MORGAN STANLEY INSTITUTIONAL FUND, INC.

Statement of Additional Information

April 30, 2024 as amended July 3, 2024

Morgan Stanley Institutional Fund, Inc. (the “Company”) is an open-end management investment company consisting of 33 funds offering a variety of investment alternatives, all of which are included in this Statement of Additional Information (“SAI”) (each a “Fund” and collectively the “Funds”). Some or all of the Funds offer the following shares: Class I, Class A, Class L, Class C, Class R6 and Class IR. Following is a list of the 33 Funds included in this SAI:

 

Share Class and Ticker Symbol

 

I

A

L*

C

R6

IR

GLOBAL AND INTERNATIONAL EQUITY FUNDS:

 

 

 

 

 

 

Asia Opportunity Portfolio

MSAQX

MSAUX

MSAWX

MSAYX

Counterpoint Global Portfolio

GLCIX

GLCAX

GLCDX

GLCSX

Developing Opportunity Portfolio

MDOEX

MDOAX

MDOBX

MDODX

Emerging Markets ex China Portfolio

MSDUX

MSDQX

MSDOX

MSDMX

Emerging Markets Leaders Portfolio

MELIX

MELAX

MEMLX

MELSX

MSIWX

Emerging Markets Portfolio

MGEMX

MMKBX

MSELX

MSEPX

MMMPX

MRGEX

Global Concentrated Portfolio

MLNIX

MLNAX

MLNCX

MLNSX

Global Core Portfolio

MLMIX

MLMAX

MLMCX

MLMSX

Global Endurance Portfolio

MSJIX

MSJAX

MSJCX

MSJSX

Global Franchise Portfolio

MSFAX

MSFBX

MSFLX

MSGFX

MGISX

Global Insight Portfolio

MIGIX

MIGPX

MIGLX

MSPTX

MGZZX

Global Opportunity Portfolio

MGGIX

MGGPX

MGGLX

MSOPX

MGTSX

MGORX

Global Permanence Portfolio

MGKIX

MGKAX

MGKCX

MGKQX

Global Stars Portfolio

MGQIX

MGQAX

MGQLX

MSGQX

MGQSX

International Advantage Portfolio

MFAIX

MFAPX

MSALX

MSIAX

IDVSX

International Equity Portfolio

MSIQX

MIQBX

MSQLX

MSECX

MIQPX

International Opportunity Portfolio

MIOIX

MIOPX

MIOLX

MSOCX

MNOPX

MRNPX

Next Gen Emerging Markets Portfolio

MFMIX

MFMPX

MFMLX

MSFEX

MSRFX

Passport Overseas Equity Portfolio

MSACX

MSIBX

MSLLX

MSAAX

MAIJX

MAIHX

U.S. EQUITY FUNDS:

 

 

 

 

 

 

Advantage Portfolio

MPAIX

MAPPX

MAPLX

MSPRX

MADSX

Growth Portfolio

MSEQX

MSEGX

MSHLX

MSGUX

MGRPX

MGHRX

Inception Portfolio

MSSGX

MSSMX

MSSLX

MSCOX

MFLLX

Permanence Portfolio

MSHMX

MSHNX

MSHOX

MSHPX

US Core Portfolio

MUOIX

MUOAX

MUOCX

MUOSX

Vitality Portfolio

MSVDX

MSVEX

MSVMX

MSVOX

LISTED REAL ASSET FUNDS:

 

 

 

 

 

 

Global Focus Real Estate Portfolio

MSBDX

MSBEX

MSBKX

MSBPX

Global Infrastructure Portfolio

MTIIX

MTIPX

MTILX

MSGTX

MSGPX

MRGOX

Global Real Estate Portfolio

MRLAX

MRLBX

MGRLX

MSRDX

MGREX

MRLEX

U.S. Focus Real Estate Portfolio

MAAWX

MAAYX

MABBX

MABCX

 
 

U.S. Real Estate Portfolio

MSUSX

MUSDX

MSULX

MSURX

MURSX

MRETX

ASSET ALLOCATION FUND:

 

 

 

 

 

 

Multi-Asset Real Return Portfolio

MRJIX

MRJAX

MRJCX

MRJSX

RESILIENCE FUNDS:

 

 

 

 

 

 

American Resilience Portfolio

MSBVX

MSCUX

MSBWX

MSBQX

International Resilience Portfolio

MSDKX

MSDFX

MSDEX

MSCZX

* The Company has suspended offering Class L shares of each Fund for sale to all investors. Existing Class L shareholders may invest in additional Class L shares through reinvestment of dividends and distributions. Class L shares of the American Resiliance, Asia Opportunity, Counterpoint Global, Developing Opportunity, Emerging Markets ex China, Emerging Markets Leaders, Global Concentrated, Global Core, Global Endurance, Global Focus Real Estate, Global Permanence, International Resilience, Multi-Asset Real Return, Permanence, US Core, U.S. Focus Real Estate and Vitality Portfolios are not being offered for sale at this time. You do not currently have the option of purchasing Class L shares.

This SAI is not a prospectus, but should be read in conjunction with the Funds’ prospectuses, dated April 30, 2024 or July 3, 2024, as applicable, as may be supplemented from time to time. To obtain any of these prospectuses without charge, please call Morgan Stanley Shareholder Services toll-free at 1-800-869-6397.

The Funds’ most recent Annual Reports to Shareholders are separate documents supplied with this SAI and include the Funds’ audited financial statements, including notes thereto, and the reports of the Funds’ independent registered public accounting firm, which are incorporated by reference into this SAI. A copy of the Funds’ Annual Reports to Shareholders may be obtained without charge by calling 1-800-869-6397.

Certain Funds are “non-diversified” and, as such, such Funds’ investments are not required to meet certain diversification requirements under federal securities law. Compared with “diversified” funds or portfolios, each such Fund may invest a greater percentage of its assets in the securities of an individual corporation or governmental entity. Thus, the Fund’s assets may be focused in fewer securities than other funds. A decline in the value of those investments could cause the Fund’s overall value to decline to a greater degree. The Emerging Markets Leaders, Global Concentrated, Global Core, Global Focus Real Estate, Global Franchise, Global Infrastructure, Global Stars, US Core,  U.S. Focus Real Estate, U.S. Real Estate, American Resilience and International Resilience Portfolios are non-diversified portfolios.


 

Table of Contents 

Investment Policies and Strategies

1

Investment Limitations

58

Disclosure of Portfolio Holdings

60

Purchase and Redemption of Shares

62

Account Policies and Features

63

Management of the Company

65

Investment Advisory and Other Services

79

Distribution and Shareholder Services Plans

95

Brokerage Practices

99

General Information

104

Taxes

104

Control Persons and Principal Holders of Securities

110

Performance Information

141

Potential Conflicts of Interest

152

Financial Statements

158

Appendix A -- Morgan Stanley Investment Management Proxy Voting Policy and
Procedures

A-1

Appendix B -- Description of Ratings

B-1


 

INVESTMENT POLICIES AND STRATEGIES

This SAI provides additional information about the investment policies and operations of the Company and the Funds. “Fund” as used herein refers to each Fund listed on the cover page of this SAI (unless otherwise noted). Morgan Stanley Investment Management Inc. (the “Adviser”) acts as investment adviser to each Fund. Under the supervision of the Adviser, Morgan Stanley Investment Management Limited (“MSIM Limited”) acts as investment sub-adviser to the Global Franchise, Global Real Estate, Global Stars, American Resilience, International Resilience and International Equity; Morgan Stanley Investment Management Company (“MSIM Company”) acts as investment sub-adviser to the Asia Opportunity, Emerging Markets Leaders, Emerging Markets, Emerging Markets ex China, Global Real Estate, and International Advantage Portfolios (MSIM Limited and MSIM Company are each referred to herein individually as the “Sub-Adviser” and together as the “Sub-Advisers”). References to the Adviser, when used in connection with its activities as investment adviser, include any Sub-Adviser acting under its supervision.

GLOBAL AND INTERNATIONAL EQUITY FUNDS

 

 

Asia Opportunity

Developing Opportunity

Emerging Markets

Emerging Markets ex China

Emerging Markets Leaders

Next Gen Emerging Markets

Global Insight

Global Concentrated

Global
Core

Agencies

X

X

X

X

X

X

X

X

X

Asset-Backed Securities

 

 

 

 

 

X

 

 

 

Bitcoin Exposure

X

X

 

 

 

 

X

 

 

Borrowing for Investment Purposes

 

 

 

 

 

 

 

 

 

Brady Bonds

X

X

X

X

X

X

X

X

X

Cash Equivalents

X

X

X

X

X

X

X

X

X

China Investments

X

X

X

 

X

X

X

X

X

Chinese Fixed-Income Investments

 

 

 

 

 

 

 

 

 

Combined Transactions

X

X

X

X

X

X

X

X

X

Commodity-Linked Investments

 

 

 

 

 

X

 

 

 

Common Stocks

X

X

X

X

X

X

X

X

X

Contracts for Difference

X

X

X

X

X

X

X

X

X

Convertible Securities

X

X

X

X

X

X

X

X

X

Corporates

X

X

X

X

X

X

X

X

X

Currency Forwards

X

X

X

X

X

X

X

X

X

Depositary Receipts

X

X

X

X

X

X

X

X

X

Emerging Market Securities

X

X

X

X

X

X

X

X

X

Eurodollar and Yankee Dollar Obligations

X

X

X

X

X

X

X

X

X

Exchange-Listed Equities via Stock Connect Program

X

X

X

 

X

 

X

 

 

Exchange-Traded Funds

X

X

X

X

X

X

X

X

X

Floaters

 

 

 

 

 

 

 

 

 

Foreign Corporate Fixed-Income Securities

X

X

X

X

X

X

X

X

X

Foreign Currency Transactions

X

X

X

X

X

X

X

X

X

Foreign Equity Securities

X

X

X

X

X

X

X

X

X

Foreign Government Fixed-Income Securities

X

X

X

X

X

X

X

X

X

Futures Contracts

X

X

X

X

X

X

X

X

X

High Yield Securities

X

 

X

X

X

X

 

 

 

Illiquid Investments

X

X

X

X

X

X

X

X

X

Inverse Floaters

 

 

 

 

 

 

 

 

 

Investment Company Securities

X

X

X

X

X

X

X

X

X

Investment Funds

X

X

X

X

X

X

X

X

X

Investment Grade Securities

X

X

X

X

X

X

X

X

X

1 


 

Back to Table of Contents

GLOBAL AND INTERNATIONAL EQUITY FUNDS

 

 

Asia Opportunity

Developing Opportunity

Emerging Markets

Emerging Markets ex China

Emerging Markets Leaders

Next Gen Emerging Markets

Global Insight

Global Concentrated

Global
Core

Investments in Saudi Arabia and the QFI Regime

 

 

X

X

X

X

 

 

 

IPOs

X

X

X

X

X

X

X

X

X

Loans of Portfolio Securities

X

X

X

X

X

X

X

X

X

Loan-Related Investments

 

 

X

X

X

X

 

 

 

Limited Partnership and Limited Liability Company Interests

X

X

X

X

X

X

X

X

X

Money Market Instruments

X

X

X

X

X

X

X

X

X

Mortgage-Related Securities

X

X

 

 

 

X

X

X

X

Municipals

 

 

 

 

 

X

 

 

 

Non-Publicly Traded Securities, Private Placements and Restricted Securities

X

X

X

X

X

X

X

X

X

Options

X

X

 

 

X

 

X

X

X

Preferred Stocks

X

X

X

X

X

X

X

X

X

Real Estate Investing

X

X

X

X

X

X

X

X

X

—REITs

X

X

X

X

X

X

X

X

X

—Foreign Real Estate Companies

X

X

X

X

X

X

X

X

X

—Specialized Ownership Vehicles

X

X

X

X

X

X

X

X

X

Repurchase Agreements

X

X

X

X

X

X

X

X

X

Reverse Repurchase Agreements

 

 

 

 

 

X

X

 

 

Rights

X

X

X

X

X

X

X

X

X

Short Sales

 

 

 

 

 

 

 

 

 

Special Purpose Acquisition Companies

X

X

 

 

 

 

X

 

 

Structured Investments

X

X

X

X

X

X

X

X

X

Swaps

X

X

X

X

X

X

X

X

X

Temporary Borrowing

X

X

X

X

X

X

X

X

X

Temporary Investments

X

X

X

X

X

X

X

X

X

U.S. Government Securities

X

X

X

X

X

X

X

X

X

Variable Interest Entities

X

X

X

 

X

 

 

X

X

Warrants

X

X

X

X

X

X

X

X

X

When-Issued and Delayed Delivery Securities and Forward Commitments

X

X

X

X

X

X

X

X

X

Zero Coupons, Pay-In-Kind Securities or Deferred Payment Securities

X

X

X

X

X

X

X

X

X

Additional Risks

X

X

X

X

X

X

X

X

X

Special Risks Related to Cyber Security

 

 

 

 

 

 

 

 

 

Regulatory and Legal Risk

 

 

 

 

 

 

 

 

 

Market and Geopolitical Risk

 

 

 

 

 

 

 

 

 

ESG Investment Risk

 

 

 

 

 

 

 

 

 

2 


 

Back to Table of Contents

GLOBAL AND INTERNATIONAL EQUITY FUNDS

 

Passport Overseas Equity

Counterpoint Global  

Global Endurance

Global Franchise

Global Opportunity

Global Permanence

Global Stars

International Advantage

International Equity

International Opportunity

Agencies

X

X

X

*

X

X

X

X

*

X

Asset-Backed Securities

 

 

 

 

 

 

 

 

 

 

Bitcoin Exposure

 

X

 

 

X

X

 

X

 

X

Borrowing for Investment Purposes

 

 

 

 

 

 

 

 

 

 

Brady Bonds

X

X

X

 

X

X

 

 

X

X

Cash Equivalents

X

X

X

X

X

X

X

X

X

X

China Investments

X

X

X

X

X

X

X

X

X

X

Chinese Fixed-Income Investments

 

 

 

 

 

 

 

 

 

 

Combined Transactions

X

X

X

 

X

X

X

X

X

X

Commodity-Linked Investments

 

 

 

 

 

 

 

 

 

 

Common Stocks

X

X

X

X

X

X

X

X

X

X

Contracts for Difference

X

X

X

 

X

X

X

X

X

X

Convertible Securities

X

X

X

X

X

X

X

X

X

X

Corporates

X

X

X

*

X

X

X

X

*

X

Currency Forwards

X

X

X

X

X

X

X

X

X

X

Depositary Receipts

X

X

X

X

X

X

X

X

X

X

Emerging Market Securities

X

X

X

X

X

X

X

X

X

X

Eurodollar and Yankee Dollar Obligations

X

X

X

X

X

X

X

X

X

X

Exchange-Listed Equities via Stock Connect Program

X

X

X

X

X

X

X

X

X

X

Exchange-Traded Funds

X

X

X

X

X

X

X

X

X

X

Floaters

 

 

 

 

 

 

 

 

 

 

Foreign Corporate Fixed-Income Securities

X

X

X

 

X

X

 

X

X

X

Foreign Currency Transactions

X

X

X

X

X

X

X

X

X

X

Foreign Equity Securities

X

X

X

X

X

X

X

X

X

X

Foreign Government Fixed-Income Securities

X

X

X

 

X

X

 

X

X

X

Futures Contracts

X

X

X

 

X

X

X

X

X

X

High Yield Securities

 

X

 

 

 

 

 

 

 

 

Illiquid Investments

X

X

X

X

X

X

X

X

X

X

Inverse Floaters

 

 

 

 

 

 

 

 

 

 

Investment Company Securities

X

X

X

X

X

X

X

X

X

X

Investment Funds

X

X

X

X

X

X

X

X

X

X

Investment Grade Securities

X

X

X

X

X

X

X

X

X

X

Investments in Saudi Arabia and the QFI Regime

X

 

 

 

 

 

 

 

 

 

IPOs

X

X

X

X

X

X

X

X

X

X

Limited Partnership and Limited Liability Company Interests

X

X

X

X

X

X

X

X

X

X

3 


 

Back to Table of Contents

GLOBAL AND INTERNATIONAL EQUITY FUNDS

 

Passport Overseas Equity

Counterpoint Global  

Global Endurance

Global Franchise

Global Opportunity

Global Permanence

Global Stars

International Advantage

International Equity

International Opportunity

Loan-Related Investments

 

 

 

 

 

 

 

 

 

 

Loans of Portfolio Securities

X

X

X

X

X

X

X

X

X

X

Money Market Instruments

X

X

X

X

X

X

X

X

X

X

Mortgage-Related Securities

 

X

X

 

X

X

 

X

 

X

Municipals

 

 

 

 

 

 

 

 

 

 

Non-Publicly Traded Securities, Private Placements and Restricted Securities

X

X

X

X

X

X

X

X

X

X

Options

X

X

X

 

X

X

X

X

X

X

Preferred Stocks

X

X

X

X

X

X

X

X

X

X

Real Estate Investing

X

X

X

X

X

X

X

X

X

X

—REITs

X

X

X

X

X

X

X

X

X

X

—Foreign Real Estate Companies

X

X

X

X

X

X

X

X

X

X

—Specialized Ownership Vehicles

X

X

X

X

X

X

X

X

X

X

Repurchase Agreements

X

X

X

X

X

X

X

X

X

X

Reverse Repurchase Agreements

 

X

X

 

 

X

 

 

 

 

Rights

X

X

X

X

X

X

X

X

X

X

Short Sales

 

 

 

 

 

 

 

 

 

 

Special Purpose Acquisition Companies

 

X

X

 

X

X

 

X

 

X

Structured Investments

 

X

X

 

X

X

 

X

 

X

Swaps

X

X

X

 

X

X

X

X

X

X

Temporary Borrowing

X

X

X

X

X

X

X

X

X

X

Temporary Investments

X

X

X

X

X

X

X

X

X

X

U.S. Government Securities

X

X

X

*

X

X

X

X

*

X

Variable Interest Entities

X

X

 

 

X

 

 

X

X

X

Warrants

X

X

X

X

X

X

X

X

X

X

When-Issued and Delayed Delivery Securities and Forward Commitments

X

X

X

X

X

X

X

X

X

X

Zero Coupons, Pay-In-Kind Securities or Deferred Payment Securities

X

X

X

 

X

X

 

X

X

X

Additional Risks

X

X

X

X

X

X

X

X

X

X

Special Risks Related to Cyber Security

 

 

 

 

 

 

 

 

 

 

Regulatory and Legal Risk

 

 

 

 

 

 

 

 

 

 

Market and Geopolitical Risk

 

 

 

 

 

 

 

 

 

 

ESG Investment Risk

 

 

 

 

 

 

 

 

 

 

* This Fund may invest in certain U.S. Government Securities, Agencies and Corporates as described under Money Market Instruments and Temporary Investments.

4 


 

Back to Table of Contents

U.S. EQUITY FUNDS

 

Advantage

Growth

Inception

US Core

Permanence

Vitality

Agencies

X

X

X

X

X

X

Asset-Backed Securities

 

 

 

 

 

 

Bitcoin Exposure

X

X

X

 

X

 

Borrowing for Investment Purposes

 

 

 

 

 

 

Brady Bonds

X

 

 

 

X

 

Cash Equivalents

X

X

X

X

X

X

Chinese Fixed-Income Investments

 

 

 

 

 

 

Combined Transactions

X

X

X

X

X

X

Commodity-Linked Investments

 

 

 

 

 

 

Common Stocks

X

X

X

X

X

X

Contracts for Difference

X

X

X

X

X

X

Convertible Securities

X

X

X

X

X

X

Corporates

X

X

X

X

X

X

Currency Forwards

X

X

X

X

X

X

Depositary Receipts

X

X

X

X

X

X

Emerging Market Securities

X

X

X

X

X

X

Eurodollar and Yankee Dollar Obligations

X

 

 

 

X

 

Exchange-Listed Equities via Stock Connect Program

X

 

 

 

X

 

Exchange-Traded Funds

X

X

X

X

X

X

Floaters

 

 

 

 

 

 

Foreign Corporate Fixed-Income Securities

X

 

 

 

X

 

Foreign Currency Transactions

X

X

X

X

X

X

Foreign Equity Securities

X

X

X

X

X

X

Foreign Government Fixed-Income Securities

X

 

 

 

X

 

Futures Contracts

X

X

X

X

X

X

High Yield Securities

 

 

 

 

 

 

Illiquid Investments