Prospectus | April 30, 2021
Counterpoint
Global Portfolio |
Ticker Symbol |
Class I |
GLCIX |
Class A |
GLCAX |
Class C |
GLCDX |
Class IS |
GLCSX |
Global
Endurance Portfolio |
Ticker Symbol |
Class I |
MSJIX |
Class A |
MSJAX |
Class C |
MSJCX |
Class IS |
MSJSX |
Global
Permanence Portfolio |
Ticker Symbol |
Class I |
MGKIX |
Class A |
MGKAX |
Class C |
MGKCX |
Class IS |
MGKQX |
Growth
Portfolio |
Ticker Symbol |
Class I |
MSEQX |
Class A |
MSEGX |
Class L |
MSHLX |
Class C |
MSGUX |
Class IS |
MGRPX |
Inception
Portfolio |
Ticker Symbol |
Class I |
MSSGX |
Class A |
MSSMX |
Class L |
MSSLX |
Class C |
MSCOX |
Class IS |
MFLLX |
Permanence
Portfolio |
Ticker Symbol |
Class I |
MSHMX |
Class A |
MSHNX |
Class C |
MSHOX |
Class IS |
MSHPX |
MSIFIGRWTHPRO 4/21
Page | |
Additional Information About the Funds' Investment Strategies and Related Risks |
41 |
67 | |
70 | |
74 | |
78 | |
84 | |
88 | |
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Counterpoint Global Portfolio
Class I |
Class A |
Class C |
Class IS |
||
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) |
|
|
|
|
|
Maximum deferred sales charge (load) (as a percentage based on the lesser of the offering price or NAV at redemption) |
|
|
|
|
Class I |
Class A |
Class C |
Class IS |
||
Advisory Fee3 |
|
|
|
|
|
Distribution and/or Shareholder Service (12b-1) Fee |
|
|
|
|
|
Other Expenses4 |
|
|
|
|
|
Total Annual Fund Operating Expenses5 |
|
|
|
|
|
Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
1
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Counterpoint Global Portfolio (Con’t)
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
1 | Investments
in Class A shares that are not subject to any sales charges at the time of
purchase are subject to a contingent deferred sales charge (“CDSC”)
of 1.00% that will be imposed if you sell your shares within 18 months
after the last day of the month of purchase, except for certain specific
circumstances.
See “Shareholder Information—How To Redeem Fund Shares” for further
information about the CDSC waiver
categories. |
2 | The
Class C CDSC is only applicable if you sell your shares within one year
after purchase. See “Shareholder Information—How To Redeem Fund
Shares”
for a complete discussion of the
CDSC. |
3 | “Advisory Fee” includes the management fee of a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the “Subsidiary”). The Fund’s “Adviser,” Morgan Stanley Investment Management Inc., has agreed to waive or credit a portion of the advisory fee in an amount equal to the management fee paid to the Adviser by the Subsidiary. |
4 | “Other Expenses” include expenses of the Fund’s most recent fiscal year and estimated expenses of the Subsidiary. Other Expenses have been restated to reflect current estimated fees. |
5 | The Fund’s Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that Total Annual Fund Operating Expenses, excluding acquired fund fees and expenses (as applicable), certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.05% for Class I, 1.40% for Class A, 2.15% for Class C and 1.00% for Class IS. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Board of Directors of Morgan Stanley Institutional Fund, Inc. (the “Company”) acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate. Total Annual Fund Operating Expenses and Fee Waiver and/or Expense Reimbursement have been restated to reflect current estimated fees. |
2
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Counterpoint Global Portfolio (Con’t)
• | Equity Securities. In general, prices of equity securities are more volatile than those of fixed-income securities. The prices of equity securities fluctuate, and sometimes widely fluctuate, in response to activities specific to the issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions. |
• | Private Placements and Restricted Securities. The Fund’s investments may include privately placed securities, which are subject to resale restrictions. These securities could have the effect of increasing the level of Fund illiquidity to the extent the Fund may be unable to sell or transfer these securities due to restrictions on transfers or on the ability to find buyers interested in purchasing the securities. Additionally, the market for certain investments deemed liquid at the time of purchase may become illiquid under adverse market or economic conditions. |
• | Foreign and Emerging Market Securities. Investments in foreign markets entail special risks such as currency, political, economic and market risks. There also may be greater market volatility, less reliable financial information, less stringent investor protections and disclosure standards, higher transaction and custody costs, decreased market liquidity and less government and exchange regulation associated with investments in foreign markets. In addition, investments in certain foreign markets that have historically been considered stable may become more volatile and subject to increased risk due to ongoing developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and financial markets has increased the probability that adverse developments and conditions in one country or region will affect the stability of economies and financial markets in other countries or regions. Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign investments may become less liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, its portfolio may be harder to value. The risks of investing in emerging market countries are greater than the risks associated with investments in foreign developed countries. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. In addition, the Fund is limited in its ability to exercise its legal rights or enforce a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular, in emerging markets countries. In addition, the Fund’s investments in foreign issuers may be denominated in foreign currencies and therefore, to the extent unhedged, the value of those investments will fluctuate with U.S. dollar exchange rates. To the extent hedged by the use of foreign currency forward exchange contracts, the precise matching of the foreign currency forward exchange 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. There is additional risk that 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 and that foreign currency forward exchange contracts create exposure to currencies in which the Fund’s securities are not denominated. The use of foreign currency forward exchange 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. Economic sanctions may be, and have been, imposed against certain countries, organizations, companies, entities and/or individuals. Economic sanctions and other similar governmental actions could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell |
3
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Counterpoint Global Portfolio (Con’t)
securities or groups of securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise dispose of investments at inopportune times or prices. |
• | Liquidity. The Fund may make investments that are illiquid or restricted or that may become less liquid in response to overall economic conditions or adverse investor perceptions, and which may entail greater risk than investments in other types of securities. These investments may be more difficult to value or sell, particularly in times of market turmoil, and there may be little trading in the secondary market available for particular securities. If the Fund is forced to sell an illiquid or restricted security to fund redemptions or for other cash needs, it may be forced to sell the security at a loss or for less than its fair value. |
• | Asset Allocation. The Fund’s allocations to the various underlying and independently managed investment strategies may cause the Fund to underperform a particular individual strategy or other funds, including those with a similar investment objective. It is possible that Fund assets could be allocated to underlying and independently managed investment strategies that perform poorly or underperform other investments under various market conditions. |
• | Asia Market. The small size of securities markets and the low trading volume in many countries in Asia may lead to a lack of liquidity. The share prices of companies in the region tend to be volatile and there is a significant possibility of loss. Many of the countries in the region are developing, both politically and economically, and as a result companies in the region may be subject to risks like nationalization or other forms of government interference, and/or may be heavily reliant on only a few industries or commodities. Investments in the region may also be subject to currency risks, such as restrictions on the flow of money in and out of the country, extreme volatility relative to the U.S. dollar and devaluation, all of which could decrease the value of the Fund. Some countries in the region have previously experienced currency devaluations that resulted in higher interest rates, reductions in economic activity and drops in securities prices. |
• | Small and Mid Cap Companies. Investments in small and mid cap companies may involve greater risks than investments in larger, more established companies. The securities issued by small and mid cap companies may be less liquid and such companies may have more limited markets, financial resources and product lines, and may lack the depth of management of larger companies. |
• | Market and Geopolitical Risk. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. These events may be sudden and unexpected, and could adversely affect the liquidity of the Fund’s investments, which may in turn impact valuation, the Fund’s ability to sell securities and/or its ability to meet redemptions. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events (such as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) adversely interrupt the global economy and financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund’s investments, adversely affect and increase the volatility of the Fund’s share price and exacerbate pre-existing risks to the Fund. |
4
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Counterpoint Global Portfolio (Con’t)
|
|
|
|
|
|
Past One Year |
Since Inception | |
Class I (commenced operations on 6/29/2018) |
||
Return Before Taxes |
|
|
Return After Taxes on Distributions1 |
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
Class A (commenced operations on 6/29/2018) |
||
Return Before Taxes |
|
|
Class C (commenced operations on 6/29/2018) |
||
Return Before Taxes |
|
|
Class IS (commenced operations on 6/29/2018) |
||
Return Before Taxes |
|
|
MSCI All Country World Net Index (reflects no deduction for fees, expenses or taxes)2 |
|
|
Lipper Global Multi-Cap Growth Funds Index (reflects no deduction for fees, expenses or taxes)4 |
|
|
1 | These returns do not reflect any tax consequences from a sale of your shares at the end of each period. |
2 | The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term “free float” represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index. |
3 | Since Inception reflects the inception date of the Fund. |
4 | The Lipper Global Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Multi-Cap Funds classification. There are currently 30 funds represented in this index. |
5
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Counterpoint Global Portfolio (Con’t)
Name |
Title with Adviser or Sub-Adviser |
Date
Began |
Dennis P. Lynch |
Managing Director of the Adviser |
Since inception |
Kristian Heugh |
Managing Director of the Sub-Adviser |
Since inception |
6
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Endurance Portfolio
Class I |
Class A |
Class C |
Class IS |
||
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) |
|
|
|
|
|
Maximum deferred sales charge (load) (as a percentage based on the lesser of the offering price or NAV at redemption) |
|
|
|
|
Class I |
Class A |
Class C |
Class IS |
||
Advisory Fee |
|
|
|
|
|
Distribution and/or Shareholder Service (12b-1) Fee |
|
|
|
|
|
Other Expenses |
|
|
|
|
|
Total Annual Fund Operating Expenses 3 |
|
|
|
|
|
Fee Waiver and/or Expense Reimbursement3 |
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement3 |
|
|
|
|
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
7
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Endurance Portfolio (Con’t)
If You SOLD Your Shares |
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
1 | Investments
in Class A shares that are not subject to any sales charges at the time of
purchase are subject to a contingent deferred sales charge (“CDSC”)
of 1.00% that will be imposed if you sell your shares within 18 months
after the last day of the month of purchase, except for certain specific
circumstances.
See “Shareholder Information—How To Redeem Fund Shares” for further
information about the CDSC waiver
categories. |
2 | The
Class C CDSC is only applicable if you sell your shares within one year
after purchase. See “Shareholder Information—How To Redeem Fund
Shares”
for a complete discussion of the
CDSC. |
3 | The Fund’s “Adviser,” Morgan Stanley Investment Management Inc., has agreed to reduce its advisory fee and/or reimburse the Fund so that Total Annual Fund Operating Expenses, excluding acquired fund fees and expenses (as applicable), certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I, 1.35% for Class A, 2.10% for Class C and 0.95% for Class IS. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Board of Directors of Morgan Stanley Institutional Fund, Inc. (the “Company”) acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate. |
8
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Endurance Portfolio (Con’t)
• | Equity Securities. In general, prices of equity securities are more volatile than those of fixed-income securities. The prices of equity securities fluctuate, and sometimes widely fluctuate, in response to activities specific to the issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions. |
• | Private Placements and Restricted Securities. The Fund’s investments may include privately placed securities, which are subject to resale restrictions. These securities could have the effect of increasing the level of Fund illiquidity to the extent the Fund may be unable to sell or transfer these securities due to restrictions on transfers or on the ability to find buyers interested in purchasing the securities. Additionally, the market for certain investments deemed liquid at the time of purchase may become illiquid under adverse market or economic conditions. |
• | Foreign and Emerging Market Securities. Investments in foreign markets entail special risks such as currency, political, economic and market risks. There also may be greater market volatility, less reliable financial information, less stringent investor protections and disclosure standards, higher transaction and custody costs, decreased market liquidity and less government and exchange regulation associated with investments in foreign markets. In addition, investments in certain foreign markets that have historically been considered stable may become more volatile and subject to increased risk due to ongoing developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and financial markets has increased the probability that adverse developments and conditions in one country or region will affect the stability of economies and financial markets in other countries or regions. Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign investments may become less liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, its portfolio may be harder to value. The risks of investing in emerging market countries are greater than the risks associated with investments in foreign developed countries. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. In addition, the Fund is limited in its ability to exercise its legal rights or enforce a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular, in emerging markets countries. In addition, the Fund’s investments in foreign issuers may be denominated in foreign currencies and therefore, to the extent unhedged, the value of those investments will fluctuate with U.S. dollar exchange rates. To the extent hedged by the use of foreign currency forward exchange contracts, the precise matching of the foreign currency forward exchange 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. There is additional risk that 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 and that foreign currency forward exchange contracts create exposure to currencies in which the Fund’s securities are not denominated. The use of foreign currency forward exchange 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. Economic sanctions may be, and have been, imposed against certain countries, organizations, companies, entities and/or individuals. Economic sanctions and other similar governmental actions could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell securities or groups of securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise dispose of investments at inopportune times or prices. |
• | Small and Mid Cap Companies. Investments in small and mid cap companies may involve greater risks than investments in larger, more established companies. The securities issued by small and mid cap companies may be less liquid and such companies may have more limited markets, financial resources and product lines, and may lack the depth of management of larger companies. |
• | Liquidity. The Fund may make investments that are illiquid or restricted or that may become less liquid in response to overall economic conditions or adverse investor perceptions, and which may entail greater risk than investments in other types of securities. These investments may be more difficult to value or sell, particularly in times of market turmoil, and there may be little trading in the secondary market available for particular securities. If the Fund is forced to sell an illiquid or restricted security to fund redemptions or for other cash needs, it may be forced to sell the security at a loss or for less than its fair value. |
• | Market and Geopolitical Risk. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. These events may be sudden and unexpected, and could adversely affect the liquidity of the Fund’s investments, which may in turn impact valuation, the Fund’s ability to sell securities and/or its ability to |
9
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Endurance Portfolio (Con’t)
meet redemptions. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events (such as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) adversely interrupt the global economy and financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund’s investments, adversely affect and increase the volatility of the Fund’s share price and exacerbate pre-existing risks to the Fund. |
|
|
|
|
|
|
Past One Year |
Since Inception | |
Class I (commenced operations on 12/31/2018) |
||
Return Before Taxes |
|
|
Return After Taxes on Distributions1 |
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
Class A (commenced operations on 12/31/2018) |
||
Return Before Taxes |
|
|
Class C (commenced operations on 12/31/2018) |
||
Return Before Taxes |
|
|
Class IS (commenced operations on 12/31/2018) |
||
Return Before Taxes |
|
|
MSCI All Country World Net Index (reflects no deduction for fees, expenses or taxes)2 |
|
|
Lipper Global Small/Mid-Cap Funds Index (reflects no deduction for taxes)4 |
|
|
1 | These returns do not reflect any tax consequences from a sale of your shares at the end of each period. |
2 | The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term “free float” represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index. |
10
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Endurance Portfolio (Con’t)
3 | Since Inception reflects the inception date of the Fund. |
4 | The Lipper Global Small-/Mid-Cap Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Small-/Mid-Cap Funds classification. There are currently 30 funds represented in this index. |
Name |
Title with Adviser |
Date Began Managing Fund |
Manas Gautam |
Executive Director |
Since inception |
11
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Permanence Portfolio
Class I |
Class A |
Class C |
Class IS |
||
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) |
|
|
|
|
|
Maximum deferred sales charge (load) (as a percentage based on the lesser of the offering price or NAV at redemption) |
|
|
|
|
Class I |
Class A |
Class C |
Class IS |
||
Advisory Fee3 |
|
|
|
|
|
Distribution and/or Shareholder Service (12b-1) Fee |
|
|
|
|
|
Other Expenses4 |
|
|
|
|
|
Total Annual Fund Operating Expenses 5 |
|
|
|
|
|
Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
12
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Permanence Portfolio (Con’t)
If You SOLD Your Shares |
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
1 | Investments
in Class A shares that are not subject to any sales charges at the time of
purchase are subject to a contingent deferred sales charge (“CDSC”)
of 1.00% that will be imposed if you sell your shares within 18 months
after the last day of the month of purchase, except for certain specific
circumstances.
See “Shareholder Information—How To Redeem Fund Shares” for further
information about the CDSC waiver
categories. |
2 | The
Class C CDSC is only applicable if you sell your shares within one year
after purchase. See “Shareholder Information—How To Redeem Fund
Shares”
for a complete discussion of the
CDSC. |
3 | “Advisory Fee” includes the management fee of a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the “Subsidiary”). The Fund’s “Adviser,” Morgan Stanley Investment Management Inc., has agreed to waive or credit a portion of the advisory fee in an amount equal to the management fee paid to the Adviser by the Subsidiary. |
4 | “Other Expenses” include expenses of the Fund’s most recent fiscal year and estimated expenses of the Subsidiary. Other Expenses have been restated to reflect current estimated fees. |
5 | The Fund’s Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that Total Annual Fund Operating Expenses, excluding acquired fund fees and expenses (as applicable), certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I, 1.35% for Class A, 2.10% for Class C and 0.95% for Class IS. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Board of Directors of Morgan Stanley Institutional Fund, Inc. (the “Company”) acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate. Total Annual Fund Operating Expenses and Fee Waiver and/or Expense Reimbursement have been restated to reflect current estimated fees. |
13
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Permanence Portfolio (Con’t)
• | Equity Securities. In general, prices of equity securities are more volatile than those of fixed-income securities. The prices of equity securities fluctuate, and sometimes widely fluctuate, in response to activities specific to the issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions. |
• | Private Placements and Restricted Securities. The Fund’s investments may include privately placed securities, which are subject to resale restrictions. These securities could have the effect of increasing the level of Fund illiquidity to the extent the Fund may be unable to sell or transfer these securities due to restrictions on transfers or on the ability to find buyers interested in purchasing the securities. Additionally, the market for certain investments deemed liquid at the time of purchase may become illiquid under adverse market or economic conditions. |
• | Foreign and Emerging Market Securities. Investments in foreign markets entail special risks such as currency, political, economic and market risks. There also may be greater market volatility, less reliable financial information, less stringent investor protections and disclosure standards, higher transaction and custody costs, decreased market liquidity and less government and exchange regulation associated with investments in foreign markets. In addition, investments in certain foreign markets that have historically been considered stable may become more volatile and subject to increased risk due to ongoing developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and financial markets has increased the probability that adverse developments and conditions in one country or region will affect the stability of economies and financial markets in other countries or regions. Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign investments may become less liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, its portfolio may be harder to value. The risks of investing in emerging market countries are greater than the risks associated with investments in foreign developed countries. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. In addition, the Fund is limited in its ability to exercise its legal rights or enforce a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular, in emerging markets countries. In addition, the Fund’s investments in foreign issuers may be denominated in foreign currencies and therefore, to the extent unhedged, the value of those investments will fluctuate with U.S. dollar exchange rates. To the extent hedged by the use of foreign currency forward exchange contracts, the precise matching of the foreign currency forward exchange 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. There is additional risk that 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 and that foreign currency forward exchange contracts create exposure to currencies in which the Fund’s securities are not denominated. The use of foreign currency forward exchange 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. Economic sanctions may be, and have been, imposed against certain countries, organizations, companies, entities and/or individuals. Economic sanctions and other similar governmental actions could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell securities or groups of securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise dispose of investments at inopportune times or prices. |
14
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Permanence Portfolio (Con’t)
• | Liquidity. The Fund may make investments that are illiquid or restricted or that may become less liquid in response to overall economic conditions or adverse investor perceptions, and which may entail greater risk than investments in other types of securities. These investments may be more difficult to value or sell, particularly in times of market turmoil, and there may be little trading in the secondary market available for particular securities. If the Fund is forced to sell an illiquid or restricted security to fund redemptions or for other cash needs, it may be forced to sell the security at a loss or for less than its fair value. |
• | Market and Geopolitical Risk. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. These events may be sudden and unexpected, and could adversely affect the liquidity of the Fund’s investments, which may in turn impact valuation, the Fund’s ability to sell securities and/or its ability to meet redemptions. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events (such as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) adversely interrupt the global economy and financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund’s investments, adversely affect and increase the volatility of the Fund’s share price and exacerbate pre-existing risks to the Fund. |
|
|
|
|
|
|
15
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Permanence Portfolio (Con’t)
Past One Year |
Since Inception | |
Class I (commenced operations on 4/30/2019) |
||
Return Before Taxes |
|
|
Return After Taxes on Distributions1 |
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
Class A (commenced operations on 4/30/2019) |
||
Return Before Taxes |
|
|
Class C (commenced operations on 4/30/2019) |
||
Return Before Taxes |
|
|
Class IS (commenced operations on 4/30/2019) |
||
Return Before Taxes |
|
|
MSCI All Country World Net Index (reflects no deduction for fees, expenses or taxes)2 |
|
|
Lipper Global Multi-Cap Core Funds Index (reflects no deduction for taxes)4 |
|
|
1 | These returns do not reflect any tax consequences from a sale of your shares at the end of each period. |
2 | The MSCI All Country World Net Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term “free float” represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the index is listed in U.S. dollars and assumes reinvestment of net dividends. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index. |
3 | Since Inception reflects the inception date of the Fund. |
4 | The Lipper Global Multi-Cap Core Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Global Multi-Cap Core Funds classification. There are currently 30 funds represented in this Index. |
|
|
Date
Began |
Dennis P. Lynch |
Managing Director |
Since inception |
Sam G. Chainani |
Managing Director |
Since inception |
Jason C. Yeung |
Managing Director |
Since inception |
Armistead B. Nash |
Managing Director |
Since inception |
David S. Cohen |
Managing Director |
Since inception |
Alexander T. Norton |
Executive Director |
Since inception |
Manas Gautam |
Executive Director |
Since inception |
16
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Global Permanence Portfolio (Con’t)
17
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Growth Portfolio
Class I |
Class A |
Class L |
Class C |
Class IS |
||
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) |
|
|
|
|
|
|
Maximum deferred sales charge (load) (as a percentage based on the lesser of the offering price or NAV at redemption) |
|
|
|
|
|
Class I |
Class A |
Class L |
Class C |
Class IS |
||
Advisory Fee3 |
|
|
|
|
|
|
Distribution and/or Shareholder Service (12b-1) Fee |
|
|
|
|
|
|
Other Expenses4 |
|
|
|
|
|
|
Total Annual Fund Operating Expenses |
|
|
|
|
|
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class L |
$ |
$ |
$ |
$ |
18
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Growth Portfolio (Con’t)
If You SOLD Your Shares |
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class L |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
1 | Investments
in Class A shares that are not subject to any sales charges at the time of
purchase are subject to a contingent deferred sales charge (“CDSC”)
of 1.00% that will be imposed if you sell your shares within 18 months
after the last day of the month of purchase, except for certain specific
circumstances.
See “Shareholder Information—How To Redeem Fund Shares” for further
information about the CDSC waiver
categories. |
2 | The
Class C CDSC is only applicable if you sell your shares within one year
after purchase. See “Shareholder Information—How To Redeem Fund
Shares”
for a complete discussion of the
CDSC. |
3 | “Advisory Fee” includes the management fee of a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the “Subsidiary”). The Fund’s “Adviser,” Morgan Stanley Investment Management Inc., has agreed to waive or credit a portion of the advisory fee in an amount equal to the management fee paid to the Adviser by the Subsidiary. |
4 | “Other Expenses” include expenses of the Fund’s most recent fiscal year and estimated expenses of the Subsidiary. |
19
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Growth Portfolio (Con’t)
• | Equity Securities. In general, prices of equity securities are more volatile than those of fixed-income securities. The prices of equity securities fluctuate, and sometimes widely fluctuate, in response to activities specific to the issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions. |
• | Private Placements and Restricted Securities. The Fund’s investments may include privately placed securities, which are subject to resale restrictions. These securities could have the effect of increasing the level of Fund illiquidity to the extent the Fund may be unable to sell or transfer these securities due to restrictions on transfers or on the ability to find buyers interested in purchasing the securities. Additionally, the market for certain investments deemed liquid at the time of purchase may become illiquid under adverse market or economic conditions. |
• | Foreign and Emerging Market Securities. Investments in foreign markets entail special risks such as currency, political, economic and market risks. There also may be greater market volatility, less reliable financial information, less stringent investor protections and disclosure standards, higher transaction and custody costs, decreased market liquidity and less government and exchange regulation associated with investments in foreign markets. In addition, investments in certain foreign markets that have historically been considered stable may become more volatile and subject to increased risk due to ongoing developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and financial markets has increased the probability that adverse developments and conditions in one country or region will affect the stability of economies and financial markets in other countries or regions. Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign investments may become less liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, its portfolio may be harder to value. The risks of investing in emerging market countries are greater than the risks associated with investments in foreign developed countries. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. In addition, the Fund is limited in its ability to exercise its legal rights or enforce a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular, in emerging markets countries. In addition, the Fund’s investments in foreign issuers may be denominated in foreign currencies and therefore, to the extent unhedged, the value of those investments will fluctuate with U.S. dollar exchange rates. To the extent hedged by the use of foreign currency forward exchange contracts, the precise matching of the foreign currency forward exchange 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. There is additional risk that 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 and that foreign currency forward exchange contracts create exposure to currencies in which the Fund’s securities are not denominated. The use of foreign currency forward exchange 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. Economic sanctions may be, and have been, imposed against certain countries, organizations, companies, entities and/or individuals. Economic sanctions and other similar governmental actions could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell securities or groups of securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise dispose of investments at inopportune times or prices. |
• | Liquidity. The Fund may make investments that are illiquid or restricted or that may become less liquid in response to overall economic conditions or adverse investor perceptions, and which may entail greater risk than investments in other types of securities. These investments may be more difficult to value or sell, particularly in times of market turmoil, and there may be little trading in the secondary market available for particular securities. If the Fund is forced to sell an illiquid or restricted security to fund redemptions or for other cash needs, it may be forced to sell the security at a loss or for less than its fair value. |
• | Focused Investing. To the extent that the Fund invests in a limited number of issuers, the Fund will be more susceptible to negative events affecting those issuers and a decline in the value of a particular instrument may cause the Fund’s overall value to decline to a greater degree than if the Fund were invested more widely. |
• | Market and Geopolitical Risk. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. These events may be sudden and unexpected, and could adversely affect the liquidity of the Fund’s investments, which may in turn impact valuation, the Fund’s ability to sell securities and/or its ability to |
20
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Growth Portfolio (Con’t)
meet redemptions. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events (such as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) adversely interrupt the global economy and financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund’s investments, adversely affect and increase the volatility of the Fund’s share price and exacerbate pre-existing risks to the Fund. |
|
|
|
|
|
|
Past One Year |
Past Five Years |
Past Ten Years |
Since Inception | |
Class I (commenced operations on 4/2/1991) | ||||
Return Before Taxes |
|
|
|
|
Return After Taxes on Distributions1 |
|
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
|
|
Class A (commenced operations on 1/2/1996) | ||||
Return Before Taxes |
|
|
|
|
Class L (commenced operations on 4/27/2012) | ||||
Return Before Taxes |
|
|
|
|
Class C (commenced operations on 4/30/2015) | ||||
Return Before Taxes |
|
|
|
|
21
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Growth Portfolio (Con’t)
Past One Year |
Past Five Years |
Past Ten Years |
Since Inception | |
Class IS (commenced operations on 9/13/2013) | ||||
Return Before Taxes |
|
|
|
|
Russell 1000® Growth Index (reflects no deduction for fees, expenses or taxes)2 |
|
|
|
|
Lipper Multi-Cap Growth Funds Index (reflects no deduction for taxes)4 |
|
|
|
|
1 | These returns do not reflect any tax consequences from a sale of your shares at the end of each period. |
2 | The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Index is an index of approximately 1,000 of the largest U.S. companies based on a combination of market capitalization and current index membership. It is not possible to invest directly in an index. |
3 | Since Inception reflects the inception date of Class I. |
4 | The Lipper Multi-Cap Growth Funds Index is an equally-weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Multi-Cap Growth Funds classification. There are currently 30 funds represented in this index. |
Name |
Title with Adviser |
Date
Began |
Dennis P. Lynch |
Managing Director |
June 2004 |
Sam G. Chainani |
Managing Director |
June 2004 |
Jason C. Yeung |
Managing Director |
September 2007 |
Armistead B. Nash |
Managing Director |
September 2008 |
David S. Cohen |
Managing Director |
June 2004 |
Alexander T. Norton |
Executive Director |
July 2005 |
22
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Growth Portfolio (Con’t)
23
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Inception Portfolio
Class I |
Class A |
Class L |
Class C |
Class IS |
||
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) |
|
|
|
|
|
|
Maximum deferred sales charge (load) (as a percentage based on the lesser of the offering price or NAV at redemption) |
|
|
|
|
|
|
Redemption Fee (as a percentage of the amount redeemed on redemptions made within 30 days of purchase) |
|
|
|
|
|
Class I |
Class A |
Class L |
Class C |
Class IS |
||
Advisory Fee3 |
|
|
|
|
|
|
Distribution and/or Shareholder Service (12b-1) Fee |
|
|
|
|
|
|
Other Expenses4 |
|
|
|
|
|
|
Total Annual Fund Operating Expenses5 |
|
|
|
|
|
|
Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
|
24
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Inception Portfolio (Con’t)
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class L |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class L |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
1 | Investments
in Class A shares that are not subject to any sales charges at the time of
purchase are subject to a contingent deferred sales charge (“CDSC”)
of 1.00% that will be imposed if you sell your shares within 18 months
after the last day of the month of purchase, except for certain specific
circumstances.
See “Shareholder Information—How To Redeem Fund Shares” for further
information about the CDSC waiver
categories. |
2 | The
Class C CDSC is only applicable if you sell your shares within one year
after purchase. See “Shareholder Information—How To Redeem Fund
Shares”
for a complete discussion of the
CDSC. |
3 | “Advisory Fee” includes the management fee of a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the “Subsidiary”). The Fund’s “Adviser,” Morgan Stanley Investment Management Inc., has agreed to waive or credit a portion of the advisory fee in an amount equal to the management fee paid to the Adviser by the Subsidiary. |
4 | “Other Expenses” include expenses of the Fund’s most recent fiscal year and estimated expenses of the Subsidiary. Other Expenses have been restated to reflect current estimated fees. |
5 | The Fund’s Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that Total Annual Fund Operating Expenses, excluding acquired fund fees and expenses (as applicable), certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I, 1.35% for Class A, 1.85% for Class L, 2.10% for Class C and 0.93% for Class IS. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Board of Directors of Morgan Stanley Institutional Fund, Inc. (the “Company”) acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate. Total Annual Fund Operating Expenses and Fee Waiver and/or Expense Reimbursement have been restated to reflect current estimated fees. |
25
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Inception Portfolio (Con’t)
• | Equity Securities. In general, prices of equity securities are more volatile than those of fixed-income securities. The prices of equity securities fluctuate, and sometimes widely fluctuate, in response to activities specific to the issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions. |
• | Private Placements and Restricted Securities. The Fund’s investments may include privately placed securities, which are subject to resale restrictions. These securities could have the effect of increasing the level of Fund illiquidity to the extent the Fund may be unable to sell or transfer these securities due to restrictions on transfers or on the ability to find buyers interested in purchasing the securities. Additionally, the market for certain investments deemed liquid at the time of purchase may become illiquid under adverse market or economic conditions. |
• | Foreign and Emerging Market Securities. Investments in foreign markets entail special risks such as currency, political, economic and market risks. There also may be greater market volatility, less reliable financial information, less stringent investor protections and disclosure standards, higher transaction and custody costs, decreased market liquidity and less government and exchange regulation associated with investments in foreign markets. In addition, investments in certain foreign markets that have historically been considered stable may become more volatile and subject to increased risk due to ongoing developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and financial markets has increased the probability that adverse developments and conditions in one country or region will affect the stability of economies and financial markets in other countries or regions. Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign investments may become less liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, its portfolio may be harder to value. The risks of investing in emerging market countries are greater than the risks associated with investments in foreign developed countries. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. In addition, the Fund is limited in its ability to exercise its legal rights or enforce a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular, in emerging markets countries. In addition, the Fund’s investments in foreign issuers may be denominated in foreign currencies and therefore, to the extent unhedged, the value of those investments will fluctuate with U.S. dollar exchange rates. To the extent hedged by the use of foreign currency forward exchange contracts, the precise matching of the foreign currency forward exchange 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. There is additional risk that 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 and that foreign currency forward exchange contracts create exposure to currencies in which the Fund’s securities are not denominated. The use of foreign currency forward exchange 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. Economic sanctions may be, and have been, imposed against certain countries, organizations, companies, entities and/or individuals. Economic sanctions and other similar governmental actions could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell securities or groups of securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise dispose of investments at inopportune times or prices. |
26
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Inception Portfolio (Con’t)
• | Small Cap Companies. Investments in small cap companies may involve greater risks than investments in larger, more established companies. The securities issued by small cap companies may be less liquid and such companies may have more limited markets, financial resources and product lines, and may lack the depth of management of larger companies. |
• | Liquidity. The Fund may make investments that are illiquid or restricted or that may become less liquid in response to overall economic conditions or adverse investor perceptions, and which may entail greater risk than investments in other types of securities. These investments may be more difficult to value or sell, particularly in times of market turmoil, and there may be little trading in the secondary market available for particular securities. If the Fund is forced to sell an illiquid or restricted security to fund redemptions or for other cash needs, it may be forced to sell the security at a loss or for less than its fair value. |
• | Market and Geopolitical Risk. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. These events may be sudden and unexpected, and could adversely affect the liquidity of the Fund’s investments, which may in turn impact valuation, the Fund’s ability to sell securities and/or its ability to meet redemptions. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events (such as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) adversely interrupt the global economy and financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund’s investments, adversely affect and increase the volatility of the Fund’s share price and exacerbate pre-existing risks to the Fund. |
• | Portfolio Turnover. Consistent with its investment policies, the Fund will purchase and sell securities without regard to the effect on portfolio turnover. Higher portfolio turnover will cause the Fund to incur additional transaction costs. |
|
|
|
|
|
|
27
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Inception Portfolio (Con’t)
Past One Year |
Past Five Years |
Past Ten Years |
Since Inception | |
Class I (commenced operations on 11/1/1989) | ||||
Return Before Taxes |
|
|
|
|
Return After Taxes on Distributions1 |
|
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares |
|
|
|
|
Class A (commenced operations on 1/2/1996) | ||||
Return Before Taxes |
|
|
|
|
Class L (commenced operations on 11/11/2011) | ||||
Return Before Taxes |
|
|
|
|
Class C (commenced operations on 5/31/2017) | ||||
Return Before Taxes |
|
|
|
|
Class IS (commenced operations on 9/13/2013) | ||||
Return Before Taxes |
|
|
|
|
Russell 2000® Growth Index (reflects no deduction for fees, expenses or taxes)2 |
|
|
|
|
Lipper Small-Cap Growth Funds Index (reflects no deduction for taxes)4 |
|
|
|
|
1 | These returns do not reflect any tax consequences from a sale of your shares at the end of each period. |
2 | The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market capitalization and current index membership. It is not possible to invest directly in an index. |
3 | Since Inception reflects the inception date of Class I. |
4 | The Lipper Small-Cap Growth Funds Index is an equally-weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Small-Cap Growth Funds classification. There are currently 30 funds represented in this index. |
Name |
Title with Adviser |
Date
Began |
Dennis P. Lynch |
Managing Director |
January 1999 |
Sam G. Chainani |
Managing Director |
June 2004 |
Jason C. Yeung |
Managing Director |
September 2007 |
Armistead B. Nash |
Managing Director |
September 2008 |
David S. Cohen |
Managing Director |
January 2002 |
Alexander T. Norton |
Executive Director |
July 2005 |
28
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Inception Portfolio (Con’t)
29
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Permanence Portfolio
Class I |
Class A |
Class C |
Class IS |
||
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) |
|
|
|
|
|
Maximum deferred sales charge (load) (as a percentage based on the lesser of the offering price or NAV at redemption) |
|
|
|
|
Class I |
Class A |
Class C |
Class IS |
||
Advisory Fee3 |
|
|
|
|
|
Distribution and/or Shareholder Service (12b-1) Fee |
|
|
|
|
|
Other Expenses4 |
|
|
|
|
|
Total Annual Fund Operating Expenses5 |
|
|
|
|
|
Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement5 |
|
|
|
|
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
30
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Permanence Portfolio (Con’t)
If You SOLD Your Shares |
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
|
|||||
1 Year |
3 Years |
5 Years |
10 Years |
||
Class I |
$ |
$ |
$ |
$ |
|
Class A |
$ |
$ |
$ |
$ |
|
Class C |
$ |
$ |
$ |
$ |
|
Class IS |
$ |
$ |
$ |
$ |
1 | Investments
in Class A shares that are not subject to any sales charges at the time of
purchase are subject to a contingent deferred sales charge (“CDSC”)
of 1.00% that will be imposed if you sell your shares within 18 months
after the last day of the month of purchase, except for certain specific
circumstances.
See “Shareholder Information—How To Redeem Fund Shares” for further
information about the CDSC waiver
categories. |
2 | The
Class C CDSC is only applicable if you sell your shares within one year
after purchase. See “Shareholder Information—How To Redeem Fund
Shares”
for a complete discussion of the
CDSC. |
3 | “Advisory Fee” includes the management fee of a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands (the “Subsidiary”). The Fund’s “Adviser,” Morgan Stanley Investment Management Inc., has agreed to waive or credit a portion of the advisory fee in an amount equal to the management fee paid to the Adviser by the Subsidiary. |
4 | “Other Expenses” include expenses of the Fund’s most recent fiscal year and estimated expenses of the Subsidiary. Other Expenses have been restated to reflect current estimated fees. |
5 | The Fund’s Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that Total Annual Fund Operating Expenses, excluding acquired fund fees and expenses (as applicable), certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.85% for Class I, 1.20% for Class A, 1.95% for Class C and 0.80% for Class IS. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Board of Directors of Morgan Stanley Institutional Fund, Inc. (the “Company”) acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate. Total Annual Fund Operating Expenses and Fee Waiver and/or Expense Reimbursement have been restated to reflect current estimated fees. |
31
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Permanence Portfolio (Con’t)
• | Equity Securities. In general, prices of equity securities are more volatile than those of fixed-income securities. The prices of equity securities fluctuate, and sometimes widely fluctuate, in response to activities specific to the issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions. |
• | Private Placements and Restricted Securities. The Fund’s investments may include privately placed securities, which are subject to resale restrictions. These securities could have the effect of increasing the level of Fund illiquidity to the extent the Fund may be unable to sell or transfer these securities due to restrictions on transfers or on the ability to find buyers interested in purchasing the securities. Additionally, the market for certain investments deemed liquid at the time of purchase may become illiquid under adverse market or economic conditions. |
• | Foreign and Emerging Market Securities. Investments in foreign markets entail special risks such as currency, political, economic and market risks. There also may be greater market volatility, less reliable financial information, less stringent investor protections and disclosure standards, higher transaction and custody costs, decreased market liquidity and less government and exchange regulation associated with investments in foreign markets. In addition, investments in certain foreign markets that have historically been considered stable may become more volatile and subject to increased risk due to ongoing developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and financial markets has increased the probability that adverse developments and conditions in one country or region will affect the stability of economies and financial markets in other countries or regions. Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, organizations, companies, entities and/or individuals, changes in international trading patterns, trade barriers and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign investments may become less liquid in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market turmoil. When the Fund holds illiquid investments, its portfolio may be harder to value. The risks of investing in emerging market countries are greater than the risks associated with investments in foreign developed countries. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. In addition, the Fund is limited in its ability to exercise its legal rights or enforce a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular, in emerging markets countries. In addition, the Fund’s investments in foreign issuers may be denominated in foreign currencies and therefore, to the extent unhedged, the value of those investments will fluctuate with U.S. dollar exchange rates. To the extent hedged by the use of foreign currency forward exchange contracts, the precise matching of the foreign currency forward exchange 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. There is additional risk that 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 and that foreign currency forward exchange contracts create exposure to currencies in which the Fund’s securities are not denominated. The use of foreign currency forward exchange 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. Economic sanctions may be, and have been, imposed against certain countries, organizations, companies, entities and/or individuals. Economic sanctions and other similar governmental actions could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell securities or groups of securities, and thus may make the Fund’s investments in such securities less liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise dispose of investments at inopportune times or prices. |
• | Liquidity. The Fund may make investments that are illiquid or restricted or that may become less liquid in response to overall economic conditions or adverse investor perceptions, and which may entail greater risk than investments in other types of securities. These investments may be more difficult to value or sell, particularly in times of market turmoil, and there may be little |
32
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Permanence Portfolio (Con’t)
trading in the secondary market available for particular securities. If the Fund is forced to sell an illiquid or restricted security to fund redemptions or for other cash needs, it may be forced to sell the security at a loss or for less than its fair value. |
• | Focused Investing. To the extent that the Fund invests in a limited number of issuers, the Fund will be more susceptible to negative events affecting those issuers and a decline in the value of a particular instrument may cause the Fund’s overall value to decline to a greater degree than if the Fund were invested more widely. |
• | Market and Geopolitical Risk. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. These events may be sudden and unexpected, and could adversely affect the liquidity of the Fund’s investments, which may in turn impact valuation, the Fund’s ability to sell securities and/or its ability to meet redemptions. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events (such as war, natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) adversely interrupt the global economy and financial markets. It is difficult to predict when events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). These events may negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund’s investments, adversely affect and increase the volatility of the Fund’s share price and exacerbate pre-existing risks to the Fund. |
Name |
Title with Adviser |
Date
Began |
Dennis P. Lynch |
Managing Director |
Since Inception |
Sam G. Chainani |
Managing Director |
Since Inception |
Jason C. Yeung |
Managing Director |
Since Inception |
Armistead B. Nash |
Managing Director |
Since Inception |
David S. Cohen |
Managing Director |
Since Inception |
Alexander T. Norton |
Executive Director |
Since Inception |
Manas Gautam |
Executive Director |
Since Inception |
33
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Summary
Permanence Portfolio (Con’t)
34
Morgan Stanley Institutional Fund, Inc. Prospectus | Details of the Funds
Counterpoint Global Portfolio
35
Morgan Stanley Institutional Fund, Inc. Prospectus | Details of the Fund
Global Endurance Portfolio
36
Morgan Stanley Institutional Fund, Inc. Prospectus | Details of the Fund
Global Permanence Portfolio
37
Morgan Stanley Institutional Fund, Inc. Prospectus | Details of the Funds
Growth Portfolio
38
Morgan Stanley Institutional Fund, Inc. Prospectus | Details of the Funds
Inception Portfolio
39
Morgan Stanley Institutional Fund, Inc. Prospectus | Details of the Fund
Permanence Portfolio
40
Morgan Stanley Institutional Fund, Inc. Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
This section discusses additional information relating to the Funds’ investment strategies, other types of investments that the Funds may make and related risk factors. The Funds’ investment practices and limitations are also described in more detail in the Statement of Additional Information (“SAI”), which is incorporated by reference and legally is a part of this Prospectus. For details on how to obtain a copy of the SAI and other reports and information, see the back cover of this Prospectus. |
41
Morgan Stanley Institutional Fund, Inc Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
Additional Information About the Fund’s Investment Strategies and Related Risks (Con’t)
42
Morgan Stanley Institutional Fund, Inc. Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
Additional Information About the Fund’s Investment Strategies and Related Risks (Con’t)
43
Morgan Stanley Institutional Fund, Inc Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
Additional Information About the Fund’s Investment Strategies and Related Risks (Con’t)
44
Morgan Stanley Institutional Fund, Inc. Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
Additional Information About the Fund’s Investment Strategies and Related Risks (Con’t)
45
Morgan Stanley Institutional Fund, Inc Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
Additional Information About the Fund’s Investment Strategies and Related Risks (Con’t)
46
Morgan Stanley Institutional Fund, Inc. Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
Additional Information About the Fund’s Investment Strategies and Related Risks (Con’t)
47
Morgan Stanley Institutional Fund, Inc Prospectus | Additional Information About the Fund’s Investment Strategies and Related Risks
Additional Information About the Fund’s Investment Strategies and Related Risks (Con’t)
48
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Management
Fund Management
Fund (as a percentage of average daily net assets) | |
Counterpoint Global |
0.00% |
Global Endurance |
0.00% |
Global Permanence |
0.00% |
Growth |
0.37% |
Inception |
0.73% |
Permanence1 |
0.00% |
1 | For the period March 31, 2020 (commencement of operations) through December 31, 2020. |
Fund |
Expense Cap Class I |
Expense Cap Class A |
Expense Cap Class L |
Expense Cap Class C |
Expense Cap Class IS |
|
Counterpoint Global |
1.05% |
1.40% |
N/A |
2.15% |
1.00% |
|
Global Endurance |
1.00% |
1.35% |
N/A |
2.10% |
0.95% |
|
Global Permanence |
1.00% |
1.35% |
N/A |
2.10% |
0.95% |
|
Growth |
0.80% |
1.15% |
1.65% |
1.90% |
0.73% |
|
Inception |
1.00% |
1.35% |
1.85% |
2.10% |
0.93% |
|
Permanence |
0.85% |
1.20% |
N/A |
1.95% |
0.80% |
49
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Management
Fund Management (Con’t)
50
Morgan Stanley Institutional Fund, Inc. Prospectus | Fund Management
Fund Management (Con’t)
51
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information
52
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
53
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
54
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
Front-End Sales Charge |
|||
Amount of Single Transaction |
Percentage of Public Offering Price |
Approximate Percentage of Net Amount Invested |
Dealer Commission as a Percentage of Offering Price |
Less than $25,000 |
5.25% |
5.54% |
5.00% |
$25,000 but less than $50,000 |
4.75% |
4.99% |
4.50% |
$50,000 but less than $100,000 |
4.00% |
4.17% |
3.75% |
$100,000 but less than $250,000 |
3.00% |
3.09% |
2.75% |
$250,000 but less than $500,000 |
2.50% |
2.56% |
2.25% |
$500,000 but less than $1 million |
2.00% |
2.04% |
1.80% |
$1 million and over* |
0.00% |
0.00% |
0.00% |
* | The Distributor may pay a commission of up to 1.00% to a Financial Intermediary for purchase amounts of $1 million or more. |
• | A single account (including an individual, a joint account, a trust or fiduciary account). |
• | A family member account (limited to spouse, and children under the age of 21, but including trust accounts established solely for the benefit of a spouse, or children under the age of 21). |
• | An UGMA/UTMA (Uniform Gifts to Minors Act/Uniform Transfers to Minors Act) account. |
• | An individual retirement account (“IRA”). |
• | Sales through banks, broker-dealers and other financial institutions (including registered investment advisers and financial planners) purchasing shares on behalf of their clients in (i) discretionary and non-discretionary advisory programs, (ii) asset allocation programs, (iii) other programs in which the client pays an asset-based fee for advice or for executing transactions in Fund shares or for otherwise participating in the program or (iv) certain other investment programs that do not charge an asset-based fee, as outlined in an agreement between the Distributor and such financial institution. |
• | Sales through Financial Intermediaries who have entered into an agreement with the Distributor to offer Fund shares to self-directed investment brokerage accounts, which may or may not charge a transaction fee. |
• | Qualified state tuition plans described in Section 529 of the Code (subject to all applicable terms and conditions). |
55
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
• | Defined contribution, defined benefit and other employer-sponsored employee benefit plans, whether or not qualified under the Code, where such plans purchase Class A shares through a plan-level or omnibus account sponsored or serviced by a Financial Intermediary that has an agreement with the Fund, the Distributor and/or the Adviser pursuant to which Class A shares are available to such plans without an initial sales charge. |
• | Certain retirement and deferred compensation programs established by Morgan Stanley Investment Management or its affiliates for their employees or the Company’s Directors. |
• | Current or retired Directors or Trustees of the Morgan Stanley Funds (as defined below), such persons’ spouses, and children under the age of 21, and trust accounts for which any of such persons is a beneficiary. |
• | Current or retired directors, officers and employees of Morgan Stanley and any of its subsidiaries, such persons’ spouses, and children under the age of 21, and trust accounts for which any of such persons is a beneficiary. |
• | Certain other registered open-end investment companies whose shares are distributed by the Distributor. |
• | Investments made in connection with certain mergers and/or reorganizations as approved by the Adviser. |
• | The reinvestment of dividends from Class A shares in additional Class A shares of the same Fund. |
56
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
57
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
58
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
• | Sales of shares held at the time you die or become disabled (within the definition in Section 72(m)(7) of the Code, which relates to the ability to engage in gainful employment), if the shares are: (i) registered either in your individual name or in the names of you and your spouse as joint tenants with right of survivorship; (ii) registered in the name of a trust of which (a) you are the settlor and that is revocable by you (i.e., a “living trust”) or (b) you and your spouse are the settlors and that is revocable by you or your spouse (i.e., a “joint living trust”); or (iii) held in a qualified corporate or self-employed retirement plan, IRA or 403(b) Custodial Account; provided in either case that the sale is requested within one year after your death or initial determination of disability. |
• | Sales in connection with the following retirement plan “distributions”: (i) lump-sum or other distributions from a qualified corporate or self-employed retirement plan following retirement (or, in the case of a “key employee” of a “top heavy” plan, following attainment of age 59 ½); (ii) required minimum distributions and certain other distributions (such as those following attainment of age 59 ½) from an IRA or 403(b) Custodial Account; or (iii) a tax-free return of an excess IRA contribution (a “distribution” does not include a direct transfer of IRA, 403(b) Custodial Account or retirement plan assets to a successor custodian or trustee). |
• | Sales of shares in connection with the systematic withdrawal plan of up to 12% annually of the value of each Fund from which plan sales are made. The percentage is determined on the date you establish the systematic withdrawal plan and based on the next calculated share price. You may have this CDSC waiver applied in amounts up to 1% per month, 3% per quarter, 6% semi-annually or 12% annually. Shares with no CDSC will be sold first, followed by those with the lowest CDSC. As such, the waiver benefit will be reduced by the amount of your shares that are not subject to a CDSC. If you suspend your participation in the plan, you may later resume plan payments without requiring a new determination of the account value for the 12% CDSC waiver. |
59
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
60
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
61
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
62
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
63
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
64
Morgan Stanley Institutional Fund, Inc. Prospectus | Shareholder Information
Shareholder Information (Con’t)
* The Asia Opportunity, China Equity, Counterpoint Global, Developing Opportunity, Emerging Markets Leaders, Emerging Markets Small Cap, Global Concentrated, Global Concentrated Real Estate, Global Core, Global Endurance, Global Permanence, Permanence, Real Assets and US Core Portfolios do not offer Class L shares. |
65
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Financial Highlights
66
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Class I | ||||||
Year Ended December 31, |
||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
Period from June 29, 2018(1) to December 31, 2018 | |||
Net Asset Value, Beginning of Period |
$ |
11.32
|
$ |
8.46
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.11
)
|
(0.03
)
|
(0.03
)
| |||
Net Realized and Unrealized Gain (Loss) |
8.34
|
2.89
|
(1.41
)
| |||
Total from Investment Operations |
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 |
$ |
19.01
|
$ |
11.32
|
$ |
8.46
|
Total Return(3) |
72.70
%
|
33.81
%
|
(14.36
)%
(5)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
23,717
|
$ |
10,097
|
$ |
5,733
|
Ratio of Expenses Before Expense Limitation |
3.29
%
|
5.22
%
|
6.83
%
(6)
| |||
Ratio of Expenses After Expense Limitation |
1.04
%
(4)
|
1.03
%
(4)
|
1.03
%
(4)(6)
| |||
Ratio of Net Investment Loss |
(0.79
)%
(4)
|
(0.25
)%
(4)
|
(0.54
)%
(4)(6)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01
%
|
0.01
%
|
0.01
%
(6)
| |||
Portfolio Turnover Rate |
116
%
|
67
%
|
54
%
(5)
|
(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) |
Not annualized. |
(6) |
Annualized. |
67
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Counterpoint Global Portfolio
Class A | ||||||
Year Ended December 31, |
Period
from June 29, 2018(1) | |||||
Selected Per Share Data and Ratios |
2020 |
2019 | ||||
Net Asset Value, Beginning of Period |
$ |
11.28
|
$ |
8.47
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.19
)
|
(0.06
)
|
(0.04
)
| |||
Net Realized and Unrealized Gain (Loss) |
8.34
|
2.87
|
(1.40
)
| |||
Total from Investment Operations |
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 |
$ |
18.89
|
$ |
11.28
|
$ |
8.47
|
Total Return(3) |
72.25
%
|
33.18
%
|
(14.44
)%
(5)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
696
|
$ |
15
|
$ |
8
|
Ratio of Expenses Before Expense Limitation |
4.61
%
|
23.73
%
|
26.82
%
(6)
| |||
Ratio of Expenses After Expense Limitation |
1.39
%
(4)
|
1.39
%
(4)
|
1.39
%
(4)(6)
| |||
Ratio of Net Investment Loss |
(1.16
)%
(4)
|
(0.62
)%
(4)
|
(0.91
)%
(4)(6)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01
%
|
0.01
%
|
0.01
%
(6)
| |||
Portfolio Turnover Rate |
116
%
|
67
%
|
54
%
(5)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(5) |
Not annualized. |
(6) |
Annualized. |
68
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Counterpoint Global Portfolio
Class C | ||||||
Year Ended December 31, |
Period
from June 29, 2018(1) | |||||
Selected Per Share Data and Ratios |
2020 |
2019 | ||||
Net Asset Value, Beginning of Period |
$ |
11.20
|
$ |
8.47
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.27
)
|
(0.14
)
|
(0.08
)
| |||
Net Realized and Unrealized Gain (Loss) |
8.21
|
2.87
|
(1.40
)
| |||
Total from Investment Operations |
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 |
$ |
18.60
|
$ |
11.20
|
$ |
8.47
|
Total Return(3) |
70.89
%
|
32.23
%
|
(14.80
)%
(5)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
27
|
$ |
11
|
$ |
8
|
Ratio of Expenses Before Expense Limitation |
18.57
%
|
24.53
%
|
27.44
%
(6)
| |||
Ratio of Expenses After Expense Limitation |
2.14
%
(4)
|
2.14
%
(4)
|
2.14
%
(4)(6)
| |||
Ratio of Net Investment Loss |
(1.90
)%
(4)
|
(1.37
)%
(4)
|
(1.66
)%
(4)(6)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01
%
|
0.01
%
|
0.01
%
(6)
| |||
Portfolio Turnover Rate |
116
%
|
67
%
|
54
%
(5)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(5) |
Not annualized. |
(6) |
Annualized. |
69
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Class IS | ||||||
Year Ended December 31, |
Period
from June 29, 2018(1) | |||||
Selected Per Share Data and Ratios |
2020 |
2019 | ||||
Net Asset Value, Beginning of Period |
$ |
11.32
|
$ |
8.46
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.10
)
|
(0.02
)
|
(0.02
)
| |||
Net Realized and Unrealized Gain (Loss) |
8.35
|
2.88
|
(1.41
)
| |||
Total from Investment Operations |
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 |
$ |
19.03
|
$ |
11.32
|
$ |
8.46
|
Total Return(3) |
72.88
%
|
33.81
%
|
(14.34
)%
(5)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
20
|
$ |
11
|
$ |
8
|
Ratio of Expenses Before Expense Limitation |
19.31
%
|
23.44
%
|
26.39
%
(6)
| |||
Ratio of Expenses After Expense Limitation |
0.99
%
(4)
|
0.99
%
(4)
|
0.99
%
(4)(6)
| |||
Ratio of Net Investment Loss |
(0.74
)%
(4)
|
(0.22
)%
(4)
|
(0.51
)%
(4)(6)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01
%
|
0.01
%
|
0.01
%
(6)
| |||
Portfolio Turnover Rate |
116
%
|
67
%
|
54
%
(5)
|
(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) |
Not annualized. |
(6) |
Annualized. |
70
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Global Endurance Portfolio
Class I | ||||||
Year Ended December 31, |
Period
Ended | |||||
Selected Per Share Data and Ratios |
2020 |
2019 | ||||
Net Asset Value, Beginning of Period |
$ |
13.03
|
$ |
9.98
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.09
)
|
(0.05
)
|
(0.00
)
(3)
| |||
Net Realized and Unrealized Gain (Loss) |
14.41
|
3.10
|
(0.02
)
| |||
Total from Investment Operations |
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 |
$ |
26.51
|
$ |
13.03
|
$ |
9.98
|
Total Return(4) |
110.03
%
|
30.30
%
|
0.00
%
(7)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
7,854
|
$ |
2,757
|
$ |
2,017
|
Ratio of Expenses Before Expense Limitation |
5.12
%
|
14.17
%
|
913.94
%
(8)
| |||
Ratio of Expenses After Expense Limitation |
1.00
%
(5)
|
1.00
%
(5)
|
1.00
%
(8)
| |||
Ratio of Net Investment Loss |
(0.52
)%
(5)
|
(0.42
)%
(5)
|
(1.00
)%
(8)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(6)
|
0.00
%
(6)
|
N/A
| |||
Portfolio Turnover Rate |
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. |
(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 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. |
71
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Global Endurance Portfolio
Class A | ||||||
Year Ended December 31, |
Period
Ended | |||||
Selected Per Share Data and Ratios |
2020 |
2019 | ||||
Net Asset Value, Beginning of Period |
$ |
12.99
|
$ |
9.98
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.19
)
|
(0.09
)
|
(0.00
)
(3)
| |||
Net Realized and Unrealized Gain (Loss) |
14.34
|
3.10
|
(0.02
)
| |||
Total from Investment Operations |
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 |
$ |
26.33
|
$ |
12.99
|
$ |
9.98
|
Total Return(4) |
109.10
%
|
29.90
%
|
0.00
%
(7)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
2,462
|
$ |
13
|
$ |
10
|
Ratio of Expenses Before Expense Limitation |
5.67
%
|
29.52
%
|
927.90
%
(8)
| |||
Ratio of Expenses After Expense Limitation |
1.35
%
(5)
|
1.35
%
(5)
|
1.35
%
(8)
| |||
Ratio of Net Investment Loss |
(0.86
)%
(5)
|
(0.77
)%
(5)
|
(1.35
)%
(8)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(6)
|
0.00
%
(6)
|
N/A
| |||
Portfolio Turnover Rate |
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. |
(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. |
72
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Global Endurance Portfolio
Class C | ||||||
Year Ended December 31, |
Period
Ended | |||||
Selected Per Share Data and Ratios |
2020 |
2019 | ||||
Net Asset Value, Beginning of Period |
$ |
12.89
|
$ |
9.98
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.33
)
|
(0.18
)
|
(0.00
)
(3)
| |||
Net Realized and Unrealized Gain (Loss) |
14.18
|
3.09
|
(0.02
)
| |||
Total from Investment Operations |
13.85
|
2.91
|
(0.02
)
| |||
Distributions from and/or in Excess of: | ||||||
Net Realized Gain |
(0.81
)
|
—
|
—
| |||
Net Asset Value, End of Period |
$ |
25.93
|
$ |
12.89
|
$ |
9.98
|
Total Return(4) |
107.59
%
|
28.90
%
|
0.00
%
(7)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
439
|
$ |
13
|
$ |
10
|
Ratio of Expenses Before Expense Limitation |
7.61
%
|
30.23
%
|
928.63
%
(8)
| |||
Ratio of Expenses After Expense Limitation |
2.10
%
(5)
|
2.10
%
(5)
|
2.10
%
(8)
| |||
Ratio of Net Investment Loss |
(1.62
)%
(5)
|
(1.52
)%
(5)
|
(2.10
)%
(8)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(6)
|
0.00
%
(6)
|
N/A
| |||
Portfolio Turnover Rate |
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. |
(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. |
73
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Class IS | ||||||
Year Ended December 31, |
Period
Ended | |||||
Selected Per Share Data and Ratios |
2020 |
2019 | ||||
Net Asset Value, Beginning of Period |
$ |
13.04
|
$ |
9.98
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||||
Net Investment Loss(2) |
(0.08
)
|
(0.04
)
|
(0.00
)
(3)
| |||
Net Realized and Unrealized Gain (Loss) |
14.41
|
3.10
|
(0.02
)
| |||
Total from Investment Operations |
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 |
$ |
26.53
|
$ |
13.04
|
$ |
9.98
|
Total Return(4) |
110.08
%
|
30.40
%
|
0.00
%
(7)
| |||
Ratios to Average Net Assets and Supplemental Data: | ||||||
Net Assets, End of Period (Thousands) |
$ |
28
|
$ |
13
|
$ |
10
|
Ratio of Expenses Before Expense Limitation |
16.93
%
|
29.13
%
|
927.65
%
(8)
| |||
Ratio of Expenses After Expense Limitation |
0.95
%
(5)
|
0.95
%
(5)
|
0.95
%
(8)
| |||
Ratio of Net Investment Loss |
(0.47
)%
(5)
|
(0.37
)%
(5)
|
(0.95
)%
(8)
| |||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(6)
|
0.00
%
(6)
|
N/A
| |||
Portfolio Turnover Rate |
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. |
(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 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. |
74
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Global Permanence Portfolio
Class I | ||||
Selected Per Share Data and Ratios |
Year
Ended |
Period
from April 30, 2019(1) | ||
Net Asset Value, Beginning of Period |
$ |
10.63
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||
Net Investment Income (Loss)(2) |
(0.03
)
|
0.04
| ||
Net Realized and Unrealized Gain |
2.90
|
0.59
| ||
Total from Investment Operations |
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 |
$ |
13.41
|
$ |
10.63
|
Total Return(3) |
27.06
%
|
6.30
%
(6)
| ||
Ratios to Average Net Assets and Supplemental Data: | ||||
Net Assets, End of Period (Thousands) |
$ |
3,202
|
$ |
2,471
|
Ratio of Expenses Before Expense Limitation |
8.62
%
|
12.79
%
(7)
| ||
Ratio of Expenses After Expense Limitation |
1.00
%
(4)
|
0.99
%
(4)(7)
| ||
Ratio of Net Investment Income (Loss) |
(0.30
)%
(4)
|
0.53
%
(4)(7)
| ||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(5)
|
0.01
%
(7)
| ||
Portfolio Turnover Rate |
113
%
|
35
%
(6)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (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. |
75
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Global Permanence Portfolio
Class A | ||||
Selected Per Share Data and Ratios |
Year
Ended |
Period
from April 30, 2019(1) | ||
Net Asset Value, Beginning of Period |
$ |
10.61
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||
Net Investment Income (Loss)(2) |
(0.07
)
|
0.01
| ||
Net Realized and Unrealized Gain |
2.89
|
0.60
| ||
Total from Investment Operations |
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 |
$ |
13.37
|
$ |
10.61
|
Total Return(3) |
26.57
%
|
6.10
%
(6)
| ||
Ratios to Average Net Assets and Supplemental Data: | ||||
Net Assets, End of Period (Thousands) |
$ |
19
|
$ |
11
|
Ratio of Expenses Before Expense Limitation |
26.08
%
|
30.61
%
(7)
| ||
Ratio of Expenses After Expense Limitation |
1.35
%
(4)
|
1.34
%
(4)(7)
| ||
Ratio of Net Investment Income (Loss) |
(0.65
)%
(4)
|
0.17
%
(4)(7)
| ||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(5)
|
0.01
%
(7)
| ||
Portfolio Turnover Rate |
113
%
|
35
%
(6)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (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. |
76
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Global Permanence Portfolio
Class C | ||||
Selected Per Share Data and Ratios |
Year
Ended |
Period
from April 30, 2019(1) | ||
Net Asset Value, Beginning of Period |
$ |
10.56
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||
Net Investment Loss(2) |
(0.15
)
|
(0.04
)
| ||
Net Realized and Unrealized Gain |
2.85
|
0.60
| ||
Total from Investment Operations |
2.70
|
0.56
| ||
Distributions from and/or in Excess of: | ||||
Net Realized Gain |
(0.02
)
|
—
| ||
Net Asset Value, End of Period |
$ |
13.24
|
$ |
10.56
|
Total Return(3) |
25.60
%
|
5.60
%
(6)
| ||
Ratios to Average Net Assets and Supplemental Data: | ||||
Net Assets, End of Period (Thousands) |
$ |
13
|
$ |
11
|
Ratio of Expenses Before Expense Limitation |
28.45
%
|
31.59
%
(7)
| ||
Ratio of Expenses After Expense Limitation |
2.10
%
(4)
|
2.09
%
(4)(7)
| ||
Ratio of Net Investment Loss |
(1.40
)%
(4)
|
(0.57
)%
(4)(7)
| ||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(5)
|
0.01
%
(7)
| ||
Portfolio Turnover Rate |
113
%
|
35
%
(6)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment 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. |
77
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Class IS | ||||
Selected Per Share Data and Ratios |
Year
Ended |
Period
from April 30, 2019(1) | ||
Net Asset Value, Beginning of Period |
$ |
10.64
|
$ |
10.00
|
Income (Loss) from Investment Operations: | ||||
Net Investment Income (Loss)(2) |
(0.03
)
|
0.04
| ||
Net Realized and Unrealized Gain |
2.91
|
0.60
| ||
Total from Investment Operations |
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 |
$ |
13.42
|
$ |
10.64
|
Total Return(3) |
27.09
%
|
6.40
%
(6)
| ||
Ratios to Average Net Assets and Supplemental Data: | ||||
Net Assets, End of Period (Thousands) |
$ |
14
|
$ |
11
|
Ratio of Expenses Before Expense Limitation |
26.62
%
|
30.53
%
(7)
| ||
Ratio of Expenses After Expense Limitation |
0.95
%
(4)
|
0.94
%
(4)(7)
| ||
Ratio of Net Investment Income (Loss) |
(0.24
)%
(4)
|
0.59
%
(4)(7)
| ||
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(5)
|
0.01
%
(7)
| ||
Portfolio Turnover Rate |
113
%
|
35
%
(6)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (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. |
78
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Growth Portfolio
Class I | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
46.33 |
$ |
41.75 |
$ |
41.65 |
$ |
35.19 |
$ |
40.44 |
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Income (Loss)(2) |
(0.38) |
(0.19) |
(0.08) |
(0.11) |
0.01 | |||||
Net Realized and Unrealized Gain (Loss) |
54.08 |
9.73 |
3.50 |
15.39 |
(0.79) | |||||
Total from Investment Operations |
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 |
$ |
91.47 |
$ |
46.33 |
$ |
41.75 |
$ |
41.65 |
$ |
35.19 |
Total Return(3) |
115.57% |
23.16% |
7.66% |
43.83% |
(1.91)% | |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
6,816,690 |
$ |
2,440,640 |
$ |
1,785,893 |
$ |
991,362 |
$ |
726,787 |
Ratio of Expenses Before Expense Limitation |
N/A |
0.59% |
N/A |
N/A |
0.63% | |||||
Ratio of Expenses After Expense Limitation |
0.54%(4) |
0.58%(4) |
0.58%(4) |
0.61%(4) |
0.63%(4)(5) | |||||
Ratio
of Expenses After Expense Limitation Excluding |
N/A |
0.58%(4) |
N/A |
0.61%(4) |
N/A | |||||
Ratio of Net Investment Income (Loss) |
(0.53)%(4) |
(0.38)%(4) |
(0.17)%(4) |
(0.25)%(4) |
0.02%(4) | |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01% |
0.01% |
0.01% |
0.01% |
0.00%(6) | |||||
Portfolio Turnover Rate |
60% |
87% |
41% |
55% |
39% |
(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. |
(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 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. |
(6) |
Amount is less than 0.005%. |
79
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Growth Portfolio
Class A | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
43.57 |
$ |
39.61 |
$ |
39.77 |
$ |
33.97 |
$ |
39.31 |
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Loss(2) |
(0.51) |
(0.30) |
(0.19) |
(0.22) |
(0.10) | |||||
Net Realized and Unrealized Gain (Loss) |
50.81 |
9.22 |
3.35 |
14.84 |
(0.77) | |||||
Total from Investment Operations |
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 |
$ |
85.31 |
$ |
43.57 |
$ |
39.61 |
$ |
39.77 |
$ |
33.97 |
Total Return(3) |
115.09% |
22.81% |
7.39% |
43.45% |
(2.21)% | |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
5,465,808 |
$ |
2,399,450 |
$ |
2,043,706 |
$ |
1,827,833 |
$ |
1,376,836 |
Ratio of Expenses Before Expense Limitation |
N/A |
0.84% |
N/A |
N/A |
0.92% | |||||
Ratio of Expenses After Expense Limitation |
0.79%(4) |
0.83%(4) |
0.84%(4) |
0.88%(4) |
0.92%(4)(5) | |||||
Ratio
of Expenses After Expense Limitation Excluding |
N/A |
0.83%(4) |
N/A |
0.88%(4) |
N/A | |||||
Ratio of Net Investment Loss |
(0.77)%(4) |
(0.64)%(4) |
(0.43)%(4) |
(0.52)%(4) |
(0.26)%(4) | |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01% |
0.01% |
0.01% |
0.01% |
0.00%(6) | |||||
Portfolio Turnover Rate |
60% |
87% |
41% |
55% |
39% |
(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 0.005% higher and the Ratio of Net Investment Loss would have been 0.005% lower had the custodian not reimbursed the Fund. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(5) |
Effective 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. |
(6) |
Amount is less than 0.005%. |
80
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Growth Portfolio
Class L | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
40.77 |
$ |
37.51 |
$ |
37.99 |
$ |
32.90 |
$ |
38.41 |
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Loss(2) |
(0.76) |
(0.50) |
(0.39) |
(0.43) |
(0.29) | |||||
Net Realized and Unrealized Gain (Loss) |
47.40 |
8.72 |
3.23 |
14.34 |
(0.75) | |||||
Total from Investment Operations |
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 |
$ |
78.85 |
$ |
40.77 |
$ |
37.51 |
$ |
37.99 |
$ |
32.90 |
Total Return(3) |
114.01% |
22.22% |
6.89% |
42.69% |
(2.72)% | |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
173,317 |
$ |
93,053 |
$ |
83,818 |
$ |
90,177 |
$ |
74,324 |
Ratio of Expenses Before Expense Limitation |
N/A |
1.33% |
N/A |
N/A |
1.45% | |||||
Ratio of Expenses After Expense Limitation |
1.29%(4) |
1.32%(4) |
1.31%(4) |
1.42%(4) |
1.45%(4)(5) | |||||
Ratio
of Expenses After Expense Limitation Excluding |
N/A |
1.32%(4) |
N/A |
1.42%(4) |
N/A | |||||
Ratio of Net Investment Loss |
(1.27)%(4) |
(1.12)%(4) |
(0.90)%(4) |
(1.05)%(4) |
(0.79)%(4) | |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01% |
0.01% |
0.01% |
0.01% |
0.00%(6) | |||||
Portfolio Turnover Rate |
60% |
87% |
41% |
55% |
39% |
(1) |
Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Loss would have been less than 0.005% lower had the custodian not reimbursed the Fund. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(5) |
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. |
(6) |
Amount is less than 0.005%. |
81
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Growth Portfolio
Class C | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
40.23
|
$ |
37.17
|
$ |
37.76
|
$ |
32.81
|
$ |
38.40
|
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Loss(2) |
(0.93
)
|
(0.61
)
|
(0.51
)
|
(0.51
)
|
(0.38
)
| |||||
Net Realized and Unrealized Gain (Loss) |
46.75
|
8.63
|
3.24
|
14.28
|
(0.74
)
| |||||
Total from Investment Operations |
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 |
$ |
77.49
|
$ |
40.23
|
$ |
37.17
|
$ |
37.76
|
$ |
32.81
|
Total Return(3) |
113.48
%
|
21.91
%
|
6.61
%
|
42.37
%
|
(2.93
)%
| |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
514,190
|
$ |
166,303
|
$ |
92,431
|
$ |
37,524
|
$ |
16,613
|
Ratio of Expenses Before Expense Limitation |
N/A
|
1.59
%
|
N/A
|
N/A
|
1.70
%
| |||||
Ratio of Expenses After Expense Limitation |
1.53
%
(4)
|
1.58
%
(4)
|
1.57
%
(4)
|
1.63
%
(4)
|
1.70
%
(4)(5)
| |||||
Ratio of Expenses After Expense Limitation Excluding Interest Expenses |
N/A
|
1.58
%
(4)
|
N/A
|
1.63
%
|
N/A
| |||||
Ratio of Net Investment Loss |
(1.51
)%
(4)
|
(1.38
)%
(4)
|
(1.17
)%
(4)
|
(1.26
)%
(4)
|
(1.04
)%
(4)
| |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01
%
|
0.01
%
|
0.01
%
|
0.01
%
|
0.00
%
(6)
| |||||
Portfolio Turnover Rate |
60
%
|
87
%
|
41
%
|
55
%
|
39
%
|
(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 less than 0.005% higher and the Ratio of Net Investment Loss would have been less than 0.005% lower had the custodian not reimbursed the Fund. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(5) |
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. |
(6) |
Amount is less than 0.005%. |
82
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Growth Portfolio
Class IS | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
46.73
|
$ |
42.04
|
$ |
41.89
|
$ |
35.32
|
$ |
40.54
|
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Income (Loss)(2) |
(0.32
)
|
(0.15
)
|
(0.04
)
|
(0.07
)
|
0.05
| |||||
Net Realized and Unrealized Gain (Loss) |
54.57
|
9.80
|
3.51
|
15.46
|
(0.80
)
| |||||
Total from Investment Operations |
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 |
$ |
92.42
|
$ |
46.73
|
$ |
42.04
|
$ |
41.89
|
$ |
35.32
|
Total Return(3) |
115.76
%
|
23.26
%
|
7.74
%
|
43.98
%
|
(1.83
)%
| |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
3,743,697
|
$ |
1,560,148
|
$ |
1,202,659
|
$ |
1,131,543
|
$ |
875,021
|
Ratio of Expenses Before Expense Limitation |
N/A
|
0.50
%
|
N/A
|
N/A
|
0.54
%
| |||||
Ratio of Expenses After Expense Limitation |
0.47
%
(4)
|
0.49
%
(4)
|
0.50
%
(4)
|
0.53
%
(4)
|
0.54
%
(4)(5)
| |||||
Ratio
of Expenses After Expense Limitation Excluding |
N/A
|
0.49
%
(4)
|
N/A
|
0.53
%
(4)
|
N/A
| |||||
Ratio of Net Investment Income (Loss) |
(0.45
)%
(4)
|
(0.29
)%
(4)
|
(0.09
)%
(4)
|
(0.16
)%
(4)
|
0.12
%
(4)
| |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01
%
|
0.01
%
|
0.01
%
|
0.01
%
|
0.00
%
(6)
| |||||
Portfolio Turnover Rate |
60
%
|
87
%
|
41
%
|
55
%
|
39
%
|
(1) |
Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses After Expense Limitation would have been less than 0.005% higher and the Ratio of Net Investment Income would have been less than 0.005% lower had the custodian not reimbursed the Fund. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (Loss) reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(5) |
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. |
(6) |
Amount is less than 0.005%. |
83
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Class I | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
11.19 |
$ |
9.62 |
$ |
10.90 |
$ |
13.26 |
$ |
13.75 |
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Income (Loss)(2) |
(0.10) |
0.01 |
(0.05) |
(0.11) |
0.00(3) | |||||
Net Realized and Unrealized Gain (Loss) |
16.84 |
3.50 |
0.16 |
2.91 |
(0.05) | |||||
Total from Investment Operations |
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 |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) | |||||
Net Asset Value, End of Period |
$ |
25.48 |
$ |
11.19 |
$ |
9.62 |
$ |
10.90 |
$ |
13.26 |
Total Return(4) |
150.57% |
37.11% |
0.29% |
21.87% |
(0.35)% | |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
464,639 |
$ |
59,092 |
$ |
60,777 |
$ |
141,954 |
$ |
305,945 |
Ratio of Expenses Before Expense Limitation |
1.18% |
1.21% |
1.17% |
1.20% |
1.17% | |||||
Ratio of Expenses After Expense Limitation |
0.99%(5) |
0.99%(5) |
0.98%(5) |
0.99%(5) |
1.02%(5)(6) | |||||
Ratio
of Expenses After Expense Limitation Excluding |
0.99%(5) |
N/A |
0.98%(5) |
0.99%(5) |
N/A | |||||
Ratio of Net Investment Income (Loss) |
(0.54)%(5) |
0.09%(5) |
(0.41)%(5) |
(0.77)%(5) |
0.02%(5) | |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01% |
0.01% |
0.01% |
0.01% |
0.00%(7) | |||||
Portfolio Turnover Rate |
132% |
99% |
79% |
97% |
51% |
(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. |
(5) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (Loss) reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(6) |
Effective 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. |
(7) |
Amount is less than 0.005%. |
84
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Inception Portfolio
Class A | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
8.51 |
$ |
7.68 |
$ |
8.99 |
$ |
11.72 |
$ |
12.25 |
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Loss(2) |
(0.10) |
(0.02) |
(0.07) |
(0.14) |
(0.04) | |||||
Net Realized and Unrealized Gain (Loss) |
12.72 |
2.79 |
0.15 |
2.57 |
(0.05) | |||||
Total from Investment Operations |
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 |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) | |||||
Net Asset Value, End of Period |
$ |
18.68 |
$ |
8.51 |
$ |
7.68 |
$ |
8.99 |
$ |
11.72 |
Total Return(4) |
149.86% |
36.71% |
0.02% |
21.57% |
(0.73)% | |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
229,641 |
$ |
45,097 |
$ |
34,166 |
$ |
40,531 |
$ |
87,864 |
Ratio of Expenses Before Expense Limitation |
1.44% |
1.52% |
1.44% |
1.51% |
1.45% | |||||
Ratio of Expenses After Expense Limitation |
1.25%(5) |
1.29%(5) |
1.25%(5) |
1.34%(5) |
1.37%(5)(6) | |||||
Ratio
of Expenses After Expense Limitation Excluding |
1.25%(5) |
N/A |
1.25%(5) |
1.34%(5) |
N/A | |||||
Ratio of Net Investment Loss |
(0.80)%(5) |
(0.23)%(5) |
(0.69)%(5) |
(1.12)%(5) |
(0.35)%(5) | |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01% |
0.01% |
0.01% |
0.01% |
0.00%(7) | |||||
Portfolio Turnover Rate |
132% |
99% |
79% |
97% |
51% |
(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. |
(5) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(6) |
Effective July 1, 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. |
(7) |
Amount is less than 0.005%. |
85
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Inception Portfolio
Class L | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
7.65 |
$ |
7.10 |
$ |
8.46 |
$ |
11.34 |
$ |
11.92 |
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Loss(2) |
(0.16) |
(0.07) |
(0.11) |
(0.19) |
(0.10) | |||||
Net Realized and Unrealized Gain (Loss) |
11.41 |
2.56 |
0.14 |
2.47 |
(0.04) | |||||
Total from Investment Operations |
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 |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) | |||||
Net Asset Value, End of Period |
$ |
16.45 |
$ |
7.65 |
$ |
7.10 |
$ |
8.46 |
$ |
11.34 |
Total Return(4) |
148.82%(8) |
35.91%(4) |
(0.58)%(4) |
20.95%(4) |
(1.17)%(4) | |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
2,543 |
$ |
1,218 |
$ |
1,157 |
$ |
1,310 |
$ |
1,524 |
Ratio of Expenses Before Expense Limitation |
2.10% |
2.15% |
2.07% |
2.27% |
2.21% | |||||
Ratio of Expenses After Expense Limitation |
1.84%(5) |
1.84%(5) |
1.84%(5) |
1.84%(5) |
1.87%(5)(6) | |||||
Ratio
of Expenses After Expense Limitation Excluding |
1.84%(5) |
N/A |
1.84%(5) |
1.84%(5) |
N/A | |||||
Ratio of Net Investment Loss |
(1.43)%(5) |
(0.78)%(5) |
(1.28)%(5) |
(1.61)%(5) |
(0.88)%(5) | |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01% |
0.01% |
0.01% |
0.01% |
0.00%(7) | |||||
Portfolio Turnover Rate |
132% |
99% |
79% |
97% |
51% |
(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 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. |
(5) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(6) |
Effective July 1, 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. |
(7) |
Amount is less than 0.005%. |
(8) |
Calculated using the NAV for US GAAP financial reporting purposes and as such differs from the total return presented in the Investment Overview. |
86
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Inception Portfolio
Class C | ||||||||
Year Ended December 31, |
Period
from May 31, 2017(1) | |||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 | |||||
Net Asset Value, Beginning of Period |
$ |
8.24
|
$ |
7.55
|
$ |
8.93
|
$ |
13.59
|
Income (Loss) from Investment Operations: | ||||||||
Net Investment Loss(2) |
(0.22
)
|
(0.10
)
|
(0.03
)
|
(0.13
)
| ||||
Net Realized and Unrealized Gain |
12.28
|
2.73
|
0.04
|
0.63
| ||||
Total from Investment Operations |
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 |
0.00
(3)
|
0.00
(3)
|
0.00
(3)
|
0.00
(3)
| ||||
Net Asset Value, End of Period |
$ |
17.85
|
$ |
8.24
|
$ |
7.55
|
$ |
8.93
|
Total Return(4) |
147.97
%
|
35.48
%
|
(0.78
)%
|
4.36
%
(7)
| ||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||
Net Assets, End of Period (Thousands) |
$ |
12,494
|
$ |
688
|
$ |
116
|
$ |
30
|
Ratio of Expenses Before Expense Limitation |
2.26
%
|
2.75
%
|
4.73
%
|
21.29
%
(8)
| ||||
Ratio of Expenses After Expense Limitation |
2.07
%
(5)
|
2.09
%
(5)
|
2.09
%
(5)
|
2.10
%
(5)(8)
| ||||
Ratio
of Expenses After Expense Limitation Excluding |
2.07
%
(5)
|
N/A
|
2.09
%
(5)
|
2.10
%
(5)(8)
| ||||
Ratio of Net Investment Loss |
(1.61
)%
(5)
|
(0.99
)%
(5)
|
(1.50
)%
(5)
|
(1.82
)%
(5)(8)
| ||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01
%
|
0.01
%
|
0.01
%
|
0.00
%
(6)(8)
| ||||
Portfolio Turnover Rate |
132
%
|
99
%
|
79
%
|
97
%
|
(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 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. |
87
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Class IS | ||||||||||
Year Ended December 31, | ||||||||||
Selected Per Share Data and Ratios |
2020 |
2019 |
2018 |
2017 |
2016(1) | |||||
Net Asset Value, Beginning of Period |
$ |
11.29 |
$ |
9.69 |
$ |
10.96 |
$ |
13.29 |
$ |
13.77 |
Income (Loss) from Investment Operations: | ||||||||||
Net Investment Income (Loss)(2) |
(0.08) |
0.01 |
(0.04) |
(0.10) |
0.01 | |||||
Net Realized and Unrealized Gain (Loss) |
16.97 |
3.53 |
0.16 |
2.93 |
(0.05) | |||||
Total from Investment Operations |
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 |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) |
0.00(3) | |||||
Net Asset Value, End of Period |
$ |
25.73 |
$ |
11.29 |
$ |
9.69 |
$ |
10.96 |
$ |
13.29 |
Total Return(4) |
150.79% |
37.04% |
0.38% |
22.08% |
(0.28)% | |||||
Ratios to Average Net Assets and Supplemental Data: | ||||||||||
Net Assets, End of Period (Thousands) |
$ |
154,023 |
$ |
64,712 |
$ |
110,919 |
$ |
129,126 |
$ |
361,586 |
Ratio of Expenses Before Expense Limitation |
1.11% |
1.15% |
1.11% |
1.09% |
1.03% | |||||
Ratio of Expenses After Expense Limitation |
0.92%(5) |
0.92%(5) |
0.92%(5) |
0.92%(5) |
0.95%(5)(6) | |||||
Ratio
of Expenses After Expense Limitation Excluding |
0.92%(5) |
N/A |
0.92%(5) |
0.92%(5) |
N/A | |||||
Ratio of Net Investment Income (Loss) |
(0.49)%(5) |
0.12%(5) |
(0.36)%(5) |
(0.71)%(5) |
0.08%(5) | |||||
Ratio of Rebate from Morgan Stanley Affiliates |
0.01% |
0.01% |
0.01% |
0.01% |
0.00%(7) | |||||
Portfolio Turnover Rate |
132% |
99% |
79% |
97% |
51% |
(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. |
(5) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income (Loss) reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(6) |
Effective 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. |
(7) |
Amount is less than 0.005%. |
88
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Permanence Portfolio
Class I | ||
Selected Per Share Data and Ratios |
Period
from March 31, 2020(1) | |
Net Asset Value, Beginning of Period |
$ |
10.00
|
Income (Loss) from Investment Operations: | ||
Net Investment Loss(2) |
(0.00
)
(3)
| |
Net Realized and Unrealized Gain |
5.51
| |
Total from Investment Operations |
5.51
| |
Distributions from and/or in Excess of: | ||
Net Realized Gain |
(0.86
)
| |
Net Asset Value, End of Period |
$ |
14.65
|
Total Return(4) |
55.46
%
(7)
| |
Ratios to Average Net Assets and Supplemental Data: | ||
Net Assets, End of Period (Thousands) |
$ |
3,147
|
Ratio of Expenses Before Expense Limitation |
10.85
%
(8)
| |
Ratio of Expenses After Expense Limitation |
0.85
%
(5)(8)
| |
Ratio of Net Investment Loss |
(0.02
)%
(5)(8)
| |
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(6)(8)
| |
Portfolio Turnover Rate |
68
%
(7)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Amount is less than $0.005 per share. |
(4) |
Calculated based on the net asset value as of the last business day of the period. |
(5) |
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. |
89
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Permanence Portfolio
Class A | ||
Selected Per Share Data and Ratios |
Period
from March 31, 2020(1) | |
Net Asset Value, Beginning of Period |
$ |
10.00
|
Income (Loss) from Investment Operations: | ||
Net Investment Loss(2) |
(0.01
)
| |
Net Realized and Unrealized Gain |
5.48
| |
Total from Investment Operations |
5.47
| |
Distributions from and/or in Excess of: | ||
Net Realized Gain |
(0.86
)
| |
Net Asset Value, End of Period |
$ |
14.61
|
Total Return(3) |
55.05
%
(6)
| |
Ratios to Average Net Assets and Supplemental Data: | ||
Net Assets, End of Period (Thousands) |
$ |
256
|
Ratio of Expenses Before Expense Limitation |
17.41
%
(7)
| |
Ratio of Expenses After Expense Limitation |
1.20
%
(4)(7)
| |
Ratio of Net Investment Loss |
(0.06
)%
(4)(7)
| |
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(5)(7)
| |
Portfolio Turnover Rate |
68
%
(6)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment 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. |
90
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Permanence Portfolio
Class C | ||
Selected Per Share Data and Ratios |
Period
from March 31, 2020(1) | |
Net Asset Value, Beginning of Period |
$ |
10.00
|
Income (Loss) from Investment Operations: | ||
Net Investment Loss(2) |
(0.11
)
| |
Net Realized and Unrealized Gain |
5.49
| |
Total from Investment Operations |
5.38
| |
Distributions from and/or in Excess of: | ||
Net Realized Gain |
(0.86
)
| |
Net Asset Value, End of Period |
$ |
14.52
|
Total Return(3) |
54.15
%
(6)
| |
Ratios to Average Net Assets and Supplemental Data: | ||
Net Assets, End of Period (Thousands) |
$ |
21
|
Ratio of Expenses Before Expense Limitation |
24.15
%
(7)
| |
Ratio of Expenses After Expense Limitation |
1.95
%
(4)(7)
| |
Ratio of Net Investment Loss |
(1.08
)%
(4)(7)
| |
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(5)(7)
| |
Portfolio Turnover Rate |
68
%
(6)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period. |
(4) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment 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. |
91
Morgan Stanley Institutional Fund, Inc. Prospectus | Financial Highlights
Permanence Portfolio
Class IS | ||
Selected Per Share Data and Ratios |
Period
from March 31, 2020(1) | |
Net Asset Value, Beginning of Period |
$ |
10.00
|
Income (Loss) from Investment Operations: | ||
Net Investment Loss(2) |
(0.00
)
(3)
| |
Net Realized and Unrealized Gain |
5.51
| |
Total from Investment Operations |
5.51
| |
Distributions from and/or in Excess of: | ||
Net Realized Gain |
(0.86
)
| |
Net Asset Value, End of Period |
$ |
14.65
|
Total Return(4) |
55.45
%
(7)
| |
Ratios to Average Net Assets and Supplemental Data: | ||
Net Assets, End of Period (Thousands) |
$ |
16
|
Ratio of Expenses Before Expense Limitation |
25.34
%
(8)
| |
Ratio of Expenses After Expense Limitation |
0.80
%
(5)(8)
| |
Ratio of Net Investment Income |
0.03
%
(5)(8)
| |
Ratio of Rebate from Morgan Stanley Affiliates |
0.00
%
(6)(8)
| |
Portfolio Turnover Rate |
68
%
(7)
|
(1) |
Commencement of Operations. |
(2) |
Per share amount is based on average shares outstanding. |
(3) |
Amount is less than $0.005 per share. |
(4) |
Calculated based on the net asset value as of the last business day of the period. |
(5) |
The Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as “Ratio of Rebate from Morgan Stanley Affiliates.” |
(6) |
Amount is less than 0.005%. |
(7) |
Not annualized. |
(8) |
Annualized. |
92
Morgan Stanley Institutional Fund, Inc. Prospectus | Appendix
Appendix A
• | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan |
• | Shares purchased by a 529 Plan (does not include 529 Plan units or 529-specific share classes or equivalents) |
• | Shares purchased through a Merrill Lynch affiliated investment advisory program |
• | Shares exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers |
• | Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform |
• | Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable) |
• | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
• | Shares exchanged from Class C (i.e. level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers |
• | Employees and registered representatives of Merrill Lynch or its affiliates and their family members |
• | Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus |
• | Eligible shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals) and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement |
• | Death or disability of the shareholder |
• | Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus |
• | Return of excess contributions from an IRA Account |
• | Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code |
• | Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch |
• | Shares acquired through a right of reinstatement |
• | Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only) |
93
Morgan Stanley Institutional Fund, Inc. Prospectus | Appendix
Appendix A (Con’t)
• | Shares received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers |
• | Breakpoints as described in this Prospectus |
• | Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets |
• | Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable) |
• | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or Keogh plans |
• | Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules |
• | Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund |
• | Shares purchased through a Morgan Stanley self-directed brokerage account |
• | Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program |
• | Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge |
• | Shares purchased in an investment advisory program |
• | Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions |
• | Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James |
• | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement) |
• | A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James |
• | Death or disability of the shareholder |
94
Morgan Stanley Institutional Fund, Inc. Prospectus | Appendix
Appendix A (Con’t)
• | Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus |
• | Return of excess contributions from an IRA Account |
• | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the Fund’s Prospectus |
• | Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James |
• | Shares acquired through a right of reinstatement |
• | Breakpoints as described in this Prospectus |
• | Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about such assets |
• | Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets |
• | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
• | Shares purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney |
• | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., right of reinstatement) |
• | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or Keogh plans |
• | Shares acquired through a right of reinstatement |
• | Class C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Janney’s policies and procedures |
• | Shares sold upon the death or disability of the shareholder |
• | Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus |
• | Shares purchased in connection with a return of excess contributions from an IRA account |
• | Shares sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching age 70½ as described in the Fund’s Prospectus |
• | Shares sold to pay Janney fees but only if the transaction is initiated by Janney |
• | Shares acquired through a right of reinstatement |
• | Shares exchanged into the same share class of a different fund |
• | Breakpoints as described in this Prospectus |
95
Morgan Stanley Institutional Fund, Inc. Prospectus | Appendix
Appendix A (Con’t)
• | Rights of Accumulation (ROA), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets |
• | Letters of Intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets |
• | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan |
• | Shares purchased by or through a 529 Plan |
• | Shares purchased through an OPCO affiliated investment advisory program |
• | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family |
• | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Restatement). |
• | A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO |
• | Employees and registered representatives of OPCO or its affiliates and their family members |
• | Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus |
• | Death or disability of the shareholder |
• | Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus |
• | Return of excess contributions from an IRA Account |
• | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus |
• | Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO |
• | Shares acquired through a right of reinstatement |
• | Breakpoints as described in this prospectus |
• | Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at OPCO. Eligible fund family assets not held at OPCO may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets |
96
Morgan Stanley Institutional Fund, Inc. Prospectus | Appendix
Appendix A (Con’t)
• | Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Stifel’s policies and procedures. All other sales charge waivers and reductions described elsewhere in the Fund’s Prospectus or SAI still apply. |
• | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund |
• | Shares purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird |
• | Shares purchased using the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same accounts, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement) |
• | A shareholder in the Funds C Shares will have their share converted at net asset value to A shares of the same fund if the shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird |
• | Employer-sponsored retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, SIMPLE IRAs or SAR-SEPs |
• | Shares sold due to death or disability of the shareholder |
• | Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus |
• | Shares bought due to returns of excess contributions from an IRA Account |
• | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable Internal Revenue Service regulations as described in the Fund’s prospectus |
• | Shares sold to pay Baird fees but only if the transaction is initiated by Baird |
• | Shares acquired through a right of reinstatement |
• | Breakpoints as described in this prospectus |
• | Rights of accumulations which entitles shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund family assets not held at Baird may be included in the rights of accumulations calculation only if the shareholder notifies his or her financial advisor about such assets |
• | Letters of Intent (LOI) allow for breakpoint discounts based on anticipated purchases within a fund family, through Baird, over a 13-month period of time |
97
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