Morgan Stanley Institutional Fund (MSIF)

Global Infrastructure Portfolio

REAL ASSETS | GLOBAL LISTED REAL ASSETS TEAM | FUND BROCHURE | DECEMBER 2016

FOR FINANCIAL PROFESSIONAL USE ONLY AND MAY NOT BE USED WITH THE GENERAL PUBLIC.

Portfolio ManagersThe MSIF Global Infrastructure Portfolio is managed by senior members of the Global Listed Real Assets team.

THEODORE R. BIGMANManaging Director

Joined the firm in 1995, with 30 years of financial industry experience

MATTHEW KINGManaging Director

Joined the firm in 2008, with 17 years of financial industry experience

Performance – Class I (% net of fees)*

Average annual total returns (Periods ending December 31, 2016)

QUARTERLY YTD 1 YEAR 3 YEAR 5 YEAR SINCE INCEPTION

(9/20/2010)

MSIF Global Infrastructure Portfolio -5.54 15.55 15.55 4.70 9.86 11.19

Dow Jones Brookfield Global Infrastructure Index

-5.25 12.52 12.52 3.87 8.54 9.98

S&P Global BMI Index 1.33 8.84 8.84 3.79 10.20 8.43

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit morganstanley.com/im or call 1-800-548-7786. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost.The gross expense ratio is 1.10% for Class I shares and the net expense ratio is 0.87%. Where the net expense ratio is lower than the gross expense ratio, certain fees have been waived and/or expenses reimbursed. These waivers and/or reimbursements will continue for at least one year from the date of the applicable fund’s current prospectus (unless otherwise noted in the applicable prospectus) or until such time as the fund’s Board of Directors acts to discontinue all or a portion of such waivers and/or reimbursements. Absent such fee waivers/reimbursements, returns would have been lower. Expenses are based on the fund’s current prospectus. The minimum initial investment is $5,000,000 for Class I shares, $10,000,000 for Class IS, $1,000 for Class A shares and $1,000 for Class C shares. Class A shares have a 5.25% maximum sales charge.1 Source: Morningstar, Inc. Infrastructure Category. Morningstar rankings and ratings may vary for other share classes. Rankings: The rankings are based on the average annual total returns for the periods stated and do not include any sales charges, but do include reinvestment of dividends and capital gains and Rule 12b-1 fee. If they had been, total returns would be lower. Ratings: Morningstar, Inc. is an independent publisher of mutual fund research and ratings. Ratings reflect a fund’s risk-adjusted 3-, 5-, and 10-year total returns if applicable, including any sales charge. A Fund is rated against all other funds in its category. Overall Rating for a fund is derived from a weighted average of the ratings for the time periods indicated. 5 stars are assigned to the top 10%; 4 stars to the next 22.5%; 3 stars to the next 35%; 2 stars to the next 22.5%; and 1 star to the bottom 10%. Morningstar only rates funds with at least a 3-year history.Morgan Stanley Institutional Fund Inc. (MSIF) is a mutual fund offering various active portfolios, including equity, fixed-income, international, emerging markets, real estate and growth portfolios.* Returns are net of fees and assume the reinvestment of all dividends and income. Returns for less than one year are cumulative (unannualized). Performance of other share classes will vary.

★★★★Overall Morningstar Rating™ for Class I Shares1

69 Funds – Infrastructure CategoryBased on risk-adjusted returns

MORNINGSTAR RANKING FOR INFRASTRUCTURE CATEGORY

PERCENTILE IN CATEGORY (RANK/TOTAL NUMBER IN CATEGORY)

1 Year 5% 5/87

3 Years 14% 10/69

5 Years 23% 12/49

Source: Morningstar, Inc. As of December 31, 2016. Rankings and ratings are historical and do not guarantee future results. Ratings: 3 Years 4 Stars; 5 Years 4 Stars. Rankings: Based on average annual total returns for Class I shares.

An investment in global listed infrastructure securities can offer a wide range of benefits, which include exposure to a growing asset class with historically favorable risk/return characteristics, little overlap to the broader equity markets and a hedge against inflation. In today’s market environment, consider an allocation to Morgan Stanley Institutional Fund (MSIF) Global Infrastructure Portfolio.

Infrastructure is the backbone of society. It is the energy, transportation, communication and similar networks essential to a modern economy. As an asset class, it consists of long-lived, real assets of typically monopolistic enterprises with high barriers to entry and with consistently strong demand—attractive inherent characteristics that create unique investment opportunities.

Global infrastructure is a growing asset class that offers historically broad-based diversification, lower volatility and the potential to outperform equities, and we believe our value approach is well suited to delivering compelling returns over the long term.

3 REASONS TO CONSIDER

SYMBOLS

Class A MTIPX

Class C MSGTX

Class I MTIIX

Class IS MSGPX

FUND SNAPSHOT1

Fund InceptionSeptember 20, 2010

BenchmarkDow Jones Brookfield Global Infrastructure Index2

Number of Holdings51

Turnover (%)3

48

3 Year Beta (vs. benchmark)3

1.00%

3 Year Sharpe Ratio3

0.40%

1 Data as of December 31, 2016.2 Dow Jones Brookfield Global Infrastructure Index is a free f loat-adjusted market capitalization weighted index that measures the stock performance of companies that exhibit strong infrastructure characteristics. The Index intends to measure all sectors of the infrastructure market.3 For definition of metrics , please see back cover.

1GLOBAL INFRASTRUCTURE PORTFOLIO | MORGAN STANLEY INVESTMENT MANAGEMENT

Growing asset class that offers broad-based diversification

Improved portfolio efficiency

Proven infrastructure value investor1 2 3

4 Diversification neither assures a profit nor guarantees against loss in a declining market.5 Source: “Strategic Transport Infrastructure Needs to 2030,” OECD 2011.

Pipeline CompaniesOil & Gas Midstream(Natural Gas Gathering, Processing, Storage, Fractionation, Transportation & Marketing Services)

ENERGY

AirportsToll RoadsPortsRailroads

TRANSPORTATION

Electricity Transmission & DistributionNatural Gas DistributionWater Renewables

UTILITIES

Wireless Towers Fixed Orbit Satellite Operators

COMMUNICATIONS

2 MORGAN STANLEY INVESTMENT MANAGEMENT | GLOBAL INFRASTRUCTURE PORTFOLIO

The OECD expects global infrastructure investment needs to total $53 trillion from 2010-30,5 driven by powerful structural forces worldwide. In the developed markets, decades of underinvestment in infrastructure have left aging transportation, communication and

energy networks in critical need of repair and upgrades while demand continues to evolve.

Meanwhile, in the emerging markets, infrastructure has not kept pace with population growth, urbanization, rising standards of living and rapid growth in international trade. The result is a

bottleneck that demands a significant build-out of new infrastructure.

A world that is constantly growing and changing keeps demand high for these semi-permanent assets that are so essential to our economic and social existence.

Growing asset class that offers broad-based diversification41

Defining global infrastructureComprised of the hard assets, structures and facilities on which a society runs, infrastructure is the framework for modern economic activity.

3GLOBAL INFRASTRUCTURE PORTFOLIO | MORGAN STANLEY INVESTMENT MANAGEMENT

Infrastructure assets have a history of upside participation and capital preservation relative to global equities, typically providing a strong defense during economic contractions. The essential nature of their services keeps demand strong while their monopolistic, regulated and often

inflation-protected business models keep cash flows stable and balance sheets healthy.

As a result, infrastructure stocks may offer not only attractive risk-adjusted returns, but also a hedge against inflation, low correlation to broad

asset classes and diversification that improves overall portfolio efficiency.

These gains are reflected in the table below, where adding infrastructure to the equity portion of a portfolio divided 60/40 between stocks and bonds has resulted in a higher Sharpe ratio, or higher return per unit of risk.

Improved portfolio efficiency2

Five-Year Rolling Sharpe Ratio Demonstrates Historically More Attractive Risk-Adjusted Returns

Shar

pe R

atio

2014201320122011201020092008

2.5

1.0

1.5

0.5

2.0

0.0

-0.52015 2016

Global Infrastructure Securities Global Equities

Source: Morningstar, Zephyr, Morgan Stanley Investment Management. Data for the period January 1, 2003 through December 31, 2016. Global infrastructure securities is represented by Dow Jones Brookfield Global Infrastructure Index, global equities by Standard & Poor’s Global BMI Index and global bonds by Barclays Global Aggregate Index. Past Performance is not indicative of future results. The information shown herein is provided for illustrative purposes only and not representative of any Morgan Stanley product or strategy. It is not possible to invest directly in an index. Note: The Dow Jones Brookfield Global Infrastructure Index (the “Index”) was first calculated on July 14, 2008, at the market close. All information presented prior to this date is back-tested. Back-tested performance is not actual performance, but is hypothetical. For additional important information regarding this back-tested data, please refer to the end of the brochure.Investing involves risks including the possible loss of principal. Equity securities are more volatile than bonds and subject to greater risks. Bonds are subject to interest-rate, price and credit risks. Prices tend to be inversely affected by changes in interest rates. Companies within the infrastructure industry are subject to a variety of factors that may adversely affect their business or operations. Investments in foreign markets entail special risks such as currency, political, economic, and market risks. The risks of investing in emerging markets are greater than the risks generally associated with foreign investments.

Portfolio Efficiency Rises as Infrastructure is Added

60/40 PORTFOLIO +5 +10 +15 +20

Return 7.41% 7.63% 7.85% 8.06% 8.27%

Standard Deviation 11.25 11.04 10.86 10.72 10.60

Sharpe Ratio 0.55 0.58 0.61 0.64 0.66

Global Infrastructure Global Bonds Global Equities

4 MORGAN STANLEY INVESTMENT MANAGEMENT | GLOBAL INFRASTRUCTURE PORTFOLIO

Among these companies, we look for value. We believe that over the long term, the performance of infrastructure stocks will be most highly correlated with the underlying value of their assets, and we use proprietary bottom-up driven research to target stocks trading at a discount relative to their underlying assets and growth prospects.

The result of this highly targeted, low-turnover approach is a portfolio that relative to its peers has delivered compelling returns, with lower volatility, and provided better capital preservation on the downside.

Compelling risk-adjusted returns relative to peers

5 Year Standard Deviation5 Year Return

10

5

9.868.64

7.94

10.8210.32 10.78

0

15

n MSIF Global Infrastructure Class I Shares n Morningstar Infrastructure n Lipper Global Infrastructure

Source: Morgan Stanley Investment Management. Data for the five-year period ended December 31, 2016.

Favorable upside/downside capture profile relative to global equities versus peers

Down Capture (5 Year)Up Capture (5 Year)

80

40

0

120

80.25 80.5173.01

88.3279.42 81.23

n MSIF Global Infrastructure Class I Shares n Morningstar Infrastructure n Lipper Global Infrastructure

Source: Morgan Stanley Investment Management. Data for the five-year period ended December 31, 2016.

Proven infrastructure value investor3

Need 3 more reasons?

Focused definition of infrastructure which we believe provides better capital preservation in periods of market distress and economic weakness.

A DifferentiatedApproach 4

Our long-tenured, highly experienced Global Listed Real Assets team has been investing in listed real estate since 1995 and in listed infrastructure since 2010, managing $19.8 billion in total assets as of December 31, 2016.

Investment Team5

With a depth of experience, we have successfully run infrastructure strategies through varied periods of market fluctuation, winning awards and distinctions in the process.

Track record6

5GLOBAL INFRASTRUCTURE PORTFOLIO | MORGAN STANLEY INVESTMENT MANAGEMENT

Get active. Go global. Invest in the future.The Morgan Stanley Institutional Fund Global Infrastructure Portfolio connects you to opportunities in infrastructure—undervalued hard assets that are essential to our economic and social existence, generate monopolistic rents and are resilient in the face of business cycles, inflation and commodity price fluctuations, while diversifying your portfolio with a strong risk/reward profile.

About Morgan Stanley Investment Management*

Morgan Stanley Investment Management, together with its investment advisory affiliates, has 585 investment professionals around the world and approximately $417 billion in assets under management or supervision as of December 31, 2016. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.

For more information, please email us at info@morganstanley.com or visit our website at www.morganstanley.com/im. This material is current as of the date specified, is for educational purposes only and does not contend to address the financial objectives, situation or specific needs of any individual investor.

* Source: Morgan Stanley Investment Management. Assets under management as of December 31, 2016.

Morgan Stanley Investment Management is the asset management division of Morgan Stanley. Assets are managed by teams representing different Morgan Stanley Investment Management legal entities; portfolio management teams are primarily located in New York, Philadelphia, London, Amsterdam, Hong Kong, Singapore, Tokyo and Mumbai offices. Figure represents Morgan Stanley Investment Management’s total assets under management/supervision.

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FOR FINANCIAL PROFESSIONAL USE ONLY AND MAY NOT BE USED WITH THE GENERAL PUBLIC.

RISK/RETURN DEFINITIONSSharpe Ratio is a risk-adjusted measure calculated as the ratio of excess return to standard deviation. The Sharpe ratio determines reward per unit of risk. The higher the Sharpe ratio, the better the historical risk-adjusted performance.

Standard Deviation measures how widely individual performance returns, within a performance series, are dispersed from the average or mean value.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Upside Capture is a statistical measure of an investment manager’s overall performance in up-markets. The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen.

Downside Capture is a statistical measure of an investment manager’s overall performance in down-markets. The downside capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has declined.

Turnover measures the percentage of securities within the portfolio that have changed since the beginning of the portfolio’s fiscal year.

Dow Jones Brookfield Global Infrastructure Index is a free float-adjusted market capitalization weighted index that measures the stock performance of companies that exhibit strong infrastructure characteristics. The Index intends to measure all sectors of the infrastructure market. The Standard & Poor’s Global BMI Index is a broad market index designed to capture exposure to equities in all countries in the world that meet minimum size and liquidity requirements. The index includes developed and emerging market countries. Barclays Global Aggregate Index provides a broad-based measure of the global investment grade fixed-rate debt markets. Total Returns shown in unhedged USD. The indexes are unmanaged and returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

BACK-TESTED DISCLOSURE:Source: Standard & Poors as of December 31, 2016. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. Complete index methodology details are available at www.spindices.com. The backtested results are generated with the benefit of hindsight. No representation is being made that any portfolio or strategy will or is likely to achieve similar results to those being shown. While backtested results reflect the application of the methodology, they are inherently limited by the fact that they do not represent actual trading results or the performance of an actual portfolio. S&P Dow Jones Indices LLC maintains the Index and calculates the Index levels and performance shown or discussed, but does not manage actual assets. Index returns do not reflect payment of any sales charges or fees an investor may pay. The imposition of these fees and charges would cause actual and back-tested performance to be lower.

RISK CONSIDERATIONS:There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline. Accordingly, you can lose money investing in this strategy. Please be aware that this strategy may be subject to certain additional risks. Companies within the infrastructure industry are subject to a variety of factors that may adversely affect their business or operations, including high interest, leverage and regulatory costs, difficulty raising capital, the effect of an economic slowdown or recession and surplus capacity, and increased competition. Other risks include technological innovation, significant changes in the number of end-users, an increasing deregulatory environment, natural and environmental risks, and terrorist attacks. In general, equities securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. Certain infrastructure companies in which the Portfolio may invest may elect to be treated as a real estate investment trusts (REIT) for U.S. tax purposes. Investing in REITs exposes investors to the risks of owning real estate directly, as well as to risks that relate specifically to the way in which REITs are organized and operated. Investments in small- and medium-capitalization companies tend to be more volatile and less liquid than those of larger, more established, companies. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries. Non-diversified portfolios often invest in a more limited number of issuers. As such, changes in the financial condition or market value of a single issuer may cause greater volatility. Illiquid securities may be more difficult to sell and value than public traded securities (liquidity risk).

MORNINGSTARPast performance is no guarantee of future results. Morningstar counts each share class as a separate fund for purposes of its ranking calculations. Morningstar compares mutual funds within a universe of funds with similar investment objectives, including dividend reinvestment.

© 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/ or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Please ask your clients to consider the investment objective, risks, charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds and can be obtained by contacting you the financial professional, or by downloading one at morganstanley.com/im . Encourage your clients to read the prospectus carefully before investing.

Morgan Stanley Investment Management is the asset management division of Morgan Stanley.

Morgan Stanley Institutional Fund Inc. (MSIF) is a mutual fund offering various active portfolios, including equity, fixed-income, international, emerging markets, real estate and growth portfolios.

Fund adviser MSIF is managed by Morgan Stanley Investment Management, Inc.