS		1,000.00		1,097.20		1,019.34		5.72	*		5.51	*		1.10
Emerging Markets Leaders Portfolio Class IR^		1,000.00		1,101.70		1,008.44		2.50	**		2.39	**		1.10

** 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 79/365 (to reflect the actual days accrued in the period).

*** Annualized.

^ The Fund commenced offering of Class IR Shares on April 12, 2021.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Emerging Markets Leaders Portfolio

	Shares		Value (000)
Common Stocks (99.0%)
Brazil (5.5%)
Pagseguro Digital Ltd., Class A (a)		150,276	$	8,403
StoneCo Ltd., Class A (a)		105,380		7,067
				15,470
China (34.2%)
Agora, Inc. ADR (a)		46,566		1,954
Bilibili, Inc. ADR (a)		54,669		6,661
KE Holdings, Inc. ADR (a)		65,981		3,146
Kingdee International Software Group Co., Ltd. (b)		1,957,000		6,641
Li Ning Co., Ltd. (b)		1,523,000		18,595
Meituan, Class B (a)(b)		441,100		18,202
New Oriental Education & Technology Group, Inc. ADR (a)		480,560		3,936
Pinduoduo, Inc. ADR (a)		52,146		6,624
Proya Cosmetics Co. Ltd., Class A		116,800		3,556
Tencent Holdings Ltd. (b)		186,100		13,998
Tencent Music Entertainment Group ADR (a)		338,770		5,244
Wuliangye Yibin Co., Ltd., Class A		150,800		6,952
				95,509
Germany (5.7%)
Delivery Hero SE (a)		84,477		11,159
Global Fashion Group SA (a)		307,313		4,653
				15,812
India (21.4%)
Aarti Industries Ltd.		815,000		9,558
Apollo Hospitals Enterprise Ltd.		195,593		9,525
AU Small Finance Bank Ltd. (a)		531,908		7,413
Bajaj Finance Ltd. (a)		185,757		15,034
Happiest Minds Technologies Ltd.		106,271		1,436
HDFC Life Insurance Co., Ltd.		393,113		3,630
Kotak Mahindra Bank Ltd. (a)		315,115		7,232
PI Industries Ltd.		98,430		3,854
SRF Ltd.		21,275		2,082
				59,764
Singapore (8.0%)
Sea Ltd. ADR (a)		81,000		22,243
Taiwan (11.1%)
Silergy Corp.		78,000		10,610
Taiwan Semiconductor Manufacturing Co., Ltd.		664,000		14,180
Voltronic Power Technology Corp.		130,334		6,291
				31,081
United States (13.1%)
Advanced Micro Devices, Inc. (a)		63,917		6,004
MercadoLibre, Inc. (a)		9,732		15,160
NIKE, Inc., Class B		52,181		8,062
NVIDIA Corp.		9,255		7,405
				36,631
Total Common Stocks (Cost $216,030)				276,510

	Shares		Value (000)
Short-Term Investment (2.0%)
Investment Company (2.0%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $5,566)		5,566,215	$	5,566
Total Investments (101.0%) (Cost $221,596) (c)				282,076
Liabilities in Excess of Other Assets (–1.0%)				(2,907	)
Net Assets (100.0%)			$	279,169

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $68,304,000 and the aggregate gross unrealized depreciation is approximately $7,824,000, resulting in net unrealized appreciation of approximately $60,480,000.

ADR American Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Internet & Direct Marketing Retail		19.8	%
Other*		18.1
Semiconductors & Semiconductor Equipment		13.5
Entertainment		12.1
Textiles, Apparel & Luxury Goods		9.5
Information Technology Services		6.0
Chemicals		5.5
Consumer Finance		5.3
Banks		5.2
Interactive Media & Services		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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Leaders Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $216,030)	$	276,510
Investment in Security of Affiliated Issuer, at Value (Cost $5,566)		5,566
Total Investments in Securities, at Value (Cost $221,596)		282,076
Foreign Currency, at Value (Cost $297)		297
Receivable for Fund Shares Sold		528
Dividends Receivable		74
Tax Reclaim Receivable		20
Receivable from Affiliate		--—	@
Other Assets		114
Total Assets		283,109
Liabilities:
Deferred Capital Gain Country Tax		2,029
Payable for Investments Purchased		797
Payable for Advisory Fees		532
Payable for Fund Shares Redeemed		504
Payable for Professional Fees		35
Payable for Administration Fees		17
Payable for Shareholder Services Fees — Class A		5
Payable for Distribution and Shareholder Services Fees — Class C		7
Payable for Custodian Fees		7
Payable for Transfer Agency Fees — Class I		--—	@
Payable for Transfer Agency Fees — Class A		--—	@
Payable for Transfer Agency Fees — Class IS		--—	@
Payable for Transfer Agency Fees — Class IR		--—	@
Payable to the Advisor		2
Other Liabilities		5
Total Liabilities		3,940
Net Assets	$	279,169
Net Assets Consist of:
Paid-in-Capital	$	220,869
Total Distributable Earnings		58,300
Net Assets	$	279,169
CLASS I:
Net Assets	$	200,636
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		9,415,766
Net Asset Value, Offering and Redemption Price Per Share	$	21.31
CLASS A:
Net Assets	$	24,892
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,190,658
Net Asset Value, Redemption Price Per Share	$	20.91
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.16
Maximum Offering Price Per Share	$	22.07
CLASS C:
Net Assets	$	8,793
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		438,809
Net Asset Value, Offering and Redemption Price Per Share	$	20.04
CLASS IS:
Net Assets	$	44,837
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,101,225
Net Asset Value, Offering and Redemption Price Per Share	$	21.34
CLASS IR:
Net Assets	$	11
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		516
Net Asset Value, Offering and Redemption Price Per Share	$	21.34

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Leaders Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $29 of Foreign Taxes Withheld)	$	228
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		229
Expenses:
Advisory Fees (Note B)		922
Administration Fees (Note C)		82
Professional Fees		70
Shareholder Services Fees — Class A (Note D)		25
Distribution and Shareholder Services Fees — Class C (Note D)		35
Sub Transfer Agency Fees — Class I		31
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class C		1
Registration Fees		35
Custodian Fees (Note F)		27
Shareholder Reporting Fees		8
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Transfer Agency Fees — Class IR (Note E)		—	@
Directors' Fees and Expenses		2
Pricing Fees		1
Interest Expenses		1
Other Expenses		7
Total Expenses		1,256
Waiver of Advisory Fees (Note B)		(26	)
Rebate from Morgan Stanley Affiliate (Note G)		(3	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(—	@)
Net Expenses		1,226
Net Investment Loss		(997	)
Realized Gain (Loss):
Investments Sold (Net of $31 of Capital Gain Country Tax)		1,454
Foreign Currency Translation		(57	)
Net Realized Gain		1,397
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $1,223)		15,256
Foreign Currency Translation		3
Net Change in Unrealized Appreciation (Depreciation)		15,259
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		16,656
Net Increase in Net Assets Resulting from Operations	$	15,659

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Emerging Markets Leaders Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(997	)	$	(470	)
Net Realized Gain		1,397			4,251
Net Change in Unrealized Appreciation (Depreciation)		15,259			29,940
Net Increase in Net Assets Resulting from Operations		15,659			33,721
Dividends and Distributions to Shareholders:
Class I		—			(2,732	)
Class A		—			(274	)
Class C		—			(126	)
Class IS		—			(1,054	)
Total Dividends and Distributions to Shareholders		—			(4,186	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		160,179			52,338
Distributions Reinvested		—			2,728
Redeemed		(50,865	)		(25,342	)
Class A:
Subscribed		21,666			7,127
Distributions Reinvested		—			274
Redeemed		(5,439	)		(1,831	)
Class C:
Subscribed		5,823			1,756
Distributions Reinvested		—			125
Redeemed		(785	)		(143	)
Class IS:
Subscribed		13,901			5
Distributions Reinvested		—			1,054
Redeemed		(5	)		(3,300	)
Class IR:
Subscribed		10	(a)		—
Net Increase in Net Assets Resulting from Capital Share Transactions		144,485			34,791
Redemption Fees		10			2
Total Increase in Net Assets		160,154			64,328
Net Assets:
Beginning of Period		119,015			54,687
End of Period	$	279,169		$	119,015

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Emerging Markets Leaders Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		7,809			3,072
Shares Issued on Distributions Reinvested		—			145
Shares Redeemed		(2,534	)		(1,647	)
Net Increase in Class I Shares Outstanding		5,275			1,570
Class A:
Shares Subscribed		1,055			422
Shares Issued on Distributions Reinvested		—			15
Shares Redeemed		(279	)		(117	)
Net Increase in Class A Shares Outstanding		776			320
Class C:
Shares Subscribed		296			107
Shares Issued on Distributions Reinvested		—			7
Shares Redeemed		(42	)		(12	)
Net Increase in Class C Shares Outstanding		254			102
Class IS:
Shares Subscribed		702			—	@@
Shares Issued on Distributions Reinvested		—			56
Shares Redeemed		(—	@@)		(217	)
Net Increase (Decrease) in Class IS Shares Outstanding		702			(161	)
Class IR:
Shares Subscribed		1	(a)		—

(a) For the period April 12, 2021 to June 30, 2021.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Leaders Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.43		$	12.70		$	10.38		$	12.14		$	9.73		$	9.45
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.09	)		(0.11	)		(0.02	)		0.03			0.08			0.04
Net Realized and Unrealized Gain (Loss)		1.97			7.62			2.78			(1.74	)		2.45			0.25
Total from Investment Operations		1.88			7.51			2.76			(1.71	)		2.53			0.29
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.01	)		(0.08	)		(0.01	)
Net Realized Gain		—			(0.78	)		(0.44	)		(0.04	)		(0.04	)		—
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.78	)		(0.44	)		(0.05	)		(0.12	)		(0.01	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	21.31		$	19.43		$	12.70		$	10.38		$	12.14		$	9.73
Total Return⁽⁴⁾		9.68	%⁽⁷⁾		59.36	%		26.63	%		(14.12	)%		26.01	%		3.08	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	200,636		$	80,465		$	32,651		$	39,206		$	73,273		$	25,374
Ratio of Expenses Before Expense Limitation		1.17	%⁽⁸⁾		1.47	%		1.57	%		1.48	%		1.43	%		1.32	%
Ratio of Expenses After Expense Limitation		1.14	%⁽⁵⁾⁽⁸⁾		1.15	%⁽⁵⁾		1.17	%⁽⁵⁾		1.17	%⁽⁵⁾		1.11	%⁽⁵⁾		1.10	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.14	%⁽⁵⁾⁽⁸⁾		N/A			1.16	%⁽⁵⁾		1.16	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		(0.92	)%⁽⁵⁾⁽⁸⁾		(0.73	)%⁽⁵⁾		(0.14	)%⁽⁵⁾		0.29	%⁽⁵⁾		0.67	%⁽⁵⁾		0.37	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%
Portfolio Turnover Rate		5	%⁽⁷⁾		57	%		58	%		47	%		79	%		45	%

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

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

(3) 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.

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Leaders Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.09		$	12.53		$	10.29		$	12.06		$	9.67		$	9.43
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.12	)		(0.17	)		(0.05	)		(0.00	)⁽³⁾		0.02			(0.03	)
Net Realized and Unrealized Gain (Loss)		1.94			7.51			2.73			(1.73	)		2.44			0.28
Total from Investment Operations		1.82			7.34			2.68			(1.73	)		2.46			0.25
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.03	)		(0.01	)
Net Realized Gain		—			(0.78	)		(0.44	)		(0.04	)		(0.04	)		—
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.78	)		(0.44	)		(0.04	)		(0.07	)		(0.01	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	20.91		$	19.09		$	12.53		$	10.29		$	12.06		$	9.67
Total Return⁽⁴⁾		9.48	%⁽⁷⁾		58.81	%		26.08	%		(14.41	)%		25.46	%		2.63	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	24,892		$	7,925		$	1,191		$	1,024		$	1,102		$	821
Ratio of Expenses Before Expense Limitation		1.43	%⁽⁸⁾		1.82	%		2.04	%		1.93	%		2.01	%		1.96	%
Ratio of Expenses After Expense Limitation		1.40	%⁽⁵⁾⁽⁸⁾		1.50	%⁽⁵⁾		1.55	%⁽⁵⁾		1.55	%⁽⁵⁾		1.54	%⁽⁵⁾		1.53	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.40	%⁽⁵⁾⁽⁸⁾		N/A			1.54	%⁽⁵⁾		1.54	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		(1.18	)%⁽⁵⁾⁽⁸⁾		(1.13	)%⁽⁵⁾		(0.45	)%⁽⁵⁾		(0.04	)%⁽⁵⁾		0.18	%⁽⁵⁾		(0.33	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%
Portfolio Turnover Rate		5	%⁽⁷⁾		57	%		58	%		47	%		79	%		45	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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 which does not reflect sales charges, if applicable, as of the last business day of the period.

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Leaders Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	18.37		$	12.17		$	10.08		$	11.90		$	9.59		$	9.42
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.18	)		(0.27	)		(0.13	)		(0.09	)		(0.06	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		1.85			7.25			2.66			(1.69	)		2.41			0.28
Total from Investment Operations		1.67			6.98			2.53			(1.78	)		2.35			0.18
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.01	)
Net Realized Gain		—			(0.78	)		(0.44	)		(0.04	)		(0.04	)		—
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.78	)		(0.44	)		(0.04	)		(0.04	)		(0.01	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	20.04		$	18.37		$	12.17		$	10.08		$	11.90		$	9.59
Total Return⁽⁴⁾		9.09	%⁽⁷⁾		57.59	%		25.14	%		(15.02	)%		24.53	%		1.89	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8,793		$	3,395		$	1,007		$	780		$	926		$	587
Ratio of Expenses Before Expense Limitation		2.19	%⁽⁸⁾		2.63	%		2.82	%		2.75	%		2.80	%		3.08	%
Ratio of Expenses After Expense Limitation		2.16	%⁽⁵⁾⁽⁸⁾		2.29	%⁽⁵⁾		2.30	%⁽⁵⁾		2.30	%⁽⁵⁾		2.29	%⁽⁵⁾		2.28	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.16	%⁽⁵⁾⁽⁸⁾		N/A			2.29	%⁽⁵⁾		2.29	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Loss		(1.94	)%⁽⁵⁾⁽⁸⁾		(1.88	)%⁽⁵⁾		(1.18	)%⁽⁵⁾		(0.83	)%⁽⁵⁾		(0.49	)%⁽⁵⁾		(0.99	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%
Portfolio Turnover Rate		5	%⁽⁷⁾		57	%		58	%		47	%		79	%		45	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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 which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Leaders Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.45		$	12.71		$	10.38		$	12.14		$	9.73		$	9.45
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.09	)		(0.09	)		0.00	⁽³⁾		0.04			0.08			(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		1.98			7.61			2.77			(1.74	)		2.45			0.29
Total from Investment Operations		1.89			7.52			2.77			(1.70	)		2.53			0.29
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.02	)		(0.08	)		(0.01	)
Net Realized Gain		—			(0.78	)		(0.44	)		(0.04	)		(0.04	)		—
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.78	)		(0.44	)		(0.06	)		(0.12	)		(0.01	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	21.34		$	19.45		$	12.71		$	10.38		$	12.14		$	9.73
Total Return⁽⁴⁾		9.72	%⁽⁷⁾		59.39	%		26.73	%		(14.03	)%		26.02	%		3.09	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	44,837		$	27,230		$	19,838		$	12,779		$	14,868		$	88,880
Ratio of Expenses Before Expense Limitation		1.13	%⁽⁸⁾		1.42	%		1.53	%		1.44	%		1.42	%		1.31	%
Ratio of Expenses After Expense Limitation		1.10	%⁽⁵⁾⁽⁸⁾		1.09	%⁽⁵⁾		1.10	%⁽⁵⁾		1.10	%⁽⁵⁾		1.09	%⁽⁵⁾		1.08	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.10	%⁽⁵⁾⁽⁸⁾		N/A			1.09	%⁽⁵⁾		1.09	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		(0.89	)%⁽⁵⁾⁽⁸⁾		(0.65	)%⁽⁵⁾		0.00	%⁽⁵⁾⁽⁶⁾		0.38	%⁽⁵⁾		0.72	%⁽⁵⁾		(0.00	)%⁽⁵⁾⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%
Portfolio Turnover Rate		5	%⁽⁷⁾		57	%		58	%		47	%		79	%		45	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Leaders Portfolio

	Class IR
Selected Per Share Data and Ratios	Period from April 12, 2021⁽¹⁾ to June 30, 2021 (unaudited)
Net Asset Value, Beginning of Period	$	19.37
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.03	)
Net Realized and Unrealized Gain		2.00
Total from Investment Operations		1.97
Redemption Fees		0.00	⁽³⁾
Net Asset Value, End of Period	$	21.34
Total Return⁽⁴⁾		10.17	%⁽⁵⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	11
Ratio of Expenses Before Expense Limitation		14.47	%⁽⁶⁾
Ratio of Expenses After Expense Limitation		1.10	%⁽⁶⁾
Ratio of Net Investment Loss		(0.79	)%⁽⁶⁾
Portfolio Turnover Rate		5	%⁽⁵⁾

(1) Commencement of Offering.

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

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

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

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Emerging Markets Leaders Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class C, Class IS and Class IR. On April 12, 2021, the Fund commenced offering Class IR shares.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Banks	$	14,645	$	—	$	—	$	14,645
Beverages		6,952		—		—		6,952
Chemicals		15,494		—		—		15,494
Consumer Finance		15,034		—		—		15,034
Diversified Consumer Services		3,936		—		—		3,936
Electrical Equipment		6,291		—		—		6,291
Entertainment		34,148		—		—		34,148
Health Care Providers & Services		9,525		—		—		9,525
Information Technology Services		16,906		—		—		16,906
Insurance		3,630		—		—		3,630

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Interactive Media & Services	$	13,998	$	—	$	—	$	13,998
Internet & Direct Marketing Retail		55,798		—		—		55,798
Personal Products		3,556		—		—		3,556
Real Estate Management & Development		3,146		—		—		3,146
Semiconductors & Semiconductor Equipment		38,199		—		—		38,199
Software		8,595		—		—		8,595
Textiles, Apparel & Luxury Goods		26,657		—		—		26,657
Total Common Stocks		276,510		—		—		276,510
Short-Term Investment
Investment Company		5,566		—		—		5,566
Total Assets	$	282,076	$	—	$	—	$	282,076

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.

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. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares, Class IS shares and Class IR shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

7. Security Transactions, Income and Expenses:
Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.90	%			0.85	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.87% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses,

excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.20% for Class I shares, 1.55% for Class A shares, 2.30% for Class C shares, 1.10% for Class IS shares and 1.10% for Class IR shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $26,000 of advisory fees were waived and approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

The Company has adopted a Distribution and Shareholder Services Plan with respect to Class C shares pursuant to Rule 12b-1 under the Act. Under the Distribution and

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.75% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

E. 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. Security Transactions and Transactions with
Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $151,995,000 and $9,763,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, 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, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	5,488			$	86,354			$	86,276			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	5,566

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	1,256	$	2,930	$	—	$	1,705

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	205			$	122

interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2021, the Fund did not have any borrowings under the Facility.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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. The Board noted that the Fund's contractual management fee was higher than but close to its peer group average and actual 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management 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

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

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

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

IFIEMLSAN
3692229 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Emerging Markets Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Emerging Markets Portfolio Class I	$	1,000.00	$	1,091.60	$	1,019.59	$	5.45	$	5.26		1.05	%
Emerging Markets Portfolio Class A		1,000.00		1,089.90		1,018.10		7.00		6.76		1.35
Emerging Markets Portfolio Class L		1,000.00		1,087.00		1,015.37		9.83		9.49		1.90
Emerging Markets Portfolio Class C		1,000.00		1,085.80		1,014.13		11.12		10.74		2.15
Emerging Markets Portfolio Class IS		1,000.00		1,092.00		1,020.08		4.93		4.76		0.95
Emerging Markets Portfolio Class IR		1,000.00		1,092.00		1,020.08		4.93		4.76		0.95

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Emerging Markets Portfolio

	Shares		Value (000)
Common Stocks (99.1%)
Argentina (1.3%)
Globant SA (a)		47,361	$	10,381
Brazil (5.8%)
Hapvida Participacoes e Investimentos SA		2,813,241		8,716
Localiza Rent a Car SA		527,839		6,792
Lojas Renner SA		1,223,517		10,881
Pagseguro Digital Ltd., Class A (a)(b)		83,999		4,697
Petroleo Brasileiro SA		1,226,146		7,467
Petroleo Brasileiro SA (Preference)		1,321,453		7,819
				46,372
China (22.9%)
Alibaba Group Holding Ltd. (a)(c)		1,002,172		28,396
Anhui Conch Cement Co., Ltd., Class A		840,067		5,337
China Construction Bank Corp. H Shares (c)		12,988,120		10,221
China Mengniu Dairy Co., Ltd. (a)(c)		1,697,000		10,262
China Resources Beer Holdings Co., Ltd. (c)		1,560,000		14,014
Jiangsu Hengrui Medicine Co., Ltd., Class A		243,859		2,565
Kweichow Moutai Co., Ltd., Class A		60,049		19,114
Meituan, Class B (a)(c)		168,600		6,957
New Oriental Education & Technology Group, Inc. ADR (a)		552,205		4,523
Ping An Insurance Group Co. of China Ltd., Class A		416,674		4,145
Ping An Insurance Group Co. of China Ltd. H Shares (c)		268,000		2,625
Shenzhou International Group Holdings Ltd. (c)		561,300		14,177
TAL Education Group ADR (a)		79,627		2,009
Tencent Holdings Ltd. (c)		715,300		53,802
Wuxi Biologics Cayman, Inc. (a)(c)		284,500		5,214
				183,361
Germany (1.0%)
Infineon Technologies AG		200,769		8,051
Hong Kong (1.0%)
Hong Kong Exchanges & Clearing Ltd.		136,100		8,112
India (9.3%)
Asian Paints Ltd.		126,911		5,110
Bharti Airtel Ltd.		705,533		4,989
Eicher Motors Ltd. (a)		82,273		2,957
HDFC Bank Ltd. ADR (a)		89,188		6,521
Housing Development Finance Corp., Ltd.		288,282		9,600
ICICI Bank Ltd. (a)		1,184,999		10,058
ICICI Prudential Life Insurance Co., Ltd.		626,008		5,160
Infosys Ltd.		357,609		7,605
Infosys Ltd. ADR		135,891		2,880
Mahindra & Mahindra Ltd.		408,467		4,274
Reliance Industries Ltd.		538,851		11,830
Shree Cement Ltd. (a)		9,326		3,451
				74,435
Indonesia (1.0%)
Bank Central Asia Tbk PT		3,974,700		8,258

	Shares		Value (000)
Korea, Republic of (11.1%)
Hyundai Motor Co.		15,677	$	3,334
Kakao Corp.		99,531		14,406
Kia Motors Corp.		39,459		3,139
LG Chem Ltd.		4,933		3,723
NAVER Corp.		12,712		4,713
Samsung Biologics Co., Ltd. (a)		5,685		4,246
Samsung Electronics Co., Ltd.		613,913		43,993
Samsung SDI Co., Ltd.		10,318		6,395
SK Hynix, Inc.		45,072		5,103
				89,052
Mexico (1.6%)
Grupo Aeroportuario del Centro Norte SAB de CV (a)		1,565,491		10,255
Grupo Aeroportuario del Sureste SAB de CV, Class B (a)		135,679		2,498
				12,753
Netherlands (2.1%)
ASML Holding N.V.		24,556		16,964
Panama (1.0%)
Copa Holdings SA, Class A (a)		111,179		8,375
Poland (2.1%)
Allegro.eu SA (a)		308,556		5,310
LPP SA (a)		3,301		11,142
				16,452
Russia (8.7%)
Fix Price Group Ltd. GDR (a)		310,119		2,714
Fix Price Group Ltd. GDR (Euroclear) (a)		98,708		864
LUKOIL PJSC ADR		99,196		9,187
Novatek PJSC (Registered GDR)		54,747		12,006
Novolipetsk Steel PJSC GDR		295,973		9,323
Ozon Holdings PLC ADR (a)(b)		103,420		6,062
TCS Group Holding PLC GDR		204,110		17,860
Yandex N.V., Class A (a)		166,093		11,751
				69,767
Singapore (1.7%)
Sea Ltd. ADR (a)		48,623		13,352
South Africa (5.3%)
Anglo American Platinum Ltd.		60,300		6,965
Anglo American PLC		487,677		19,446
Capitec Bank Holdings Ltd.		80,545		9,512
Clicks Group Ltd. (b)		358,142		6,162
				42,085
Taiwan (14.9%)
Airtac International Group		137,000		5,286
ASE Technology Holding Co., Ltd.		3,006,626		12,086
Delta Electronics, Inc.		1,368,000		14,877
MediaTek, Inc.		171,000		5,904
Novatek Microelectronics Corp.		222,000		3,976
Silergy Corp.		41,000		5,577
Taiwan Semiconductor Manufacturing Co., Ltd.		3,348,205		71,500
				119,206

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Portfolio

	Shares		Value (000)
United Kingdom (2.8%)
Avast PLC		1,067,889	$	7,235
Mondi PLC		562,829		14,820
				22,055
United States (5.5%)
Applied Materials, Inc.		50,622		7,208
EPAM Systems, Inc. (a)		20,256		10,350
Lam Research Corp.		10,353		6,737
MercadoLibre, Inc. (a)		7,464		11,627
NIKE, Inc., Class B		50,396		7,786
				43,708
Total Common Stocks (Cost $467,283)				792,739
Short-Term Investments (1.5%)
Investment Company (0.8%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $6,363)		6,362,514		6,363
Securities held as Collateral on Loaned Securities (0.7%)
Investment Company (0.7%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $5,987)		5,987,080		5,987
Total Short-Term Investments (Cost $12,350)				12,350
Total Investments (100.6%) (Cost $479,633) Including $15,418 of Securities Loaned (d)				805,089
Liabilities in Excess of Other Assets (–0.6%)				(4,842	)
Net Assets (100.0%)			$	800,247

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2021.

(d) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $330,432,000 and the aggregate gross unrealized depreciation is approximately $4,976,000, resulting in net unrealized appreciation of approximately $325,456,000.

ADR American Depositary Receipt.

GDR Global Depositary Receipt.

PJSC Public Joint Stock Company.

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		44.8	%
Semiconductors & Semiconductor Equipment		17.9
Interactive Media & Services		10.6
Banks		7.8
Internet & Direct Marketing Retail		7.3
Oil, Gas & Consumable Fuels		6.1
Tech Hardware, Storage & Peripherals		5.5
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $467,283)	$	792,739
Investment in Security of Affiliated Issuer, at Value (Cost $12,350)		12,350
Total Investments in Securities, at Value (Cost $479,633)		805,089
Foreign Currency, at Value (Cost $4,965)		5,069
Cash		23
Dividends Receivable		857
Tax Reclaim Receivable		165
Receivable for Fund Shares Sold		84
Receivable from Securities Lending Income		2
Receivable from Affiliate		—	@
Other Assets		194
Total Assets		811,483
Liabilities:
Collateral on Securities Loaned, at Value		5,987
Deferred Capital Gain Country Tax		1,758
Payable for Advisory Fees		1,580
Payable for Investments Purchased		1,403
Payable for Custodian Fees		141
Payable for Fund Shares Redeemed		108
Payable for Professional Fees		45
Payable for Administration Fees		40
Payable for Sub Transfer Agency Fees — Class I		26
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees		10
Payable for Transfer Agency Fees — Class I		9
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Shareholder Services Fees — Class A		2
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		1
Other Liabilities		124
Total Liabilities		11,236
Net Assets	$	800,247
Net Assets Consist of:
Paid-in-Capital	$	460,523
Total Distributable Earnings		339,724
Net Assets	$	800,247

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	322,550
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		11,005,168
Net Asset Value, Offering and Redemption Price Per Share	$	29.31
CLASS A:
Net Assets	$	9,060
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		318,097
Net Asset Value, Redemption Price Per Share	$	28.48
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.58
Maximum Offering Price Per Share	$	30.06
CLASS L:
Net Assets	$	246
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		8,888
Net Asset Value, Offering and Redemption Price Per Share	$	27.73
CLASS C:
Net Assets	$	835
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		30,413
Net Asset Value, Offering and Redemption Price Per Share	$	27.46
CLASS IS:
Net Assets	$	467,543
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		15,947,955
Net Asset Value, Offering and Redemption Price Per Share	$	29.32
CLASS IR:
Net Assets	$	13
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		439
Net Asset Value, Offering and Redemption Price Per Share	$	29.32
⁽¹⁾ Including: Securities on Loan, at Value:	$	15,418

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $823 of Foreign Taxes Withheld)	$	5,024
Income from Securities Loaned — Net		15
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		5,040
Expenses:
Advisory Fees (Note B)		3,217
Administration Fees (Note C)		317
Custodian Fees (Note F)		163
Sub Transfer Agency Fees — Class I		143
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Professional Fees		74
Registration Fees		36
Transfer Agency Fees — Class I (Note E)		19
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Transfer Agency Fees — Class IR (Note E)		1
Shareholder Services Fees — Class A (Note D)		11
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		4
Shareholder Reporting Fees		14
Directors' Fees and Expenses		5
Pricing Fees		3
Other Expenses		16
Total Expenses		4,034
Waiver of Advisory Fees (Note B)		(84	)
Rebate from Morgan Stanley Affiliate (Note G)		(4	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Net Expenses		3,943
Net Investment Income		1,097
Realized Gain (Loss):
Investments Sold (Net of $(339) of Capital Gain Country Tax)		54,834
Foreign Currency Translation		(126	)
Net Realized Gain		54,708
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $579)		11,610
Foreign Currency Translation		111
Net Change in Unrealized Appreciation (Depreciation)		11,721
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		66,429
Net Increase in Net Assets Resulting from Operations	$	67,526

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Emerging Markets Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,097		$	4,207
Net Realized Gain (Loss)		54,708			(28,725	)
Net Change in Unrealized Appreciation (Depreciation)		11,721			128,241
Net Increase in Net Assets Resulting from Operations		67,526			103,723
Dividends and Distributions to Shareholders:
Class I		—			(3,316	)
Class A		—			(58	)
Class L		—			(1	)
Class C		—			(3	)
Class IS		—			(5,074	)
Class IR		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(8,452	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		28,841			61,286
Distributions Reinvested		—			3,187
Redeemed		(46,827	)		(73,298	)
Class A:
Subscribed		1,734			1,609
Distributions Reinvested		—			58
Redeemed		(1,337	)		(5,575	)
Class L:
Exchanged		38			50
Distributions Reinvested		—			1
Redeemed		(26	)		(54	)
Class C:
Subscribed		282			42
Distributions Reinvested		—			3
Redeemed		(26	)		(27	)
Class IS:
Subscribed		24,830			27,884
Distributions Reinvested		—			5,074
Redeemed		(36,632	)		(167,078	)
Class IR:
Distributions Reinvested		—			—	@
Net Decrease in Net Assets Resulting from Capital Share Transactions		(29,123	)		(146,838	)
Redemption Fees		—	@		12
Total Increase (Decrease) in Net Assets		38,403			(51,555	)
Net Assets:
Beginning of Period		761,844			813,399
End of Period	$	800,247		$	761,844

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Emerging Markets Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,008			3,098
Shares Issued on Distributions Reinvested		—			121
Shares Redeemed		(1,653	)		(3,267	)
Net Decrease in Class I Shares Outstanding		(645	)		(48	)
Class A:
Shares Subscribed		64			75
Shares Issued on Distributions Reinvested		—			2
Shares Redeemed		(48	)		(260	)
Net Increase (Decrease) in Class A Shares Outstanding		16			(183	)
Class L:
Shares Exchanged		1			2
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		(3	)
Net Increase (Decrease) in Class L Shares Outstanding		—	@@		(1	)
Class C:
Shares Subscribed		10			2
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		(1	)
Net Increase in Class C Shares Outstanding		9			1
Class IS:
Shares Subscribed		866			1,282
Shares Issued on Distributions Reinvested		—			193
Shares Redeemed		(1,321	)		(7,218	)
Net Decrease in Class IS Shares Outstanding		(455	)		(5,743	)
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	26.85		$	23.69		$	22.53		$	27.95		$	20.83		$	19.68
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.03			0.13			0.41			0.28			0.19			0.17
Net Realized and Unrealized Gain (Loss)		2.43			3.32			3.92			(5.15	)		7.10			1.15
Total from Investment Operations		2.46			3.45			4.33			(4.87	)		7.29			1.32
Distributions from and/or in Excess of:
Net Investment Income		—			(0.14	)		(0.18	)		(0.35	)		(0.17	)		(0.17	)
Net Realized Gain		—			(0.15	)		(2.99	)		(0.20	)		—			—
Total Distributions		—			(0.29	)		(3.17	)		(0.55	)		(0.17	)		(0.17	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	29.31		$	26.85		$	23.69		$	22.53		$	27.95		$	20.83
Total Return⁽⁴⁾		9.16	%⁽⁸⁾		14.58	%		19.44	%		(17.32	)%		34.97	%		6.73	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	322,550		$	312,834		$	277,114		$	229,132		$	342,400		$	282,674
Ratio of Expenses Before Expense Limitation		1.07	%⁽⁹⁾		1.10	%		1.16	%		N/A			1.07	%		1.16	%
Ratio of Expenses After Expense Limitation		1.05	%⁽⁵⁾⁽⁹⁾		1.05	%⁽⁵⁾		1.05	%⁽⁵⁾		1.03	%⁽⁵⁾		1.04	%⁽⁵⁾		1.11	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.05	%⁽⁵⁾		1.05	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.22	%⁽⁵⁾⁽⁹⁾		0.58	%⁽⁵⁾		1.69	%⁽⁵⁾		1.08	%⁽⁵⁾		0.75	%⁽⁵⁾		0.83	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		15	%⁽⁸⁾		57	%		58	%		56	%		35	%		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 and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

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

(6) Effective September 30, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.05% for Class I shares. Prior to September 30, 2016, the maximum ratio was 1.20% 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.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	26.13		$	23.05		$	21.99		$	27.24		$	20.31		$	19.19
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.01	)		0.05			0.30			0.20			0.10			0.11
Net Realized and Unrealized Gain (Loss)		2.36			3.22			3.85			(5.01	)		6.92			1.11
Total from Investment Operations		2.35			3.27			4.15			(4.81	)		7.02			1.22
Distributions from and/or in Excess of:
Net Investment Income		—			(0.04	)		(0.10	)		(0.24	)		(0.09	)		(0.10	)
Net Realized Gain		—			(0.15	)		(2.99	)		(0.20	)		—			—
Total Distributions		—			(0.19	)		(3.09	)		(0.44	)		(0.09	)		(0.10	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	28.48		$	26.13		$	23.05		$	21.99		$	27.24		$	20.31
Total Return⁽⁴⁾		8.99	%⁽⁸⁾		14.21	%		19.08	%		(17.58	)%		34.54	%		6.37	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,060		$	7,907		$	11,195		$	13,605		$	23,952		$	18,824
Ratio of Expenses Before Expense Limitation		1.37	%⁽⁹⁾		1.43	%		1.43	%		N/A			1.40	%		1.48	%
Ratio of Expenses After Expense Limitation		1.35	%⁽⁵⁾⁽⁹⁾		1.38	%⁽⁵⁾		1.34	%⁽⁵⁾		1.34	%⁽⁵⁾		1.36	%⁽⁵⁾		1.45	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.38	%⁽⁵⁾		1.34	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.07	)%⁽⁵⁾⁽⁹⁾		0.24	%⁽⁵⁾		1.26	%⁽⁵⁾		0.78	%⁽⁵⁾		0.42	%⁽⁵⁾		0.55	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		15	%⁽⁸⁾		57	%		58	%		56	%		35	%		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 A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

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

(6) Effective September 30, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.40% for Class A shares. Prior to September 30, 2016, the maximum ratio was 1.55% for Class A shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	25.51		$	22.59		$	21.64		$	26.85		$	20.08		$	18.98
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.08	)		(0.08	)		0.17			0.05			(0.01	)		0.00	⁽³⁾
Net Realized and Unrealized Gain (Loss)		2.30			3.15			3.77			(4.91	)		6.80			1.10
Total from Investment Operations		2.22			3.07			3.94			(4.86	)		6.79			1.10
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.15	)		(0.02	)		—
Net Realized Gain		—			(0.15	)		(2.99	)		(0.20	)		—			—
Total Distributions		—			(0.15	)		(2.99	)		(0.35	)		(0.02	)		—
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	27.73		$	25.51		$	22.59		$	21.64		$	26.85		$	20.08
Total Return⁽⁴⁾		8.70	%⁽⁸⁾		13.65	%		18.37	%		(18.03	)%		33.80	%		5.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	246		$	215		$	210		$	292		$	253		$	239
Ratio of Expenses Before Expense Limitation		2.52	%⁽⁹⁾		3.06	%		2.47	%		2.55	%		2.54	%		2.69	%
Ratio of Expenses After Expense Limitation		1.90	%⁽⁵⁾⁽⁹⁾		1.90	%⁽⁵⁾		1.90	%⁽⁵⁾		1.89	%⁽⁵⁾		1.90	%⁽⁵⁾		2.01	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.90	%⁽⁵⁾		1.90	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.62	)%⁽⁵⁾⁽⁹⁾		(0.40	)%⁽⁵⁾		0.73	%⁽⁵⁾		0.20	%⁽⁵⁾		(0.03	)%⁽⁵⁾		0.00	%⁽⁵⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		15	%⁽⁸⁾		57	%		58	%		56	%		35	%		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 L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

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

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

(6) Effective September 30, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.90% for Class L shares. Prior to September 30, 2016, the maximum ratio was 2.05% for Class L shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	25.29		$	22.45		$	21.57		$	26.66		$	19.99		$	18.95
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.12	)		(0.11	)		0.11			0.04			(0.09	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		2.29			3.10			3.76			(4.93	)		6.78			1.09
Total from Investment Operations		2.17			2.99			3.87			(4.89	)		6.69			1.05
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.00	)⁽³⁾		(0.02	)		(0.01	)
Net Realized Gain		—			(0.15	)		(2.99	)		(0.20	)		—			—
Total Distributions		—			(0.15	)		(2.99	)		(0.20	)		(0.02	)		(0.01	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	27.46		$	25.29		$	22.45		$	21.57		$	26.66		$	19.99
Total Return⁽⁴⁾		8.58	%⁽⁸⁾		13.32	%		18.16	%		(18.26	)%		33.45	%		5.56	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	835		$	530		$	454		$	309		$	817		$	608
Ratio of Expenses Before Expense Limitation		2.28	%⁽⁹⁾		2.60	%		2.58	%		2.37	%		2.30	%		2.58	%
Ratio of Expenses After Expense Limitation		2.15	%⁽⁵⁾⁽⁹⁾		2.15	%⁽⁵⁾		2.15	%⁽⁵⁾		2.14	%⁽⁵⁾		2.15	%⁽⁵⁾		2.24	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			2.15	%⁽⁵⁾		2.15	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.87	)%⁽⁵⁾⁽⁹⁾		(0.53	)%⁽⁵⁾		0.47	%⁽⁵⁾		0.17	%⁽⁵⁾		(0.36	)%⁽⁵⁾		(0.19	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		15	%⁽⁸⁾		57	%		58	%		56	%		35	%		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 C 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 which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Effective September 30, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.15% for Class C shares. Prior to September 30, 2016, the maximum ratio was 2.30% for Class C shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	26.85		$	23.68		$	22.52		$	27.96		$	20.83		$	19.68
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.15			0.36			0.31			0.21			0.21
Net Realized and Unrealized Gain (Loss)		2.42			3.33			4.00			(5.17	)		7.11			1.12
Total from Investment Operations		2.47			3.48			4.36			(4.86	)		7.32			1.33
Distributions from and/or in Excess of:
Net Investment Income		—			(0.16	)		(0.21	)		(0.38	)		(0.19	)		(0.18	)
Net Realized Gain		—			(0.15	)		(2.99	)		(0.20	)		—			—
Total Distributions		—			(0.31	)		(3.20	)		(0.58	)		(0.19	)		(0.18	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	29.32		$	26.85		$	23.68		$	22.52		$	27.96		$	20.83
Total Return⁽⁴⁾		9.20	%⁽⁸⁾		14.73	%		19.58	%		(17.25	)%		35.09	%		6.79	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	467,543		$	440,346		$	524,416		$	797,029		$	1,034,348		$	657,106
Ratio of Expenses Before Expense Limitation		0.97	%⁽⁹⁾		1.00	%		1.04	%		N/A			0.98	%		1.07	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁹⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.92	%⁽⁵⁾		0.95	%⁽⁵⁾		1.04	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.32	%⁽⁵⁾⁽⁹⁾		0.67	%⁽⁵⁾		1.47	%⁽⁵⁾		1.21	%⁽⁵⁾		0.82	%⁽⁵⁾		0.99	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.01	%		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		15	%⁽⁸⁾		57	%		58	%		56	%		35	%		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 IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

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

(3) 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.

(6) Effective September 30, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.95% for Class IS shares. Prior to September 30, 2016, the maximum ratio was 1.10% for Class IS shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Portfolio

	Class IR
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	26.85		$	23.68		$	22.54		$	26.23
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.12			0.40			0.20
Net Realized and Unrealized Gain (Loss)		2.42			3.36			3.94			(3.31	)
Total from Investment Operations		2.47			3.48			4.34			(3.11	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.16	)		(0.21	)		(0.38	)
Net Realized Gain		—			(0.15	)		(2.99	)		(0.20	)
Total Distributions		—			(0.31	)		(3.20	)		(0.58	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	29.32		$	26.85		$	23.68		$	22.54
Total Return⁽⁴⁾		9.20	%⁽⁷⁾		14.73	%		19.53	%		(11.82	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	13		$	12		$	10		$	9
Ratio of Expenses Before Expense Limitation		14.76	%⁽⁸⁾		21.21	%		21.52	%		19.46	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.93	%⁽⁵⁾⁽⁸⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		N/A
Ratio of Net Investment Income		0.33	%⁽⁵⁾⁽⁸⁾		0.55	%⁽⁵⁾		1.62	%⁽⁵⁾		1.56	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		(0.01	)%⁽⁸⁾
Portfolio Turnover Rate		15	%⁽⁷⁾		57	%		58	%		56	%

(1) Commencement of Offering.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Emerging Markets Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of issuers in emerging market countries.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Airlines	$	8,375	$	—	$	—	$	8,375
Automobiles		13,704		—		—		13,704
Banks		62,430		—		—		62,430
Beverages		33,128		—		—		33,128
Capital Markets		8,112		—		—		8,112
Chemicals		8,833		—		—		8,833
Construction Materials		8,788		—		—		8,788
Diversified Consumer Services		6,532		—		—		6,532
Electronic Equipment, Instruments & Components		21,272		—		—		21,272
Entertainment		13,352		—		—		13,352
Food & Staples Retailing		6,162		—		—		6,162
Food Products		10,262		—		—		10,262
Health Care Providers & Services		8,716		—		—		8,716
Information Technology Services		35,913		—		—		35,913
Insurance		11,930		—		—		11,930
Interactive Media & Services		84,672		—		—		84,672
Internet & Direct Marketing Retail		58,352		—		—		58,352
Life Sciences Tools & Services		9,460		—		—		9,460
Machinery		5,286		—		—		5,286
Metals & Mining		35,734		—		—		35,734
Multi-Line Retail		11,745		2,714		—		14,459
Oil, Gas & Consumable Fuels		48,309		—		—		48,309
Paper & Forest Products		14,820		—		—		14,820
Pharmaceuticals		2,565		—		—		2,565
Road & Rail		6,792		—		—		6,792
Semiconductors & Semiconductor Equipment		143,106		—		—		143,106
Software		7,235		—		—		7,235
Tech Hardware, Storage & Peripherals		43,993		—		—		43,993
Textiles, Apparel & Luxury Goods		33,105		—		—		33,105
Thrifts & Mortgage Finance		9,600		—		—		9,600
Transportation Infrastructure		12,753		—		—		12,753
Wireless Telecommunication Services		4,989		—		—		4,989
Total Common Stocks		790,025		2,714		—		792,739
Short-Term Investments
Investment Company		12,350		—		—		12,350
Total Assets	$	802,375	$	2,714	$	—	$	805,089

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	15,418	(a)	$	—	$	(15,418	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $5,987,000, 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 $10,087,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

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	$	5,987	$	—	$	—	$	—	$	5,987
Total Borrowings	$	5,987	$	—	$	—	$	—	$	5,987
Gross amount of recognized liabilities for securities lending transactions									$	5,987

5. Redemption Fees: The Fund will assess a 2% redemption fee, on Class I shares, Class A shares, Class L shares, Class C shares, Class IS shares and Class IR shares which

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

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, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.79% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.05% for Class I shares, 1.40% for Class A shares, 1.90% for Class L shares, 2.15% for Class C shares, 0.95% for Class IS shares and 0.95% for Class IR shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $84,000 of advisory fees were waived and approximately $3,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $114,991,000 and $143,523,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $4,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	8,941			$	87,120			$	83,711			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	12,350

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly,

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

no provision for federal income taxes is required in the financial statements.

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, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	4,274	$	4,178	$	6,000	$	91,318

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	6,770			$	—

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $24,243,000 and $12,199,000, respectively, that do not have an expiration date.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management 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

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

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

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

IFIEMSAN
3692186 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Small Cap Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					9
Notes to Financial Statements					13
Investment Advisory Agreement Approval					20
Liquidity Risk Management Program					22
U.S. Customer Privacy Notice					23
Director and Officer Information					26

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Emerging Markets Small Cap Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Emerging Markets Small Cap Portfolio Class I	$	1,000.00	$	1,168.50	$	1,018.35	$	6.99	$	6.51		1.30	%
Emerging Markets Small Cap Portfolio Class A		1,000.00		1,166.80		1,016.61		8.86		8.25		1.65
Emerging Markets Small Cap Portfolio Class C		1,000.00		1,162.00		1,012.89		12.87		11.98		2.40
Emerging Markets Small Cap Portfolio Class IS		1,000.00		1,169.40		1,018.60		6.72		6.26		1.25

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Emerging Markets Small Cap Portfolio

	Shares		Value (000)
Common Stocks (97.9%)
Brazil (11.8%)
Afya Ltd., Class A (a)		63,023	$	1,625
Ambipar Participacoes e Empreendimentos S/A		308,840		2,825
Boa Vista Serviscos SA		929,345		2,053
Enjoei.com.br Atividades de Internet SA (a)		366,705		757
Neogrid Participacoes SA		653,273		751
Pet Center Comercio e Participacoes SA		239,392		1,240
TOTVS SA		229,537		1,738
Vasta Platform Ltd. (a)		112,798		916
				11,905
China (11.6%)
360 DigiTech, Inc. (a)		77,144		3,228
Archosaur Games, Inc. (b)		532,000		1,017
Baozun, Inc., Class A (a)(b)		88,766		1,103
China New Higher Education Group Ltd. (b)(c)		2,786,000		1,909
Jiangsu Nhwa Pharmaceutical Co. Ltd., Class A		407,908		969
Sichuan Swellfun Co. Ltd., Class A		50,800		993
Yeahka Ltd. (a)(b)(c)		155,200		976
Zhou Hei Ya International Holdings Co., Ltd. (a)(b)		1,306,000		1,566
				11,761
Egypt (4.1%)
Cairo Investment & Real Estate Development Co. SAE		1,655,254		1,180
Edita Food Industries SAE		3,287,647		1,707
Fawry for Banking & Payment Technology Services SAE (a)		1,071,319		1,289
				4,176
India (15.3%)
Blue Star Ltd. (a)		84,347		926
Can Fin Homes Ltd.		264,800		1,865
Cholamandalam Investment and Finance Co., Ltd.		186,846		1,290
Dr Lal PathLabs Ltd.		28,418		1,251
Happiest Minds Technologies Ltd.		244,328		3,301
Home First Finance Co. India Ltd. (a)		189,145		1,377
Indiamart Intermesh Ltd. (a)		11,695		1,100
Info Edge India Ltd.		13,145		869
TCI Express Ltd.		72,331		1,401
VA Tech Wabag Ltd. (a)		241,530		1,136
Varun Beverages Ltd.		96,358		946
				15,462
Indonesia (3.2%)
Bank BTPN Syariah Tbk PT		7,831,900		1,556
Map Aktif Adiperkasa PT (a)		5,706,300		728
Mitra Keluarga Karyasehat Tbk PT		4,704,000		908
				3,192
Kazakhstan (1.4%)
NAC Kazatomprom JSC GDR		50,014		1,450
Korea, Republic of (12.6%)
AfreecaTV Co., Ltd. (c)		29,939		3,164
Hyundai Ezwel Co., Ltd.		123,928		1,299

	Shares		Value (000)
KINX, Inc.		23,653	$	1,432
Nasmedia Co., Ltd.		38,588		1,417
Settle Bank, Inc. (Korea)		62,531		1,932
Studio Dragon Corp. (a)		19,862		1,690
Webcash Corp.		54,540		1,736
				12,670
Pakistan (0.4%)
MCB Bank Ltd.		364,025		372
Philippines (2.3%)
Converge ICT Solutions, Inc. (a)		4,927,400		2,291
Poland (6.2%)
11 bit studios SA (a)		9,342		1,169
Grupa Kety SA		16,823		2,864
LiveChat Software SA		62,374		2,254
				6,287
Russia (3.5%)
Detsky Mir PJSC		482,173		995
Ozon Holdings PLC ADR (a)		43,100		2,527
				3,522
Saudi Arabia (2.0%)
United Electronics Co.		57,710		2,046
South Africa (1.7%)
Transaction Capital Ltd.		663,240		1,757
Taiwan (15.8%)
Acer Cyber Security, Inc.		155,378		586
ASPEED Technology, Inc.		22,000		1,587
Chief Telecom, Inc.		178,960		1,930
eCloudvalley Digital Technology Co. Ltd.		190,058		3,001
Innodisk Corp.		210,300		1,438
Merida Industry Co., Ltd.		159,000		1,786
momo.com, Inc.		36,000		2,435
Poya International Co., Ltd. (a)		77,492		1,510
Sunny Friend Environmental Technology Co., Ltd.		219,000		1,651
				15,924
Thailand (2.6%)
Humanica PCL (Foreign Shares)		2,556,700		738
Srisawad Corp., PCL (Foreign Shares)		891,600		1,912
				2,650
United Arab Emirates (1.8%)
Network International Holdings PLC (a)		351,208		1,777
United States (1.6%)
Grid Dynamics Holdings, Inc. (a)		107,074		1,609
Total Common Stocks (Cost $74,865)				98,851

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Small Cap Portfolio

	Shares		Value (000)
Short-Term Investments (2.9%)
Investment Company (2.8%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $2,793)		2,792,773	$	2,793
Securities held as Collateral on Loaned Securities (0.1%)
Investment Company (0.1%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $117)		116,848		117
Total Short-Term Investments (Cost $2,910)				2,910
Total Investments (100.8%) (Cost $77,775) Including $3,778 of Securities Loaned (d)				101,761
Liabilities in Excess of Other Assets (–0.8%)				(832	)
Net Assets (100.0%)			$	100,929

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(d) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $27,791,000 and the aggregate gross unrealized depreciation is approximately $3,805,000, resulting in net unrealized appreciation of approximately $23,986,000.

ADR American Depositary Receipt.

GDR Global Depositary Receipt.

PJSC Public Joint Stock Company.

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		51.5	%
Information Technology Services		14.2
Software		8.4
Consumer Finance		8.1
Internet & Direct Marketing Retail		6.7
Diversified Telecommunication Services		5.6
Diversified Consumer Services		5.5
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Small Cap Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $74,865)	$	98,851
Investment in Security of Affiliated Issuer, at Value (Cost $2,910)		2,910
Total Investments in Securities, at Value (Cost $77,775)		101,761
Foreign Currency, at Value (Cost $210)		210
Dividends Receivable		178
Receivable for Investments Sold		91
Tax Reclaim Receivable		7
Receivable from Securities Lending Income		5
Receivable from Affiliate		—	@
Other Assets		48
Total Assets		102,300
Liabilities:
Deferred Capital Gain Country Tax		897
Payable for Advisory Fees		183
Collateral on Securities Loaned, at Value		117
Payable for Investments Purchased		58
Payable for Professional Fees		54
Payable for Custodian Fees		47
Payable for Administration Fees		7
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Sub Transfer Agency Fees — Class I		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		8
Total Liabilities		1,371
Net Assets	$	100,929
Net Assets Consist of:
Paid-in-Capital	$	81,896
Total Distributable Earnings		19,033
Net Assets	$	100,929
CLASS I:
Net Assets	$	100,571
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		6,940,628
Net Asset Value, Offering and Redemption Price Per Share	$	14.49
CLASS A:
Net Assets	$	312
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		21,756
Net Asset Value, Redemption Price Per Share	$	14.34
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.79
Maximum Offering Price Per Share	$	15.13
CLASS C:
Net Assets	$	31
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,220
Net Asset Value, Offering and Redemption Price Per Share	$	13.99
CLASS IS:
Net Assets	$	15
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,024
Net Asset Value, Offering and Redemption Price Per Share	$	14.50
⁽¹⁾ Including: Securities on Loan, at Value:	$	3,778

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Emerging Markets Small Cap Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $81 of Foreign Taxes Withheld)	$	590
Income from Securities Loaned — Net		28
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		618
Expenses:
Advisory Fees (Note B)		574
Professional Fees		66
Custodian Fees (Note F)		50
Administration Fees (Note C)		37
Sub Transfer Agency Fees — Class I		37
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Registration Fees		24
Shareholder Reporting Fees		7
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		3
Pricing Fees		2
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Interest Expenses		1
Other Expenses		6
Total Expenses		811
Waiver of Advisory Fees (Note B)		(195	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(15	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		598
Net Investment Income		20
Realized Gain (Loss):
Investments Sold (Net of $112 of Capital Gain Country Tax)		4,386
Foreign Currency Translation		(14	)
Net Realized Gain		4,372
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $342)		10,030
Foreign Currency Translation		(5	)
Net Change in Unrealized Appreciation (Depreciation)		10,025
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		14,397
Net Increase in Net Assets Resulting from Operations	$	14,417

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 202

Emerging Markets Small Cap Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	20		$	(192	)
Net Realized Gain (Loss)		4,372			(4,954	)
Net Change in Unrealized Appreciation (Depreciation)		10,025			7,616
Net Increase in Net Assets Resulting from Operations		14,417			2,470
Dividends and Distributions to Shareholders:
Class I		—			(1,482	)
Class A		—			(4	)
Class C		—			(—	@)
Class IS		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(1,486	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		4,712			32,697
Distributions Reinvested		—			897
Redeemed		(3,046	)		(10,537	)
Class A:
Subscribed		70			78
Distributions Reinvested		—			4
Redeemed		(56	)		(67	)
Class C:
Subscribed		3			—	@
Distributions Reinvested		—			—	@
Redeemed		(3	)		(11	)
Class IS:
Distributions Reinvested		—			—	@
Redeemed		—			(7,045	)
Net Increase in Net Assets Resulting from Capital Share Transactions		1,680			16,016
Redemption Fees		1			1
Total Increase in Net Assets		16,098			17,001
Net Assets:
Beginning of Period		84,831			67,830
End of Period	$	100,929		$	84,831
(1) Capital Share Transactions:
Class I:
Shares Subscribed		354			2,922
Shares Issued on Distributions Reinvested		—			73
Shares Redeemed		(231	)		(1,153	)
Net Increase in Class I Shares Outstanding		123			1,842
Class A:
Shares Subscribed		5			8
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(4	)		(7	)
Net Increase in Class A Shares Outstanding		1			1
Class C:
Shares Subscribed		—	@@		—
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		(1	)
Net Decrease in Class C Shares Outstanding		—			(1	)
Class IS:
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		—			(688	)
Net Decrease in Class IS Shares Outstanding		—			(688	)

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Small Cap Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016
Net Asset Value, Beginning of Period	$	12.40		$	11.93		$	10.61		$	12.77		$	9.85		$	10.28
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		—			(0.03	)		0.09			0.02			(0.01	)		0.02
Net Realized and Unrealized Gain (Loss)		2.09			0.72			1.29			(2.01	)		3.38			(0.35	)
Total from Investment Operations		2.09			0.69			1.38			(1.99	)		3.37			(0.33	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.06	)		—			—			(0.10	)
Net Realized Gain		—			—			—			(0.17	)		(0.45	)		—
Total Distributions		—			(0.22	)		(0.06	)		(0.17	)		(0.45	)		(0.10	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		—			—
Net Asset Value, End of Period	$	14.49		$	12.40		$	11.93		$	10.61		$	12.77		$	9.85
Total Return⁽³⁾		16.85	%⁽⁷⁾		5.80	%		12.98	%		(15.73	)%		34.29	%		(3.19	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	100,571		$	84,535		$	59,335		$	48,965		$	25,762		$	19,673
Ratio of Expenses Before Expense Limitation		1.76	%⁽⁸⁾		1.96	%		1.83	%		2.18	%		2.58	%		2.63	%
Ratio of Expenses After Expense Limitation		1.30	%⁽⁴⁾⁽⁸⁾		1.30	%⁽⁴⁾		1.30	%⁽⁴⁾		1.41	%⁽⁴⁾⁽⁵⁾		1.57	%⁽⁴⁾		1.61	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.30	%⁽⁴⁾⁽⁸⁾		1.30	%⁽⁴⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.04	%⁽⁴⁾⁽⁸⁾		(0.31	)%⁽⁴⁾		0.74	%⁽⁴⁾		0.14	%⁽⁴⁾		(0.09	)%⁽⁴⁾		0.16	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.04	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		29	%⁽⁷⁾		140	%		69	%		70	%		71	%		69	%

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

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

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

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

(5) Effective July 13, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.30% for Class I shares. Prior to July 13, 2018, the maximum ratio was 1.65% 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.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Small Cap Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016
Net Asset Value, Beginning of Period	$	12.29		$	11.83		$	10.53		$	12.72		$	9.85		$	10.28
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.02	)		(0.07	)		0.05			(0.01	)		(0.06	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		2.07			0.71			1.27			(2.01	)		3.38			(0.35	)
Total from Investment Operations		2.05			0.64			1.32			(2.02	)		3.32			(0.37	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.18	)		(0.02	)		—			—			(0.06	)
Net Realized Gain		—			—			—			(0.17	)		(0.45	)		—
Total Distributions		—			(0.18	)		(0.02	)		(0.17	)		(0.45	)		(0.06	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		—			—
Net Asset Value, End of Period	$	14.34		$	12.29		$	11.83		$	10.53		$	12.72		$	9.85
Total Return⁽³⁾		16.68	%⁽⁷⁾		5.43	%		12.51	%		(16.03	)%		33.79	%		(3.58	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	312		$	256		$	233		$	179		$	188		$	10
Ratio of Expenses Before Expense Limitation		2.75	%⁽⁸⁾		3.27	%		2.88	%		3.49	%		12.38	%		22.65	%
Ratio of Expenses After Expense Limitation		1.65	%⁽⁴⁾⁽⁸⁾		1.65	%⁽⁴⁾		1.65	%⁽⁴⁾		1.83	%⁽⁴⁾⁽⁵⁾		1.96	%⁽⁴⁾		2.00	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.65	%⁽⁴⁾⁽⁸⁾		1.65	%⁽⁴⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.32	)%⁽⁴⁾⁽⁸⁾		(0.61	)%⁽⁴⁾		0.42	%⁽⁴⁾		(0.11	)%⁽⁴⁾		(0.50	)%⁽⁴⁾		(0.22	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.04	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		29	%⁽⁷⁾		140	%		69	%		70	%		71	%		69	%

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

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

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

(5) Effective July 13, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.65% for Class A shares. Prior to July 13, 2018, the maximum ratio was 2.00% for Class A shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Small Cap Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016
Net Asset Value, Beginning of Period	$	12.04		$	11.56		$	10.35		$	12.60		$	9.84		$	10.28
Income (Loss) from Investment Operations:
Net Investment Loss⁽¹⁾		(0.07	)		(0.14	)		(0.04	)		(0.10	)		(0.15	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		2.02			0.69			1.25			(1.98	)		3.36			(0.34	)
Total from Investment Operations		1.95			0.55			1.21			(2.08	)		3.21			(0.44	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.07	)		—			—			—			—
Net Realized Gain		—			—			—			(0.17	)		(0.45	)		—
Total Distributions		—			(0.07	)		—			(0.17	)		(0.45	)		—
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		—			—
Net Asset Value, End of Period	$	13.99		$	12.04		$	11.56		$	10.35		$	12.60		$	9.84
Total Return⁽³⁾		16.20	%⁽⁷⁾		4.72	%		11.69	%		(16.66	)%		32.70	%		(4.28	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	31		$	27		$	37		$	33		$	24		$	10
Ratio of Expenses Before Expense Limitation		8.89	%⁽⁸⁾		9.92	%		8.37	%		9.02	%		20.48	%		23.48	%
Ratio of Expenses After Expense Limitation		2.40	%⁽⁴⁾⁽⁸⁾		2.40	%⁽⁴⁾		2.40	%⁽⁴⁾		2.58	%⁽⁴⁾⁽⁵⁾		2.71	%⁽⁴⁾		2.75	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.40	%⁽⁴⁾⁽⁸⁾		2.40	%⁽⁴⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(1.08	)%⁽⁴⁾⁽⁸⁾		(1.30	)%⁽⁴⁾		(0.36	)%⁽⁴⁾		(0.84	)%⁽⁴⁾		(1.27	)%⁽⁴⁾		(0.99	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.04	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		29	%⁽⁷⁾		140	%		69	%		70	%		71	%		69	%

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

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

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

(5) Effective July 13, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.40% for Class C shares. Prior to July 13, 2018, the maximum ratio was 2.75% for Class C shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Emerging Markets Small Cap Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016
Net Asset Value, Beginning of Period	$	12.40		$	11.93		$	10.62		$	12.77		$	9.85		$	10.28
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.01			0.01			0.09			0.00	⁽²⁾		(0.01	)		0.02
Net Realized and Unrealized Gain (Loss)		2.09			0.68			1.28			(1.98	)		3.38			(0.35	)
Total from Investment Operations		2.10			0.69			1.37			(1.98	)		3.37			(0.33	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.06	)		—			—			(0.10	)
Net Realized Gain		—			—			—			(0.17	)		(0.45	)		—
Total Distributions		—			(0.22	)		(0.06	)		(0.17	)		(0.45	)		(0.10	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		—			—
Net Asset Value, End of Period	$	14.50		$	12.40		$	11.93		$	10.62		$	12.77		$	9.85
Total Return⁽³⁾		16.94	%⁽⁷⁾		5.84	%		12.93	%		(15.65	)%		34.29	%		(3.18	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15		$	13		$	8,225		$	7,279		$	13		$	10
Ratio of Expenses Before Expense Limitation		14.68	%⁽⁸⁾		1.96	%		1.78	%		2.10	%		19.47	%		21.37	%
Ratio of Expenses After Expense Limitation		1.25	%⁽⁴⁾⁽⁸⁾		1.25	%⁽⁴⁾		1.25	%⁽⁴⁾		1.26	%⁽⁴⁾⁽⁵⁾		1.55	%⁽⁴⁾		1.60	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.25	%⁽⁴⁾⁽⁸⁾		1.25	%⁽⁴⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.09	%⁽⁴⁾⁽⁸⁾		0.05	%⁽⁴⁾		0.79	%⁽⁴⁾		0.03	%⁽⁴⁾		(0.08	)%⁽⁴⁾		0.16	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.05	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		29	%⁽⁷⁾		140	%		69	%		70	%		71	%		69	%

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

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

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

(5) Effective July 13, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class IS shares. Prior to July 13, 2018, the maximum ratio was 1.60% for Class IS shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Emerging Markets Small Cap Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Air Freight & Logistics	$	1,401	$	—	$	—	$	1,401
Banks		1,928		—		—		1,928
Beverages		1,939		—		—		1,939
Building Products		926		—		—		926
Commercial Services & Supplies		4,476		—		—		4,476
Computers & Peripherals		1,438		—		—		1,438
Consumer Finance		6,275		1,912		—		8,187
Diversified Consumer Services		5,630		—		—		5,630
Diversified Telecommunication Services		5,653		—		—		5,653
Entertainment		3,876		—		—		3,876
Food Products		3,273		—		—		3,273

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Health Care Providers & Services	$	2,159	$	—	$	—	$	2,159
Information Technology Services		14,471		—		—		14,471
Interactive Media & Services		4,033		—		—		4,033
Internet & Direct Marketing Retail		6,822		—		—		6,822
Leisure Products		1,786		—		—		1,786
Media		1,417		—		—		1,417
Metals & Mining		2,864		—		—		2,864
Multi-Line Retail		1,510		—		—		1,510
Oil, Gas & Consumable Fuels		1,450		—		—		1,450
Pharmaceuticals		969		—		—		969
Professional Services		2,053		—		—		2,053
Semiconductors & Semiconductor Equipment		1,587		—		—		1,587
Software		7,778		738		—		8,516
Specialty Retail		5,009		—		—		5,009
Thrifts & Mortgage Finance		3,242		—		—		3,242
Trading Companies & Distributors		1,100		—		—		1,100
Water Utilities		1,136		—		—		1,136	��
Total Common Stocks		96,201		2,650		—		98,851
Short-Term Investments
Investment Company		2,910		—		—		2,910
Total Assets	$	99,111	$	2,650	$	—	$	101,761

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.

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.

A significant portion of the Fund's net assets consist of securities of issuers located in emerging markets, which are denominated in foreign currencies. Such securities may be concentrated in a limited number of countries and regions and may vary throughout the year. Changes in currency exchange rates will affect the value of securities and investment income from foreign currency denominated securities. Emerging market securities are often subject to greater price volatility, limited capitalization and liquidity, and higher rates of inflation than securities of companies based in the U.S. In addition, emerging market issuers may be subject to substantial governmental involvement in the economy and greater social, economic and political uncertainty.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	3,778	(a)	$	—	$	(3,778	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $117,000, 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 $3,884,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

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	$	117	$	—	$	—	$	—	$	117
Total Borrowings	$	117	$	—	$	—	$	—	$	117
Gross amount of recognized liabilities for securities lending transactions									$	117

5. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class IS shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

7. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 1.25% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.30% for Class I shares, 1.65% for Class A shares, 2.40% for Class C shares and 1.25% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $195,000 of advisory fees were waived and approximately $18,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Company and provides administrative services pursuant to an Administration Agreement for an annual fee,

accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $26,693,000 and $25,969,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,893			$	15,994			$	14,977			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	2,910

@ Amount is less than $500.

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.

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, 2020, remains subject to examination by taxing authorities.

2020 Distributions Paid From: Ordinary Income (000)				2019 Distributions Paid From: Ordinary Income (000)
$	1,486			$	318

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	1,924			$	—

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $5,897,000 and $2,574,000, respectively, that do not have an expiration date.

J. Other: At June 30, 2021, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate-percentage of such owners was 67.8%.

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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. 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, actual management fee was higher than its peer group average and total expense ratio was lower than its peer group average. After discussion, the Board concluded that the Fund's (i) performance and management fee were acceptable and (ii) total expense ratio was competitive with its peer group average.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFIEMSCSAN
3692194 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Next Gen Emerging Markets Portfolio

(formerly Frontier Markets Portfolio)

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					10
Notes to Financial Statements					15
Investment Advisory Agreement Approval					21
Liquidity Risk Management Program					23
U.S. Customer Privacy Notice					24
Director and Officer Information					27

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Next Gen Emerging Markets Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Next Gen Emerging Markets Portfolio Class I	$	1,000.00	$	1,176.50	$	1,015.62	$	9.98	$	9.25		1.85	%
Next Gen Emerging Markets Portfolio Class A		1,000.00		1,174.60		1,013.88		11.86		10.99		2.20
Next Gen Emerging Markets Portfolio Class L		1,000.00		1,171.10		1,011.41		14.53		13.47		2.70
Next Gen Emerging Markets Portfolio Class C		1,000.00		1,169.60		1,010.17		15.87		14.70		2.95
Next Gen Emerging Markets Portfolio Class IS		1,000.00		1,176.50		1,015.87		9.71		9.00		1.80

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Next Gen Emerging Markets Portfolio

	Shares		Value (000)
Common Stocks (92.1%)
Argentina (2.5%)
Globant SA (a)		8,929	$	1,957
Bangladesh (2.3%)
Brac Bank Ltd.		3,065,307		1,790
Egypt (6.4%)
Cairo Investment & Real Estate Development Co. SAE		1,161,175		828
Commercial International Bank Egypt SAE (a)		581,207		1,944
Fawry for Banking & Payment Technology Services SAE (a)		1,906,308		2,293
				5,065
Germany (1.3%)
Delivery Hero SE (a)		7,853		1,037
Kazakhstan (6.5%)
Halyk Savings Bank of Kazakhstan JSC GDR		55,021		853
Kaspi.KZ JSC GDR		12,945		1,372
NAC Kazatomprom JSC GDR		100,827		2,924
				5,149
Kenya (4.7%)
Safaricom PLC		9,557,140		3,720
Morocco (2.1%)
Label Vie		3,674		1,625
Nigeria (1.6%)
Nestle Nigeria PLC		405,894		1,249
Pakistan (0.7%)
MCB Bank Ltd.		508,304		519
Poland (6.2%)
11 bit studios SA (a)		9,688		1,213
Grupa Kety SA		8,307		1,414
LiveChat Software SA		61,630		2,227
				4,854
Romania (3.3%)
Banca Transilvania SA		3,980,312		2,610
Russia (10.4%)
Ozon Holdings PLC ADR (a)		25,196		1,477
TCS Group Holding PLC GDR		76,901		6,729
				8,206
Singapore (10.0%)
Sea Ltd. ADR (a)		28,629		7,862
Slovenia (1.9%)
Krka dd Novo mesto		12,424		1,525
South Africa (1.7%)
Capitec Bank Holdings Ltd.		11,626		1,373
United Arab Emirates (1.1%)
Network International Holdings PLC (a)		173,409		877
United Kingdom (3.1%)
Avast PLC		360,044		2,440

	Shares		Value (000)
United States (6.0%)
Grid Dynamics Holdings, Inc. (a)		54,990	$	827
MercadoLibre, Inc. (a)		2,499		3,893
				4,720
Vietnam (20.3%)
Bank for Foreign Trade of Vietnam JSC		777,710		3,933
FPT Corp.		607,701		2,520
Mobile World Investment Corp.		619,463		4,561
Sai Gon Cargo Service Corp.		265,470		1,586
Saigon Beer Alcohol Beverage Corp.		169,320		1,244
Vietnam Dairy Products JSC		555,292		2,181
				16,025
Total Common Stocks (Cost $42,843)				72,603
Short-Term Investment (5.8%)
Investment Company (5.8%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $4,602)		4,602,338		4,602
Total Investments (97.9%) (Cost $47,445) (b)				77,205
Other Assets in Excess of Liabilities (2.1%)				1,633
Net Assets (100.0%)			$	78,838

(a) Non-income producing security.

(b) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $30,799,000 and the aggregate gross unrealized depreciation is approximately $1,039,000, resulting in net unrealized appreciation of approximately $29,760,000.

ADR American Depositary Receipt.

GDR Global Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Banks		25.6	%
Other*		25.5
Entertainment		11.7
Information Technology Services		11.0
Internet & Direct Marketing Retail		8.3
Software		6.0
Short-Term Investments		6.0
Specialty Retail		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.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Next Gen Emerging Markets Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $42,843)	$	72,603
Investment in Security of Affiliated Issuer, at Value (Cost $4,602)		4,602
Total Investments in Securities, at Value (Cost $47,445)		77,205
Foreign Currency, at Value (Cost $103)		92
Cash		21
Receivable for Fund Shares Sold		1,778
Receivable for Investments Sold		169
Dividends Receivable		86
Due from Adviser		1
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Other Assets		85
Total Assets		79,437
Liabilities:
Payable for Investments Purchased		250
Payable for Custodian Fees		113
Payable for Reorganization Expense		81
Payable for Professional Fees		57
Payable for Sub Transfer Agency Fees — Class I		5
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		5
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		2
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Fund Shares Redeemed		—	@
Other Liabilities		81
Total Liabilities		599
Net Assets	$	78,838
Net Assets Consist of:
Paid-in-Capital	$	131,873
Total Accumulated Loss		(53,035	)
Net Assets	$	78,838

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Next Gen Emerging Markets Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	67,797
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,957,363
Net Asset Value, Offering and Redemption Price Per Share	$	22.92
CLASS A:
Net Assets	$	9,300
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		406,711
Net Asset Value, Redemption Price Per Share	$	22.87
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.27
Maximum Offering Price Per Share	$	24.14
CLASS L:
Net Assets	$	433
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		19,125
Net Asset Value, Offering and Redemption Price Per Share	$	22.65
CLASS C:
Net Assets	$	934
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		42,054
Net Asset Value, Offering and Redemption Price Per Share	$	22.21
CLASS IS:
Net Assets	$	374
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		16,299
Net Asset Value, Offering and Redemption Price Per Share	$	22.93

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Next Gen Emerging Markets Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $41 of Foreign Taxes Withheld)	$	584
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		584
Expenses:
Advisory Fees (Note B)		425
Custodian Fees (Note F)		101
Shareholder Reporting Fees		96
Professional Fees		89
Reorganization Expense		86
Sub Transfer Agency Fees — Class I		26
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		27
Registration Fees		26
Shareholder Services Fees — Class A (Note D)		11
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		4
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		2
Pricing Fees		1
Interest Expenses		5
Other Expenses		7
Total Expenses		921
Waiver of Advisory Fees (Note B)		(247	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(16	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		655
Net Investment Loss		(71	)
Realized Gain (Loss):
Investments Sold		4,240
Foreign Currency Translation		(8	)
Net Realized Gain		4,232
Change in Unrealized Appreciation (Depreciation):
Investments		6,946
Foreign Currency Translation		(8	)
Net Change in Unrealized Appreciation (Depreciation)		6,938
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		11,170
Net Increase in Net Assets Resulting from Operations	$	11,099

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Next Gen Emerging Markets Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	(71	)	$	168
Net Realized Gain (Loss)		4,232			(3,314	)
Net Change in Unrealized Appreciation (Depreciation)		6,938			(3,317	)
Net Increase (Decrease) in Net Assets Resulting from Operations		11,099			(6,463	)
Dividends and Distributions to Shareholders:
Class I		—			(20	)
Class A		—			(3	)
Class L		—			(—	@)
Class C		—			(—	@)
Class IS		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(23	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		7,827			8,168
Distributions Reinvested		—			19
Redeemed		(4,987	)		(71,098	)
Class A:
Subscribed		641			708
Distributions Reinvested		—			3
Redeemed		(1,193	)		(4,888	)
Class L:
Distributions Reinvested		—			—	@
Redeemed		(9	)		(229	)
Class C:
Subscribed		18			40
Distributions Reinvested		—			—	@
Redeemed		(67	)		(153	)
Class IS:
Subscribed		24			315
Distributions Reinvested		—			—	@
Redeemed		(23	)		(1,743	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		2,231			(68,858	)
Redemption Fees		—	@		1
Total Increase (Decrease) in Net Assets		13,330			(75,343	)
Net Assets:
Beginning of Period		65,508			140,851
End of Period	$	78,838		$	65,508

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Next Gen Emerging Markets Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		347			520
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(239	)		(5,028	)
Net Increase (Decrease) in Class I Shares Outstanding		108			(4,507	)
Class A:
Shares Subscribed		31			45
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(57	)		(314	)
Net Decrease in Class A Shares Outstanding		(26	)		(269	)
Class L:
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		(14	)
Net Decrease in Class L Shares Outstanding		(—	@@)		(14	)
Class C:
Shares Subscribed		1			2
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(3	)		(10	)
Net Decrease in Class C Shares Outstanding		(2	)		(8	)
Class IS:
Shares Subscribed		1			20
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		(96	)
Net Decrease in Class IS Shares Outstanding		(—	@@)		(76	)

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.49		$	17.10		$	15.63		$	21.02		$	17.39		$	16.98
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.02	)		0.04			0.39			0.33			0.16			0.31
Net Realized and Unrealized Gain (Loss)		3.45			2.36			1.58			(5.07	)		3.47			0.33
Total from Investment Operations		3.43			2.40			1.97			(4.74	)		3.63			0.64
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.50	)		(0.65	)		—			(0.23	)
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.01	)		(0.50	)		(0.65	)		—			(0.23	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	22.92		$	19.49		$	17.10		$	15.63		$	21.02		$	17.39
Total Return⁽⁴⁾		17.65	%⁽⁸⁾		14.02	%		12.53	%		(22.60	)%		20.82	%		3.83	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	67,797		$	55,533		$	125,780		$	229,688		$	632,435		$	525,664
Ratio of Expenses Before Expense Limitation		2.64	%⁽⁹⁾		2.13	%		1.92	%		N/A			N/A			1.69	%
Ratio of Expenses After Expense Limitation		1.86	%^(5)(6)(9)		1.90	%⁽⁵⁾⁽⁶⁾		1.90	%⁽⁵⁾⁽⁶⁾		1.77	%⁽⁵⁾		1.73	%⁽⁵⁾		1.67	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.85	%⁽⁵⁾⁽⁹⁾		1.85	%⁽⁵⁾		1.85	%⁽⁵⁾		1.76	%⁽⁵⁾		1.73	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(0.16	)%⁽⁵⁾⁽⁹⁾		0.24	%⁽⁵⁾		2.33	%⁽⁵⁾		1.68	%⁽⁵⁾		0.82	%⁽⁵⁾		1.82	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		12	%⁽⁸⁾		56	%		68	%		61	%		52	%		30	%

(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 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

(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.

(6) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.47		$	17.15		$	15.61		$	20.86		$	17.31		$	16.90
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.05	)		0.01			0.42			0.34			0.11			0.24
Net Realized and Unrealized Gain (Loss)		3.45			2.32			1.48			(5.10	)		3.44			0.35
Total from Investment Operations		3.40			2.33			1.90			(4.76	)		3.55			0.59
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.36	)		(0.49	)		—			(0.18	)
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.01	)		(0.36	)		(0.49	)		—			(0.18	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	22.87		$	19.47		$	17.15		$	15.61		$	20.86		$	17.31
Total Return⁽⁴⁾		17.46	%⁽⁸⁾		13.57	%		12.13	%		(22.80	)%		20.39	%		3.49	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,300		$	8,436		$	12,044		$	34,654		$	86,324		$	90,817
Ratio of Expenses Before Expense Limitation		2.93	%⁽⁹⁾		2.44	%		2.23	%		N/A			N/A			2.03	%
Ratio of Expenses After Expense Limitation		2.21	%^(5)(6)(9)		2.26	%⁽⁵⁾⁽⁶⁾		2.25	%⁽⁵⁾⁽⁶⁾		2.07	%⁽⁵⁾		2.05	%⁽⁵⁾		2.01	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.20	%⁽⁵⁾⁽⁹⁾		2.20	%⁽⁵⁾		2.20	%⁽⁵⁾		2.06	%⁽⁵⁾		2.05	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(0.51	)%⁽⁵⁾⁽⁹⁾		0.07	%⁽⁵⁾		2.48	%⁽⁵⁾		1.71	%⁽⁵⁾		0.59	%⁽⁵⁾		1.40	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		12	%⁽⁸⁾		56	%		68	%		61	%		52	%		30	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.34		$	17.11		$	15.59		$	20.65		$	17.25		$	16.79
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.10	)		(0.06	)		0.25			0.17			(0.02	)		0.15
Net Realized and Unrealized Gain (Loss)		3.41			2.30			1.56			(4.98	)		3.42			0.32
Total from Investment Operations		3.31			2.24			1.81			(4.81	)		3.40			0.47
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.29	)		(0.25	)		—			(0.01	)
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.01	)		(0.29	)		(0.25	)		—			(0.01	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	22.65		$	19.34		$	17.11		$	15.59		$	20.65		$	17.25
Total Return⁽⁴⁾		17.11	%⁽⁸⁾		13.01	%		11.58	%		(23.19	)%		19.59	%		2.77	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	433		$	378		$	570		$	1,241		$	2,570		$	2,630
Ratio of Expenses Before Expense Limitation		3.83	%⁽⁹⁾		3.44	%		2.90	%		N/A			2.76	%		2.80	%
Ratio of Expenses After Expense Limitation		2.71	%^(5)(6)(9)		2.76	%⁽⁵⁾⁽⁶⁾		2.75	%⁽⁵⁾⁽⁶⁾		2.57	%⁽⁵⁾		2.70	%⁽⁵⁾		2.70	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.70	%⁽⁵⁾⁽⁹⁾		2.70	%⁽⁵⁾		2.70	%⁽⁵⁾		2.56	%⁽⁵⁾		2.70	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(0.75	)%⁽⁵⁾⁽⁹⁾		(0.39	)%⁽⁵⁾		1.47	%⁽⁵⁾		0.88	%⁽⁵⁾		(0.13	)%⁽⁵⁾		0.88	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		12	%⁽⁸⁾		56	%		68	%		61	%		52	%		30	%

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

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	18.99		$	16.85		$	15.38		$	20.41		$	17.07		$	16.69
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.13	)		(0.10	)		0.20			0.11			(0.05	)		0.10
Net Realized and Unrealized Gain (Loss)		3.35			2.25			1.56			(4.90	)		3.39			0.34
Total from Investment Operations		3.22			2.15			1.76			(4.79	)		3.34			0.44
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.29	)		(0.24	)		—			(0.06	)
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.01	)		(0.29	)		(0.24	)		—			(0.06	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	22.21		$	18.99		$	16.85		$	15.38		$	20.41		$	17.07
Total Return⁽⁴⁾		16.96	%⁽⁸⁾		12.74	%		11.34	%		(23.42	)%		19.51	%		2.63	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	934		$	843		$	877		$	1,657		$	2,857		$	1,925
Ratio of Expenses Before Expense Limitation		3.85	%⁽⁹⁾		3.42	%		3.07	%		N/A			N/A			2.89	%
Ratio of Expenses After Expense Limitation		2.96	%^(5)(6)(9)		3.00	%⁽⁵⁾⁽⁶⁾		2.99	%⁽⁵⁾⁽⁶⁾		2.83	%⁽⁵⁾		2.81	%⁽⁵⁾		2.88	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.95	%⁽⁵⁾⁽⁹⁾		2.95	%⁽⁵⁾		2.95	%⁽⁵⁾		2.82	%⁽⁵⁾		2.81	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(1.01	)%⁽⁵⁾⁽⁹⁾		(0.66	)%⁽⁵⁾		1.17	%⁽⁵⁾		0.56	%⁽⁵⁾		(0.26	)%⁽⁵⁾		0.57	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		12	%⁽⁸⁾		56	%		68	%		61	%		52	%		30	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

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

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

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	19.49		$	17.09		$	15.63		$	21.02		$	17.39		$	16.97
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.01	)		0.09			0.33			0.58			0.13			0.30
Net Realized and Unrealized Gain (Loss)		3.45			2.32			1.64			(5.33	)		3.50			0.36
Total from Investment Operations		3.44			2.41			1.97			(4.75	)		3.63			0.66
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.51	)		(0.64	)		—			(0.24	)
Paid-in-Capital		—			—			—			—			—			(0.00	)⁽³⁾
Total Distributions		—			(0.01	)		(0.51	)		(0.64	)		—			(0.24	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	22.93		$	19.49		$	17.09		$	15.63		$	21.02		$	17.39
Total Return⁽⁴⁾		17.65	%⁽⁸⁾		14.02	%		12.60	%		(22.61	)%		20.83	%		3.88	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	374		$	318		$	1,580		$	4,633		$	16,344		$	12,055
Ratio of Expenses Before Expense Limitation		3.16	%⁽⁹⁾		2.20	%		1.91	%		N/A			N/A			1.64	%
Ratio of Expenses After Expense Limitation		1.81	%^(5)(6)(9)		1.86	%⁽⁵⁾⁽⁶⁾		1.85	%⁽⁵⁾⁽⁶⁾		1.74	%⁽⁵⁾		1.69	%⁽⁵⁾		1.62	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.80	%⁽⁵⁾⁽⁹⁾		1.80	%⁽⁵⁾		1.80	%⁽⁵⁾		1.73	%⁽⁵⁾		1.69	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(0.15	)%⁽⁵⁾⁽⁹⁾		0.55	%⁽⁵⁾		1.95	%⁽⁵⁾		2.85	%⁽⁵⁾		0.65	%⁽⁵⁾		1.75	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		12	%⁽⁸⁾		56	%		68	%		61	%		52	%		30	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

(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.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Next Gen Emerging Markets Portfolio (name changed on June 30, 2021, formerly Frontier Markets Portfolio). The Fund seeks long-term capital appreciation.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Air Freight & Logistics	$	1,586	$	—	$	—	$	1,586
Banks		19,751		—		—		19,751
Beverages		1,244		—		—		1,244
Consumer Finance		1,372		—		—		1,372
Diversified Consumer Services		828		—		—		828
Entertainment		9,075		—		—		9,075
Food & Staples Retailing		1,625		—		—		1,625
Food Products		3,430		—		—		3,430

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Information Technology Services	$	5,954	$	2,520	$	—	$	8,474
Internet & Direct Marketing Retail		6,407		—		—		6,407
Metals & Mining		1,414		—		—		1,414
Oil, Gas & Consumable Fuels		2,924		—		—		2,924
Pharmaceuticals		1,525		—		—		1,525
Software		4,667		—		—		4,667
Specialty Retail		—		4,561		—		4,561
Wireless Telecommunication Services		3,720		—		—		3,720
Total Common Stocks		65,522		7,081		—		72,603
Short-Term Investment
Investment Company		4,602		—		—		4,602
Total Assets	$	70,124	$	7,081	$	—	$	77,205

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

4. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class L shares, Class C shares and Class IS shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

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

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid

quarterly, at an annual rate of 1.25% of the daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.85% for Class I shares, 2.20% for Class A shares, 2.70% for Class L shares, 2.95% for Class C shares and 1.80% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $247,000 of advisory fees were waived and approximately $19,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $8,293,000 and $12,217,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	356			$	11,450			$	7,204			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	4,602

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From: Ordinary Income (000)				2019 Distributions Paid From: Ordinary Income (000)
$	23			$	4,055

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Accumulated Loss (000)				Paid-in- Capital (000)
$	186			$	(186	)

At December 31, 2020, the Fund had no distributable earnings on a tax basis.

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $85,847,000 that do not have an expiration date.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 five-year period but better than its peer group average for the one- and three-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 averages and 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFIFEMSAN
3692241 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Concentrated Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					17
Liquidity Risk Management Program					19
U.S. Customer Privacy Notice					20
Director and Officer Information					23

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Global Concentrated Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Concentrated Portfolio Class I	$	1,000.00	$	1,110.40	$	1,019.93	$	5.13	$	4.91		0.98	%
Global Concentrated Portfolio Class A		1,000.00		1,108.80		1,018.50		6.64		6.36		1.27
Global Concentrated Portfolio Class C		1,000.00		1,104.40		1,014.73		10.59		10.14		2.03
Global Concentrated Portfolio Class IS		1,000.00		1,110.90		1,020.08		4.97		4.76		0.95

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Concentrated Portfolio

	Shares		Value (000)
Common Stocks (99.6%)
China (13.0%)
Alibaba Group Holding Ltd. ADR (a)		33,176	$	7,524
Tencent Holdings Ltd. ADR		72,420		5,453
				12,977
France (8.2%)
LVMH Moet Hennessy Louis Vuitton SE ADR		51,918		8,193
India (8.2%)
HDFC Bank Ltd. ADR (a)		112,032		8,192
Italy (5.3%)
Ferrari N.V.		25,458		5,245
Taiwan (5.6%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		46,907		5,636
United States (59.3%)
Ameriprise Financial, Inc.		8,263		2,056
Costco Wholesale Corp.		6,381		2,525
Danaher Corp.		18,266		4,902
Domino's Pizza, Inc.		8,289		3,867
Estee Lauder Cos., Inc. (The), Class A		9,072		2,886
JPMorgan Chase & Co.		21,633		3,365
Lululemon Athletica, Inc. (a)		3,637		1,327
Mastercard, Inc., Class A		10,947		3,997
Microsoft Corp.		26,227		7,105
NextEra Energy, Inc.		36,323		2,662
Planet Fitness, Inc., Class A (a)		39,972		3,008
STORE Capital Corp. REIT		189,641		6,544
SVB Financial Group (a)		13,995		7,787
United Rentals, Inc. (a)		14,031		4,476
Waste Management, Inc.		20,401		2,858
				59,365
Total Common Stocks (Cost $86,449)				99,608
Short-Term Investment (1.6%)
Investment Company (1.6%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class(See Note G) (Cost $1,640)		1,639,749		1,640
Total Investments (101.2%) (Cost $88,089) (b)				101,248
Liabilities in Excess of Other Assets (–1.2%)				(1,171	)
Net Assets (100.0%)			$	100,077

(a) Non-income producing security.

(b) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $13,573,000 and the aggregate gross unrealized depreciation is approximately $414,000, resulting in net unrealized appreciation of approximately $13,159,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		27.6	%
Banks		19.1
Textiles, Apparel & Luxury Goods		9.4
Internet & Direct Marketing Retail		7.4
Software		7.0
Hotels, Restaurants & Leisure		6.8
Equity Real Estate Investment Trusts (REITs)		6.5
Semiconductors & Semiconductor Equipment		5.6
Interactive Media & Services		5.4
Automobiles		5.2
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Concentrated Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $86,449)	$	99,608
Investment in Security of Affiliated Issuer, at Value (Cost $1,640)		1,640
Total Investments in Securities, at Value (Cost $88,089)		101,248
Receivable for Fund Shares Sold		479
Dividends Receivable		89
Tax Reclaim Receivable		8
Receivable from Affiliate		—	@
Other Assets		81
Total Assets		101,905
Liabilities:
Payable for Investments Purchased		1,577
Payable for Advisory Fees		144
Payable for Fund Shares Redeemed		47
Payable for Professional Fees		35
Payable for Shareholder Services Fees — Class A		2
Payable for Distribution and Shareholder Services Fees — Class C		5
Payable for Administration Fees		6
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Other Liabilities		12
Total Liabilities		1,828
Net Assets	$	100,077
Net Assets Consist of:
Paid-in-Capital	$	82,178
Total Distributable Earnings		17,899
Net Assets	$	100,077
CLASS I:
Net Assets	$	84,599
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		4,449,437
Net Asset Value, Offering and Redemption Price Per Share	$	19.01
CLASS A:
Net Assets	$	9,067
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		481,050
Net Asset Value, Redemption Price Per Share	$	18.85
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.04
Maximum Offering Price Per Share	$	19.89
CLASS C:
Net Assets	$	6,392
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		347,343
Net Asset Value, Offering and Redemption Price Per Share	$	18.40
CLASS IS:
Net Assets	$	19
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,012
Net Asset Value, Offering and Redemption Price Per Share	$	19.04

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Concentrated Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $19 of Foreign Taxes Withheld)	$	369
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		369
Expenses:
Advisory Fees (Note B)		302
Professional Fees		59
Shareholder Services Fees — Class A (Note D)		10
Distribution and Shareholder Services Fees — Class C (Note D)		24
Administration Fees (Note C)		32
Registration Fees		23
Shareholder Reporting Fees		14
Sub Transfer Agency Fees — Class I		10
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class C		1
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		3
Directors' Fees and Expenses		2
Pricing Fees		1
Other Expenses		3
Total Expenses		490
Waiver of Advisory Fees (Note B)		(58	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		431
Net Investment Loss		(62	)
Realized Gain:
Investments Sold		4,597
Change in Unrealized Appreciation (Depreciation):
Investments		3,140
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		7,737
Net Increase in Net Assets Resulting from Operations	$	7,675

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Concentrated Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	(62	)	$	11
Net Realized Gain		4,597			394
Net Change in Unrealized Appreciation (Depreciation)		3,140			6,411
Net Increase in Net Assets Resulting from Operations		7,675			6,816
Dividends and Distributions to Shareholders:
Class I		—			(1	)
Class A		—			(—	@)
Class C		—			(—	@)
Class IS		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(1	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		39,397			28,607
Distributions Reinvested		—			1
Redeemed		(7,237	)		(2,846	)
Class A:
Subscribed		2,426			2,087
Distributions Reinvested		—			—	@
Redeemed		(207	)		(1,077	)
Class C:
Subscribed		2,486			1,818
Distributions Reinvested		—			—	@
Redeemed		(85	)		(1,387	)
Class IS:
Subscribed		—			18
Distributions Reinvested		—			—	@
Redeemed		(26	)		—
Net Increase in Net Assets Resulting from Capital Share Transactions		36,754			27,221
Total Increase in Net Assets		44,429			34,036
Net Assets:
Beginning of Period		55,648			21,612
End of Period	$	100,077		$	55,648
(1) Capital Share Transactions:
Class I:
Shares Subscribed		2,159			1,823
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(393	)		(214	)
Net Increase in Class I Shares Outstanding		1,766			1,609
Class A:
Shares Subscribed		134			150
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(11	)		(82	)
Net Increase in Class A Shares Outstanding		123			68
Class C:
Shares Subscribed		138			133
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(5	)		(117	)
Net Increase in Class C Shares Outstanding		133			16
Class IS:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		—
Net Increase (Decrease) in Class IS Shares Outstanding		(1	)		1

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Concentrated Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	17.12		$	13.86		$	10.53		$	12.42		$	10.16		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.01	)		0.03			0.08			0.14			0.02			0.03
Net Realized and Unrealized Gain (Loss)		1.90			3.23			3.40			(1.95	)		2.28			0.19
Total from Investment Operations		1.89			3.26			3.48			(1.81	)		2.30			0.22
Distributions from and/or in Excess of:
Net Investment Income		—			(0.00	)⁽³⁾		(0.15	)		(0.08	)		(0.03	)		(0.06	)
Paid-in-Capital		—			—			—			—			(0.01	)		—
Total Distributions		—			(0.00	)⁽³⁾		(0.15	)		(0.08	)		(0.04	)		(0.06	)
Net Asset Value, End of Period	$	19.01		$	17.12		$	13.86		$	10.53		$	12.42		$	10.16
Total Return⁽⁴⁾		11.04	%⁽⁷⁾		23.52	%		33.10	%		(14.61	)%		22.64	%		2.24	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	84,599		$	45,946		$	14,885		$	11,554		$	11,814		$	6,922
Ratio of Expenses Before Expense Limitation		1.13	%⁽⁸⁾		1.81	%		1.96	%		1.90	%		3.13	%		3.57	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.98	%⁽⁵⁾⁽⁸⁾		0.99	%⁽⁵⁾		1.00	%⁽⁵⁾		1.00	%⁽⁵⁾		0.98	%⁽⁵⁾		0.97	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		(0.06	)%⁽⁵⁾⁽⁸⁾		0.21	%⁽⁵⁾		0.64	%⁽⁵⁾		1.13	%⁽⁵⁾		0.15	%⁽⁵⁾		0.48	%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		21	%⁽⁷⁾		54	%		123	%		94	%		68	%		44	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Concentrated Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	17.00		$	13.80		$	10.49		$	12.37		$	10.15		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.03	)		(0.02	)		0.04			0.11			(0.03	)		0.01
Net Realized and Unrealized Gain (Loss)		1.88			3.22			3.38			(1.95	)		2.28			0.19
Total from Investment Operations		1.85			3.20			3.42			(1.84	)		2.25			0.20
Distributions from and/or in Excess of:
Net Investment Income		—			(0.00	)⁽³⁾		(0.11	)		(0.04	)		(0.03	)		(0.05	)
Net Asset Value, End of Period	$	18.85		$	17.00		$	13.80		$	10.49		$	12.37		$	10.15
Total Return⁽⁴⁾		10.88	%⁽⁷⁾		23.19	%		32.64	%		(14.91	)%		22.17	%		2.02	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,067		$	6,091		$	4,009		$	2,213		$	1,666		$	782
Ratio of Expenses Before Expense Limitation		1.41	%⁽⁸⁾		2.13	%		2.29	%		2.24	%		3.61	%		4.23	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.27	%⁽⁵⁾⁽⁸⁾		1.31	%⁽⁵⁾		1.34	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		(0.37	)%⁽⁵⁾⁽⁸⁾		(0.14	)%⁽⁵⁾		0.32	%⁽⁵⁾		0.91	%⁽⁵⁾		(0.25	)%⁽⁵⁾		0.16	%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		21	%⁽⁷⁾		54	%		123	%		94	%		68	%		44	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Concentrated Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	16.66		$	13.63		$	10.36		$	12.27		$	10.15		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.10	)		(0.12	)		(0.06	)		0.02			(0.11	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		1.84			3.15			3.34			(1.93	)		2.26			0.21
Total from Investment Operations		1.74			3.03			3.28			(1.91	)		2.15			0.17
Distributions from and/or in Excess of:
Net Investment Income		—			(0.00	)⁽³⁾		(0.01	)		—			(0.03	)		(0.02	)
Net Asset Value, End of Period	$	18.40		$	16.66		$	13.63		$	10.36		$	12.27		$	10.15
Total Return⁽⁴⁾		10.44	%⁽⁷⁾		22.23	%		31.69	%		(15.57	)%		21.18	%		1.69	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,392		$	3,568		$	2,704		$	2,263		$	1,728		$	877
Ratio of Expenses Before Expense Limitation		2.18	%⁽⁸⁾		2.91	%		3.06	%		2.98	%		4.36	%		4.81	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.03	%⁽⁵⁾⁽⁸⁾		2.09	%⁽⁵⁾		2.10	%⁽⁵⁾		2.09	%⁽⁵⁾		2.10	%⁽⁵⁾		2.10	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		(1.12	)%⁽⁵⁾⁽⁸⁾		(0.91	)%⁽⁵⁾		(0.46	)%⁽⁵⁾		0.18	%⁽⁵⁾		(0.95	)%⁽⁵⁾		(0.69	)%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		21	%⁽⁷⁾		54	%		123	%		94	%		68	%		44	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Concentrated Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	17.14		$	13.86		$	10.53		$	12.42		$	10.16		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.01	)		0.03			0.09			0.16			0.02			0.03
Net Realized and Unrealized Gain (Loss)		1.91			3.25			3.40			(1.97	)		2.28			0.20
Total from Investment Operations		1.90			3.28			3.49			(1.81	)		2.30			0.23
Distributions from and/or in Excess of:
Net Investment Income		—			(0.00	)⁽³⁾		(0.16	)		(0.08	)		(0.03	)		(0.07	)
Paid-in-Capital		—			—			—			—			(0.01	)		—
Total Distributions		—			(0.00	)⁽³⁾		(0.16	)		(0.08	)		(0.04	)		(0.07	)
Net Asset Value, End of Period	$	19.04		$	17.14		$	13.86		$	10.53		$	12.42		$	10.16
Total Return⁽⁴⁾		11.09	%⁽⁷⁾		23.67	%		33.16	%		(14.55	)%		22.67	%		2.25	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	19		$	43		$	14		$	11		$	12		$	10
Ratio of Expenses Before Expense Limitation		10.65	%⁽⁸⁾		9.20	%		17.68	%		17.97	%		18.61	%		19.43	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		(0.08	)%⁽⁵⁾⁽⁸⁾		0.22	%⁽⁵⁾		0.68	%⁽⁵⁾		1.27	%⁽⁵⁾		0.22	%⁽⁵⁾		0.56	%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		21	%⁽⁷⁾		54	%		123	%		94	%		68	%		44	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

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

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

• 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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Automobiles	$	5,245	$	—	$	—	$	5,245
Banks		19,344		—		—		19,344
Capital Markets		2,056		—		—		2,056
Commercial Services & Supplies		2,858		—		—		2,858
Electric Utilities		2,662		—		—		2,662
Equity Real Estate Investment Trusts (REITs)		6,544		—		—		6,544
Food & Staples Retailing		2,525		—		—		2,525
Health Care Equipment & Supplies		4,902		—		—		4,902
Hotels, Restaurants & Leisure		6,875		—		—		6,875
Information Technology Services		3,997		—		—		3,997
Interactive Media & Services		5,453		—		—		5,453
Internet & Direct Marketing Retail		7,524		—		—		7,524
Personal Products		2,886		—		—		2,886

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Semiconductors & Semiconductor Equipment	$	5,636	$	—	$	—	$	5,636
Software		7,105		—		—		7,105
Textiles, Apparel & Luxury Goods		9,520		—		—		9,520
Trading Companies & Distributors		4,476		—		—		4,476
Total Common Stocks		99,608		—		—		99,608
Short-Term Investment
Investment Company		1,640		—		—		1,640
Total Assets	$	101,248	$	—	$	—	$	101,248

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

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

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

5. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution

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

First $750 million				Next $750 million				Over $1.5 billion
	0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.61% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the 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, 2021, approximately $58,000 of advisory fees were waived and approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $53,901,000 and $16,865,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	863			$	29,578			$	28,801			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	1,640

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:		2019 Distributions Paid From:
Long-Term Capital Gain (000)		Ordinary Income (000)
$	1	$	190

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	14			$	(14	)

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	—			$	482

During the year ended December 31, 2020, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $106,000.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 three-year periods and for the period since the end of May 2016, the month of the Fund's inception. 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 actual management fee was 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFIGCNPSAN
3692252 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Core Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					18
Liquidity Risk Management Program					20
U.S. Customer Privacy Notice					21
Director and Officer Information					24

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Global Core Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Core Portfolio Class I	$	1,000.00	$	1,113.20	$	1,019.98	$	5.08	$	4.86		0.97	%
Global Core Portfolio Class A		1,000.00		1,110.60		1,018.10		7.06		6.76		1.35
Global Core Portfolio Class C		1,000.00		1,106.80		1,014.43		10.92		10.44		2.09
Global Core Portfolio Class IS		1,000.00		1,112.50		1,020.08		4.98		4.76		0.95

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Core Portfolio

	Shares		Value (000)
Common Stocks (97.8%)
Canada (1.5%)
Franco-Nevada Corp.		2,070	$	300
China (11.2%)
Alibaba Group Holding Ltd. ADR (a)		3,810		864
NetEase, Inc. ADR		3,235		373
Tencent Holdings Ltd. ADR		13,639		1,027
				2,264
France (4.5%)
LVMH Moet Hennessy Louis Vuitton SE		1,167		915
India (4.2%)
HDFC Bank Ltd. ADR (a)		11,588		847
Ireland (1.7%)
CRH PLC ADR		6,753		343
Italy (3.1%)
Ferrari N.V.		3,007		620
Japan (1.4%)
Nippon Telegraph & Telephone Corp. ADR		10,854		284
Singapore (2.2%)
Sea Ltd. ADR (a)		1,613		443
Taiwan (4.2%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		7,180		863
United Kingdom (6.5%)
Diageo PLC ADR		3,227		619
Experian PLC ADR		7,151		277
London Stock Exchange Group PLC		1,908		210
Ryanair Holdings PLC ADR (a)		2,005		217
				1,323
United States (57.3%)
Ameriprise Financial, Inc.		2,084		519
Apple, Inc.		9,404		1,288
Chevron Corp.		7,695		806
Danaher Corp.		2,925		785
Estee Lauder Cos., Inc. (The), Class A		1,702		541
Euronet Worldwide, Inc. (a)		816		110
First Republic Bank		3,458		647
Fortune Brands Home & Security, Inc.		2,750		274
JPMorgan Chase & Co.		3,656		569
Lululemon Athletica, Inc. (a)		1,479		540
Mastercard, Inc., Class A		2,183		797
McDonald's Corp.		1,625		375
MGM Resorts International		10,147		433
Microsoft Corp.		4,325		1,172

	Shares		Value (000)
NextEra Energy, Inc.		6,174	$	452
Planet Fitness, Inc., Class A (a)		690		52
Progressive Corp. (The)		604		59
STORE Capital Corp. REIT		19,406		670
SVB Financial Group (a)		1,329		740
Target Corp.		1,561		377
United Rentals, Inc. (a)		851		271
Veeva Systems, Inc., Class A (a)		536		167
				11,644
Total Common Stocks (Cost $13,332)				19,846
Short-Term Investment (2.0%)
Investment Company (2.0%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $412)		411,672		412
Total Investments (99.8%) (Cost $13,744) (b)				20,258
Other Assets in Excess of Liabilities (0.2%)				48
Net Assets (100.0%)			$	20,306

(a) Non-income producing security.

(b) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $6,516,000 and the aggregate gross unrealized depreciation is approximately $2,000, resulting in net unrealized appreciation of approximately $6,514,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		61.8	%
Banks		13.8
Textiles, Apparel & Luxury Goods		7.2
Tech Hardware, Storage & Peripherals		6.3
Software		5.8
Interactive Media & Services		5.1
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Core Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $13,332)	$	19,846
Investment in Security of Affiliated Issuer, at Value (Cost $412)		412
Total Investments in Securities, at Value (Cost $13,744)		20,258
Foreign Currency, at Value (Cost —@)		—	@
Due from Adviser		15
Dividends Receivable		12
Tax Reclaim Receivable		2
Receivable from Affiliate		—	@
Other Assets		66
Total Assets		20,353
Liabilities:
Payable for Professional Fees		32
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		2
Payable for Custodian Fees		1
Payable for Administration Fees		1
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Other Liabilities		11
Total Liabilities		47
Net Assets	$	20,306
Net Assets Consist of:
Paid-in-Capital	$	13,693
Total Distributable Earnings		6,613
Net Assets	$	20,306
CLASS I:
Net Assets	$	15,390
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		864,692
Net Asset Value, Offering and Redemption Price Per Share	$	17.80
CLASS A:
Net Assets	$	2,294
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		129,748
Net Asset Value, Redemption Price Per Share	$	17.68
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.98
Maximum Offering Price Per Share	$	18.66
CLASS C:
Net Assets	$	2,604
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		151,300
Net Asset Value, Offering and Redemption Price Per Share	$	17.21
CLASS IS:
Net Assets	$	18
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,008
Net Asset Value, Offering and Redemption Price Per Share	$	17.80

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Core Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $3 of Foreign Taxes Withheld)	$	89
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		89
Expenses:
Advisory Fees (Note B)		62
Professional Fees		60
Registration Fees		20
Shareholder Services Fees — Class A (Note D)		3
Distribution and Shareholder Services Fees — Class C (Note D)		12
Shareholder Reporting Fees		9
Administration Fees (Note C)		7
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		3
Directors' Fees and Expenses		2
Sub Transfer Agency Fees — Class I		1
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class C		1
Pricing Fees		1
Other Expenses		2
Total Expenses		188
Waiver of Advisory Fees (Note B)		(62	)
Expenses Reimbursed by Adviser (Note B)		(28	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		97
Net Investment Loss		(8	)
Realized Gain:
Investments Sold		339
Foreign Currency Translation		—	@
Net Realized Gain		339
Change in Unrealized Appreciation (Depreciation):
Investments		1,354
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		1,354
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		1,693
Net Increase in Net Assets Resulting from Operations	$	1,685

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Core Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(8	)	$	(3	)
Net Realized Gain		339			68
Net Change in Unrealized Appreciation (Depreciation)		1,354			2,053
Net Increase in Net Assets Resulting from Operations		1,685			2,118
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		4,591			989
Redeemed		(287	)		(793	)
Class A:
Subscribed		334			277
Redeemed		(124	)		(918	)
Class C:
Subscribed		388			371
Redeemed		(13	)		(116	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		4,889			(190	)
Total Increase in Net Assets		6,574			1,928
Net Assets:
Beginning of Period		13,732			11,804
End of Period	$	20,306		$	13,732
(1) Capital Share Transactions:
Class I:
Shares Subscribed		266			66
Shares Redeemed		(17	)		(69	)
Net Increase (Decrease) in Class I Shares Outstanding		249			(3	)
Class A:
Shares Subscribed		19			21
Shares Redeemed		(7	)		(69	)
Net Increase (Decrease) in Class A Shares Outstanding		12			(48	)
Class C:
Shares Subscribed		24			26
Shares Redeemed		(1	)		(9	)
Net Increase in Class C Shares Outstanding		23			17

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Core Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	15.99		$	13.19		$	10.15		$	12.20		$	10.03		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.01			0.02			0.07			0.12			0.07			0.05
Net Realized and Unrealized Gain (Loss)		1.80			2.78			3.07			(2.09	)		2.16			0.06
Total from Investment Operations		1.81			2.80			3.14			(1.97	)		2.23			0.11
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.09	)		(0.08	)		(0.06	)		(0.08	)
Paid-in-Capital		—			—			(0.01	)		—			(0.00	)⁽³⁾		—
Total Distributions		—			—			(0.10	)		(0.08	)		(0.06	)		(0.08	)
Net Asset Value, End of Period	$	17.80		$	15.99		$	13.19		$	10.15		$	12.20		$	10.03
Total Return⁽⁴⁾		11.32	%⁽⁷⁾		21.23	%		30.96	%		(16.15	)%		22.27	%		1.08	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15,390		$	9,849		$	8,157		$	6,738		$	10,398		$	6,517
Ratio of Expenses Before Expense Limitation		2.06	%⁽⁸⁾		2.93	%		2.73	%		2.53	%		2.89	%		3.73	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.97	%⁽⁵⁾⁽⁸⁾		0.99	%⁽⁵⁾		0.98	%⁽⁵⁾		1.00	%⁽⁵⁾		0.97	%⁽⁵⁾		0.98	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income		0.10	%⁽⁵⁾⁽⁸⁾		0.18	%⁽⁵⁾		0.61	%⁽⁵⁾		0.97	%⁽⁵⁾		0.64	%⁽⁵⁾		0.82	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		8	%⁽⁷⁾		30	%		61	%		50	%		41	%		22	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Core Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	15.92		$	13.17		$	10.15		$	12.18		$	10.02		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.02	)		(0.02	)		0.03			0.07			0.03			0.02
Net Realized and Unrealized Gain (Loss)		1.78			2.77			3.05			(2.07	)		2.15			0.06
Total from Investment Operations		1.76			2.75			3.08			(2.00	)		2.18			0.08
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.05	)		(0.03	)		(0.02	)		(0.06	)
Paid-in-Capital		—			—			(0.01	)		—			(0.00	)⁽³⁾		—
Total Distributions		—			—			(0.06	)		(0.03	)		(0.02	)		(0.06	)
Net Asset Value, End of Period	$	17.68		$	15.92		$	13.17		$	10.15		$	12.18		$	10.02
Total Return⁽⁴⁾		11.06	%⁽⁷⁾		20.88	%		30.36	%		(16.41	)%		21.82	%		0.83	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,294		$	1,869		$	2,186		$	1,320		$	1,962		$	1,263
Ratio of Expenses Before Expense Limitation		2.43	%⁽⁸⁾		3.32	%		3.12	%		2.89	%		3.36	%		4.16	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.35	%⁽⁵⁾⁽⁸⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		(0.27	)%⁽⁵⁾⁽⁸⁾		(0.18	)%⁽⁵⁾		0.26	%⁽⁵⁾		0.62	%⁽⁵⁾		0.25	%⁽⁵⁾		0.39	%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		8	%⁽⁷⁾		30	%		61	%		50	%		41	%		22	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Core Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	15.55		$	12.97		$	10.02		$	12.08		$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.08	)		(0.12	)		(0.05	)		(0.01	)		(0.06	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		1.74			2.70			3.00			(2.05	)		2.15			0.06
Total from Investment Operations		1.66			2.58			2.95			(2.06	)		2.09			0.04
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.01	)		(0.04	)
Net Asset Value, End of Period	$	17.21		$	15.55		$	12.97		$	10.02		$	12.08		$	10.00
Total Return⁽³⁾		10.68	%⁽⁶⁾		19.89	%		29.44	%		(17.05	)%		20.92	%		0.41	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,604		$	1,998		$	1,448		$	1,311		$	1,246		$	901
Ratio of Expenses Before Expense Limitation		3.18	%⁽⁷⁾		4.11	%		3.92	%		3.66	%		4.19	%		5.02	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		2.09	%⁽⁴⁾⁽⁷⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾⁽⁷⁾
Ratio of Net Investment Loss		(1.02	)%⁽⁴⁾⁽⁷⁾		(0.94	)%⁽⁴⁾		(0.45	)%⁽⁴⁾		(0.05	)%⁽⁴⁾		(0.50	)%⁽⁴⁾		(0.36	)%⁽⁴⁾⁽⁷⁾
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⁾⁽⁷⁾
Portfolio Turnover Rate		8	%⁽⁶⁾		30	%		61	%		50	%		41	%		22	%⁽⁶⁾

(1) Commencement of Operations.

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

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Core Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	15.99		$	13.18		$	10.15		$	12.20		$	10.03		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.01			0.03			0.07			0.13			0.07			0.05
Net Realized and Unrealized Gain (Loss)		1.80			2.78			3.06			(2.09	)		2.17			0.06
Total from Investment Operations		1.81			2.81			3.13			(1.96	)		2.24			0.11
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.09	)		(0.09	)		(0.07	)		(0.08	)
Paid-in-Capital		—			—			(0.01	)		—			(0.00	)⁽³⁾		—
Total Distributions		—			—			(0.10	)		(0.09	)		(0.07	)		(0.08	)
Net Asset Value, End of Period	$	17.80		$	15.99		$	13.18		$	10.15		$	12.20		$	10.03
Total Return⁽⁴⁾		11.25	%⁽⁷⁾		21.40	%		30.90	%		(16.10	)%		22.29	%		1.10	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	18		$	16		$	13		$	10		$	12		$	10
Ratio of Expenses Before Expense Limitation		12.68	%⁽⁸⁾		18.19	%		18.98	%		19.09	%		18.67	%		19.70	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income		0.12	%⁽⁵⁾⁽⁸⁾		0.22	%⁽⁵⁾		0.63	%⁽⁵⁾		1.06	%⁽⁵⁾		0.66	%⁽⁵⁾		0.84	%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		8	%⁽⁷⁾		30	%		61	%		50	%		41	%		22	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

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

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Airlines	$	217	$	—	$	—	$	217
Automobiles		620		—		—		620
Banks		2,803		—		—		2,803
Beverages		619		—		—		619
Building Products		274		—		—		274
Capital Markets		729		—		—		729
Construction Materials		343		—		—		343
Diversified Telecommunication Services		284		—		—		284
Electric Utilities		452		—		—		452
Entertainment		816		—		—		816
Equity Real Estate Investment Trusts (REITs)		670		—		—		670
Health Care Equipment & Supplies		785		—		—		785
Health Care Technology		167		—		—		167
Hotels, Restaurants & Leisure		860		—		—		860

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Information Technology Services	$	907	$	—	$	—	$	907
Insurance		59		—		—		59
Interactive Media & Services		1,027		—		—		1,027
Internet & Direct Marketing Retail		864		—		—		864
Metals & Mining		300		—		—		300
Multi-Line Retail		377		—		—		377
Oil, Gas & Consumable Fuels		806		—		—		806
Personal Products		541		—		—		541
Professional Services		277		—		—		277
Semiconductors & Semiconductor Equipment		863		—		—		863
Software		1,172		—		—		1,172
Tech Hardware, Storage & Peripherals		1,288		—		—		1,288
Textiles, Apparel & Luxury Goods		1,455		—		—		1,455
Trading Companies & Distributors		271		—		—		271
Total Common Stocks		19,846		—		—		19,846
Short-Term Investment
Investment Company		412		—		—		412
Total Assets	$	20,258	$	—	$	—	$	20,258

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.

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.

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 security markets and the possibility of political or economic instability.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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

6. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $750 million				Next $750 million				Over $1.5 billion
	0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses,

excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $62,000 of advisory fees were waived and approximately $29,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

providing shareholder support services to investors who purchase Class A and Class C shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $5,832,000 and $1,238,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	229			$	4,218			$	4,035			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain(Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	412

@ Amount is less than $500.

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, 2020, remains subject to examination by taxing authorities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Paid-in- Capital (000)		Ordinary Income (000)		Paid-in- Capital (000)
$	—	$	—	$	66	$	4

Permanent differences, primarily due to net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	4			$	(4	)

At December 31, 2020, the Fund had no distributable earnings on a tax basis.

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $169,000 that do not have an expiration date.

1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2021, the Fund did not have any borrowings under the Facility.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 three-year periods and for the period since the end of May 2016, the month of the Fund's inception. 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 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFIGCPSAN
3693652 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Endurance Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					9
Notes to Financial Statements					13
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Global Endurance Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Endurance Portfolio Class I	$	1,000.00	$	1,380.60	$	1,020.03	$	5.67	$	4.81		0.96	%
Global Endurance Portfolio Class A		1,000.00		1,378.30		1,018.20		7.84		6.66		1.33
Global Endurance Portfolio Class C		1,000.00		1,373.30		1,014.38		12.36		10.49		2.10
Global Endurance Portfolio Class IS		1,000.00		1,381.10		1,020.08		5.61		4.76		0.95

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Endurance Portfolio

	Shares		Value (000)
Common Stocks (92.8%)
Canada (6.9%)
Colliers International Group, Inc.		23,956	$	2,683
Constellation Software, Inc.		523		792
Shopify, Inc., Class A (a)		1,357		1,982
				5,457
Finland (0.7%)
Revenio Group Oyj		7,849		595
Japan (1.9%)
Freee KK (a)		10,700		983
Mercari, Inc. (a)		9,500		505
				1,488
Poland (1.9%)
Dino Polska SA (a)		20,798		1,527
Sweden (2.3%)
AddLife AB, Class B		60,027		1,845
United Kingdom (10.4%)
Angle PLC (a)		323,513		611
ASOS PLC (a)		14,662		1,006
Babcock International Group PLC (a)		538,087		2,159
Victoria PLC (a)		300,745		4,451
				8,227
United States (68.7%)
Ajax I, Class A SPAC (a)		136,863		1,363
Appfolio, Inc., Class A (a)		6,441		910
Appian Corp. (a)		15,551		2,142
Cardlytics, Inc. (a)		27,588		3,502
Carvana Co. (a)		5,514		1,664
Coupang, Inc. (a)		16,126		674
Credit Acceptance Corp. (a)		3,369		1,530
Cricut, Inc., Class A (a)		185,491		7,902
Datadog, Inc., Class A (a)		7,535		784

	Shares		Value (000)
Equitable Holdings, Inc.		58,503	$	1,781
Fastly, Inc., Class A (a)		85,132		5,074
Floor & Decor Holdings, Inc., Class A (a)		29,004		3,066
GTT Communications, Inc. (a)		53,065		129
JFrog Ltd. (a)		61,361		2,793
Latch, Inc. (a)		85,886		1,054
Okta, Inc. (a)		6,135		1,501
Party City Holdco, Inc. (a)		253,259		2,363
Porch Group, Inc. (a)		32,720		633
Royalty Pharma PLC, Class A		31,049		1,273
salesforce.com, Inc. (a)		11,702		2,858
Skillz, Inc. (a)		129,976		2,823
Smartsheet, Inc., Class A (a)		39,771		2,876
Soaring Eagle Acquisition Corp. (Units) SPAC (a)(b)		54,135		573
Squarespace, Inc., Class A (a)		11,636		691
Stitch Fix, Inc., Class A (a)		56,874		3,430
UTZ Brands, Inc.		17,683		385
Wayfair, Inc., Class A (a)		2,577		814
				54,588
Total Common Stocks (Cost $63,863)				73,727
Investment Company (0.3%)
Hipgnosis Songs Fund Ltd. (Cost $243)		146,133		246
Short-Term Investment (6.9%)
Investment Company (6.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $5,485)		5,485,188		5,485
Total Investments (100.0%) (Cost $69,591) (c)(j)				79,458
Other Assets in Excess of Liabilities (0.0%) (d)				38
Net Assets (100.0%)			$	79,496

The Fund had the following Derivative Contracts — PIPE open at June 30, 2021.

Counterparty	Referenced Obligation	Notional Amount	Settlement Date	Unrealized (Depreciation) (000)			% of Net Assets
Ajax I	Cazoo Holdings Ltd. (a)(e)(f)(g)(i)	$303,180	12/31/21	$	(37	)		(0.04	)%
Soaring Eagle Acquisition Corp.	Ginkgo Bioworks, Inc. (a)(e)(f)(h)(i)	1,038,320	12/31/21		(149	)		(0.19	)
				$	(186	)		(0.23	)%

(a) Non-income producing security.

(b) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(c) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $10,950,000 and the aggregate gross unrealized depreciation is approximately $1,269,000, resulting in net unrealized appreciation of approximately $9,681,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Global Endurance Portfolio

(d) Amount is less than 0.05%.

(e) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted derivative contracts (excluding 144A holdings) at June 30, 2021 amounts to approximately $(186,000) and represents (0.2)% of net assets.

(f) At June 30, 2021, the Fund held fair valued derivative contracts valued at approximately $(186,000), representing (0.2)% of net assets. These holdings 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.

(g) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 30,318 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Cazoo Holdings Ltd., and Ajax I, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Ajax I and Cazoo Holdings Ltd., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Ajax I and Cazoo Holdings Ltd. The investment is restricted from resale until the settlement date.

(h) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 103,832 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Ginkgo Bioworks, Inc., and Soaring Eagle Acquisition Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Soaring Eagle Acquisition Corp., and Ginkgo Bioworks, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Soaring Eagle Acquisition Corp., and Ginkgo Bioworks, Inc. The investment is restricted from resale until the settlement date.

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

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		28.8	%
Software		19.1
Household Durables		15.6
Information Technology Services		11.8
Specialty Retail		8.9
Internet & Direct Marketing Retail		8.9
Short-Term Investments		6.9
Total Investments		100.0	%**

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

** Does not include open PIPE contracts with total unrealized depreciation of approximately $186,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Endurance Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $64,106)	$	73,973
Investment in Security of Affiliated Issuer, at Value (Cost $5,485)		5,485
Total Investments in Securities, at Value (Cost $69,591)	��	79,458
Foreign Currency, at Value (Cost $11)		11
Receivable for Fund Shares Sold		1,465
Receivable for Investments Sold		464
Dividends Receivable		2
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		54
Total Assets		81,454
Liabilities:
Payable for Investments Purchased		1,655
Payable for Advisory Fees		68
Payable for Professional Fees		31
Payable for Administration Fees		5
Payable for Custodian Fees		3
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Fund Shares Redeemed		—	@
Unrealized Depreciation on Derivative Contracts — PIPE		186
Other Liabilities		8
Total Liabilities		1,958
Net Assets	$	79,496
Net Assets Consist of:
Paid-in-Capital	$	65,777
Total Distributable Earnings		13,719
Net Assets	$	79,496
CLASS I:
Net Assets	$	72,807
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,989,426
Net Asset Value, Offering and Redemption Price Per Share	$	36.60
CLASS A:
Net Assets	$	4,744
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		130,726
Net Asset Value, Redemption Price Per Share	$	36.29
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	2.01
Maximum Offering Price Per Share	$	38.30
CLASS C:
Net Assets	$	1,906
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		53,527
Net Asset Value, Offering and Redemption Price Per Share	$	35.61
CLASS IS:
Net Assets	$	39
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,072
Net Asset Value, Offering and Redemption Price Per Share	$	36.63

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Endurance Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $2 of Foreign Taxes Withheld)	$	44
Income from Securities Loaned — Net		23
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		67
Expenses:
Advisory Fees (Note B)		152
Professional Fees		59
Registration Fees		25
Administration Fees (Note C)		15
Shareholder Services Fees — Class A (Note D)		3
Distribution and Shareholder Services Fees — Class C (Note D)		6
Custodian Fees (Note F)		6
Shareholder Reporting Fees		6
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Sub Transfer Agency Fees — Class I		2
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class C		—	@
Directors' Fees and Expenses		2
Pricing Fees		1
Other Expenses		9
Total Expenses		291
Waiver of Advisory Fees (Note B)		(94	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		195
Net Investment Loss		(128	)
Realized Gain:
Investments Sold		4,090
Foreign Currency Translation		11
Net Realized Gain		4,101
Change in Unrealized Appreciation (Depreciation):
Investments		5,379
Foreign Currency Translation		1
Derivative Contracts — PIPE		(186	)
Net Change in Unrealized Appreciation (Depreciation)		5,194
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		9,295
Net Increase in Net Assets Resulting from Operations	$	9,167

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Endurance Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(128	)	$	(29	)
Net Realized Gain		4,101			430
Net Change in Unrealized Appreciation (Depreciation)		5,194			3,833
Net Increase in Net Assets Resulting from Operations		9,167			4,234
Dividends and Distributions to Shareholders:
Class I		—			(235	)
Class A		—			(73	)
Class C		—			(14	)
Class IS		—			(1	)
Total Dividends and Distributions to Shareholders		—			(323	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		65,051			1,651
Distributions Reinvested		—			235
Redeemed		(8,001	)		(7	)
Class A:
Subscribed		4,727			2,453
Distributions Reinvested		—			73
Redeemed		(3,482	)		(630	)
Class C:
Subscribed		1,896			317
Distributions Reinvested		—			14
Redeemed		(645	)		(32	)
Class IS:
Subscribed		—			1
Distributions Reinvested		—			1
Net Increase in Net Assets Resulting from Capital Share Transactions		59,546			4,076
Total Increase in Net Assets		68,713			7,987
Net Assets:
Beginning of Period		10,783			2,796
End of Period	$	79,496		$	10,783
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,926			76
Shares Issued on Distributions Reinvested		—			9
Shares Redeemed		(233	)		(—	@@)
Net Increase in Class I Shares Outstanding		1,693			85
Class A:
Shares Subscribed		141			117
Shares Issued on Distributions Reinvested		—			3
Shares Redeemed		(104	)		(28	)
Net Increase in Class A Shares Outstanding		37			92
Class C:
Shares Subscribed		57			17
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(20	)		(2	)
Net Increase in Class C Shares Outstanding		37			16
Class IS:
Shares Subscribed		—			—	@@
Shares Issued on Distributions Reinvested		—			—	@@
Net Increase in Class IS Shares Outstanding		—			—	@@

@@ Amount is less than $500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Endurance Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,						Period Ended
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	26.51		$	13.03		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.10	)		(0.09	)		(0.05	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		10.19			14.41			3.10			(0.02	)
Total from Investment Operations		10.09			14.32			3.05			(0.02	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.03	)		—			—
Net Realized Gain		—			(0.81	)		—			—
Total Distributions		—			(0.84	)		—			—
Net Asset Value, End of Period	$	36.60		$	26.51		$	13.03		$	9.98
Total Return⁽⁴⁾		38.06	%⁽⁷⁾		110.03	%		30.30	%		0.00	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	72,807		$	7,854		$	2,757		$	2,017
Ratio of Expenses Before Expense Limitation		1.46	%⁽⁸⁾		5.12	%		14.17	%		913.94	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.96	%⁽⁵⁾⁽⁸⁾		1.00	%⁽⁵⁾		1.00	%⁽⁵⁾		1.00	%⁽⁸⁾
Ratio of Net Investment Loss		(0.61	)%⁽⁵⁾⁽⁸⁾		(0.52	)%⁽⁵⁾		(0.42	)%⁽⁵⁾		(1.00	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		N/A
Portfolio Turnover Rate		39	%⁽⁷⁾		46	%		74	%		0	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Endurance Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,						Period Ended
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	26.33		$	12.99		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.14	)		(0.19	)		(0.09	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		10.10			14.34			3.10			(0.02	)
Total from Investment Operations		9.96			14.15			3.01			(0.02	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.00	)⁽³⁾		—			—
Net Realized Gain		—			(0.81	)		—			—
Total Distributions		—			(0.81	)		—			—
Net Asset Value, End of Period	$	36.29		$	26.33		$	12.99		$	9.98
Total Return⁽⁴⁾		37.83	%⁽⁷⁾		109.10	%		29.90	%		0.00	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,744		$	2,462		$	13		$	10
Ratio of Expenses Before Expense Limitation		1.83	%⁽⁸⁾		5.67	%		29.52	%		927.90	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.33	%⁽⁵⁾⁽⁸⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁸⁾
Ratio of Net Investment Loss		(0.87	)%⁽⁵⁾⁽⁸⁾		(0.86	)%⁽⁵⁾		(0.77	)%⁽⁵⁾		(1.35	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		N/A
Portfolio Turnover Rate		39	%⁽⁷⁾		46	%		74	%		0	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Endurance Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,						Period Ended
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	25.93		$	12.89		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.28	)		(0.33	)		(0.18	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		9.96			14.18			3.09			(0.02	)
Total from Investment Operations		9.68			13.85			2.91			(0.02	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.81	)		—			—
Net Asset Value, End of Period	$	35.61		$	25.93		$	12.89		$	9.98
Total Return⁽⁴⁾		37.33	%⁽⁷⁾		107.59	%		28.90	%		0.00	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,906		$	439		$	13		$	10
Ratio of Expenses Before Expense Limitation		2.61	%⁽⁸⁾		7.61	%		30.23	%		928.63	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.10	%⁽⁵⁾⁽⁸⁾		2.10	%⁽⁵⁾		2.10	%⁽⁵⁾		2.10	%⁽⁸⁾
Ratio of Net Investment Loss		(1.76	)%⁽⁵⁾⁽⁸⁾		(1.62	)%⁽⁵⁾		(1.52	)%⁽⁵⁾		(2.10	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		N/A
Portfolio Turnover Rate		39	%⁽⁷⁾		46	%		74	%		0	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Endurance Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,						Period Ended
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	26.53		$	13.04		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.09	)		(0.08	)		(0.04	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		10.19			14.41			3.10			(0.02	)
Total from Investment Operations		10.10			14.33			3.06			(0.02	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.03	)		—			—
Net Realized Gain		—			(0.81	)		—			—
Total Distributions		—			(0.84	)		—			—
Net Asset Value, End of Period	$	36.63		$	26.53		$	13.04		$	9.98
Total Return⁽⁴⁾		38.11	%⁽⁷⁾		110.08	%		30.40	%		0.00	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	39		$	28		$	13		$	10
Ratio of Expenses Before Expense Limitation		6.44	%⁽⁸⁾		16.93	%		29.13	%		927.65	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁸⁾
Ratio of Net Investment Loss		(0.52	)%⁽⁵⁾⁽⁸⁾		(0.47	)%⁽⁵⁾		(0.37	)%⁽⁵⁾		(0.95	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		N/A
Portfolio Turnover Rate		39	%⁽⁷⁾		46	%		74	%		0	%⁽⁷⁾

(1) Commencement of Operations.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

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

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• 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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Commercial Services & Supplies	$	2,159	$	—	$	—	$	2,159
Consumer Finance		1,530		—		—		1,530
Diversified Financial Services		1,781		—		—		1,781
Diversified Holding Companies		573		—		—		573
Entertainment		2,823		—		—		2,823
Food & Staples Retailing		1,527		—		—		1,527
Food Products		385		—		—		385
Health Care Equipment & Supplies		1,206		—		—		1,206
Household Durables		12,353		—		—		12,353
Information Technology Services		9,377		—		—		9,377
Internet & Direct Marketing Retail		7,062		—		—		7,062
Life Sciences Tools & Services		1,845		—		—		1,845
Media		3,502		—		—		3,502
Other		1,363		—		—		1,363
Pharmaceuticals		1,273		—		—		1,273

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Real Estate Management & Development	$	2,683	$	—	$	—		$	2,683
Software		15,192		—		—			15,192
Specialty Retail		7,093		—		—			7,093
Total Common Stocks		73,727		—		—			73,727
Investment Company		246		—		—			246
Short-Term Investment
Investment Company		5,485		—		—			5,485
Total Assets	$	79,458	$	—	$	—		$	79,458
Liabilities:
Derivative Contracts — PIPE		—		—		(186	)		(186	)
Total	$	79,458	$	—	$	(186	)	$	79,272

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:

	Derivative Contracts — PIPE (000)
Beginning Balance	$	—
Purchases		—
Sales		—
PIPE transactions		(186	)
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	(186	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	(186	)

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, 2021:

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Range/Weighted
Average*

Impact to
Valuation from an
Increase in Input**

PIPE

(186

)

Market Implied

Discount for Lack of
Marketability
and Transaction Risk

12.0%–14.0%/13.5%

Decrease

* Amount is indicative of the weighted average.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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:

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as Derivative Contracts — PIPE in the Portfolio of Investments.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contracts — PIPE

Equity Risk

(186

)

The following table sets forth by primary risk exposure the Fund's change in unrealized appreciation (depreciation) by type of derivative contract for the

six months ended June 30, 2021 in accordance with ASC 815:

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Derivative Contracts — PIPE	$	(186	)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities(a) (000)
Derivative Contracts — PIPE	$	—	$	(186	)

(a) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Derivative Contracts — PIPE:
Average monthly notional amount				$	822,000

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

At June 30, 2021, the Fund did not have any outstanding securities on loan.

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.

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

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.30% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $94,000 of advisory fees were waived and approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $69,550,000 and $14,253,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds -Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	226			$	57,896			$	52,637			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	5,485

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the three-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	31	$	292	$	—	$	—

Permanent differences, primarily due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	—	@		$	(—	@)

@ Amount is less than $500.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	51			$	130

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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-year period and for the period since the end of December 2018, the month of the Fund's inception. 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFIGENDSAN
3693662 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Franchise Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					10
Notes to Financial Statements					15
Investment Advisory Agreement Approval					21
Liquidity Risk Management Program					23
U.S. Customer Privacy Notice					24
Director and Officer Information					27

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Global Franchise Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Franchise Portfolio Class I	$	1,000.00	$	1,098.10	$	1,020.33	$	4.68	$	4.51		0.90	%
Global Franchise Portfolio Class A		1,000.00		1,096.60		1,019.14		5.93		5.71		1.14
Global Franchise Portfolio Class L		1,000.00		1,094.00		1,016.61		8.57		8.25		1.65
Global Franchise Portfolio Class C		1,000.00		1,092.70		1,015.37		9.86		9.49		1.90
Global Franchise Portfolio Class IS		1,000.00		1,098.70		1,020.73		4.27		4.11		0.82

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Franchise Portfolio

	Shares		Value (000)
Common Stocks (98.7%)
France (6.5%)
L'Oreal SA (BSRM)		158,962	$	70,834
LVMH Moet Hennessy Louis Vuitton SE		74,434		58,367
Pernod Ricard SA		397,730		88,285
				217,486
Germany (4.6%)
SAP SE		1,099,711		154,965
Italy (0.5%)
Davide Campari-Milano N.V.		1,352,123		18,109
Netherlands (2.4%)
Heineken N.V.		652,522		79,075
United Kingdom (13.0%)
British American Tobacco PLC		1,954,607		75,707
Experian PLC		1,022,255		39,396
Reckitt Benckiser Group PLC		2,740,988		242,549
RELX PLC (Euronext N.V.)		591,301		15,762
RELX PLC (LSE)		2,253,460		59,819
				433,233
United States (71.7%)
Abbott Laboratories		1,217,118		141,100
Accenture PLC, Class A		497,493		146,656
Automatic Data Processing, Inc.		681,890		135,437
Baxter International, Inc.		1,650,335		132,852
Becton Dickinson & Co.		515,068		125,259
Coca-Cola Co. (The)		1,096,280		59,320
Danaher Corp.		553,685		148,587
Estee Lauder Cos., Inc. (The), Class A		112,390		35,749
Factset Research Systems, Inc.		59,967		20,125
Fidelity National Information Services, Inc.		573,051		81,184
Intercontinental Exchange, Inc.		747,356		88,711
Microsoft Corp.		1,188,768		322,037
Moody's Corp.		113,198		41,019
NIKE, Inc., Class B		256,210		39,582
Philip Morris International, Inc.		2,928,894		290,283
Procter & Gamble Co. (The)		1,074,517		144,985
Roper Technologies, Inc.		157,241		73,935
Thermo Fisher Scientific, Inc.		271,841		137,136
Visa, Inc., Class A		778,268		181,975
Zoetis, Inc.		243,905		45,454
				2,391,386
Total Common Stocks (Cost $2,272,162)				3,294,254
Short-Term Investment (1.2%)
Investment Company (1.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $39,782)		39,781,552		39,782
Total Investments (99.9%) (Cost $2,311,944) (a)				3,334,036
Other Assets in Excess of Liabilities (0.1%)				2,562
Net Assets (100.0%)			$	3,336,598

(a) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,033,453,000 and the aggregate gross unrealized depreciation is approximately $11,361,000, resulting in net unrealized appreciation of approximately $1,022,092,000.

BSRM Berlin Second Regulated Market.

Euronext N.V. Euronext Amsterdam Stock Market.

LSE London Stock Exchange.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		23.0	%
Health Care Equipment & Supplies		16.4
Information Technology Services		16.4
Software		14.3
Household Products		11.6
Tobacco		11.0
Beverages		7.3
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.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Franchise Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $2,272,162)	$	3,294,254
Investment in Security of Affiliated Issuer, at Value (Cost $39,782)		39,782
Total Investments in Securities, at Value (Cost $2,311,944)		3,334,036
Receivable for Investments Sold		7,161
Dividends Receivable		5,661
Receivable for Fund Shares Sold		2,880
Tax Reclaim Receivable		920
Receivable from Affiliate		—	@
Other Assets		187
Total Assets		3,350,845
Liabilities:
Payable for Investments Purchased		6,375
Payable for Advisory Fees		5,849
Payable for Fund Shares Redeemed		1,293
Payable for Sub Transfer Agency Fees — Class I		192
Payable for Sub Transfer Agency Fees — Class A		20
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Sub Transfer Agency Fees — Class C		12
Payable for Administration Fees		217
Payable for Shareholder Services Fees — Class A		70
Payable for Distribution and Shareholder Services Fees — Class L		5
Payable for Distribution and Shareholder Services Fees — Class C		110
Payable for Custodian Fees		33
Payable for Professional Fees		22
Payable for Transfer Agency Fees — Class I		5
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		2
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		40
Total Liabilities		14,247
Net Assets	$	3,336,598
Net Assets Consist of:
Paid-in-Capital	$	2,287,895
Total Distributable Earnings		1,048,703
Net Assets	$	3,336,598

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Franchise Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	2,450,984
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		71,530,952
Net Asset Value, Offering and Redemption Price Per Share	$	34.26
CLASS A:
Net Assets	$	345,952
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		10,362,996
Net Asset Value, Redemption Price Per Share	$	33.38
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.85
Maximum Offering Price Per Share	$	35.23
CLASS L:
Net Assets	$	8,673
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		260,685
Net Asset Value, Offering and Redemption Price Per Share	$	33.27
CLASS C:
Net Assets	$	137,190
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		4,216,730
Net Asset Value, Offering and Redemption Price Per Share	$	32.53
CLASS IS:
Net Assets	$	393,799
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		11,484,187
Net Asset Value, Offering and Redemption Price Per Share	$	34.29

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Franchise Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $682 of Foreign Taxes Withheld)	$	29,294
Dividends from Security of Affiliated Issuer (Note G)		3
Total Investment Income		29,297
Expenses:
Advisory Fees (Note B)		11,341
Administration Fees (Note C)		1,254
Sub Transfer Agency Fees — Class I		959
Sub Transfer Agency Fees — Class A		117
Sub Transfer Agency Fees — Class L		2
Sub Transfer Agency Fees — Class C		45
Shareholder Services Fees — Class A (Note D)		399
Distribution and Shareholder Services Fees — Class L (Note D)		31
Distribution and Shareholder Services Fees — Class C (Note D)		639
Registration Fees		93
Professional Fees		66
Custodian Fees (Note F)		43
Shareholder Reporting Fees		24
Transfer Agency Fees — Class I (Note E)		15
Transfer Agency Fees — Class A (Note E)		3
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		3
Transfer Agency Fees — Class IS (Note E)		2
Directors' Fees and Expenses		18
Pricing Fees		1
Other Expenses		30
Total Expenses		15,086
Rebate from Morgan Stanley Affiliate (Note G)		(17	)
Net Expenses		15,069
Net Investment Income		14,228
Realized Gain:
Investments Sold		32,397
Foreign Currency Translation		112
Net Realized Gain		32,509
Change in Unrealized Appreciation (Depreciation):
Investments		249,093
Foreign Currency Translation		(48	)
Net Change in Unrealized Appreciation (Depreciation)		249,045
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		281,554
Net Increase in Net Assets Resulting from Operations	$	295,782

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Franchise Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	14,228		$	24,600
Net Realized Gain		32,509			65,054
Net Change in Unrealized Appreciation (Depreciation)		249,045			262,233
Net Increase in Net Assets Resulting from Operations		295,782			351,887
Dividends and Distributions to Shareholders:
Class I		—			(77,432	)
Class A		—			(10,258	)
Class L		—			(235	)
Class C		—			(3,376	)
Class IS		—			(10,185	)
Total Dividends and Distributions to Shareholders		—			(101,486	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		325,027			925,113
Distributions Reinvested		—			74,251
Redeemed		(393,201	)		(495,524	)
Class A:
Subscribed		45,805			94,968
Distributions Reinvested		—			9,770
Redeemed		(47,318	)		(103,292	)
Class L:
Exchanged		16			20
Distributions Reinvested		—			234
Redeemed		(498	)		(881	)
Class C:
Subscribed		15,381			40,555
Distributions Reinvested		—			3,270
Redeemed		(15,672	)		(26,830	)
Class IS:
Subscribed		35,286			323,345
Distributions Reinvested		—			9,909
Redeemed		(46,567	)		(113,147	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(81,741	)		741,761
Total Increase in Net Assets		214,041			992,162
Net Assets:
Beginning of Period		3,122,557			2,130,395
End of Period	$	3,336,598		$	3,122,557

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Franchise Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		10,179			33,099
Shares Issued on Distributions Reinvested		—			2,414
Shares Redeemed		(12,372	)		(17,628	)
Net Increase (Decrease) in Class I Shares Outstanding		(2,193	)		17,885
Class A:
Shares Subscribed		1,455			3,390
Shares Issued on Distributions Reinvested		—			326
Shares Redeemed		(1,529	)		(3,779	)
Net Decrease in Class A Shares Outstanding		(74	)		(63	)
Class L:
Shares Exchanged		1			1
Shares Issued on Distributions Reinvested		—			8
Shares Redeemed		(16	)		(34	)
Net Decrease in Class L Shares Outstanding		(15	)		(25	)
Class C:
Shares Subscribed		502			1,471
Shares Issued on Distributions Reinvested		—			111
Shares Redeemed		(514	)		(985	)
Net Increase (Decrease) in Class C Shares Outstanding		(12	)		597
Class IS:
Shares Subscribed		1,083			10,853
Shares Issued on Distributions Reinvested		—			322
Shares Redeemed		(1,456	)		(4,129	)
Net Increase (Decrease) in Class IS Shares Outstanding		(373	)		7,046

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Franchise Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	31.20		$	28.53		$	23.03		$	24.72		$	20.56		$	20.33
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.15			0.30			0.30			0.29			0.27			0.30
Net Realized and Unrealized Gain (Loss)		2.91			3.45			6.51			(0.63	)		5.05			0.84
Total from Investment Operations		3.06			3.75			6.81			(0.34	)		5.32			1.14
Distributions from and/or in Excess of:
Net Investment Income		—			(0.28	)		(0.27	)		(0.27	)		(0.24	)		(0.28	)
Net Realized Gain		—			(0.80	)		(1.04	)		(1.08	)		(0.92	)		(0.63	)
Total Distributions		—			(1.08	)		(1.31	)		(1.35	)		(1.16	)		(0.91	)
Net Asset Value, End of Period	$	34.26		$	31.20		$	28.53		$	23.03		$	24.72		$	20.56
Total Return⁽³⁾		9.81	%⁽⁶⁾		13.22	%		29.60	%		(1.50	)%		25.85	%		5.64	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,450,984		$	2,300,448		$	1,593,092		$	918,409		$	753,107		$	601,340
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			N/A			0.98	%
Ratio of Expenses After Expense Limitation		0.90	%⁽⁴⁾⁽⁷⁾		0.92	%⁽⁴⁾		0.93	%⁽⁴⁾		0.94	%⁽⁴⁾		0.98	%⁽⁴⁾		0.97	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.92	%⁽⁴⁾		0.93	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.96	%⁽⁴⁾⁽⁷⁾		1.04	%⁽⁴⁾		1.09	%⁽⁴⁾		1.14	%⁽⁴⁾		1.17	%⁽⁴⁾		1.40	%⁽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		9	%⁽⁶⁾		19	%		16	%		27	%		28	%		30	%

(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 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

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

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

(4) The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income 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.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Franchise Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	30.44		$	27.86		$	22.53		$	24.21		$	20.16		$	19.96
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.11			0.22			0.23			0.21			0.22			0.23
Net Realized and Unrealized Gain (Loss)		2.83			3.37			6.35			(0.61	)		4.94			0.83
Total from Investment Operations		2.94			3.59			6.58			(0.40	)		5.16			1.06
Distributions from and/or in Excess of:
Net Investment Income		—			(0.21	)		(0.21	)		(0.20	)		(0.19	)		(0.23	)
Net Realized Gain		—			(0.80	)		(1.04	)		(1.08	)		(0.92	)		(0.63	)
Total Distributions		—			(1.01	)		(1.25	)		(1.28	)		(1.11	)		(0.86	)
Net Asset Value, End of Period	$	33.38		$	30.44		$	27.86		$	22.53		$	24.21		$	20.16
Total Return⁽³⁾		9.66	%⁽⁶⁾		12.95	%		29.24	%		(1.77	)%		25.58	%		5.36	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	345,952		$	317,673		$	292,491		$	150,936		$	146,722		$	104,306
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			N/A			1.23	%
Ratio of Expenses After Expense Limitation		1.14	%⁽⁴⁾⁽⁷⁾		1.16	%⁽⁴⁾		1.19	%⁽⁴⁾		1.23	%⁽⁴⁾		1.21	%⁽⁴⁾		1.22	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.16	%⁽⁴⁾		1.19	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.72	%⁽⁴⁾⁽⁷⁾		0.77	%⁽⁴⁾		0.83	%⁽⁴⁾		0.84	%⁽⁴⁾		0.94	%⁽⁴⁾		1.13	%⁽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		9	%⁽⁶⁾		19	%		16	%		27	%		28	%		30	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

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

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

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Franchise Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	30.41		$	27.84		$	22.51		$	24.18		$	20.13		$	19.91
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.03			0.07			0.09			0.09			0.10			0.13
Net Realized and Unrealized Gain (Loss)		2.83			3.36			6.35			(0.62	)		4.93			0.82
Total from Investment Operations		2.86			3.43			6.44			(0.53	)		5.03			0.95
Distributions from and/or in Excess of:
Net Investment Income		—			(0.06	)		(0.07	)		(0.06	)		(0.06	)		(0.10	)
Net Realized Gain		—			(0.80	)		(1.04	)		(1.08	)		(0.92	)		(0.63	)
Total Distributions		—			(0.86	)		(1.11	)		(1.14	)		(0.98	)		(0.73	)
Net Asset Value, End of Period	$	33.27		$	30.41		$	27.84		$	22.51		$	24.18		$	20.13
Total Return⁽³⁾		9.40	%⁽⁶⁾		12.38	%		28.62	%		(2.29	)%		24.98	%		4.82	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8,673		$	8,390		$	8,388		$	7,312		$	7,993		$	7,449
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			N/A			1.72	%
Ratio of Expenses After Expense Limitation		1.65	%⁽⁴⁾⁽⁷⁾		1.66	%⁽⁴⁾		1.69	%⁽⁴⁾		1.73	%⁽⁴⁾		1.70	%⁽⁴⁾		1.71	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.66	%⁽⁴⁾		1.69	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.21	%⁽⁴⁾⁽⁷⁾		0.26	%⁽⁴⁾		0.31	%⁽⁴⁾		0.36	%⁽⁴⁾		0.44	%⁽⁴⁾		0.65	%⁽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		9	%⁽⁶⁾		19	%		16	%		27	%		28	%		30	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% 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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Franchise Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	29.77		$	27.30		$	22.13		$	23.82		$	19.88		$	19.75
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.00	)⁽³⁾		0.01			0.02			0.03			0.04			0.06
Net Realized and Unrealized Gain (Loss)		2.76			3.27			6.23			(0.60	)		4.86			0.84
Total from Investment Operations		2.76			3.28			6.25			(0.57	)		4.90			0.90
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.04	)		(0.04	)		(0.04	)		(0.14	)
Net Realized Gain		—			(0.80	)		(1.04	)		(1.08	)		(0.92	)		(0.63	)
Total Distributions		—			(0.81	)		(1.08	)		(1.12	)		(0.96	)		(0.77	)
Net Asset Value, End of Period	$	32.53		$	29.77		$	27.30		$	22.13		$	23.82		$	19.88
Total Return⁽⁴⁾		9.27	%⁽⁷⁾		12.09	%		28.27	%		(2.51	)%		24.63	%		4.58	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	137,190		$	125,919		$	99,141		$	55,271		$	47,726		$	29,650
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			N/A			2.00	%
Ratio of Expenses After Expense Limitation		1.90	%⁽⁵⁾⁽⁸⁾		1.91	%⁽⁵⁾		1.95	%⁽⁵⁾		1.96	%⁽⁵⁾		1.98	%⁽⁵⁾		1.99	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.91	%⁽⁵⁾		1.95	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.03	)%⁽⁵⁾⁽⁸⁾		0.03	%⁽⁵⁾		0.07	%⁽⁵⁾		0.12	%⁽⁵⁾		0.16	%⁽⁵⁾		0.29	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		9	%⁽⁷⁾		19	%		16	%		27	%		28	%		30	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

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

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Franchise Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	31.21		$	28.53		$	23.03		$	24.72		$	20.55		$	20.33
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.17			0.33			0.32			0.32			0.29			0.21
Net Realized and Unrealized Gain (Loss)		2.91			3.45			6.51			(0.65	)		5.05			0.93
Total from Investment Operations		3.08			3.78			6.83			(0.33	)		5.34			1.14
Distributions from and/or in Excess of:
Net Investment Income		—			(0.30	)		(0.29	)		(0.28	)		(0.25	)		(0.29	)
Net Realized Gain		—			(0.80	)		(1.04	)		(1.08	)		(0.92	)		(0.63	)
Total Distributions		—			(1.10	)		(1.33	)		(1.36	)		(1.17	)		(0.92	)
Net Asset Value, End of Period	$	34.29		$	31.21		$	28.53		$	23.03		$	24.72		$	20.55
Total Return⁽³⁾		9.87	%⁽⁶⁾		13.33	%		29.67	%		(1.45	)%		26.00	%		5.70	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	393,799		$	370,127		$	137,283		$	204,031		$	90,488		$	19,334
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			N/A			0.94	%
Ratio of Expenses After Expense Limitation		0.82	%⁽⁴⁾⁽⁷⁾		0.83	%⁽⁴⁾		0.86	%⁽⁴⁾		0.88	%⁽⁴⁾		0.91	%⁽⁴⁾		0.92	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.83	%⁽⁴⁾		0.86	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		1.06	%⁽⁴⁾⁽⁷⁾		1.14	%⁽⁴⁾		1.21	%⁽⁴⁾		1.30	%⁽⁴⁾		1.23	%⁽⁴⁾		0.99	%⁽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		9	%⁽⁶⁾		19	%		16	%		27	%		28	%		30	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% 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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

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

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Beverages	$	244,789	$	—	$	—	$	244,789
Capital Markets		149,855		—		—		149,855
Health Care Equipment & Supplies		547,798		—		—		547,798
Household Products		387,534		—		—		387,534
Industrial Conglomerates		73,935		—		—		73,935
Information Technology Services		545,252		—		—		545,252
Life Sciences Tools & Services		137,136		—		—		137,136
Personal Products		106,583		—		—		106,583
Pharmaceuticals		45,454		—		—		45,454
Professional Services		114,977		—		—		114,977
Software		477,002		—		—		477,002
Textiles, Apparel & Luxury Goods		97,949		—		—		97,949
Tobacco		365,990		—		—		365,990
Total Common Stocks		3,294,254		—		—		3,294,254
Short-Term Investment
Investment Company		39,782		—		—		39,782
Total Assets	$	3,334,036	$	—	$	—	$	3,334,036

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

For the six months ended June 30, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.72% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses,

excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.95% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

0.50% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $280,277,000 and $320,406,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by approximately $17,000 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, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	65,563			$	318,652			$	344,433			$	3

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	39,782

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	25,074	$	76,412	$	22,253	$	69,675

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	86			$	3,573

I. Credit Facility: The Company and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State

Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2021, the Fund did not have any borrowings under the Facility.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 was higher than but close to 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 (i) Fund's 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFIGFSAN
3692257 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Infrastructure Portfolio

Semi-Annual Report

June 30, 2021

FSVPRO-00

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Global Infrastructure Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		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	$	1,097.40	$	1,019.98	$	5.04	$	4.86		0.97	%
Global Infrastructure Portfolio Class A		1,000.00		1,096.30		1,018.79		6.29		6.06		1.21
Global Infrastructure Portfolio Class L		1,000.00		1,093.10		1,015.97		9.24		8.90		1.78
Global Infrastructure Portfolio Class C		1,000.00		1,091.70		1,014.53		10.74		10.34		2.07
Global Infrastructure Portfolio Class IS		1,000.00		1,097.80		1,020.13		4.89		4.71		0.94
Global Infrastructure Portfolio Class IR		1,000.00		1,097.40		1,020.13		4.89		4.71		0.94

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Infrastructure Portfolio

	Shares		Value (000)
Common Stocks (97.6%)
Australia (4.3%)
Atlas Arteria Ltd. (Units) (a)		657,737	$	3,142
Sydney Airport (Units) (a)(b)		497,924		2,162
Transurban Group (Units) (a)		745,367		7,955
				13,259
Canada (11.4%)
Canadian National Railway Co.		16,873		1,780
Enbridge, Inc.		270,675		10,837
Gibson Energy, Inc. (c)		517,528		9,916
Pembina Pipeline Corp. (c)		150,946		4,797
TC Energy Corp.		162,566		8,044
				35,374
China (8.6%)
China Everbright Environment Group Ltd. (d)		1,650,000		935
China Gas Holdings Ltd. (d)		3,635,200		11,096
China Merchants Port Holdings Co., Ltd. (d)		1,349,921		1,972
GDS Holdings Ltd. ADR (b)		70,427		5,528
Jiangsu Expressway Co., Ltd. H Shares (d)		2,282,000		2,583
Zhejiang Expressway Co., Ltd., Class H (d)		5,056,000		4,500
				26,614
Denmark (1.2%)
Orsted A/S		26,479		3,715
France (5.5%)
Getlink SE		180,884		2,820
Vinci SA		134,471		14,349
				17,169
Germany (1.1%)
Vantage Towers AG (b)		101,810		3,279
Hong Kong (1.1%)
Power Assets Holdings Ltd.		535,500		3,286
India (0.3%)
Azure Power Global Ltd. (b)		33,183		893
Italy (3.1%)
Atlantia SpA (b)		152,280		2,757
Infrastrutture Wireless Italiane SpA		355,883		4,014
Terna SpA		371,365		2,767
				9,538
Japan (2.0%)
Central Japan Railway Co.		14,400		2,184
East Japan Railway Co.		56,700		4,046
				6,230
Mexico (3.4%)
Grupo Aeroportuario del Pacifico SAB de CV, Class B (b)		357,543		3,828
Grupo Aeroportuario del Sureste SAB de CV, Class B (b)		236,257		4,350
Promotora y Operadora de Infraestructura SAB de CV		305,108		2,436
				10,614

	Shares		Value (000)
New Zealand (0.6%)
Auckland International Airport Ltd. (b)		346,432	$	1,760
Portugal (0.5%)
EDP Renovaveis SA		61,977		1,436
Spain (4.6%)
Aena SME SA (b)		14,824		2,431
Cellnex Telecom SA		94,460		6,017
Ferrovial SA		126,230		3,705
Iberdrola SA		168,459		2,053
				14,206
Switzerland (0.9%)
Flughafen Zurich AG (Registered) (b)		17,257		2,854
United Kingdom (5.7%)
National Grid PLC		964,003		12,279
Pennon Group PLC		185,523		2,914
Severn Trent PLC		71,134		2,461
				17,654
United States (43.3%)
Ameren Corp.		48,684		3,897
American Electric Power Co., Inc.		63,091		5,337
American Tower Corp. REIT		96,199		25,987
American Water Works Co., Inc.		39,535		6,094
Atmos Energy Corp.		40,998		3,940
Avangrid, Inc. (c)		61,436		3,160
Cheniere Energy, Inc. (b)		91,085		7,901
Crown Castle International Corp. REIT		123,685		24,131
Edison International		93,506		5,406
Eversource Energy		69,402		5,569
NextEra Energy, Inc.		10,702		784
ONEOK, Inc.		156,467		8,706
Republic Services, Inc.		35,904		3,950
SBA Communications Corp. REIT		21,021		6,699
Sempra Energy		66,176		8,767
Targa Resources Corp.		136,937		6,087
Union Pacific Corp.		8,646		1,901
Williams Cos., Inc. (The)		225,281		5,981
				134,297
Total Common Stocks (Cost $225,808)				302,178
Short-Term Investments (3.8%)
Securities held as Collateral on Loaned Securities (0.5%)
Investment Company (0.4%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		1,318,157		1,318

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Global Infrastructure Portfolio

	Face Amount (000)		Value (000)
Repurchase Agreements (0.1%)
HSBC Securities USA, Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $62; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $63)	$	62	$	62
Merrill Lynch & Co., Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $174; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 12/30/21 - 8/15/43; valued at $177)		174		174
				236
Total Securities held as Collateral on Loaned Securities (Cost $1,554)				1,554
	Shares
Investment Company (3.3%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $10,351)		10,350,797		10,351
Total Short-Term Investments (Cost $11,905)				11,905
Total Investments (101.4%) (Cost $237,713) Including $7,678 of Securities Loaned (e)				314,083
Liabilities in Excess of Other Assets (–1.4%)				(4,232	)
Net Assets (100.0%)			$	309,851

(a) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(b) Non-income producing security.

(d) Security trades on the Hong Kong exchange.

(e) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $79,711,000 and the aggregate gross unrealized depreciation is approximately $3,341,000, resulting in net unrealized appreciation of approximately $76,370,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

Portfolio Composition*

Classification	Percentage of Total Investments
Oil & Gas Storage & Transportation		27.5	%
Communications		24.2
Other**		15.5
Electricity Transmission & Distribution		13.0
Toll Roads		8.4
Diversified		5.8
Airports		5.6
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Infrastructure Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $226,044)	$	302,414
Investment in Security of Affiliated Issuer, at Value (Cost $11,669)		11,669
Total Investments in Securities, at Value (Cost $237,713)		314,083
Foreign Currency, at Value (Cost $936)		931
Cash from Securities Lending		45
Dividends Receivable		1,190
Receivable for Investments Sold		547
Receivable for Fund Shares Sold		262
Tax Reclaim Receivable		55
Receivable from Securities Lending Income		1
Receivable from Affiliate		—	@
Other Assets		100
Total Assets		317,214
Liabilities:
Payable for Investments Purchased		4,847
Collateral on Securities Loaned, at Value		1,599
Payable for Advisory Fees		511
Payable for Fund Shares Redeemed		160
Payable for Shareholder Services Fees — Class A		48
Payable for Distribution and Shareholder Services Fees — Class L		2
Payable for Distribution and Shareholder Services Fees — Class C		3
Payable for Directors' Fees and Expenses		39
Payable for Sub Transfer Agency Fees — Class I		15
Payable for Sub Transfer Agency Fees — Class A		22
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Professional Fees		31
Payable for Administration Fees		21
Payable for Custodian Fees		19
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		9
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Transfer Agency Fees — Class IR		—	@
Other Liabilities		36
Total Liabilities		7,363
Net Assets	$	309,851
Net Assets Consist of:
Paid-in-Capital	$	224,682
Total Distributable Earnings		85,169
Net Assets	$	309,851

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Infrastructure Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	71,632
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		4,507,843
Net Asset Value, Offering and Redemption Price Per Share	$	15.89
CLASS A:
Net Assets	$	231,089
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		14,597,235
Net Asset Value, Redemption Price Per Share	$	15.83
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.88
Maximum Offering Price Per Share	$	16.71
CLASS L:
Net Assets	$	3,323
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		211,071
Net Asset Value, Offering and Redemption Price Per Share	$	15.74
CLASS C:
Net Assets	$	3,783
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		244,420
Net Asset Value, Offering and Redemption Price Per Share	$	15.48
CLASS IS:
Net Assets	$	12
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		786
Net Asset Value, Offering and Redemption Price Per Share	$	15.82
CLASS IR:
Net Assets	$	12
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		766
Net Asset Value, Offering and Redemption Price Per Share	$	15.88
⁽¹⁾ Including: Securities on Loan, at Value:	$	7,678

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Infrastructure Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $300 of Foreign Taxes Withheld)	$	4,528
Income from Securities Loaned — Net		12
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		4,540
Expenses:
Advisory Fees (Note B)		1,226
Shareholder Services Fees — Class A (Note D)		274
Distribution and Shareholder Services Fees — Class L (Note D)		12
Distribution and Shareholder Services Fees — Class C (Note D)		16
Sub Transfer Agency Fees — Class I		44
Sub Transfer Agency Fees — Class A		72
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		1
Administration Fees (Note C)		115
Professional Fees		58
Custodian Fees (Note F)		31
Registration Fees		31
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		19
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Transfer Agency Fees — Class IR (Note E)		1
Shareholder Reporting Fees		15
Directors' Fees and Expenses		4
Pricing Fees		2
Other Expenses		7
Total Expenses		1,934
Waiver of Advisory Fees (Note B)		(134	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(36	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(69	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		1,690
Net Investment Income		2,850
Realized Gain (Loss):
Investments Sold		7,440
Foreign Currency Translation		(12	)
Net Realized Gain		7,428
Change in Unrealized Appreciation (Depreciation):
Investments		16,265
Foreign Currency Translation		(22	)
Net Change in Unrealized Appreciation (Depreciation)		16,243
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		23,671
Net Increase in Net Assets Resulting from Operations	$	26,521

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Infrastructure Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,850		$	2,213
Net Realized Gain		7,428			11,309
Net Change in Unrealized Appreciation (Depreciation)		16,243			(20,251	)
Net Increase (Decrease) in Net Assets Resulting from Operations		26,521			(6,729	)
Dividends and Distributions to Shareholders:
Class I		—			(3,110	)
Class A		—			(9,011	)
Class L		—			(116	)
Class C		—			(101	)
Class IS		—			(1	)
Class IR		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(12,339	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		18,788			13,904
Distributions Reinvested		—			3,105
Redeemed		(20,888	)		(33,838	)
Class A:
Subscribed		9,258			4,503
Distributions Reinvested		—			8,847
Redeemed		(11,757	)		(26,201	)
Class L:
Exchanged		70			39
Distributions Reinvested		—			113
Redeemed		(200	)		(491	)
Class C:
Subscribed		892			417
Distributions Reinvested		—			100
Redeemed		(188	)		(438	)
Class IS:
Distributions Reinvested		—			1
Class IR:
Distributions Reinvested		—			—	@
Net Decrease in Net Assets Resulting from Capital Share Transactions		(4,025	)		(29,939	)
Total Increase (Decrease) in Net Assets		22,496			(49,007	)
Net Assets:
Beginning of Period		287,355			336,362
End of Period	$	309,851		$	287,355

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Infrastructure Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,219			963
Shares Issued on Distributions Reinvested		—			215
Shares Redeemed		(1,427	)		(2,279	)
Net Decrease in Class I Shares Outstanding		(208	)		(1,101	)
Class A:
Shares Subscribed		620			317
Shares Issued on Distributions Reinvested		—			614
Shares Redeemed		(784	)		(1,850	)
Net Decrease in Class A Shares Outstanding		(164	)		(919	)
Class L:
Shares Exchanged		4			2
Shares Issued on Distributions Reinvested		—			8
Shares Redeemed		(13	)		(34	)
Net Decrease in Class L Shares Outstanding		(9	)		(24	)
Class C:
Shares Subscribed		61			30
Shares Issued on Distributions Reinvested		—			7
Shares Redeemed		(13	)		(33	)
Net Increase in Class C Shares Outstanding		48			4
Class IS:
Shares Issued on Distributions Reinvested		—			—	@@
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Infrastructure Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	14.47		$	15.37		$	12.39		$	14.64		$	14.02		$	12.59
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.16			0.13			0.35			0.31			0.44			0.40
Net Realized and Unrealized Gain (Loss)		1.26			(0.36	)		3.11			(1.45	)		1.33			1.55
Total from Investment Operations		1.42			(0.23	)		3.46			(1.14	)		1.77			1.95
Distributions from and/or in Excess of:
Net Investment Income		—			(0.40	)		(0.36	)		(0.37	)		(0.42	)		(0.37	)
Net Realized Gain		—			(0.27	)		(0.12	)		(0.74	)		(0.73	)		(0.15	)
Total Distributions		—			(0.67	)		(0.48	)		(1.11	)		(1.15	)		(0.52	)
Net Asset Value, End of Period	$	15.89		$	14.47		$	15.37		$	12.39		$	14.64		$	14.02
Total Return⁽³⁾		9.74	%⁽⁷⁾		(1.45	)%		27.94	%		(8.02	)%		12.70	%		15.55	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	71,632		$	68,255		$	89,371		$	65,311		$	95,219		$	58,794
Ratio of Expenses Before Expense Limitation		1.18	%⁽⁸⁾		1.18	%		1.16	%		1.16	%		1.08	%		1.04	%
Ratio of Expenses After Expense Limitation		0.97	%⁽⁴⁾⁽⁸⁾		0.97	%⁽⁴⁾		0.97	%⁽⁴⁾		0.97	%⁽⁴⁾		0.91	%⁽⁴⁾⁽⁵⁾		0.85	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.97	%⁽⁴⁾		0.97	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		2.17	%⁽⁴⁾⁽⁸⁾		0.94	%⁽⁴⁾		2.40	%⁽⁴⁾		2.21	%⁽⁴⁾		2.93	%⁽⁴⁾		2.85	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁷⁾		62	%		30	%		43	%		45	%		48	%

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

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

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

(5) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.97% for Class I shares. Prior to July 1, 2017, the maximum ratio was 0.87% 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.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Infrastructure Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	14.44		$	15.33		$	12.36		$	14.60		$	13.99		$	12.56
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.15			0.11			0.31			0.28			0.39			0.36
Net Realized and Unrealized Gain (Loss)		1.24			(0.37	)		3.10			(1.45	)		1.33			1.55
Total from Investment Operations		1.39			(0.26	)		3.41			(1.17	)		1.72			1.91
Distributions from and/or in Excess of:
Net Investment Income		—			(0.36	)		(0.32	)		(0.33	)		(0.38	)		(0.33	)
Net Realized Gain		—			(0.27	)		(0.12	)		(0.74	)		(0.73	)		(0.15	)
Total Distributions		—			(0.63	)		(0.44	)		(1.07	)		(1.11	)		(0.48	)
Net Asset Value, End of Period	$	15.83		$	14.44		$	15.33		$	12.36		$	14.60		$	13.99
Total Return⁽³⁾		9.63	%⁽⁷⁾		(1.69	)%		27.62	%		(8.22	)%		12.37	%		15.29	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	231,089		$	213,128		$	240,350		$	212,919		$	278,780		$	275,481
Ratio of Expenses Before Expense Limitation		1.37	%⁽⁸⁾		1.38	%		1.37	%		1.37	%		1.38	%		1.37	%
Ratio of Expenses After Expense Limitation		1.21	%⁽⁴⁾⁽⁸⁾		1.21	%⁽⁴⁾		1.21	%⁽⁴⁾		1.21	%⁽⁴⁾		1.15	%⁽⁴⁾⁽⁵⁾		1.10	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.21	%⁽⁴⁾		1.21	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		1.95	%⁽⁴⁾⁽⁸⁾		0.74	%⁽⁴⁾		2.16	%⁽⁴⁾		2.00	%⁽⁴⁾		2.63	%⁽⁴⁾		2.60	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁷⁾		62	%		30	%		43	%		45	%		48	%

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

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

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

(5) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.21% for Class A shares. Prior to July 1, 2017, the maximum ratio was 1.11% for Class A shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Infrastructure Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	14.40		$	15.29		$	12.33		$	14.55		$	13.94		$	12.52
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.10			0.02			0.23			0.20			0.31			0.28
Net Realized and Unrealized Gain (Loss)		1.24			(0.36	)		3.08			(1.44	)		1.33			1.54
Total from Investment Operations		1.34			(0.34	)		3.31			(1.24	)		1.64			1.82
Distributions from and/or in Excess of:
Net Investment Income		—			(0.28	)		(0.23	)		(0.24	)		(0.30	)		(0.25	)
Net Realized Gain		—			(0.27	)		(0.12	)		(0.74	)		(0.73	)		(0.15	)
Total Distributions		—			(0.55	)		(0.35	)		(0.98	)		(1.03	)		(0.40	)
Net Asset Value, End of Period	$	15.74		$	14.40		$	15.29		$	12.33		$	14.55		$	13.94
Total Return⁽³⁾		9.31	%⁽⁷⁾		(2.27	)%		26.87	%		(8.73	)%		11.80	%		14.57	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,323		$	3,163		$	3,718		$	3,805		$	5,634		$	5,534
Ratio of Expenses Before Expense Limitation		1.91	%⁽⁸⁾		1.94	%		1.93	%		1.87	%		1.95	%		1.95	%
Ratio of Expenses After Expense Limitation		1.78	%⁽⁴⁾⁽⁸⁾		1.78	%⁽⁴⁾		1.78	%⁽⁴⁾		1.78	%⁽⁴⁾		1.72	%⁽⁴⁾⁽⁵⁾		1.67	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.78	%⁽⁴⁾		1.78	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		1.35	%⁽⁴⁾⁽⁸⁾		0.17	%⁽⁴⁾		1.58	%⁽⁴⁾		1.41	%⁽⁴⁾		2.06	%⁽⁴⁾		2.03	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁷⁾		62	%		30	%		43	%		45	%		48	%

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

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

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

(5) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.78% for Class L shares. Prior to July 1, 2017, the maximum ratio was 1.68% for Class L shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Infrastructure Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	14.18		$	15.08		$	12.17		$	14.36		$	13.81		$	12.47
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.09			(0.02	)		0.18			0.16			0.29			0.26
Net Realized and Unrealized Gain (Loss)		1.21			(0.36	)		3.05			(1.42	)		1.28			1.52
Total from Investment Operations		1.30			(0.38	)		3.23			(1.26	)		1.57			1.78
Distributions from and/or in Excess of:
Net Investment Income		—			(0.25	)		(0.20	)		(0.19	)		(0.29	)		(0.29	)
Net Realized Gain		—			(0.27	)		(0.12	)		(0.74	)		(0.73	)		(0.15	)
Total Distributions		—			(0.52	)		(0.32	)		(0.93	)		(1.02	)		(0.44	)
Net Asset Value, End of Period	$	15.48		$	14.18		$	15.08		$	12.17		$	14.36		$	13.81
Total Return⁽³⁾		9.17	%⁽⁷⁾		(2.53	)%		26.55	%		(9.02	)%		11.42	%		14.35	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,783		$	2,787		$	2,901		$	2,580		$	3,601		$	784
Ratio of Expenses Before Expense Limitation		2.16	%⁽⁸⁾		2.22	%		2.20	%		2.20	%		2.23	%		2.69	%
Ratio of Expenses After Expense Limitation		2.07	%⁽⁴⁾⁽⁸⁾		2.07	%⁽⁴⁾		2.07	%⁽⁴⁾		2.07	%⁽⁴⁾		2.02	%⁽⁴⁾⁽⁵⁾		1.96	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			2.07	%⁽⁴⁾		2.07	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		1.17	%⁽⁴⁾⁽⁸⁾		(0.12	)%⁽⁴⁾		1.30	%⁽⁴⁾		1.14	%⁽⁴⁾		1.96	%⁽⁴⁾		1.90	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁷⁾		62	%		30	%		43	%		45	%		48	%

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

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

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

(5) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.07% for Class C shares. Prior to July 1, 2017, the maximum ratio was 1.97% for Class C shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Infrastructure Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	14.40		$	15.29		$	12.38		$	14.63		$	14.02		$	12.58
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.08			0.15			0.38			0.32			0.45			0.43
Net Realized and Unrealized Gain (Loss)		1.34			(0.37	)		3.01			(1.46	)		1.32			1.53
Total from Investment Operations		1.42			(0.22	)		3.39			(1.14	)		1.77			1.96
Distributions from and/or in Excess of:
Net Investment Income		—			(0.40	)		(0.36	)	��	(0.37	)		(0.43	)		(0.37	)
Net Realized Gain		—			(0.27	)		(0.12	)		(0.74	)		(0.73	)		(0.15	)
Total Distributions		—			(0.67	)		(0.48	)		(1.11	)		(1.16	)		(0.52	)
Net Asset Value, End of Period	$	15.82		$	14.40		$	15.29		$	12.38		$	14.63		$	14.02
Total Return⁽³⁾		9.78	%⁽⁷⁾		(1.37	)%		27.31	%		(7.92	)%		12.65	%		15.66	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	12		$	11		$	11		$	24,462		$	9,516		$	5,921
Ratio of Expenses Before Expense Limitation		18.22	%⁽⁸⁾		20.65	%		1.05	%		1.05	%		1.06	%		1.08	%
Ratio of Expenses After Expense Limitation		0.94	%⁽⁴⁾⁽⁸⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.89	%⁽⁴⁾⁽⁵⁾		0.83	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		2.21	%⁽⁴⁾⁽⁸⁾		1.03	%⁽⁴⁾		2.71	%⁽⁴⁾		2.26	%⁽⁴⁾		2.95	%⁽⁴⁾		3.02	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁷⁾		62	%		30	%		43	%		45	%		48	%

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

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

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

(5) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class IS shares. Prior to July 1, 2017, the maximum ratio was 0.84% for Class IS shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Infrastructure Portfolio

	Class IR
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	14.47		$	15.36		$	12.38		$	14.10
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.17			0.15			0.35			0.20
Net Realized and Unrealized Gain (Loss)		1.24			(0.37	)		3.11			(0.81	)
Total from Investment Operations		1.41			(0.22	)		3.46			(0.61	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.40	)		(0.36	)		(0.37	)
Net Realized Gain		—			(0.27	)		(0.12	)		(0.74	)
Total Distributions		—			(0.67	)		(0.48	)		(1.11	)
Net Asset Value, End of Period	$	15.88		$	14.47		$	15.36		$	12.38
Total Return⁽³⁾		9.74	%⁽⁶⁾		(1.43	)%		27.99	%		(4.54	)%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	12		$	11		$	11		$	9
Ratio of Expenses Before Expense Limitation		15.99	%⁽⁷⁾		19.68	%		19.62	%		18.47	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		0.94	%⁽⁴⁾⁽⁷⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾⁽⁷⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		N/A
Ratio of Net Investment Income		2.21	%⁽⁴⁾⁽⁷⁾		1.03	%⁽⁴⁾		2.65	%⁽⁴⁾		2.67	%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾⁽⁷⁾
Portfolio Turnover Rate		30	%⁽⁶⁾		62	%		30	%		43	%

(1) Commencement of Offering.

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

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

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Infrastructure Portfolio. The Fund seeks to provide both capital appreciation and income.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Airports	$	17,385	$	—	$	—	$	17,385
Communications		75,655		—		—		75,655
Diversified		18,054		—		—		18,054
Electricity Transmission & Distribution		40,641		—		—		40,641
Oil & Gas Storage & Transportation		86,072		—		—		86,072
Ports		1,972		—		—		1,972
Railroads		9,911		—		—		9,911
Renewables		6,044		—		—		6,044
Toll Roads		26,193		—		—		26,193
Utilities		7,847		—		—		7,847
Water		12,404		—		—		12,404
Total Common Stocks		302,178		—		—		302,178

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Short-Term Investments
Investment Company	$	11,669	$	—	$	—	$	11,669
Repurchase Agreements		—		236		—		236
Total Short-Term Investments		11,669		236		—		11,905
Total Assets	$	313,847	$	236	$	—	$	314,083

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

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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

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, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	7,678	(a)	$	—	$	(7,678	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $1,599,000, of which approximately $1,554,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $45,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $6,421,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

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	$	1,599	$	—	$	—	$	—	$	1,599
Total Borrowings	$	1,599	$	—	$	—	$	—	$	1,599
Gross amount of recognized liabilities for securities lending transactions									$	1,599

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.85% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.97% for Class I shares, 1.21% for Class A shares, 1.78% for Class L shares, 2.07% for Class C shares, 0.94% for Class IS shares and 0.94% for Class IR shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $134,000 of advisory fees were waived and approximately $108,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

E. Dividend Disbursing and Transfer Agent: The Company's dividend disbursing and transfer agent is DST

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $85,752,000 and $86,912,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

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, 2021, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	3,349			$	55,381			$	47,061			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	11,669

@ Amount is less than $500.

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, 2020 remains subject to examination by taxing authorities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	7,160	$	5,179	$	7,000	$	2,503

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	271			$	6,848

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 five-year period but below its peer group average for the one- and three-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 was higher than but close to its peer group average and 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Liquidity Risk Management Program (unaudited)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

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

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

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

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

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

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

Definitions

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

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent 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

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

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

IFISGISAN
3692768 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Insight Portfolio

(formerly Global Advantage Portfolio)

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					7
Consolidated Statement of Operations					9
Consolidated Statements of Changes in Net Assets					10
Consolidated Financial Highlights					12
Notes to Consolidated Financial Statements					17
Investment Advisory Agreement Approval					29
Liquidity Risk Management Program					31
U.S. Customer Privacy Notice					32
Director and Officer Information					35

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Global Insight Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Global Insight Portfolio Class I	$	1,000.00	$	1,025.40	$	1,019.84	$	5.02	*	$	5.01	*		1.00	%
Global Insight Portfolio Class A		1,000.00		1,024.30		1,018.40		6.47	*		6.46	*		1.29
Global Insight Portfolio Class L		1,000.00		1,021.10		1,015.47		9.42	*		9.39	*		1.88
Global Insight Portfolio Class C		1,000.00		1,020.50		1,014.73		10.17	*		10.14	*		2.03
Global Insight Portfolio Class IS^		1,000.00		1,038.90		1,001.78		0.42	**		0.42	**		0.95

** 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 16/365 (to reflect the actual days accrued in the period).

*** Annualized.

^ The Fund commenced offering of Class IS Shares on June 14, 2021.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Insight Portfolio

	Shares		Value (000)
Common Stocks (93.5%)
Australia (2.6%)
Afterpay Ltd. (a)		51,037	$	4,523
Redbubble Ltd. (a)		1,157,048		3,133
Xero Ltd. (a)		41,045		4,220
				11,876
Canada (6.3%)
Shopify, Inc., Class A (a)		19,361		28,286
Germany (0.0%) (b)
Zalando SE (a)		933		113
Japan (1.3%)
BASE, Inc. (a)		235,400		3,579
Demae-Can Co., Ltd. (a)		170,500		2,376
				5,955
Netherlands (4.7%)
Adyen N.V. (a)		8,573		20,946
Singapore (6.1%)
Sea Ltd. ADR (a)		100,537		27,607
Sweden (4.8%)
Evolution AB		91,171		14,407
Kinnevik AB, Class B (a)		177,880		7,121
				21,528
United Kingdom (1.5%)
Deliveroo PLC (a)		1,641,377		6,548
United States (66.2%)
Agilon health, Inc. (a)		151,538		6,148
Altimeter Growth Corp., Class A SPAC (a)(c)		1,259,389		14,735
Cloudflare, Inc., Class A (a)		128,915		13,644
Coupa Software, Inc. (a)		19,552		5,125
Coupang, Inc. (a)		537,715		22,487
Farfetch Ltd., Class A (a)		337,814		17,012
Intuitive Surgical, Inc. (a)		4,723		4,343
MercadoLibre, Inc. (a)		13,393		20,864
Moderna, Inc. (a)		23,032		5,412
Okta, Inc. (a)		29,219		7,149
Pinterest, Inc., Class A (a)		94,230		7,439
ROBLOX Corp., Class A (a)		75,389		6,784
Royal Gold, Inc.		9,993		1,140
Royalty Pharma PLC, Class A		456,588		18,716
Snap, Inc., Class A (a)		242,088		16,496
Snowflake, Inc., Class A (a)		47,302		11,438
Spotify Technology SA (a)		61,754		17,019
Square, Inc., Class A (a)		68,199		16,627
Trade Desk, Inc. (The), Class A (a)		71,770		5,552
Twilio, Inc., Class A (a)		31,497		12,415
Twitter, Inc. (a)		251,318		17,293
Unity Software, Inc. (a)		41,605		4,569
Veeva Systems, Inc., Class A (a)		49,862		15,505
Wayfair, Inc., Class A (a)		20,175		6,369
Zillow Group, Inc., Class C (a)		52,752		6,447
Zoom Video Communications, Inc., Class A (a)		40,863		15,815
				296,543
Total Common Stocks (Cost $334,910)				419,402

	Shares		Value (000)
Preferred Stock (0.0%) (b)
United States (0.0%) (b)
Lookout, Inc. Series F (a)(d)(h) (acquisition cost — $73; acquired 6/17/14) (Cost $73)		6,374		29
Investment Company (0.3%)
United States (0.3%)
Grayscale Bitcoin Trust (a) (Cost $2,718)		54,029		1,611
Short-Term Investments (9.8%)
Securities held as Collateral on Loaned Securities (3.3%)
Investment Company (2.8%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		12,458,000		12,458
	Face Amount (000)
Repurchase Agreements (0.5%)
HSBC Securities USA, Inc. (0.05%, dated 6/30/21, due 7/1/21; proceeds $587; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $598)	$	587		587
Merrill Lynch & Co., Inc. (0.05%, dated 6/30/21, due 7/1/21; proceeds $1,642; fully collateralized by U.S. Government obligations; 0.00% — 3.63% due 12/30/21 — 8/15/43; valued at $1,675)		1,642		1,642
				2,229
Total Securities held as Collateral on Loaned Securities (Cost $14,687)				14,687
	Shares
Investment Company (6.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $29,036)		29,035,672		29,036
Total Short-Term Investments (Cost $43,723)				43,723
Total Investments Excluding Purchased Options (103.6%) (Cost $381,424)				464,765
Total Purchased Options Outstanding (0.0%) (b) (Cost $1,751)				108
Total Investments (103.6%) (Cost $383,175) Including $14,735 of Securities Loaned (e)(j)				464,873
Liabilities in Excess of Other Assets (–3.6%)				(16,318	)
Net Assets (100.0%)			$	448,555

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Global Insight Portfolio

The Fund had the following Derivative Contracts — PIPE open at June 30, 2021:

Counterparty	Referenced Obligation	Notional Amount		Settlement Date	Unrealized Appreciation (Depreciation) (000)			% of Net Assets
Ajax I	Cazoo Holdings Limited. (a)(d)(f)(h)(i)	$	7,698,960	12/31/21	$	(951	)		(0.21	)%
Altimeter Growth Corp.	Grab Holdings Inc. (a)(d)(g)(h)(i)		3,588,450	12/31/21		190			0.04
					$	(761	)		(0.17	)%

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(d) At June 30, 2021, the Fund held a fair valued security and derivative contracts valued at approximately $(732,000), representing (0.2)% of net assets. These holdings have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(e) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $104,965,000 and the aggregate gross unrealized depreciation is approximately $24,028,000, resulting in net unrealized appreciation of approximately $80,937,000.

(f) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 769,896 shares at $10.00 per shares on the settlement date pursuant to the closing of the business combination between Cazoo Holdings Limited., and Ajax I, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Ajax I and Cazoo Holdings Limited., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Ajax I and Cazoo Holdings Limited. The investment is restricted from resale until the settlement date.

(g) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 358,845 shares at $10.00 per shares on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

(h) 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 security and derivative contracts (excluding 144A holdings) at June 30, 2021 amounts to approximately $(732,000) and represents (0.2)% of net assets.

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

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Global Insight Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
BNP Paribas	USD/CNH	CNH	7.99	Sep-21		47,104,572		47,105	$	—	@	$	285	$	(285	)
BNP Paribas	USD/CNH	CNH	7.45	Jan-22		83,130,387		83,130		34			444		(410	)
BNP Paribas	USD/CNH	CNH	7.64	Nov-21		64,087,776		64,088		6			348		(342	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		85,529,485		85,529		68			425		(357	)
JP Morgan Chase Bank NA	USD/CNH	CNH	8.10	Jul-21		53,186,867		53,187		—	@		249		(249	)
									$	108		$	1,751	$	(1,643	)

@ Amount is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Information Technology Services		23.2	%
Other**		19.7
Internet & Direct Marketing Retail		17.5
Entertainment		11.4
Software		10.8
Interactive Media & Services		10.5
Short-Term Investments		6.9
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

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

*** Does not include open PIPE contracts with net unrealized depreciation of approximately $761,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Insight Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $341,681)	$	423,379
Investment in Security of Affiliated Issuer, at Value (Cost $41,494)		41,494
Total Investments in Securities, at Value (Cost $383,175)		464,873
Foreign Currency, at Value (Cost $6)		6
Cash from Securities Lending		426
Receivable for Fund Shares Sold		747
Receivable from Securities Lending Income		124
Tax Reclaim Receivable		47
Dividends Receivable		1
Receivable from Affiliate		—	@
Unrealized Appreciation on Derivative Contract — PIPE		190
Other Assets		131
Total Assets		466,545
Liabilities:
Collateral on Securities Loaned, at Value		15,113
Payable for Advisory Fees		791
Due to Broker		659
Payable for Fund Shares Redeemed		331
Payable for Shareholder Services Fees — Class A		22
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		19
Payable for Professional Fees		37
Payable for Administration Fees		28
Payable for Transfer Agency Fees — Class I		11
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		2
Payable for Sub Transfer Agency Fees — Class I		7
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Custodian Fees		7
Payable for Organization Costs for Subsidiary		1
Unrealized Depreciation on Derivative Contract — PIPE		951
Other Liabilities		9
Total Liabilities		17,990
Net Assets	$	448,555
Net Assets Consist of:
Paid-in-Capital	$	267,639
Total Distributable Earnings		180,916
Net Assets	$	448,555

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Insight Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	310,396
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		8,946,672
Net Asset Value, Offering and Redemption Price Per Share	$	34.69
CLASS A:
Net Assets	$	113,414
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,357,709
Net Asset Value, Redemption Price Per Share	$	33.78
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.87
Maximum Offering Price Per Share	$	35.65
CLASS L:
Net Assets	$	934
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		29,185
Net Asset Value, Offering and Redemption Price Per Share	$	32.00
CLASS C:
Net Assets	$	23,801
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		759,042
Net Asset Value, Offering and Redemption Price Per Share	$	31.36
CLASS IS:
Net Assets	$	10
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		299
Net Asset Value, Offering and Redemption Price Per Share	$	34.69
⁽¹⁾ Including: Securities on Loan, at Value:	$	14,735

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Insight Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $15 of Foreign Taxes Withheld)	$	2,874
Income from Securities Loaned — Net		241
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		3,116
Expenses:
Advisory Fees (Note B)		1,767
Shareholder Services Fees — Class A (Note D)		139
Distribution and Shareholder Services Fees — Class L (Note D)		3
Distribution and Shareholder Services Fees — Class C (Note D)		110
Sub Transfer Agency Fees — Class I		124
Sub Transfer Agency Fees — Class A		50
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		7
Administration Fees (Note C)		177
Professional Fees		73
Registration Fees		46
Transfer Agency Fees — Class I (Note E)		18
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class IS (Note E)		—	@
Shareholder Reporting Fees		15
Custodian Fees (Note F)		14
Directors' Fees and Expenses		4
Pricing Fees		2
Organization Costs for Subsidiary		1
Interest Expenses		2
Other Expenses		9
Total Expenses		2,566
Reimbursement of Class Specific Expenses — Class I (Note B)		(58	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(3	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(—	@)
Rebate from Morgan Stanley Affiliate (Note G)		(8	)
Waiver of Advisory Fees (Note B)		(6	)
Net Expenses		2,491
Net Investment Income		625
Realized Gain:
Investments Sold		61,746
Foreign Currency Translation		110
Net Realized Gain		61,856
Change in Unrealized Appreciation (Depreciation):
Investments		(56,850	)
Foreign Currency Translation		(14	)
Derivative Contracts — PIPE		(761	)
Net Change in Unrealized Appreciation (Depreciation)		(57,625	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		4,231
Net Increase in Net Assets Resulting from Operations	$	4,856

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Insight Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	625		$	(2,524	)
Net Realized Gain		61,856			53,478
Net Change in Unrealized Appreciation (Depreciation)		(57,625	)		116,089
Net Increase in Net Assets Resulting from Operations		4,856			167,043
Dividends and Distributions to Shareholders:
Class I		—			(10,229	)
Class A		—			(3,353	)
Class L		—			(34	)
Class C		—			(752	)
Total Dividends and Distributions to Shareholders		—			(14,368	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		129,545			178,652
Distributions Reinvested		—			10,225
Redeemed		(136,598	)		(70,645	)
Class A:
Subscribed		42,148			49,117
Distributions Reinvested		—			3,353
Redeemed		(33,342	)		(28,326	)
Class L:
Exchanged		20			6
Distributions Reinvested		—			34
Redeemed		(26	)		(112	)
Class C:
Subscribed		6,032			5,354
Distributions Reinvested		—			752
Redeemed		(3,234	)		(4,669	)
Class IS:
Subscribed		10	(a)		—
Net Increase in Net Assets Resulting from Capital Share Transactions		4,555			143,741
Total Increase in Net Assets		9,411			296,416
Net Assets:
Beginning of Period		439,144			142,728
End of Period	$	448,555		$	439,144

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Insight Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,790			6,937
Shares Issued on Distributions Reinvested		—			305
Shares Redeemed		(4,125	)		(2,837	)
Net Increase (Decrease) in Class I Shares Outstanding		(335	)		4,405
Class A:
Shares Subscribed		1,258			1,787
Shares Issued on Distributions Reinvested		—			102
Shares Redeemed		(1,040	)		(1,229	)
Net Increase in Class A Shares Outstanding		218			660
Class L:
Shares Exchanged		1			—	@@
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(1	)		(6	)
Net Decrease in Class L Shares Outstanding		(—	@@)		(5	)
Class C:
Shares Subscribed		193			212
Shares Issued on Distributions Reinvested		—			25
Shares Redeemed		(105	)		(230	)
Net Increase in Class C Shares Outstanding		88			7
Class IS:
Shares Subscribed		—	@@(a)		—

* Not consolidated.

(a) For the period June 14, 2021 to June 30, 2021.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Insight Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	33.83		$	17.96		$	13.96		$	15.43		$	12.12		$	12.36
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.07			(0.24	)		(0.02	)		(0.03	)		(0.03	)		0.00	⁽⁴⁾
Net Realized and Unrealized Gain (Loss)		0.79			17.29			4.41			(0.80	)		5.07			0.02
Total from Investment Operations		0.86			17.05			4.39			(0.83	)		5.04			0.02
Distributions from and/or in Excess of:
Net Realized Gain		—			(1.18	)		(0.39	)		(0.64	)		(1.73	)		(0.26	)
Net Asset Value, End of Period	$	34.69		$	33.83		$	17.96		$	13.96		$	15.43		$	12.12
Total Return⁽⁵⁾		2.54	%⁽⁹⁾		94.98	%		31.49	%		(5.75	)%		41.56	%		0.21	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	310,396		$	314,038		$	87,595		$	60,271		$	7,005		$	3,229
Ratio of Expenses Before Expense Limitation		1.05	%⁽¹⁰⁾		N/A			1.21	%		1.82	%		3.67	%		3.82	%
Ratio of Expenses After Expense Limitation		1.00	%^(6)(7)(10)		1.09	%⁽⁶⁾		1.09	%⁽⁶⁾		1.09	%⁽⁶⁾		1.09	%⁽⁶⁾		1.09	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.00	%^(6)(7)(10)		N/A			1.09	%⁽⁶⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.40	%^(6)(10)		(0.94	)%⁽⁶⁾		(0.11	)%⁽⁶⁾		(0.19	)%⁽⁶⁾		(0.19	)%⁽⁶⁾		0.04	%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		75	%⁽⁹⁾		85	%		95	%		130	%		103	%		90	%

(1) Not consolidated.

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

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

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

(7) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to March 31, 2021, the maximum ratio was 1.10% for Class I shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Insight Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	32.98		$	17.57		$	13.71		$	15.21		$	12.01		$	12.29
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.02			(0.29	)		(0.07	)		(0.08	)		(0.08	)		(0.05	)
Net Realized and Unrealized Gain (Loss)		0.78			16.88			4.32			(0.78	)		5.01			0.03
Total from Investment Operations		0.80			16.59			4.25			(0.86	)		4.93			(0.02	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(1.18	)		(0.39	)		(0.64	)		(1.73	)		(0.26	)
Net Asset Value, End of Period	$	33.78		$	32.98		$	17.57		$	13.71		$	15.21		$	12.01
Total Return⁽⁴⁾		2.43	%⁽⁹⁾		94.46	%		31.04	%		(6.03	)%		41.02	%		(0.11	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	113,414		$	103,550		$	43,576		$	33,240		$	4,577		$	2,640
Ratio of Expenses Before Expense Limitation		1.30	%⁽¹⁰⁾		N/A			1.48	%		1.95	%		3.88	%		4.09	%
Ratio of Expenses After Expense Limitation		1.29	%^(5)(6)(10)		1.35	%⁽⁵⁾		1.41	%⁽⁵⁾		1.41	%⁽⁵⁾⁽⁷⁾		1.41	%⁽⁵⁾		1.44	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.29	%^(5)(6)(10)		N/A			1.41	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.13	%^(5)(10)		(1.20	)%⁽⁵⁾		(0.43	)%⁽⁵⁾		(0.54	)%⁽⁵⁾		(0.52	)%⁽⁵⁾		(0.38	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		75	%⁽⁹⁾		85	%		95	%		130	%		103	%		90	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

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

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

(6) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.32% for Class A shares. Prior to March 31, 2021, the maximum ratio was 1.42% for Class A shares.

(7) Effective November 19, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.42% for Class A shares. Prior to November 19, 2018, the maximum ratio was 1.45% for Class A shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Insight Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	31.34		$	16.82		$	13.21		$	14.75		$	11.74		$	12.09
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.07	)		(0.40	)		(0.16	)		(0.16	)		(0.15	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		0.73			16.10			4.16			(0.74	)		4.89			0.01
Total from Investment Operations		0.66			15.70			4.00			(0.90	)		4.74			(0.09	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(1.18	)		(0.39	)		(0.64	)		(1.73	)		(0.26	)
Net Asset Value, End of Period	$	32.00		$	31.34		$	16.82		$	13.21		$	14.75		$	11.74
Total Return⁽⁴⁾		2.11	%⁽⁸⁾		93.38	%		30.32	%		(6.50	)%		40.34	%		(0.70	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	934		$	923		$	573		$	462		$	327		$	217
Ratio of Expenses Before Expense Limitation		1.95	%⁽⁹⁾		2.09	%		2.16	%		3.29	%		5.07	%		5.12	%
Ratio of Expenses After Expense Limitation		1.88	%^(5)(6)(9)		1.94	%⁽⁵⁾		1.94	%⁽⁵⁾		1.94	%⁽⁵⁾		1.94	%⁽⁵⁾		1.94	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.88	%^(5)(6)(9)		N/A			1.94	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.48	)%⁽⁵⁾⁽⁹⁾		(1.79	)%⁽⁵⁾		(0.96	)%⁽⁵⁾		(1.03	)%⁽⁵⁾		(1.05	)%⁽⁵⁾		(0.86	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		75	%⁽⁸⁾		85	%		95	%		130	%		103	%		90	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

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

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

(6) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.85% for Class L shares. Prior to March 31, 2021, the maximum ratio was 1.95% for Class L shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Insight Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	30.73		$	16.54		$	13.03		$	14.60		$	11.66		$	12.04
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.08	)		(0.43	)		(0.19	)		(0.18	)		(0.19	)		(0.13	)
Net Realized and Unrealized Gain (Loss)		0.71			15.80			4.09			(0.75	)		4.86			0.01
Total from Investment Operations		0.63			15.37			3.90			(0.93	)		4.67			(0.12	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(1.18	)		(0.39	)		(0.64	)		(1.73	)		(0.26	)
Net Asset Value, End of Period	$	31.36		$	30.73		$	16.54		$	13.03		$	14.60		$	11.66
Total Return⁽⁴⁾		2.05	%⁽⁸⁾		92.97	%		29.97	%		(6.77	)%		40.02	%		(0.95	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	23,801		$	20,633		$	10,984		$	9,272		$	549		$	180
Ratio of Expenses Before Expense Limitation		2.04	%⁽⁹⁾		N/A			2.24	%		2.70	%		5.22	%		6.12	%
Ratio of Expenses After Expense Limitation		2.03	%^(5)(6)(9)		2.11	%⁽⁵⁾		2.19	%⁽⁵⁾		2.19	%⁽⁵⁾		2.19	%⁽⁵⁾		2.19	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.03	%^(5)(6)(9)		N/A			2.19	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.54	)%⁽⁵⁾⁽⁹⁾		(1.96	)%⁽⁵⁾		(1.21	)%⁽⁵⁾		(1.29	)%⁽⁵⁾		(1.30	)%⁽⁵⁾		(1.12	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		75	%⁽⁸⁾		85	%		95	%		130	%		103	%		90	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

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

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

(6) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to March 31, 2021, the maximum ratio was 2.20% for Class C shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Insight Portfolio

	Class IS
Selected Per Share Data and Ratios	Period from June 14, 2021⁽¹⁾ to June 30, 2021 (unaudited)
Net Asset Value, Beginning of Period	$	33.39
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.01	)
Net Realized and Unrealized Gain		1.31
Total from Investment Operations		1.30
Net Asset Value, End of Period	$	34.69
Total Return⁽³⁾		3.89	%⁽⁴⁾
Ratios to Average Net Assets and Supplemental Data:				��
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses Before Expense Limitation		14.51	%⁽⁵⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾
Ratio of Net Investment Loss		(0.58	)%⁽⁵⁾
Portfolio Turnover Rate		75	%⁽⁴⁾

(1) Commencement of Offering.

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

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

(4) Not annualized.

(5) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Global Insight Portfolio (name changed on March 31, 2021, formerly Global Advantage Portfolio). The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class IS. On April 30, 2015, the Fund suspended offering Class L shares. Existing Class L shareholders may invest through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors. On June 14, 2021, the Fund commenced offering Class IS shares.

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

The Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Advantage Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $1,986,000 or approximately 0.44% of the total net assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin within the limitations of Subchapter M of the Code and recent Internal Revenue Service ("IRS") revenue rulings, which require that a mutual fund receive no more than ten percent of its gross income from such investments in order to receive favorable tax treatment as a regulated investment company ("RIC"). Tax treatment of the income received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Biotechnology	$	5,412	$	—	$	—	$	5,412
Diversified Financial Services		7,121		—		—		7,121
Entertainment		51,410		—		—		51,410
Health Care Equipment & Supplies		4,343		—		—		4,343
Health Care Providers & Services		6,148		—		—		6,148
Health Care Technology		15,505		—		—		15,505
Hotels, Restaurants & Leisure		14,407		—		—		14,407
Information Technology Services		104,963		—		—		104,963

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)
Interactive Media & Services	$	47,675	$	—	$	—		$	47,675
Internet & Direct Marketing Retail		78,902		—		—			78,902
Metals & Mining		1,140		—		—			1,140
Other		14,735		—		—			14,735
Pharmaceuticals		18,716		—		—			18,716
Software		48,925		—		—			48,925
Total Common Stocks	$	419,402		—		—		$	419,402
Preferred Stock
Software		—		—		29			29
Call Options Purchased		—		108		—			108
Investment Company		1,611		—		—			1,611
Short-Term Investments
Investment Company		41,494		—		—			41,494
Repurchase Agreements		—		2,229		—			2,229
Total Short-Term Investments		41,494		2,229		—			43,723
Derivative Contract — PIPE		—		—		190			190
Total Assets		462,507		2,337		219			465,063
Liabilities:
Derivative Contract — PIPE		—		—		(951	)		(951	)
Total	$	462,507	$	2,337	$	(732	)	$	464,112

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

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

	Preferred Stock (000)		Derivative Contracts — PIPE (000)
Beginning Balance	$	20	$	—
Purchases		—		—
Sales		—		—
PIPE transactions		—		(761	)
Amortization of discount		—		—
Transfers in		—		—
Transfers out		—		—
Corporate actions		—		—
Change in unrealized appreciation (depreciation)		9		—
Realized gains (losses)		—		—
Ending Balance	$	29	$	(761	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	9	$	(761	)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2021. 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, 2021.

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount or Range/
Weighted Average*

Impact to
Valuation from an
Increase in Input**

Preferred Stock

Discounted Cash Flow

Weighted Average
Cost of Capital

12.0%

Decrease

Perpetual Growth Rate

3.5%

Increase

Market Comparable
Companies

Enterprise
Value/Revenue

10.0x

Increase

Discount for Lack
of Marketability

8.0%

Decrease

PIPE

(761

)

Market Implied

Discount for Lack of
Marketability
and Transaction Risk

10.0% – 12.0%/11.3%

Decrease

* Amount is indicative of the weighted average.

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-tomarket on a daily basis to determine that the value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and, when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral proceeds may be subject to cost and delays. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

4. Foreign Currency Translation and Foreign Investments: The books and records of the Fund are

maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

treated as ordinary income for U.S. federal income tax purposes.

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund 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.

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

108

(a)

PIPE

Unrealized Appreciation on
Derivative Contract — PIPE

Equity Risk

190

Total

298

Liability Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contract — PIPE

Equity Risk

(951

)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(313	)(b)

(b) Amounts are included in Investments Sold in the Consolidated Statement of Operations.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(702	)(c)
Equity Risk	Derivative Contracts — PIPE		(761	)
	Total	$	(1,463	)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets (000)			Liabilities (000)
Purchased Options	$	108	(a)(d)	$	—
Derivative Contracts — PIPE		190	(e)		(951	)(e)
Total	$	298		$	(951	)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(d) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities

The following table present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities(a) (000)			Financial Instrument (000)		Collateral Received(f) (000)			Net Amount (not less than $0) (000)
BNP Paribas	$	40		$	—	$	(40	)	$	0
Goldman Sachs International		68			—		(68	)		0
JP Morgan Chase Bank NA		—	@		—		(—	@)		0
Total	$	108		$	—	$	(108	)	$	0

@ Value is less than $500.

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(f) 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, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		323,878,000
Derivative Contracts PIPE:
Average monthly notional amount	$	10,390,000

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund's Consolidated Statement of Operations. Risks in securities lending transactions are that a borrower may not provide

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	14,735	(g)	$	—	$	(14,735	)(h)(i)	$	0

(g) Represents market value of loaned securities at period end.

(h) The Fund received cash collateral of approximately $15,113,000, of which approximately $14,687,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $426,000, which is not reflected in the Consolidated Portfolio of Investments.

(i) 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.

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	$	15,113	$	—	$	—	$	—	$	15,113
Total Borrowings	$	15,113	$	—	$	—	$	—	$	15,113
Gross amount of recognized liabilities for securities lending transactions									$	15,113

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.79% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.10% for Class I shares, 1.42% for Class A shares, 1.95% for Class L shares, 2.20% for Class C shares and 0.95% for Class IS shares. Effective March 31, 2021, the Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses will not exceed 1.00% for Class I shares, 1.32% for Class A shares, 1.85% for Class L shares and 2.10% for Class C shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $6,000 of advisory fees were waived and approximately $61,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

C. Administration Fees: The Adviser also serves as Administrator to the Company and provides administrative services

pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

number of classes, accounts and transactions relating to the Funds of the Company.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $352,904,000 and $312,554,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, 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, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	53,463			$	236,651			$	248,620			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	41,494

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, 2021, the Fund did not engage in any cross-trade transactions.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

tax purposes. The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	14,368	$	—	$	3,100

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	11,251			$	30,141

K. Market Risk and Risks Relating to Certain Financial Instruments:

Bitcoin: The Fund may have exposure to bitcoin indirectly through investments in GBTC a privately offered investment

vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The Fund may acquire an interest in a SPAC in an IPO or a secondary market transaction.

equal (on a daily mark to market basis) to the amount of its commitment to purchase the when-issued securities. PIPE transactions typically involve the purchase of securities directly from a publicly traded company or its affiliates in a private placement transaction, including through a SPAC, typically at a discount to the market price of the company's securities. There is a risk that if the market price of the securities drops below a set threshold, the company may have to issue additional stock at a significantly reduced price, which may dilute the value of the Fund's investment. Shares in PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restricted period can last many months. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 and total expense ratio were higher than but close to its peer group averages and the actual management fee was higher 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIGASAN
3692247 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Opportunity Portfolio

Semi-Annual Report

June 30, 2021

FSVPRO-00

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					17
Investment Advisory Agreement Approval					27
Liquidity Risk Management Program					29
U.S. Customer Privacy Notice					30
Director and Officer Information					33

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Global Opportunity Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Global Opportunity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Opportunity Portfolio Class I	$	1,000.00	$	1,065.00	$	1,020.33	$	4.61	$	4.51		0.90	%
Global Opportunity Portfolio Class A		1,000.00		1,063.70		1,018.94		6.04		5.91		1.18
Global Opportunity Portfolio Class L		1,000.00		1,063.10		1,018.74		6.24		6.11		1.22
Global Opportunity Portfolio Class C		1,000.00		1,059.90		1,015.42		9.65		9.44		1.89
Global Opportunity Portfolio Class IS		1,000.00		1,065.50		1,020.73		4.20		4.11		0.82
Global Opportunity Portfolio Class IR		1,000.00		1,065.40		1,020.73		4.20		4.11		0.82

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Global Opportunity Portfolio

	Shares		Value (000)
Common Stocks (97.0%)
Argentina (0.3%)
Globant SA (a)		134,230	$	29,421
Canada (4.4%)
Shopify, Inc., Class A (a)		242,008		353,569
China (10.3%)
Alibaba Group Holding Ltd. ADR (a)		328,105		74,408
DIDI Global, Inc. ADR (a)		4,400,772		61,611
Foshan Haitian Flavouring & Food Co., Ltd., Class A		3,453,519		68,921
Meituan, Class B (a)(b)		7,138,400		294,572
TAL Education Group ADR (a)		5,460,345		137,764
Tencent Holdings Ltd. (b)		866,100		65,144
Trip.com Group Ltd. ADR (a)		3,432,286		121,709
				824,129
Denmark (5.1%)
DSV Panalpina A/S		1,756,646		409,662
France (3.2%)
Hermes International		175,449		255,575
India (5.7%)
HDFC Bank Ltd.		16,928,258		341,139
ICICI Bank Ltd. ADR (a)		6,772,246		115,805
				456,944
Italy (2.6%)
Moncler SpA		3,058,946		206,965
Japan (1.8%)
Keyence Corp.		282,900		142,781
Korea, Republic of (1.3%)
NAVER Corp.		290,063		107,536
United Kingdom (0.5%)
Fevertree Drinks PLC		1,133,685		40,350
United States (61.8%)
Adobe, Inc. (a)		497,292		291,234
Affirm Holdings, Inc. (a)		182,988		12,324
Agilon Health Topco, Inc. (a)(c)		3,008,300		116,555
Airbnb, Inc., Class A (a)		78,306		11,992
Alphabet, Inc., Class C (a)		126,640		317,400
Amazon.com, Inc. (a)		152,769		525,550
Coupang, Inc. (a)		801,715		33,528

	Shares		Value (000)
DoorDash, Inc., Class A (a)		494,891	$	88,254
EPAM Systems, Inc. (a)		509,186		260,174
Facebook, Inc., Class A (a)		807,486		280,771
Farfetch Ltd., Class A (a)		2,101,386		105,826
Intuitive Surgical, Inc. (a)		121,844		112,053
Martin Marietta Materials, Inc.		106,127		37,336
Mastercard, Inc., Class A		1,442,543		526,658
salesforce.com, Inc. (a)		802,460		196,017
ServiceNow, Inc. (a)		683,454		375,592
Snowflake, Inc., Class A (a)		142,683		34,501
Spotify Technology SA (a)		777,233		214,198
Square, Inc., Class A (a)		943,664		230,065
Uber Technologies, Inc. (a)		8,659,215		434,000
Visa, Inc., Class A		1,475,708		345,050
Walt Disney Co. (The) (a)		1,487,765		261,504
Zillow Group, Inc., Class A (a)		448,160		54,913
Zoom Video Communications, Inc., Class A (a)		231,672		89,664
				4,955,159
Total Common Stocks (Cost $3,952,611)				7,782,091
Investment Company (0.3%)
United States (0.3%)
Grayscale Bitcoin Trust (a) (Cost $46,269)		919,805		27,419
Preferred Stock (0.0%) (d)
United States (0.0%) (d)
Magic Leap Series C (a)(e)(f) (acquisition cost — $3,175; acquired 12/22/15) (Cost $3,175)		137,829		—
Short-Term Investment (3.0%)
Investment Company (3.0%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $236,767)		236,766,679		236,767
Total Investments (100.3%) (Cost $4,238,822) (g)(h)				8,046,277
Liabilities in Excess of Other Assets (–0.3%)				(24,858	)
Net Assets (100.0%)			$	8,021,419

The Fund had the following Derivative Contract — PIPE open at June 30, 2021:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Appreciation (000)				% of Net Assets
Altimeter Growth Corp.				Grab Holdings Inc. (a)(e)(f)(i)(j)				$	60,291,290			12/31/21				$	3,195				0.04	%

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) Security has been deemed by the investment manager to be illiquid and is subject to restrictions on resale. At June 30, 2021, this security amounted to approximately $116,555,000, which represents 1.5% of net assets of the Fund.

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Opportunity Portfolio

(d) Amount is less than 0.05%.

(e) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted security and derivative contract (excluding 144A holdings) at June 30, 2021 amounts to approximately $3,195,000 and represents less than 0.05% of net assets.

(f) At June 30, 2021, the Fund held a fair valued security and derivative contract valued at approximately $3,195,000 representing less than 0.05% of net assets. These holdings 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.

(g) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $3,859,667,000 and the aggregate gross unrealized depreciation is approximately $49,017,000, resulting in net unrealized appreciation of approximately $3,810,650,000.

(h) Securities are available for collateral in connection with securities purchased on a forward commitment basis.

(i) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 6,029,129 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

(j) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

Portfolio Composition

Classification	Percentage of Total Investments
Information Technology Services		22.3	%
Internet & Direct Marketing Retail		15.4
Software		11.8
Other*		11.6
Interactive Media & Services		10.3
Road & Rail		6.2
Entertainment		5.9
Textiles, Apparel & Luxury Goods		5.7
Banks		5.7
Air Freight & Logistics		5.1
Total Investments		100.0	%**

* Industries and/or investment types representing less than 5% of total investments.

** Does not include an open PIPE contract with total unrealized apppreciation of approximately $3,195,000.

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $4,002,055)	$	7,809,510
Investment in Security of Affiliated Issuer, at Value (Cost $236,767)		236,767
Total Investments in Securities, at Value (Cost $4,238,822)		8,046,277
Foreign Currency, at Value (Cost $3)		3
Receivable for Fund Shares Sold		60,405
Dividends Receivable		1,184
Tax Reclaim Receivable		528
Receivable from Affiliate		2
Interest Receivable		—	@
Unrealized Appreciation on Derivative Contract — PIPE		3,195
Other Assets		597
Total Assets		8,112,191
Liabilities:
Payable for Investments Purchased		61,611
Payable for Advisory Fees		13,699
Deferred Capital Gain Country Tax		10,326
Payable for Fund Shares Redeemed		3,131
Payable for Shareholder Services Fees — Class A		355
Payable for Distribution and Shareholder Services Fees — Class L		13
Payable for Distribution and Shareholder Services Fees — Class C		378
Payable for Administration Fees		512
Payable for Sub Transfer Agency Fees — Class I		234
Payable for Sub Transfer Agency Fees — Class A		78
Payable for Sub Transfer Agency Fees — Class L		3
Payable for Sub Transfer Agency Fees — Class C		23
Payable for Transfer Agency Fees — Class I		38
Payable for Transfer Agency Fees — Class A		36
Payable for Transfer Agency Fees — Class L		7
Payable for Transfer Agency Fees — Class C		7
Payable for Transfer Agency Fees — Class IS		1
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Professional Fees		47
Payable for Custodian Fees		45
Payable for Organization Costs for Subsidiary		24
Other Liabilities		204
Total Liabilities		90,772
Net Assets	$	8,021,419
Net Assets Consist of:
Paid-in-Capital	$	4,042,642
Total Distributable Earnings		3,978,777
Net Assets	$	8,021,419

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Opportunity Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	5,217,091
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		109,459,994
Net Asset Value, Offering and Redemption Price Per Share	$	47.66
CLASS A:
Net Assets	$	1,758,607
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		38,416,394
Net Asset Value, Redemption Price Per Share	$	45.78
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	2.54
Maximum Offering Price Per Share	$	48.32
CLASS L:
Net Assets	$	54,415
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,205,933
Net Asset Value, Offering and Redemption Price Per Share	$	45.12
CLASS C:
Net Assets	$	467,696
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		10,789,868
Net Asset Value, Offering and Redemption Price Per Share	$	43.35
CLASS IS:
Net Assets		$358,997
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		7,504,483
Net Asset Value, Offering and Redemption Price Per Share	$	47.84
CLASS IR:
Net Assets	$	164,613
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,436,571
Net Asset Value, Offering and Redemption Price Per Share	$	47.90

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $953 of Foreign Taxes Withheld)	$	7,678
Dividends from Security of Affiliated Issuer (Note G)		17
Total Investment Income		7,695
Expenses:
Advisory Fees (Note B)		26,929
Shareholder Services Fees — Class A (Note D)		2,135
Distribution and Shareholder Services Fees — Class L (Note D)		199
Distribution and Shareholder Services Fees — Class C (Note D)		2,244
Sub Transfer Agency Fees — Class I		1,993
Sub Transfer Agency Fees — Class A		901
Sub Transfer Agency Fees — Class L		12
Sub Transfer Agency Fees — Class C		163
Administration Fees (Note C)		3,014
Custodian Fees (Note F)		261
Registration Fees		204
Transfer Agency Fees — Class I (Note E)		70
Transfer Agency Fees — Class A (Note E)		85
Transfer Agency Fees — Class L (Note E)		15
Transfer Agency Fees — Class C (Note E)		8
Transfer Agency Fees — Class IS (Note E)		4
Transfer Agency Fees — Class IR (Note E)		1
Shareholder Reporting Fees		92
Professional Fees		65
Directors' Fees and Expenses		38
Organization Costs for Subsidiary		24
Pricing Fees		2
Other Expenses		62
Total Expenses		38,521
Distribution Fees — Class L Shares Waived (Note D)		(119	)
Rebate from Morgan Stanley Affiliate (Note G)		(112	)
Net Expenses		38,290
Net Investment Loss		(30,595	)
Realized Gain (Loss):
Investments Sold		168,760
Foreign Currency Translation		(45	)
Net Realized Gain		168,715
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $750)		317,759
Foreign Currency Translation		(19	)
Derivative Contract — PIPE		3,195
Net Change in Unrealized Appreciation (Depreciation)		320,935
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		489,650
Net Increase in Net Assets Resulting from Operations	$	459,055

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(30,595	)	$	(46,557	)
Net Realized Gain		168,715			235,248
Net Change in Unrealized Appreciation (Depreciation)		320,935			2,220,499
Net Increase in Net Assets Resulting from Operations		459,055			2,409,190
Dividends and Distributions to Shareholders:
Class I		—			(51,005	)
Class A		—			(20,135	)
Class L		—			(649	)
Class C		—			(5,418	)
Class IS		—			(3,763	)
Class IR		—			(1,303	)
Total Dividends and Distributions to Shareholders		—			(82,273	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,040,442			1,813,374
Distributions Reinvested		—			47,584
Redeemed		(614,953	)		(1,035,480	)
Class A:
Subscribed		136,127			401,046
Distributions Reinvested		—			19,788
Redeemed		(180,134	)		(362,101	)
Class L:
Exchanged		31			58
Distributions Reinvested		—			592
Redeemed		(2,596	)		(7,686	)
Class C:
Subscribed		42,057			97,594
Distributions Reinvested		—			5,330
Redeemed		(37,216	)		(58,835	)
Class IS:
Subscribed		73,639			232,725
Distributions Reinvested		—			3,729
Redeemed		(104,503	)		(97,484	)
Class IR:
Subscribed		40,935			—
Distributions Reinvested		—			1,303
Net Increase in Net Assets Resulting from Capital Share Transactions		393,829			1,061,537
Total Increase in Net Assets		852,884			3,388,454
Net Assets:
Beginning of Period		7,168,535			3,780,081
End of Period	$	8,021,419		$	7,168,535

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Opportunity Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		22,365			54,601
Shares Issued on Distributions Reinvested		—			1,076
Shares Redeemed		(13,424	)		(31,412	)
Net Increase in Class I Shares Outstanding		8,941			24,265
Class A:
Shares Subscribed		3,083			12,366
Shares Issued on Distributions Reinvested		—			465
Shares Redeemed		(4,092	)		(11,494	)
Net Increase (Decrease) in Class A Shares Outstanding		(1,009	)		1,337
Class L:
Shares Exchanged		1			3
Shares Issued on Distributions Reinvested		—			14
Shares Redeemed		(60	)		(225	)
Net Decrease in Class L Shares Outstanding		(59	)		(208	)
Class C:
Shares Subscribed		1,002			3,145
Shares Issued on Distributions Reinvested		—			132
Shares Redeemed		(891	)		(1,933	)
Net Increase in Class C Shares Outstanding		111			1,344
Class IS:
Shares Subscribed		1,579			6,357
Shares Issued on Distributions Reinvested		—			84
Shares Redeemed		(2,269	)		(2,501	)
Net Increase (Decrease) in Class IS Shares Outstanding		(690	)		3,940
Class IR:
Shares Subscribed		890			—
Shares Issued on Distributions Reinvested		—			29
Net Increase in Class IR Shares Outstanding		890			29

* Not consolidated.

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	44.75		$	29.12		$	21.50		$	22.94		$	15.41		$	16.36
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.16	)		(0.28	)		(0.12	)		(0.07	)		(0.06	)		(0.05	)
Net Realized and Unrealized Gain (Loss)		3.07			16.43			7.74			(1.20	)		7.68			0.18
Total from Investment Operations		2.91			16.15			7.62			(1.27	)		7.62			0.13
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.52	)		—			(0.17	)		(0.09	)		(1.08	)
Net Asset Value, End of Period	$	47.66		$	44.75		$	29.12		$	21.50		$	22.94		$	15.41
Total Return⁽⁴⁾		6.50	%⁽⁸⁾		55.47	%		35.44	%		(5.66	)%		49.44	%		1.05	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,217,091		$	4,498,617		$	2,220,219		$	1,337,133		$	898,008		$	255,187
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			0.99	%		1.07	%
Ratio of Expenses After Expense Limitation		0.90	%⁽⁵⁾⁽⁹⁾		0.92	%⁽⁵⁾		0.94	%⁽⁵⁾		0.94	%⁽⁵⁾⁽⁶⁾		0.79	%⁽⁵⁾		0.80	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.94	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.70	)%⁽⁵⁾⁽⁹⁾		(0.79	)%⁽⁵⁾		(0.44	)%⁽⁵⁾		(0.30	)%⁽⁵⁾		(0.31	)%⁽⁵⁾		(0.34	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		5	%⁽⁸⁾		22	%		15	%		28	%		30	%		37	%

(1) Not consolidated.

(2) 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.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to January 1, 2018, the maximum ratio was 0.81% for Class I shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	43.04		$	28.10		$	20.81		$	22.28		$	15.01		$	16.03
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.21	)		(0.35	)		(0.18	)		(0.14	)		(0.12	)		(0.11	)
Net Realized and Unrealized Gain (Loss)		2.95			15.81			7.47			(1.16	)		7.48			0.17
Total from Investment Operations		2.74			15.46			7.29			(1.30	)		7.36			0.06
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.52	)		—			(0.17	)		(0.09	)		(1.08	)
Net Asset Value, End of Period	$	45.78		$	43.04		$	28.10		$	20.81		$	22.28		$	15.01
Total Return⁽⁴⁾		6.37	%⁽⁸⁾		55.03	%		35.03	%		(5.96	)%		49.03	%		0.62	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,758,607		$	1,697,016		$	1,070,124		$	790,571		$	780,705		$	340,092
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			1.32	%		1.41	%
Ratio of Expenses After Expense Limitation		1.18	%⁽⁵⁾⁽⁹⁾		1.20	%⁽⁵⁾		1.22	%⁽⁵⁾		1.26	%⁽⁵⁾⁽⁶⁾		1.12	%⁽⁵⁾		1.17	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.22	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.98	)%⁽⁵⁾⁽⁹⁾		(1.06	)%⁽⁵⁾		(0.72	)%⁽⁵⁾		(0.59	)%⁽⁵⁾		(0.63	)%⁽⁵⁾		(0.70	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		5	%⁽⁸⁾		22	%		15	%		28	%		30	%		37	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class A shares. Prior to January 1, 2018, the maximum ratio was 1.23% for Class A shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	42.44		$	27.72		$	20.54		$	22.01		$	14.84		$	15.87
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.22	)		(0.36	)		(0.19	)		(0.15	)		(0.13	)		(0.12	)
Net Realized and Unrealized Gain (Loss)		2.90			15.60			7.37			(1.15	)		7.39			0.17
Total from Investment Operations		2.68			15.24			7.18			(1.30	)		7.26			0.05
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.52	)		—			(0.17	)		(0.09	)		(1.08	)
Net Asset Value, End of Period	$	45.12		$	42.44		$	27.72		$	20.54		$	22.01		$	14.84
Total Return⁽⁴⁾		6.31	%⁽⁸⁾		54.99	%		34.96	%		(6.04	)%		48.91	%		0.56	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	54,415		$	53,675		$	40,836		$	33,913		$	39,979		$	30,133
Ratio of Expenses Before Expense Limitation		1.67	%⁽⁹⁾		1.71	%		1.74	%		1.78	%		1.86	%		1.93	%
Ratio of Expenses After Expense Limitation		1.22	%⁽⁵⁾⁽⁹⁾		1.25	%⁽⁵⁾		1.28	%⁽⁵⁾		1.32	%⁽⁵⁾⁽⁶⁾		1.20	%⁽⁵⁾		1.25	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.28	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(1.02	)%⁽⁵⁾⁽⁹⁾		(1.10	)%⁽⁵⁾		(0.78	)%⁽⁵⁾		(0.65	)%⁽⁵⁾		(0.67	)%⁽⁵⁾		(0.79	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		5	%⁽⁸⁾		22	%		15	%		28	%		30	%		37	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.40% for Class L shares. Prior to January 1, 2018, the maximum ratio was 1.50% for Class L shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	40.90		$	26.90		$	20.07		$	21.64		$	14.69		$	15.80
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.35	)		(0.57	)		(0.35	)		(0.30	)		(0.26	)		(0.21	)
Net Realized and Unrealized Gain (Loss)		2.80			15.09			7.18			(1.10	)		7.30			0.18
Total from Investment Operations		2.45			14.52			6.83			(1.40	)		7.04			(0.03	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.52	)		—			(0.17	)		(0.09	)		(1.08	)
Net Asset Value, End of Period	$	43.35		$	40.90		$	26.90		$	20.07		$	21.64		$	14.69
Total Return⁽⁴⁾		5.99	%⁽⁸⁾		53.99	%		34.03	%		(6.61	)%		47.92	%		0.05	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	467,696		$	436,790		$	251,160		$	159,642		$	104,364		$	33,801
Ratio of Expenses Before Expense Limitation		N/A			N/A			N/A			N/A			2.01	%		2.08	%
Ratio of Expenses After Expense Limitation		1.89	%⁽⁵⁾⁽⁹⁾		1.91	%⁽⁵⁾		1.94	%⁽⁵⁾		1.95	%⁽⁵⁾⁽⁶⁾		1.81	%⁽⁵⁾		1.84	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.94	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(1.69	)%⁽⁵⁾⁽⁹⁾		(1.77	)%⁽⁵⁾		(1.45	)%⁽⁵⁾		(1.30	)%⁽⁵⁾		(1.33	)%⁽⁵⁾		(1.38	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		5	%⁽⁸⁾		22	%		15	%		28	%		30	%		37	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to January 1, 2018, the maximum ratio was 2.20% for Class C shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	44.90		$	29.18		$	21.53		$	23.00		$	15.44		$	16.38
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.14	)		(0.25	)		(0.14	)		(0.00	)⁽⁴⁾		(0.05	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		3.08			16.49			7.79			(1.30	)		7.70			0.20
Total from Investment Operations		2.94			16.24			7.65			(1.30	)		7.65			0.14
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.52	)		—			(0.17	)		(0.09	)		(1.08	)
Net Asset Value, End of Period	$	47.84		$	44.90		$	29.18		$	21.53		$	23.00		$	15.44
Total Return⁽⁵⁾		6.55	%⁽⁹⁾		55.67	%		35.53	%		(5.78	)%		49.54	%		1.11	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	358,997		$	367,927		$	124,173		$	2,156		$	1,650		$	23
Ratio of Expenses Before Expense Limitation		N/A			N/A			0.86	%		N/A			1.24	%		3.82	%
Ratio of Expenses After Expense Limitation		0.82	%⁽⁶⁽¹⁰⁾		0.82	%⁽⁶⁾		0.84	%⁽⁶⁾		0.88	%⁽⁶⁾⁽⁷⁾		0.71	%⁽⁶⁾		0.71	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.84	%⁽⁶⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.62	)%^(6)(10)		(0.70	)%⁽⁶⁾		(0.51	)%⁽⁶⁾		(0.02	)%⁽⁶⁾		(0.23	)%⁽⁶⁾		(0.41	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		5	%⁽⁹⁾		22	%		15	%		28	%		30	%		37	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.95% for Class IS shares. Prior to January 1, 2018, the maximum ratio was 0.72% for Class IS shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class IR
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	44.96		$	29.22		$	21.56		$	26.67
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.14	)		(0.24	)		(0.09	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		3.08			16.50			7.75			(4.88	)
Total from Investment Operations		2.94			16.26			7.66			(4.94	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.52	)		—			(0.17	)
Net Asset Value, End of Period	$	47.90		$	44.96		$	29.22		$	21.56
Total Return⁽⁴⁾		6.54	%⁽⁷⁾		55.66	%		35.53	%		(18.63	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	164,613		$	114,510		$	73,569		$	54,284
Ratio of Expenses Before Expense Limitation		0.82	%⁽⁸⁾		N/A			N/A			N/A
Ratio of Expenses After Expense Limitation		0.82	%⁽⁵⁾⁽⁸⁾		0.82	%⁽⁵⁾		0.84	%⁽⁵⁾		0.88	%⁽⁵⁾⁽⁸⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.84	%⁽⁵⁾		N/A
Ratio of Net Investment Loss		(0.61	)%⁽⁵⁾⁽⁸⁾		(0.69	)%⁽⁵⁾		(0.35	)%⁽⁵⁾		(0.46	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		(0.01	)%⁽⁷⁾
Portfolio Turnover Rate		5	%⁽⁷⁾		22	%		15	%		28	%

(1) Not consolidated.

(2) Commencement of Offering.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
16

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Global Opportunity Portfolio. The Fund seeks long-term capital appreciation.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

The Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $33,852,000 or approximately 0.42% of the total net assets of the Fund.

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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; (6) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 – unadjusted quoted prices in active markets for identical investments

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Air Freight & Logistics	$	409,662	$	—	$	—	$	409,662
Banks		456,944		—		—		456,944
Beverages		40,350		—		—		40,350
Construction Materials		37,336		—		—		37,336
Diversified Consumer Services		137,764		—		—		137,764
Electronic Equipment, Instruments & Components		142,781		—		—		142,781
Entertainment		475,702		—		—		475,702
Food Products		68,921		—		—		68,921
Health Care Equipment & Supplies		112,053		—		—		112,053
Health Care Technology		—		116,555		—		116,555
Hotels, Restaurants & Leisure		11,992		—		—		11,992
Information Technology Services		1,791,762		—		—		1,791,762
Interactive Media & Services		825,764		—		—		825,764
Internet & Direct Marketing Retail		1,243,847		—		—		1,243,847

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)
Road & Rail	$	495,611	$	—	$	—		$	495,611
Software		952,507		—		—			952,507
Textiles, Apparel & Luxury Goods		462,540		—		—			462,540
Total Common Stocks		7,665,536		116,555		—			7,782,091
Investment Company		27,419		—		—			27,419
Preferred Stock
Electronic Equipment, Instruments & Components		—		—		—	†		—	†
Short-Term Investment
Investment Company		236,767		—		—			236,767
Derivative Contract — PIPE		—		—		3,195			3,195
Total Assets	$	7,929,722	$	116,555	$	3,195	†	$	8,049,472	†

† Includes a security valued at zero.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	Common Stock (000)			Preferred Stock (000)			Derivative Contract — PIPE (000)
Beginning Balance	$	17,733		$	—	†	$	—
Purchases		—			—			—
Sales		—			—			—
PIPE transactions		—			—			3,195
Amortization of discount		—			—			—
Transfers in		—			—			—
Transfers out		(17,733	)††		—			—
Corporate actions		—			—			—
Change in unrealized appreciation (depreciation)		—			—			—
Realized gains (losses)		—			—			—
Ending Balance	$	—		$	—	†	$	3,195
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	—		$	—		$	3,195

† Includes a security valued at zero.

†† A security transferred out of level 3 due to an Initial Public Offering.

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

within Level 3 as of June 30, 2021. 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, 2021.

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

PIPE

3,195

Market Implied

Discount for Lack of
Marketability and
Transaction Risk

10.0

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.

between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Consolidated Statement of Operations.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

4. Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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:

from a publicly traded company or its affiliates in a private placement transaction, typically at a discount to the market price of the company's securities. The Fund's PIPE investment represents an unfunded subscription agreement in a private investment in public equity. The Fund will earmark or segregate cash or liquid assets or establish a segregated account on the Fund's books in which it will continually maintain cash or cash equivalents or other liquid portfolio securities equal in value to commitments to purchase securities on a forward commitment basis.

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Appreciation on
Derivative Contract — PIPE

Equity Risk

3,195

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Derivative Contract — PIPE	$	3,195

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities (000)
Derivative Contract — PIPE	$	3,195	$	—

(a) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Derivative Contract — PIPE:
Average monthly notional amount				$	60,291,000

7. Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

come 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $750 million				Next $750 million				Over $1.5 billion
	0.80	%			0.75	%			0.70	%

For the six months ended June 30, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.71% of the Fund's average daily net assets.

The Adviser provides investment advisory services to the Subsidiary pursuant to the Subsidiary Investment Management Agreement (the "Agreement"). Under the Agreement, the

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

The Company has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.50% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares. The Distributor has agreed to waive for at least one year from the date of the Fund's prospectus or until such time that the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate, the 12b-1 fees on Class L shares of the Fund to the extent it exceeds 0.30% of the average daily net assets of such shares on an annualized basis. For the six months ended June 30, 2021, this waiver amounted to approximately $119,000.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $1,021,979,000 and $359,621,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $112,000 relating to the Fund's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	528,671			$	532,019			$	823,923			$	17

Affiliated Affiliated Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	236,767

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	1,952	$	80,321	$	—	$	—

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	43,646			$	9,786

During the year ended December 31, 2020, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $50,341,000.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

K. Market Risk and Risks Relating to Certain Financial Instruments:

The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

required to return any remaining monies to shareholders, causing the Fund to incur the opportunity cost of missed investment opportunities the Fund otherwise could have benefited from; a transaction once identified or effected may prove unsuccessful and an investment in the SPAC may lose value; the warrants or other rights with respect to the SPAC held by the Fund may expire worthless or may be repurchased or retired by the SPAC at an unfavorable price; and an investment in a SPAC may be diluted by additional later offerings of interests in the SPAC or by other investors exercising existing rights to purchase shares of the SPAC. In addition, a SPAC target company may have limited operating experience, a smaller size, limited product lines, markets, distribution channels and financial and managerial resources. Investing in the securities of smaller companies involves greater risk, and portfolio price volatility.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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. The Board noted that the Fund's contractual management fee was higher than but close to its peer group average and actual 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management 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

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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIGOSAN
3692773 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Permanence Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					7
Consolidated Statements of Changes in Net Assets					8
Consolidated Financial Highlights					9
Notes to Consolidated Financial Statements					13
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Global Permanence Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Global Permanence Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Permanence Portfolio Class I	$	1,000.00	$	1,129.00	$	1,019.84	$	5.28	$	5.01		1.00	%
Global Permanence Portfolio Class A		1,000.00		1,126.40		1,018.10		7.12		6.76		1.35
Global Permanence Portfolio Class C		1,000.00		1,122.40		1,014.38		11.05		10.49		2.10
Global Permanence Portfolio Class IS		1,000.00		1,128.90		1,020.08		5.01		4.76		0.95

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Global Permanence Portfolio

	Shares		Value (000)
Common Stocks (93.5%)
Canada (10.3%)
Canadian National Railway Co.		434	$	46
Colliers International Group, Inc.		501		56
Constellation Software, Inc.		120		181
FirstService Corp.		331		57
Topicus.com, Inc. (a)		522		38
				378
Denmark (0.9%)
Chr Hansen Holding A/S		349		32
France (16.3%)
Christian Dior SE		276		222
EssilorLuxottica SA		219		40
Hermes International		142		207
L'Oreal SA		138		62
Remy Cointreau SA		333		69
				600
India (3.5%)
HDFC Bank Ltd. ADR (a)		1,737		127
Italy (1.1%)
Brunello Cucinelli SpA (a)		714		42
Japan (1.6%)
Nintendo Co., Ltd.		100		58
Mexico (1.0%)
Grupo Aeroportuario del Sureste SAB de CV, Class B (a)		1,950		36
Netherlands (8.6%)
ASML Holding N.V. (Registered)		412		284
JDE Peet's N.V. (a)		846		31
				315
Spain (0.9%)
Aena SME SA (a)		209		34
United Kingdom (3.3%)
Intertek Group PLC		403		31
Rentokil Initial PLC		13,083		90
				121
United States (46.0%)
Amazon.com, Inc. (a)		34		117
Appfolio, Inc., Class A (a)		399		56
Axon Enterprise, Inc. (a)		985		174
Costco Wholesale Corp.		302		120
Danaher Corp.		138		37
HEICO Corp., Class A		944		117
Intercontinental Exchange, Inc.		472		56
Intuitive Surgical, Inc. (a)		148		136
Linde PLC		115		33
Progressive Corp. (The)		562		55
Roper Technologies, Inc.		78		37
Royal Gold, Inc.		307		35
Royalty Pharma PLC, Class A		4,057		166
S&P Global, Inc.		230		94

	Shares		Value (000)
Texas Pacific Land Corp.		58	$	93
Tyler Technologies, Inc. (a)		69		31
Veeva Systems, Inc., Class A (a)		484		151
Walt Disney Co. (The) (a)		720		127
Waste Connections, Inc.		430		51
				1,686
Total Common Stocks (Cost $2,478)				3,429
Investment Companies (1.3%)
Grayscale Bitcoin Trust (a)		419		13
Hipgnosis Songs Fund Ltd.		20,696		35
Total Investment Companies (Cost $57)				48
Short-Term Investment (1.5%)
Investment Company (1.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $56)56,400				56
Total Investments Excluding Purchased Options (96.3%) (Cost $2,591)				3,533
Total Purchased Options Outstanding (0.0%) (b) (Cost $15)				1
Total Investments (96.3%) (Cost $2,606) (c)				3,534
Other Assets in Excess of Liabilities (3.7%)				137
Net Assets (100.0%)			$	3,671

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(c) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $975,000 and the aggregate gross unrealized depreciation is approximately $47,000, resulting in net unrealized appreciation of approximately $928,000.

ADR American Depositary Receipt.

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Permanence Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
BNP Paribas	USD/CNH	CNH	7.99	Sep-21		472,545	$	473	$	—	@	$	3	$	(3	)
BNP Paribas	USD/CNH	CNH	7.45	Jan-22		595,628		596		—	@		3		(3	)
BNP Paribas	USD/CNH	CNH	7.64	Nov-21		556,269		556		—	@		3		(3	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		655,158		655		1			3		(2	)
Royal Bank of Scotland	USD/CNH	CNH	8.06	Jul-21		534,767		535		—	@		3		(3	)
									$	1		$	15	$	(14	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Other*		55.4	%
Textiles, Apparel & Luxury Goods		14.5
Software		8.7
Aerospace & Defense		8.2
Semiconductors & Semiconductor Equipment		8.0
Entertainment		5.2
Total Investments		100.0	%

* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Permanence Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $2,550)	$	3,478
Investment in Security of Affiliated Issuer, at Value (Cost $56)		56
Total Investments in Securities, at Value (Cost $2,606)		3,534
Foreign Currency, at Value (Cost $7)		7
Cash		—	@
Receivable for Investments Sold		97
Due from Adviser		54
Dividends Receivable		—	@
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Other Assets		59
Total Assets		3,751
Liabilities:
Payable for Investments Purchased		36
Payable for Professional Fees		32
Payable for Custodian Fees		4
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		—	@
Payable for Organization Costs for Subsidiary		—	@
Other Liabilities		8
Total Liabilities		80
Net Assets	$	3,671
Net Assets Consist of:
Paid-in-Capital	$	2,440
Total Distributable Earnings		1,231
Net Assets	$	3,671
CLASS I:
Net Assets	$	3,613
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		238,684
Net Asset Value, Offering and Redemption Price Per Share	$	15.14
CLASS A:
Net Assets	$	28
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,838
Net Asset Value, Redemption Price Per Share	$	15.06
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.83
Maximum Offering Price Per Share	$	15.89
CLASS C:
Net Assets	$	15
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,002
Net Asset Value, Offering and Redemption Price Per Share	$	14.86
CLASS IS:
Net Assets	$	15
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,008
Net Asset Value, Offering and Redemption Price Per Share	$	15.15

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Permanence Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $1 of Foreign Taxes Withheld)	$	20
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		20
Expenses:
Professional Fees		60
Registration Fees		21
Advisory Fees (Note B)		14
Shareholder Reporting Fees		7
Custodian Fees (Note F)		5
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		2
Pricing Fees		2
Administration Fees (Note C)		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class A		—	@
Organization Costs for Subsidiary		—	@
Other Expenses		8
Total Expenses		124
Expenses Reimbursed by Adviser (Note B)		(91	)
Waiver of Advisory Fees (Note B)		(14	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		16
Net Investment Income		4
Realized Gain:
Investments Sold		187
Foreign Currency Translation		—	@
Net Realized Gain		187
Change in Unrealized Appreciation (Depreciation):
Investments		226
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		226
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		413
Net Increase in Net Assets Resulting from Operations	$	417

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Permanence Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	4		$	(8	)
Net Realized Gain		187			130
Net Change in Unrealized Appreciation (Depreciation)		226			576
Net Increase in Net Assets Resulting from Operations		417			698
Dividends and Distributions to Shareholders:
Class I		—			(22	)
Class A		—			(—	@)
Class C		—			(—	@)
Class IS		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(22	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		—			43
Distributions Reinvested		—			19
Class A:
Subscribed		17			6
Distributions Reinvested		—			—	@
Redeemed		(11	)		(—	@)
Class C:
Distributions Reinvested		—			—	@
Class IS:
Distributions Reinvested		—			—	@
Net Increase in Net Assets Resulting from Capital Share Transactions		6			68
Total Increase in Net Assets		423			744
Net Assets:
Beginning of Period		3,248			2,504
End of Period	$	3,671		$	3,248
(1) Capital Share Transactions:
Class I:
Shares Subscribed		—			5
Shares Issued on Distributions Reinvested		—			1
Net Increase in Class I Shares Outstanding		—			6
Class A:
Shares Subscribed		1			—	@@
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		(—	@@)
Net Increase in Class A Shares Outstanding		—	@@		—	@@
Class C:
Shares Issued on Distributions Reinvested		—			—	@@
Class IS:
Shares Issued on Distributions Reinvested		—			—	@@

* Not consolidated.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Permanence Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020⁽¹⁾			Period from April 30, 2019⁽²⁾ to December 31, 2019⁽¹⁾
Net Asset Value, Beginning of Period	$	13.41		$	10.63		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.01			(0.03	)		0.04
Net Realized and Unrealized Gain		1.72			2.90			0.59
Total from Investment Operations		1.73			2.87			0.63
Distributions from and/or in Excess of:
Net Investment Income		—			(0.07	)		—
Net Realized Gain		—			(0.02	)		—
Total Distributions		—			(0.09	)		—
Net Asset Value, End of Period	$	15.14		$	13.41		$	10.63
Total Return⁽⁴⁾		12.90	%⁽⁷⁾		27.06	%		6.30	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,613		$	3,202		$	2,471
Ratio of Expenses Before Expense Limitation		7.19	%⁽⁸⁾		8.62	%		12.79	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.00	%⁽⁵⁾⁽⁸⁾		1.00	%⁽⁵⁾		0.99	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		0.22	%⁽⁵⁾⁽⁸⁾		(0.30	)%⁽⁵⁾		0.53	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		24	%⁽⁷⁾		113	%		35	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Permanence Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020⁽¹⁾			Period from April 30, 2019⁽²⁾ to December 31, 2019⁽¹⁾
Net Asset Value, Beginning of Period	$	13.37		$	10.61		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.01	)		(0.07	)		0.01
Net Realized and Unrealized Gain		1.70			2.89			0.60
Total from Investment Operations		1.69			2.82			0.61
Distributions from and/or in Excess of:
Net Investment Income		—			(0.04	)		—
Net Realized Gain		—			(0.02	)		—
Total Distributions		—			(0.06	)		—
Net Asset Value, End of Period	$	15.06		$	13.37		$	10.61
Total Return⁽⁴⁾		12.64	%⁽⁷⁾		26.57	%		6.10	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	28		$	19		$	11
Ratio of Expenses Before Expense Limitation		16.28	%⁽⁸⁾		26.08	%		30.61	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.35	%⁽⁵⁾⁽⁸⁾		1.35	%⁽⁵⁾		1.34	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		(0.14	)%⁽⁵⁾⁽⁸⁾		(0.65	)%⁽⁵⁾		0.17	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		24	%⁽⁷⁾		113	%		35	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Permanence Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020⁽¹⁾			Period from April 30, 2019⁽²⁾ to December 31, 2019⁽¹⁾
Net Asset Value, Beginning of Period	$	13.24		$	10.56		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.06	)		(0.15	)		(0.04	)
Net Realized and Unrealized Gain		1.68			2.85			0.60
Total from Investment Operations		1.62			2.70			0.56
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.02	)		—
Net Asset Value, End of Period	$	14.86		$	13.24		$	10.56
Total Return⁽⁴⁾		12.24	%⁽⁷⁾		25.60	%		5.60	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15		$	13		$	11
Ratio of Expenses Before Expense Limitation		21.26	%⁽⁸⁾		28.45	%		31.59	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.10	%⁽⁵⁾⁽⁸⁾		2.10	%⁽⁵⁾		2.09	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.89	)%⁽⁵⁾⁽⁸⁾		(1.40	)%⁽⁵⁾		(0.57	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		24	%⁽⁷⁾		113	%		35	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Global Permanence Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Year Ended December 31, 2020⁽¹⁾			Period from April 30, 2019⁽²⁾ to December 31, 2019⁽¹⁾
Net Asset Value, Beginning of Period	$	13.42		$	10.64		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.02			(0.03	)		0.04
Net Realized and Unrealized Gain		1.71			2.91			0.60
Total from Investment Operations		1.73			2.88			0.64
Distributions from and/or in Excess of:
Net Investment Income		—			(0.08	)		—
Net Realized Gain		—			(0.02	)		—
Total Distributions		—			(0.10	)		—
Net Asset Value, End of Period	$	15.15		$	13.42		$	10.64
Total Return⁽⁴⁾		12.89	%⁽⁷⁾		27.09	%		6.40	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15		$	14		$	11
Ratio of Expenses Before Expense Limitation		19.66	%⁽⁸⁾		26.62	%		30.53	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.94	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		0.26	%⁽⁵⁾⁽⁸⁾		(0.24	)%⁽⁵⁾		0.59	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		24	%⁽⁷⁾		113	%		35	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Global Permanence Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

The Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Permanence Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $13,000 or approximately 0.36% of the total net assets of the Fund.

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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; (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.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	291	$	—	$	—	$	291
Banks		127		—		—		127
Beverages		69		—		—		69
Capital Markets		150		—		—		150
Chemicals		65		—		—		65
Commercial Services & Supplies		141		—		—		141
Entertainment		185		—		—		185
Food & Staples Retailing		120		—		—		120
Food Products		31		—		—		31
Health Care Equipment & Supplies		173		—		—		173
Health Care Technology		151		—		—		151
Industrial Conglomerates		37		—		—		37
Insurance		55		—		—		55
Internet & Direct Marketing Retail		117		—		—		117
Metals & Mining		35		—		—		35
Oil, Gas & Consumable Fuels		93		—		—		93
Personal Products		62		—		—		62
Pharmaceuticals		166		—		—		166
Professional Services		31		—		—		31
Real Estate Management & Development		113		—		—		113
Road & Rail		46		—		—		46
Semiconductors & Semiconductor Equipment		284		—		—		284

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)
Software	$	268	$	38	$	—	$	306
Textiles, Apparel & Luxury Goods		511		—		—		511
Transportation Infrastructure		70		—		—		70
Total Common Stocks		3,391		38		—		3,429
Call Options Purchased		—		1		—		1
Investment Companies		48		—		—		48
Short-Term Investment
Investment Company		56		—		—		56
Total Assets	$	3,495	$	39	$	—	$	3,534

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(5	)(b)

(b) Amounts are included in Investments Sold in the Consolidated Statement of Operations.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(3	)(c)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Purchased Options	$	1	(a)	$	—

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(d) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities(a) (000)			Financial Instrument (000)		Collateral Received (000)		Net Amount (not less than $0) (000)
BNP Paribas	$	—	@	$	—	$	—	$	—	@
Goldman Sachs International		1			—		—		1
Royal Bank of Scotland		—	@		—		—		—	@
Total	$	1		$	—	$	—	$	1

@ Value is less than $500.

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					2,865,000

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 $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $14,000 of advisory fees were waived and approximately $94,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $773,000 and $814,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	62			$	483			$	489			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	56

@ Amount is less than $500.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended June 30, 2021, the Fund did not engage in any cross-trade transactions.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for consolidated financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the two-year period ended December 31, 2020 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes.

The tax character of distributions paid during fiscal years 2020 and 2019 was as follows:

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	22	$	—	$	—	$	—

Permanent differences, primarily due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	1			$	(1	)

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	63			$	137

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

ended June 30, 2021, the Fund did not have any borrowings under the Facility.

K. Market Risk and Risks Relating to Certain Financial Instruments:

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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-year period and the period since the end of April 2019, the month of the Fund's inception. 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 averages and 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIGPERMSAN
3692778 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Real Estate Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					26
Liquidity Risk Management Program					28
U.S. Customer Privacy Notice					29
Director and Officer Information					32

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Global Real Estate Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Global Real Estate Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Epense Ratio During Period**
Global Real Estate Portfolio Class I	$	1,000.00	$	1,158.60	$	1,019.93	$	5.25	$	4.91		0.98	%
Global Real Estate Portfolio Class A		1,000.00		1,156.40		1,018.10		7.22		6.76		1.35
Global Real Estate Portfolio Class L		1,000.00		1,154.00		1,015.62		9.88		9.25		1.85
Global Real Estate Portfolio Class C		1,000.00		1,151.10		1,014.38		11.20		10.49		2.10
Global Real Estate Portfolio Class IS		1,000.00		1,158.80		1,020.13		5.03		4.71		0.94
Global Real Estate Portfolio Class IR		1,000.00		1,158.80		1,020.13		5.03		4.71		0.94

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Real Estate Portfolio

	Shares		Value (000)
Common Stocks (99.8%)
Australia (3.6%)
Charter Hall Group REIT		65,931	$	767
Goodman Group REIT		53,231		845
Mirvac Group REIT		363,459		796
National Storage REIT		81,910		122
Scentre Group REIT		88,605		182
Stockland REIT		250,416		875
				3,587
Austria (0.3%)
CA Immobilien Anlagen AG		8,069		336
Canada (1.7%)
Granite REIT		15,397		1,025
RioCan REIT		34,022		606
				1,631
China (2.6%)
China Resources Land Ltd. (a)		140,000		567
Country Garden Services Holdings Co. Ltd. (a)		74,000		800
GDS Holdings Ltd. ADR (b)		6,451		506
Longfor Group Holdings Ltd. (a)		130,000		728
				2,601
Finland (0.5%)
Kojamo Oyj		20,071		459
France (2.7%)
Gecina SA REIT (c)		6,749		1,034
ICADE REIT		6,028		520
Klepierre SA REIT		10,605		273
Mercialys SA REIT		68,954		835
				2,662
Germany (4.3%)
Alstria Office AG REIT		23,796		440
Deutsche EuroShop AG		5,465		130
Deutsche Wohnen SE		19,558		1,196
LEG Immobilien SE		6,035		869
Vonovia SE		25,019		1,617
				4,252
Hong Kong (5.6%)
ESR Cayman Ltd. (b)		427,000		1,441
Link REIT		96,370		934
New World Development Co. Ltd.		132,439		688
SJM Holdings Ltd. (b)		318,000		347
Sun Hung Kai Properties Ltd.		50,367		751
Swire Properties Ltd.		20,900		62
Wharf Real Estate Investment Co., Ltd.		225,075		1,309
				5,532
Ireland (0.9%)
Hibernia REIT PLC		595,221		875
Japan (9.0%)
Activia Properties, Inc. REIT		127		601
Frontier Real Estate Investment Corp. REIT		26		122
GLP J-REIT		340		586

	Shares		Value (000)
Japan Hotel Investment Corp. REIT		592	$	355
Japan Metropolitan Fund Investment Corp. REIT		597		647
Japan Real Estate Investment Corp. REIT		124		762
Mitsubishi Estate Co., Ltd.		35,400		572
Mitsui Fudosan Co., Ltd.		66,700		1,545
Nippon Building Fund, Inc. REIT (c)		123		767
Nippon Prologis, Inc. REIT		184		586
Nomura Real Estate Master Fund, Inc. REIT		442		709
NTT UD REIT Investment Corp. REIT		256		378
Orix, Inc. J-REIT		267		514
Sumitomo Realty & Development Co., Ltd.		22,100		790
				8,934
Malta (0.0%) (d)
BGP Holdings PLC (b)(e)		12,867,024		18
Netherlands (1.3%)
Eurocommercial Properties N.V. CVA REIT		26,812		667
NSI N.V. REIT		16,543		639
				1,306
Singapore (2.3%)
City Developments Ltd.		75,300		408
Frasers Logistics & Commercial Trust REIT		326,900		350
Keppel REIT		357,800		314
Keppel DC REIT		373,800		692
Mapletree Industrial Trust REIT		243,412		513
				2,277
Spain (1.4%)
Inmobiliaria Colonial Socimi SA REIT		38,519		389
Merlin Properties Socimi SA REIT		96,592		1,001
				1,390
Sweden (1.4%)
Atrium Ljungberg AB, Class B		4,423		101
Fabege AB		45,307		727
Hufvudstaden AB, Class A		31,892		542
				1,370
Switzerland (0.4%)
PSP Swiss Property AG (Registered)		3,102		394
United Kingdom (4.1%)
British Land Co., PLC (The) REIT		144,788		991
Derwent London PLC REIT		4,742		218
Grainger PLC		130,147		513
Hammerson PLC REIT (c)		650,408		335
Helical PLC		20,014		120
Land Securities Group PLC REIT		128,733		1,203
Segro PLC REIT		36,258		549
St. Modwen Properties PLC		5,866		45
Workspace Group PLC REIT		3,802		44
				4,018
United States (57.7%)
Agree Realty Corp. REIT		10,520		741
Alexandria Real Estate Equities, Inc. REIT		10,629		1,934
American Campus Communities, Inc. REIT		40,141		1,875

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Global Real Estate Portfolio

	Shares		Value (000)
United States (cont'd)
AvalonBay Communities, Inc. REIT		12,843	$	2,680
Boyd Gaming Corp. (b)		10,548		649
Brixmor Property Group, Inc. REIT		90,692		2,076
Caesars Entertainment, Inc. (b)		4,769		495
Columbia Property Trust, Inc. REIT		38,711		673
CyrusOne, Inc. REIT		14,885		1,065
Empire State Realty Trust, Inc., Class A REIT		96,696		1,160
Equinix, Inc. REIT		3,640		2,921
Exeter Industrial Value Fund, LP (b)(e)(f)		1,860,000		129
Healthcare Trust of America, Inc., Class A REIT		31,170		832
Healthpeak Properties, Inc. REIT		98,832		3,290
Host Hotels & Resorts, Inc. REIT (b)		59,272		1,013
Invitation Homes, Inc. REIT		63,758		2,377
Kilroy Realty Corp. REIT		15,036		1,047
Kimco Realty Corp. REIT		53,799		1,122
Life Storage, Inc. REIT		10,836		1,163
Medical Properties Trust, Inc. REIT		45,812		921
NETSTREIT Corp. REIT		67,506		1,557
Prologis, Inc. REIT		46,255		5,529
Public Storage REIT		15,653		4,707
Retail Properties of America, Inc., Class A REIT		94,342		1,080
RLJ Lodging Trust REIT		30,819		469
RPT Realty REIT		83,804		1,088
Simon Property Group, Inc. REIT		20,838		2,719
UDR, Inc. REIT		60,506		2,964
Ventas, Inc. REIT		31,115		1,777
VICI Properties, Inc. REIT		82,016		2,544
Welltower, Inc. REIT		52,673		4,377
				56,974
Total Common Stocks (Cost $65,804)				98,616
Short-Term Investments (1.9%)
Securities held as Collateral on Loaned Securities (1.2%)
Investment Company (1.0%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G)		1,006,930		1,007
	Face Amount (000)
Repurchase Agreements (0.2%)
HSBC Securities USA, Inc. (0.05%, dated 6/30/21, due 7/1/21; proceeds $47; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $48)	$	47,407		47
Merrill Lynch & Co., Inc. (0.05%, dated 6/30/21, due 7/1/21; proceeds $133; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 12/30/21 - 8/15/43; valued at $135)		132,740		133
				180
Total Securities held as Collateral on Loaned Securities (Cost $1,187)				1,187

	Shares		Value (000)
Investment Company (0.7%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $691)		690,926	$	691
Total Short-Term Investments (Cost $1,878)				1,878
Total Investments (101.7%) (Cost $67,682) Including $2,096 of Securities Loaned (g)				100,494
Liabilities in Excess of Other Assets (–1.7%)				(1,649	)
Net Assets (100.0%)			$	98,845

(a) Security trades on the Hong Kong exchange.

(b) Non-income producing security.

(d) Amount is less than 0.05%.

(e) At June 30, 2021, the Fund held fair valued securities valued at approximately $147,000, representing 0.1% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) Restricted security valued at fair value and not registered under the Securities Act of 1933. Exeter Industrial Value Fund, LP was acquired between 11/07 - 4/11 and has a current cost basis of $0. At June 30, 2021, this security had an aggregate market value of approximately $129,000, representing 0.1% of net assets.

(g) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $33,087,000 and the aggregate gross unrealized depreciation is approximately $275,000, resulting in net unrealized appreciation of approximately $32,812,000.

ADR				American Depositary Receipt.
CVA				Certificaten Van Aandelen.
REIT				Real Estate Investment Trust.

Portfolio Composition*

Classification	Percentage of Total Investments
Diversified		22.2	%
Residential		15.5
Retail		15.2
Office		11.5
Health Care		11.3
Industrial		10.8
Other**		7.5
Self Storage		6.0
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $65,984)	$	98,796
Investment in Security of Affiliated Issuer, at Value (Cost $1,698)		1,698
Total Investments in Securities, at Value (Cost $67,682)		100,494
Foreign Currency, at Value (Cost $343)		340
Cash from Securities Lending		34
Receivable for Investments Sold		1,723
Dividends Receivable		340
Tax Reclaim Receivable		119
Receivable for Fund Shares Sold		8
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		150
Total Assets		103,208
Liabilities:
Payable for Investments Purchased		2,363
Collateral on Securities Loaned, at Value		1,221
Deferred Capital Gain Country Tax		241
Payable for Advisory Fees		199
Payable for Sub Transfer Agency Fees — Class I		76
Payable for Sub Transfer Agency Fees — Class A		2
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Custodian Fees		56
Payable for Professional Fees		43
Payable for Fund Shares Redeemed		31
Payable for Transfer Agency Fees — Class I		3
Payable for Transfer Agency Fees — Class A		4
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		1
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Administration Fees		8
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		114
Total Liabilities		4,363
Net Assets	$	98,845
Net Assets Consist of:
Paid-in-Capital	$	35,024
Total Distributable Earnings		63,821
Net Assets	$	98,845

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Real Estate Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	64,134
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		6,705,153
Net Asset Value, Offering and Redemption Price Per Share	$	9.56
CLASS A:
Net Assets	$	4,027
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		422,269
Net Asset Value, Redemption Price Per Share	$	9.54
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.53
Maximum Offering Price Per Share	$	10.07
CLASS L:
Net Assets	$	602
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		63,770
Net Asset Value, Offering and Redemption Price Per Share	$	9.44
CLASS C:
Net Assets	$	393
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		42,645
Net Asset Value, Offering and Redemption Price Per Share	$	9.22
CLASS IS:
Net Assets	$	29,679
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,104,657
Net Asset Value, Offering and Redemption Price Per Share	$	9.56
CLASS IR:
Net Assets	$	10
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,019
Net Asset Value, Offering and Redemption Price Per Share	$	9.56
⁽¹⁾ Including: Securities on Loan, at Value:	$	2,096

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $86 of Foreign Taxes Withheld)	$	2,726
Income from Securities Loaned — Net		7
Non-Cash Dividends from Securities of Unaffiliated Issuers		471
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		3,204
Expenses:
Advisory Fees (Note B)		848
Administration Fees (Note C)		85
Professional Fees		59
Custodian Fees (Note F)		58
Registration Fees		32
Shareholder Reporting Fees		21
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		10
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Transfer Agency Fees — Class IR (Note E)		1
Sub Transfer Agency Fees — Class I		14
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Shareholder Services Fees — Class A (Note D)		5
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		2
Pricing Fees		5
Directors' Fees and Expenses		4
Interest Expenses		10
Other Expenses		12
Total Expenses		1,176
Waiver of Advisory Fees (Note B)		(125	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(9	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		1,037
Net Investment Income		2,167
Realized Gain (Loss):
Investments Sold (Net of $27 of Capital Gain Country Tax)		73,299
Foreign Currency Translation		(36	)
Net Realized Gain		73,263
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $19)		(44,418	)
Foreign Currency Translation		(14	)
Net Change in Unrealized Appreciation (Depreciation)		(44,432	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		28,831
Net Increase in Net Assets Resulting from Operations	$	30,998

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,167		$	7,773
Net Realized Gain (Loss)		73,263			(9,935	)
Net Change in Unrealized Appreciation (Depreciation)		(44,432	)		(97,678	)
Net Increase (Decrease) in Net Assets Resulting from Operations		30,998			(99,840	)
Dividends and Distributions to Shareholders:
Class I		—			(2,017	)
Class A		—			(84	)
Class L		—			(7	)
Class C		—			(2	)
Class IS		—			(5,319	)
Class IR		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(7,429	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		2,413			32,011
Distributions Reinvested		—			1,893
Redeemed		(35,784	)		(227,702	)
Class A:
Subscribed		300			340
Distributions Reinvested		—			84
Redeemed		(1,130	)		(4,343	)
Class L:
Exchanged		—			101
Distributions Reinvested		—			7
Redeemed		—			(723	)
Class C:
Subscribed		288			—
Distributions Reinvested		—			2
Redeemed		(185	)		(99	)
Class IS:
Subscribed		2,936			44,467
Distributions Reinvested		—			5,311
Redeemed		(209,036	)		(122,338	)
Class IR:
Distributions Reinvested		—			—	@
Net Decrease in Net Assets Resulting from Capital Share Transactions		(240,198	)		(270,989	)
Total Decrease in Net Assets		(209,200	)		(378,258	)
Net Assets:
Beginning of Period		308,045			686,303
End of Period	$	98,845		$	308,045

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Real Estate Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		272			4,347
Shares Issued on Distributions Reinvested		—			229
Shares Redeemed		(3,846	)		(27,050	)
Net Decrease in Class I Shares Outstanding		(3,574	)		(22,474	)
Class A:
Shares Subscribed		32			43
Shares Issued on Distributions Reinvested		—			10
Shares Redeemed		(133	)		(619	)
Net Decrease in Class A Shares Outstanding		(101	)		(566	)
Class L:
Shares Exchanged		—			15
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		—			(98	)
Net Decrease in Class L Shares Outstanding		—			(82	)
Class C:
Shares Subscribed		35			—
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(20	)		(13	)
Net Increase (Decrease) in Class C Shares Outstanding		15			(13	)
Class IS:
Shares Subscribed		349			6,252
Shares Issued on Distributions Reinvested		—			643
Shares Redeemed		(23,679	)		(15,958	)
Net Decrease in Class IS Shares Outstanding		(23,330	)		(9,063	)
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Real Estate Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.26		$	9.87		$	9.19		$	11.13		$	10.76		$	10.80
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.10			0.15			0.24			0.27			0.25			0.21
Net Realized and Unrealized Gain (Loss)		1.20			(1.57	)		1.43			(1.11	)		0.80			0.15
Total from Investment Operations		1.30			(1.42	)		1.67			(0.84	)		1.05			0.36
Distributions from and/or in Excess of:
Net Investment Income		—			(0.11	)		(0.54	)		(0.51	)		(0.15	)		(0.34	)
Net Realized Gain		—			(0.08	)		(0.45	)		(0.59	)		(0.53	)		(0.04	)
Paid-in-Capital		—			—			—			—			—			(0.02	)
Total Distributions		—			(0.19	)		(0.99	)		(1.10	)		(0.68	)		(0.40	)
Net Asset Value, End of Period	$	9.56		$	8.26		$	9.87		$	9.19		$	11.13		$	10.76
Total Return⁽³⁾		15.86	%⁽⁸⁾		(14.33	)%		18.35	%		(7.92	)%		9.73	%		3.42	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	64,134		$	84,874		$	323,386		$	361,680		$	553,319		$	471,790
Ratio of Expenses Before Expense Limitation		1.12	%⁽⁹⁾		1.20	%		1.05	%		1.10	%		1.07	%		1.04	%
Ratio of Expenses After Expense Limitation		1.00	%⁽⁴⁾⁽⁹⁾		1.01	%⁽⁴⁾⁽⁶⁾		1.00	%⁽⁴⁾		1.03	%⁽⁴⁾⁽⁵⁾		1.05	%⁽⁴⁾		1.04	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.98	%⁽⁴⁾⁽⁹⁾		1.00	%⁽⁴⁾		1.00	%⁽⁴⁾		1.03	%⁽⁴⁾		1.05	%⁽⁴⁾		N/A
Ratio of Net Investment Income		2.20	%⁽⁴⁾⁽⁹⁾		1.86	%⁽⁴⁾		2.36	%⁽⁴⁾		2.54	%⁽⁴⁾		2.20	%⁽⁴⁾		1.88	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		77	%⁽⁸⁾		51	%		24	%		38	%		39	%		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 would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to July 1,2018, 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.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Real Estate Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.25		$	9.85		$	9.17		$	11.10		$	10.71		$	10.74
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.08			0.13			0.21			0.23			0.17			0.17
Net Realized and Unrealized Gain (Loss)		1.21			(1.58	)		1.41			(1.10	)		0.84			0.16
Total from Investment Operations		1.29			(1.45	)		1.62			(0.87	)		1.01			0.33
Distributions from and/or in Excess of:
Net Investment Income		—			(0.07	)		(0.49	)		(0.47	)		(0.09	)		(0.30	)
Net Realized Gain		—			(0.08	)		(0.45	)		(0.59	)		(0.53	)		(0.04	)
Paid-in-Capital		—			—			—			—			—			(0.02	)
Total Distributions		—			(0.15	)		(0.94	)		(1.06	)		(0.62	)		(0.36	)
Net Asset Value, End of Period	$	9.54		$	8.25		$	9.85		$	9.17		$	11.10		$	10.71
Total Return⁽³⁾		15.64	%⁽⁸⁾		(14.65	)%		17.90	%		(8.19	)%		9.44	%		3.12	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,027		$	4,316		$	10,728		$	12,775		$	17,701		$	92,730
Ratio of Expenses Before Expense Limitation		1.94	%⁽⁹⁾		1.90	%		1.37	%		1.39	%		N/A			1.36	%
Ratio of Expenses After Expense Limitation		1.37	%^(4)(6)(9)		1.36	%⁽⁴⁾⁽⁶⁾		1.35	%⁽⁴⁾		1.38	%⁽⁴⁾⁽⁵⁾		1.35	%⁽⁴⁾		1.35	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.35	%⁽⁴⁾⁽⁹⁾		1.35	%⁽⁴⁾		1.35	%⁽⁴⁾		1.38	%⁽⁴⁾		1.35	%⁽⁴⁾		N/A
Ratio of Net Investment Income		1.84	%⁽⁴⁾⁽⁹⁾		1.63	%⁽⁴⁾		2.00	%⁽⁴⁾		2.18	%⁽⁴⁾		1.55	%⁽⁴⁾		1.51	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		77	%⁽⁸⁾		51	%		24	%		38	%		39	%		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 A shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class A shares. Prior to July 1,2018, the maximum ratio was 1.40% for Class A shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Real Estate Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.18		$	9.75		$	9.09		$	11.01		$	10.64		$	10.61
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.06			0.08			0.16			0.17			0.14			0.12
Net Realized and Unrealized Gain (Loss)		1.20			(1.56	)		1.40			(1.09	)		0.81			0.16
Total from Investment Operations		1.26			(1.48	)		1.56			(0.92	)		0.95			0.28
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.45	)		(0.41	)		(0.05	)		(0.19	)
Net Realized Gain		—			(0.08	)		(0.45	)		(0.59	)		(0.53	)		(0.04	)
Paid-in-Capital		—			—			—			—			—			(0.02	)
Total Distributions		—			(0.09	)		(0.90	)		(1.00	)		(0.58	)		(0.25	)
Net Asset Value, End of Period	$	9.44		$	8.18		$	9.75		$	9.09		$	11.01		$	10.64
Total Return⁽³⁾		15.40	%⁽⁸⁾		(15.17	)%		17.37	%		(8.74	)%		8.89	%		2.65	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	602		$	522		$	1,419		$	1,220		$	1,344		$	1,483
Ratio of Expenses Before Expense Limitation		2.20	%⁽⁹⁾		2.08	%		1.91	%		2.02	%		1.93	%		1.82	%
Ratio of Expenses After Expense Limitation		1.87	%^(4)(6)(9)		1.86	%⁽⁴⁾⁽⁶⁾		1.85	%⁽⁴⁾		1.88	%⁽⁴⁾⁽⁵⁾		1.90	%⁽⁴⁾		1.82	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.85	%⁽⁴⁾⁽⁹⁾		1.85	%⁽⁴⁾		1.85	%⁽⁴⁾		1.88	%⁽⁴⁾		1.90	%⁽⁴⁾		N/A
Ratio of Net Investment Income		1.43	%⁽⁴⁾⁽⁹⁾		1.07	%⁽⁴⁾		1.54	%⁽⁴⁾		1.64	%⁽⁴⁾		1.32	%⁽⁴⁾		1.07	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		77	%⁽⁸⁾		51	%		24	%	��	38	%		39	%		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 L shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.85% for Class L shares. Prior to July 1,2018, the maximum ratio was 1.90% for Class L shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Real Estate Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.01		$	9.56		$	8.92		$	10.83		$	10.49		$	10.56
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.06			0.08			0.13			0.16			0.12			0.08
Net Realized and Unrealized Gain (Loss)		1.15			(1.54	)		1.37			(1.09	)		0.78			0.16
Total from Investment Operations		1.21			(1.46	)		1.50			(0.93	)		0.90			0.24
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.41	)		(0.39	)		(0.03	)		(0.25	)
Net Realized Gain		—			(0.08	)		(0.45	)		(0.59	)		(0.53	)		(0.04	)
Paid-in-Capital		—			—			—			—			—			(0.02	)
Total Distributions		—			(0.09	)		(0.86	)		(0.98	)		(0.56	)		(0.31	)
Net Asset Value, End of Period	$	9.22		$	8.01		$	9.56		$	8.92		$	10.83		$	10.49
Total Return⁽³⁾		15.11	%⁽⁸⁾		(15.26	)%		16.98	%		(8.93	)%		8.54	%		2.31	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	393		$	225		$	397		$	428		$	327		$	305
Ratio of Expenses Before Expense Limitation		2.60	%⁽⁹⁾		2.96	%		2.51	%		2.47	%		2.69	%		2.86	%
Ratio of Expenses After Expense Limitation		2.12	%^(4)(6)(9)		2.11	%⁽⁴⁾⁽⁶⁾		2.10	%⁽⁴⁾		2.12	%⁽⁴⁾⁽⁵⁾		2.15	%⁽⁴⁾		2.15	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.10	%⁽⁴⁾⁽⁹⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾		2.12	%⁽⁴⁾		2.15	%⁽⁴⁾		N/A
Ratio of Net Investment Income		1.44	%⁽⁴⁾⁽⁹⁾		1.00	%⁽⁴⁾		1.26	%⁽⁴⁾		1.53	%⁽⁴⁾		1.11	%⁽⁴⁾		0.75	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		77	%⁽⁸⁾		51	%		24	%		38	%		39	%		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 C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to July 1, 2018, the maximum ratio was 2.15% for Class C shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Real Estate Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.25		$	9.87		$	9.19		$	11.13		$	10.76		$	10.81
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.08			0.17			0.25			0.28			0.25			0.22
Net Realized and Unrealized Gain (Loss)		1.23			(1.59	)		1.43			(1.11	)		0.81			0.15
Total from Investment Operations		1.31			(1.42	)		1.68			(0.83	)		1.06			0.37
Distributions from and/or in Excess of:
Net Investment Income		—			(0.12	)		(0.55	)		(0.52	)		(0.16	)		(0.36	)
Net Realized Gain		—			(0.08	)		(0.45	)		(0.59	)		(0.53	)		(0.04	)
Paid-in-Capital		—			—			—			—			—			(0.02	)
Total Distributions		—			(0.20	)		(1.00	)		(1.11	)		(0.69	)		(0.42	)
Net Asset Value, End of Period	$	9.56		$	8.25		$	9.87		$	9.19		$	11.13		$	10.76
Total Return⁽³⁾		15.88	%⁽⁸⁾		(14.36	)%		18.43	%		(7.83	)%		9.80	%		3.45	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	29,679		$	218,100		$	350,363		$	517,658		$	1,049,646		$	1,255,498
Ratio of Expenses Before Expense Limitation		1.07	%⁽⁹⁾		1.01	%		0.94	%		N/A			N/A			0.97	%
Ratio of Expenses After Expense Limitation		0.95	%^(4)(6)(9)		0.95	%⁽⁴⁾⁽⁶⁾		0.94	%⁽⁴⁾		0.95	%⁽⁴⁾⁽⁵⁾		0.97	%⁽⁴⁾		0.96	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.94	%⁽⁴⁾⁽⁹⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.95	%⁽⁴⁾		0.97	%⁽⁴⁾		N/A
Ratio of Net Investment Income		1.91	%⁽⁴⁾⁽⁹⁾		2.21	%⁽⁴⁾		2.41	%⁽⁴⁾		2.58	%⁽⁴⁾		2.26	%⁽⁴⁾		2.01	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		77	%⁽⁸⁾		51	%		24	%		38	%		39	%		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 IS shares. The Ratio of Expenses After Expense Limitation would have been 0.01% higher and the Ratio of Net Investment Income would have been 0.01% 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.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class IS shares. Prior to July 1, 2018, the maximum ratio was 0.99% for Class IS shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Real Estate Portfolio

	Class IR
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	8.25		$	9.87		$	9.19		$	11.09
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.10			0.18			0.25			0.23
Net Realized and Unrealized Gain (Loss)		1.21			(1.60	)		1.43			(1.02	)
Total from Investment Operations		1.31			(1.42	)		1.68			(0.79	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.12	)		(0.55	)		(0.52	)
Net Realized Gain		—			(0.08	)		(0.45	)		(0.59	)
Total Distributions		—			(0.20	)		(1.00	)		(1.11	)
Net Asset Value, End of Period	$	9.56		$	8.25		$	9.87		$	9.19
Total Return⁽³⁾		15.88	%⁽⁸⁾		(14.36	)%		18.44	%		(7.49	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	10		$	8		$	10		$	8
Ratio of Expenses Before Expense Limitation		20.25	%⁽⁹⁾		26.07	%		21.38	%		18.72	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.96	%^(4)(6)(9)		0.95	%⁽⁴⁾⁽⁶⁾		0.94	%⁽⁴⁾		0.94	%^(4)(5)(9)
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		0.94	%⁽⁴⁾⁽⁹⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		N/A
Ratio of Net Investment Income		2.36	%⁽⁴⁾⁽⁹⁾		2.37	%⁽⁴⁾		2.45	%⁽⁴⁾		3.94	%⁽⁴⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		77	%⁽⁸⁾		51	%		24	%		38	%

(1) Commencement of Offering.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class IR shares. Prior to July 1, 2018, the maximum ratio was 0.99% for Class IR shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 has capital subscription commitments to an investee company for this same purpose, the details of which are disclosed in the Unfunded Commitments note.

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 circumstances under which the Adviser or 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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 real estate investment trusts ("REITs"). The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement"

("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Diversified	$	22,041	$	—	$	—	$	22,041
Health Care		11,197		—		—		11,197
Industrial		10,561		—		129		10,690
Industrial/Office Mixed		863		—		—		863
Lodging/Resorts		3,328		—		—		3,328
Office		11,479		—		—		11,479
Residential		15,350		—		18		15,368
Retail		15,114		—		—		15,114
Self Storage		5,992		—		—		5,992
Specialty		2,544		—		—		2,544
Total Common Stocks		98,469		—		147		98,616
Short-Term Investments
Investment Company		1,698		—		—		1,698
Repurchase Agreements		—		180		—		180
Total Short-Term Investments		1,698		180		—		1,878
Total Assets	$	100,167	$	180	$	147	$	100,494

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	$	144
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		3
Realized gains (losses)		—
Ending Balance	$	147
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	3

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

Common Stocks

147

Reported Capital balance,
adjustments for NAV practical
expedient; including adjustments
for subsequent Capital Calls,
Return of Capital and Significant
Market Changes between
last Capital Statement
and Valuation Date

Adjusted Capital Balance

Market Transaction Method

Transaction Valuation

0.001

Increase

* Amount is indicative of the weighted average.

equal to the amount of the repurchase transaction, including principal and accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to determine that the value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and,

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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, 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.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	2,096	(a)	$	—	$	(2,096	)(b)(c)	$	0

(a) Represents market value of loaned securities at period end.

(b) The Fund received cash collateral of approximately $1,221,000, of which approximately $1,187,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $34,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $1,000,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

FASB ASC 860, "Transfers & Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", is intended to provide increased transparency about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining

contractual maturity of those transactions as of June 30, 2021:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	1,221	$	—	$	—	$	—	$	1,221
Total Borrowings	$	1,221	$	—	$	—	$	—	$	1,221
Gross amount of recognized liabilities for securities lending transactions									$	1,221

6. Unfunded Commitments: Subject to the terms of a Subscription Agreement between the Fund and Exeter Industrial Value Fund LP, the Fund has made a subscription commitment of $2,000,000 for which it will receive 2,000,000 shares of common stock. As of June 30, 2021, Exeter Industrial Value Fund LP has drawn down approximately $1,860,000, which represents 93.0% of the commitment.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

9. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

10. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

The Fund owns shares of REITs which report information on the source of their distributions annually in the following calendar year. A portion of distributions received from REITs during the year is estimated to be a return of capital and is recorded as a reduction of their cost.

First $2 billion				Over $2 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.68% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares, 0.94% for Class IS shares and 0.94% for Class IR shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time that the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $125,000 of advisory fees were waived and approximately $13,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $162,801,000 and $396,514,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	5,325			$	32,083			$	35,710			$	—	@

Affiliated
Investment
Company (cont'd)

Realized
Gain (Loss)
(000)

Change in
Unrealized
Appreciation
(Depreciation)
(000)

Value
June 30,
2021
(000)

Liquidity Funds

—

1,698

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	4,300	$	3,129	$	37,385	$	26,549

Permanent differences, primarily due to an adjustment to prior period equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	2			$	(2	)

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	9,196			$	—

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $3,772,000 and $22,797,000, respectively, that do not have an expiration date.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-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

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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIGRESAN
3689482 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Global Sustain Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					10
Notes to Financial Statements					15
Investment Advisory Agreement Approval					21
Liquidity Risk Management Program					23
U.S. Customer Privacy Notice					24
Director and Officer Information					27

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Global Sustain Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Global Sustain Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Sustain Portfolio Class I	$	1,000.00	$	1,086.90	$	1,020.33	$	4.66	$	4.51		0.90	%
Global Sustain Portfolio Class A		1,000.00		1,085.40		1,018.89		6.15		5.96		1.19
Global Sustain Portfolio Class L		1,000.00		1,082.30		1,016.12		9.04		8.75		1.75
Global Sustain Portfolio Class C		1,000.00		1,081.60		1,015.12		10.06		9.74		1.95
Global Sustain Portfolio Class IS		1,000.00		1,087.50		1,020.58		4.40		4.26		0.85

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Global Sustain Portfolio

	Shares		Value (000)
Common Stocks (97.6%)
Canada (3.2%)
Constellation Software, Inc.		1,736	$	2,629
France (1.6%)
L'Oreal SA (BSRM)		2,829		1,261
Germany (10.6%)
Deutsche Boerse AG		5,287		923
Henkel AG & Co., KGaA (Preference)		32,701		3,452
SAP SE		30,211		4,257
				8,632
Hong Kong (1.7%)
AIA Group Ltd.		111,600		1,387
Taiwan (2.6%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		17,567		2,111
United Kingdom (9.1%)
Experian PLC		14,342		553
Prudential PLC		59,987		1,140
Reckitt Benckiser Group PLC		50,745		4,490
RELX PLC (LSE)		43,800		1,163
				7,346
United States (68.8%)
Abbott Laboratories		26,076		3,023
Accenture PLC, Class A		11,779		3,472
Alphabet, Inc., Class A (a)		1,125		2,747
Amphenol Corp., Class A		19,408		1,328
Automatic Data Processing, Inc.		14,602		2,900
Baxter International, Inc.		39,212		3,157
Becton Dickinson & Co.		12,947		3,149
Cerner Corp.		18,035		1,410
Coca-Cola Co. (The)		14,336		776
Danaher Corp.		11,257		3,021
Estee Lauder Cos., Inc. (The), Class A		2,473		787
Factset Research Systems, Inc.		1,107		371
Fidelity National Information Services, Inc.		11,123		1,576
Intercontinental Exchange, Inc.		15,985		1,897
Medtronic PLC		24,245		3,009
Microsoft Corp.		23,289		6,309
Moody's Corp.		1,388		503
NIKE, Inc., Class B		5,549		857
Procter & Gamble Co. (The)		19,693		2,657
Roper Technologies, Inc.		3,594		1,690
Stanley Black & Decker, Inc.		8,203		1,681
Texas Instruments, Inc.		6,760		1,300
Thermo Fisher Scientific, Inc.		5,457		2,753
Visa, Inc., Class A		19,096		4,465
Zoetis, Inc.		4,834		901
				55,739
Total Common Stocks (Cost $63,049)				79,105

	Shares		Value (000)
Short-Term Investment (2.5%)
Investment Company (2.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $2,002)		2,002,383	$	2,002
Total Investments (100.1%) (Cost $65,051) (b)				81,107
Liabilities in Excess of Other Assets (–0.1%)				(69	)
Net Assets (100.0%)			$	81,038

(a) Non-income producing security.

(b) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for the book purposes. The aggregate gross unrealized appreciation is approximately $16,124,000 and the aggregate gross unrealized depreciation is approximately $68,000, resulting in net unrealized appreciation of approximately $16,056,000.

ADR American Depositary Receipt.

LSE London Stock Exchange.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		36.4	%
Health Care Equipment & Supplies		18.9
Software		16.3
Information Technology Services		15.3
Household Products		13.1
Total Investments		100.0	%

* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Sustain Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $63,049)	$	79,105
Investment in Security of Affiliated Issuer, at Value (Cost $2,002)		2,002
Total Investments in Securities, at Value (Cost $65,051)		81,107
Foreign Currency, at Value (Cost $1)		1
Receivable for Fund Shares Sold		75
Receivable for Investments Sold		72
Dividends Receivable		70
Tax Reclaim Receivable		38
Receivable from Affiliate		—	@
Other Assets		56
Total Assets		81,419
Liabilities:
Payable for Investments Purchased		140
Payable for Fund Shares Redeemed		95
Payable for Advisory Fees		84
Payable for Professional Fees		38
Payable for Custodian Fees		8
Payable for Shareholder Services Fees — Class A		2
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		4
Payable for Administration Fees		5
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Other Liabilities		4
Total Liabilities		381
Net Assets	$	81,038
Net Assets Consist of:
Paid-in-Capital	$	64,027
Total Distributable Earnings		17,011
Net Assets	$	81,038

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Sustain Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	53,556
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,972,971
Net Asset Value, Offering and Redemption Price Per Share	$	18.01
CLASS A:
Net Assets	$	8,080
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		450,782
Net Asset Value, Redemption Price Per Share	$	17.92
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.99
Maximum Offering Price Per Share	$	18.91
CLASS L:
Net Assets	$	1,564
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		88,726
Net Asset Value, Offering and Redemption Price Per Share	$	17.62
CLASS C:
Net Assets	$	4,488
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		260,373
Net Asset Value, Offering and Redemption Price Per Share	$	17.24
CLASS IS:
Net Assets	$	13,350
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		740,976
Net Asset Value, Offering and Redemption Price Per Share	$	18.02

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Global Sustain Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $28 of Foreign Taxes Withheld)	$	661
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		661
Expenses:
Advisory Fees (Note B)		239
Professional Fees		56
Shareholder Services Fees — Class A (Note D)		8
Distribution and Shareholder Services Fees — Class L (Note D)		6
Distribution and Shareholder Services Fees — Class C (Note D)		21
Administration Fees (Note C)		27
Registration Fees		25
Sub Transfer Agency Fees — Class I		14
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		1
Custodian Fees (Note F)		12
Shareholder Reporting Fees		7
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		3
Pricing Fees		1
Other Expenses		6
Total Expenses		433
Waiver of Advisory Fees (Note B)		(85	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(4	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		342
Net Investment Income		319
Realized Gain:
Investments Sold		738
Foreign Currency Translation		8
Net Realized Gain		746
Change in Unrealized Appreciation (Depreciation):
Investments		4,737
Foreign Currency Translation		(1	)
Net Change in Unrealized Appreciation (Depreciation)		4,736
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		5,482
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.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Sustain Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	319		$	153
Net Realized Gain		746			1,121
Net Change in Unrealized Appreciation (Depreciation)		4,736			5,686
Net Increase in Net Assets Resulting from Operations		5,801			6,960
Dividends and Distributions to Shareholders:
Class I		—			(849	)
Class A		—			(94	)
Class L		—			(32	)
Class C		—			(81	)
Class IS		—			(234	)
Total Dividends and Distributions to Shareholders		—			(1,290	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		18,690			22,492
Distributions Reinvested		—			849
Redeemed		(2,913	)		(7,634	)
Class A:
Subscribed		3,140			2,257
Distributions Reinvested		—			94
Redeemed		(464	)		(857	)
Class L:
Exchanged		91			34
Distributions Reinvested		—			32
Redeemed		(94	)		(220	)
Class C:
Subscribed		1,016			776
Distributions Reinvested		—			81
Redeemed		(462	)		(540	)
Class IS:
Subscribed		3,000			501
Distributions Reinvested		—			234
Redeemed		(—	@)		(—	@)
Net Increase in Net Assets Resulting from Capital Share Transactions		22,004			18,099
Total Increase in Net Assets		27,805			23,769
Net Assets:
Beginning of Period		53,233			29,464
End of Period	$	81,038		$	53,233

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Global Sustain Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,088			1,528
Shares Issued on Distributions Reinvested		—			52
Shares Redeemed		(169	)		(532	)
Net Increase in Class I Shares Outstanding		919			1,048
Class A:
Shares Subscribed		185			148
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(27	)		(63	)
Net Increase in Class A Shares Outstanding		158			91
Class L:
Shares Exchanged		5			2
Shares Issued on Distributions Reinvested		—			2
Shares Redeemed		(5	)		(15	)
Net Increase (Decrease) in Class L Shares Outstanding		—	@@		(11	)
Class C:
Shares Subscribed		62			54
Shares Issued on Distributions Reinvested		—			5
Shares Redeemed		(27	)		(36	)
Net Increase in Class C Shares Outstanding		35			23
Class IS:
Shares Subscribed		179			40
Shares Issued on Distributions Reinvested		—			14
Shares Redeemed		(—	@@)		(—	@@)
Net Increase in Class IS Shares Outstanding		179			54

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Sustain Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	16.57		$	14.66		$	11.58		$	12.47		$	10.81		$	11.43
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.09			0.08			0.09			0.12			0.13			0.17
Net Realized and Unrealized Gain (Loss)		1.35			2.25			3.38			(0.04	)		2.35			0.29
Total from Investment Operations		1.44			2.33			3.47			0.08			2.48			0.46
Distributions from and/or in Excess of:
Net Investment Income		—			(0.06	)		(0.08	)		(0.07	)		(0.13	)		(0.20	)
Net Realized Gain		—			(0.36	)		(0.31	)		(0.90	)		(0.69	)		(0.88	)
Total Distributions		—			(0.42	)		(0.39	)		(0.97	)		(0.82	)		(1.08	)
Net Asset Value, End of Period	$	18.01		$	16.57		$	14.66		$	11.58		$	12.47		$	10.81
Total Return⁽³⁾		8.69	%⁽⁷⁾		15.96	%		30.03	%		0.60	%		22.86	%		4.20	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	53,556		$	34,042		$	14,756		$	5,891		$	5,334		$	3,993
Ratio of Expenses Before Expense Limitation		1.17	%⁽⁸⁾		1.45	%		1.92	%		2.86	%		3.54	%		2.45	%
Ratio of Expenses After Expense Limitation		0.90	%⁽⁴⁾⁽⁸⁾		0.90	%⁽⁴⁾		0.90	%⁽⁴⁾		0.93	%⁽⁴⁾⁽⁵⁾		1.00	%⁽⁴⁾		0.99	%⁽⁴⁾
Ratio of Net Investment Income		1.04	%⁽⁴⁾⁽⁸⁾		0.52	%⁽⁴⁾		0.68	%⁽⁴⁾		0.97	%⁽⁴⁾		1.10	%⁽⁴⁾		1.46	%⁽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		8	%⁽⁷⁾		20	%		14	%		76	%		39	%		35	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.90% for Class I shares. Prior to April 30, 2018, the maximum ratio was 1.00% for Class I shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Sustain Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	16.51		$	14.62		$	11.56		$	12.44		$	10.79		$	11.40
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.06			0.03			0.05			0.07			0.08			0.11
Net Realized and Unrealized Gain (Loss)		1.35			2.23			3.36			(0.03	)		2.35			0.32
Total from Investment Operations		1.41			2.26			3.41			0.04			2.43			0.43
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.04	)		(0.02	)		(0.09	)		(0.16	)
Net Realized Gain		—			(0.36	)		(0.31	)		(0.90	)		(0.69	)		(0.88	)
Total Distributions		—			(0.37	)		(0.35	)		(0.92	)		(0.78	)		(1.04	)
Net Asset Value, End of Period	$	17.92		$	16.51		$	14.62		$	11.56		$	12.44		$	10.79
Total Return⁽³⁾		8.54	%⁽⁷⁾		15.53	%		29.53	%		0.26	%		22.45	%		3.83	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8,080		$	4,839		$	2,949		$	1,872		$	2,243		$	2,182
Ratio of Expenses Before Expense Limitation		1.44	%⁽⁸⁾		1.76	%		2.25	%		3.21	%		3.90	%		2.85	%
Ratio of Expenses After Expense Limitation		1.19	%⁽⁴⁾⁽⁸⁾		1.24	%⁽⁴⁾		1.25	%⁽⁴⁾		1.28	%⁽⁴⁾⁽⁵⁾		1.35	%⁽⁴⁾		1.33	%⁽⁴⁾
Ratio of Net Investment Income		0.73	%⁽⁴⁾⁽⁸⁾		0.17	%⁽⁴⁾		0.35	%⁽⁴⁾		0.57	%⁽⁴⁾		0.66	%⁽⁴⁾		0.98	%⁽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		8	%⁽⁷⁾		20	%		14	%		76	%		39	%		35	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(5) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class A shares. Prior to April 30, 2018, the maximum ratio was 1.35% for Class A shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Sustain Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	16.28		$	14.48		$	11.47		$	12.41		$	10.76		$	11.37
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.01			(0.05	)		(0.01	)		0.01			0.03			0.06
Net Realized and Unrealized Gain (Loss)		1.33			2.21			3.33			(0.04	)		2.32			0.31
Total from Investment Operations		1.34			2.16			3.32			(0.03	)		2.35			0.37
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.01	)		(0.01	)		(0.10	)
Net Realized Gain		—			(0.36	)		(0.31	)		(0.90	)		(0.69	)		(0.88	)
Total Distributions		—			(0.36	)		(0.31	)		(0.91	)		(0.70	)		(0.98	)
Net Asset Value, End of Period	$	17.62		$	16.28		$	14.48		$	11.47		$	12.41		$	10.76
Total Return⁽³⁾		8.23	%⁽⁷⁾		14.97	%		28.87	%		(0.25	)%		21.80	%		3.31	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,564		$	1,441		$	1,437		$	1,365		$	1,611		$	2,194
Ratio of Expenses Before Expense Limitation		2.02	%⁽⁸⁾		2.32	%		2.77	%		3.73	%		4.39	%		3.35	%
Ratio of Expenses After Expense Limitation		1.75	%⁽⁴⁾⁽⁸⁾		1.75	%⁽⁴⁾		1.75	%⁽⁴⁾		1.78	%⁽⁴⁾⁽⁵⁾		1.85	%⁽⁴⁾		1.81	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		0.18	%⁽⁴⁾⁽⁸⁾		(0.33	)%⁽⁴⁾		(0.09	)%⁽⁴⁾		0.04	%⁽⁴⁾		0.24	%⁽⁴⁾		0.52	%⁽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		8	%⁽⁷⁾		20	%		14	%		76	%		39	%		35	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class L shares. Prior to April 30, 2018, the maximum ratio was 1.85% for Class L shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Sustain Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	15.94		$	14.22		$	11.30		$	12.26		$	10.67		$	11.30
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.00	)⁽³⁾		(0.08	)		(0.05	)		(0.03	)		(0.01	)		0.02
Net Realized and Unrealized Gain (Loss)		1.30			2.16			3.28			(0.02	)		2.30			0.32
Total from Investment Operations		1.30			2.08			3.23			(0.05	)		2.29			0.34
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.01	)		(0.01	)		(0.09	)
Net Realized Gain		—			(0.36	)		(0.31	)		(0.90	)		(0.69	)		(0.88	)
Total Distributions		—			(0.36	)		(0.31	)		(0.91	)		(0.70	)		(0.97	)
Net Asset Value, End of Period	$	17.24		$	15.94		$	14.22		$	11.30		$	12.26		$	10.67
Total Return⁽⁴⁾		8.16	%⁽⁸⁾		14.68	%		28.63	%		(0.50	)%		21.46	%		3.06	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,488		$	3,594		$	2,872		$	1,846		$	1,430		$	819
Ratio of Expenses Before Expense Limitation		2.21	%⁽⁹⁾		2.51	%		2.97	%		4.00	%		4.71	%		3.83	%
Ratio of Expenses After Expense Limitation		1.95	%⁽⁵⁾⁽⁹⁾		1.99	%⁽⁵⁾		1.98	%⁽⁵⁾		2.02	%⁽⁵⁾⁽⁶⁾		2.10	%⁽⁵⁾		2.10	%⁽⁵⁾
Ratio of Net Investment Income (Loss)		(0.02	)%⁽⁵⁾⁽⁹⁾		(0.56	)%⁽⁵⁾		(0.38	)%⁽⁵⁾		(0.24	)%⁽⁵⁾		(0.06	)%⁽⁵⁾		0.17	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		8	%⁽⁸⁾		20	%		14	%		76	%		39	%		35	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.00% for Class C shares. Prior to April 30, 2018, the maximum ratio was 2.10% for Class C shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Global Sustain Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	16.57		$	14.66		$	11.58		$	12.47		$	10.81		$	11.43
Income from Investment Operations:
Net Investment Income⁽²⁾		0.09			0.09			0.11			0.05			0.14			0.16
Net Realized and Unrealized Gain		1.36			2.25			3.37			0.04			2.34			0.31
Total from Investment Operations		1.45			2.34			3.48			0.09			2.48			0.47
Distributions from and/or in Excess of:
Net Investment Income		—			(0.07	)		(0.09	)		(0.08	)		(0.13	)		(0.21	)
Net Realized Gain		—			(0.36	)		(0.31	)		(0.90	)		(0.69	)		(0.88	)
Total Distributions		—			(0.43	)		(0.40	)		(0.98	)		(0.82	)		(1.09	)
Net Asset Value, End of Period	$	18.02		$	16.57		$	14.66		$	11.58		$	12.47		$	10.81
Total Return⁽³⁾		8.75	%⁽⁷⁾		16.00	%		30.08	%		0.66	%		22.91	%		4.17	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,350		$	9,317		$	7,450		$	4,847		$	12		$	11
Ratio of Expenses Before Expense Limitation		1.12	%⁽⁸⁾		1.41	%		1.88	%		3.12	%		19.10	%		19.36	%
Ratio of Expenses After Expense Limitation		0.85	%⁽⁴⁾⁽⁸⁾		0.85	%⁽⁴⁾		0.85	%⁽⁴⁾		0.85	%⁽⁴⁾⁽⁵⁾		0.95	%⁽⁴⁾		0.95	%⁽⁴⁾
Ratio of Net Investment Income		1.08	%⁽⁴⁾⁽⁸⁾		0.58	%⁽⁴⁾		0.79	%⁽⁴⁾		0.41	%⁽⁴⁾		1.15	%⁽⁴⁾		1.35	%⁽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		8	%⁽⁷⁾		20	%		14	%		76	%		39	%		35	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.85% for Class IS shares. Prior to April 30, 2018, the maximum ratio was 0.95% for Class IS shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Sustain Portfolio. The Fund seeks long-term capital appreciation.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Beverages	$	776	$	—	$	—	$	776
Capital Markets		3,694		—		—		3,694
Electronic Equipment, Instruments & Components		1,328		—		—		1,328
Health Care Equipment & Supplies		15,359		—		—		15,359
Health Care Technology		1,410		—		—		1,410
Household Products		10,599		—		—		10,599

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Industrial Conglomerates	$	1,690	$	—	$	—	$	1,690
Information Technology Services		12,413		—		—		12,413
Insurance		2,527		—		—		2,527
Interactive Media & Services		2,747		—		—		2,747
Life Sciences Tools & Services		2,753		—		—		2,753
Machinery		1,681		—		—		1,681
Personal Products		2,048		—		—		2,048
Pharmaceuticals		901		—		—		901
Professional Services		1,716		—		—		1,716
Semiconductors & Semiconductor Equipment		3,411		—		—		3,411
Software		13,195		—		—		13,195
Textiles, Apparel & Luxury Goods		857		—		—		857
Total Common Stocks		79,105		—		—		79,105
Short-Term Investment
Investment Company		2,002		—		—		2,002
Total Assets	$	81,107	$	—	$	—	$	81,107

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.

realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

or losses pursuant to these contracts and expects the risk of loss to be remote.

First $500 million				Over $500 million
	0.70	%			0.65	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.45% of the Fund's average daily net assets.

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, 2021, approximately $85,000 of advisory fees were waived and approximately $5,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $26,821,000 and $5,091,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,423			$	22,338			$	21,759			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	2,002

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2020, remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	161	$	1,129	$	294	$	445

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	—			$	147

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIGQSAN
3689448 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Growth Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					7
Consolidated Statement of Operations					9
Consolidated Statements of Changes in Net Assets					10
Consolidated Financial Highlights					12
Notes to Consolidated Financial Statements					18
Investment Advisory Agreement Approval					30
Liquidity Risk Management Program					32
U.S. Customer Privacy Notice					33
Director and Officer Information					36

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Growth Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Growth Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		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	$	1,130.00	$	1,022.17	$	2.80	$	2.66		0.53	%
Growth Portfolio Class A		1,000.00		1,128.60		1,020.88		4.17		3.96		0.79
Growth Portfolio Class L		1,000.00		1,125.90		1,018.50		6.69		6.36		1.27
Growth Portfolio Class C		1,000.00		1,124.50		1,017.26		8.01		7.60		1.52
Growth Portfolio Class IS		1,000.00		1,130.40		1,022.51		2.43		2.31		0.46
Growth Portfolio Class IR		1,000.00		1,130.40		1,022.51		2.43		2.31		0.46

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Growth Portfolio

	Shares		Value (000)
Common Stocks (96.5%)
Biotechnology (2.2%)
Alnylam Pharmaceuticals, Inc. (a)		417,835	$	70,831
Moderna, Inc. (a)		1,442,747		339,017
				409,848
Entertainment (7.7%)
ROBLOX Corp., Class A (a)		5,358,356		482,145
Sea Ltd. ADR (Singapore) (a)		1,017,290		279,348
Spotify Technology SA (a)		2,606,380		718,292
				1,479,785
Health Care Equipment & Supplies (3.1%)
DexCom, Inc. (a)		735,534		314,073
Intuitive Surgical, Inc. (a)		304,696		280,211
				594,284
Health Care Providers & Services (0.7%)
Guardant Health, Inc. (a)		1,124,569		139,660
Health Care Technology (5.1%)
Agilon Health Topco, Inc. (a)(b)		6,618,800		256,441
Veeva Systems, Inc., Class A (a)		2,331,726		725,050
				981,491
Hotels, Restaurants & Leisure (0.5%)
Airbnb, Inc., Class A (a)		624,224		95,594
Information Technology Services (24.8%)
Adyen N.V. (Netherlands) (a)		110,799		270,708
Fastly, Inc., Class A (a)		1,776,664		105,889
MongoDB, Inc. (a)		828,148		299,392
Okta, Inc. (a)		2,056,298		503,135
Shopify, Inc., Class A (Canada) (a)		806,538		1,178,335
Snowflake, Inc., Class A (a)		2,814,406		680,523
Square, Inc., Class A (a)		3,991,714		973,180
Twilio, Inc., Class A (a)		1,867,857		736,235
				4,747,397
Interactive Media & Services (15.4%)
Pinterest, Inc., Class A (a)		6,702,135		529,133
Snap, Inc., Class A (a)		14,363,879		978,755
Twitter, Inc. (a)		14,284,459		982,913
Zillow Group, Inc., Class C (a)		3,701,699		452,422
				2,943,223
Internet & Direct Marketing Retail (5.7%)
Amazon.com, Inc. (a)		78,483		269,994
Chewy, Inc., Class A (a)		439,324		35,018
DoorDash, Inc., Class A (a)		1,909,772		340,570
Wayfair, Inc., Class A (a)		1,410,971		445,458
				1,091,040	��
Life Sciences Tools & Services (2.0%)
10X Genomics, Inc., Class A (a)		978,190		191,549
Illumina, Inc. (a)		416,185		196,943
				388,492
Metals & Mining (0.3%)
Royal Gold, Inc.		439,397		50,135

	Shares		Value (000)
Pharmaceuticals (2.0%)
Royalty Pharma PLC, Class A		9,521,771	$	390,297
Road & Rail (2.4%)
Uber Technologies, Inc. (a)		9,256,580		463,940
Semiconductors & Semiconductor Equipment (2.6%)
NVIDIA Corp.		628,456		502,828
Software (19.1%)
Cloudflare, Inc., Class A (a)		7,963,198		842,825
Coupa Software, Inc. (a)		1,262,290		330,859
Crowdstrike Holdings, Inc., Class A (a)		1,170,349		294,120
Datadog, Inc., Class A (a)		3,185,166		331,512
DocuSign, Inc. (a)		1,050,784		293,768
Trade Desk, Inc. (The), Class A (a)		4,668,240		361,135
Unity Software, Inc. (a)		2,628,368		288,674
Zoom Video Communications, Inc., Class A (a)		2,374,692		919,077
				3,661,970
Specialty Retail (2.9%)
Carvana Co. (a)		1,818,070		548,730
Total Common Stocks (Cost $9,615,854)				18,488,714
Investment Company (0.3%)
Grayscale Bitcoin Trust (a) (Cost $107,014)		2,130,153		63,500
Preferred Stock (0.0%) (c)
Electronic Equipment, Instruments & Components (0.0%) (c)
Magic Leap Series C (a)(d)(e) (acquisition cost — $18,812; acquired 12/22/15) (Cost $18,812)		816,725		—
Short-Term Investment (3.2%)
Investment Company (3.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $608,197)		608,196,955		608,197
Total Investments Excluding Purchased Options (100.0%) (Cost $10,349,877)				19,160,411
Total Purchased Options Outstanding (0.0%) (c) (Cost $74,111)				4,214
Total Investments (100.0%) (Cost $10,423,988) (f)(g)				19,164,625
Liabilities in Excess of Other Assets (0.0%) (c)				(4,872	)
Net Assets (100.0%)			$	19,159,753

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Growth Portfolio

The Fund had the following Derivative Contract — PIPE open at June 30, 2021:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Depreciation (000)				% of Net Assets
Soaring Eagle Acquisition Corp.				Ginkgo Bioworks, Inc. (a)(d)(e)(h)(i)				$	42,515,760			12/31/21				$	(6,098	)			(0.03	)%

(a) Non-income producing security.

(b) Security has been deemed by the investment manager to be illiquid and is subject to restrictions on resale. At June 30, 2021, this security amounted to approximately $256,441,000, which represents 1.3% of net assets of the Fund.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted derivative contract (excluding 144A holdings) at June 30, 2021 amounts to approximately $(6,098,000) and represents less than (0.05)% of net assets.

(e) At June 30, 2021, the Fund held a fair valued derivative contract valued at approximately $(6,098,000), representing less than (0.05)% of net assets. This holding have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) Securities are available for collateral in connection with securities purchased on a forward commitment basis.

(g) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $9,024,626,000 and the aggregate gross unrealized depreciation is approximately $290,087,000, resulting in net unrealized appreciation of approximately $8,734,539,000.

(h) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 4,251,576 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination Ginkgo Bioworks, Inc., and Soaring Eagle Acquisition Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Soaring Eagle Acquisition Corp., and Ginkgo Bioworks, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Soaring Eagle Acquisition Corp., and Ginkgo Bioworks, Inc. The investment is restricted from resale until the settlement date.

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Growth Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
BNP Paribas	USD/CNH	CNH	7.99	Sep-21		2,209,996,914		2,209,997	$	5	$	13,383	$	(13,378	)
BNP Paribas	USD/CNH	CNH	7.45	Jan-22		3,240,675,472		3,240,675		1,342		17,299		(15,957	)
BNP Paribas	USD/CNH	CNH	7.64	Nov-21		2,625,404,928		2,625,405		260		14,258		(13,998	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		3,297,576,823		3,297,577		2,605		16,379		(13,774	)
Royal Bank of Scotland	USD/CNH	CNH	8.06	Jul-21		2,411,798,894		2,411,799		2		12,792		(12,790	)
									$	4,214	$	74,111	$	(69,897	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Information Technology Services		24.8	%
Other*		22.2
Software		19.1
Interactive Media & Services		15.4
Entertainment		7.7
Internet & Direct Marketing Retail		5.7
Health Care Technology		5.1
Total Investments		100.0	%**

* Industries and/or investment types representing less than 5% of total investments.

** Does not include an open PIPE contract with total unrealized depreciation of approximately $6,098,000.

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Growth Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $9,815,791)	$	18,556,428
Investment in Security of Affiliated Issuer, at Value (Cost $608,197)		608,197
Total Investments in Securities, at Value (Cost $10,423,988)		19,164,625
Foreign Currency, at Value (Cost —@)		—	@
Receivable for Investments Sold		22,759
Receivable for Fund Shares Sold		15,509
Dividends Receivable		152
Receivable from Affiliate		5
Other Assets		2,037
Total Assets		19,205,087
Liabilities:
Payable for Advisory Fees		15,878
Payable for Fund Shares Redeemed		14,917
Due to Broker		4,705
Payable for Shareholder Services Fees — Class A		1,215
Payable for Distribution and Shareholder Services Fees — Class L		106
Payable for Distribution and Shareholder Services Fees — Class C		475
Payable for Administration Fees		1,179
Payable for Custodian Fees		103
Payable for Professional Fees		78
Payable for Organization Costs for Subsidiary		56
Payable for Transfer Agency Fees — Class I		18
Payable for Transfer Agency Fees — Class A		22
Payable for Transfer Agency Fees — Class L		2
Payable for Transfer Agency Fees — Class C		2
Payable for Transfer Agency Fees — Class IS		1
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Directors' Fees and Expenses		39
Payable for Sub Transfer Agency Fees — Class L		8
Unrealized Depreciation on Derivative Contract — PIPE		6,098
Other Liabilities		432
Total Liabilities		45,334
Net Assets	$	19,159,753
Net Assets Consist of:
Paid-in-Capital	$	8,026,653
Total Distributable Earnings		11,133,100
Net Assets	$	19,159,753

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Growth Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	7,601,681
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		73,542,008
Net Asset Value, Offering and Redemption Price Per Share	$	103.37
CLASS A:
Net Assets	$	6,319,096
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		65,634,141
Net Asset Value, Redemption Price Per Share	$	96.28
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	5.33
Maximum Offering Price Per Share	$	101.61
CLASS L:
Net Assets	$	182,665
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,057,494
Net Asset Value, Offering and Redemption Price Per Share	$	88.78
CLASS C:
Net Assets	$	617,417
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		7,085,984
Net Asset Value, Offering and Redemption Price Per Share	$	87.13
CLASS IS:
Net Assets	$	4,112,826
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		39,368,142
Net Asset Value, Offering and Redemption Price Per Share	$	104.47
CLASS IR:
Net Assets	$	326,068
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,121,416
Net Asset Value, Offering and Redemption Price Per Share	$	104.46

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Growth Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	4,089
Income from Securities Loaned — Net		183
Dividends from Security of Affiliated Issuer (Note G)		39
Total Investment Income		4,311
Expenses:
Advisory Fees (Note B)		32,251
Shareholder Services Fees — Class A (Note D)		7,211
Distribution and Shareholder Services Fees — Class L (Note D)		647
Distribution and Shareholder Services Fees — Class C (Note D)		2,753
Administration Fees (Note C)		7,032
Sub Transfer Agency Fees — Class I		2,505
Sub Transfer Agency Fees — Class A		2,238
Sub Transfer Agency Fees — Class L		46
Sub Transfer Agency Fees — Class C		173
Registration Fees		427
Transfer Agency Fees — Class I (Note E)		56
Transfer Agency Fees — Class A (Note E)		79
Transfer Agency Fees — Class L (Note E)		7
Transfer Agency Fees — Class C (Note E)		9
Transfer Agency Fees — Class IS (Note E)		4
Transfer Agency Fees — Class IR (Note E)		1
Custodian Fees (Note F)		140
Shareholder Reporting Fees		136
Directors' Fees and Expenses		99
Organization Costs for Subsidiary		56
Professional Fees		53
Pricing Fees		2
Other Expenses		128
Total Expenses		56,053
Rebate from Morgan Stanley Affiliate (Note G)		(234	)
Net Expenses		55,819
Net Investment Loss		(51,508	)
Realized Gain (Loss):
Investments Sold		1,441,832
Foreign Currency Translation		(3	)
Net Realized Gain		1,441,829
Change in Unrealized Appreciation (Depreciation):
Investments		740,786
Foreign Currency Translation		(1	)
Derivative Contract — PIPE		(6,098	)
Net Change in Unrealized Appreciation (Depreciation)		734,687
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		2,176,516
Net Increase in Net Assets Resulting from Operations	$	2,125,008

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Growth Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(51,508	)	$	(70,702	)
Net Realized Gain		1,441,829			2,508,141
Net Change in Unrealized Appreciation (Depreciation)		734,687			6,284,985
Net Increase in Net Assets Resulting from Operations		2,125,008			8,722,424
Dividends and Distributions to Shareholders:
Class I		—			(587,891	)
Class A		—			(492,476	)
Class L		—			(17,295	)
Class C		—			(50,352	)
Class IS		—			(318,382	)
Class IR		—			(33,066	)
Total Dividends and Distributions to Shareholders		—			(1,499,462	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,634,233			3,068,441
Distributions Reinvested		—			494,117
Redeemed		(1,692,590	)		(2,048,941	)
Class A:
Subscribed		1,065,355			1,320,428
Distributions Reinvested		—	@		474,626
Redeemed		(900,105	)		(987,191	)
Class L:
Exchanged		21			149
Distributions Reinvested		—			16,955
Redeemed		(11,401	)		(18,219	)
Class C:
Subscribed		90,442			192,797
Distributions Reinvested		—			44,778
Redeemed		(52,592	)		(71,959	)
Class IS:
Subscribed		236,872			701,960
Distributions Reinvested		—			315,802
Redeemed		(334,903	)		(456,386	)
Class IR:
Subscribed		24,156			27,158
Distributions Reinvested		—			33,066
Redeemed		(128,416	)		(155,705	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(68,928	)		2,951,876
Total Increase in Net Assets		2,056,080			10,174,838
Net Assets:
Beginning of Period		17,103,673			6,928,835
End of Period	$	19,159,753		$	17,103,673

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Growth Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		17,180			45,741
Shares Issued on Distributions Reinvested		—			5,306
Shares Redeemed		(18,158	)		(29,210	)
Net Increase (Decrease) in Class I Shares Outstanding		(978	)		21,837
Class A:
Shares Subscribed		11,950			18,846
Shares Issued on Distributions Reinvested		—	@@		5,465
Shares Redeemed		(10,386	)		(15,307	)
Net Increase in Class A Shares Outstanding		1,564			9,004
Class L:
Shares Exchanged		1			2
Shares Issued on Distributions Reinvested		—			211
Shares Redeemed		(141	)		(297	)
Net Decrease in Class L Shares Outstanding		(140	)		(84	)
Class C:
Shares Subscribed		1,119			3,122
Shares Issued on Distributions Reinvested		—			567
Shares Redeemed		(669	)		(1,187	)
Net Increase in Class C Shares Outstanding		450			2,502
Class IS:
Shares Subscribed		2,450			10,266
Shares Issued on Distributions Reinvested		—			3,357
Shares Redeemed		(3,590	)		(6,504	)
Net Increase (Decrease) in Class IS Shares Outstanding		(1,140	)		7,119
Class IR:
Shares Subscribed		256			502
Shares Issued on Distributions Reinvested		—			352
Shares Redeemed		(1,355	)		(2,396	)
Net Decrease in Class IR Shares Outstanding		(1,099	)		(1,542	)

* Not consolidated.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Growth Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	91.47		$	46.33		$	41.75		$	41.65		$	35.19		$	40.44
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.23	)		(0.38	)		(0.19	)		(0.08	)		(0.11	)		0.01
Net Realized and Unrealized Gain (Loss)		12.13			54.08			9.73			3.50			15.39			(0.79	)
Total from Investment Operations		11.90			53.70			9.54			3.42			15.28			(0.78	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(8.56	)		(4.96	)		(3.32	)		(8.82	)		(4.47	)
Net Asset Value, End of Period	$	103.37		$	91.47		$	46.33		$	41.75		$	41.65		$	35.19
Total Return⁽⁴⁾		13.00	%⁽⁸⁾		115.57	%		23.16	%		7.66	%		43.83	%		(1.91	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,601,681		$	6,816,690		$	2,440,640		$	1,785,893		$	991,362		$	726,787
Ratio of Expenses Before Expense Limitation		N/A			N/A			0.59	%		N/A			N/A			0.63	%
Ratio of Expenses After Expense Limitation		0.53	%⁽⁵⁾⁽⁹⁾		0.54	%⁽⁵⁾		0.58	%⁽⁵⁾		0.58	%⁽⁵⁾		0.61	%⁽⁵⁾		0.63	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.58	%⁽⁵⁾		N/A			0.61	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(0.48	)%⁽⁵⁾⁽⁹⁾		(0.53	)%⁽⁵⁾		(0.38	)%⁽⁵⁾		(0.17	)%⁽⁵⁾		(0.25	)%⁽⁵⁾		0.02	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		29	%⁽⁸⁾		60	%		87	%		41	%		55	%		39	%

(1) Not consolidated.

(2) 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 less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Effective April 7, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.80% for Class I shares. Prior to April 7, 2016, the maximum ratio was 0.70% 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 consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Growth Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	85.31		$	43.57		$	39.61		$	39.77		$	33.97		$	39.31
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.32	)		(0.51	)		(0.30	)		(0.19	)		(0.22	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		11.29			50.81			9.22			3.35			14.84			(0.77	)
Total from Investment Operations		10.97			50.30			8.92			3.16			14.62			(0.87	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(8.56	)		(4.96	)		(3.32	)		(8.82	)		(4.47	)
Net Asset Value, End of Period	$	96.28		$	85.31		$	43.57		$	39.61		$	39.77		$	33.97
Total Return⁽⁴⁾		12.86	%⁽⁸⁾		115.09	%		22.81	%		7.39	%		43.45	%		(2.21	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,319,096		$	5,465,808		$	2,399,450		$	2,043,706		$	1,827,833		$	1,376,836
Ratio of Expenses Before Expense Limitation		N/A			N/A			0.84	%		N/A			N/A			0.92	%
Ratio of Expenses After Expense Limitation		0.79	%⁽⁵⁾⁽⁹⁾		0.79	%⁽⁵⁾		0.83	%⁽⁵⁾		0.84	%⁽⁵⁾		0.88	%⁽⁵⁾		0.92	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.83	%⁽⁵⁾		N/A			0.88	%⁽⁵⁾		N/A
Ratio of Net Investment Loss		(0.74	)%⁽⁵⁾⁽⁹⁾		(0.77	)%⁽⁵⁾		(0.64	)%⁽⁵⁾		(0.43	)%⁽⁵⁾		(0.52	)%⁽⁵⁾		(0.26	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		29	%⁽⁸⁾		60	%		87	%		41	%		55	%		39	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation would have been 0.005% higher and the Ratio of Net Investment Loss would have been 0.005% lower had the custodian not reimbursed the Fund.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Effective April 7, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.15% for Class A shares. Prior to April 7, 2016, the maximum ratio was 1.05% for Class A shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Growth Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	78.85		$	40.77		$	37.51		$	37.99		$	32.90		$	38.41
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.49	)		(0.76	)		(0.50	)		(0.39	)		(0.43	)		(0.29	)
Net Realized and Unrealized Gain (Loss)		10.42			47.40			8.72			3.23			14.34			(0.75	)
Total from Investment Operations		9.93			46.64			8.22			2.84			13.91			(1.04	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(8.56	)		(4.96	)		(3.32	)		(8.82	)		(4.47	)
Net Asset Value, End of Period	$	88.78		$	78.85		$	40.77		$	37.51		$	37.99		$	32.90
Total Return⁽⁴⁾		12.59	%⁽⁸⁾		114.01	%		22.22	%		6.89	%		42.69	%		(2.72	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	182,665		$	173,317		$	93,053		$	83,818		$	90,177		$	74,324
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.33	%		N/A			N/A			1.45	%
Ratio of Expenses After Expense Limitation		1.27	%⁽⁵⁾⁽⁹⁾		1.29	%⁽⁵⁾		1.32	%⁽⁵⁾		1.31	%⁽⁵⁾		1.42	%⁽⁵⁾		1.45	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.32	%⁽⁵⁾		N/A			1.42	%⁽⁵⁾		N/A
Ratio of Net Investment Loss		(1.22	)%⁽⁵⁾⁽⁹⁾		(1.27	)%⁽⁵⁾		(1.12	)%⁽⁵⁾		(0.90	)%⁽⁵⁾		(1.05	)%⁽⁵⁾		(0.79	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		29	%⁽⁸⁾		60	%		87	%		41	%		55	%		39	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Loss would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Effective April 7, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.65% for Class L shares. Prior to April 7, 2016, the maximum ratio was 1.55% for Class L shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Growth Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	77.49		$	40.23		$	37.17		$	37.76		$	32.81		$	38.40
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.58	)		(0.93	)		(0.61	)		(0.51	)		(0.51	)		(0.38	)
Net Realized and Unrealized Gain (Loss)		10.22			46.75			8.63			3.24			14.28			(0.74	)
Total from Investment Operations		9.64			45.82			8.02			2.73			13.77			(1.12	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(8.56	)		(4.96	)		(3.32	)		(8.82	)		(4.47	)
Net Asset Value, End of Period	$	87.13		$	77.49		$	40.23		$	37.17		$	37.76		$	32.81
Total Return⁽⁴⁾		12.45	%⁽⁸⁾		113.48	%		21.91	%		6.61	%		42.37	%		(2.93	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	617,417		$	514,190		$	166,303		$	92,431		$	37,524		$	16,613
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.59	%		N/A			N/A			1.70	%
Ratio of Expenses After Expense Limitation		1.52	%⁽⁵⁾⁽⁹⁾		1.53	%⁽⁵⁾		1.58	%⁽⁵⁾		1.57	%⁽⁵⁾		1.63	%⁽⁵⁾		1.70	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.58	%⁽⁵⁾		N/A			1.63	%		N/A
Ratio of Net Investment Loss		(1.47	)%⁽⁵⁾⁽⁹⁾		(1.51	)%⁽⁵⁾		(1.38	)%⁽⁵⁾		(1.17	)%⁽⁵⁾		(1.26	)%⁽⁵⁾		(1.04	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		29	%⁽⁸⁾		60	%		87	%		41	%		55	%		39	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Loss would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Effective April 7, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.90% for Class C shares. Prior to April 7, 2016, the maximum ratio was 1.80% for Class C shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Growth Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	92.42		$	46.73		$	42.04		$	41.89		$	35.32		$	40.54
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.19	)		(0.32	)		(0.15	)		(0.04	)		(0.07	)		0.05
Net Realized and Unrealized Gain (Loss)		12.24			54.57			9.80			3.51			15.46			(0.80	)
Total from Investment Operations		12.05			54.25			9.65			3.47			15.39			(0.75	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(8.56	)		(4.96	)		(3.32	)		(8.82	)		(4.47	)
Net Asset Value, End of Period	$	104.47		$	92.42		$	46.73		$	42.04		$	41.89		$	35.32
Total Return⁽⁴⁾		13.04	%⁽⁸⁾		115.76	%		23.26	%		7.74	%		43.98	%		(1.83	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,112,826		$	3,743,697		$	1,560,148		$	1,202,659		$	1,131,543		$	875,021
Ratio of Expenses Before Expense Limitation		N/A			N/A			0.50	%		N/A			N/A			0.54	%
Ratio of Expenses After Expense Limitation		0.46	%⁽⁵⁾⁽⁹⁾		0.47	%⁽⁵⁾		0.49	%⁽⁵⁾		0.50	%⁽⁵⁾		0.53	%⁽⁵⁾		0.54	%⁽⁵⁾⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.49	%⁽⁵⁾		N/A			0.53	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(0.41	)%⁽⁵⁾⁽⁹⁾		(0.45	)%⁽⁵⁾		(0.29	)%⁽⁵⁾		(0.09	)%⁽⁵⁾		(0.16	)%⁽⁵⁾		0.12	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		29	%⁽⁸⁾		60	%		87	%		41	%		55	%		39	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Effective April 7, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.73% for Class IS shares. Prior to April 7, 2016, the maximum ratio was 0.67% for Class IS shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
16

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Growth Portfolio

	Class IR
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	92.41		$	46.73		$	42.04		$	52.16
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.19	)		(0.31	)		(0.15	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		12.24			54.55			9.80			(6.76	)
Total from Investment Operations		12.05			54.24			9.65			(6.80	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(8.56	)		(4.96	)		(3.32	)
Net Asset Value, End of Period	$	104.46		$	92.41		$	46.73		$	42.04
Total Return⁽⁴⁾		13.04	%⁽⁷⁾		115.74	%		23.26	%		(13.48	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	326,068		$	389,971		$	269,241		$	149,578
Ratio of Expenses Before Expense Limitation		N/A			N/A			0.50	%		N/A
Ratio of Expenses After Expense Limitation		0.46	%⁽⁵⁾⁽⁸⁾		0.47	%⁽⁵⁾		0.49	%⁽⁵⁾		0.49	%⁽⁵⁾⁽⁸⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.49	%⁽⁵⁾		N/A
Ratio of Net Investment Loss		(0.41	)%⁽⁵⁾⁽⁸⁾		(0.45	)%⁽⁵⁾		(0.30	)%⁽⁵⁾		(0.14	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		29	%⁽⁷⁾		60	%		87	%		41	%

(1) Not consolidated.

(2) Commencement of Offering.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
17

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Growth Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of large capitalization companies.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

The Fund may, 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, Growth Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $78,129,000 or approximately 0.41% of the total net assets of the Fund.

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (5) when market quotations are not readily available, 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; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 – unadjusted quoted prices in active markets for identical investments

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Biotechnology	$	409,848	$	—	$	—	$	409,848
Entertainment		1,479,785		—		—		1,479,785
Health Care Equipment & Supplies		594,284		—		—		594,284
Health Care Providers & Services		139,660		—		—		139,660
Health Care Technology		725,050		256,441		—		981,491
Hotels, Restaurants & Leisure		95,594		—		—		95,594
Information Technology Services		4,747,397		—		—		4,747,397
Interactive Media & Services		2,943,223		—		—		2,943,223
Internet & Direct Marketing Retail		1,091,040		—		—		1,091,040
Life Sciences Tools & Services		388,492		—		—		388,492
Metals & Mining		50,135		—		—		50,135
Pharmaceuticals		390,297		—		—		390,297
Road & Rail		463,940		—		—		463,940

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)
Semiconductors & Semiconductor Equipment	$	502,828	$	—	$	—		$	502,828
Software		3,661,970		—		—			3,661,970
Specialty Retail		548,730		—		—			548,730
Total Common Stocks		18,232,273		256,441		—		$	18,488,714
Investment Company		63,500		—		—			63,500
Preferred Stock
Electronic Equipment, Instruments & Components		—		—		—	†		—	†
Call Option Purchased		—		4,214		—			4,214
Short-Term Investment
Investment Company		608,197		—		—			608,197
Total Assets		18,903,970		260,655		—	†		19,164,625	†
Liabilities:
Derivative Contract — PIPE		—		—		(6,098	)		(6,098	)
Total	$	18,903,970	$	260,655	$	(6,098	)†	$	19,158,527	†

† Includes a security valued at zero.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	Common Stock (000)			Preferred Stocks (000)			Derivative Contract — PIPE (000)
Beginning Balance	$	39,017		$	—	†	$	—
Purchases		—			—			—
Sales		—			—			—
PIPE transactions		—			—			(6,098	)
Amortization of discount		—			—			—
Transfers in		—			—			—
Transfers out		(39,017	)††		—			—
Corporate actions		—			—			—
Change in unrealized appreciation (depreciation)		—			—			—
Realized gains (losses)		—			—			—
Ending Balance	$	—		$	—	†	$	(6,098	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	—		$	—		$	(6,098	)

† Includes a security valued at zero.

†† A security transferred out of level 3 due to an Initial Public Offering.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

PIPE

(6,098

)

Market Implied

Discount for Lack of
Marketability and
Transaction Risk

14.0

Decrease

* Amount is indicative of the weighted average.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

Options: With respect to options, the Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

4,214

(a)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

Liability Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation
on Derivative
Contract — PIPE

Equity Risk

(6,098

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(16,968	)(b)

(b) Amounts are included in Investments Sold in the Consolidated Statement of Operations.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(23,417	)(c)
Equity Risk	Derivative Contract — PIPE		(6,098	)
Total		$	(29,515	)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets (000)			Liabilities (000)
Purchased Options	$	4,214	(a)(d)	$	—
Derivative Contract — PIPE		—			(6,098	)(e)
Total	$	4,214		$	(6,098	)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(d) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities(a) (000)		Financial Instrument (000)		Collateral Received(f) (000)			Net Amount (not less than $0) (000)
BNP Paribas	$	1,607	$	—	$	(1,607	)	$	0
Goldman Sachs International		2,605		—		(2,605	)		0
Royal Bank of Scotland		2		—		(2	)		0
Total	$	4,214	$	—	$	(4,214	)	$	0

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(f) 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, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		13,733,168,000
Derivative Contract — PIPE:
Average monthly notional amount	$	42,516,000

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund's Consolidated Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

At June 30, 2021, the Fund did not have any outstanding securities on loan.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

value and the Fund may have difficulty disposing of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Fund, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Fund can sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and the acquirer of the securities. The Fund would, in either case, bear market risks during that period. Restricted securities are identified in the Consolidated Portfolio of Investments.

9. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

10. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.36% of the Fund's average daily net assets.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and an indirect

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

subsidiary of Morgan Stanley, serves as the Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than

long-term U.S. Government securities and short-term investments were approximately $5,531,680,000 and $4,838,628,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $234,000 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, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,375,449			$	3,202,411			$	3,969,663			$	39

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	608,197

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	345,276	$	1,154,186	$	32,348	$	663,719

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains

(losses) on certain investment transactions and the timing of the deductibility of certain expenses.

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	524,779			$	522,718

K. Market Risk and Risks Relating to Certain Financial Instruments:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

acquisition or that any acquisitions that are completed will be profitable. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter market, may be considered illiquid and/or be subject to restrictions on resale.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIGRWSAN
3689520 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Inception Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					8
Consolidated Statement of Operations					10
Consolidated Statements of Changes in Net Assets					11
Consolidated Financial Highlights					13
Notes to Consolidated Financial Statements					18
Investment Advisory Agreement Approval					31
Liquidity Risk Management Program					33
U.S. Customer Privacy Notice					34
Director and Officer Information					37

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Inception Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Inception Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Inception Portfolio Class I	$	1,000.00	$	1,373.20	$	1,019.98	$	5.71	$	4.86		0.97	%
Inception Portfolio Class A		1,000.00		1,372.10		1,018.79		7.12		6.06		1.21
Inception Portfolio Class L		1,000.00		1,367.20		1,015.87		10.56		9.00		1.80
Inception Portfolio Class C		1,000.00		1,366.40		1,015.08		11.50		9.79		1.96
Inception Portfolio Class IS		1,000.00		1,373.50		1,020.23		5.41		4.61		0.92

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Inception Portfolio

	Shares		Value (000)
Common Stocks (84.2%)
Aerospace & Defense (1.6%)
Axon Enterprise, Inc. (a)		197,989	$	35,004
Biotechnology (5.6%)
4D Molecular Therapeutics, Inc. (a)(b)		239,671		5,771
Abcam PLC ADR (United Kingdom) (a)		564,891		10,756
Allogene Therapeutics, Inc. (a)		217,936		5,684
ATAI Life Sciences N.V. (a)		637,343		11,791
Beam Therapeutics, Inc. (a)		50,887		6,550
C4 Therapeutics, Inc. (a)		149,927		5,673
Century Therapeutics, Inc. (a)		216,664		6,357
Editas Medicine, Inc. (a)		57,844		3,276
Fate Therapeutics, Inc. (a)		62,481		5,423
Graphite Bio, Inc. (a)		169,615		5,212
Intellia Therapeutics, Inc. (a)		136,014		22,022
Lyell Immunopharma, Inc. (a)		1,073,584		17,435
Passage Bio, Inc. (a)		424,481		5,620
Relay Therapeutics, Inc. (a)		151,756		5,553
Sana Biotechnology, Inc. (a)		401,380		7,891
				125,014
Chemicals (1.1%)
Zymergen, Inc. (a)		600,118		24,011
Diversified Holding Companies (5.3%)
ABG Acquisition Corp. I, Class A SPAC (a)		471,282		4,642
Big Sky Growth Partners, Inc. (Units) SPAC (a)(c)		1,016,518		10,155
BowX Acquisition Corp., Class A SPAC (a)(b)		870,863		10,015
CM Life Sciences II, Inc. (Units) SPAC (a)(c)		305,714		4,112
CM Life Sciences III, Inc. (Units) SPAC (a)(c)		192,039		2,103
Digital Transformation Opportunities Corp. (Units) SPAC (a)(c)		187,007		1,851
Dynamics Special Purpose Corp., Class A SPAC (See Note G) (a)		1,892,696		18,813
Gores Holdings VI, Inc., Class A SPAC (a)(b)		1,657,001		26,860
Ribbit LEAP Ltd. (Units) SPAC (a)(c)		588,956		6,543
TCV Acquisition Corp., Class A SPAC (a)		622,080		6,165
TPG Pace Tech Opportunities Corp., Class A SPAC (a)		1,827,402		18,146
USHG Acquisition Corp. (Units) SPAC (a)(c)		1,031,281		10,334
				119,739
Diversified Telecommunication Services (2.4%)
Anterix, Inc. (a)		886,777		53,198
Entertainment (3.7%)
Skillz, Inc. (a)(b)		3,822,551		83,026
Food Products (1.8%)
UTZ Brands, Inc.		1,837,523		40,040
Health Care Equipment & Supplies (3.3%)
Angle PLC (United Kingdom) (a)		9,573,681		18,077
Figs, Inc., Class A (a)		630,853		31,606
Outset Medical, Inc. (a)		133,900		6,692
Penumbra, Inc. (a)		38,743		10,618
Quotient Ltd. (a)		2,185,259		7,954
				74,947

	Shares		Value (000)
Health Care Providers & Services (6.3%)
23andMe Holding Co. (a)(d)		532,622	$	5,791
Agilon health, Inc. (a)		802,837		32,571
Alignment Healthcare, Inc. (a)		444,070		10,378
Covetrus, Inc. (a)		2,240,451		60,492
HealthEquity, Inc. (a)		113,076		9,100
Privia Health Group, Inc. (a)		189,724		8,418
Signify Health, Inc., Class A (a)		376,092		11,444
Talkspace, Inc. (a)(d)		469,229		3,685
				141,879
Health Care Technology (3.3%)
Doximity, Inc., Class A (a)		645,761		37,583
Inspire Medical Systems, Inc. (a)		136,353		26,352
Schrodinger, Inc. (a)		125,976		9,525
				73,460
Household Durables (4.4%)
Cricut, Inc., Class A (a)(b)		874,302		37,245
Victoria PLC (United Kingdom) (a)		4,149,645		61,420
				98,665
Information Technology Services (3.8%)
Fastly, Inc., Class A (a)		1,429,846		85,219
Insurance (0.3%)
Oscar Health, Inc., Class A (a)		340,087		7,312
Interactive Media & Services (1.1%)
Vimeo, Inc. (a)		485,270		23,778
Internet & Direct Marketing Retail (8.0%)
Global-e Online Ltd. (Israel) (a)		350,906		20,030
Original BARK Co. (The) (a)(b)		848,285		9,399
Overstock.com, Inc. (a)		836,370		77,113
Stitch Fix, Inc., Class A (a)		1,226,164		73,938
				180,480
Life Sciences Tools & Services (3.9%)
AbCellera Biologics, Inc. (Canada) (a)		267,041		5,875
NanoString Technologies, Inc. (a)		919,242		59,558
Olink Holding AB ADR (Sweden) (a)		314,398		10,821
Seer, Inc. (a)(b)		313,510		10,277
				86,531
Machinery (0.9%)
Desktop Metal, Inc., Class A (a)(b)		1,837,335		21,129
Media (1.6%)
Cardlytics, Inc. (a)		277,153		35,179
Metals & Mining (0.7%)
MP Materials Corp. (a)(b)		260,572		9,605
Royal Gold, Inc.		46,477		5,303
				14,908
Pharmaceuticals (0.1%)
GH Research PLC (a)		129,927		2,823
Professional Services (1.1%)
Upwork, Inc. (a)		412,157		24,025

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Inception Portfolio

	Shares		Value (000)
Real Estate Management & Development (4.7%)
Redfin Corp. (a)		1,679,601	$	106,504
Software (13.4%)
Anaplan, Inc. (a)		391,256		20,854
Appfolio, Inc., Class A (a)		380,374		53,709
Appian Corp. (a)(b)		273,105		37,620
C3.ai, Inc., Class A (a)		343,695		21,491
Clear Secure, Inc., Class A (a)		581,052		18,012
JFrog Ltd. (a)		659,712		30,030
Latch, Inc. (a)(b)		1,899,157		23,303
MicroStrategy, Inc., Class A (a)		14,480		9,622
Monday.com Ltd. (Israel) (a)		126,385		28,258
Olo, Inc., Class A (a)		624,944		23,367
Smartsheet, Inc., Class A (a)		480,003		34,714
				300,980
Specialty Retail (5.5%)
Party City Holdco, Inc. (a)(b)		5,022,247		46,858
Vroom, Inc. (a)		1,828,843		76,555
				123,413
Trading Companies & Distributors (0.3%)
EVI Industries, Inc. (a)		232,080		6,591
Total Common Stocks (Cost $1,618,527)				1,887,855
Preferred Stocks (0.7%)
Health Care Technology (0.4%)
Grand Rounds, Inc. Series B (a)(d)(f) (acquisition cost — $3,362; acquired 7/3/14)		3,269,139		8,565
Internet & Direct Marketing Retail (0.1%)
Overstock.com, Inc. Series A-1		14,625		1,243
Software (0.2%)
Lookout, Inc. Series F (a)(d)(f) (acquisition cost — $13,476; acquired 6/17/14)		1,179,743		5,356
Total Preferred Stocks (Cost $16,933)				15,164
Investment Companies (1.4%)
Grayscale Bitcoin Trust (a)		229,763		6,849
Hipgnosis Songs Fund Ltd.		14,932,747		25,118
Total Investment Companies (Cost $36,381)				31,967
Warrants (0.1%)
Internet & Direct Marketing Retail (0.1%)
Original BARK Co. (The) expires 5/1/26 (a)(b) (Cost $1,100)		209,825		730
Short-Term Investments (17.5%)
Securities held as Collateral on Loaned Securities (2.6%)
Investment Company (2.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		49,130,098		49,130

	Face Amount (000)		Value (000)
Repurchase Agreements (0.4%)
HSBC Securities USA, Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $2,313; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $2,359)	$	2,313	$	2,313
Merrill Lynch & Co., Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $6,477; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 12/30/21 - 8/15/43; valued at $6,606)		6,477		6,477
				8,790
Total Securities held as Collateral on Loaned Securities (Cost $57,920)				57,920
	Shares
Investment Company (14.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $334,888)		334,887,910		334,888
Total Short-Term Investments (Cost $392,808)				392,808
Total Investments Excluding Purchased Options (103.9%) (Cost $2,065,749)				2,328,524
Total Purchased Options Outstanding (0.0%) (e) (Cost $3,821)				366
Total Investments (103.9%) (Cost $2,069,570) Including $59,252 of Securities Loaned (g)(l)				2,328,890
Liabilities in Excess of Other Assets (–3.9%)				(86,467	)
Net Assets (100.0%)			$	2,242,423

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Inception Portfolio

The Fund had the following Derivative Contracts — PIPE open at June 30, 2021:

Counterparty	Referenced Obligation	Notional Amount		Settlement Date	Unrealized Appreciation (Depreciation) (000)			% of Net Assets
CM Life Sciences, Inc.	Mount Sinai Genomics, Inc. (d/b/a Sema4) (a)(d)(f)(h)(k)	$	10,793,060	12/31/21	$	2,438			0.11	%
Good Works Acquisition Corp.	Cipher Mining Technologies, Inc. (a)(d)(f)(i)(k)		9,274,400	12/31/21		(2400	)		(0.11	)
CM Life Sciences II, Inc.	SomaLogic, Inc. (a)(d)(f)(j)(k)		6,355,010	12/31/21		1,295			0.06
					$	1,333			0.06	%

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2021.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities and derivative contracts (excluding 144A holdings) at June 30, 2021 amounts to approximately $24,730,000 and represents 1.1% of net assets.

(e) Amount is less than 0.05%.

(f) At June 30, 2021, the Fund held fair valued securities and derivative contracts valued at approximately $15,254,000, representing 0.7% of net assets. These holdings 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.

(g) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $351,840,000 and the aggregate gross unrealized depreciation is approximately $91,187,000, resulting in net unrealized appreciation of approximately $260,653,000.

(h) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 1,079,306 shares at $10.00 per shares on the settlement date pursuant to the closing of the business combination between Mount Sinai Genomics, Inc., and CM Life Sciences, Inc., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both CM Life Sciences, Inc., and Mount Sinai Genomics, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to CM Life Sciences, Inc., and Mount Sinai Genomics, Inc.,. The investment is restricted from resale until the settlement date.

(i) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 927,440 shares at $10.00 per shares on the settlement date pursuant to the closing of the business combination between Cipher Mining Technologies, Inc., and Good Works Acquisition Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Good Works Acquisition Corp., and Cipher Mining Technologies, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Good Works Acquisition Corp., and Cipher Mining Technologies, Inc.,. The investment is restricted from resale until the settlement date.

(j) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 635,501 shares at $10.00 per shares on the settlement date pursuant to the closing of the business combination between SomaLogic, Inc., and CM Life Sciences II, Inc., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both CM Life Sciences II, Inc., and SomaLogic, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to CM Life Sciences II, Inc., and SomaLogic, Inc.,. The investment is restricted from resale until the settlement date.

(k) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.

(l) Securities are available as collateral in connection with securities purchased on a forward commitment basis.

ADR American Depositary Receipt.

TBA To Be Announced.

USD United States Dollar.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Inception Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
BNP Paribas	USD/CNH	CNH	7.99	Sep-21		60,263,882		60,264	$	—	@	$	365	$	(365	)
BNP Paribas	USD/CNH	CNH	7.45	Jan-22		163,712,492		163,712		68			874		(806	)
BNP Paribas	USD/CNH	CNH	7.64	Nov-21		88,360,621		88,361		9			480		(471	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		365,598,034		365,598		289			1,816		(1,527	)
Royal Bank of Scotland	USD/CNH	CNH	8.06	Jul-21		53,965,809		53,966		—	@		286		(286	)
									$	366		$	3,821	$	(3,455	)

@ Amount is less than $500

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		41.3	%
Short-Term Investments		14.8
Software		13.5
Internet & Direct Marketing Retail		8.0
Health Care Providers & Services		6.2
Biotechnology		5.5
Specialty Retail		5.4
Diversified Holding Companies		5.3
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** Industries and/or investment types representing less than 5% of total investments.

*** Does not include open PIPE contracts with net unrealized appreciation of approximately $1,333,000.

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Inception Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $1,666,625)	$	1,926,059
Investment in Security of Affiliated Issuer, at Value (Cost $402,945)		402,831
Total Investments in Securities, at Value (Cost $2,069,570)		2,328,890
Foreign Currency, at Value (Cost $1)		1
Cash from Securities Lending		1,679
Receivable for Investments Sold		40,765
Receivable for Fund Shares Sold		9,799
Receivable from Securities Lending Income		1,037
Dividends Receivable		146
Receivable from Affiliate		2
Unrealized Appreciation on Derivative Contracts — PIPE		3,733
Other Assets		902
Total Assets		2,386,954
Liabilities:
Payable for Investments Purchased		75,167
Collateral on Securities Loaned, at Value		59,599
Payable for Advisory Fees		3,923
Payable for Fund Shares Redeemed		2,262
Due to Broker		735
Payable for Shareholder Services Fees — Class A		159
Payable for Distribution and Shareholder Services Fees — Class L		2
Payable for Distribution and Shareholder Services Fees — Class C		35
Payable for Administration Fees		136
Payable for Professional Fees		57
Payable for Custodian Fees		9
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class IS		1
Payable for Organization Costs for Subsidiary		3
Payable for Sub Transfer Agency Fees — Class L		—	@
Unrealized Depreciation on Derivative Contract — PIPE		2,400
Other Liabilities		41
Total Liabilities		144,531
Net Assets	$	2,242,423
Net Assets Consist of:
Paid-in-Capital	$	1,613,557
Total Distributable Earnings		628,866
Net Assets	$	2,242,423

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Inception Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	1,147,810
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		32,787,317
Net Asset Value, Offering and Redemption Price Per Share	$	35.01
CLASS A:
Net Assets	$	837,113
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		32,653,093
Net Asset Value, Redemption Price Per Share	$	25.64
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.42
Maximum Offering Price Per Share	$	27.06
CLASS L:
Net Assets	$	2,876
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		127,843
Net Asset Value, Offering and Redemption Price Per Share	$	22.50
CLASS C:
Net Assets	$	45,803
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,876,908
Net Asset Value, Offering and Redemption Price Per Share	$	24.40
CLASS IS:
Net Assets	$	208,821
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,906,191
Net Asset Value, Offering and Redemption Price Per Share	$	35.36
⁽¹⁾ Including: Securities on Loan, at Value:	$	59,252

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Inception Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Income from Securities Loaned — Net	$	2,548
Dividends from Securities of Unaffiliated Issuers		739
Dividends from Security of Affiliated Issuer (Note G)		12
Total Investment Income		3,299
Expenses:
Advisory Fees (Note B)		7,801
Shareholder Services Fees — Class A (Note D)		829
Distribution and Shareholder Services Fees — Class L (Note D)		11
Distribution and Shareholder Services Fees — Class C (Note D)		166
Administration Fees (Note C)		711
Sub Transfer Agency Fees — Class I		196
Sub Transfer Agency Fees — Class A		105
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		4
Registration Fees		119
Professional Fees		65
Shareholder Reporting Fees		15
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		12
Directors' Fees and Expenses		9
Organization Costs for Subsidiary		3
Pricing Fees		2
Other Expenses		14
Total Expenses		10,075
Waiver of Advisory Fees (Note B)		(486	)
Rebate from Morgan Stanley Affiliate (Note G)		(69	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		9,519
Net Investment Loss		(6,220	)
Realized Gain:
Investments Sold		307,720
Foreign Currency Translation		73
Net Realized Gain		307,793
Change in Unrealized Appreciation (Depreciation):
Investments		28,005
Investments in Affiliates		(114	)
Foreign Currency Translation		5
Derivative Contracts — PIPE		1,333
Net Change in Unrealized Appreciation (Depreciation)		29,229
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		337,022
Net Increase in Net Assets Resulting from Operations	$	330,802

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Inception Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(6,220	)	$	(1,920	)
Net Realized Gain		307,793			143,288
Net Change in Unrealized Appreciation (Depreciation)		29,229			211,934
Net Increase in Net Assets Resulting from Operations		330,802			353,302
Dividends and Distributions to Shareholders:
Class I		—			(35,772	)
Class A		—			(21,928	)
Class L		—			(330	)
Class C		—			(1,096	)
Class IS		—			(13,192	)
Total Dividends and Distributions to Shareholders		—			(72,318	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		849,208			305,320
Distributions Reinvested		—			35,721
Redeemed		(358,024	)		(67,974	)
Class A:
Subscribed		887,658			132,778
Distributions Reinvested		—			21,743
Redeemed		(358,076	)		(32,925	)
Class L:
Distributions Reinvested		—			329
Redeemed		(536	)		(250	)
Class C:
Subscribed		32,964			8,725
Distributions Reinvested		—			1,085
Redeemed		(5,099	)		(330	)
Class IS:
Subscribed		18,481			23,748
Distributions Reinvested		—			13,192
Redeemed		(19,952	)		(29,678	)
Net Increase in Net Assets Resulting from Capital Share Transactions		1,046,624			411,484
Redemption Fees		1,657			65
Total Increase in Net Assets		1,379,083			692,533
Net Assets:
Beginning of Period		863,340			170,807
End of Period	$	2,242,423		$	863,340

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Inception Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		25,704			15,383
Shares Issued on Distributions Reinvested		—			1,480
Shares Redeemed		(11,149	)		(3,910	)
Net Increase in Class I Shares Outstanding		14,555			12,953
Class A:
Shares Subscribed		35,536			8,307
Shares Issued on Distributions Reinvested		—			1,228
Shares Redeemed		(15,173	)		(2,547	)
Net Increase in Class A Shares Outstanding		20,363			6,988
Class L:
Shares Issued on Distributions Reinvested		—			21
Shares Redeemed		(27	)		(26	)
Net Decrease in Class L Shares Outstanding		(27	)		(5	)
Class C:
Shares Subscribed		1,406			578
Shares Issued on Distributions Reinvested		—			64
Shares Redeemed		(229	)		(26	)
Net Increase in Class C Shares Outstanding		1,177			616
Class IS:
Shares Subscribed		545			1,580
Shares Issued on Distributions Reinvested		—			541
Shares Redeemed		(624	)		(1,869	)
Net Increase (Decrease) in Class IS Shares Outstanding		(79	)		252

* Not consolidated.

The accompanying notes are an integral part of the consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Inception Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	25.48		$	11.19		$	9.62		$	10.90		$	13.26		$	13.75
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.09	)		(0.10	)		0.01			(0.05	)		(0.11	)		0.00	⁽⁴⁾
Net Realized and Unrealized Gain (Loss)		9.59			16.84			3.50			0.16			2.91			(0.05	)
Total from Investment Operations		9.50			16.74			3.51			0.11			2.80			(0.05	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.45	)		(1.94	)		(1.39	)		(5.16	)		(0.44	)
Redemption Fees		0.03			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	35.01		$	25.48		$	11.19		$	9.62		$	10.90		$	13.26
Total Return⁽⁵⁾		37.32	%⁽⁹⁾		150.57	%		37.11	%		0.29	%		21.87	%		(0.35	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,147,810		$	464,639		$	59,092		$	60,777		$	141,954		$	305,945
Ratio of Expenses Before Expense Limitation		1.03	%⁽¹⁰⁾		1.18	%		1.21	%		1.17	%		1.20	%		1.17	%
Ratio of Expenses After Expense Limitation		0.97	%^(6)(10)		0.99	%⁽⁶⁾		0.99	%⁽⁶⁾		0.98	%⁽⁶⁾		0.99	%⁽⁶⁾		1.02	%⁽⁶⁾⁽⁷⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.99	%⁽⁶⁾		N/A			0.98	%⁽⁶⁾		0.99	%⁽⁶⁾		N/A
Ratio of Net Investment Income (Loss)		(0.59	)%^(6)(10)		(0.54	)%⁽⁶⁾		0.09	%⁽⁶⁾		(0.41	)%⁽⁶⁾		(0.77	)%⁽⁶⁾		0.02	%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽¹⁰⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁸⁾
Portfolio Turnover Rate		72	%⁽⁹⁾		132	%		99	%		79	%		97	%		51	%

(1) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Effective July 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to July 1, 2016, the maximum ratio was 1.05% 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 consolidated financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Inception Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	18.68		$	8.51		$	7.68		$	8.99		$	11.72		$	12.25
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.10	)		(0.10	)		(0.02	)		(0.07	)		(0.14	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		7.04			12.72			2.79			0.15			2.57			(0.05	)
Total from Investment Operations		6.94			12.62			2.77			0.08			2.43			(0.09	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.45	)		(1.94	)		(1.39	)		(5.16	)		(0.44	)
Redemption Fees		0.02			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	25.64		$	18.68		$	8.51		$	7.68		$	8.99		$	11.72
Total Return⁽⁵⁾		37.21	%⁽⁹⁾		149.86	%		36.71	%		0.02	%		21.57	%		(0.73	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	837,113		$	229,641		$	45,097		$	34,166		$	40,531		$	87,864
Ratio of Expenses Before Expense Limitation		1.27	%⁽¹⁰⁾		1.44	%		1.52	%		1.44	%		1.51	%		1.45	%
Ratio of Expenses After Expense Limitation		1.21	%^(6)(10)		1.25	%⁽⁶⁾		1.29	%⁽⁶⁾		1.25	%⁽⁶⁾		1.34	%⁽⁶⁾		1.37	%⁽⁶⁾⁽⁷⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.25	%⁽⁶⁾		N/A			1.25	%⁽⁶⁾		1.34	%⁽⁶⁾		N/A
Ratio of Net Investment Loss		(0.85	)%^(6)(10)		(0.80	)%⁽⁶⁾		(0.23	)%⁽⁶⁾		(0.69	)%⁽⁶⁾		(1.12	)%⁽⁶⁾		(0.35	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽¹⁰⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁸⁾
Portfolio Turnover Rate		72	%⁽⁹⁾		132	%		99	%		79	%		97	%		51	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Effective July 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class A shares. Prior to July 1, 2016, the maximum ratio was 1.40% for Class A shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Inception Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	16.45		$	7.65		$	7.10		$	8.46		$	11.34		$	11.92
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.15	)		(0.16	)		(0.07	)		(0.11	)		(0.19	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		6.18			11.41			2.56			0.14			2.47			(0.04	)
Total from Investment Operations		6.03			11.25			2.49			0.03			2.28			(0.14	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.45	)		(1.94	)		(1.39	)		(5.16	)		(0.44	)
Redemption Fees		0.02			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	22.50		$	16.45		$	7.65		$	7.10		$	8.46		$	11.34
Total Return		36.72	%^(5)(10)		148.82	%⁽⁶⁾		35.91	%⁽⁵⁾		(0.58	)%⁽⁵⁾		20.95	%⁽⁵⁾		(1.17	)%⁽⁵⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,876		$	2,543		$	1,218		$	1,157		$	1,310		$	1,524
Ratio of Expenses Before Expense Limitation		1.87	%⁽¹¹⁾		2.10	%		2.15	%		2.07	%		2.27	%		2.21	%
Ratio of Expenses After Expense Limitation		1.80	%^(7)(11)		1.84	%⁽⁷⁾		1.84	%⁽⁷⁾		1.84	%⁽⁷⁾		1.84	%⁽⁷⁾		1.87	%⁽⁷⁾⁽⁸⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.84	%⁽⁷⁾		N/A			1.84	%⁽⁷⁾		1.84	%⁽⁷⁾		N/A
Ratio of Net Investment Loss		(1.42	)%^(7)(11)		(1.43	)%⁽⁷⁾		(0.78	)%⁽⁷⁾		(1.28	)%⁽⁷⁾		(1.61	)%⁽⁷⁾		(0.88	)%⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽¹¹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁹⁾
Portfolio Turnover Rate		72	%⁽¹⁰⁾		132	%		99	%		79	%		97	%		51	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(6) Calculated using the NAV for US GAAP financial reporting purposes and as such differs from the total return presented in the Investment Overview.

(7) The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(8) Effective July 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.85% for Class L shares. Prior to July 1, 2016, the maximum ratio was 1.90% for Class L shares.

(9) Amount is less than 0.005%.

(10) Not annualized.

(11) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Inception Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,									Period from May 31, 2017⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			December 31, 2017⁽¹⁾
Net Asset Value, Beginning of Period	$	17.85		$	8.24		$	7.55		$	8.93		$	13.59
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.18	)		(0.22	)		(0.10	)		(0.03	)		(0.13	)
Net Realized and Unrealized Gain		6.71			12.28			2.73			0.04			0.63
Total from Investment Operations		6.53			12.06			2.63			0.01			0.50
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.45	)		(1.94	)		(1.39	)		(5.16	)
Redemption Fees		0.02			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	24.40		$	17.85		$	8.24		$	7.55		$	8.93
Total Return⁽⁵⁾		36.64	%⁽⁸⁾		147.97	%		35.48	%		(0.78	)%		4.36	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	45,803		$	12,494		$	688		$	116		$	30
Ratio of Expenses Before Expense Limitation		2.02	%⁽⁹⁾		2.26	%		2.75	%		4.73	%		21.29	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.96	%⁽⁶⁾⁽⁹⁾		2.07	%⁽⁶⁾		2.09	%⁽⁶⁾		2.09	%⁽⁶⁾		2.10	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			2.07	%⁽⁶⁾		N/A			2.09	%⁽⁶⁾		2.10	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Loss		(1.58	)%⁽⁶⁾⁽⁹⁾		(1.61	)%⁽⁶⁾		(0.99	)%⁽⁶⁾		(1.50	)%⁽⁶⁾		(1.82	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		72	%⁽⁸⁾		132	%		99	%		79	%		97	%

(1) Not consolidated.

(2) Commencement of Offering.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
16

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Inception Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	25.73		$	11.29		$	9.69		$	10.96		$	13.29		$	13.77
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.09	)		(0.08	)		0.01			(0.04	)		(0.10	)		0.01
Net Realized and Unrealized Gain (Loss)		9.69			16.97			3.53			0.16			2.93			(0.05	)
Total from Investment Operations		9.60			16.89			3.54			0.12			2.83			(0.04	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.45	)		(1.94	)		(1.39	)		(5.16	)		(0.44	)
Redemption Fees		0.03			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	35.36		$	25.73		$	11.29		$	9.69		$	10.96		$	13.29
Total Return⁽⁵⁾		37.35	%⁽⁹⁾		150.79	%		37.04	%		0.38	%		22.08	%		(0.28	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	208,821		$	154,023		$	64,712		$	110,919		$	129,126		$	361,586
Ratio of Expenses Before Expense Limitation		0.99	%⁽¹⁰⁾		1.11	%		1.15	%		1.11	%		1.09	%		1.03	%
Ratio of Expenses After Expense Limitation		0.92	%^(6)(10)		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾		0.95	%⁽⁶⁾⁽⁷⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.92	%⁽⁶⁾		N/A			0.92	%⁽⁶⁾		0.92	%⁽⁶⁾		N/A
Ratio of Net Investment Income (Loss)		(0.54	)%^(6)(10)		(0.49	)%⁽⁶⁾		0.12	%⁽⁶⁾		(0.36	)%⁽⁶⁾		(0.71	)%⁽⁶⁾		0.08	%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽¹⁰⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁸⁾
Portfolio Turnover Rate		72	%⁽⁹⁾		132	%		99	%		79	%		97	%		51	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Effective July 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.93% for Class IS shares. Prior to July 1, 2016, the maximum ratio was 0.98% for Class IS shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
17

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Inception Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of small capitalization companies.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

The Fund may, 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, Inception Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $8,452,000 or approximately 0.38% of the total net assets of the Fund.

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (5) when market quotations are not readily available, 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; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

(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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	35,004	$	—	$	—	$	35,004
Biotechnology		125,014		—		—		125,014
Chemicals		24,011		—		—		24,011
Diversified Holding Companies		119,739		—		—		119,739
Diversified Telecommunication Services		53,198		—		—		53,198

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)
Entertainment	$	83,026	$	—	$	—	$	83,026
Food Products		40,040		—		—		40,040
Health Care Equipment & Supplies		74,947		—		—		74,947
Health Care Providers & Services		132,403		9,476		—		141,879
Health Care Technology		73,460		—		—		73,460
Household Durables		98,665		—		—		98,665
Information Technology Services		85,219		—		—		85,219
Insurance		7,312		—		—		7,312
Interactive Media & Services		23,778		—		—		23,778
Internet & Direct Marketing Retail		180,480		—		—		180,480
Life Sciences Tools & Services		86,531		—		—		86,531
Machinery		21,129		—		—		21,129
Media		35,179		—		—		35,179
Metals & Mining		14,908		—		—		14,908
Pharmaceuticals		2,823		—		—		2,823
Professional Services		24,025		—		—		24,025
Real Estate Management & Development		106,504		—		—		106,504
Software		300,980		—		—		300,980
Specialty Retail		123,413		—		—		123,413
Trading Companies & Distributors		6,591		—		—		6,591
Total Common Stocks		1,878,379		9,476		—		1,887,855
Preferred Stocks
Health Care Technology		—		—		8,565		8,565
Internet & Direct Marketing Retail		1,243		—		—		1,243
Software		—		—		5,356		5,356
Total Preferred Stocks		1,243		—		13,921		15,164
Investment Companies		31,967		—		—		31,967
Warrants		730		—		—		730
Call Option Purchased		—		366		—		366
Short-Term Investments
Investment Company		384,018		—		—		384,018
Repurchase Agreements		—		8,790		—		8,790
Total Short-Term Investments		384,018		8,790		—		392,808

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Derivative Contracts — PIPE	$	—	$	—	$	3,733		$	3,733
Total Assets		2,296,337		18,632		17,654			2,332,623
Liabilities:
Derivative Contract — PIPE		—		—		(2,400	)		(2,400	)
Total	$	2,296,337	$	18,632	$	15,254		$	2,330,223

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:

Inception	Preferred Stocks (000)		Derivative Contracts — PIPE (000)
Beginning Balance	$	12,647	$	—
Purchases		—		—
Sales		—		—
PIPE transactions		—		1,333
Amortization of discount		—		—
Transfers in		—		—
Transfers out		—		—
Corporate actions		—		—
Change in unrealized appreciation (depreciation)		1,274		—
Realized gains (losses)		—		—
Ending Balance	$	13,921	$	1,333
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	1,274	$	1,333

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount or Range/
Weighted Average*

Impact to
Valuation from an
Increase in Input**

Preferred Stocks

13,921

Discounted Cash Flow

Weighted Average
Cost of Capital

11.0%–13.5%/12.3%

Decrease

Perpetual Growth Rate

3.0%–4.0%/3.5%

Increase

Market Comparable
Companies

Enterprise Value/
Revenue

2.9x–41.3x/8.6x

Increase

Discount for Lack
of Marketability

8.0%–16.0%/12.9%

Decrease

Comparable
Transactions

Enterprise
Value/Revenue

3.8x

Increase

PIPE

1,333

Market Implied

Discount for Lack
of Marketability
and Transaction Risk

10.5%–25.5%/15.2%

Decrease

* Amount is indicative of the weighted average.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and, when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral proceeds may be subject to cost and delays. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

4. Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition

of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Consolidated Statement of Operations.

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

expectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund 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.

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

FASB ASC 815, "Derivatives and Hedging" ("ASC 815"), is intended to improve financial reporting

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

366

(a)

PIPE

Unrealized Appreciation
on Derivative
Contracts — PIPE

Equity Risk

3,733

Total

4,099

Liability Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation
on Derivative
Contract — PIPE

Equity Risk

(2,400

)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(385	)(b)

(b) Amounts are included in Investments Sold in the Consolidated Statement of Operations.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(2,275	)(c)
Equity Risk	Derivative Contracts — PIPE		1,333
Total		$	(942	)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets (000)			Liabilities (000)
Purchased Options	$	366	(a)(d)	$	—
Derivative Contracts — PIPE		3,733	(e)		(2,400	)(e)
Total	$	4,099		$	(2,400	)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(d) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities(a) (000)			Financial Instrument (000)		Collateral Received(f) (000)			Net Amount not less (than $0) (000)
BNP Paribas	$	77		$	—	$	(77	)	$	0
Goldman Sachs International		289			—		(289	)		0
Royal Bank of Scotland		—	@		—		(—	@)		0
Total	$	366		$	—	$	(366	)	$	0

@ Value is less than $500.

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(f) 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, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount	$	632,810,000
Derivative Contracts — PIPE:
Average monthly notional amount	$	26,875,000

less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund's Consolidated Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	59,252	(g)	$	—	$	(59,252	)(h)(i)	$	0

(g) Represents market value of loaned securities at period end.

(h) The Fund received cash collateral of approximately $59,599,000, of which approximately $57,920,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $1,679,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $1,747,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated Portfolio of Investments.

(i) 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

contractual maturity of those transactions as of June 30, 2021:

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	59,545	$	—	$	—	$	—	$	59,545
Warrants		54		—		—		—		54
Total Borrowings	$	59,599	$	—	$	—	$	—	$	59,599
Gross amount of recognized liabilities for securities lending transactions									$	59,599

8. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class L shares, Class C shares and Class IS shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

or losses pursuant to these contracts and expects the risk of loss to be remote.

First $1 billion				Next $500 million				Next $500 million				Over $2 billion
	0.92	%			0.85	%			0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.82% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $486,000 of advisory fees were waived and approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $2,004,834,000 and $1,121,374,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $69,000 relating to the Fund's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company/Issuer	Value December 31, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	165,694	$	1,235,906	$	1,017,582	$	12
Dynamics Special Purpose Corp., Class A		—		18,927		—		—
	$	165,694	$	1,254,833	$	1,017,582	$	12

Affiliated Investment Company/Issuer (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)			Value June 30, 2021 (000)
Liquidity Funds	$	—	$	—		$	384,018
Dynamics Special Purpose Corp., Class A		—		(114	)		18,813
	$	—	$	(114	)	$	402,831

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.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	40,292	$	32,026	$	4,250	$	26,362

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	36,022			$	34,239

K. Market Risk and Risks Relating to Certain Financial Instruments:

market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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-, two- and three-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, actual management fee was lower than its peer group average and total expense ratio was higher than but close to 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFISCGSAN
3689410 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

International Advantage Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					16
Investment Advisory Agreement Approval					26
Liquidity Risk Management Program					28
U.S. Customer Privacy Notice					29
Director and Officer Information					32

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in International Advantage Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

International Advantage Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
International Advantage Portfolio Class I	$	1,000.00	$	1,097.60	$	1,020.08	$	4.94	$	4.76		0.95	%
International Advantage Portfolio Class A		1,000.00		1,096.30		1,018.70		6.39		6.16		1.23
International Advantage Portfolio Class L		1,000.00		1,093.20		1,015.62		9.60		9.25		1.85
International Advantage Portfolio Class C		1,000.00		1,092.50		1,015.17		10.07		9.69		1.94
International Advantage Portfolio Class IS		1,000.00		1,098.20		1,020.48		4.53		4.36		0.87

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

International Advantage Portfolio

	Shares		Value (000)
Common Stocks (94.5%)
Australia (3.3%)
Brookfield Infrastructure Partners LP		3,398,532	$	188,788
Canada (7.4%)
Brookfield Asset Management, Inc., Class A		3,987,000		203,257
Canada Goose Holdings, Inc. (See Note G) (a)		4,878,785		213,398
				416,655
China (6.6%)
Alibaba Group Holding Ltd. ADR (a)		446,559		101,270
Foshan Haitian Flavouring & Food Co., Ltd., Class A		9,461,280		188,817
TAL Education Group ADR (a)		3,299,079		83,236
				373,323
Denmark (10.0%)
Chr Hansen Holding A/S		1,308,564		118,102
DSV Panalpina A/S		1,920,624		447,903
				566,005
France (10.4%)
Dassault Systemes SE		396,889		96,240
Hermes International		262,260		382,033
Pernod Ricard SA		501,005		111,209
				589,482
Germany (1.8%)
Adidas AG		273,432		101,773
Hong Kong (2.8%)
AIA Group Ltd.		12,556,500		156,061
India (6.0%)
HDFC Bank Ltd.		13,192,707		265,860
Kotak Mahindra Bank Ltd. (a)		3,105,827		71,278
				337,138
Italy (6.9%)
Davide Campari-Milano N.V.		9,257,245		123,983
Moncler SpA		3,941,919		266,706
				390,689
Japan (7.3%)
Change, Inc. (a)		1,135,200		30,502
Keyence Corp.		488,300		246,446
Pigeon Corp.		4,853,100		136,732
				413,680
Netherlands (7.9%)
Adyen N.V. (a)		55,085		134,586
ASML Holding N.V.		456,358		313,529
				448,115

	Shares		Value (000)
Sweden (3.8%)
Evolution AB		817,183	$	129,136
Vitrolife AB		2,024,110		84,104
				213,240
Switzerland (6.8%)
Chocoladefabriken Lindt & Spruengli AG (Registered)		1,005		105,252
Kuehne & Nagel International AG (Registered)		344,440		117,860
Straumann Holding AG (Registered)		100,398		160,051
				383,163
Taiwan (4.4%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		2,056,920		247,160
United Kingdom (4.8%)
Diageo PLC		1,785,480		85,481
Rightmove PLC		20,338,831		182,707
				268,188
United States (4.3%)
Brookfield Asset Management Reinsurance Partners Ltd., Class A (a)		27,497		1,430
EPAM Systems, Inc. (a)		475,348		242,884
				244,314
Total Common Stocks (Cost $3,561,690)				5,337,774
Investment Company (0.3%)
Grayscale Bitcoin Trust (a) (Cost $31,144)		619,363		18,463
Short-Term Investment (4.9%)
Investment Company (4.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $274,433)		274,433,013		274,433
Total Investments (99.7%) (Cost $3,867,267) (b)(g)				5,630,670
Other Assets in Excess of Liabilities (0.3%)				15,843
Net Assets (100.0%)			$	5,646,513

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

International Advantage Portfolio

The Fund had the following Derivative Contract — PIPE open at June 30, 2021:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Appreciation (000)				% of Net Assets
Altimeter Growth Corp.				Grab Holdings, Inc. (a)(c)(d)(e)(f)				$	40,096,310			12/31/21				$	2,125				0.04	%

(a) Non-income producing security.

(b) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,926,526,000 and the aggregate gross unrealized depreciation is approximately $160,998,000, resulting in net unrealized appreciation of approximately $1,765,528,000.

(c) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted derivative contract (excluding 144A holdings) at June 30, 2021 amounts to approximately $2,125,000 and represents less than 0.05% of net assets.

(d) At June 30, 2021, the Fund held a fair valued derivative contract valued at approximately $2,125,000 representing less than 0.05% of net assets. This holding has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(e) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 4,009,631 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings, Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings, Inc. The investment is restricted from resale until the settlement date.

(f) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.

(g) Securities are available for collateral in connection with securities purchased on a forward commitment.

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		40.8	%
Textiles, Apparel & Luxury Goods		17.1
Semiconductors & Semiconductor Equipment		10.0
Air Freight & Logistics		8.0
Information Technology Services		7.2
Banks		6.0
Beverages		5.7
Food Products		5.2
Total Investments		100.0	%**

* Industries and/or investment types representing less than 5% of total investments.

** Does not include an open PIPE contract with total unrealized appreciation of approximately $2,125,000.

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Advantage Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $3,460,296)	$	5,142,839
Investment in Securities of Affiliated Issuers, at Value (Cost $406,971)		487,831
Total Investments in Securities, at Value (Cost $3,867,267)		5,630,670
Foreign Currency, at Value (Cost $11,831)		11,764
Cash		1,517
Receivable for Fund Shares Sold		16,382
Dividends Receivable		3,327
Tax Reclaim Receivable		2,515
Receivable from Affiliate		2
Unrealized Appreciation on Derivative Contract — PIPE		2,125
Other Assets		433
Total Assets		5,668,735
Liabilities:
Payable for Advisory Fees		10,144
Deferred Capital Gain Country Tax		8,343
Payable for Fund Shares Redeemed		2,842
Payable for Administration Fees		367
Payable for Custodian Fees		186
Payable for Shareholder Services Fees — Class A		143
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		28
Payable for Professional Fees		44
Payable for Transfer Agency Fees — Class I		34
Payable for Transfer Agency Fees — Class A		4
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Organization Costs for Subsidiary		15
Payable for Sub Transfer Agency Fees — Class L		—	@
Other Liabilities		71
Total Liabilities		22,222
Net Assets	$	5,646,513
Net Assets Consist of:
Paid-in-Capital	$	3,813,857
Total Distributable Earnings		1,832,656
Net Assets	$	5,646,513

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Advantage Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	4,709,921
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		158,621,689
Net Asset Value, Offering and Redemption Price Per Share	$	29.69
CLASS A:
Net Assets	$	697,862
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		23,948,582
Net Asset Value, Redemption Price Per Share	$	29.14
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.61
Maximum Offering Price Per Share	$	30.75
CLASS L:
Net Assets	$	378
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		13,487
Net Asset Value, Offering and Redemption Price Per Share	$	28.03
CLASS C:
Net Assets	$	34,882
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,262,706
Net Asset Value, Offering and Redemption Price Per Share	$	27.62
CLASS IS:
Net Assets	$	203,470
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		6,839,116
Net Asset Value, Offering and Redemption Price Per Share	$	29.75

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Advantage Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $3,208 of Foreign Taxes Withheld)	$	23,409
Non-Cash Dividends from Securities of Unaffiliated Issuers		1,457
Dividends from Security of Affiliated Issuers (Note G)		14
Income from Securities Loaned — Net		1
Total Investment Income		24,881
Expenses:
Advisory Fees (Note B)		19,231
Sub Transfer Agency Fees — Class I		1,759
Sub Transfer Agency Fees — Class A		378
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		9
Administration Fees (Note C)		2,025
Shareholder Services Fees — Class A (Note D)		805
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		148
Custodian Fees (Note F)		323
Registration Fees		153
Transfer Agency Fees — Class I (Note E)		90
Transfer Agency Fees — Class A (Note E)		7
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class IS (Note E)		1
Professional Fees		61
Shareholder Reporting Fees		51
Directors' Fees and Expenses		27
Organization Costs for Subsidiary		15
Pricing Fees		1
Other Expenses		40
Total Expenses		25,128
Rebate from Morgan Stanley Affiliate (Note G)		(85	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Net Expenses		25,042
Net Investment Loss		(161	)
Realized Gain (Loss):
Investments Sold (Net of $466 of Capital Gain Country Tax)		73,518
Foreign Currency Translation		(260	)
Net Realized Gain		73,258
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $2,912)		331,427
Investments in Affiliates		67,633
Foreign Currency Translation		(176	)
Derivative Contracts — PIPE		2,125
Net Change in Unrealized Appreciation (Depreciation)		401,009
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		474,267
Net Increase in Net Assets Resulting from Operations	$	474,106

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

International Advantage Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(161	)	$	(10,963	)
Net Realized Gain		73,258			8,518
Net Change in Unrealized Appreciation (Depreciation)		401,009			1,023,199
Net Increase in Net Assets Resulting from Operations		474,106			1,020,754
Dividends and Distributions to Shareholders:
Class I		—			(1,584	)
Class A		—			(247	)
Class C		—			(11	)
Class L		—			(—	@)
Class IS		—			(36	)
Total Dividends and Distributions to Shareholders		—			(1,878	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		867,961			1,715,375
Distributions Reinvested		—			1,565
Redeemed		(396,165	)		(634,403	)
Class A:
Subscribed		132,988			230,781
Distributions Reinvested		—			247
Redeemed		(84,664	)		(154,359	)
Class L:
Exchanged		—			50
Distributions Reinvested		—			—	@
Redeemed		(5	)		(5	)
Class C:
Subscribed		9,394			6,350
Distributions Reinvested		—			11
Redeemed		(1,993	)		(4,795	)
Class IS:
Subscribed		97,961			98,784
Distributions Reinvested		—			9
Redeemed		(6,967	)		(23,225	)
Net Increase in Net Assets Resulting from Capital Share Transactions		618,510			1,236,385
Redemption Fees		—	@		—
Total Increase in Net Assets		1,092,616			2,255,261
Net Assets:
Beginning of Period		4,553,897			2,298,636
End of Period	$	5,646,513		$	4,553,897

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

International Advantage Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		30,621			79,907
Shares Issued on Distributions Reinvested		—			59
Shares Redeemed		(14,022	)		(30,862	)
Net Increase in Class I Shares Outstanding		16,599			49,104
Class A:
Shares Subscribed		4,843			10,972
Shares Issued on Distributions Reinvested		—			9
Shares Redeemed		(3,066	)		(7,624	)
Net Increase in Class A Shares Outstanding		1,777			3,357
Class L:
Shares Exchanged		—			2
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		(—	@@)
Net Increase (Decrease) in Class L Shares Outstanding		(—	@@)		2
Class C:
Shares Subscribed		353			300
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(76	)		(256	)
Net Increase in Class C Shares Outstanding		277			44
Class IS:
Shares Subscribed		3,461			4,622
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(247	)		(1,035	)
Net Increase in Class IS Shares Outstanding		3,214			3,587

* Not consolidated.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Advantage Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	27.05		$	20.45		$	15.74		$	16.89		$	11.91		$	11.80
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.00	⁽⁴⁾		(0.07	)		0.06			0.04			0.00	⁽⁴⁾		0.02
Net Realized and Unrealized Gain (Loss)		2.64			6.68			4.67			(0.91	)		5.32			0.29
Total from Investment Operations		2.64			6.61			4.73			(0.87	)		5.32			0.31
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.00	)⁽⁴⁾		—			—			—
Net Realized Gain		—			—			(0.02	)		(0.28	)		(0.34	)		(0.20	)
Total Distributions		—			(0.01	)		(0.02	)		(0.28	)		(0.34	)		(0.20	)
Redemption Fees		0.00	⁽⁴⁾		—			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	29.69		$	27.05		$	20.45		$	15.74		$	16.89		$	11.91
Total Return⁽⁵⁾		9.76	%⁽⁸⁾		32.33	%		30.09	%		(5.19	)%		44.75	%		2.47	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,709,921		$	3,841,122		$	1,900,219		$	569,408		$	166,189		$	29,781
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.03	%		1.11	%		1.21	%		2.26	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁶⁾⁽⁹⁾		0.98	%⁽⁶⁾		0.98	%⁽⁶⁾		0.98	%⁽⁶⁾		0.98	%⁽⁶⁾		0.99	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.98	%⁽⁶⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.03	%⁽⁶⁾⁽⁹⁾		(0.31	)%⁽⁶⁾		0.32	%⁽⁶⁾		0.21	%⁽⁶⁾		0.02	%⁽⁶⁾		0.20	%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.02	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		6	%⁽⁸⁾		18	%		15	%		29	%		30	%		23	%

(1) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Advantage Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	26.58		$	20.16		$	15.56		$	16.75		$	11.86		$	11.79
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.04	)		(0.13	)		0.01			(0.02	)		(0.07	)		(0.00	)⁽⁴⁾
Net Realized and Unrealized Gain (Loss)		2.60			6.56			4.61			(0.89	)		5.30			0.27
Total from Investment Operations		2.56			6.43			4.62			(0.91	)		5.23			0.27
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		—			—			—			—
Net Realized Gain		—			—			(0.02	)		(0.28	)		(0.34	)		(0.20	)
Total Distributions		—			(0.01	)		(0.02	)		(0.28	)		(0.34	)		(0.20	)
Redemption Fees		0.00	⁽⁴⁾		—			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	29.14		$	26.58		$	20.16		$	15.56		$	16.75		$	11.86
Total Return⁽⁵⁾		9.63	%⁽⁸⁾		31.90	%		29.72	%		(5.48	)%		44.18	%		2.13	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	697,862		$	589,317		$	379,237		$	202,732		$	144,112		$	10,822
Ratio of Expenses Before Expense Limitation		N/A			N/A			1.30	%		1.37	%		1.42	%		2.55	%
Ratio of Expenses After Expense Limitation		1.23	%⁽⁶⁾⁽⁹⁾		1.27	%⁽⁶⁾		1.28	%⁽⁶⁾		1.33	%⁽⁶⁾		1.31	%⁽⁶⁾		1.34	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.27	%⁽⁶⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.25	)%⁽⁶⁾⁽⁹⁾		(0.60	)%⁽⁶⁾		0.04	%⁽⁶⁾		(0.10	)%⁽⁶⁾		(0.46	)%⁽⁶⁾		(0.04	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.02	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		6	%⁽⁸⁾		18	%		15	%		29	%		30	%		23	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Advantage Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	25.64		$	19.56		$	15.18		$	16.43		$	11.70		$	11.69
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.12	)		(0.24	)		(0.09	)		(0.09	)		(0.11	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		2.51			6.33			4.49			(0.88	)		5.18			0.27
Total from Investment Operations		2.39			6.09			4.40			(0.97	)		5.07			0.21
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		—			—			—			—
Net Realized Gain		—			—			(0.02	)		(0.28	)		(0.34	)		(0.20	)
Total Distributions		—			(0.01	)		(0.02	)		(0.28	)		(0.34	)		(0.20	)
Redemption Fees		0.00	⁽⁴⁾		—			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	28.03		$	25.64		$	19.56		$	15.18		$	16.43		$	11.70
Total Return⁽⁵⁾		9.32	%⁽⁸⁾		31.14	%		29.01	%		(5.95	)%		43.41	%		1.64	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	378		$	350		$	226		$	161		$	135		$	75
Ratio of Expenses Before Expense Limitation		2.17	%⁽⁹⁾		2.48	%		2.59	%		2.82	%		3.82	%		3.96	%
Ratio of Expenses After Expense Limitation		1.85	%⁽⁶⁾⁽⁹⁾		1.84	%⁽⁶⁾		1.83	%⁽⁶⁾		1.83	%⁽⁶⁾		1.84	%⁽⁶⁾		1.84	%(⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.84	%⁽⁶⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.89	)%⁽⁶⁾⁽⁹⁾		(1.17	)%⁽⁶⁾		(0.48	)%⁽⁶⁾		(0.55	)%⁽⁶⁾		(0.77	)%⁽⁶⁾		(0.52	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.02	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		6	%⁽⁸⁾		18	%		15	%		29	%		30	%		23	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Advantage Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	25.29		$	19.31		$	15.02		$	16.30		$	11.63		$	11.66
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.12	)		(0.26	)		(0.12	)		(0.15	)		(0.17	)		(0.11	)
Net Realized and Unrealized Gain (Loss)		2.45			6.25			4.43			(0.85	)		5.18			0.28
Total from Investment Operations		2.33			5.99			4.31			(1.00	)		5.01			0.17
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		—			—			—			—
Net Realized Gain		—			—			(0.02	)		(0.28	)		(0.34	)		(0.20	)
Total Distributions		—			(0.01	)		(0.02	)		(0.28	)		(0.34	)		(0.20	)
Redemption Fees		0.00	⁽⁴⁾		—			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	27.62		$	25.29		$	19.31		$	15.02		$	16.30		$	11.63
Total Return⁽⁵⁾		9.25	%⁽⁸⁾		31.03	%		28.72	%		(6.18	)%		43.16	%		1.38	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	34,882		$	24,926		$	18,180		$	11,087		$	6,760		$	1,067
Ratio of Expenses Before Expense Limitation		N/A			N/A			2.03	%		2.10	%		2.25	%		3.60	%
Ratio of Expenses After Expense Limitation		1.94	%⁽⁶⁾⁽⁹⁾		1.97	%⁽⁶⁾		2.01	%⁽⁶⁾		2.07	%⁽⁶⁾		2.08	%⁽⁶⁾		2.09	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.97	%⁽⁶⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.93	)%⁽⁶⁾⁽⁹⁾		(1.29	)%⁽⁶⁾		(0.69	)%⁽⁶⁾		(0.88	)%⁽⁶⁾		(1.12	)%⁽⁶⁾		(0.91	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.02	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		6	%⁽⁸⁾		18	%		15	%		29	%		30	%		23	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Advantage Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	27.09		$	20.46		$	15.75		$	18.90
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.03			(0.06	)		0.05			(0.00	)⁽⁴⁾
Net Realized and Unrealized Gain (Loss)		2.63			6.70			4.69			(2.87	)
Total from Investment Operations		2.66			6.64			4.74			(2.87	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		(0.01	)		—
Net Realized Gain		—			—			(0.02	)		(0.28	)
Total Distributions		—			(0.01	)		(0.03	)		(0.28	)
Redemption Fees		0.00	⁽⁴⁾		—			0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	29.75		$	27.09		$	20.46		$	15.75
Total Return⁽⁵⁾		9.82	%⁽⁸⁾		32.46	%		30.14	%		(15.22	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	203,470		$	98,182		$	774		$	8
Ratio of Expenses Before Expense Limitation		N/A			N/A		��	3.28	%		19.51	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.87	%⁽⁶⁾⁽⁹⁾		0.89	%⁽⁶⁾		0.93	%⁽⁶⁾		0.93	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.89	%⁽⁶⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		0.21	%⁽⁶⁾⁽⁹⁾		(0.26	)%⁽⁶⁾		0.24	%⁽⁶⁾		(0.04	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.02	%		0.02	%⁽⁹⁾
Portfolio Turnover Rate		6	%⁽⁸⁾		18	%		15	%		29	%

(1) Not consolidated.

(2) Commencement of Offering.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the International Advantage Portfolio. The Fund seeks long-term capital appreciation.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

The Fund may, 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, International Advantage Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $22,772,000 or approximately 0.40% of the total net assets of the Fund.

receive no more than ten percent of its gross income from such investments in order to receive favorable tax treatment as a regulated investment company ("RIC"). Tax treatment of the income received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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; (6) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (7) investments in mutual funds, including the Morgan Stanley Institutional

Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Air Freight & Logistics	$	447,903	$	—	$	—	$	447,903
Banks		337,138		—		—		337,138
Beverages		320,673		—		—		320,673
Biotechnology		84,104		—		—		84,104
Capital Markets		203,257		—		—		203,257
Chemicals		118,102		—		—		118,102
Diversified Consumer Services		83,236		—		—		83,236
Electronic Equipment, Instruments & Components		246,446		—		—		246,446
Food Products		294,069		—		—		294,069
Health Care Equipment & Supplies		160,051		—		—		160,051
Hotels, Restaurants & Leisure		129,136		—		—		129,136
Household Products		136,732		—		—		136,732
Information Technology Services		407,972		—		—		407,972
Insurance		157,491		—		—		157,491
Interactive Media & Services		182,707		—		—		182,707

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	$	101,270	$	—	$	—	$	101,270
Marine		117,860		—		—		117,860
Multi-Utilities		188,788		—		—		188,788
Semiconductors & Semiconductor Equipment		560,689		—		—		560,689
Software		96,240		—		—		96,240
Textiles, Apparel & Luxury Goods		963,910		—		—		963,910
Total Common Stocks		5,337,774		—		—		5,337,774
Investment Company		18,463		—		—		18,463
Short-Term Investment
Investment Company		274,433		—		—		274,433
Derivative Contract — PIPE		—		—		2,125		2,125
Total Assets	$	5,630,670	$	—	$	2,125	$	5,632,795

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:

	Derivative Contract — PIPE (000)
Beginning Balance	$	—
Purchases		—
Sales		—
PIPE transactions		2,125
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	2,125
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	2,125

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2021:

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

PIPE

2,125

Market Implied

Discount for Lack
of Marketability
and Transaction
Risk

10.0

Decrease

* Amount is indicative of the weighted average.

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.

Foreign security and currency transactions may involve certain considerations and risks not typically associated

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

with those of U.S. dollar denominated transactions as a result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

(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:

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Appreciation on
Derivative Contract — PIPE

Equity Risk

2,125

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Derivative Contract — PIPE	$	2,125

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities (000)
Derivative Contract — PIPE	$	2,125	$	—

(a) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Derivative Contract — PIPE:
Average monthly notional amount				$	40,096,000

on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund's Consolidated Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

At June 30, 2021, the Fund did not have any outstanding securities on loan.

Restricted securities are identified in the Consolidated Portfolio of Investments.

9. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment in-

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

come, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

10. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.76% of the Fund's average daily net assets.

they deem such action is appropriate. For the six months ended June 30, 2021, approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

0.50% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class L shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $1,000,538,000 and $275,797,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

advisory fees paid were reduced by approximately $85,000 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, 2021 is as follows:

Affiliated Investment Company/Issuer	Value December 31, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	374,199	$	655,574	$	755,340	$	14
Canada Goose Holdings, Inc.		142,867		11,432		11,085		—
	$	517,066	$	667,006	$	766,425	$	14

Affiliated Investment Company/Issuer (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value June 30, 2021 (000)
Liquidity Funds	$	—	$	—	$	274,433
Canada Goose Holdings, Inc.		2,551		67,633		213,398
	$	2,551	$	67,633	$	487,831

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	1,866	$	12	$	701	$	2,176

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	14,881			$	(14,881	)

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	—			$	6,448

K. Market Risk and Risks Relating to Certain Financial Instruments:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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. The Board noted that the Fund's 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management 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

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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIIASAN
3691588 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

International Equity Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					16
Investment Advisory Agreement Approval					23
Liquidity Risk Management Program					25
U.S. Customer Privacy Notice					26
Director and Officer Information					29

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in International Equity Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

International Equity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
International Equity Portfolio Class I	$	1,000.00	$	1,071.60	$	1,020.08	$	4.88	$	4.76		0.95	%
International Equity Portfolio Class A		1,000.00		1,070.60		1,019.04		5.96		5.81		1.16
International Equity Portfolio Class L		1,000.00		1,067.30		1,016.02		9.07		8.85		1.77
International Equity Portfolio Class C		1,000.00		1,065.20		1,014.63		10.50		10.24		2.05
International Equity Portfolio Class IS		1,000.00		1,071.60		1,020.28		4.67		4.56		0.91

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

International Equity Portfolio

	Shares		Value (000)
Common Stocks (97.9%)
Australia (0.7%)
Aristocrat Leisure Ltd.		512,922	$	16,575
Canada (5.8%)
Barrick Gold Corp.		2,468,094		51,050
Cameco Corp.		532,961		10,216
Constellation Software, Inc.		45,413		68,779
				130,045
China (3.2%)
Minth Group Ltd. (a)		3,744,000		17,794
Tencent Holdings Ltd. (a)		713,600		53,674
				71,468
Finland (1.1%)
Neste Oyj		410,483		25,135
France (14.1%)
AXA SA		1,234,027		31,292
L'Oreal SA (BSRM)		33,668		15,003
Legrand SA		109,997		11,642
LVMH Moet Hennessy Louis Vuitton SE		67,953		53,284
Pernod Ricard SA		263,083		58,397
Safran SA		337,752		46,825
Sanofi		620,395		65,001
Thales SA		349,991		35,707
				317,151
Germany (18.2%)
Adidas AG		91,413		34,025
Bayer AG (Registered)		565,994		34,369
Deutsche Boerse AG		204,345		35,667
Deutsche Post AG (Registered)		969,090		65,912
Fresenius SE & Co., KGaA		1,178,258		61,466
Henkel AG & Co., KGaA (Preference)		732,123		77,297
Infineon Technologies AG		389,090		15,603
QIAGEN N.V. (b)		242,851		11,737
SAP SE		527,658		74,355
				410,431
Hong Kong (2.6%)
AIA Group Ltd.		4,642,200		57,696
Italy (2.4%)
Moncler SpA		794,033		53,723
Japan (7.9%)
FANUC Corp.		111,600		26,917
Hoya Corp.		212,600		28,189
Keyence Corp.		59,400		29,979
Kirin Holdings Co., Ltd. (c)		1,829,600		35,671
Lion Corp. (c)		440,500		7,462
Shiseido Co., Ltd.		362,300		26,647
Sumitomo Mitsui Financial Group, Inc.		687,351		23,697
				178,562
Korea, Republic of (3.1%)
LG Household & Health Care Ltd.		21,948		34,340
Samsung Electronics Co., Ltd.		509,858		36,537
				70,877

	Shares		Value (000)
Netherlands (2.3%)
Heineken N.V.		429,483	$	52,046
Norway (1.1%)
Mowi ASA (c)		963,909		24,517
Singapore (2.2%)
DBS Group Holdings Ltd.		815,259		18,073
United Overseas Bank Ltd.		1,636,500		31,423
				49,496
Spain (1.4%)
Grifols SA		1,210,557		32,785
Sweden (2.4%)
Epiroc AB, Class A		900,551		20,520
Hexagon AB, Class B		2,238,149		33,161
				53,681
Switzerland (5.1%)
Alcon, Inc.		133,033		9,314
Novartis AG (Registered)		624,602		56,921
Roche Holding AG (Genusschein)		127,310		47,959
				114,194
Taiwan (2.2%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		406,388		48,832
United Kingdom (22.1%)
Anglo American PLC		494,432		19,646
Associated British Foods PLC		1,350,361		41,394
AstraZeneca PLC		233,255		28,017
BHP Group PLC (c)		745,698		21,971
British American Tobacco PLC		1,432,662		55,490
Experian PLC		533,221		20,550
GlaxoSmithKline PLC		1,048,829		20,593
Imperial Brands PLC		1,723,069		37,111
Legal & General Group PLC		7,151,374		25,483
M&G PLC		4,351,203		13,778
Man Group PLC		5,388,921		13,414
Prudential PLC		2,951,671		56,081
Reckitt Benckiser Group PLC		887,767		78,558
RELX PLC (Euronext N.V.)		1,311,863		34,969
RELX PLC (LSE)		1,095,536		29,082
				496,137
Total Common Stocks (Cost $1,416,198)				2,203,351
Short-Term Investment (2.2%)
Investment Company (2.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $48,444)		48,444,286		48,444
Total Investments (100.1%) (Cost $1,464,642) Including $43,861 of Securities Loaned (d)				2,251,795
Liabilities in Excess of Other Assets (–0.1%)				(2,733	)
Net Assets (100.0%)			$	2,249,062

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

International Equity Portfolio

(a) Security trades on the Hong Kong exchange.

(b) Non-income producing security.

(d) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $816,548,000 and the aggregate gross unrealized depreciation is approximately $29,395,000, resulting in net unrealized appreciation of approximately $787,153,000.

ADR American Depositary Receipt.

Euronext N.V. Euronext Amsterdam Stock Market.

LSE London Stock Exchange.

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		54.8	%
Pharmaceuticals		11.2
Insurance		7.6
Household Products		7.2
Beverages		6.5
Software		6.4
Textiles, Apparel & Luxury Goods		6.3
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Equity Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $1,416,198)	$	2,203,351
Investment in Security of Affiliated Issuer, at Value (Cost $48,444)		48,444
Total Investments in Securities, at Value (Cost $1,464,642)		2,251,795
Foreign Currency, at Value (Cost $2,098)		2,094
Tax Reclaim Receivable		6,260
Receivable for Investments Sold		4,133
Dividends Receivable		1,397
Receivable for Fund Shares Sold		324
Receivable from Affiliate		—	@
Other Assets		341
Total Assets		2,266,344
Liabilities:
Payable for Investments Purchased		10,414
Payable for Advisory Fees		4,256
Payable for Fund Shares Redeemed		1,852
Payable for Sub Transfer Agency Fees — Class I		120
Payable for Sub Transfer Agency Fees — Class A		98
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		151
Payable for Custodian Fees		87
Payable for Professional Fees		37
Payable for Shareholder Services Fees — Class A		13
Payable for Distribution and Shareholder Services Fees — Class H		3
Payable for Distribution and Shareholder Services Fees — Class L		4
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Transfer Agency Fees — Class I		4
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		1
Other Liabilities		237
Total Liabilities		17,282
Net Assets	$	2,249,062
Net Assets Consist of:
Paid-in-Capital	$	1,368,007
Total Distributable Earnings		881,055
Net Assets	$	2,249,062

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Equity Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	1,661,400
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		95,703,114
Net Asset Value, Offering and Redemption Price Per Share	$	17.36
CLASS A:
Net Assets	$	61,443
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,554,141
Net Asset Value, Redemption Price Per Share	$	17.29
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.96
Maximum Offering Price Per Share	$	18.25
CLASS L:
Net Assets	$	5,739
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		337,975
Net Asset Value, Offering and Redemption Price Per Share	$	16.98
CLASS C:
Net Assets	$	985
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		59,133
Net Asset Value, Offering and Redemption Price Per Share	$	16.66
CLASS IS:
Net Assets	$	519,495
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		29,935,943
Net Asset Value, Offering and Redemption Price Per Share	$	17.35
⁽¹⁾ Including: Securities on Loan, at Value:	$	43,861

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Equity Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $3,576 of Foreign Taxes Withheld)	$	37,673
Income from Securities Loaned — Net		132
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		37,807
Expenses:
Advisory Fees (Note B)		8,800
Administration Fees (Note C)		880
Sub Transfer Agency Fees — Class I		776
Sub Transfer Agency Fees — Class L		2
Sub Transfer Agency Fees — Class C		—	@
Custodian Fees (Note F)		111
Shareholder Services Fees — Class A (Note D)		76
Distribution and Shareholder Services Fees — Class L (Note D)		21
Distribution and Shareholder Services Fees — Class C (Note D)		4
Professional Fees		60
Registration Fees		40
Shareholder Reporting Fees		24
Transfer Agency Fees — Class I (Note E)		7
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Directors' Fees and Expenses		14
Pricing Fees		2
Other Expenses		22
Total Expenses		10,847
Reimbursement of Class Specific Expenses — Class I (Note B)		(416	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(11	)
Net Expenses		10,419
Net Investment Income		27,388
Realized Gain:
Investments Sold		76,781
Foreign Currency Translation		229
Net Realized Gain		77,010
Change in Unrealized Appreciation (Depreciation):
Investments		48,927
Foreign Currency Translation		(612	)
Net Change in Unrealized Appreciation (Depreciation)		48,315
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		125,325
Net Increase in Net Assets Resulting from Operations	$	152,713

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

International Equity Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	27,388		$	25,210
Net Realized Gain		77,010			29,786
Net Change in Unrealized Appreciation (Depreciation)		48,315			162,298
Net Increase in Net Assets Resulting from Operations		152,713			217,294
Dividends and Distributions to Shareholders:
Class I		—			(22,399	)
Class A		—			(490	)
Class L		—			(34	)
Class C		—			(3	)
Class IS		—			(6,466	)
Total Dividends and Distributions to Shareholders		—			(29,392	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		56,309			237,301
Distributions Reinvested		—			21,904
Redeemed		(167,248	)		(308,283	)
Class A:
Subscribed		2,325			39,120
Distributions Reinvested		—			476
Redeemed		(5,356	)		(171,574	)
Class L:
Exchanged		36			241
Distributions Reinvested		—			33
Redeemed		(178	)		(1,044	)
Class C:
Subscribed		175			294
Distributions Reinvested		—			3
Redeemed		(22	)		(261	)
Class IS:
Subscribed		45,490			25,414
Distributions Reinvested		—			5,225
Redeemed		(28,433	)		(58,967	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(96,902	)		(210,118	)
Total Increase (Decrease) in Net Assets		55,811			(22,216	)
Net Assets:
Beginning of Period		2,193,251			2,215,467
End of Period	$	2,249,062		$	2,193,251

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

International Equity Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,336			18,766
Shares Issued on Distributions Reinvested		—			1,370
Shares Redeemed		(9,985	)		(22,218	)
Net Decrease in Class I Shares Outstanding		(6,649	)		(2,082	)
Class A:
Shares Subscribed		139			3,333
Shares Issued on Distributions Reinvested		—			30
Shares Redeemed		(321	)		(14,121	)
Net Decrease in Class A Shares Outstanding		(182	)		(10,758	)
Class L:
Shares Exchanged		3			20
Shares Issued on Distributions Reinvested		—			2
Shares Redeemed		(11	)		(82	)
Net Decrease in Class L Shares Outstanding		(8	)		(60	)
Class C:
Shares Subscribed		10			21
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		(19	)
Net Increase in Class C Shares Outstanding		9			2
Class IS:
Shares Subscribed		2,735			1,798
Shares Issued on Distributions Reinvested		—			327
Shares Redeemed		(1,708	)		(4,190	)
Net Increase (Decrease) in Class IS Shares Outstanding		1,027			(2,065	)

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Equity Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	16.20		$	14.74		$	13.49		$	17.97		$	14.64		$	15.10
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.21			0.18			0.28			0.31			0.26			0.27
Net Realized and Unrealized Gain (Loss)		0.95			1.50			2.47			(2.78	)		3.41			(0.57	)
Total from Investment Operations		1.16			1.68			2.75			(2.47	)		3.67			(0.30	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.32	)		(0.39	)		(0.34	)		(0.16	)
Net Realized Gain		—			—			(1.18	)		(1.62	)		—			—
Total Distributions		—			(0.22	)		(1.50	)		(2.01	)		(0.34	)		(0.16	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	17.36		$	16.20		$	14.74		$	13.49		$	17.97		$	14.64
Total Return⁽⁴⁾		7.16	%⁽⁷⁾		11.42	%		20.37	%		(13.80	)%		25.17	%		(2.00	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,661,400		$	1,658,464		$	1,539,709		$	1,725,392		$	1,691,807		$	1,719,699
Ratio of Expenses Before Expense Limitation		1.00	%⁽⁸⁾		1.00	%		1.00	%		0.99	%		0.99	%		0.98	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.95	%⁽⁵⁾		N/A			N/A			0.95	%⁽⁵⁾
Ratio of Net Investment Income		2.48	%⁽⁵⁾⁽⁸⁾		1.28	%⁽⁵⁾		1.86	%⁽⁵⁾		1.82	%⁽⁵⁾		1.54	%⁽⁵⁾		1.86	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		10	%⁽⁷⁾		20	%		20	%		34	%		18	%		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 and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Equity Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	16.15		$	14.67		$	13.42		$	17.75		$	14.46		$	14.91
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.19			0.11			0.24			0.32			0.19			0.23
Net Realized and Unrealized Gain (Loss)		0.95			1.50			2.46			(2.82	)		3.38			(0.58	)
Total from Investment Operations		1.14			1.61			2.70			(2.50	)		3.57			(0.35	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.13	)		(0.27	)		(0.21	)		(0.28	)		(0.10	)
Net Realized Gain		—			—			(1.18	)		(1.62	)		—			—
Total Distributions		—			(0.13	)		(1.45	)		(1.83	)		(0.28	)		(0.10	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	17.29		$	16.15		$	14.67		$	13.42		$	17.75		$	14.46
Total Return⁽⁴⁾		7.06	%⁽⁷⁾		11.00	%		20.11	%		(14.13	)%		24.77	%		(2.33	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	61,443		$	60,346		$	212,578		$	244,622		$	1,231,279		$	1,176,835
Ratio of Expenses Before Expense Limitation		N/A			1.43	%		1.25	%		1.31	%		1.31	%		1.30	%
Ratio of Expenses After Expense Limitation		1.16	%⁽⁵⁾⁽⁸⁾		1.30	%⁽⁵⁾		1.25	%⁽⁵⁾		1.30	%⁽⁵⁾		1.30	%⁽⁵⁾		1.29	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.25	%⁽⁵⁾		N/A			N/A			1.29	%⁽⁵⁾
Ratio of Net Investment Income		2.25	%⁽⁵⁾⁽⁸⁾		0.80	%⁽⁵⁾		1.62	%⁽⁵⁾		1.83	%		1.16	%		1.60	%
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%
Portfolio Turnover Rate		10	%⁽⁷⁾		20	%		20	%		34	%		18	%		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 A shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Equity Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	15.91		$	14.50		$	13.28		$	17.70		$	14.43		$	14.87
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.13			0.06			0.15			0.10			0.11			0.16
Net Realized and Unrealized Gain (Loss)		0.94			1.45			2.44			(2.66	)		3.35			(0.58	)
Total from Investment Operations		1.07			1.51			2.59			(2.56	)		3.46			(0.42	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.10	)		(0.19	)		(0.24	)		(0.19	)		(0.02	)
Net Realized Gain		—			—			(1.18	)		(1.62	)		—			—
Total Distributions		—			(0.10	)		(1.37	)		(1.86	)		(0.19	)		(0.02	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	16.98		$	15.91		$	14.50		$	13.28		$	17.70		$	14.43
Total Return⁽⁴⁾		6.73	%⁽⁷⁾		10.40	%		19.48	%		(14.49	)%		24.06	%		(2.82	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,739		$	5,513		$	5,888		$	6,022		$	7,099		$	7,008
Ratio of Expenses Before Expense Limitation		N/A			1.83	%		1.79	%		N/A			1.90	%		1.93	%
Ratio of Expenses After Expense Limitation		1.77	%⁽⁵⁾⁽⁸⁾		1.80	%⁽⁵⁾		1.78	%⁽⁵⁾		1.72	%⁽⁵⁾		1.80	%⁽⁵⁾		1.80	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.78	%⁽⁵⁾		N/A			N/A			1.80	%⁽⁵⁾
Ratio of Net Investment Income		1.60	%⁽⁵⁾⁽⁸⁾		0.41	%⁽⁵⁾		1.06	%⁽⁵⁾		1.17	%⁽⁵⁾		0.69	%⁽⁵⁾		1.09	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		10	%⁽⁷⁾		20	%		20	%		34	%		18	%		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 L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Equity Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	15.64		$	14.26		$	13.08		$	17.51		$	14.31		$	14.77
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.11			0.02			0.10			0.05			0.04			0.14
Net Realized and Unrealized Gain (Loss)		0.91			1.43			2.41			(2.64	)		3.35			(0.58	)
Total from Investment Operations		1.02			1.45			2.51			(2.59	)		3.39			(0.44	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.07	)		(0.15	)		(0.22	)		(0.19	)		(0.02	)
Net Realized Gain		—			—			(1.18	)		(1.62	)		—			—
Total Distributions		—			(0.07	)		(1.33	)		(1.84	)		(0.19	)		(0.02	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	16.66		$	15.64		$	14.26		$	13.08		$	17.51		$	14.31
Total Return⁽⁴⁾		6.52	%⁽⁷⁾		10.17	%		19.18	%		(14.82	)%		23.78	%		(3.01	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	985		$	776		$	674		$	787		$	677		$	476
Ratio of Expenses Before Expense Limitation		2.20	%⁽⁸⁾		2.41	%		2.35	%		2.27	%		2.41	%		2.40	%
Ratio of Expenses After Expense Limitation		2.05	%⁽⁵⁾⁽⁸⁾		2.05	%⁽⁵⁾		2.05	%⁽⁵⁾		2.05	%⁽⁵⁾		2.05	%⁽⁵⁾		2.05	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			2.05	%⁽⁵⁾		N/A			N/A			2.05	%⁽⁵⁾
Ratio of Net Investment Income		1.42	%⁽⁵⁾		0.15	%⁽⁵⁾		0.73	%⁽⁵⁾		0.83	%⁽⁵⁾		0.22	%⁽⁵⁾		0.95	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		10	%⁽⁷⁾		20	%		20	%		34	%		18	%		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 C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

International Equity Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	16.19		$	14.74		$	13.48		$	17.97		$	14.64		$	15.10
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.21			0.18			0.29			0.38			0.26			0.29
Net Realized and Unrealized Gain (Loss)		0.95			1.50			2.48			(2.86	)		3.42			(0.59	)
Total from Investment Operations		1.16			1.68			2.77			(2.48	)		3.68			(0.30	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.23	)		(0.33	)		(0.39	)		(0.35	)		(0.16	)
Net Realized Gain		—			—			(1.18	)		(1.62	)		—			—
Total Distributions		—			(0.23	)		(1.51	)		(2.01	)		(0.35	)		(0.16	)
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	17.35		$	16.19		$	14.74		$	13.48		$	17.97		$	14.64
Total Return⁽⁴⁾		7.16	%⁽⁷⁾		11.39	%		20.42	%		(13.76	)%		25.22	%		(1.95	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	519,495		$	468,152		$	456,618		$	462,752		$	1,230,104		$	1,058,165
Ratio of Expenses Before Expense Limitation		0.91	%⁽⁸⁾		0.91	%		0.91	%		N/A			0.91	%		0.91	%
Ratio of Expenses After Expense Limitation		0.91	%⁽⁵⁾⁽⁸⁾		0.91	%⁽⁵⁾		0.91	%⁽⁵⁾		0.90	%⁽⁵⁾		0.91	%⁽⁵⁾		0.91	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.91	%⁽⁵⁾		N/A			N/A			0.91	%⁽⁵⁾
Ratio of Net Investment Income		2.53	%⁽⁵⁾⁽⁸⁾		1.31	%⁽⁵⁾		1.94	%⁽⁵⁾		2.19	%⁽⁵⁾		1.52	%⁽⁵⁾		1.96	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		10	%⁽⁷⁾		20	%		20	%		34	%		18	%		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 IS shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) 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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the International Equity Portfolio. The Fund seeks long-term capital appreciation by investing primarily in equity securities of non-U.S. issuers.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	82,532	$	—	$	—	$	82,532
Air Freight & Logistics		65,912		—		—		65,912
Auto Components		17,794		—		—		17,794
Banks		73,193		—		—		73,193
Beverages		146,114		—		—		146,114

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Biotechnology	$	32,785	$	—	$	—	$	32,785
Capital Markets		49,081		—		—		49,081
Diversified Financial Services		13,778		—		—		13,778
Electrical Equipment		11,642		—		—		11,642
Electronic Equipment, Instruments & Components		63,140		—		—		63,140
Food Products		65,911		—		—		65,911
Health Care Equipment & Supplies		37,503		—		—		37,503
Health Care Providers & Services		61,466		—		—		61,466
Hotels, Restaurants & Leisure		16,575		—		—		16,575
Household Products		163,317		—		—		163,317
Insurance		170,552		—		—		170,552
Interactive Media & Services		53,674		—		—		53,674
Life Sciences Tools & Services		11,737		—		—		11,737
Machinery		47,437		—		—		47,437
Metals & Mining		92,667		—		—		92,667
Oil, Gas & Consumable Fuels		35,351		—		—		35,351
Personal Products		75,990		—		—		75,990
Pharmaceuticals		252,860		—		—		252,860
Professional Services		84,601		—		—		84,601
Semiconductors & Semiconductor Equipment		64,435		—		—		64,435
Software		143,134		—		—		143,134
Tech Hardware, Storage & Peripherals		36,537		—		—		36,537
Textiles, Apparel & Luxury Goods		141,032		—		—		141,032
Tobacco		92,601		—		—		92,601
Total Common Stocks		2,203,351		—		—		2,203,351
Short-Term Investment
Investment Company		48,444		—		—		48,444
Total Assets	$	2,251,795	$	—	$	—	$	2,251,795

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	43,861	(a)	$	—	$	(43,861	)(b)(c)	$	0

(a) Represents market value of loaned securities at period end.

(b) The Fund received non-cash collateral of approximately $46,332,000 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

First $3 billion				Over $3 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of 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 0.95% for Class I shares, 1.30% for Class A shares, 1.80% for Class L shares, 2.05% for Class C shares and 0.91% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $417,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $209,477,000 and $277,861,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by approximately $11,000 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, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	39,382			$	167,187			$	158,125			$	2

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	48,444

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

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, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	29,392	$	—	$	43,718	$	164,037

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

which may differ from GAAP. These book/tax 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, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	1,945			$	26,648

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 higher than but close to 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIIESAN
3689345 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

International Opportunity Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					7
Consolidated Statement of Operations					9
Consolidated Statements of Changes in Net Assets					10
Consolidated Financial Highlights					12
Notes to Consolidated Financial Statements					18
Investment Advisory Agreement Approval					29
Liquidity Risk Management Program					31
U.S. Customer Privacy Notice					32
Director and Officer Information					35

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in International Opportunity Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

International Opportunity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
International Opportunity Portfolio Class I	$	1,000.00	$	1,054.50	$	1,020.08	$	4.84	$	4.76		0.95	%
International Opportunity Portfolio Class A		1,000.00		1,053.20		1,018.74		6.21		6.11		1.22
International Opportunity Portfolio Class L		1,000.00		1,050.00		1,015.62		9.40		9.25		1.85
International Opportunity Portfolio Class C		1,000.00		1,049.40		1,015.17		9.86		9.69		1.94
International Opportunity Portfolio Class IS		1,000.00		1,055.10		1,020.48		4.43		4.36		0.87
International Opportunity Portfolio Class IR		1,000.00		1,055.10		1,020.48		4.43		4.36		0.87

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

International Opportunity Portfolio

	Shares		Value (000)
Common Stocks (97.5%)
Argentina (0.8%)
Globant SA (a)		190,026	$	41,650
Canada (9.0%)
Canada Goose Holdings, Inc. (See Note G) (a)		3,616,634		158,191
Shopify, Inc., Class A (a)		203,021		296,610
				454,801
China (21.3%)
Alibaba Group Holding Ltd. ADR (a)		435,212		98,697
DIDI Global, Inc. ADR		4,759,595		69,942
Foshan Haitian Flavouring & Food Co., Ltd., Class A		6,483,817		129,396
HUYA, Inc. ADR (See Note G) (a)(b)		4,582,289		80,877
Kuaishou Technology		2,782,700		67,721
Meituan, Class B (a)(c)		6,131,000		253,001
New Frontier Health Corp. SPAC (a)		1,583,308		17,686
Shenzhou International Group Holdings Ltd. (c)		2,125,400		53,681
TAL Education Group ADR (a)		3,865,604		97,529
Tencent Holdings Ltd. (c)		1,148,700		86,401
Trip.com Group Ltd. ADR (a)		3,346,259		118,658
				1,073,589
Denmark (5.8%)
DSV Panalpina A/S		1,251,238		291,798
France (4.1%)
Hermes International		141,274		205,793
Germany (6.6%)
Adidas AG		194,551		72,413
HelloFresh SE (a)		2,653,290		257,921
				330,334
India (7.3%)
HDFC Bank Ltd.		11,717,904		236,139
ICICI Bank Ltd. ADR (a)		4,599,046		78,644
Kotak Mahindra Bank Ltd. (a)		2,195,498		50,386
				365,169
Italy (4.3%)
Moncler SpA		3,173,459		214,713
Japan (4.3%)
Change, Inc. (a)(b)		1,019,800		27,401
Keyence Corp.		315,200		159,082
Pigeon Corp.		1,078,500		30,386
				216,869
Korea, Republic of (3.1%)
NAVER Corp.		422,416		156,603
Netherlands (5.2%)
Adyen N.V. (a)		51,714		126,350
ASML Holding N.V.		195,882		134,575
				260,925
Norway (0.7%)
Kahoot ASA (a)		4,996,824		34,240

	Shares		Value (000)
Sweden (5.4%)
Evolution AB		1,303,246	$	205,946
Vitrolife AB		1,643,698		68,298
				274,244
Taiwan (3.0%)
Taiwan Semiconductor Manufacturing Co., Ltd.		7,061,000		150,787
United Kingdom (3.0%)
Deliveroo PLC (a)(b)		26,073,858		104,020
Fevertree Drinks PLC		1,248,814		44,448
				148,468
United States (13.6%)
Coupang, Inc. (a)		506,690		21,190
EPAM Systems, Inc. (a)		345,638		176,607
Farfetch Ltd., Class A (a)		2,879,551		145,014
MercadoLibre, Inc. (a)		73,352		114,267
Spotify Technology SA (a)		823,715		227,007
				684,085
Total Common Stocks (Cost $3,274,097)				4,904,068
Investment Company (0.3%)
United States (0.3%)
Grayscale Bitcoin Trust (a) (Cost $28,967)		574,799		17,135
Short-Term Investments (5.8%)
Securities held as Collateral on Loaned Securities (2.1%)
Investment Company (1.8%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		90,638,990		90,639
	Face Amount (000)
Repurchase Agreements (0.3%)
HSBC Securities USA, Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $4,267; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $4,353)	$	4,267		4,267
Merrill Lynch & Co., Inc., (0.05%, dated 6/30/21, due 7/1/21; proceeds $11,949; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 12/30/21 - 8/15/43; valued at $12,188)		11,949		11,949
				16,216
Total Securities held as Collateral on Loaned Securities (Cost $106,855)				106,855

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

International Opportunity Portfolio

	Shares		Value (000)
Investment Company (3.7%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $183,863)		183,862,881	$	183,863
Total Short-Term Investments (Cost $290,718)				290,718
Total Investments (103.6%) (Cost $3,593,782) Including $151,613 of Securities Loaned (d)(e)				5,211,921
Liabilities in Excess of Other Assets (–3.6%)				(178,755	)
Net Assets (100.0%)			$	5,033,166

The Fund had the following Derivative Contract — PIPE open at June 30, 2021:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Appreciation (000)				% of Net Assets
Altimeter Growth Corp				Grab Holdings, Inc. (a)(f)(g)(h)(i)				$	38,189,810			12/31/21				$	2,024				0.04	%

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2021.

(d) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,801,682,000 and the aggregate gross unrealized depreciation is approximately $181,519,000, resulting in net unrealized appreciation of approximately $1,620,163,000.

(e) Securities are available for collateral in connection with securities purchased on a forward commitment basis.

(f) 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 derivative contract (excluding 144A holdings) at June 30, 2021 amounts to approximately $2,024,000 and represents less than 0.05% of net assets.

(g) At June 30, 2021, the Fund held a fair valued derivative contract valued at approximately $2,024,000, representing less than 0.05% of net assets. This holding 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

(h) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 3,818,981 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

International Opportunity Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Internet & Direct Marketing Retail		21.8	%
Other**		20.0
Textiles, Apparel & Luxury Goods		13.8
Information Technology Services		13.1
Banks		7.2
Entertainment		6.7
Interactive Media & Services		6.1
Air Freight & Logistics		5.7
Semiconductors & Semiconductor Equipment		5.6
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** Industries and/or investment types representing less than 5% of total investments.

*** Does not include an open PIPE contract with total unrealized appreciation of approximately $2,024,000.

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $3,131,941)	$	4,698,351
Investment in Security of Affiliated Issuer, at Value (Cost $461,841)		513,570
Total Investments in Securities, at Value (Cost $3,593,782)		5,211,921
Foreign Currency, at Value (Cost $4,737)		4,639
Cash from Securities Lending		3,098
Receivable for Fund Shares Sold		8,665
Dividends Receivable		1,644
Tax Reclaim Receivable		499
Receivable from Securities Lending Income		273
Receivable from Affiliate		1
Unrealized Appreciation on Derivative Contract — PIPE		2,024
Other Assets		848
Total Assets		5,233,612
Liabilities:
Collateral on Securities Loaned, at Value		109,953
Payable for Investments Purchased		69,942
Payable for Advisory Fees		9,200
Deferred Capital Gain Country Tax		6,904
Payable for Fund Shares Redeemed		3,550
Payable for Administration Fees		324
Payable for Shareholder Services Fees — Class A		158
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		88
Payable for Custodian Fees		166
Payable for Professional Fees		49
Payable for Transfer Agency Fees — Class I		29
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		3
Payable for Transfer Agency Fees — Class IS		1
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Organization Costs for Subsidiary		14
Payable for Sub Transfer Agency Fees — Class L		—	@
Other Liabilities		63
Total Liabilities		200,446
Net Assets	$	5,033,166
Net Assets Consist of:
Paid-in-Capital	$	3,271,738
Total Distributable Earnings		1,761,428
Net Assets	$	5,033,166

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Opportunity Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	3,845,216
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		87,943,833
Net Asset Value, Offering and Redemption Price Per Share	$	43.72
CLASS A:
Net Assets	$	792,042
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		18,534,546
Net Asset Value, Redemption Price Per Share	$	42.73
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	2.37
Maximum Offering Price Per Share	$	45.10
CLASS L:
Net Assets	$	527
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		12,937
Net Asset Value, Offering and Redemption Price Per Share	$	40.73
CLASS C:
Net Assets	$	108,226
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,693,397
Net Asset Value, Offering and Redemption Price Per Share	$	40.18
CLASS IS:
Net Assets	$	129,646
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,956,281
Net Asset Value, Offering and Redemption Price Per Share	$	43.85
CLASS IR:
Net Assets	$	157,509
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,590,229
Net Asset Value, Offering and Redemption Price Per Share	$	43.87
⁽¹⁾ Including: Securities on Loan, at Value:	$	151,613

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

International Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $1,493 of Foreign Taxes Withheld)	$	8,687
Income from Securities Loaned — Net		1,723
Dividends from Security of Affiliated Issuer (Note G)		12
Total Investment Income		10,422
Expenses:
Advisory Fees (Note B)		17,985
Administration Fees (Note C)		1,892
Sub Transfer Agency Fees — Class I		1,304
Sub Transfer Agency Fees — Class A		366
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		31
Shareholder Services Fees — Class A (Note D)		941
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		515
Custodian Fees (Note F)		379
Registration Fees		183
Transfer Agency Fees — Class I (Note E)		86
Transfer Agency Fees — Class A (Note E)		5
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		7
Transfer Agency Fees — Class IS (Note E)		5
Transfer Agency Fees — Class IR (Note E)		1
Professional Fees		60
Shareholder Reporting Fees		37
Directors' Fees and Expenses		25
Organization Costs for Subsidiary		14
Pricing Fees		1
Interest Expenses		2
Other Expenses		40
Total Expenses		23,882
Rebate from Morgan Stanley Affiliate (Note G)		(77	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(3	)
Net Expenses		23,802
Net Investment Loss		(13,380	)
Realized Gain (Loss):
Investments Sold (Net of $99 of Capital Gain Country Tax)		163,492
Investments in Affiliates		14,346
Foreign Currency Translation		(203	)
Net Realized Gain		177,635
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $1,577)		14,325
Investments in Affiliates		40,097
Foreign Currency Translation		(119	)
Derivative Contract — PIPE		2,024
Net Change in Unrealized Appreciation (Depreciation)		56,327
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		233,962
Net Increase in Net Assets Resulting from Operations	$	220,582

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

International Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(13,380	)	$	(19,206	)
Net Realized Gain		177,635			47,800
Net Change in Unrealized Appreciation (Depreciation)		56,327			1,228,807
Net Increase in Net Assets Resulting from Operations		220,582			1,257,401
Dividends and Distributions to Shareholders:
Class I		—			(7,420	)
Class A		—			(1,688	)
Class L		—			(1	)
Class C		—			(232	)
Class IS		—			(237	)
Class IR		—			(357	)
Total Dividends and Distributions to Shareholders		—			(9,935	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		978,715			1,419,406
Distributions Reinvested		—			7,256
Redeemed		(454,603	)		(489,145	)
Class A:
Subscribed		176,599			273,991
Distributions Reinvested		—			1,687
Redeemed		(102,951	)		(133,945	)
Class L:
Exchanged		20			11
Distributions Reinvested		—			1
Redeemed		(56	)		(197	)
Class C:
Subscribed		20,231			22,956
Distributions Reinvested		—			230
Redeemed		(7,135	)		(13,042	)
Class IS:
Subscribed		44,799			39,019
Distributions Reinvested		—			237
Redeemed		(21,014	)		(23,518	)
Class IR:
Subscribed		—			20,000
Distributions Reinvested		—			357
Redeemed		—			(30,000	)
Net Increase in Net Assets Resulting from Capital Share Transactions		634,605			1,095,304
Redemption Fees		95			74
Total Increase in Net Assets		855,282			2,342,844
Net Assets:
Beginning of Period		4,177,884			1,835,040
End of Period	$	5,033,166		$	4,177,884

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

International Opportunity Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020* (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		22,491			44,755
Shares Issued on Distributions Reinvested		—			178
Shares Redeemed		(10,589	)		(16,959	)
Net Increase in Class I Shares Outstanding		11,902			27,974
Class A:
Shares Subscribed		4,132			8,600
Shares Issued on Distributions Reinvested		—			42
Shares Redeemed		(2,454	)		(4,599	)
Net Increase in Class A Shares Outstanding		1,678			4,043
Class L:
Shares Exchanged		—	@@		—	@@
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		(7	)
Net Decrease in Class L Shares Outstanding		(1	)		(7	)
Class C:
Shares Subscribed		502			740
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(181	)		(509	)
Net Increase in Class C Shares Outstanding		321			237
Class IS:
Shares Subscribed		1,012			1,305
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(486	)		(751	)
Net Increase in Class IS Shares Outstanding		526			560
Class IR:
Shares Subscribed		—			583
Shares Issued on Distributions Reinvested		—			9
Shares Redeemed		—			(1,124	)
Net Decrease in Class IR Shares Outstanding		—			(532	)

* Not consolidated.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

International Opportunity Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	41.46		$	26.73		$	19.77		$	22.52		$	14.93		$	15.03
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.11	)		(0.22	)		(0.04	)		(0.04	)		(0.08	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		2.37			15.05			7.00			(2.66	)		8.04			(0.07	)
Total from Investment Operations		2.26			14.83			6.96			(2.70	)		7.96			(0.10	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.00	)⁽⁴⁾
Net Realized Gain		—			(0.10	)		—			(0.05	)		(0.37	)		—
Total Distributions		—			(0.10	)		—			(0.05	)		(0.37	)		(0.00	)⁽⁴⁾
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	43.72		$	41.46		$	26.73		$	19.77		$	22.52		$	14.93
Total Return⁽⁵⁾		5.45	%⁽⁸⁾		55.49	%		35.20	%		(12.04	)%		53.38	%		(0.65	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,845,216		$	3,152,320		$	1,284,678		$	649,580		$	358,141		$	62,440
Ratio of Expenses Before Expense Limitation		N/A			0.98	%		1.03	%		1.04	%		1.10	%		1.34	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁶⁾⁽⁹⁾		0.97	%⁽⁶⁾		0.99	%⁽⁶⁾		0.99	%⁽⁶⁾		0.98	%⁽⁶⁾		1.00	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.95	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.50	)%⁽⁶⁾⁽⁹⁾		(0.70	)%⁽⁶⁾		(0.15	)%⁽⁶⁾		(0.19	)%⁽⁶⁾		(0.42	)%⁽⁶⁾		(0.22	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.02	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		11	%⁽⁸⁾		25	%		20	%		36	%		30	%		42	%

(1) Not consolidated.

(2) 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

International Opportunity Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	40.57		$	26.23		$	19.46		$	22.25		$	14.79		$	14.93
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.16	)		(0.30	)		(0.10	)		(0.11	)		(0.15	)		(0.08	)
Net Realized and Unrealized Gain (Loss)		2.32			14.74			6.87			(2.63	)		7.98			(0.06	)
Total from Investment Operations		2.16			14.44			6.77			(2.74	)		7.83			(0.14	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.10	)		—			(0.05	)		(0.37	)		—
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	42.73		$	40.57		$	26.23		$	19.46		$	22.25		$	14.79
Total Return⁽⁵⁾		5.32	%⁽⁸⁾		55.06	%		34.79	%		(12.36	)%		53.01	%		(1.00	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	792,042		$	683,897		$	336,109		$	223,098		$	186,988		$	11,727
Ratio of Expenses Before Expense Limitation		N/A			1.26	%		1.30	%		1.34	%		1.36	%		1.66	%
Ratio of Expenses After Expense Limitation		1.22	%⁽⁶⁾⁽⁹⁾		1.25	%⁽⁶⁾		1.29	%⁽⁶⁾		1.33	%⁽⁶⁾		1.27	%⁽⁶⁾		1.35	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.22	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.78	)%⁽⁶⁾⁽⁹⁾		(0.96	)%⁽⁶⁾		(0.44	)%⁽⁶⁾		(0.51	)%⁽⁶⁾		(0.74	)%⁽⁶⁾		(0.55	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.02	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		11	%⁽⁸⁾		25	%		20	%		36	%		30	%		42	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

International Opportunity Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	38.79		$	25.23		$	18.82		$	21.63		$	14.47		$	14.69
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.28	)		(0.44	)		(0.23	)		(0.22	)		(0.22	)		(0.14	)
Net Realized and Unrealized Gain (Loss)		2.22			14.10			6.64			(2.54	)		7.75			(0.08	)
Total from Investment Operations		1.94			13.66			6.41			(2.76	)		7.53			(0.22	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.10	)		—			(0.05	)		(0.37	)		—
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	40.73		$	38.79		$	25.23		$	18.82		$	21.63		$	14.47
Total Return⁽⁵⁾		5.00	%⁽⁸⁾		54.15	%		34.06	%		(12.81	)%		52.11	%		(1.50	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	527		$	533		$	512		$	382		$	364		$	221
Ratio of Expenses Before Expense Limitation		2.04	%⁽⁹⁾		2.14	%		2.19	%		2.28	%		2.51	%		3.16	%
Ratio of Expenses After Expense Limitation		1.85	%⁽⁶⁾⁽⁹⁾		1.84	%⁽⁶⁾		1.84	%⁽⁶⁾		1.84	%⁽⁶⁾		1.84	%⁽⁶⁾		1.85	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.85	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(1.42	)%⁽⁶⁾⁽⁹)		(1.54	)%⁽⁶⁾		(0.99	)%⁽⁶⁾		(1.02	)%⁽⁶⁾		(1.16	)%⁽⁶⁾		(1.00	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		11	%⁽⁸⁾		25	%		20	%		36	%		30	%		42	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

International Opportunity Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	38.29		$	24.94		$	18.63		$	21.46		$	14.39		$	14.63
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.30	)		(0.48	)		(0.26	)		(0.27	)		(0.29	)		(0.19	)
Net Realized and Unrealized Gain (Loss)		2.19			13.93			6.57			(2.51	)		7.73			(0.05	)
Total from Investment Operations		1.89			13.45			6.31			(2.78	)		7.44			(0.24	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.10	)		—			(0.05	)		(0.37	)		—
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	40.18		$	38.29		$	24.94		$	18.63		$	21.46		$	14.39
Total Return⁽⁵⁾		4.94	%⁽⁸⁾		53.94	%		33.87	%		(13.00	)%		51.77	%		(1.71	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	108,226		$	90,845		$	53,257		$	35,297		$	23,334		$	1,862
Ratio of Expenses Before Expense Limitation		N/A			1.98	%		2.03	%		2.06	%		2.10	%		2.43	%
Ratio of Expenses After Expense Limitation		1.94	%⁽⁶⁾⁽⁹⁾		1.97	%⁽⁶⁾		2.02	%⁽⁶⁾		2.04	%⁽⁶⁾		2.01	%⁽⁶⁾		2.10	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.94	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(1.50	)%⁽⁶⁾⁽⁹⁾		(1.68	)%⁽⁶⁾		(1.17	)%⁽⁶⁾		(1.24	)%⁽⁶⁾		(1.45	)%⁽⁶⁾		(1.32	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.02	%		0.00	%⁽⁷⁾
Portfolio Turnover Rate		11	%⁽⁸⁾		25	%		20	%		36	%		30	%		42	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

International Opportunity Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾			2016⁽¹⁾⁽²⁾
Net Asset Value, Beginning of Period	$	41.56		$	26.77		$	19.79		$	22.54		$	14.94		$	15.03
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.09	)		(0.18	)		(0.02	)		0.02			(0.12	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		2.38			15.07			7.00			(2.72	)		8.09			(0.06	)
Total from Investment Operations		2.29			14.89			6.98			(2.70	)		7.97			(0.09	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.00	)⁽⁴⁾
Net Realized Gain		—			(0.10	)		—			(0.05	)		(0.37	)		—
Total Distributions		—			(0.10	)		—			(0.05	)		(0.37	)		(0.00	)⁽⁴⁾
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	43.85		$	41.56		$	26.77		$	19.79		$	22.54		$	14.94
Total Return⁽⁵⁾		5.51	%⁽⁸⁾		55.63	%		35.27	%		(12.03	)%		53.41	%		(0.64	)%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	129,646		$	101,008		$	50,083		$	14,016		$	57,629		$	1,030
Ratio of Expenses Before Expense Limitation		0.88	%⁽⁹⁾		0.90	%		0.98	%		0.95	%		1.03	%		5.64	%
Ratio of Expenses After Expense Limitation		0.87	%⁽⁶⁾⁽⁹⁾		0.88	%⁽⁶⁾		0.91	%⁽⁶⁾		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾		0.93	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.87	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.42	)%⁽⁶⁾⁽⁹⁾		(0.59	)%⁽⁶⁾		(0.07	)%⁽⁶⁾		0.09	%⁽⁶⁾		(0.56	)%⁽⁶⁾		(0.20	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		11	%⁽⁸⁾		25	%		20	%		36	%		30	%		42	%

(1) Not consolidated.

(2) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment 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.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(6) The Ratio of Expenses After Expense Limitation and Net Investment Income (Loss) reflect the rebate of certain Fund expenses in connection with the investments Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
16

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

International Opportunity Portfolio

	Class IR
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	41.58		$	26.78		$	19.79		$	25.37
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.09	)		(0.19	)		(0.02	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		2.38			15.09			7.01			(5.47	)
Total from Investment Operations		2.29			14.90			6.99			(5.53	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.10	)		—			(0.05	)
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	43.87		$	41.58		$	26.78		$	19.79
Total Return⁽⁵⁾		5.51	%⁽⁸⁾		55.64	%		35.32	%		(21.84	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	157,509		$	149,281		$	110,401		$	81,592
Ratio of Expenses Before Expense Limitation		N/A			0.89	%		0.93	%		0.95	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.87	%⁽⁶⁾⁽⁹⁾		0.88	%⁽⁶⁾		0.91	%⁽⁶⁾		0.93	%⁽⁶⁾⁽⁹⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		0.87	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.44	)%⁽⁶⁾⁽⁹⁾		(0.60	)%⁽⁶⁾		(0.07	)%⁽⁶⁾		(0.46	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.01	%		0.01	%		0.01	%⁽⁹⁾
Portfolio Turnover Rate		11	%⁽⁸⁾		25	%		20	%		36	%

(1) Not consolidated.

(2) Commencement of Offering.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
17

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the International Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class IS and Class IR. On April 30, 2015 the Fund suspended offering of Class L shares. Existing Class L shareholders may invest through reinvestment of dividends and distributions. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

The Fund may, 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, International Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $21,257,000 or approximately 0.42% of the total net assets of the Fund.

fund receive no more than ten percent of its gross income from such investments in order to receive favorable tax treatment as a regulated investment company ("RIC"). Tax treatment of the income received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 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; (6) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (7) investments in

mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 – unadjusted quoted prices in active markets for identical investments

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Air Freight & Logistics	$	291,798	$	—	$	—	$	291,798
Banks		365,169		—		—		365,169
Beverages		44,448		—		—		44,448
Biotechnology		68,298		—		—		68,298
Diversified Consumer Services		97,529		—		—		97,529
Electronic Equipment, Instruments & Components		159,082		—		—		159,082
Entertainment		342,124		—		—		342,124
Food Products		129,396		—		—		129,396
Health Care Providers & Services		17,686		—		—		17,686
Hotels, Restaurants & Leisure		205,946		—		—		205,946
Household Products		30,386		—		—		30,386

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	$	668,618	$	—	$	—	$	668,618
Interactive Media & Services		243,004		67,721		—		310,725
Internet & Direct Marketing Retail		1,112,768		—		—		1,112,768
Road & Rail		69,942		—		—		69,942
Semiconductors & Semiconductor Equipment		285,362		—		—		285,362
Textiles, Apparel & Luxury Goods		704,791		—		—		704,791
Total Common Stocks		4,836,347		67,721		—		4,904,068
Investment Company		17,135		—		—		17,135
Short-Term Investments
Investment Company		274,502		—		—		274,502
Repurchase Agreements		—		16,216		—		16,216
Total Short-Term Investments		274,502		16,216		—		290,718
Derivative Contract — PIPE		—		—		2,024		2,024
Total Assets	$	5,127,984	$	83,937	$	2,024	$	5,213,945

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:

	Derivative Contract — PIPE (000)
Beginning Balance	$	—
Purchases		—
Sales		—
PIPE transactions		2,024
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	2,024
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2021	$	2,024

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2021:

Fair Value at
June 30, 2021
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

PIPE

2,024

Market Implied

Discount for Lack of
Marketability and
Transaction Risk

10.0

Decrease

* Amount is indicative of the weighted average.

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-tomarket on a daily basis to determine that the value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and, when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral proceeds may be subject to cost and delays. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

4. Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

(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:

At June 30, 2021, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Appreciation on
Derivative Contract — PIPE

Equity Risk

2,024

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Derivative Contract — PIPE	$	2,024

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(a) (000)		Liabilities (000)
Derivative Contract — PIPE	$	2,024	$	—

(a) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Derivative Contract — PIPE
Average monthly notional amount				$	38,190,000

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an

affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund's Consolidated Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of June 30, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	151,613	(b)	$	—	$	(151,613	)(c)(d)	$	0

(b) Represents market value of loaned securities at period end.

(c) The Fund received cash collateral of approximately $109,953,000, of which approximately $106,855,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $3,098,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $49,128,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated Portfolio of Investments.

(d) 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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	$	109,953	$	—	$	—	$	—	$	109,953
Total Borrowings	$	109,953	$	—	$	—	$	—	$	109,953
Gross amount of recognized liabilities for securities lending transactions									$	109,953

Restricted securities are identified in the Consolidated Portfolio of Investments.

8. Redemption Fees: The Fund will assess a 2% redemption fee, on Class I shares, Class A shares, Class L shares, Class C shares, Class IS shares and Class IR shares which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2021, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.76% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares, 0.94% for Class IS shares and 0.94% for Class IR shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $3,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

than long-term U.S. Government securities and short-term investments were approximately $1,386,367,000 and $516,410,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

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, 2021, advisory fees paid were reduced by approximately $77,000 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, 2021 is as follows:

Affiliated Investment Company/Issuer	Value December 31, 2020 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	372,133	$	772,838	$	870,469	$	12
Canada Goose Holdings, Inc.		145,556		7,371		64,500		—
HUYA, Inc. ADR		70,008		28,753		2,563		—
	$	587,697	$	808,962	$	937,532	$	12

Affiliated Investment Company/Issuer (cont'd)	Realized Gain (Loss) (000)			Change in Unrealized Appreciation (Depreciation) (000)			Value June 30, 2021 (000)
Liquidity Funds	$	—		$	—		$	274,502
Canada Goose Holdings, Inc.		15,397			54,367			158,191
HUYA, Inc. ADR		(1,051	)		(14,270	)		80,877
	$	14,346		$	40,097		$	513,570

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

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	9,935	$	—	$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	8,033			$	(8,033	)

At December 31, 2020, the Fund had no distributable earnings on a tax basis.

During the year ended December 31, 2020, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $40,030,000.

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	11,470

K. Market Risk and Risks Relating to Certain Financial Instruments:

Bitcoin: The Fund may have exposure to bitcoin indirectly through investments in GBTC a privately offered investment vehicle that invests in bitcoin. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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. The Board noted that the Fund's 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management 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

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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIIIOSAN
3691479 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Permanence Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					7
Consolidated Statements of Changes in Net Assets					8
Consolidated Financial Highlights					9
Notes to Consolidated Financial Statements					13
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Permanence Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Expense Example

Permanence Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Permanence Portfolio Class I	$	1,000.00	$	1,085.30	$	1,020.58	$	4.39	$	4.26		0.85	%
Permanence Portfolio Class A		1,000.00		1,083.50		1,018.84		6.20		6.01		1.20
Permanence Portfolio Class C		1,000.00		1,078.50		1,015.12		10.05		9.74		1.95
Permanence Portfolio Class IS		1,000.00		1,086.00		1,020.83		4.14		4.01		0.80

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments

Permanence Portfolio

	Shares		Value (000)
Common Stocks (96.0%)
Aerospace & Defense (10.4%)
Axon Enterprise, Inc. (a)		1,378	$	243
HEICO Corp., Class A		1,206		150
				393
Capital Markets (4.0%)
Intercontinental Exchange, Inc.		482		57
S&P Global, Inc.		232		95
				152
Chemicals (2.9%)
Ecolab, Inc.		268		55
Sherwin-Williams Co. (The)		205		56
				111
Commercial Services & Supplies (4.9%)
Cintas Corp.		99		38
Copart, Inc. (a)		418		55
Rollins, Inc.		2,704		92
				185
Construction Materials (1.5%)
Martin Marietta Materials, Inc.		159		56
Containers & Packaging (1.0%)
Ball Corp.		448		36
Diversified Consumer Services (1.7%)
Chegg, Inc. (a)		342		29
Service Corp. International		673		36
				65
Entertainment (4.4%)
Walt Disney Co. (The) (a)		939		165
Equity Real Estate Investment Trusts (REITs) (2.5%)
American Tower Corp. REIT		223		60
Equinix, Inc. REIT		42		34
				94
Food & Staples Retailing (4.2%)
Costco Wholesale Corp.		402		159
Food Products (1.0%)
UTZ Brands, Inc.		1,670		36
Health Care Equipment & Supplies (7.6%)
Danaher Corp.		355		95
IDEXX Laboratories, Inc. (a)		88		56
Intuitive Surgical, Inc. (a)		148		136
				287
Health Care Technology (4.0%)
Veeva Systems, Inc., Class A (a)		490		152
Hotels, Restaurants & Leisure (4.2%)
Domino's Pizza, Inc.		121		56
McDonald's Corp.		233		54
Starbucks Corp.		445		50
				160

	Shares		Value (000)
Household Products (1.4%)
Colgate-Palmolive Co.		641	$	52
Industrial Conglomerates (2.5%)
Roper Technologies, Inc.		201		95
Insurance (1.5%)
Progressive Corp. (The)		575		56
Internet & Direct Marketing Retail (4.4%)
Amazon.com, Inc. (a)		48		165
Metals & Mining (1.0%)
Royal Gold, Inc.		321		37
Oil, Gas & Consumable Fuels (1.5%)
Texas Pacific Land Corp.		36		58
Pharmaceuticals (3.3%)
Royalty Pharma PLC, Class A (United Kingdom)		2,988		123
Professional Services (1.4%)
CoStar Group, Inc. (a)		640		53
Semiconductors & Semiconductor Equipment (5.5%)
ASML Holding N.V. (Registered)		300		207
Software (13.2%)
ANSYS, Inc. (a)		95		33
Appfolio, Inc., Class A (a)		402		57
Cadence Design Systems, Inc. (a)		284		39
Constellation Software, Inc.		119		180
Guidewire Software, Inc. (a)		289		33
Synopsys, Inc. (a)		147		41
Topicus.com, Inc. (a)		528		38
Tyler Technologies, Inc. (a)		173		78
				499
Specialty Retail (2.6%)
AutoZone, Inc. (a)		25		37
Home Depot, Inc. (The)		186		60
				97
Textiles, Apparel & Luxury Goods (1.5%)
NIKE, Inc., Class B		357		55
Trading Companies & Distributors (1.9%)
Fastenal Co.		693		36
Watsco, Inc.		118		34
				70
Total Common Stocks (Cost $2,784)				3,618
Investment Company (0.3%)
Grayscale Bitcoin Trust (a) (Cost $22)		443		13
Short-Term Investment (1.3%)
Investment Company (1.3%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $50)		49,658		50

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Permanence Portfolio

	Shares	Value (000)
Total Investments Excluding Purchased Options (97.6%) (Cost $2,856)		$	3,681
Total Purchased Options Outstanding (0.0%) (b) (Cost $16)			1
Total Investments (97.6%) (Cost $2,872) (c)			3,682
Other Assets in Excess of Liabilities (2.4%)			91
Net Assets (100.0%)		$	3,773

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(c) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book Purposes. The aggregate gross unrealized appreciation is approximately $847,000 and the aggregate gross unrealized depreciation is approximately $37,000, resulting in net unrealized appreciation of approximately $810,000.

REIT Real Estate Investment Trust.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2021:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.42	Jan-22		800,000		800	$	—	@	$	3	$	(3	)
Goldman Sachs International	USD/CNH	CNH	7.57	Mar-22		694,590		695		1			4		(3	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.70	Nov-21		700,000		700		—	@		3		(3	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.98	Sep-21		561,500		562		—	@		3		(3	)
JP Morgan Chase Bank NA	USD/CNH	CNH	8.10	Jul-21		591,131		591		—	@		3		(3	)
									$	1		$	16	$	(15	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Other*		57.3	%
Software		13.6
Aerospace & Defense		10.7
Health Care Equipment & Supplies		7.8
Semiconductors & Semiconductor Equipment		5.6
Commercial Services & Supplies		5.0
Total Investments		100.0	%

* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Permanence Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $2,822)	$	3,632
Investment in Security of Affiliated Issuer, at Value (Cost $50)		50
Total Investments in Securities, at Value (Cost $2,872)		3,682
Foreign Currency, at Value (Cost —@)		—	@
Receivable for Investments Sold		80
Due from Adviser		39
Dividends Receivable		1
Receivable from Affiliate		—	@
Other Assets		50
Total Assets		3,852
Liabilities:
Payable for Investments Purchased		54
Payable for Professional Fees		15
Payable for Custodian Fees		2
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		—	@
Payable for Organization Costs for Subsidiary		—	@
Other Liabilities		8
Total Liabilities		79
Net Assets	$	3,773
Net Assets Consist of:
Paid-in-Capital	$	2,521
Total Distributable Earnings		1,252
Net Assets	$	3,773
CLASS I:
Net Assets	$	3,535
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		222,405
Net Asset Value, Offering and Redemption Price Per Share	$	15.90
CLASS A:
Net Assets	$	197
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		12,420
Net Asset Value, Redemption Price Per Share	$	15.83
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.88
Maximum Offering Price Per Share	$	16.71
CLASS C:
Net Assets	$	24
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,548
Net Asset Value, Offering and Redemption Price Per Share	$	15.66
CLASS IS:
Net Assets	$	17
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,061
Net Asset Value, Offering and Redemption Price Per Share	$	15.91

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Permanence Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld)	$	21
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		21
Expenses:
Professional Fees		39
Organization Costs for Subsidiary		32
Registration Fees		15
Advisory Fees (Note B)		11
Shareholder Reporting Fees		7
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		3
Administration Fees (Note C)		1
Directors' Fees and Expenses		1
Pricing Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class I		—	@
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Other Expenses		7
Total Expenses		121
Expenses Reimbursed by Adviser (Note B)		(93	)
Waiver of Advisory Fees (Note B)		(11	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		14
Net Investment Income		7
Realized Gain (Loss):
Investments Sold		275
Foreign Currency Translation		(—	@)
Net Realized Gain		275
Change in Unrealized Appreciation (Depreciation):
Investments		8
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		8
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		283
Net Increase in Net Assets Resulting from Operations	$	290

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Permanence Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Period from March 31, 2020^ to December 31, 2020* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	7		$	(—	@)
Net Realized Gain		275			344
Net Change in Unrealized Appreciation (Depreciation)		8			802
Net Increase in Net Assets Resulting from Operations		290			1,146
Dividends and Distributions to Shareholders:
Class I		—			(174	)
Class A		—			(8	)
Class C		—			(1	)
Class IS		—			(1	)
Total Dividends and Distributions to Shareholders		—			(184	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		114			2,025
Distributions Reinvested		—			174
Class A:
Subscribed		228			248
Distributions Reinvested		—			8
Redeemed		(301	)		(4	)
Class C:
Subscribed		2			15
Distributions Reinvested		—			1
Class IS:
Subscribed		—			10
Distributions Reinvested		—			1
Net Increase in Net Assets Resulting from Capital Share Transactions		43			2,478
Total Increase in Net Assets		333			3,440
Net Assets:
Beginning of Period		3,440			—
End of Period	$	3,773		$	3,440
(1) Capital Share Transactions:
Class I:
Shares Subscribed		8			203
Shares Issued on Distributions Reinvested		—			12
Net Increase in Class I Shares Outstanding		8			215
Class A:
Shares Subscribed		16			17
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(21	)		(—	@@)
Net Increase (Decrease) in Class A Shares Outstanding		(5	)		18
Class C:
Shares Subscribed		—	@@		1
Shares Issued on Distributions Reinvested		—			—	@@
Net Increase in Class C Shares Outstanding		—	@@		1
Class IS:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—			—	@@
Net Increase in Class IS Shares Outstanding		—			1

^ Commencement of Operations.

* Not consolidated.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Permanence Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from March 31, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.65		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.02			(0.00	)⁽⁴⁾
Net Realized and Unrealized Gain		1.23			5.51
Total from Investment Operations		1.25			5.51
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.86	)
Net Asset Value, End of Period	$	15.90		$	14.65
Total Return⁽⁵⁾		8.53	%⁽⁸⁾		55.46	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,535		$	3,147
Ratio of Expenses Before Expense Limitation		6.78	%⁽⁹⁾		10.85	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.85	%⁽⁶⁾⁽⁹⁾		0.85	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Income (Loss)		0.33	%⁽⁶⁾⁽⁹⁾		(0.02	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		36	%⁽⁸⁾		68	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Permanence Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from March 31, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.61		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.00	⁽⁴⁾		(0.01	)
Net Realized and Unrealized Gain		1.22			5.48
Total from Investment Operations		1.22			5.47
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.86	)
Net Asset Value, End of Period	$	15.83		$	14.61
Total Return⁽⁵⁾		8.35	%⁽⁸⁾		55.05	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	197		$	256
Ratio of Expenses Before Expense Limitation		7.87	%⁽⁹⁾		17.41	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.20	%⁽⁶⁾⁽⁹⁾		1.20	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Income (Loss)		0.01	%⁽⁶⁾⁽⁹⁾		(0.06	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		36	%⁽⁸⁾		68	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Permanence Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from March 31, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.52		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.06	)		(0.11	)
Net Realized and Unrealized Gain		1.20			5.49
Total from Investment Operations		1.14			5.38
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.86	)
Net Asset Value, End of Period	$	15.66		$	14.52
Total Return⁽⁴⁾		7.85	%⁽⁷⁾		54.15	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	24		$	21
Ratio of Expenses Before Expense Limitation		15.46	%⁽⁸⁾		24.15	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.95	%⁽⁵⁾⁽⁸⁾		1.95	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.76	)%⁽⁵⁾⁽⁸⁾		(1.08	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		36	%⁽⁷⁾		68	%⁽⁷⁾

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Consolidated Financial Highlights

Permanence Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended June 30, 2021 (unaudited)			Period from March 31, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.65		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.03			(0.00	)⁽⁴⁾
Net Realized and Unrealized Gain		1.23			5.51
Total from Investment Operations		1.26			5.51
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.86	)
Net Asset Value, End of Period	$	15.91		$	14.65
Total Return⁽⁵⁾		8.60	%⁽⁸⁾		55.45	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	17		$	16
Ratio of Expenses Before Expense Limitation		17.66	%⁽⁹⁾		25.34	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.80	%⁽⁶⁾⁽⁹⁾		0.80	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Income		0.39	%⁽⁶⁾⁽⁹⁾		0.03	%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		36	%⁽⁸⁾		68	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(6) The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Permanence Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

The Fund may, 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, Permanence Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of June 30, 2021, the Subsidiary represented approximately $14,000 or approximately 0.38% of the total net assets of the Fund.

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (5) when market quotations are not readily available, 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.

• Level 1 – unadjusted quoted prices in active markets for identical investments

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	393	$	—	$	—	$	393
Capital Markets		152		—		—		152
Chemicals		111		—		—		111
Commercial Services & Supplies		185		—		—		185
Construction Materials		56		—		—		56
Containers & Packaging		36		—		—		36
Diversified Consumer Services		65		—		—		65
Entertainment		165		—		—		165
Equity Real Estate Investment Trusts (REITs)		94		—		—		94
Food & Staples Retailing		159		—		—		159
Food Products		36		—		—		36
Health Care Equipment & Supplies		287		—		—		287
Health Care Technology		152		—		—		152
Hotels, Restaurants & Leisure		160		—		—		160
Household Products		52		—		—		52

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)
Industrial Conglomerates	$	95	$	—	$	—	$	95
Insurance		56		—		—		56
Internet & Direct Marketing Retail		165		—		—		165
Metals & Mining		37		—		—		37
Oil, Gas & Consumable Fuels		58		—		—		58
Pharmaceuticals		123		—		—		123
Professional Services		53		—		—		53
Semiconductors & Semiconductor Equipment		207		—		—		207
Software		461		38		—		499
Specialty Retail		97		—		—		97
Textiles, Apparel & Luxury Goods		55		—		—		55
Trading Companies & Distributors		70		—		—		70
Total Common Stocks		3,580		38		—		3,618
Call Options Purchased		—		1		—		1
Investment Company		13		—		—		13
Short-Term Investment
Investment Company		50		—		—		50
Total Assets	$	3,643	$	39	$	—	$	3,682

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund 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.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2021:

Asset Derivatives
Consolidated Statement of
Assets and Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk Investments	(Purchased Options)	$	(2	)(b)

(b) Amounts are included in Investments Sold in the Consolidated Statement of Operations.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(6	)(c)

At June 30, 2021, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Purchased Options	$	1	(a)	$	—

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(d) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 2021:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities(a) (000)			Financial Instrument (000)		Collateral Received (000)		Net Amount (not less than $0) (000)
Goldman Sachs International	$	1		$	—	$	—	$	1
JP Morgan Chase Bank NA		—	@		—		—		—	@
Total	$	1		$	—	$	—	$	1

@ Value is less than $500.

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

For the six months ended June 30, 2021, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					3,399,000

First $1 billion				Over $1 billion
	0.65	%			0.60	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses,

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.85% for Class I shares, 1.20% for Class A shares, 1.95% for Class C shares and 0.80% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $11,000 of advisory fees were waived and approximately $96,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

The Company has adopted a Distribution and Shareholder Services Plan with respect to Class C shares pursuant to

Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.75% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $1,234,000 and $1,249,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	98			$	899			$	947			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	50

@ Amount is less than $500.

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. The tax year ended December 31, 2020 remains subject to examination by taxing authorities.

				2020 Distributions Paid From: Ordinary Income (000)
				$	184

Permanent differences, primarily due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	—	@		$	(—	@)

@ Amount is less than $500.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	188			$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

K. Market Risk and Risks Relating to Certain Financial Instruments:

bitcoin network or a change in user preference to competing cryptocurrencies. The GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 period since the end of March 2020, the month of the Fund's inception. 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 averages and 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIPERMSAN
3691443 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

Real Assets Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					8
Statement of Operations					10
Statements of Changes in Net Assets					11
Financial Highlights					12
Notes to Financial Statements					16
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Real Assets Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

Real Assets Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Real Assets Portfolio Class I	$	1,000.00	$	1,111.10	$	1,020.98	$	4.03	$	3.86		0.77	%
Real Assets Portfolio Class A		1,000.00		1,109.10		1,019.09		6.01		5.76		1.15
Real Assets Portfolio Class C		1,000.00		1,105.90		1,015.37		9.92		9.49		1.90
Real Assets Portfolio Class IS		1,000.00		1,111.20		1,021.08		3.93		3.76		0.75

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

Real Assets Portfolio

	Shares		Value (000)
Common Stocks (74.5%)
Australia (2.7%)
Atlas Arteria Ltd.		11,005	$	53
Charter Hall Group REIT		8,155		95
CSL Ltd.		337		72
Endeavour Group Ltd. (a)		1,569		7
Goodman Group REIT		4,865		77
Mirvac Group REIT		46,126		101
Sydney Airport (a)		9,937		43
Transurban Group		15,519		166
Wesfarmers Ltd.		1,496		66
Woolworths Group Ltd.		1,569		45
				725
Belgium (0.2%)
Aedifica SA REIT		469		62
Canada (4.0%)
Bank of Montreal		702		72
Canadian National Railway Co.		363		38
Enbridge, Inc.		5,689		228
Gibson Energy, Inc. (b)		9,369		180
Great-West Lifeco, Inc.		1,866		55
Manulife Financial Corp.		3,417		67
Pembina Pipeline Corp. (b)		3,383		107
RioCan Real Estate Investment Trust		4,412		79
Royal Bank of Canada		589		60
TC Energy Corp.		4,049		200
				1,086
China (2.6%)
China Gas Holdings Ltd. (c)		71,118		217
China Merchants Port Holdings Co., Ltd. (c)		30,129		44
China Overseas Land & Investment Ltd. (c)		23,896		54
China Resources Land Ltd. (c)		13,264		54
GDS Holdings Ltd. ADR (a)		2,229		175
Jiangsu Expressway Co., Ltd. H Shares (c)		69,138		78
Zhejiang Expressway Co., Ltd., Class H (c)		102,000		91
				713
Denmark (0.3%)
Orsted A/S		497		70
France (3.0%)
Airbus SE (a)		462		59
Bollore SA		10,370		56
Dassault Systemes SE		206		50
Getlink SE		3,695		58
ICADE REIT		781		67
LVMH Moet Hennessy Louis Vuitton SE		98		77
Mercialys SA REIT		8,492		103
Societe Generale SA		2,038		60
Vinci SA		2,675		285
				815

	Shares		Value (000)
Germany (2.3%)
Alstria Office AG REIT		6,860	$	127
BASF SE		976		77
Deutsche Wohnen SE		3,686		225
SAP SE		377		53
Siemens AG (Registered)		388		61
Vantage Towers AG (a)		2,198		71
				614
Hong Kong (1.9%)
ESR Cayman Ltd. (a)		22,000		74
Hong Kong & China Gas Co., Ltd.		34,993		55
New World Development Co. Ltd.		13,000		68
Power Assets Holdings Ltd.		13,000		80
Wharf Real Estate Investment Co., Ltd.		31,694		184
Xinyi Glass Holdings Ltd.		13,576		55
				516
India (0.1%)
Azure Power Global Ltd. (a)		474		13
Italy (1.0%)
Atlantia SpA (a)		3,590		65
Ferrari N.V.		284		59
Infrastrutture Wireless Italiane SpA		7,559		85
Terna SpA		9,028		67
				276
Japan (5.0%)
Activia Properties, Inc. REIT		15		71
Central Japan Railway Co.		200		30
East Japan Railway Co.		1,300		93
Idemitsu Kosan Co., Ltd.		2,155		52
ITOCHU Corp.		2,281		66
Japan Hotel REIT Investment Corp.		163		98
Japan Metropolitan Fund Investment Corp. REIT		56		61
Marubeni Corp.		8,422		73
Mitsubishi Corp.		2,738		75
Mitsui & Co., Ltd.		2,698		61
Mitsui Fudosan Co., Ltd.		8,800		204
Nippon Building Fund, Inc. REIT		22		137
Nippon Prologis REIT Inc.		44		140
Nomura Real Estate Master Fund, Inc. REIT		40		64
Sumitomo Corp.		4,506		60
Toyota Tsusho Corp.		1,383		65
				1,350
Mexico (0.7%)
Grupo Aeroportuario del Pacifico SAB de CV, Class B (a)		7,953		85
Grupo Aeroportuario del Sureste SAB de CV, Class B (a)		5,289		98
Promotora y Operadora de Infraestructura SAB de CV		1,157		9
				192

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Real Assets Portfolio

	Shares		Value (000)
Netherlands (0.4%)
ASML Holding N.V.		77	$	53
Randstad N.V.		723		55
				108
New Zealand (0.1%)
Auckland International Airport Ltd. (a)		7,193		37
Portugal (0.1%)
EDP Renovaveis SA		1,391		32
Singapore (0.6%)
DBS Group Holdings Ltd.		2,685		59
Keppel DC REIT		24,300		45
Parkway Life Real Estate Investment Trust REIT		19,200		66
				170
South Africa (0.0%) (d)
Thungela Resources Ltd. (a)(b)		2		—	@
Spain (1.4%)
Aena SME SA (a)		330		54
Cellnex Telecom SA		2,032		129
Ferrovial SA		2,761		81
Iberdrola SA		3,275		40
Merlin Properties Socimi SA REIT		6,332		66
				370
Sweden (0.3%)
Hufvudstaden AB, Class A		1,631		28
Telia Co., AB		12,848		57
				85
Switzerland (1.5%)
Barry Callebaut AG (Registered)		27		63
Cie Financiere Richemont SA (Registered)		479		58
Flughafen Zurich AG (Registered) (a)		362		60
Novartis AG (Registered)		734		67
Roche Holding AG (Genusschein)		259		97
Swatch Group AG (The)		166		57
				402
United Kingdom (3.9%)
Anglo American PLC		27		1
GlaxoSmithKline PLC		3,572		70
Grainger PLC		17,120		67
Hammerson PLC REIT (b)		136,153		70
Helical PLC		22,343		134
Land Securities Group PLC REIT		10,164		95
LondonMetric Property PLC REIT		17,249		55
National Grid PLC		20,256		258
Next PLC (a)		466		51
Pennon Group PLC		3,948		62
Rio Tinto PLC		603		50
Royal Dutch Shell PLC, Class B		3,554		69
Segro PLC REIT		48		1
Severn Trent PLC		1,647		57
				1,040

	Shares		Value (000)
United States (42.4%)
Abbott Laboratories		408	$	47
Accenture PLC, Class A		190		56
Adobe, Inc. (a)		172		101
Alexandria Real Estate Equities, Inc. REIT		744		135
Alphabet, Inc., Class A (a)		85		213
Altria Group, Inc.		1,017		49
Amazon.com, Inc. (a)		54		186
Ameren Corp.		1,178		94
American Campus Communities, Inc. REIT		2,847		133
American Electric Power Co., Inc.		1,385		117
American Express Co.		446		74
American Tower Corp. REIT		2,008		542
American Water Works Co., Inc.		1,269		196
Apple, Inc.		2,183		299
Applied Materials, Inc.		399		57
AT&T, Inc.		1,833		53
Atmos Energy Corp.		960		92
AvalonBay Communities, Inc. REIT		652		136
Avangrid, Inc.		1,365		70
Bank of America Corp.		2,199		91
Berkshire Hathaway, Inc., Class B (a)		343		95
Boston Properties, Inc. REIT		633		73
Boyd Gaming Corp. (a)		1,699		104
Caesars Entertainment, Inc. (a)		687		71
Caterpillar, Inc.		203		44
Celanese Corp.		438		66
Charles Schwab Corp. (The)		689		50
Cheniere Energy, Inc. (a)		1,967		171
Coca-Cola Co. (The)		1,007		55
Columbia Property Trust, Inc. REIT		3,942		69
Comcast Corp., Class A		1,127		64
Copart, Inc. (a)		499		66
Costco Wholesale Corp.		138		55
Crown Castle International Corp. REIT		2,710		529
CSX Corp.		1,671		54
CyrusOne, Inc. REIT		1,290		92
Danaher Corp.		245		66
Edison International		1,875		108
Empire State Realty Trust, Inc., Class A REIT		12,780		153
Equinix, Inc. REIT		253		203
Eversource Energy		1,585		127
Facebook, Inc., Class A (a)		363		126
Globe Life, Inc.		570		54
Healthcare Trust of America, Inc., Class A REIT		2,928		78
Healthpeak Properties, Inc. REIT		8,098		270
Hilton Worldwide Holdings, Inc. (a)		451		54
Honeywell International, Inc.		268		59
Intuitive Surgical, Inc. (a)		90		83
Invitation Homes, Inc. REIT		4,594		171
Jacobs Engineering Group, Inc.		364		49
Johnson & Johnson		446		73
JPMorgan Chase & Co.		812		126

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Real Assets Portfolio

	Shares		Value (000)
United States (cont'd)
Kimco Realty Corp. REIT		5,532	$	115
Life Storage, Inc. REIT		1,277		137
Marathon Oil Corp.		4,551		62
Marriott International, Inc., Class A (a)		346		47
Mastercard, Inc., Class A		179		65
Medtronic PLC		464		58
Merck & Co., Inc.		831		65
Micron Technology, Inc. (a)		558		47
Microsoft Corp.		959		260
Motorola Solutions, Inc.		244		53
NETSTREIT Corp. REIT		4,586		106
NextEra Energy, Inc.		1,047		77
Norfolk Southern Corp.		206		55
NVIDIA Corp.		102		82
ONEOK, Inc.		2,662		148
Organon & Co. (a)		82		2
PepsiCo, Inc.		341		51
PNC Financial Services Group, Inc. (The)		295		56
Procter & Gamble Co. (The)		502		68
ProLogis, Inc. REIT		3,413		408
PTC, Inc. (a)		344		49
Public Storage REIT		1,146		345
QUALCOMM, Inc.		365		52
Republic Services, Inc.		816		90
RPT Realty REIT		9,498		123
salesforce.com, Inc. (a)		281		69
SBA Communications Corp. REIT		433		138
Schlumberger N.V.		2,289		73
Sempra Energy		1,490		197
Targa Resources Corp.		2,803		125
Tesla, Inc. (a)		124		84
Texas Instruments, Inc.		374		72
Thermo Fisher Scientific, Inc.		113		57
TJX Cos., Inc. (The)		817		55
UDR, Inc. REIT		3,468		170
Union Pacific Corp.		227		50
UnitedHealth Group, Inc.		198		79
Urban Edge Properties REIT		9,830		188
US Bancorp		924		53
Ventas, Inc. REIT		2,387		136
VICI Properties, Inc. REIT		5,460		169
Visa, Inc., Class A		300		70
Walt Disney Co. (The) (a)		477		84
Weingarten Realty Investors REIT		7,959		255
Wells Fargo & Co.		1,308		59
Welltower, Inc. REIT		3,270		272
Williams Cos., Inc. (The)		4,399		117
Xylem, Inc.		486		58
Zoom Video Communications, Inc., Class A (a)		81		31
				11,481
Total Common Stocks (Cost $17,243)				20,157

	Face Amount (000)		Value (000)
U.S. Treasury Securities (22.4%)
United States (22.4%)
U.S. Treasury Inflation Index Notes (TIPS),
0.13%, 7/15/22 - 1/15/31	$	1,331	$	1,441
0.38%, 7/15/23 - 1/15/27		1,701		1,854
0.50%, 1/15/28		274		307
0.75%, 2/15/42		223		272
0.88%, 1/15/29		264		306
1.00%, 2/15/46 - 2/15/48		324		425
2.00%, 1/15/26		254		299
2.13%, 2/15/40		105		157
3.88%, 4/15/29		93		130
U.S. Treasury Inflation Indexed Bonds,
0.25%, 1/15/25 - 2/15/50		784		857
Total U.S. Treasury Securities (Cost $5,747)				6,048
	Shares
Short-Term Investments (4.1%)
Securities held as Collateral on Loaned Securities (0.9%)
Investment Companies (0.8%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		211,078		211
	Face Amount (000)
Repurchase Agreements (0.1%)
HSBC Securities USA, Inc. (0.05%, dated 6/30/21, due 7/1/21; proceeds $10; fully collateralized by a U.S. Government obligation; 0.00% due 2/15/23; valued at $10)	$	10		10
Merrill Lynch & Co., Inc. (0.05%, dated 6/30/21, due 7/1/21; proceeds $28; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 12/30/21 - 8/15/43; valued at $28)		28		28
				38
Total Securities held as Collateral on Loaned Securities (Cost $249)				249
	Shares
Investment Company (3.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $874)		874,079		874
Total Short-Term Investments (Cost $1,123)				1,123
Total Investments (101.0%) (Cost $24,113) Including $298 of Securities Loaned (e)				27,328
Liabilities in Excess of Other Assets (–1.0%)				(272	)
Net Assets (100.0%)			$	27,056

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

Real Assets Portfolio

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2021.

(d) Amount is less than 0.05%.

(e) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $3,330,000 and the aggregate gross unrealized depreciation is approximately $115,000, resulting in net unrealized appreciation of approximately $3,215,000.

@ Value is less than $500.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

TIPS Treasury Inflation Protected Security.

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		47.5	%
Equity Real Estate Investment Trusts (REITs)		24.8
U.S. Treasury Securities		22.3
Oil, Gas & Consumable Fuels		5.4
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2021.

** Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Real Assets Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $23,028)	$	26,243
Investment in Security of Affiliated Issuer, at Value (Cost $1,085)		1,085
Total Investments in Securities, at Value (Cost $24,113)		27,328
Foreign Currency, at Value (Cost $87)		87
Cash from Securities Lending		7
Dividends Receivable		56
Due from Adviser		34
Receivable for Investments Sold		15
Interest Receivable		12
Tax Reclaim Receivable		6
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		66
Total Assets		27,611
Liabilities:
Collateral on Securities Loaned, at Value		256
Payable for Investments Purchased		205
Payable for Professional Fees		39
Payable for Custodian Fees		31
Payable for Administration Fees		2
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		21
Total Liabilities		555
Net Assets	$	27,056
Net Assets Consist of:
Paid-in-Capital	$	23,950
Total Distributable Earnings		3,106
Net Assets	$	27,056

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Real Assets Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2012 (000)
CLASS I:
Net Assets	$	25,570
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,222,586
Net Asset Value, Offering and Redemption Price Per Share	$	11.50
CLASS A:
Net Assets	$	183
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		15,919
Net Asset Value, Redemption Price Per Share	$	11.52
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.64
Maximum Offering Price Per Share	$	12.16
CLASS C:
Net Assets	$	1,291
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		112,922
Net Asset Value, Offering and Redemption Price Per Share	$	11.44
CLASS IS:
Net Assets	$	12
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,041
Net Asset Value, Offering and Redemption Price Per Share	$	11.50
⁽¹⁾ Including: Securities on Loan, at Value:	$	298

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Real Assets Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $15 of Foreign Taxes Withheld)	$	237
Interest from Securities of Unaffiliated Issuers		110
Income from Securities Loaned — Net		1
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		348
Expenses:
Advisory Fees (Note B)		65
Professional Fees		58
Custodian Fees (Note F)		36
Registration Fees		15
Shareholder Reporting Fees		13
Administration Fees (Note C)		9
Pricing Fees		9
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		3
Directors' Fees and Expenses		2
Sub Transfer Agency Fees — Class I		2
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Other Expenses		7
Total Expenses		223
Expenses Reimbursed by Adviser (Note B)		(69	)
Waiver of Advisory Fees (Note B)		(65	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		86
Net Investment Income		262
Realized Gain (Loss):
Investments Sold		733
Foreign Currency Translation		(2	)
Net Realized Gain		731
Change in Unrealized Appreciation (Depreciation):
Investments		1,270
Foreign Currency Translation		(1	)
Net Change in Unrealized Appreciation (Depreciation)		1,269
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		2,000
Net Increase in Net Assets Resulting from Operations	$	2,262

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Real Assets Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	262		$	236
Net Realized Gain (Loss)		731			(924	)
Net Change in Unrealized Appreciation (Depreciation)		1,269			1,199
Net Increase in Net Assets Resulting from Operations		2,262			511
Dividends and Distributions to Shareholders:
Class I		(60	)		(235	)
Class A		(—	@)		(—	@)
Class C		(1	)		(1	)
Class IS		(—	@)		(—	@)
Total Dividends and Distributions to Shareholders		(61	)		(236	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		6,049			6,900
Distributions Reinvested		60			235
Redeemed		(620	)		(194	)
Class A:
Subscribed		132			24
Distributions Reinvested		—	@		—	@
Redeemed		(—	@)		(23	)
Class C:
Subscribed		1,025			50
Distributions Reinvested		1			1
Redeemed		(6	)		(7	)
Class IS:
Distributions Reinvested		—	@		—	@
Net Increase in Net Assets Resulting from Capital Share Transactions		6,641			6,986
Total Increase in Net Assets		8,842			7,261
Net Assets:
Beginning of Period		18,214			10,953
End of Period	$	27,056		$	18,214
(1) Capital Share Transactions:
Class I:
Shares Subscribed		542			703
Shares Issued on Distributions Reinvested		6			25
Shares Redeemed		(54	)		(20	)
Net Increase in Class I Shares Outstanding		494			708
Class A:
Shares Subscribed		12			2
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(—	@@)		(2	)
Net Increase in Class A Shares Outstanding		12			—	@@
Class C:
Shares Subscribed		93			6
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(1	)		(1	)
Net Increase in Class C Shares Outstanding		92			5
Class IS:
Shares Issued on Distributions Reinvested		—	@@		—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Real Assets Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 18, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	10.38		$	10.51		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.13			0.16			0.19			0.13
Net Realized and Unrealized Gain (Loss)		1.02			(0.14	)		1.46			(0.79	)
Total from Investment Operations		1.15			0.02			1.65			(0.66	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.15	)		(0.20	)		(0.22	)
Paid-in-Capital		—			—			(0.00	)⁽³⁾		(0.06	)
Total Distributions		(0.03	)		(0.15	)		(0.20	)		(0.28	)
Net Asset Value, End of Period	$	11.50		$	10.38		$	10.51		$	9.06
Total Return⁽⁴⁾		11.11	%⁽⁷⁾		0.39	%		18.35	%		(6.70	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	25,570		$	17,942		$	10,728		$	9,033
Ratio of Expenses Before Expense Limitation		2.02	%⁽⁸⁾		2.93	%		3.82	%		4.76	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.77	%⁽⁵⁾⁽⁸⁾		0.77	%⁽⁵⁾		0.76	%⁽⁵⁾		0.76	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income		2.44	%⁽⁵⁾⁽⁸⁾		1.68	%⁽⁵⁾		1.88	%⁽⁵⁾		2.52	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		47	%⁽⁷⁾		68	%		65	%		26	%⁽⁷⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Real Assets Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 18, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	10.41		$	10.53		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.15			0.11			0.15			0.11
Net Realized and Unrealized Gain (Loss)		0.98			(0.12	)		1.47			(0.79	)
Total from Investment Operations		1.13			(0.01	)		1.62			(0.68	)
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		(0.11	)		(0.15	)		(0.20	)
Paid-in-Capital		—			—			(0.00	)⁽³⁾		(0.06	)
Total Distributions		(0.02	)		(0.11	)		(0.15	)		(0.26	)
Net Asset Value, End of Period	$	11.52		$	10.41		$	10.53		$	9.06
Total Return⁽⁴⁾		10.91	%⁽⁷⁾		0.07	%		17.93	%		(6.90	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	183		$	43		$	42		$	9
Ratio of Expenses Before Expense Limitation		4.44	%⁽⁸⁾		10.61	%		7.63	%		22.79	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.15	%⁽⁵⁾⁽⁸⁾		1.14	%⁽⁵⁾		1.14	%⁽⁵⁾		1.14	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income		2.70	%⁽⁵⁾⁽⁸⁾		1.18	%⁽⁵⁾		1.46	%⁽⁵⁾		2.18	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		47	%⁽⁷⁾		68	%		65	%		26	%⁽⁷⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Real Assets Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 18, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	10.36		$	10.50		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.12			0.05			0.07			0.07
Net Realized and Unrealized Gain (Loss)		0.98			(0.14	)		1.48			(0.79	)
Total from Investment Operations		1.10			(0.09	)		1.55			(0.72	)
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		(0.05	)		(0.11	)		(0.16	)
Paid-in-Capital		—			—			(0.00	)⁽³⁾		(0.06	)
Total Distributions		(0.02	)		(0.05	)		(0.11	)		(0.22	)
Net Asset Value, End of Period	$	11.44		$	10.36		$	10.50		$	9.06
Total Return⁽⁴⁾		10.59	%⁽⁷⁾		(0.81	)%		17.12	%		(7.27	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,291		$	218		$	172		$	9
Ratio of Expenses Before Expense Limitation		3.36	%⁽⁸⁾		5.10	%		8.50	%		23.55	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.90	%⁽⁵⁾⁽⁸⁾		1.89	%⁽⁵⁾		1.89	%⁽⁵⁾		1.89	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income		2.12	%⁽⁵⁾⁽⁸⁾		0.54	%⁽⁵⁾		0.68	%⁽⁵⁾		1.37	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		47	%⁽⁷⁾		68	%		65	%		26	%⁽⁷⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

Real Assets Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 18, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	10.38		$	10.51		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.06			0.16			0.19			0.13
Net Realized and Unrealized Gain (Loss)		1.09			(0.13	)		1.47			(0.79	)
Total from Investment Operations		1.15			0.03			1.66			(0.66	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.16	)		(0.21	)		(0.22	)
Paid-in-Capital		—			—			(0.00	)⁽³⁾		(0.06	)
Total Distributions		(0.03	)		(0.16	)		(0.21	)		(0.28	)
Net Asset Value, End of Period	$	11.50		$	10.38		$	10.51		$	9.06
Total Return⁽⁴⁾		11.12	%⁽⁷⁾		0.42	%		18.37	%		(6.69	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	12		$	11		$	11		$	9
Ratio of Expenses Before Expense Limitation		17.30	%⁽⁸⁾		22.80	%		22.24	%		22.53	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.75	%⁽⁵⁾⁽⁸⁾		0.74	%⁽⁵⁾		0.74	%⁽⁵⁾		0.74	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income		2.33	%⁽⁵⁾⁽⁸⁾		1.62	%⁽⁵⁾		1.90	%⁽⁵⁾		2.53	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		47	%⁽⁷⁾		68	%		65	%		26	%⁽⁷⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Real Assets Portfolio. The Fund seeks total return, targeted to be in excess of inflation, through capital appreciation and current income.

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (4) 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; (5) when market quotations are not readily available, including circumstances under which the Adviser or Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	59	$	—	$	—	$	59
Automobiles		143		—		—		143
Banks		636		—		—		636
Beverages		106		—		—		106
Biotechnology		72		—		—		72
Building Products		55		—		—		55
Capital Markets		50		—		—		50
Chemicals		143		—		—		143
Commercial Services & Supplies		156		—		—		156
Communications Equipment		53		—		—		53
Construction & Engineering		366		—		—		366
Consumer Finance		74		—		—		74
Diversified Financial Services		95		—		—		95
Diversified Telecommunication Services		395		—		—		395
Electric Utilities		756		—		—		756
Energy Equipment & Services		73		—		—		73
Entertainment		140		—		—		140
Equity Real Estate Investment Trusts (REITs)		6,720		—		—		6,720
Food & Staples Retailing		107		—		—		107
Food Products		63		—		—		63
Gas Utilities		364		—		—		364
Health Care Equipment & Supplies		254		—		—		254
Health Care Providers & Services		79		—		—		79
Hotels, Restaurants & Leisure		276		—		—		276
Household Products		68		—		—		68
Independent Power Producers & Energy Traders		45		—		—		45
Industrial Conglomerates		120		—		—		120
Information Technology Services		366		—		—		366
Insurance		176		—		—		176
Interactive Media & Services		339		—		—		339
Internet & Direct Marketing Retail		186		—		—		186
Life Sciences Tools & Services		57		—		—		57
Machinery		102		—		—		102

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	$	64	$	—	$	—	$	64
Metals & Mining		51		—		—		51
Multi-Line Retail		117		—		—		117
Multi-Utilities		549		—		—		549
Oil, Gas & Consumable Fuels		1,459		—		—		1,459
Pharmaceuticals		374		—		—		374
Professional Services		104		—		—		104
Real Estate		106		—		—		106
Real Estate Management & Development		1,092		—		—		1,092
Road & Rail		320		—		—		320
Semiconductors & Semiconductor Equipment		363		—		—		363
Software		613		—		—		613
Specialty Retail		55		—		—		55
Tech Hardware, Storage & Peripherals		299		—		—		299
Textiles, Apparel & Luxury Goods		192		—		—		192
Tobacco		49		—		—		49
Trading Companies & Distributors		400		—		—		400
Transportation Infrastructure		941		—		—		941
Water Utilities		315		—		—		315
Total Common Stocks		20,157		—		—		20,157
U.S. Treasury Securities		—		6,048		—		6,048
Short-Term Investments
Investment Company		1,085		—		—		1,085
Repurchase Agreements		—		38		—		38
Total Short-Term Investments		1,085		38		—		1,123
Total Assets	$	21,242	$	6,086	$	—	$	27,328

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

transaction, including principal and accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to determine that the value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and, when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral proceeds may be subject to cost and delays. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

4. 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.

5. Treasury Inflation-Protected Securities: — The Fund may invest in Treasury Inflation-Protected Securities ("TIPS"), including structured bonds in which the principal amount is adjusted daily to keep pace with inflation, as measured by the U.S. Consumer Pricing Index for Urban Consumers. The adjustments to principal due to inflation/deflation are reflected as increases/decreases to interest income with a corresponding adjustment to cost. Such adjustments may have a significant impact on the Fund's distributions and may result in a return of capital to shareholders. The repayment of the original bond principal

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

upon maturity is guaranteed by the full faith and credit of the U.S. Government.

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, 2021:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	298	(a)	$	—	$	(298	)(b)(c)	$	0

(a) Represents market value of loaned securities at period end.

(b) The Fund received cash collateral of approximately $256,000, of which approximately $249,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2021, there was uninvested cash of approximately $7,000, which is

not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $60,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

FASB ASC 860, "Transfers & Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", is intended to provide increased transparency about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

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	$	256	$	—	$	—	$	—	$	256
Total Borrowings	$	256	$	—	$	—	$	—	$	256
Gross amount of recognized liabilities for securities lending transactions									$	256

8. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Noncash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as noncash dividend income at fair value. 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 — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.60	%			0.55	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.80% for Class I shares, 1.15% for Class A shares, 1.90% for Class C shares and 0.75% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time that the Directors act to discontinue all or a portion of such waivers or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $65,000 of advisory fees were waived and approximately $72,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

E. Dividend Disbursing and Transfer Agent: The Company's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $14,731,000 and $9,118,000, respectively. For the six months ended June 30, 2021, purchases and sales of long-term U.S. Government securities were approximately $2,414,000 and $628,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,738			$	7,255			$	7,908			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	1,085

@ Amount is less than $500

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

years in the three-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Paid-in- Capital (000)
$	236	$	—	$	203	$	3

Permanent differences, primarily due to a prior year distribution in excess of current earnings, resulted in the following reclassifications among the components of net assets at December 31, 2020:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	12			$	(12	)

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	53			$	—

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $361,000 and $288,000, respectively, that do not have an expiration date.

I. Credit Facility: The Company and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured

revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. Effective April 19, 2021, the interest rate on borrowings is based on the federal funds effective rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2021, the Fund did not have any borrowings under the Facility.

L. Subsequent Events: At a meeting held on June 15-17, 2021, the Board of Directors of Morgan Stanley Institutional Fund, Inc. (the "Board"), on behalf of the Fund, approved changing the Fund's name. Accordingly, effective August 31, 2021, the Fund's name will be changed to Multi-Asset Real Return Portfolio.

Effective August 31, 2021, the Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the "Subsidiary"). The Subsidiary may invest, directly or indirectly through the use of derivatives, in securities, commodities, commodity-related instruments and other investments, primarily futures, swaps and notes. Investments in the Subsidiary are intended to provide the Fund with exposure to commodities markets while meeting the federal tax requirements that apply to regulated investment companies, like the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 and better than its peer group average for the period since the middle of June 2018, the month of the Fund's inception. 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIRASAN
3693562 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

US Core Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					17
Liquidity Risk Management Program					19
U.S. Customer Privacy Notice					20
Director and Officer Information					23

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in US Core Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

US Core Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
US Core Portfolio Class I	$	1,000.00	$	1,169.70	$	1,020.98	$	4.14	$	3.86		0.77	%
US Core Portfolio Class A		1,000.00		1,167.90		1,019.59		5.64		5.26		1.05
US Core Portfolio Class C		1,000.00		1,163.30		1,015.72		9.82		9.15		1.83
US Core Portfolio Class IS		1,000.00		1,169.60		1,021.08		4.03		3.76		0.75

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

US Core Portfolio

	Shares		Value (000)
Common Stocks (99.4%)
Banks (14.0%)
First Republic Bank		19,441	$	3,639
JPMorgan Chase & Co.		14,273		2,220
SVB Financial Group (a)		5,247		2,919
				8,778
Building Products (1.2%)
Fortune Brands Home & Security, Inc.		7,745		771
Capital Markets (4.7%)
Ameriprise Financial, Inc.		11,755		2,926
Commercial Services & Supplies (3.1%)
Waste Management, Inc.		14,071		1,972
Electric Utilities (2.3%)
NextEra Energy, Inc.		19,736		1,446
Equity Real Estate Investment Trusts (REITs) (5.3%)
SBA Communications Corp. REIT		2,090		666
STORE Capital Corp. REIT		76,879		2,653
				3,319
Food & Staples Retailing (2.6%)
Costco Wholesale Corp.		4,126		1,633
Health Care Equipment & Supplies (8.7%)
Danaher Corp.		11,138		2,989
Edwards Lifesciences Corp. (a)		5,809		602
West Pharmaceutical Services, Inc.		5,239		1,881
				5,472
Health Care Providers & Services (1.8%)
Cigna Corp.		4,636		1,099
Health Care Technology (1.4%)
Veeva Systems, Inc., Class A (a)		2,882		896
Hotels, Restaurants & Leisure (8.6%)
Carnival Corp. (a)		13,378		353
Domino's Pizza, Inc.		3,568		1,664
MGM Resorts International		39,439		1,682
Planet Fitness, Inc., Class A (a)		22,819		1,717
				5,416
Household Durables (0.4%)
Lennar Corp., Class A		2,767		275
Information Technology Services (5.4%)
Euronet Worldwide, Inc. (a)		7,755		1,050
Mastercard, Inc., Class A		6,386		2,331
				3,381
Insurance (1.3%)
Brown & Brown, Inc.		4,149		221
Progressive Corp. (The)		5,980		587
				808
Interactive Media & Services (6.1%)
Alphabet, Inc., Class A (a)		1,564		3,819
Oil, Gas & Consumable Fuels (4.8%)
Chevron Corp.		28,679		3,004

	Shares		Value (000)
Personal Products (3.2%)
Estee Lauder Cos., Inc. (The), Class A		6,360	$	2,023
Software (8.5%)
Microsoft Corp.		19,726		5,344
Specialty Retail (1.6%)
Home Depot, Inc. (The)		3,167		1,010
Tech Hardware, Storage & Peripherals (8.1%)
Apple, Inc.		37,093		5,080
Textiles, Apparel & Luxury Goods (2.1%)
Lululemon Athletica, Inc. (a)		3,659		1,335
Trading Companies & Distributors (4.2%)
United Rentals, Inc. (a)		8,269		2,638
Total Common Stocks (Cost $47,538)				62,445
Short-Term Investment (0.2%)
Investment Company (0.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $99)		98,577		99
Total Investments (99.6%) (Cost $47,637) (b)				62,544
Other Assets in Excess of Liabilities (0.4%)				247
Net Assets (100.0%)			$	62,791

(a) Non-income producing security.

(b) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $15,006,000 and the aggregate gross unrealized depreciation is approximately $99,000, resulting in net unrealized appreciation of approximately $14,907,000.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		35.1	%
Banks		14.0
Health Care Equipment & Supplies		8.8
Hotels, Restaurants & Leisure		8.7
Software		8.5
Tech Hardware, Storage & Peripherals		8.1
Interactive Media & Services		6.1
Information Technology Services		5.4
Equity Real Estate Investment Trusts (REITs)		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.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

US Core Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $47,538)	$	62,445
Investment in Security of Affiliated Issuer, at Value (Cost $99)		99
Total Investments in Securities, at Value (Cost $47,637)		62,544
Receivable for Fund Shares Sold		249
Dividends Receivable		30
Receivable from Affiliate		—	@
Other Assets		87
Total Assets		62,910
Liabilities:
Payable for Advisory Fees		43
Payable for Professional Fees		31
Payable for Fund Shares Redeemed		27
Payable for Shareholder Services Fees — Class A		3
Payable for Distribution and Shareholder Services Fees — Class C		5
Payable for Administration Fees		4
Payable for Custodian Fees		1
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Other Liabilities		5
Total Liabilities		119
Net Assets	$	62,791
Net Assets Consist of:
Paid-in-Capital	$	47,850
Total Distributable Earnings		14,941
Net Assets	$	62,791
CLASS I:
Net Assets	$	41,292
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,951,613
Net Asset Value, Offering and Redemption Price Per Share	$	21.16
CLASS A:
Net Assets	$	14,809
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		704,923
Net Asset Value, Redemption Price Per Share	$	21.01
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.16
Maximum Offering Price Per Share	$	22.17
CLASS C:
Net Assets	$	6,476
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		317,942
Net Asset Value, Offering and Redemption Price Per Share	$	20.37
CLASS IS:
Net Assets	$	214
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		10,095
Net Asset Value, Offering and Redemption Price Per Share	$	21.17

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

US Core Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	229
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		229
Expenses:
Advisory Fees (Note B)		135
Professional Fees		53
Shareholder Services Fees — Class A (Note D)		12
Distribution and Shareholder Services Fees — Class C (Note D)		23
Registration Fees		22
Administration Fees (Note C)		18
Shareholder Reporting Fees		7
Sub Transfer Agency Fees — Class I		2
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class C		1
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		3
Directors' Fees and Expenses		2
Pricing Fees		1
Other Expenses		5
Total Expenses		290
Waiver of Advisory Fees (Note B)		(78	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		211
Net Investment Income		18
Realized Gain:
Investments Sold		502
Change in Unrealized Appreciation (Depreciation):
Investments		6,139
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		6,641
Net Increase in Net Assets Resulting from Operations	$	6,659

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

US Core Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	18		$	37
Net Realized Gain (Loss)		502			(496	)
Net Change in Unrealized Appreciation (Depreciation)		6,139			4,188
Net Increase in Net Assets Resulting from Operations		6,659			3,729
Dividends and Distributions to Shareholders:
Class I		—			(58	)
Class A		—			(16	)
Class C		—			(9	)
Class IS		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(83	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		20,511			9,406
Distributions Reinvested		—			58
Redeemed		(4,233	)		(4,434	)
Class A:
Subscribed		8,606			2,711
Distributions Reinvested		—			16
Redeemed		(947	)		(1,283	)
Class C:
Subscribed		2,822			1,177
Distributions Reinvested		—			9
Redeemed		(357	)		(735	)
Class IS:
Subscribed		175			—
Distributions Reinvested		—			—	@
Redeemed		—			(10	)
Net Increase in Net Assets Resulting from Capital Share Transactions		26,577			6,915
Total Increase in Net Assets		33,236			10,561
Net Assets:
Beginning of Period		29,555			18,994
End of Period	$	62,791		$	29,555
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,031			570
Shares Issued on Distributions Reinvested		—			3
Shares Redeemed		(206	)		(342	)
Net Increase in Class I Shares Outstanding		825			231
Class A:
Shares Subscribed		430			176
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(48	)		(87	)
Net Increase in Class A Shares Outstanding		382			90
Class C:
Shares Subscribed		145			75
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(19	)		(59	)
Net Increase in Class C Shares Outstanding		126			17
Class IS:
Shares Subscribed		9			—
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		—			(1	)
Net Increase (Decrease) in Class IS Shares Outstanding		9			(1	)

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

US Core Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	18.09		$	14.61		$	10.89		$	12.41		$	10.45		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.02			0.06			0.09			0.11			0.08			0.07
Net Realized and Unrealized Gain (Loss)		3.05			3.47			3.82			(1.47	)		1.94			0.48
Total from Investment Operations		3.07			3.53			3.91			(1.36	)		2.02			0.55
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.09	)		(0.05	)		(0.05	)		(0.10	)
Net Realized Gain		—			(0.05	)		(0.10	)		(0.11	)		—			—
Paid-in-Capital		—			—			—			—			(0.01	)		—
Total Distributions		—			(0.05	)		(0.19	)		(0.16	)		(0.06	)		(0.10	)
Net Asset Value, End of Period	$	21.16		$	18.09		$	14.61		$	10.89		$	12.41		$	10.45
Total Return⁽³⁾		16.97	%⁽⁶⁾		24.20	%		36.01	%		(11.00	)%		19.33	%		5.50	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	41,292		$	20,377		$	13,086		$	7,532		$	8,965		$	7,314
Ratio of Expenses Before Expense Limitation		1.12	%⁽⁷⁾		1.97	%		2.09	%		2.31	%		2.78	%		3.62	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		0.77	%⁽⁴⁾⁽⁷⁾		0.80	%⁽⁴⁾		0.78	%⁽⁴⁾		0.80	%⁽⁴⁾		0.78	%⁽⁴⁾		0.77	%⁽⁴⁾⁽⁷⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.79	%⁽⁴⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income		0.24	%⁽⁴⁾⁽⁷⁾		0.42	%⁽⁴⁾		0.71	%⁽⁴⁾		0.86	%⁽⁴⁾		0.68	%⁽⁴⁾		1.12	%⁽⁴⁾⁽⁷⁾
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⁾⁽⁷⁾
Portfolio Turnover Rate		16	%⁽⁶⁾		54	%		69	%		60	%		57	%		28	%⁽⁶⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

US Core Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	17.99		$	14.58		$	10.86		$	12.38		$	10.44		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.00	)⁽³⁾		0.01			0.05			0.07			0.04			0.04
Net Realized and Unrealized Gain (Loss)		3.02			3.45			3.82			(1.47	)		1.92			0.49
Total from Investment Operations		3.02			3.46			3.87			(1.40	)		1.96			0.53
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.05	)		(0.01	)		(0.01	)		(0.09	)
Net Realized Gain		—			(0.05	)		(0.10	)		(0.11	)		—			—
Paid-in-Capital		—			—			—			—			(0.01	)		—
Total Distributions		—			(0.05	)		(0.15	)		(0.12	)		(0.02	)		(0.09	)
Net Asset Value, End of Period	$	21.01		$	17.99		$	14.58		$	10.86		$	12.38		$	10.44
Total Return⁽⁴⁾		16.79	%⁽⁷⁾		23.77	%		35.68	%		(11.35	)%		18.80	%		5.30	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14,809		$	5,807		$	3,393		$	1,833		$	1,874		$	1,406
Ratio of Expenses Before Expense Limitation		1.40	%⁽⁸⁾		2.29	%		2.46	%		2.68	%		3.23	%		4.12	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.05	%⁽⁵⁾⁽⁸⁾		1.12	%⁽⁵⁾		1.15	%⁽⁵⁾		1.15	%⁽⁵⁾		1.15	%⁽⁵⁾		1.15	%⁽⁵⁾⁽⁸⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.11	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.02	)%⁽⁵⁾⁽⁸⁾		0.07	%⁽⁵⁾		0.34	%⁽⁵⁾		0.55	%⁽⁵⁾		0.31	%⁽⁵⁾		0.66	%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		16	%⁽⁷⁾		54	%		69	%		60	%		57	%		28	%⁽⁷⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

US Core Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	17.51		$	14.30		$	10.70		$	12.28		$	10.41		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.08	)		(0.10	)		(0.05	)		(0.03	)		(0.05	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		2.94			3.36			3.75			(1.44	)		1.92			0.48
Total from Investment Operations		2.86			3.26			3.70			(1.47	)		1.87			0.48
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.07	)
Net Realized Gain		—			(0.05	)		(0.10	)		(0.11	)		—			—
Total Distributions		—			(0.05	)		(0.10	)		(0.11	)		—			(0.07	)
Net Asset Value, End of Period	$	20.37		$	17.51		$	14.30		$	10.70		$	12.28		$	10.41
Total Return⁽⁴⁾		16.33	%⁽⁷⁾		22.84	%		34.50	%		(11.94	)%		17.96	%		4.79	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,476		$	3,353		$	2,489		$	1,563		$	1,831		$	1,377
Ratio of Expenses Before Expense Limitation		2.17	%⁽⁸⁾		3.07	%		3.23	%		3.44	%		3.94	%		4.99	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.83	%⁽⁵⁾⁽⁸⁾		1.90	%⁽⁵⁾		1.90	%⁽⁵⁾		1.90	%⁽⁵⁾		1.90	%⁽⁵⁾		1.90	%⁽⁵⁾⁽⁸⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.90	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.82	)%⁽⁵⁾⁽⁸⁾		(0.68	)%⁽⁵⁾		(0.39	)%⁽⁵⁾		(0.22	)%⁽⁵⁾		(0.43	)%⁽⁵⁾		(0.05	)%⁽⁵⁾⁽⁸⁾
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⁾⁽⁸⁾
Portfolio Turnover Rate		16	%⁽⁷⁾		54	%		69	%		60	%		57	%		28	%⁽⁷⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

US Core Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,												Period from May 27, 2016⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			December 31, 2016
Net Asset Value, Beginning of Period	$	18.10		$	14.61		$	10.88		$	12.41		$	10.45		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.02			0.07			0.10			0.12			0.08			0.07
Net Realized and Unrealized Gain (Loss)		3.05			3.47			3.83			(1.48	)		1.94			0.48
Total from Investment Operations		3.07			3.54			3.93			(1.36	)		2.02			0.55
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.10	)		(0.06	)		(0.01	)		(0.10	)
Net Realized Gain		—			(0.05	)		(0.10	)		(0.11	)		—			—
Paid-in-Capital		—			—			—			—			(0.05	)		—
Total Distributions		—			(0.05	)		(0.20	)		(0.17	)		(0.06	)		(0.10	)
Net Asset Value, End of Period	$	21.17		$	18.10		$	14.61		$	10.88		$	12.41		$	10.45
Total Return⁽³⁾		16.96	%⁽⁶⁾		24.27	%		36.17	%		(11.04	)%		19.37	%		5.52	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	214		$	18		$	26		$	11		$	12		$	10
Ratio of Expenses Before Expense Limitation		2.47	%⁽⁷⁾		13.73	%		16.90	%		16.44	%		19.96	%		19.22	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		0.75	%⁽⁴⁾⁽⁷⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾⁽⁷⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.75	%⁽⁴⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income		0.24	%⁽⁴⁾⁽⁷⁾		0.50	%⁽⁴⁾		0.74	%⁽⁴⁾		0.92	%⁽⁴⁾		0.71	%⁽⁴⁾		1.17	%⁽⁴⁾⁽⁷⁾
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⁾⁽⁷⁾
Portfolio Turnover Rate		16	%⁽⁶⁾		54	%		69	%		60	%		57	%		28	%⁽⁶⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the US Core Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class IS.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

• 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, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Banks	$	8,778	$	—	$	—	$	8,778
Building Products		771		—		—		771
Capital Markets		2,926		—		—		2,926
Commercial Services & Supplies		1,972		—		—		1,972
Electric Utilities		1,446		—		—		1,446
Equity Real Estate Investment Trusts (REITs)		3,319		—		—		3,319
Food & Staples Retailing		1,633		—		—		1,633
Health Care Equipment & Supplies		5,472		—		—		5,472
Health Care Providers & Services		1,099		—		—		1,099
Health Care Technology		896		—		—		896
Hotels, Restaurants & Leisure		5,416		—		—		5,416
Household Durables		275		—		—		275
Information Technology Services		3,381		—		—		3,381
Insurance		808		—		—		808

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Interactive Media & Services	$	3,819	$	—	$	—	$	3,819
Oil, Gas & Consumable Fuels		3,004		—		—		3,004
Personal Products		2,023		—		—		2,023
Software		5,344		—		—		5,344
Specialty Retail		1,010		—		—		1,010
Tech Hardware, Storage & Peripherals		5,080		—		—		5,080
Textiles, Apparel & Luxury Goods		1,335		—		—		1,335
Trading Companies & Distributors		2,638		—		—		2,638
Total Common Stocks		62,445		—		—		62,445
Short-Term Investment
Investment Company		99		—		—		99
Total Assets	$	62,544	$	—	$	—	$	62,544

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $750 million				Next $750 million				Over $1.5 billion
	0.60	%			0.55	%			0.50	%

For the six months ended June 30, 2021, 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 total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.80% for Class I shares, 1.15% for Class A shares, 1.90% for Class C shares and 0.75% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the 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, 2021, approximately $78,000 of advisory fees were waived and approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and an indirect

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $34,016,000 and $7,313,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	459			$	20,654			$	21,014			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	99

@ Amount is less than $500.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly,

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

no provision for federal income taxes is required in the financial statements.

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, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:				2019 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	83	$	92	$	125

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	34			$	—

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $456,000 that do not have an expiration date.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 three-year period and the period since the end of May 2016, the month of the Fund's inception. 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIUSCPSAN
3694061 EXP 08.31.22

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

U.S. Real Estate Portfolio

Semi-Annual Report

June 30, 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in U.S. Real Estate Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2021

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Expense Example

U.S. Real Estate Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2021 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/21		Actual Ending Account Value 6/30/21		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	$	1,208.60	$	1,020.33	$	4.93	$	4.51		0.90	%
U.S. Real Estate Portfolio Class A		1,000.00		1,205.90		1,018.94		6.45		5.91		1.18
U.S. Real Estate Portfolio Class L		1,000.00		1,203.80		1,016.12		9.56		8.75		1.75
U.S. Real Estate Portfolio Class C		1,000.00		1,202.10		1,014.88		10.92		9.99		2.00
U.S. Real Estate Portfolio Class IS		1,000.00		1,208.80		1,020.68		4.55		4.16		0.83
U.S. Real Estate Portfolio Class IR		1,000.00		1,208.80		1,020.68		4.55		4.16		0.83

** Annualized.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments

U.S. Real Estate Portfolio

	Shares		Value (000)
Common Stocks (99.3%)
Apartments (11.4%)
American Campus Communities, Inc. REIT		24,726	$	1,155
AvalonBay Communities, Inc. REIT		9,677		2,020
UDR, Inc. REIT		45,976		2,252
				5,427
Data Centers (10.9%)
CyrusOne, Inc. REIT		8,220		588
Equinix, Inc. REIT		5,300		4,254
GDS Holdings Ltd. ADR (China) (a)		4,146		325
				5,167
Diversified (1.0%)
JBG SMITH Properties REIT		14,582		460
Free Standing (3.3%)
Agree Realty Corp. REIT		8,702		613
NETSTREIT Corp. REIT		41,054		947
				1,560
Health Care (18.3%)
Healthcare Trust of America, Inc., Class A REIT		25,207		673
Healthpeak Properties, Inc. REIT		74,811		2,490
Medical Properties Trust, Inc. REIT		33,680		677
Ventas, Inc. REIT		22,768		1,300
Welltower, Inc. REIT		42,827		3,559
				8,699
Industrial (9.8%)
Exeter Industrial Value Fund, LP (a)(b)(c)		7,905,000		547
Prologis, Inc. REIT		34,270		4,096
				4,643
Lodging/Resorts (4.2%)
Boyd Gaming Corp. (a)		7,801		480
Caesars Entertainment, Inc. (a)		3,407		353
Host Hotels & Resorts, Inc. REIT (a)		48,291		825
RLJ Lodging Trust REIT		22,645		345
				2,003
Manufactured Homes (2.0%)
Equity Lifestyle Properties, Inc. REIT		12,615		937
Office (7.2%)
Alexandria Real Estate Equities, Inc. REIT		7,812		1,421
Columbia Property Trust, Inc. REIT		26,166		455
Empire State Realty Trust, Inc., Class A REIT		59,109		709
Kilroy Realty Corp. REIT		11,853		826
				3,411
Regional Malls (4.5%)
Simon Property Group, Inc. REIT		16,562		2,161
Self Storage (10.1%)
Life Storage, Inc. REIT		7,250		779
Public Storage REIT		13,410		4,032
				4,811

	Shares		Value (000)
Shopping Centers (8.8%)
Brixmor Property Group, Inc. REIT		46,651	$	1,068
Kimco Realty Corp. REIT		23,016		480
Retail Properties of America, Inc., Class A REIT		55,000		630
RPT Realty REIT		63,841		828
Weingarten Realty Investors REIT		36,514		1,171
				4,177
Single Family Homes (3.0%)
Invitation Homes, Inc. REIT		38,389		1,432
Specialty (4.8%)
Lamar Advertising Co., Class A REIT		6,008		627
VICI Properties, Inc. REIT		54,317		1,685
				2,312
Total Common Stocks (Cost $35,937)				47,200
Short-Term Investment (1.9%)
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $903)		903,059		903
Total Investments (101.2%) (Cost $36,840) (d)				48,103
Liabilities in Excess of Other Assets (–1.2%)				(579	)
Net Assets (100.0%)			$	47,524

(a) Non-income producing security.

(b) Restricted security valued at fair value and not registered under the Securities Act of 1933. Exeter Industrial Value Fund, LP was acquired between 11/07 — 4/11 and has a current cost basis of approximately $0. At June 30, 2021, this security had an aggregate market value of approximately $547,000, representing 1.2% of net assets.

(c) At June 30, 2021, the Fund held a fair valued security valued at approximately $547,000, representing 1.2% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(d) At June 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $11,428,000 and the aggregate gross unrealized depreciation is approximately $165,000, resulting in net unrealized appreciation of approximately $11,263,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Portfolio of Investments (cont'd)

U.S. Real Estate Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Other*		24.5	%
Health Care		18.1
Apartments		11.3
Data Centers(a)		10.7
Self Storage		10.0
Industrial		9.6
Shopping Centers		8.7
Office		7.1
Total Investments		100.0	%

* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2021 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $35,937)	$	47,200
Investment in Security of Affiliated Issuer, at Value (Cost $903)		903
Total Investments in Securities, at Value (Cost $36,840)		48,103
Foreign Currency, at Value (Cost $3)		3
Receivable for Investments Sold		419
Dividends Receivable		100
Receivable for Fund Shares Sold		4
Receivable from Affiliate		—	@
Other Assets		103
Total Assets		48,732
Liabilities:
Payable for Investments Purchased		1,047
Payable for Professional Fees		32
Payable for Sub Transfer Agency Fees — Class I		18
Payable for Sub Transfer Agency Fees — Class A		5
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Fund Shares Redeemed		17
Payable for Advisory Fees		11
Payable for Custodian Fees		7
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		1
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Shareholder Services Fees — Class A		3
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		3
Other Liabilities		60
Total Liabilities		1,208
Net Assets	$	47,524
Net Assets Consist of:
Paid-in-Capital	$	40,741
Total Distributable Earnings		6,783
Net Assets	$	47,524

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Real Estate Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2021 (000)
CLASS I:
Net Assets	$	32,962
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,112,094
Net Asset Value, Offering and Redemption Price Per Share	$	10.59
CLASS A:
Net Assets	$	12,100
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,199,929
Net Asset Value, Redemption Price Per Share	$	10.08
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.56
Maximum Offering Price Per Share	$	10.64
CLASS L:
Net Assets	$	1,869
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		186,007
Net Asset Value, Offering and Redemption Price Per Share	$	10.05
CLASS C:
Net Assets	$	439
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		44,016
Net Asset Value, Offering and Redemption Price Per Share	$	9.98
CLASS IS:
Net Assets	$	145
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		13,664
Net Asset Value, Offering and Redemption Price Per Share	$	10.59
CLASS IR:
Net Assets	$	9
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		814
Net Asset Value, Offering and Redemption Price Per Share	$	10.59

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2021 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $-@ of foreign Taxes Withheld)	$	541
Dividends from Security of Affiliated Issuer (Note G)		—	@
Non-Cash Dividends from Securities of Unaffiliated Issuers		101
Income from Securities Loaned — Net		—	@
Total Investment Income		642
Expenses:
Advisory Fees (Note B)		162
Professional Fees		54
Registration Fees		32
Shareholder Services Fees — Class A (Note D)		14
Distribution and Shareholder Services Fees — Class L (Note D)		6
Distribution and Shareholder Services Fees — Class C (Note D)		1
Sub Transfer Agency Fees — Class I		15
Sub Transfer Agency Fees — Class A		3
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		18
Shareholder Reporting Fees		16
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		3
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		2
Transfer Agency Fees — Class IR (Note E)		1
Custodian Fees (Note F)		8
Directors' Fees and Expenses		2
Pricing Fees		2
Other Expenses		6
Total Expenses		352
Waiver of Advisory Fees (Note B)		(107	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(9	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		232
Net Investment Income		410
Realized Gain:
Investments Sold		8,236
Foreign Currency Translation		—	@
Net Realized Gain		8,236
Change in Unrealized Appreciation (Depreciation):
Investments		169
Foreign Currency Translation		—	@
Net Change in Unrealized Appreciation (Depreciation)		169
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		8,405
Net Increase in Net Assets Resulting from Operations	$	8,815

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

U.S. Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	410		$	1,257
Net Realized Gain (Loss)		8,236			(7,920	)
Net Change in Unrealized Appreciation (Depreciation)		169			(36,112	)
Net Increase (Decrease) in Net Assets Resulting from Operations		8,815			(42,775	)
Dividends and Distributions to Shareholders:
Class I		(101	)		(1,465	)
Class A		(28	)		(330	)
Class L		(2	)		(30	)
Class C		—	@		(3	)
Class IS		—	@		(94	)
Class IR		—	@		(—	@)
Paid-in-Capital:
Class I		—			(273	)
Class A		—			(62	)
Class L		—			(5	)
Class C		—			(1	)
Class IS		—			(17	)
Class IR		—			(—	@)
Total Dividends and Distributions to Shareholders		(131	)		(2,280	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,588			10,619
Distributions Reinvested		99			1,717
Redeemed		(8,635	)		(81,226	)
Class A:
Subscribed		961			2,945
Distributions Reinvested		28			388
Redeemed		(2,017	)		(16,948	)
Class L:
Exchanged		—	@		209
Distributions Reinvested		2			35
Redeemed		(36	)		(394	)
Class C:
Subscribed		211			62
Distributions Reinvested		—	@		4
Redeemed		(31	)		(41	)
Class IS:
Subscribed		5			484
Distributions Reinvested		—	@		111
Redeemed		(6	)		(8,403	)
Class IR:
Distributions Reinvested		—	@		—	@
Net Decrease in Net Assets Resulting from Capital Share Transactions		(7,831	)		(90,438	)
Total Increase (Decrease) in Net Assets		853			(135,493	)
Net Assets:
Beginning of Period		46,671			182,164
End of Period	$	47,524		$	46,671

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

U.S. Real Estate Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2021 (unaudited) (000)			Year Ended December 31, 2020 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		166			1,302
Shares Issued on Distributions Reinvested		10			240
Shares Redeemed		(898	)		(9,879	)
Net Decrease in Class I Shares Outstanding		(722	)		(8,337	)
Class A:
Shares Subscribed		105			365
Shares Issued on Distributions Reinvested		3			58
Shares Redeemed		(226	)		(2,193	)
Net Decrease in Class A Shares Outstanding		(118	)		(1,770	)
Class L:
Shares Exchanged		—			28
Shares Issued on Distributions Reinvested		—	@@		5
Shares Redeemed		(4	)		(48	)
Net Decrease in Class L Shares Outstanding		(4	)		(15	)
Class C:
Shares Subscribed		22			8
Shares Issued on Distributions Reinvested		—	@@		1
Shares Redeemed		(3	)		(6	)
Net Increase in Class C Shares Outstanding		19			3
Class IS:
Shares Subscribed		—	@@		53
Shares Issued on Distributions Reinvested		—	@@		17
Shares Redeemed		(1	)		(1,167	)
Net Increase (Decrease) in Class IS Shares Outstanding		(1	)		(1,097	)
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

U.S. Real Estate Portfolio

	Class I
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.79		$	11.08		$	10.82		$	15.24		$	17.21		$	17.86
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.09			0.13			0.26			0.34			0.37			0.31
Net Realized and Unrealized Gain (Loss)		1.74			(2.18	)		1.69			(1.33	)		0.16			0.91
Total from Investment Operations		1.83			(2.05	)		1.95			(0.99	)		0.53			1.22
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.20	)		(0.40	)		(0.34	)		(0.26	)		(0.38	)
Net Realized Gain		—			—			(1.29	)		(3.09	)		(2.24	)		(1.49	)
Paid-in-Capital		—			(0.04	)		—			—			—			—
Total Distributions		(0.03	)		(0.24	)		(1.69	)		(3.43	)		(2.50	)		(1.87	)
Net Asset Value, End of Period	$	10.59		$	8.79		$	11.08		$	10.82		$	15.24		$	17.21
Total Return⁽³⁾		20.86	%⁽⁷⁾		(18.05	)%		18.40	%		(8.44	)%		3.31	%		6.79	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	32,962		$	33,708		$	134,856		$	177,690		$	331,637		$	494,967
Ratio of Expenses Before Expense Limitation		1.43	%⁽⁸⁾		1.19	%		1.02	%		1.02	%		1.02	%		1.02	%
Ratio of Expenses After Expense Limitation		0.90	%⁽⁴⁾⁽⁸⁾		0.90	%⁽⁴⁾		0.90	%⁽⁴⁾		0.95	%⁽⁴⁾⁽⁵⁾		1.00	%⁽⁴⁾		1.00	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.90	%⁽⁴⁾		N/A			0.95	%⁽⁴⁾		1.00	%⁽⁴⁾		N/A
Ratio of Net Investment Income		1.87	%⁽⁴⁾⁽⁸⁾		1.52	%⁽⁴⁾		2.18	%⁽⁴⁾		2.44	%⁽⁴⁾		2.19	%⁽⁴⁾		1.73	%⁽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		77	%⁽⁷⁾		39	%		21	%		39	%		43	%		24	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.90% for Class I shares. Prior to July 1, 2018, the maximum ratio was 1.00% for Class I shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

U.S. Real Estate Portfolio

	Class A
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.38		$	10.56		$	10.38		$	14.76		$	16.74		$	17.42
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.07			0.09			0.22			0.29			0.31			0.24
Net Realized and Unrealized Gain (Loss)		1.65			(2.06	)		1.61			(1.28	)		0.15			0.89
Total from Investment Operations		1.72			(1.97	)		1.83			(0.99	)		0.46			1.13
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		(0.17	)		(0.36	)		(0.30	)		(0.20	)		(0.32	)
Net Realized Gain		—			—			(1.29	)		(3.09	)		(2.24	)		(1.49	)
Paid-in-Capital		—			(0.04	)		—			—			—			—
Total Distributions		(0.02	)		(0.21	)		(1.65	)		(3.39	)		(2.44	)		(1.81	)
Net Asset Value, End of Period	$	10.08		$	8.38		$	10.56		$	10.38		$	14.76		$	16.74
Total Return⁽³⁾		20.59	%⁽⁷⁾		(18.28	)%		18.02	%		(8.71	)%		2.98	%		6.47	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	12,100		$	11,043		$	32,596		$	34,459		$	55,640		$	76,082
Ratio of Expenses Before Expense Limitation		1.65	%⁽⁸⁾		1.52	%		1.31	%		1.30	%		N/A			1.30	%
Ratio of Expenses After Expense Limitation		1.18	%⁽⁴⁾⁽⁸⁾		1.25	%⁽⁴⁾		1.22	%⁽⁴⁾		1.26	%⁽⁴⁾⁽⁵⁾		1.34	%⁽⁴⁾		1.29	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.25	%⁽⁴⁾		N/A			1.26	%⁽⁴⁾		1.34	%⁽⁴⁾		N/A
Ratio of Net Investment Income		1.64	%⁽⁴⁾⁽⁸⁾		1.09	%⁽⁴⁾		1.91	%⁽⁴⁾		2.14	%⁽⁴⁾		1.87	%⁽⁴⁾		1.37	%⁽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		77	%⁽⁷⁾		39	%		21	%		39	%		43	%		24	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(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 A shares. Prior to July 1, 2018, the maximum ratio was 1.35% for Class A shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

U.S. Real Estate Portfolio

	Class L
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.36		$	10.55		$	10.37		$	14.74		$	16.73		$	17.41
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.09			0.16			0.23			0.22			0.15
Net Realized and Unrealized Gain (Loss)		1.65			(2.11	)		1.61			(1.28	)		0.15			0.89
Total from Investment Operations		1.70			(2.02	)		1.77			(1.05	)		0.37			1.04
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.13	)		(0.30	)		(0.23	)		(0.12	)		(0.23	)
Net Realized Gain		—			—			(1.29	)		(3.09	)		(2.24	)		(1.49	)
Paid-in-Capital		—			(0.04	)		—			—			—			—
Total Distributions		(0.01	)		(0.17	)		(1.59	)		(3.32	)		(2.36	)		(1.72	)
Net Asset Value, End of Period	$	10.05		$	8.36		$	10.55		$	10.37		$	14.74		$	16.73
Total Return⁽³⁾		20.38	%⁽⁷⁾		(18.77	)%		17.43	%		(9.16	)%		2.37	%		5.91	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,869		$	1,586		$	2,164		$	2,057		$	2,787		$	3,471
Ratio of Expenses Before Expense Limitation		2.25	%⁽⁸⁾		2.11	%		1.88	%		1.84	%		1.89	%		1.84	%
Ratio of Expenses After Expense Limitation		1.75	%⁽⁴⁾⁽⁸⁾		1.75	%⁽⁴⁾		1.75	%⁽⁴⁾		1.79	%⁽⁴⁾⁽⁵⁾		1.85	%⁽⁴⁾		1.84	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.75	%⁽⁴⁾		N/A			1.79	%⁽⁴⁾		1.85	%⁽⁴⁾		N/A
Ratio of Net Investment Income		1.09	%⁽⁴⁾⁽⁸⁾		1.41	%⁽⁴⁾		1.42	%⁽⁴⁾		1.71	%⁽⁴⁾		1.37	%⁽⁴⁾		0.84	%⁽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		77	%⁽⁷⁾		39	%		21	%		39	%		43	%		24	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class L shares. Prior to July 1, 2018, the maximum ratio was 1.85% for Class L shares.

(6) Amount is less than 0.005%.

(7)�� Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

U.S. Real Estate Portfolio

	Class C
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.31		$	10.48		$	10.31		$	14.68		$	16.67		$	17.36
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.04			0.09			0.14			0.19			0.20			0.13
Net Realized and Unrealized Gain (Loss)		1.64			(2.10	)		1.59			(1.29	)		0.13			0.87
Total from Investment Operations		1.68			(2.01	)		1.73			(1.10	)		0.33			1.00
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.12	)		(0.27	)		(0.18	)		(0.08	)		(0.20	)
Net Realized Gain		—			—			(1.29	)		(3.09	)		(2.24	)		(1.49	)
Paid-in-Capital		—			(0.04	)		—			—			—			—
Total Distributions		(0.01	)		(0.16	)		(1.56	)		(3.27	)		(2.32	)		(1.69	)
Net Asset Value, End of Period	$	9.98		$	8.31		$	10.48		$	10.31		$	14.68		$	16.67
Total Return⁽³⁾		20.21	%⁽⁷⁾		(18.91	)%		17.07	%		(9.47	)%		2.14	%		5.72	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	439		$	206		$	232		$	338		$	486		$	427
Ratio of Expenses Before Expense Limitation		3.11	%⁽⁸⁾		3.39	%		2.92	%		2.75	%		2.46	%		3.13	%
Ratio of Expenses After Expense Limitation		2.00	%⁽⁴⁾⁽⁸⁾		2.00	%⁽⁴⁾		2.00	%⁽⁴⁾		2.05	%⁽⁴⁾⁽⁵⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			2.00	%⁽⁴⁾		N/A			2.05	%⁽⁴⁾		2.10	%⁽⁴⁾		N/A
Ratio of Net Investment Income		0.97	%⁽⁴⁾⁽⁸⁾		1.20	%⁽⁴⁾		1.18	%⁽⁴⁾		1.39	%⁽⁴⁾		1.21	%⁽⁴⁾		0.73	%⁽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		77	%⁽⁷⁾		39	%		21	%		39	%		43	%		24	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses After Expense Limitation and the Ratio of Net Investment Income would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.00% for Class C shares. Prior to July 1, 2018, the maximum ratio was 2.10% for Class C shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

U.S. Real Estate Portfolio

	Class IS
	Six Months Ended June 30, 2021			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2020			2019			2018			2017			2016⁽¹⁾
Net Asset Value, Beginning of Period	$	8.79		$	11.08		$	10.82		$	15.24		$	17.22		$	17.86
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.10			0.09			0.25			0.28			0.39			0.33
Net Realized and Unrealized Gain (Loss)		1.73			(2.13	)		1.71			(1.26	)		0.14			0.92
Total from Investment Operations		1.83			(2.04	)		1.96			(0.98	)		0.53			1.25
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.21	)		(0.41	)		(0.35	)		(0.27	)		(0.40	)
Net Realized Gain		—			—			(1.29	)		(3.09	)		(2.24	)		(1.49	)
Paid-in-Capital		—			(0.04	)		—			—			—			—
Total Distributions		(0.03	)		(0.25	)		(1.70	)		(3.44	)		(2.51	)		(1.89	)
Net Asset Value, End of Period	$	10.59		$	8.79		$	11.08		$	10.82		$	15.24		$	17.22
Total Return⁽³⁾		20.88	%⁽⁷⁾		(17.98	)%		18.48	%		(8.36	)%		3.32	%		6.96	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	145		$	121		$	12,307		$	29,523		$	196,536		$	195,490
Ratio of Expenses Before Expense Limitation		4.28	%⁽⁸⁾		1.20	%		1.04	%		0.97	%		N/A			0.90	%
Ratio of Expenses After Expense Limitation		0.83	%⁽⁴⁾⁽⁸⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		0.91	%⁽⁴⁾⁽⁵⁾		0.93	%⁽⁴⁾		0.89	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.83	%⁽⁴⁾		N/A			0.91	%⁽⁴⁾		0.93	%⁽⁴⁾		N/A
Ratio of Net Investment Income		2.01	%⁽⁴⁾⁽⁸⁾		1.00	%⁽⁴⁾		2.09	%⁽⁴⁾		1.98	%⁽⁴⁾		2.33	%⁽⁴⁾		1.79	%⁽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		77	%⁽⁷⁾		39	%		21	%		39	%		43	%		24	%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.83% for Class IS shares. Prior to July 1, 2018, the maximum ratio was 0.93% for Class IS shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021

Financial Highlights

U.S. Real Estate Portfolio

	Class IR
	Six Months Ended June 30, 2021			Year Ended December 31,						Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	8.79		$	11.08		$	10.82		$	14.74
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.10			0.20			0.33			0.43
Net Realized and Unrealized Gain (Loss)		1.73			(2.24	)		1.63			(0.98	)
Total from Investment Operations		1.83			(2.04	)		1.96			(0.55	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.21	)		(0.41	)		(0.28	)
Net Realized Gain		—			—			(1.29	)		(3.09	)
Paid-in-Capital		—			(0.04	)		—			—
Total Distributions		(0.03	)		(0.25	)		(1.70	)		(3.37	)
Net Asset Value, End of Period	$	10.59		$	8.79		$	11.08		$	10.82
Total Return⁽³⁾		20.88	%⁽⁷⁾		(17.98	)%		18.48	%		(5.73	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	9		$	7		$	9		$	7
Ratio of Expenses Before Expense Limitation		23.46	%⁽⁸⁾		30.10	%		23.80	%		19.12	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.83	%⁽⁴⁾⁽⁸⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		0.84	%^(4)(5)(8)
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.83	%⁽⁴⁾		N/A			0.84	%⁽⁴⁾⁽⁸⁾
Ratio of Net Investment Income		2.01	%⁽⁴⁾⁽⁸⁾		2.40	%⁽⁴⁾		2.70	%⁽⁴⁾		4.23	%⁽⁴⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		N/A			N/A			0.00	%⁽⁶⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		77	%⁽⁷⁾		39	%		21	%		39	%

(1) Commencement of Offering.

(2) Per share amount is based on average shares outstanding.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.83% for Class IR shares. Prior to July 1, 2018, the maximum ratio was 0.93% for Class IR shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 has a capital subscription commitment to an investee company for this same purpose, the details of which are disclosed in the Unfunded Commitments note.

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 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards

Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2021:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Apartments	$	5,427	$	—	$	—	$	5,427
Data Centers		5,167		—		—		5,167
Diversified		460		—		—		460
Free Standing		1,560		—		—		1,560
Health Care		8,699		—		—		8,699
Industrial		4,096		—		547		4,643
Lodging/Resorts		2,003		—		—		2,003
Manufactured Homes		937		—		—		937
Office		3,411		—		—		3,411
Regional Malls		2,161		—		—		2,161
Self Storage		4,811		—		—		4,811
Shopping Centers		4,177		—		—		4,177
Single Family Homes		1,432		—		—		1,432
Specialty		2,312		—		—		2,312
Total Common Stocks		46,653		—		547		47,200
Short-Term Investment
Investment Company		903		—		—		903
Total Assets	$	47,556	$	—	$	547	$	48,103

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:

U.S. Real Estate	Common Stock (000)
Beginning Balance	$	530
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		17
Realized gains (losses)		—
Ending Balance	$	547
Net change in unrealized depreciation from investments still held as of June 30, 2021	$	17

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, 2021:

Fair Value at
June 30,
2021
(000)

Valuation
Technique

Unobservable
Input

Common
Stock

547

Reported Capital balance,
adjustments for NAV
practical expedient;
including adjustments
for subsequent
Capital Calls, Return
of Capital and Significant
Market Changes between
last Capital Statement and
Valuation Date

Adjusted Capital
Balance

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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

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.

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.

At June 30, 2021, the Fund did not have any outstanding securities on loan.

5. Unfunded Commitments: Subject to the terms of a Subscription Agreement between the Fund and Exeter Industrial Value Fund LP, the Fund has made a subscription commitment of $8,500,000 for which it will receive 8,500,000 shares of common stock. As of June 30, 2021, Exeter Industrial Value Fund LP has drawn down approximately $7,905,000, which represents 93.0% of the commitment.

6. Restricted Securities: The Fund invests in unregistered or otherwise restricted securities. The term "restricted securities" refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale. As a result, restricted securities may be more difficult to value and the Fund may have difficulty disposing of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Fund, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Fund can sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and the acquirer of the securities. The Fund would, in either case, bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

7. Indemnifications: The Company enters into contracts that contain a variety of indemnifications. The Company's

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

8. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

9. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid

quarterly, at the annual rate based on the daily net assets as follows:

First $500 million				Next $500 million				Over $1 billion
	0.70	%			0.65	%			0.60	%

For the six months ended June 30, 2021, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.24% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares, 0.83% for Class IS shares and 0.83% for Class IR shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2021, approximately $107,000 of advisory fees were waived and approximately $13,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2021, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $35,249,000 and $41,643,000, respectively. There were no purchases and sales of long-term

U.S. Government securities for the six months ended June 30, 2021.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2021 is as follows:

Affiliated Investment Company				Value December 31, 2020 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,051			$	11,215			$	11,363			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2021 (000)
Liquidity Funds				$	—			$	—			$	903

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2020 remains subject to examination by taxing authorities.

2020 Distributions Paid From:						2019 Distributions Paid From:
Ordinary Income (000)		Paid-in- Capital (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	1,906	$	358	$	16	$	6,211	$	21,703

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2020.

At December 31, 2020, the Fund had no distributable earnings on a tax basis.

At December 31, 2020, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $898,000 and $8,502,000, respectively, that do not have an expiration date.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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, 2020, 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 was higher than but close to its peer group average and actual management fee and the 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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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 Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2021 (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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent 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

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIUSREASAN
3691512 EXP 08.31.22

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of 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 as part of EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Institutional Fund, Inc.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
August 18, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
August 18, 2021

/s/ Francis Smith
Francis Smith
Principal Financial Officer
August 18, 2021

Morgan Stanley Institutional Fund N-CSRSCertified semi-annual shareholder report (management investment company)