Morgan Stanley Investment Funds Semi-Annual Report 2012 potx

Morgan Stanley
Investment Funds
Société d’Investissement
à Capital Variable
incorporated under
the laws of Luxembourg
Semi-Annual
Report
June 30, 2012
INVESTMENT MANAGEMENT
R.C.S. Luxembourg: B-29.192

Morgan Stanley Investment Funds 30 June 2012
1 Shareholders’ information
STATEMENT OF INVESTMENTS
Equity Funds
2 Asian Equity Fund
5 Asia-Pacifi c Equity Fund
8 Asian Property Fund
10 Emerging Europe, Middle East and Africa Equity Fund
12 Emerging Markets Equity Fund
15 European Equity Alpha Fund
17 European Property Fund
19 European Small Cap Value Fund
21 Eurozone Equity Alpha Fund
23 Global Brands Fund
25 Global Equity Allocation Fund
32 Global Infrastructure Fund
34 Global Opportunity Fund
36 Global Property Fund
39 Indian Equity Fund

41 Japanese Equity Fund
43 Latin American Equity Fund
45 US Advantage Fund
47 US Growth Fund
50 US Property Fund
Bond Funds
52
Emerging Markets Corporate Debt Fund
55 Emerging Markets Debt Fund
58 Emerging Markets Domestic Debt Fund
61 Euro Bond Fund
66 Euro Corporate Bond (ex Financials) Fund
70 Euro Corporate Bond Fund
75 Euro Strategic Bond Fund
82 European Currencies High Yield Bond Fund
86 Global Bond Fund
94 Global Convertible Bond Fund
98 Global Fixed Income Opportunities Fund
103 Global High Yield Bond Fund
106 Short Maturity Euro Bond Fund
Liquidity Funds
110 Euro Liquidity Fund
112 US Dollar Liquidity Fund
Asset Allocation Funds
114 Diversifi ed Alpha Plus Fund
123 Global Balanced Risk Control Fund of Funds
Alternative Investment Funds
125 Absolute Return Currency Fund
STATEMENTS AND NOTES
127 Statement of assets and liabilities

137 Statement of changes in number of shares
143 Statement of operations and changes in net assets
153 Statement of share and net assets statistics
160 Notes to the fi nancial statements
OTHER INFORMATION
170 Directors and service providers
172 Paying and information agents
173 Appendix 1: Fund expense ratios
175 Appendix 2: Portfolio turnover rate
176 Appendix 3: Sub-Advisers
177 Appendix 4: Hedged Share Classes
Table of contents
1 Morgan Stanley Investment Funds 30 June 2012
The annual general meeting of shareholders
ofthe Company is held at the registered offi ce
ofthe Company and will be held on the second
Tuesday of the month of May at 10.30 am,
orif such day is not a bank business day
on the following bank business day.
Notices of all general meetings are sent by mail to all registered
shareholders at their registered address at least 8 days prior
to the meeting. Such notices will indicate the time and place
of the meeting as well as the conditions of admission thereto.
Said notices will also contain the agenda and requirements
of Luxembourg law with regard to the necessary quorum
and majorities at the meeting. To the extent required by law,
further notices will be published in the Mémorial C, Recueil
des Sociétés et Associations du Journal Offi ciel du Grand-Duché
de Luxembourg and in one Luxembourg newspaper.
Audited fi nancial statements in respect of the preceding fi nancial

period are made available at the registered offi ce of the Company
and are available to shareholders upon request. In addition,
unaudited semi-annual reports are also made available
at the registered offi ce.
 e Company’s fi nancial year end is 31 December.
Any other notices relevant to the Company are also published
in a Luxembourg newspaper or mailed to aff ected shareholders.
 e net asset value per share of each Class of Share is available
on each dealing day during Luxembourg business hours
at the registered offi ce of the Company. Net asset value per share
information is also available from market information providers,
such as Bloomberg and Morningstar, as well as being available
at www.morganstanleyinvestmentfunds.com.
No subscriptions can be received on the basis of fi nancial reports
alone. Subscriptions are only valid if made on the basis
of the current prospectus and the latest Key Investor Information
Document if applicable, the latest annual report and the most
recent semi-annual report, if published thereafter.
Morgan Stanley & Co. International plc, London, Zurich Branch,
Bahnhofstrasse 92, 8001 Zurich, is the representative in Switzerland
and RBC Dexia Investor Services Bank S.A., Esch-sur-Alzette,
Zurich Branch, Badenerstrasse 567, 8048 Zurich, is the paying
agent in Switzerland.  e Prospectus, the latest Key Investor
Information Document, the Articles and the annual
and semi-annual reports of the Company may be obtained free
of charge from the representative in Switzerland.
A list of purchases and sales (securities transactions) carried out
by the Company during the reporting period may be obtained free
of charge from the representative in Switzerland.
 e investment aims set out in this annual report are summaries

only.  e complete investment objectives and policies for each
Fund are set out in the Company’s current prospectus.
Shareholders’ information
Please refer to the full prospectus for the Fund’s investment objective and policy.
Morgan Stanley Investment Funds 30 June 2012 2
Asian Equity Fund
Equities
South Korea
Samsung Electronics 13,152 13,810,922 6.69
Hyundai Motor 32,041 6,513,537 3.16
Nexon (Japan) (1) 212,700 4,144,896 2.01
Samsung Electronics Pfd 4,421 2,895,278 1.40
NCSoft 11,428 2,727,852 1.32
Hyundai Heavy Industries 10,758 2,422,126 1.17
Shinhan Financial Group 65,563 2,275,816 1.10
SK Hynix 101,470 2,115,992 1.02
Woongjin Coway 66,594 2,072,874 1.00
Samsung Fire & Marine Insurance 10,408 2,056,665 1.00
KB Financial Group 56,288 1,816,059 0.88
LG Chem 6,797 1,735,354 0.84
Hyundai Engineering & Construction 30,050 1,707,834 0.83
NHN 7,716 1,686,631 0.82
SK C&C 16,652 1,550,615 0.75
Kolao Holdings (Cayman Islands) (1) 116,900 1,420,748 0.69
Cheil Worldwide 85,655 1,363,051 0.66
Cheil Industries 14,892 1,300,788 0.63
Samsung Life Insurance 13,159 1,071,175 0.52
POSCO 3,084 980,182 0.47
Korea Kumho Petrochemical 9,106 955,425 0.46
Amorepacifi c 1,023 951,711 0.46

Korean Air Lines 21,434 942,669 0.46
Korea Aerospace Industries (2) 31,130 800,229 0.39
YG Entertainment 12,704 582,049 0.28
Mando 3,790 560,033 0.27
GS Retail 25,800 539,145 0.26
Orion 405 335,700 0.16
SSCP 82,187 243,248 0.12
E-Mart 841 183,833 0.09
Hyundai Steel 790 58,022 0.03
Total for South Korea 29.94
China
Tencent Holdings (Cayman Islands) (1) 209,700 6,110,219 2.96
China Mengniu Dairy (Cayman Islands) (1) 1,689,000 4,431,431 2.15
PetroChina ‘H’ 3,192,000 4,094,830 1.98
China Construction Bank ‘H’ 5,412,400 3,691,437 1.79
Ping An Insurance Group ‘H’ 459,000 3,651,302 1.77
AIA Group (Hong Kong) (1) 1,048,200 3,581,293 1.73
China Pacifi c Insurance Group ‘H’ 1,115,000 3,579,514 1.73
China Telecom ‘H’ 6,090,000 2,646,044 1.28
Hengan International Group (Cayman Islands) (1) 267,000 2,580,078 1.25
Belle International Holdings (Cayman Islands) (1) 1,205,000 2,038,312 0.99
Tsingtao Brewery ‘H’ (2) 234,000 1,328,959 0.64
Shanghai Pharmaceuticals Holding ‘H’ 964,200 1,202,108 0.58
China Resources Enterprises (Hong Kong) (1) (2) 390,000 1,153,977 0.56
Tingyi Cayman Islands Holding
(Cayman Islands) (1) 444,000 1,134,584 0.55
Trinity (Bermuda) (1) 1,408,000 884,059 0.43
Chow Tai Fook Jewellery Group
(Cayman Islands) (1) (2) 617,600 764,414 0.37
Ajisen China Holdings (Cayman Islands) (1) (2) 1,013,000 696,124 0.34

Total for China 21.10
Taiwan
Taiwan Semiconductor Manufacturing 1,635,362 4,460,078 2.16
Uni-President Enterprises 2,240,206 3,577,115 1.73
Hon Hai Precision Industry 1,048,641 3,144,868 1.52
Asustek Computer 249,355 2,271,046 1.10
Fubon Financial Holding 2,081,054 2,080,356 1.01
Taiwan Cement 1,277,000 1,514,322 0.73
INVESTMENT AIM
To seek long-term capital appreciation,
measured in US dollars, through investment
primarily in the equity securities of companies
domiciled in or exercising the predominant
part of their economic activity in Asia,
excluding Japan, thereby taking advantage
ofthe dynamic economic growth capabilities
of the region.
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net
assets

3 Morgan Stanley Investment Funds 30 June 2012
Asian Equity Fund
STATEMENT OF INVESTMENTS (continued)

Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net
assets

Investments Holdings
Market
value
% of net
assets

MStar Semiconductor (Cayman Islands) (1) 213,000 1,421,905 0.69
Formosa Plastics 522,000 1,397,370 0.68
Taiwan Fertilizer 584,000 1,338,048 0.65
Catcher Technology 138,000 918,920 0.44
Lung Yen Life Service 303,000 869,054 0.42
Chailease Holding (Cayman Islands) (1) 519,000 755,605 0.37
HTC 49,395 645,399 0.31
Wowprime 36,000 535,592 0.26
MediaTek 52,000 476,216 0.23
Foxconn Technology 4,000 14,425 0.01
Total for Taiwan 12.31
Indonesia
PT Bank Mandiri 3,274,000 2,510,415 1.22
PT Astra International 3,378,000 2,464,249 1.19
PT Lippo Karawaci 24,321,000 2,072,077 1.00

PT Bumi Serpong Damai 16,434,400 2,065,239 1.00
PT Kalbe Farma 4,939,000 1,985,594 0.96
PT Bank Tabungan Negara 12,726,000 1,748,300 0.85
PT Indofood Sukses Makmur 3,200,000 1,652,822 0.80
PT Indosat 3,406,500 1,569,022 0.76
Indofood Agri Resources (Singapore) (1) 1,095,000 1,240,095 0.60
PT Tempo Scan Pacifi c 3,225,000 978,834 0.47
PT Delta Dunia Makmur 18,998,400 799,187 0.39
PT Bank Central Asia 662,500 515,043 0.25
PT Ace Hardware Indonesia 144,000 77,444 0.04
Total for Indonesia 9.53
Hong Kong
Wharf Holdings 516,323 2,832,507 1.37
Hutchison Whampoa 277,000 2,374,933 1.15
Samsonite International (Luxembourg) (1) 1,399,200 2,337,947 1.13
Lifestyle International Holdings
(Cayman Islands) (1) 750,000 1,636,106 0.79
BOC Hong Kong Holdings (2) 500,500 1,522,881 0.74
Hongkong Land Holdings (Bermuda) (1) (2) 266,000 1,518,860 0.74
Cheung Kong Holdings 123,000 1,500,190 0.73
Kerry Properties (Bermuda) (1) 266,070 1,133,750 0.55
Hong Kong Exchanges & Clearing (2) 74,000 1,049,480 0.51
Cathay Pacifi c Airways 482,000 774,310 0.37
SmarTone Telecommunications Holdings
(Bermuda) (1) 287,500 552,299 0.27
Total for Hong Kong 8.35
Philippines
Ayala 247,958 2,771,365 1.34
Metro Pacifi c Investments 20,301,000 2,016,560 0.98
Puregold Price Club 2,935,200 1,898,301 0.92

Metropolitan Bank & Trust 809,180 1,782,972 0.86
International Container Terminal Services 655,000 1,146,796 0.56
Cebu Air 477,060 782,978 0.38
DMCI Holdings 394,920 535,277 0.26
Bloomberry Resorts 1,649,400 373,649 0.18
Total for Philippines 5.48
Singapore
DBS Group Holdings (2) 237,500 2,599,736 1.26
Oversea-Chinese Banking (2) 290,300 2,013,840 0.97
Keppel (2) 220,900 1,792,165 0.87
Olam International (2) 974,772 1,392,422 0.67
CapitaLand (2) 621,000 1,323,258 0.64
Wilmar International (2) 403,000 1,148,157 0.56
Total for Singapore 4.97
Thailand
Kasikornbank ‘NVDR’ 335,700 1,720,449 0.83
Land & Houses ‘NVDR’ 6,039,700 1,490,340 0.72
Thai Airways International (Foreign) 1,921,600 1,313,083 0.65
Siam Cement ‘NVDR’ 99,800 997,684 0.48
Bangkok Bank Public ‘NVDR’ 163,600 991,123 0.48
Banpu (Foreign) Regd 65,971 934,989 0.45
Kasikornbank (Foreign) 141,600 739,133 0.36
Bank of Ayudhya ‘NVDR’ 216,400 201,955 0.10
Minor International ‘NVDR’ 378,700 167,725 0.08
Supalai ‘NVDR’ 78,600 42,520 0.02
Minor International ‘NVDR’ 32,000 14,173 0.01
Supalai (Foreign) 13,400 7,376 0.00
Total for Thailand 4.18
Malaysia
CIMB Group Holdings 525,100 1,253,748 0.61

AMMB Holdings 492,900 977,871 0.48
Sime Darby 312,800 975,743 0.47
IJM 355,900 563,513 0.27
UEM Land Holdings 783,000 513,686 0.25
Gamuda 172,100 189,986 0.09
Mah Sing Group BHD 55,500 35,886 0.02
Total for Malaysia 2.19
United States of America
Li & Fung (Bermuda) (1) (2) 434,000 829,254 0.40
Total for United States of America 0.40
Total for Equities 98.45
Mutual Fund
Morgan Stanley Funds - US Dollar
Liquidity Fund (Ireland) (1) (4) 3,330,000 3,330,000 1.62
Total for Mutual Fund 1.62
Total Investment Securities 206,588,760 100.07
Equities (continued)
Equities (continued)
Taiwan (continued)
Morgan Stanley Investment Funds 30 June 2012 4
Asian Equity Fund
DERIVATIVES
OTC and exchange traded derivatives as at 30 June 2012,
expressed in US dollars.
Maturity
date
Amount
bought
Amount
sold

Net unrealised
(loss) as at
30 June 2012
% of net
assets

12/07/2012 2,576,815 USD 205,062,948 JPY (1,623) 0.00
Net Unrealised Loss on Forward Foreign Currency
Exchange Contracts (1,623) 0.00
Total Derivatives (1,623) 0.00
Other Assets less Liabilities (140,152) (0.07)
Total Net Asset Value 206,446,985 100.00
(1) The country in brackets represents the country of incorporation of this security.
(2) All or part of this position is out on loan.
(4) Managed by an affi liate of the Investment Adviser.
5 Morgan Stanley Investment Funds 30 June 2012
Please refer to the full prospectus for the Fund’s investment objective and policy.
Asia-Pacifi c Equity Fund
Equities
Australia
Commonwealth Bank of Australia 63,078 3,428,421 3.58
Australia & New Zealand Banking Group 135,562 3,056,851 3.19
BHP Billiton 70,317 2,263,616 2.36
UGL (2) 156,400 1,986,691 2.07
WorleyParsons 69,688 1,790,414 1.87
Suncorp Group 171,245 1,418,039 1.48
AMP 293,081 1,154,969 1.20
AGL Energy 73,852 1,116,515 1.16
Telstra 270,982 1,023,502 1.07
Santos 83,631 911,672 0.95

Wesfarmers 28,572 874,447 0.91
Total for Australia 19.84
South Korea
Samsung Electronics 4,132 4,339,015 4.53
Hyundai Motor 8,512 1,730,384 1.80
Nexon (Japan) (1) (2) 88,200 1,718,758 1.79
NCSoft 4,897 1,168,909 1.22
Hyundai Heavy Industries 3,933 885,501 0.92
SK Hynix 40,530 845,187 0.88
LG Chem 2,957 754,957 0.79
KB Financial Group 23,285 751,260 0.78
Woongjin Coway 22,350 695,689 0.73
Kolao Holdings (Cayman Islands) (1) 49,770 604,882 0.63
Cheil Worldwide 31,600 502,859 0.53
Samsung Electronics Pfd 749 490,514 0.51
Samsung Life Insurance 6,008 489,066 0.51
Shinhan Financial Group 13,290 461,321 0.48
Hyundai Engineering & Construction 7,731 439,377 0.46
Korea Aerospace Industries 14,660 376,851 0.39
Korean Air Lines 8,352 367,321 0.38
Cheil Industries 3,642 318,122 0.33
Korea Kumho Petrochemical 2,542 266,713 0.28
YG Entertainment 4,703 215,474 0.23
POSCO 666 211,673 0.22
Mando 1,401 207,020 0.22
GS Retail 9,800 204,791 0.21
Samsung Fire & Marine Insurance 874 172,706 0.18
Orion 191 158,318 0.17
SK C&C 1,123 104,572 0.11
E-Mart 280 61,205 0.06

NHN 180 39,346 0.04
Hyundai Steel 370 27,175 0.03
Total for South Korea 19.41
China
Tencent Holdings (Cayman Islands) (1) 64,400 1,876,481 1.96
China Mengniu Dairy (Cayman Islands) (1) (2) 519,000 1,361,701 1.42
AIA Group (Hong Kong) (1) 393,800 1,345,462 1.40
PetroChina ‘H’ 980,000 1,257,185 1.31
China Construction Bank ‘H’ 1,662,000 1,133,539 1.18
Ping An Insurance Group ‘H’ 141,000 1,121,642 1.17
China Pacifi c Insurance Group ‘H’ 342,600 1,099,858 1.15
China Telecom ‘H’ 1,872,000 813,365 0.85
Hengan International Group (Cayman Islands) (1) 82,000 792,383 0.83
Belle International Holdings (Cayman Islands) (1) 370,000 625,872 0.65
Tsingtao Brewery ‘H’ (2) 72,000 408,911 0.43
Shanghai Pharmaceuticals Holding ‘H’ 295,800 368,786 0.39
Trinity (Bermuda) (1) 582,000 365,428 0.38
China Resources Enterprises (Hong Kong) (1) (2) 120,000 355,070 0.37
Tingyi Cayman Islands Holding
(Cayman Islands) (1) (2) 136,000 347,530 0.36
INVESTMENT AIM
To seek long term capital appreciation,
measured in US dollars, through investment
primarily in the equity securities of companies
domiciled in or exercising the predominant
part of their economic activity in the
Asia-Pacifi c region, excluding Japan, thereby
taking advantage of the dynamic economic
growth capabilities of the region.
STATEMENT OF INVESTMENTS

Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net
assets

Morgan Stanley Investment Funds 30 June 2012 6
Asia-Pacifi c Equity Fund
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net
assets

Investments Holdings
Market
value
% of net
assets

Philippines
Metro Pacifi c Investments 13,650,000 1,355,896 1.41
Ayala 91,408 1,021,644 1.07

Puregold Price Club 1,294,500 837,200 0.87
Metropolitan Bank & Trust 374,510 825,207 0.86
International Container Terminal Services 283,000 495,486 0.52
DMCI Holdings 167,720 227,329 0.24
Cebu Air 113,620 186,480 0.19
Bloomberry Resorts 742,500 168,203 0.18
Total for Philippines 5.34
India
HDFC Bank ADR 29,615 956,564 1.00
Tata Motors 118,001 515,902 0.54
Tata Consultancy Services 21,563 496,721 0.52
Glenmark Pharmaceuticals 74,330 486,687 0.51
ITC GDR Regd 98,180 456,844 0.47
IndusInd Bank (3) 70,243 444,430 0.46
ACC 16,662 380,998 0.40
Asian Paints 4,102 287,636 0.30
ITC 7,356 34,343 0.03
Total for India 4.23
Singapore
DBS Group Holdings (2) 57,000 623,937 0.65
Olam International (2) 394,045 562,877 0.59
Oversea-Chinese Banking (2) 72,000 499,471 0.52
Keppel (2) 57,700 468,121 0.49
CapitaLand (2) 190,000 404,861 0.42
Wilmar International (2) 122,000 347,581 0.36
Total for Singapore 3.03
Thailand
Land & Houses ‘NVDR’ 1,916,700 472,960 0.49
Kasikornbank ‘NVDR’ 88,900 455,609 0.47
Kasikornbank (Foreign) 61,900 323,110 0.34

Bangkok Bank Public ‘NVDR’ 51,900 314,421 0.33
Siam Cement ‘NVDR’ (2) 30,300 302,904 0.32
Banpu (Foreign) Regd 20,950 296,919 0.31
Thai Airways International (Foreign) 368,000 251,465 0.26
Bank of Ayudhya ‘NVDR’ 68,700 64,114 0.07
Minor International ‘NVDR’ 120,300 53,281 0.06
Supalai ‘NVDR’ 25,000 13,524 0.01
Minor International ‘NVDR’ 10,100 4,473 0.00
Supalai (Foreign) 4,300 2,367 0.00
Total for Thailand 2.66
Malaysia
CIMB Group Holdings 184,200 439,803 0.46
AMMB Holdings 166,900 331,115 0.34
Sime Darby 105,900 330,343 0.34
IJM 137,400 217,552 0.23
UEM Land Holdings 262,100 171,950 0.18
Gamuda 58,300 64,359 0.07
Mah Sing Group 18,900 12,220 0.01
Total for Malaysia 1.63
United States of America
Li & Fung (Bermuda) (1) (2) 178,000 340,109 0.36
Total for United States of America 0.36
Total for Equities 95.40
Chow Tai Fook Jewellery Group
(Cayman Islands) (1) (2) 189,800 234,919 0.24
Ajisen China Holdings (Cayman Islands) (1) (2) 311,000 213,716 0.22
Total for China 14.31
Taiwan
Uni-President Enterprises 1,017,540 1,624,787 1.70
Taiwan Semiconductor Manufacturing 553,000 1,508,182 1.57

Hon Hai Precision Industry 372,100 1,115,926 1.16
Fubon Financial Holding 770,176 769,918 0.80
Taiwan Cement 569,000 674,745 0.70
Formosa Plastics 218,000 583,576 0.61
MStar Semiconductor (Cayman Islands) (1) 87,000 580,778 0.61
Catcher Technology 84,000 559,342 0.58
Asustek Computer 60,120 547,554 0.57
Chailease Holding (Cayman Islands) (1) 211,000 307,192 0.32
Taiwan Fertilizer 134,000 307,018 0.32
Wowprime 20,000 297,551 0.31
Lung Yen Life Service 87,000 249,530 0.26
HTC 19,000 248,256 0.26
MediaTek 17,000 155,686 0.16
Foxconn Technology 1,000 3,606 0.01
China Steel 2,700 2,536 0.00
Total for Taiwan 9.94
Indonesia
PT Astra International 1,147,500 837,101 0.87
PT Bank Mandiri 1,083,500 830,799 0.87
PT Bumi Serpong Damai 6,095,000 765,932 0.80
PT Kalbe Farma 1,833,500 737,110 0.77
PT Lippo Karawaci 8,263,500 704,026 0.73
PT Indosat 1,486,000 684,446 0.72
PT Bank Tabungan Negara 4,132,500 567,724 0.59
PT Indofood Sukses Makmur 1,086,500 561,185 0.59
PT Bank Central Asia 557,000 433,024 0.45
PT Tempo Scan Pacifi c 1,116,500 338,874 0.35
Indofood Agri Resources (Singapore) (1) 289,000 327,295 0.34
PT Delta Dunia Makmur 6,240,600 262,517 0.27
PT Ace Hardware Indonesia 49,000 26,352 0.03

Total for Indonesia 7.38
Hong Kong
Wharf Holdings 216,000 1,184,959 1.24
Hutchison Whampoa 122,000 1,045,999 1.09
Samsonite International (Luxembourg) (1) 430,200 718,828 0.75
Cheung Kong Holdings 56,000 683,013 0.71
Lifestyle International Holdings
(Cayman Islands) (1) 305,000 665,350 0.69
BOC Hong Kong Holdings (2) 210,500 640,492 0.67
Hongkong Land Holdings (Bermuda) (1) (2) 106,000 605,260 0.63
SmarTone Telecommunications (Bermuda) (1) 302,500 581,114 0.61
Hong Kong Exchanges & Clearing (2) 30,700 435,392 0.45
Kerry Properties (Bermuda) (1) 96,500 411,196 0.43
Total for Hong Kong 7.27
Equities (continued)
Equities (continued)
China (continued)
7 Morgan Stanley Investment Funds 30 June 2012
Asia-Pacifi c Equity Fund
Mutual Fund
Morgan Stanley Funds - US Dollar
Liquidity Fund (Ireland) (1) (4) 1,150,000 1,150,000 1.20
Total for Mutual Fund 1.20
Total Investment Securities 92,637,138 96.60
DERIVATIVES
OTC and exchange traded derivatives as at 30 June 2012,
expressed in US dollars.
Forward Foreign Currency Exchange Contracts
Maturity
date

Amount
bought
Amount
sold
Net unrealised
gain/(loss) as at
30 June 2012
% of net
assets

06/07/2012 427,909 EUR 534,922 USD 7,227 0.01
Unrealised Gain on Forward Foreign Currency
Exchange Contracts 7,227 0.01
12/07/2012 1,053,635 USD 83,848,249 JPY (664) 0.00
Unrealised Loss on Forward Foreign Currency
Exchange Contracts (664) 0.00
Net Unrealised Gain on Forward Foreign Currency
Exchange Contracts 6,563 0.01
Total Derivatives 6,563 0.01
Other Assets less Liabilities 3,249,936 3.39
Total Net Asset Value 95,893,637 100.00
(1) The country in brackets represents the country of incorporation of this security.
(2) All or part of this position is out on loan.
(3) These securities are valued at their fair value. See note 2(a) within the Notes to the Financial
Statements.
(4) Managed by an affi liate of the Investment Adviser.
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.

Investments Holdings
Market
value
% of net
assets

Morgan Stanley Investment Funds 30 June 2012 8
Please refer to the full prospectus for the Fund’s investment objective and policy.
Asian Property Fund
Equities
Hong Kong
Sun Hung Kai Properties 4,068,798 47,815,938 9.54
Kerry Properties (Bermuda) (1) 5,226,713 22,271,527 4.44
Hongkong Land Holdings (Bermuda) (1) 3,892,000 22,223,320 4.43
Hysan Development 5,649,959 21,343,360 4.26
Hang Lung Properties 4,670,000 15,774,952 3.15
Link REIT 3,154,000 12,870,200 2.57
Sino Land 7,825,242 11,723,406 2.34
Henderson Land Development 1,893,695 10,413,074 2.08
New World Development 7,909,872 9,188,490 1.83
Wharf Holdings 1,246,122 6,836,125 1.36
Swire Properties 659,450 1,972,512 0.39
Midland Holdings (Bermuda) (1) 2,512,000 1,208,032 0.24
Total for Hong Kong 36.63
Australia
Westfi eld 4,063,880 39,517,208 7.88
Westfi eld Retail Trust 5,579,491 16,276,507 3.25
GPT Group 4,802,491 16,172,763 3.23
Stockland 4,143,693 13,063,515 2.61
Dexus Property 12,296,023 11,704,945 2.33

Mirvac Group 7,585,084 9,899,023 1.97
Goodman Group 1,896,809 7,125,436 1.42
CFS Retail Property Trust 2,814,679 5,589,235 1.11
Centro Retail Australia REIT 1,913,245 3,877,551 0.77
Investa Offi ce Fund 375,228 1,040,846 0.21
Commonwealth Property Offi ce Fund 997,477 1,036,312 0.21
Total for Australia 24.99
Japan
Mitsubishi Estate 2,441,000 43,516,947 8.68
Mitsui Fudosan 1,853,000 35,643,576 7.11
Sumitomo Realty & Development 1,008,000 24,598,039 4.90
Nippon Building Fund 981 9,509,065 1.89
Japan Real Estate Investment 937 8,611,353 1.72
Tokyo Tatemono 161,000 601,169 0.12
NTT Urban Development 343 275,987 0.06
Total for Japan 24.48
Singapore
CapitaLand 6,128,000 13,057,849 2.60
CapitaMall Trust 4,474,000 6,744,014 1.34
City Developments 577,000 5,100,150 1.02
Global Logistic Properties 1,871,000 3,086,094 0.62
UOL Group 88,000 342,388 0.07
Ascendas Real Estate Investment Trust 182,000 308,815 0.06
Suntec Real Estate Investment Trust 235,000 250,375 0.05
Wheelock Properties Singapore 68,000 92,305 0.02
Total for Singapore 5.78
China
China Resources Land (Cayman Islands) (1) 2,631,000 5,359,544 1.07
Country Garden Holdings (Cayman Islands) (1) 10,604,433 4,142,666 0.83
Agile Property Holdings (Cayman Islands) (1) 3,162,000 4,048,191 0.81

Shimao Property Holdings (Cayman Islands) (1) 1,741,500 2,658,429 0.53
China Overseas Land & Investment
(Hong Kong) (1) 954,080 2,211,691 0.44
Evergrande Real Estate Group
(Cayman Islands) (1) 3,023,000 1,531,724 0.30
Total for China 3.98
INVESTMENT AIM
To seek long-term capital appreciation,
measured in US dollars, through investment
inthe equity securities of companies in the
Asian and Oceanian real estate industry.
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net
assets

9 Morgan Stanley Investment Funds 30 June 2012
Asian Property Fund
STATEMENT OF INVESTMENTS (continued)
Indonesia
Summarecon Agung 4,574,500 789,211 0.16
Total for Indonesia 0.16
Philippines
SM Development 1,144,490 167,666 0.04
Total for Philippines 0.04

Total for Equities 96.06
Mutual Fund
Morgan Stanley Funds - US Dollar Treasury
Liquidity Fund (Ireland) (1) (4) 13,960,000 13,960,000 2.78
Total for Mutual Fund 2.78
Total transferable securities and money market
instruments admitted to offi cial exchange listing
or dealt in on another regulated market 495,551,525 98.84
Other transferable securities and money market instruments
not admitted to offi cial exchange listing or dealt in on another
regulated market. As at 30 June 2012, expressed in US dollars.
Malta
BGP Holdings (Australia) (1) (3) 33,894,130 0 0.00
Total for Malta 0.00
Total other transferable securities and money market
instruments not admitted to offi cial exchange listing
or dealt in on another regulated market 0 0.00
Total Investment Securities 495,551,525 98.84
Other Assets less Liabilities 5,818,583 1.16
Total Net Asset Value 501,370,108 100.00
(1) The country in brackets represents the country of incorporation of this security.
(3) These securities are valued at their fair value. See note 2(a) within the Notes to the Financial
Statements.
(4) Managed by an affi liate of the Investment Adviser.
Other transferable securities and money market instruments
not admitted to offi cial exchange listing or dealt in on another
regulated market. As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value

% of net
assets

Equities (continued)
Morgan Stanley Investment Funds 30 June 2012 10
Please refer to the full prospectus for the Fund’s investment objective and policy.
Equities
South Africa
Naspers ‘N’ 289,474 12,120,437 5.89
Sasol 277,700 9,083,664 4.41
SABMiller (United Kingdom) (1) 205,743 6,553,035 3.18
AngloGold Ashanti 227,580 6,078,291 2.95
Pick n Pay Stores 1,232,316 5,181,344 2.52
AVI 1,071,366 5,098,093 2.48
Aeci 639,032 4,871,601 2.37
Clicks Group 789,452 4,057,256 1.97
Life Healthcare Group 1,083,700 3,233,933 1.57
Harmony Gold Mining 400,400 2,927,266 1.42
Impala Platinum Holdings 208,984 2,667,007 1.30
Northam Platinum 606,555 1,355,063 0.66
Total for South Africa 30.72
Russia
Lukoil ADR 311,160 13,606,113 6.61
Gazprom ADR 1,158,396 8,586,641 4.17
Sberbank 4,022,871 8,424,566 4.09
Eurasia Drilling GDR Regd
(Cayman Islands) (1) 259,847 5,170,483 2.51
EPAM Systems (United States of America) (1) 332,200 4,444,367 2.16
O’Key Group GDR Regd (Luxembourg) (1) 705,063 4,390,818 2.13
Mail.ru Group GDR Regd

(British Virgin Islands) (1) 156,100 4,152,153 2.02
TNK-BP Holding 1,432,200 2,587,923 1.26
Novolipetsk Steel GDR Regd 154,000 1,971,570 0.96
Rosneft Oil GDR Regd 318,230 1,582,422 0.77
Total for Russia 26.68
Poland
Eurocash 860,400 8,210,309 3.99
LPP 7,517 5,812,916 2.82
Jeronimo Martins SGPS (Portugal) (1) 374,670 5,041,185 2.45
Powszechny Zaklad Ubezpieczen 54,469 4,244,226 2.06
Polskie Gornictwo Naftowe i Gazownictwo 3,711,818 3,651,433 1.78
Telekomunikacja Polska 894,043 3,271,228 1.59
TVN 1,045,775 2,143,871 1.04
Total for Poland 15.73
Turkey
Turkiye Garanti Bankasi 2,740,826 8,435,371 4.10
Anadolu Efes Biracilik Ve Malt Sanayii 677,071 6,788,598 3.30
Haci Omer Sabanci Holding 1,533,513 5,160,868 2.50
Turk Telekomunikasyon 1,638,272 5,127,769 2.49
Akbank 1,301,874 3,700,280 1.80
Total for Turkey 14.19
Egypt
Commercial International Bank 1,200,604 4,060,772 1.98
Juhayna Food Industries 5,363,352 3,319,204 1.61
Total for Egypt 3.59
Hungary
Richter Gedeon 47,179 6,121,491 2.97
Total for Hungary 2.97
INVESTMENT AIM
To seek long-term capital appreciation,

measured in Euro, by investing primarily in
equity securities of issuers in Central, Eastern
and Southern Europe (including the Russian
Federation), the Middle East and Africa.
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Emerging Europe, Middle East
and Africa Equity Fund

11 Morgan Stanley Investment Funds 30 June 2012
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Lebanon
Banque Audi sal- Audi Saradar GDR ‘B’ Regd 530,881 2,556,039 1.24

Total for Lebanon 1.24
Romania
Fondul Proprietatea 15,415,698 1,581,801 0.76
Total for Romania 0.76
Total for Equities 95.88
Mutual Fund
Morgan Stanley Funds - US Dollar
Liquidity Fund (Ireland) (1) (4) 6,522,000 5,147,796 2.50
Total for Mutual Fund 2.50
Total Investment Securities 202,519,203 98.38
Other Assets less Liabilities 3,324,906 1.62
Total Net Asset Value 205,844,109 100.00
(1) The country in brackets represents the country of incorporation of this security.
(4) Managed by an affi liate of the Investment Adviser.
Emerging Europe, Middle East
and Africa Equity Fund
Equities (continued)
Morgan Stanley Investment Funds 30 June 2012 12
Please refer to the full prospectus for the Fund’s investment objective and policy.
Emerging Markets Equity Fund
Equities
South Korea
Samsung Electronics 45,576 47,859,383 4.06
Hyundai Motor 104,661 21,276,281 1.80
Nexon (Japan) (1) 590,100 11,499,309 0.98
Samsung Electronics Pfd 15,624 10,232,033 0.87
NCSoft 38,146 9,105,411 0.77
Hyundai Heavy Industries 34,159 7,690,778 0.65
LG Chem 29,078 7,423,954 0.63
Shinhan Financial Group 210,946 7,322,336 0.62

NHN 33,165 7,249,497 0.62
Woongjin Coway 210,160 6,541,660 0.56
Hyundai Engineering & Construction 102,120 5,803,795 0.49
LG Household & Health Care 10,159 5,480,548 0.46
SK C&C 58,705 5,466,541 0.46
Samsung Fire & Marine Insurance 26,801 5,295,992 0.45
Cheil Industries 58,639 5,122,004 0.43
Korean Air Lines 111,594 4,907,911 0.42
KB Financial Group 148,033 4,776,093 0.40
Korea Aerospace Industries (2) 174,830 4,494,187 0.38
SM Entertainment 101,688 4,298,868 0.36
Mando 20,505 3,029,942 0.26
Samsung Life Insurance 36,117 2,940,013 0.25
Cheil Worldwide 175,193 2,787,892 0.24
Hyundai Steel 6,064 445,376 0.04
Total for South Korea 16.20
China
Tencent Holdings (Cayman Islands) (1) 666,700 19,426,241 1.65
China Mengniu Dairy (Cayman Islands) (1) (2) 5,388,000 14,136,499 1.20
PetroChina ‘H’ 9,860,000 12,648,816 1.07
Ping An Insurance Group ‘H’ 1,457,500 11,594,275 0.98
China Construction Bank ‘H’ 16,372,910 11,166,869 0.95
China Pacifi c Insurance Group ‘H’ 3,145,000 10,096,477 0.86
China Telecom ‘H’ 21,870,000 9,502,296 0.81
Hengan International Group
(Cayman Islands) (1) (2) 863,500 8,344,184 0.71
Belle International Holdings
(Cayman Islands) (1) 3,139,000 5,309,762 0.45
China Resources Enterprises (Hong Kong) (1) (2) 1,656,000 4,899,964 0.41
Tsingtao Brewery ‘H’ (2) 848,000 4,816,057 0.41

Shanghai Pharmaceuticals Holding ‘H’ (2) 3,551,300 4,427,552 0.37
Tingyi Cayman Islands Holding
(Cayman Islands) (1) (2) 1,224,000 3,127,771 0.26
Ajisen China Holdings (Cayman Islands) (1) (2) 3,869,000 2,658,740 0.23
Chow Tai Fook Jewellery Group
(Cayman Islands) (1) (2) 1,814,600 2,245,960 0.19
China ZhengTong Auto Services Holdings
(Cayman Islands) (1) (2) 1,092,000 574,424 0.05
Total for China 10.60
Brazil
Companhia de Bebidas das Americas ADR Pfd 391,100 14,943,931 1.27
BRF - Brasil Foods 963,356 14,561,581 1.23
Banco Bradesco Pfd 761,600 11,300,577 0.96
Cielo 299,680 8,848,714 0.75
Petroleo Brasileiro Pfd 912,632 8,190,983 0.69
Ultrapar Participacoes 352,520 7,873,960 0.67
Petroleo Brasileiro ADR 381,100 7,069,405 0.60
Vale ADR 325,100 6,414,223 0.54
Vale Pfd ‘A’ 205,732 3,974,345 0.34
PDG Realty - Empreendimentos e Participacoes 1,912,200 3,354,737 0.28
Companhia de Bebidas das Americas Pfd 80,200 3,058,872 0.26
Petroleo Brasileiro 277,123 2,570,989 0.22
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net

assets

INVESTMENT AIM
To seek to maximise total return, measured
inUS dollars, through investment primarily
inemerging country equity securities.
TheFund will invest in those emerging market
countries in which the Company believes
thateconomies are developing strongly
andinwhich the markets are becoming more
sophisticated.
13 Morgan Stanley Investment Funds 30 June 2012
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net
assets

Vale ADR Pfd 118,312 2,284,605 0.19
Raia Drogasil 180,000 1,784,121 0.15
Petroleo Brasileiro ADR Pfd 75,762 1,358,413 0.12
Vale 21,276 420,817 0.04
Cia de Bebidas das Americas 195 7,437 0.00
Total for Brazil 8.31
India
HDFC Bank 1,183,876 12,030,896 1.02

ITC 2,018,541 9,423,862 0.80
Tata Motors 2,009,572 8,785,876 0.74
Tata Consultancy Services 296,171 6,822,534 0.58
Dr. Reddy’s Laboratories 221,599 6,586,032 0.56
ACC 271,030 6,197,450 0.52
Tata Steel 750,606 5,975,205 0.51
IndusInd Bank (3) 938,951 5,940,777 0.50
Glenmark Pharmaceuticals 861,177 5,638,687 0.48
Asian Paints 78,835 5,527,975 0.47
Yes Bank 879,012 5,379,798 0.46
Larsen & Toubro 168,520 4,247,719 0.36
Reliance Industries 228,098 3,034,931 0.26
Jindal Steel & Power 34,788 295,060 0.02
Total for India 7.28
Taiwan
Taiwan Semiconductor Manufacturing 7,878,673 21,487,290 1.82
Hon Hai Precision Industry 3,403,513 10,207,114 0.86
Uni-President Enterprises 5,054,522 8,070,958 0.68
Asustek Computer 734,026 6,685,275 0.57
MStar Semiconductor (Cayman Islands) (1) 825,000 5,507,380 0.47
Catcher Technology 741,000 4,934,200 0.42
Taiwan Cement 3,854,000 4,570,242 0.39
Fubon Financial Holding 3,968,889 3,967,558 0.34
Formosa Plastics 1,434,000 3,838,752 0.32
Chailease Holding (Cayman Islands) (1) 2,349,000 3,419,879 0.29
Lung Yen Life Service 821,000 2,354,764 0.20
HTC 167,203 2,184,689 0.19
MediaTek 170,000 1,556,860 0.13
Advanced Semiconductor Engineering 1,003,000 822,655 0.07
Foxconn Technology 6,000 21,637 0.00

Total for Taiwan 6.75
South Africa
SABMiller (United Kingdom) (1) (2) 364,723 14,717,704 1.25
Naspers ‘N’ 251,048 13,317,568 1.13
Clicks Group 1,181,100 7,690,469 0.65
Pick n Pay Stores 1,291,477 6,879,653 0.58
AVI 1,047,400 6,314,543 0.54
Sasol 120,200 4,981,373 0.42
Life Healthcare Group Holdings 927,700 3,507,430 0.30
AngloGold Ashanti 95,261 3,223,458 0.27
AngloGold Ashanti ADR 29,970 1,018,680 0.09
Total for South Africa 5.23
Philippines
Metropolitan Bank & Trust 6,058,419 13,349,303 1.13
Philippine Long Distance Telephone 209,590 13,230,431 1.12
SM Investments 708,780 12,325,141 1.04
Metro Pacifi c Investments 117,166,000 11,638,452 0.99
Ayala 675,042 7,544,776 0.64
Bloomberry Resorts 9,150,000 2,072,808 0.18
DMCI Holdings 316,640 429,176 0.04
Total for Philippines 5.14
Indonesia
PT Astra International 16,497,500 12,034,917 1.02
PT Lippo Karawaci 120,140,000 10,235,570 0.87
PT Telekomunikasi Indonesia 10,989,000 9,537,843 0.81
PT Bank Mandiri 11,681,000 8,956,677 0.76
PT Indofood Sukses Makmur 11,589,500 5,986,057 0.51
PT Kalbe Farma 14,276,500 5,739,488 0.48
PT Indosat 12,336,500 5,682,147 0.48
PT Bank Central Asia 2,454,500 1,908,184 0.16

Total for Indonesia 5.09
Mexico
Wal-Mart de Mexico ‘V’ 6,648,900 17,513,159 1.48
Fomento Economico Mexicano ADR 195,700 17,317,493 1.47
Grupo Televisa ADR ‘CPO’ 341,100 7,323,417 0.62
Mexichem 1,356,408 5,790,700 0.49
Alfa ‘A’ 274,500 4,457,771 0.38
Total for Mexico 4.44
Turkey
Turkiye Garanti Bankasi 4,985,477 19,439,671 1.65
Anadolu Efes Biracilik Ve Malt Sanayii 1,013,869 12,879,149 1.09
Haci Omer Sabanci Holding 1,817,910 7,751,168 0.66
Turk Telekomunikasyon 1,772,209 7,027,759 0.59
Total for Turkey 3.99
Thailand
Land & Houses ‘NVDR’ 40,814,000 10,071,155 0.85
Kasikornbank ‘NVDR’ (2) 1,487,816 7,624,998 0.65
Banpu (Foreign) Regd 490,550 6,952,433 0.59
PTT (Foreign) 451,400 4,612,534 0.39
Siam Cement ‘NVDR’ (2) 456,947 4,568,024 0.39
Kasikornbank (Foreign) 856,747 4,472,106 0.38
Thai Airways International (Foreign) 5,599,900 3,826,569 0.33
Bank of Ayudhya ‘NVDR’ 1,059,700 988,964 0.08
Supalai ‘NVDR’ 385,200 208,381 0.02
Supalai (Foreign) 65,500 36,055 0.00
Total for Thailand 3.68
Poland
Jeronimo Martins SGPS (Portugal) (1) (2) 775,954 13,227,542 1.12
Telekomunikacja Polska (2) 2,320,892 10,758,872 0.91
Powszechny Zaklad Ubezpieczen 100,248 9,896,561 0.84

Polskie Gornictwo Naftowe i Gazownictwo (2) 5,190,069 6,468,584 0.55
Total for Poland 3.42
Russia
Lukoil ADR 347,753 19,265,516 1.63
Rosneft Oil GDR Regd 1,369,559 8,628,222 0.73
Gazprom ADR 821,718 7,717,000 0.66
Eurasia Drilling GDR Regd
(Cayman Islands) (1) (2) 155,028 3,908,256 0.33
Total for Russia 3.35
Investments Holdings
Market
value
% of net
assets

Equities (continued)
Philippines (continued)
Equities (continued)
Brazil (continued)
Emerging Markets Equity Fund
Morgan Stanley Investment Funds 30 June 2012 14
Investments Holdings
Market
value
% of net
assets

STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.

As at 30 June 2012, expressed in US dollars.
Investments Holdings
Market
value
% of net
assets

Malaysia
Axiata Group 6,205,900 10,706,915 0.91
CIMB Group Holdings 3,712,600 8,864,338 0.75
Sime Darby 2,310,700 7,207,956 0.61
AirAsia 4,919,500 5,539,383 0.47
Gamuda 626,100 691,169 0.06
Total for Malaysia 2.80
Chile
SACI Falabella 828,553 7,599,600 0.64
Sociedad Quimica y Minera de Chile ADR 125,300 6,964,174 0.59
Banco Santander Chile ADR 79,600 6,127,608 0.52
Cencosud 1,068,387 5,870,258 0.50
Empresa Nacional de Electricidad 3,235,793 5,420,845 0.46
Cencosud Rights 21/07/2012 114,667 37,734 0.00
Total for Chile 2.71
United States of America
Mead Johnson Nutrition 151,415 12,356,978 1.05
Yum! Brands 193,875 12,121,065 1.03
Total for United States of America 2.08
Peru
Credicorp (Bermuda) (1) 90,210 11,296,998 0.96
Cia de Minas Buenaventura ADR 205,217 7,798,246 0.66
Total for Peru 1.62

Hungary
Richter Gedeon (2) 59,925 9,850,903 0.84
Total for Hungary 0.84
Hong Kong
Samsonite International (Luxembourg) (1) 4,913,100 8,209,382 0.70
Total for Hong Kong 0.70
Qatar
Industries Qatar 172,900 5,935,543 0.50
Total for Qatar 0.50
Switzerland
Swatch Group ‘Bearer’ 14,372 5,662,775 0.48
Total for Switzerland 0.48
Total for Equities 95.21
Mutual Funds
Morgan Stanley Funds - US Dollar
Liquidity Fund (Ireland) (1) (4) 35,610,000 35,610,000 3.02
Morgan Stanley Growth Fund (India) (1) (4) 5,372,744 5,244,372 0.44
Total for Mutual Funds 3.46
Total transferable securities and money market
instruments admitted to offi cial exchange listing
or dealt in on another regulated market 1,163,729,605 98.67
Other transferable securities and money market instruments
not admitted to offi cial exchange listing or dealt in on another
regulated market. As at 30 June 2012, expressed in US dollars.
Brazil
Lojas Arapua Pfd (3) 11,491,000 0 0.00
Banco Nacional Pfd (3) 30,754,160 0 0.00
Total for Brazil 0.00
Russia
Alliance Celluose (United States of America) (1) (3) 50,000 0 0.00

Total for Russia 0.00
Total other transferable securities and money market
instruments not admitted to offi cial exchange listing
or dealt in on another regulated market 0 0.00
Total Investment Securities 1,163,729,605 98.67
DERIVATIVES
OTC and exchange traded derivatives as at 30 June 2012,
expressed in US dollars.
Forward Foreign Currency Exchange Contracts
Maturity
date
Amount
bought
Amount
sold
Net unrealised
gain as at
30 June 2012
% of net
assets

05/07/2012 6,424,804 USD 503,222,757 JPY 97,965 0.01
Net Unrealised Gain on Forward Foreign Currency
Exchange Contracts 97,965 0.01
Total Derivatives 97,965 0.01
Other Assets less Liabilities 15,565,243 1.32
Total Net Asset Value 1,179,392,813 100.00
(1) The country in brackets represents the country of incorporation of this security.
(2) All or part of this position is out on loan.
(3) These securities are valued at their fair value. See note 2(a) within the Notes to the Financial

Statements.
(4) Managed by an affi liate of the Investment Adviser.
Equities (continued)
Emerging Markets Equity Fund
15 Morgan Stanley Investment Funds 30 June 2012
Please refer to the full prospectus for the Fund’s investment objective and policy.
European Equity Alpha Fund
Equities
United Kingdom
HSBC Holdings 2,838,048 19,887,266 4.42
Vodafone Group 8,583,007 19,058,107 4.24
Royal Dutch Shell ‘A’ 697,895 18,641,455 4.14
British American Tobacco 426,181 17,269,469 3.84
GlaxoSmithKline 891,018 15,995,337 3.56
BP 3,035,503 15,881,776 3.53
BG Group 915,503 14,757,394 3.28
Rolls-Royce Holdings 1,216,666 13,031,146 2.90
Imperial Tobacco Group 422,180 12,899,763 2.87
Reckitt Benckiser Group 260,361 10,885,438 2.42
Prudential 1,174,918 10,749,565 2.39
Anglo American 373,816 9,746,645 2.17
Experian (Jersey) (1) 798,516 8,917,211 1.98
Tullow Oil 468,136 8,577,736 1.91
Xstrata 770,897 7,742,179 1.72
Barclays 3,523,401 7,334,962 1.63
WM Morrison Supermarkets 2,141,287 7,063,523 1.57
Total for United Kingdom 48.57
Switzerland
Nestlé Regd 509,649 23,950,624 5.33
Novartis Regd 387,669 17,089,689 3.80

Roche Holding ‘Genusschein’ 114,645 15,609,932 3.47
Zurich Insurance Group 55,779 9,900,619 2.20
Total for Switzerland 14.80
Germany
Siemens Regd 184,293 12,157,809 2.70
Bayer Regd 197,101 11,114,525 2.47
Fresenius & Co. 126,931 10,377,878 2.31
Daimler Regd 274,195 9,642,067 2.15
Muenchener Rueckversicherungs Regd 75,724 8,382,647 1.86
MAN 76,865 6,149,969 1.37
Total for Germany 12.86
France
Schneider Electric 190,500 8,232,457 1.83
BNP Paribas 275,418 8,174,406 1.82
SES (Luxembourg) (1) 370,497 6,872,719 1.53
Accor 252,881 6,208,228 1.38
Société Générale 339,693 6,139,951 1.36
Total for France 7.92
Spain
Amadeus IT Holding ‘A’ (2) 546,748 9,004,939 2.00
Banco Bilbao Vizcaya Argentaria 1,548,794 8,516,818 1.90
Total for Spain 3.90
Netherlands
Reed Elsevier 927,239 8,406,349 1.87
ArcelorMittal (Luxembourg) (1) 497,865 5,964,423 1.32
Total for Netherlands 3.19
INVESTMENT AIM
To seek long-term capital growth, measured
in Euro, through investment primarily in
aconcentrated portfolio of equity securities

of European companies listed onEuropean
Stock Exchanges.
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets


Morgan Stanley Investment Funds 30 June 2012 16
European Equity Alpha Fund
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Finland
Kone ‘B’ (2) 168,611 8,017,453 1.78
Total for Finland 1.78
Belgium
Umicore 216,553 7,815,398 1.74

Total for Belgium 1.74
Sweden
Millicom International Cellular SDR (Luxembourg) (1) 83,478 6,152,923 1.37
Total for Sweden 1.37
Portugal
Galp Energia SGPS ‘B’ 561,633 5,546,126 1.23
Total for Portugal 1.23
Total for Equities 97.36
Mutual Fund
Morgan Stanley Funds -
Euro Liquidity Fund (Ireland) (1) (4) 11,300,000 11,300,000 2.51
Total for Mutual Fund 2.51
Total transferable securities and money market
instruments admitted to offi cial exchange listing
or dealt in on another regulated market 449,166,921 99.87
Other transferable securities and money market instruments
not admitted to offi cial exchange listing or dealt in on another
regulated market. As at 30 June 2012, expressed in Euro.
United Kingdom
Rolls-Royce Holdings Pfd ‘C’ (3) 126,490,330 156,602 0.03
Total for United Kingdom 0.03
Total other transferable securities and money market
instruments not admitted to offi cial exchange listing
or dealt in on another regulated market 156,602 0.03
Total Investment Securities 449,323,523 99.90
Equities (continued)
DERIVATIVES
OTC and exchange traded derivatives as at 30 June 2012,
expressed in Euro.
Forward Foreign Currency Exchange Contracts

Maturity
date
Amount
bought
Amount
sold
Net unrealised
(loss) as at
30 June 2012
% of net
assets

06/07/2012 64,790,891 GBP 81,053,253 EUR (840,805) (0.19)
13/07/2012 43,319,721 EUR 35,070,000 GBP (94,716) (0.02)
Net Unrealised Loss on Forward Foreign Currency
Exchange Contracts (935,521) (0.21)
Total Derivatives (935,521) (0.21)
Other Assets less Liabilities 1,404,950 0.31
Total Net Asset Value 449,792,952 100.00
(1) The country in brackets represents the country of incorporation of this security.
(2) All or part of this position is out on loan.
(3) These securities are valued at their fair value. See note 2(a) within the Notes to the Financial
Statements.
(4) Managed by an affi liate of the Investment Adviser.
17 Morgan Stanley Investment Funds 30 June 2012
Please refer to the full prospectus for the Fund’s investment objective and policy.
European Property Fund
United Kingdom
Land Securities Group 1,178,743 10,868,473 5.86
Hammerson 1,715,258 9,462,667 5.10

British Land 1,311,306 8,304,024 4.48
Unite Group (2) 2,142,241 5,039,191 2.72
LXB Retail Properties (Jersey) (1) 3,361,559 4,577,964 2.47
Capital Shopping Centres Group 1,040,862 4,168,755 2.25
ST Modwen Properties 1,850,382 3,682,572 1.99
Safestore Holdings 2,875,128 3,586,255 1.93
Derwent London (2) 147,901 3,380,195 1.82
Big Yellow Group 866,342 3,013,940 1.63
Segro 1,045,473 2,789,324 1.50
Great Portland Estates 517,211 2,515,232 1.36
Grainger 2,122,256 2,359,462 1.27
Metric Property Investments 1,662,237 1,708,087 0.92
Capital & Regional (2) 4,941,784 1,566,256 0.84
Shaftesbury 223,301 1,412,702 0.76
Capital & Counties Properties (2) 536,734 1,398,118 0.75
Quintain Estates & Development 2,982,724 1,368,613 0.74
Development Securities 293,444 493,178 0.27
Total for United Kingdom 38.66
France
Unibail-Rodamco 128,926 18,565,344 10.01
Klepierre (2) 328,334 8,454,600 4.56
Gecina 96,954 6,811,018 3.67
ICADE (2) 94,939 5,665,959 3.05
Foncière des Regions 67,635 3,798,382 2.05
Mercialys 204,795 2,950,072 1.59
Altarea 22,327 2,277,354 1.23
SILIC (Société Immobilière de Location
pour l’Industrie et le Commerce) 21,504 1,598,822 0.86
Société de la Tour Eiffel 20,397 771,007 0.42
Total for France 27.44

Switzerland
PSP Swiss Property Regd 122,028 8,449,693 4.55
Swiss Prime Site Regd 36,770 2,411,529 1.30
Mobimo Holding Regd 9,676 1,756,899 0.95
Total for Switzerland 6.80
Sweden
Hufvudstaden ‘A’ 569,938 4,766,598 2.57
Atrium Ljungberg ‘B’ 471,628 4,404,486 2.37
Castellum (2) 205,635 1,947,386 1.05
Fabege 116,705 720,383 0.39
Total for Sweden 6.38
Netherlands
Corio 152,509 5,271,474 2.84
Eurocommercial Properties ‘CVA’ (2) 160,840 4,382,890 2.36
Wereldhave 22,872 1,155,951 0.63
Total for Netherlands 5.83
Germany
Alstria Offi ce REIT 454,233 3,792,846 2.04
Prime Offi ce REIT 505,937 1,596,231 0.86
GSW Immobilien (2) 33,634 904,923 0.49
Deutsche Wohnen 30,900 403,090 0.22
Total for Germany 3.61
INVESTMENT AIM
To seek long-term capital appreciation,
measured in Euro, through investment
intheequity securities of companies
intheEuropean real estate industry.
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.

As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Morgan Stanley Investment Funds 30 June 2012 18
European Property Fund
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Austria
Atrium European Real Estate (Jersey) (1) 1,428,345 5,099,192 2.75
Conwert Immobilien Invest 76,935 664,564 0.36
Total for Austria 3.11
Finland
Sponda 785,078 2,261,025 1.22
Citycon 550,584 1,205,779 0.65
Total for Finland 1.87
Italy
Beni Stabili 10,044,844 3,387,121 1.83
Total for Italy 1.83

Belgium
Cofi nimmo 12,398 1,072,427 0.58
Befi mmo 9,079 402,881 0.22
Total for Belgium 0.80
Norway
Norwegian Property 1,020,924 1,090,338 0.58
Total for Norway 0.58
Total Investment Securities 179,735,272 96.91
Other Assets less Liabilities 5,726,689 3.09
Total Net Asset Value 185,461,961 100.00
(1) The country in brackets represents the country of incorporation of this security.
(2) All or part of this position is out on loan.
19 Morgan Stanley Investment Funds 30 June 2012
Please refer to the full prospectus for the Fund’s investment objective and policy.
European Small Cap Value Fund
United Kingdom
Invensys 194,171 531,270 4.07
Inchcape 101,137 414,204 3.18
Informa (Jersey) (1) 76,745 362,385 2.78
Hays 398,939 359,317 2.75
Britvic 85,810 349,839 2.68
SIG 277,834 336,062 2.58
Cookson Group 37,844 275,026 2.11
Hammerson 36,762 202,807 1.55
Smurfi t Kappa Group (Ireland) (1) 35,294 187,588 1.44
Howden Joinery Group 107,567 170,063 1.30
Rexam 29,568 153,880 1.18
Chemring Group 44,260 150,930 1.16
Premier Foods 136,426 145,256 1.11
Rentokil Initial 153,208 139,130 1.07

Bodycote 30,965 126,586 0.97
Dairy Crest Group 30,295 124,973 0.96
Premier Oil 24,818 103,731 0.80
Keller Group 19,718 88,029 0.67
ITE Group 34,021 81,839 0.63
Aegis Group 33,569 67,120 0.51
Hiscox (Bermuda) (1) 12,180 64,254 0.49
TT Electronics 6,191 11,574 0.09
Wincanton 15,978 8,271 0.06
Total for United Kingdom 34.14
Germany
Rheinmetall 11,731 453,110 3.47
Draegerwerk & Co. Pfd 5,264 409,381 3.14
GEA Group 18,255 381,073 2.92
Gerresheimer 1,779 66,134 0.51
Kontron 11,155 53,990 0.41
Total for Germany 10.45
Norway
Storebrand 141,777 433,559 3.32
Petroleum Geo-Services 44,124 420,604 3.22
TGS Nopec Geophysical 11,210 233,495 1.79
Schibsted 3,150 80,155 0.62
Fred Olsen Energy 447 12,554 0.10
Total for Norway 9.05
France
Wendel 7,566 439,963 3.38
Eurofi ns Scientifi c 3,004 293,461 2.25
Euler Hermes 4,583 231,121 1.77
Alten 4,684 102,158 0.78
Sa des Ciments Vicat 1,062 40,595 0.31

Legrand 154 4,104 0.03
Total for France 8.52
Switzerland
Rieter Holding Regd 3,285 376,515 2.88
Kuoni Reisen Holding Regd ‘B’ 1,362 323,147 2.48
Bucher Industries Regd 1,659 208,639 1.60
Burckhardt Compression Holding 148 30,123 0.23
Total for Switzerland 7.19
Denmark
Jyske Bank Regd 14,292 304,186 2.33
D/S Norden 12,193 254,590 1.95
INVESTMENT AIM
To provide an attractive rate of return,
measured in Euro, by investing primarily
inthe common stocks of small sized
European corporations with a market
capitalisation of up to US $5 billion
(orequivalent) that the Company believes
tobe undervalued relative to the stock
market in general at the time of purchase.
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Morgan Stanley Investment Funds 30 June 2012 20
European Small Cap Value Fund
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Sydbank 14,725 188,199 1.44
SimCorp 511 68,335 0.53
Total for Denmark 6.25
Finland
Stora Enso ‘R’ 85,045 406,005 3.11
Konecranes 9,263 192,300 1.48
Rautaruukki 28,199 139,980 1.07
Total for Finland 5.66
Netherlands
Randstad Holding 16,039 371,864 2.85
Nutreco 4,946 273,266 2.09
Total for Netherlands 4.94
Italy
Brembo 38,469 296,404 2.27
Azimut Holding 32,013 253,223 1.94
Prysmian 8,127 95,167 0.73
Total for Italy 4.94
Ireland

Kerry Group ‘A’ 9,089 313,434 2.40
Total for Ireland 2.40
Sweden
Clas Ohlson ‘B’ 12,308 135,516 1.04
Total for Sweden 1.04
Austria
Atrium European Real Estate (Jersey) (1) 35,994 128,499 0.99
Total for Austria 0.99
Spain
Miquel y Costas & Miquel 3,091 63,520 0.49
Antena 3 de Television 5,508 18,672 0.14
Grifols 910 18,223 0.14
Grifols ‘B’ 846 12,546 0.10
Red Electrica 347 11,895 0.09
Total for Spain 0.96
Total Investment Securities 12,593,839 96.53
Other Assets less Liabilities 452,387 3.47
Total Net Asset Value 13,046,226 100.00
(1) The country in brackets represents the country of incorporation of this security.
Denmark (continued)
21 Morgan Stanley Investment Funds 30 June 2012
Please refer to the full prospectus for the Fund’s investment objective and policy.
Eurozone Equity Alpha Fund
Equities
Germany
Siemens Regd 70,461 4,648,312 5.03
Bayer Regd 71,203 4,015,137 4.34
Allianz Regd 43,032 3,393,934 3.67
Daimler Regd 92,085 3,238,169 3.50
Muenchener Rueckversicherungs Regd 27,745 3,071,371 3.32

Fresenius & Co. 35,697 2,918,587 3.16
Henkel & Co Pfd 48,378 2,522,913 2.73
MAN 23,275 1,862,233 2.01
Hamburger Hafen und Logistik (2) 74,444 1,493,719 1.62
Total for Germany 29.38
France
Pernod-Ricard (2) 39,276 3,287,401 3.56
BNP Paribas 102,880 3,053,478 3.30
Schneider Electric 65,981 2,851,369 3.08
Safran 95,308 2,798,243 3.03
AXA 264,378 2,754,819 2.98
SES (Luxembourg) (1) 126,971 2,355,312 2.55
Accor 74,181 1,821,144 1.97
Société Générale 88,197 1,594,161 1.72
Faurecia 105,208 1,369,808 1.48
Total for France 23.67
Netherlands
Unilever ‘CVA’ 169,985 4,496,103 4.87
Koninklijke Ahold 279,247 2,735,224 2.96
Reed Elsevier 227,694 2,064,274 2.23
ArcelorMittal (Luxembourg) (1) 161,525 1,935,069 2.09
Total for Netherlands 12.15
Spain
Banco Bilbao Vizcaya Argentaria (2) 573,099 3,151,471 3.41
Telefonica 284,855 2,912,642 3.15
Amadeus IT Holding ‘A’ (2) 139,380 2,295,589 2.48
Total for Spain 9.04
Italy
ENI 243,445 4,050,925 4.38
Azimut Holding (2) 265,048 2,096,530 2.27

Ansaldo STS (2) 261,593 1,474,077 1.59
Total for Italy 8.24
United Kingdom
Royal Dutch Shell ‘A’ 90,645 2,420,221 2.62
Imperial Tobacco Group 77,811 2,377,525 2.57
Total for United Kingdom 5.19
Finland
Kone ‘B’ 55,383 2,633,462 2.85
Total for Finland 2.85
Ireland
CRH 165,485 2,516,199 2.72
Total for Ireland 2.72
INVESTMENT AIM
To seek attractive long-term capital growth,
measured in Euro, through investment primarily
in a concentrated portfolio of equity securities
of companies domiciled or exercising the
predominant part of their economic activity
inthe Eurozone (being those member states
ofthe European Union which have adopted
theEuro as their national currency).
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Morgan Stanley Investment Funds 30 June 2012 22
Eurozone Equity Alpha Fund
STATEMENT OF INVESTMENTS (continued)
Transferable securities and money market instruments admitted
to offi cial exchange listing or dealt in on another regulated market.
As at 30 June 2012, expressed in Euro.
Investments Holdings
Market
value
% of net
assets

Belgium
Umicore 53,910 1,945,612 2.10
Total for Belgium 2.10
Portugal
Galp Energia SGPS ‘B’ 179,760 1,775,130 1.93
Total for Portugal 1.93
Total for Equities 97.27
Mutual Fund
Morgan Stanley Funds -
Euro Liquidity Fund (Ireland) (1) (4) 1,700,000 1,700,000 1.84
Total for Mutual Fund 1.84
Total Investment Securities 91,630,163 99.11
Other Assets less Liabilities 822,878 0.89
Total Net Asset Value 92,453,041 100.00
(1) The country in brackets represents the country of incorporation of this security.
(2) All or part of this position is out on loan.

(4) Managed by an affi liate of the Investment Adviser.
Equities (continued)