ACTIVE FUNDAMENTAL EQUITY | INTERNATIONAL EQUITY TEAM | ESG FACTCARD | MARCH 31, 2020

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 and active engagement with company management to identify material environmental, social and governance (ESG) risks and opportunities to the sustainability of long-term company returns. The fund excludes companies with significant business in Tobacco, Alcohol, Adult Entertainment, Gambling, Civilian Firearms or Weapons, Bulk Commodities, Fossil Fuels and Gas or Electric Utilities. The result is a high-conviction global equity portfolio that is strong on engagement, low on carbon and built on quality.

Morgan Stanley Institutional Fund Global Sustain Portfolio

Sustainability Rating™The Morningstar Sustainability Rating as of February 28, 2020 is not based on fund performance and is not equivalent to the Morningstar Rating.

★★★★★OVERALL MORNINGSTAR RATING™As of March 31, 2020 among 7511 world large stock fundsMorningstar ratings may vary among share classes and are based on historical risk-adjusted returns, which are not indicative of future results.

375283

Management meetings

ESG engagements

49.0

16.4

51.5

28.1

5.0 6.81.3 2.2

ROOCE(%)

Gross Margin(%)

CAPEX/Sales (%)

Net Debt/EBITDA (x)

MSIF Global Sustain MSCI World

• Number of resolutions voted across the team’s strategies 1252

• Number of times the team voted against management 79

• Number of times team voted against management on executive compensation 16

• Number of times we disagreed with ISS proposals 60

2019 Summary

7

85

133

MSIF GlobalSustain

Top 30 ESG Funds

MSCIWorld

23

122183

MSIF GlobalSustain

Top 30 ESG Funds5

MSCIWorld

Strong on Engagement2

We engage directly — and often — with the management of companies we own. This gives us significant influence in key issues, including ESG-oriented ones.

Light on Carbon3,4

Global Sustain is a reduced carbon intensity portfolio, with approximately 10% of the carbon footprint of the MSCI World Index.

Built on Quality3,4,6

ESG is fully integrated without relaxing our quality criteria. The result is a portfolio of reasonably priced quality compounders that meet stringent criteria for high, sustainable returns.

Tons CO2e / $m Invested Tons CO2e / $m Sales

1 Morningstar Ratings: Overall Rating based on risk-adjusted return, out of 752 funds as of 3/31/2020 in the World Large Stock Category – Class I shares. Ratings: 3 Year 5 stars (751 funds), 5 Year 5 stars (619 funds).2 All interactions between International Equity team portfolio managers and company management or non-executive board members from January 1, 2019 — December 31, 2019 where material E, S, or G factors discussed. Data updated annually.3 Research defines a portfolio’s carbon footprint as the carbon emissions (Scope 1 and 2) of a portfolio per million dollars invested. They sum up all the emissions in a portfolio based on the investor’s ownership share, using reported or estimated emissions data.

4 Data as of March 31, 2020 5 30 largest global equity investment funds from FactSet and Morningstar databases with ESG, Environmental or Ethical focus, as defined by Morningstar, and where ESG considerations are reflected in the name of the fund.6 Quality ratios are historical; valuation ratios shown are for the next 12 months. ROOCE (Return on Operating Capital Employed) = EBITA (Earnings Before Interest, Taxes and Amortization) / PPE (Property, Plant, Equipment) + Trade working capital (excludes goodwill). Ex-Financials. ROOCE, Gross Margin, Capex/Sales, and Net Debt to EBITDA use last reported ex-Financials data. Characteristics are calculated using the underlying companies in the MSIF Global Sustain Portfolio.

2

MSIF GLOBAL SUSTAIN PORTFOLIO

MORGAN STANLEY INVESTMENT MANAGEMENT | ACTIVE FUNDAMENTAL EQUITY

SECTORWEIGHT

(%)tCO2e/

$M SALES7RELATIVE TO THE

MSCI WORLD INDEX (%)Information Technology 35.8 33.5 18.1Health Care 28.1 29.3 16.1Consumer Staples 17.4 30.5 16.7Communication Services 6.0 2.3 1.3Financials 5.0 1.3 0.7Industrials 3.3 7.7 4.2Consumer Discretionary 1.9 7.5 4.1Energy 0.0 NA NAMaterials 0.0 NA NAReal Estate 0.0 NA NAUtilities 0.0 NA NAOverall 23.30 12.7

Global Sustain skews to lower carbon emittersOur carbon intensity is lower than the overall index.

A high conviction approach, with many of our companies supporting the UN SDGs8

MICROSOFT9RECKITT

BENCKISER9 VISA9 SAP9 ACCENTURE9BECTON

DICKINSON9 HENKEL9ABBOTT

LABORATORIES9

Total Net Assets (%)8 7.5 7.0 5.5 5.5 4.5 4.2 4.1 3.8

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 • • • • •

7 MSCI ESG Research defines a portfolio’s carbon footprint as the carbon emissions (Scope 1 and 2) of a portfolio per $1 million invested or per $1million of portfolio companies’ sales. They sum up all emissions in a portfolio based on the investor’s ownership share, using reported or estimated emissions data. Based on MSIM calculations. Sources: RAC Foundation; Lightfoot.co.uk “How much CO2 does a car emit per year”; Canadian Council of Forest Ministers www.sfmcanada.org8 Provided for informational purposes only and should not be deemed as a recommendation to purchase or sell the securities mentioned. Companies

shown are taken from the Top Ten holdings in the Global Sustain Portfolio as of March 31, 2020. United Nations Sustainable Development Goals (UN SDGs) are a collection of 17 global goals set by the United Nations General Assembly. A single • dot represents a company’s impact. The content of this publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States. For additional information, please see the United Nations Sustainable Development Goals web site at https://www.un.org/ sustainabledevelopment/sustainable-development-goals9 Source: Company Annual Reports & Sustainability Reports.

3

Overall

ESG FACTCARD

ACTIVE FUNDAMENTAL EQUITY | MORGAN STANLEY INVESTMENT MANAGEMENT

Sustainability Scores10

Annualized Total Returns11

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.

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.

71.067.1

MSIF Global Sustain MSCI World

62.7 61.4

Environmental Social

66.265.0

Governance

66.064.0

1Q20 YTD 1 YEAR 3 YEAR 5 YEARSINCE

INCEPTIONMSIF Global Sustain - Class I (%) -13.85 -13.85 -0.44 8.16 8.47 8.95 MSCI World Net Index (%) -21.05 -21.05 -10.39 1.92 3.25 5.56

10 Source: Sustainalytics, Morgan Stanley Investment Management. Data as of March 31, 2020. 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 redistribution11 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 March 31, 2020, 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 2.82% 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.12 Source: MSCI, Morgan Stanley Investment Management as of March 31, 2020. 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.

71.067.1

MSIF Global Sustain MSCI World

Market Cycle Performance12 Annualized Average Percentage since August 30, 2013 through March 31, 2020

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.

UP MARKET RETURN UPSIDE CAPTURE DOWN MARKET RETURN DOWNSIDE CAPTUREMSIF Global Sustain - Class I (%) 28.0 97 -10.7 75MSCI World Net Index (%) 21.7 100 -14.3 100

Expense Ratios SYMBOL CUSIP GROSS (%) NET (%)Class A MGQAX 61760X646 3.17 1.25

Class C MSGQX 61760X430 3.97 2.00

Class I MGQIX 61760X653 2.82 0.90Class IS MGQSX 61760X620 3.12 0.85

Visit www.morganstanley.com/im/sustain

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INDEX INFORMATIONThe MSCI World Net Index is a free float adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed 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. The index is unmanaged and does not include any expenses, fees orsales charges. It is not possible to invest directly in an index.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).Morningstar: Ratings as of December 31, 2019. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year

(if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 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 overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account sales loads.Morningstar Sustainability Rating is as of 9/30/2019. The Morningstar Sustainability Rating™ is intended to measure how well the issuing companies of the securities within a fund’s portfolio are managing their environmental, social and governance (ESG) risks and opportunities relative to the fund’s Morningstar category peers. A High Sustainability Rating equals 5 globes and Low equals 1 globe. As part of the evaluation process, Morningstar uses Sustainalytics’ ESG scores from the same month as the portfolio as-of date. The Fund’s portfolio is actively managed and is subject to change, which may result in a different Morningstar Sustainability Score and Rating each month. The Fund was rated on 98.7% of assets under management. The Morningstar Low Carbon Risk Indexes are derived from the large and midcap segment of their equivalent broad market benchmark. To be eligible, a company must have undergone a carbon risk assessment by Sustainalytics, which provides carbon research on more than 4,000 companies across 130 industry groups. Portfolios that have low carbon-risk scores and low levels of fossil-fuel exposure receive the Morningstar® Low Carbon Designation™ to help investors identify low-carbon funds. ©2020 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. Past performance is no guarantee of future results. Morningstar information is based on quarter-end data. Please visit morganstanley.com/im for the latest month-end Morningstar information. Please consider the investment objective, risks, charges and expenses of the fund carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, download one at morganstanley.com/im or call 1.800.548.7786.Please read the prospectus carefully before you invest or send money.Morgan Stanley Institutional Fund Inc. (MSIF) is an institutional mutual fund offering various active portfolios, including equity, fixed-income, international, emerging markets, real estate and growth.Fund adviser MSIF is managed by Morgan Stanley Investment Management, Inc.Morgan Stanley Investment Management (MSIM) is the asset management division of Morgan Stanley.NOT FDIC INSURED | OFFER NO BANK GUARANTEE | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | NOT A BANK DEPOSIT