MORNINGSTAR OVERALL RATING™ CLASS I SHARES1 ★★★★★

AS OF JUNE 30, 2021 AMONG 282 WORLD LARGE-STOCK BLEND FUNDS

Morningstar ratings may vary among share classes and are based on historical risk- Morgan Stanley Institutional Fund adjusted returns, which are not indicate of future results. Global Sustain Portfolio

ACTIVE FUNDAMENTAL EQUITY | INTERNATIONAL EQUITY TEAM | ESG FACTCARD | JUNE 30, 2021

We believe understanding ESG risks and opportunities is required for successful long-term compounding. The Global Sustain Portfolio is a high quality, low carbon portfolio using bottom-up fundamental analysis Sustainability and active engagement with company management to identify material Rating™ environmental, social and governance (ESG) risks and opportunities to the The Morningstar Sustainability Rating as of March 31, 2020 is not sustainability of long-term company returns on operating capital. The fund based on fund performance and is excludes companies with significant business in Tobacco, Alcohol, Adult not equivalent to the Morningstar Entertainment, Gambling, Civilian Firearms or Weapons, Bulk Commodities, Rating. The Morningstar®Low Carbon Designation™ helps investors identify Fossil Fuels and Gas or Electric Utilities. The result is a high-conviction low-carbon funds. global equity portfolio that is strong on engagement, low on carbon and built on quality.

High Quality Investing2 Light on Carbon4

ESG is integrated within our process without relaxing our quality criteria. Global Sustain is a low carbon The result is a portfolio of reasonably priced quality compounders that intensity portfolio, with meet stringent criteria for high, sustainable returns. approximately 10% of the carbon footprint of the MSCI World Index. 53.7 51.0 Tons CO2e / $m Invested 29.0 73 16.0 52 6.8 4.8 1.0 2.2 5 ROOCE (%) Gross Margin (%) CAPEX/Sales (%) Net Debt/EBITDA (x) MSIF Global Top 30 MSCI Sustain ESG Funds5 World MSIF Global Sustain MSCI World

Tons CO2e / $m Sales

Active Engagement 1H21 Summary–Across Team Strategies 136 The team has engaged directly 129 96 32 with management on material 84 MSIF Global Top 30 MSCI issues of sustainability and Sustain ESG Funds5 World governance for over 20 years. Management Meetings ESG Engagements3

1 Morningstar Ratings: Overall Rating based on risk-adjusted return, out of 282 3 All interactions between International Equity team portfolio managers and funds as of 06/30/2021 in the World Large-Stock Blend Category – Class I shares. company management or non-executive board members from 1 January 2021 - 30 Ratings: 3 Year 5 stars (282 funds), 5 Year 5 stars (239 funds). June 2021 where material E, S, or G factors discussed. Data updated semi annually. 2 Quality ratios are historical; valuation ratios shown are for the next 12 months. 4 Research defines a portfolio’s carbon footprint as the carbon emissions (Scope 1 ROOCE (Return on Operating Capital Employed) = EBITA (Earnings Before Interest, and 2) of a portfolio per million dollars invested. They sum up all the emissions in Taxes and Amortization) / PPE (Property, Plant, Equipment) + Trade working a portfolio based on the investor’s ownership share, using reported or estimated capital (excludes goodwill). Ex-Financials. ROOCE, Gross Margin, Capex/Sales, emissions data. and Net Debt to EBITDA use last reported ex-Financials data. Characteristics are 5 30 largest global equity investment funds from FactSet and Morningstar databases calculated using the underlying companies in the MSIF Global Sustain Portfolio. with ESG, Environmental or Ethical focus, as defined by Morningstar, and where ESG considerations are reflected in the name of the fund. MSIF GLOBAL SUSTAIN PORTFOLIO

Active Portfolio Manager Led Engagement Integrating ESG analysis is active and intensive. It is not determined by third-party scores but by portfolio managers attuned to the material issues and opportunities for the companies they research.

OUR ENGAGEMENT RECORD6 1,239 78 84 104 Resolutions Number of times Management Number of times we voted voted on across we disagreed with engagements on against management, all our strategies ISS proposals ESG matters7 including 28 times on executive compensation

ENGAGEMENT THEMES INCLUDE:

Plastic Waste Data Privacy & Security Product Safety Executive Pay, Personal Products IT Services Health Care Equipment Board Controls Beverages Software & Supplies Health Care Equipment Household Products & Supplies Software Personal Products

8 Pay X-Ray VOTES ON MANAGEMENT SAY-ON-PAY PROPOSALS 100 The Pay X-Ray is our proprietary scoring tool, used to better compare company pay plans, facilitate team discussions and inform our voting approach. A streamlined scoring system, it enables us 50 to flag good and bad practices and rank our holdings’ remuneration plans. Each element of the plan receives a positive or negative score, rolled up into an overall company score. 0 2014 2015 2016 2017 2018 2019 2020 ote for % ote against %

6 Data shown is for the first half of 2021 (H1 2021). Data updated semi-annually. 7 International Equity Team defines an engagement as an interaction with senior management or nonexecutive board members. 8 Any remuneration-related proposals.

2 MORGAN STANLEY INVESTMENT MANAGEMENT | ACTIVE FUNDAMENTAL EQUITY ESG FACTCARD

A high conviction approach, with many of our companies supporting the UN SDGs9

RECKITT BECTON MICROSOFT BENCKISER VISA SAP HENKEL ACCENTURE DICKINSON

Total Net Assets (%) 7.8 5.5 5.5 5.2 4.3 4.3 3.9

No Poverty • • • • Zero Hunger • • • • Good Health and Well-Being • • • • • • Quality Education • • • • • Gender Equality • • • • • • • • Clean Water and Sanitation • • • • Affordable and Clean Energy • • • Decent Work and Economic Growth • • • • • • • • Industry, Innovation and Infrastructure • • • • Reduced Inequalities • • • Sustainable Cities and Communities • • • Responsible Consumption and Production • • • Climate Action • • • • • • Life Below Water • • Life on Land • • • Peace, Justice and Strong Institutions • • • • Partnerships for Goals • • • • •

9 Source: Morgan Stanley Investment Management. Source: Company Annual Reports & Sustainability Reports. Provided for informational purposes only and should not be deemed as a recommendation to purchase or sell the securities mentioned. Two dots refer to those with the biggest impact. Companies shown are taken from the Top Ten holdings in the MSIF Global Sustain Portfolio as of June 30, 2021. United Nations Sustainable Development Goals (UN SDGs) are a collection of 17 global goals set by the United Nations General Assembly.

ACTIVE FUNDAMENTAL EQUITY | MORGAN STANLEY INVESTMENT MANAGEMENT 3 MSIF GLOBAL SUSTAIN PORTFOLIO

Global Sustain does not Hold the Most Carbon-Intensive Sectors Position Weight (%) vs. Carbon Intensity (tCO2/$mn Sales) 40 2,000 37.5

25.2

20 1,000 16.6

7.7 6.4 3.4 1.1 0.0 0.0 0.0 0.0 0 0 Information Health Consumer Financials Industrials Communication Consumer Real Estate Energy Materials Utilities Technology Care Staples Services Discretionary

Global Sustain tCO2e/$M Sales MSCI World tCO2e/$M Sales Global Sustain Position Weight (LHS)

Source: MSCI and Morgan Stanley Investment Management. Data as of June 30, 2021. Updated quarterly. MSCI ESG Research defines a portfolio’s carbon footprint as the carbon emissions (Scope 1 and 2) of a portfolio per $1 million of portfolio companies’ sales. The above reflects data per $mnof companies’ sales. They sum up all emissions in a portfolio based on the investor’s ownership share, using reported or estimated emissions data.

Sustainability Scores10 We examine ESG risks and opportunities on a case-by-case basis for the companies we hold, without seeking to meet overall portfolio targets or ratings of external data providers. We provide such scores here as reference for those who rely on them.

Environmental Social Governance OVERALL

72.2 68.5 67.2 66.6 67.1 65.4 63.8 62.4

MSIF Global Sustain MSCI World

71.1 67.3

10 Source: Sustainalytics, Morgan Stanley Investment Management. Data as of June 30, 2021. The global strategies listed are not managed with an objective of meeting, exceeding or otherwise tracking any explicit rating, benchmark or target relating to one or more ESG factors. Any data provided with respect to any such rating, benchmark or target (such as Sustainalytics Score or any carbon emission figures etc) is for informational purposes only and is intended to show how the strategy measures up based on one or more ESG factors, using independent criteria. There are different ways of measuring impact on any ESG factor and any data provided is not intended to be a comprehensive representation of impact on any such ESG factor, or to imply that the strategy is managed to such factor. Reproduced by permission; no further redistribution.

4 MORGAN STANLEY INVESTMENT MANAGEMENT | ACTIVE FUNDAMENTAL EQUITY ESG FACTCARD

SINCE Average Annual Total Returns 2Q21 YTD 1 YEAR 3 YEAR 5 YEAR INCEPTION MSIF Global Sustain-Class I Shares (%) 6.19 8.69 24.26 16.06 15.06 12.82 MSCI World Net Index (%) 7.74 13.05 39.04 14.99 14.83 11.65

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. Returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. Performance and fund information is as of June 30, 2021, unless otherwise noted. Returns are net of fees and assume the reinvestment of all dividends and income. Returns for less than one year are cumulative (not annualized). The gross expense ratio is 1.45% for Class I shares and the net expense ratio is 0.90%. Expenses are based on the fund’s current prospectus. The minimum initial investment is $5,000,000 for Class I shares. Performance, expenses, and minimums for other share classes will vary. Market Cycle Performance Annualized Average Percentage since inception August 30, 2013 through June 30, 2021

UP MARKET UPSIDE DOWN MARKET DOWNSIDE CAPTURE CAPTURE CAPTURE CAPTURE MSIF Global Sustain-Class I Shares (%) 24.6 92 -9.4 79 MSCI World Net Index (%) 26.8 100 -11.9 100

Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The comparison index is the MSCI World Index with Net dividends reinvested. Source: MSCI, Morgan Stanley Investment Management as of June 30, 2021. Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The comparison index is the MSCI World Index with Net dividends reinvested. MSIF Global Sustain Portfolio’s inception date is August 30, 2013. The portfolio converted from MSIF Global Quality to MSIF Global Sustain on April 30, 2018. Performance for the period prior to May 2018 represents MSIF Global Quality. The Upside or Downside capture ratio measures the portfolio’s performance relative to the market in up or down markets. A market is considered down if the return for the benchmark is less than zero and up if the return is greater than or equal to zero. The Downside Capture Ratio is calculated by dividing the portfolio’s return during the down market periods by the return of the market during the same periods; for periods greater than 1 year, returns are annualized. The Upside Capture Ratio is calculated by dividing the portfolio’s return during the up market periods by the return of the market for the same period; for periods greater than 1 year, returns are annualized.

EXPENSE RATIO SYMBOL CUSIP GROSS (%) NET (%) Class A MGQAX 61760X646 1.76 1.25 Class C MSGQX 61760X430 2.51 2.00 Class I MGQIX 61760X653 1.45 0.90 Class IS MGQSX 61760X620 1.41 0.85

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 waivers and/or 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.

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 and that the value of Portfolio shares may therefore be less than what you paid for them. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in this Portfolio. Please be aware that this Portfolio may be subject to certain additional risks. 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. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed countries. Stocks of small-and medium capitalization companies entail special risks, such as limited product lines, markets and financial resources, and greater market volatility than securities of larger, more established companies. 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. Derivative instruments may proportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks. Illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk). Privately placed and restricted securities may be subject to resale restrictions as well as a lack of publicly available information, which will increase their illiquidity and could adversely affect the ability to value and sell them (liquidity risk).

ACTIVE FUNDAMENTAL EQUITY | MORGAN STANLEY INVESTMENT MANAGEMENT 5 INDEX INFORMATION and Low equals 1 globe. As part of the evaluation process, Morningstar The MSCI World Net Index is a free float adjusted market capitalization uses Sustainalytics’ ESG scores from the same month as the portfolio as-of weighted index that is designed to measure the global equity market date. The Fund’s portfolio is actively managed and is subject to change, performance of developed markets. The term “free float” represents the which may result in a different Morningstar Sustainability Score and Rating portion of shares outstanding that are deemed to be available for purchase each month. The Fund was rated on 97.32% of assets under management. in the public equity markets by investors. The performance of the Index is The Morningstar Low Carbon Risk Indexes are derived from the large and listed in U.S. dollars and assumes reinvestment of net dividends. The index midcap segment of their equivalent broad market benchmark. To be eligible, is unmanaged and does not include any expenses, fees or sales charges. It is a company must have undergone a carbon risk assessment by Sustainalytics, not possible to invest directly in an index. which provides carbon research on more than 4,000 companies across 130 Morningstar: Ratings as of June 30, 2021. The Morningstar Rating™ for industry groups. Portfolios that have low carbon-risk scores and low levels funds, or “star rating”, is calculated for managed products (including mutual of fossil-fuel exposure receive the Morningstar® Low Carbon Designation™ funds, variable annuity and variable life subaccounts, exchange-traded to help investors identify low-carbon funds. funds, closed-end funds, and separate accounts) with at least a three-year ©2021 Morningstar, Inc. All rights reserved. The information contained history. Exchange-traded funds and open-ended mutual funds are considered herein: (1) is proprietary to Morningstar and/or its content providers; (2) may a single population for comparative purposes. It is calculated based on a not be copied or distributed; and (3) is not warranted to be accurate, complete Morningstar Risk-Adjusted Return measure that accounts for variation in or timely. Neither Morningstar nor its content providers are responsible a managed product’s monthly excess performance, placing more emphasis for any damages or losses arising from any use of this information. Past on downward variations and rewarding consistent performance. The top performance is no guarantee of future results. Morningstar information is 10% of products in each product category receive 5 stars, the next 22.5% based on quarter-end data. Please visit morganstanley.com/imfor the latest receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, month-end Morningstar information. and the bottom 10% receive 1 star. The Overall Morningstar Rating for a Please consider the investment objective, risks, charges and expenses managed product is derived from a weighted average of the performance of the fund carefully before investing. The prospectus contains this and figures associated with its three-, five-, and 10-year (if applicable) Morningstar other information about the fund. To obtain a prospectus, download one Rating metrics. The weights are: 100% three-year rating for 36-59 months at morganstanley.com/imor call 1.800.548.7786. of total returns, 60% five-year rating/40% three-year rating for 60-119 Please read the prospectus carefully before you invest or send money. months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year Morgan Stanley Institutional Fund Inc. (MSIF) is an institutional mutual overall star rating formula seems to give the most weight to the 10-year fund offering various active portfolios, including equity, fixed-income, period, the most recent three-year period actually has the greatest impact international, emerging markets, real estate and growth. because it is included in all three rating periods. Ratings do not take into Fund adviser MSIF is managed by Morgan Stanley Investment Management, account sales loads. Inc. Morningstar Sustainability Rating is as of 03/31/2021. The Morningstar Morgan Stanley Investment Management (MSIM) is the asset management Sustainability Rating™ is intended to measure how well the issuing companies division of Morgan Stanley. of the securities within a fund’s portfolio are managing their environmental, NOT FDIC INSURED | OFFER NO BANK GUARANTEE | MAY LOSE VALUE social and governance (ESG) risks and opportunities relative to the fund’s | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | NOT A Morningstar category peers. A High Sustainability Rating equals 5 globes BANK DEPOSIT

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