UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number		811-03692
Morgan Stanley Variable Investment Series
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York			10036
(Address of principal executive offices)			(Zip code)
Ronald E. Robison 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant's telephone number, including area code:		212-296-6990
Date of fiscal year end:	December 31, 2008
Date of reporting period:	March 31, 2008

Item 1.  Schedule of Investments.

The Fund’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:

Morgan Stanley Variable Investment Series - Money Market Portfolio

Portfolio of Investments · March 31, 2008 (unaudited)

			ANNUALIZED
PRINCIPAL			YIELD
AMOUNT IN			ON DATE OF	MATURITY
THOUSANDS			PURCHASE	DATE	VALUE
		Commercial Paper (45.7%)
		Asset-Backed - Auto (2.6%)
$	1,000	DaimlerChrysler Revolving Auto Conduit LLC Series I	3.21%	5/08/08	$	996,732
4,000		FCAR Owner Trust	3.21-3.46	05/09/08-05/15/08	3,984,811
1,000		New Center Asset Trust	3.76	4/04/08	999,688
					5,981,230
		Asset-Backed - Consumer (9.5%)
3,150		CAFCO LLC*	3.35	4/18/08	3,145,062
8,900		CRC Funding LLC.*	3.13-3.29	04/25/08-05/29/08	8,866,649
1,000		Gemini Securitization Corp., LLC*	3.12	5/08/08	996,814
2,000		Old Line Funding LLC*	3.21	5/02/08	1,994,506
3,000		Park Avenue Red Co LLC*	3.15	4/01/08	3,000,000
3,000		Ranger Funding Co., LLC*	3.24-4.15	04/23/08-04/25/08	2,992,566
1,000		Thunder Bay Funding LLC*	3.30	4/18/08	998,451
					21,994,047
		Asset-Backed - Corporate (1.8%)
4,000		CIESCO LLC*	3.12-4.35	04/14/08-05/07/08	3,989,498
		Asset-Backed - Diversified (2.6%)
6,000		Liberty Street Funding LLC*	2.97-3.07	05/28/08-05/29/08	5,971,101
		Asset-Backed - Mortgage (0.4%)
1,000		Cancara Asset Securities LLC*	3.17-3.95	04/21/08-05/23/08	997,828
		Asset-Backed - Securities (4.5%)
3,394		Amstel Funding Corp.*	3.07-4.02	04/21/08-06/27/08	3,376,161
3,000		Cancara Asset Securities LLC*	3.17-3.95	04/21/08-05/23/08	1,990,900
5,000		Solitaire Funding LLC*	3.27	6/05/08	4,970,750
					10,337,811
		Banking (2.6%)
6,000		Citigroup Funding Inc.	3.26-4.85	04/11/08-05/08/08	5,985,612
		Finance-Auto (0.7%)
1,500		Toyota Motor Credit Corp.	3.61	6/16/08	1,488,727
		Financial Conglomerates (1.9%)
4,500		General Electric Capital Corp.	2.50-4.01	07/07/08-12/08/08	4,439,213
		International Banks (18.7%)
3,000		Barclays U.S. Funding LLC	3.05-3.12	05/09/08-08/27/08	2,981,112
3,000		Bank of Ireland	3.20	4/25/08	2,993,640
6,000		DnB NOR Bank ASA	2.15-4.72	04/03/08-05/30/08	5,983,883
2,950		KBC Financial Products International Ltd.*	3.44-4.90	05/07/08-05/23/08	2,935,344
6,500		Royal Bank of Scotland GP	2.92-4.92	04/28/08-08/14/08	6,446,271
500		Royal Bank of Scotland plc	3.44-4.90	05/07/08-05/23/08	497,468
3,000		Santander Central Hispano Finance (Delaware) Inc.	4.73-4.74	05/07/08-06/02/08	2,979,405
6,000		Societe General N.A., Inc.	3.16-3.39	04/30/08-05/16/08	5,966,489
5,000		Swedbank Mortgage AB	3.07-4.32	04/09/08-05/02/08	4,992,859
7,325		UBS Finance (Delaware) LLC	3.20-4.96	04/30/08-07/18/08	7,280,854
					43,057,325
		Investment Banks/Brokers (0.4%)
1,000		Goldman Sachs Group Inc.	4.00	5/23/08	994,294
		Total Commercial Paper
		(Cost $105,236,686)			105,236,686
		Certificate of Deposit (37.3%)
		Domectic Banks (1.3%)
3,000		Wachovia Bank, NA	3.03-4.90	04/30/08-07/11/08	3,006,442

	International Banks (36.0%)
5,000	Banco Santander SA	3.00-3.05	07/31/08-08/22/08		5,000,133
5,000	Bank of Montreal - Chicago	3.00-5.09	04/18/08-07/17/08		5,004,295
9,000	Bank of Scotland - NY	2.65-4.91	06/05/08-09/12/08		9,000,000
7,500	Barclays Bank plc	2.95-5.37	04/10/08-11/24/08		7,501,414
10,000	BNP Paribas	2.96-4.88	04/24/08-07/09/08		10,010,271
2,000	Canadian Imperial Bank of Commerce	4.70	4/30/08		1,999,916
2,000	Calyon	3.03	7/25/08		2,000,000
3,000	Deutsche Bank AG	2.81	6/23/08		3,000,000
9,000	Fortis Bank - NY	2.71-3.15	05/28/08-07/28/08		9,000,000
9,000	NATIXIS	2.71-3.11	05/01/08-08/04/08		9,001,552
1,000	Royal Bank of Scotland plc	4.30	5/14/08		1,000,000
4,000	Societe General	5.08	4/04/08		4,000,000
5,000	Svenska Handelsbanken	5.13	4/07/08		5,000,000
8,500	Toronto - Dominion Bank	2.73-4.86	06/20/08-08/29/08		8,500,000
3,000	UBS AG	2.95-4.00	06/16/08-07/14/08		3,000,166
					83,017,747
	Total Certificate of Deposit
	(Cost $86,024,189)				86,024,189
	Floating Rate Notes (9.6%)
	Asset-Backed - Structured Investment Vehicles (1.7%)
2,000	Asscher Finance Corp.*	2.58†	6/25/08‡		1,999,953
2,000	Cullinan Finance Corp.*	2.33†	4/01/08‡		1,999,948
					3,999,901
	Banking (1.5%)
3,500	Citigroup Inc.	3.13†	5/02/08‡		3,500,095
	Domestic Banks  (0.5%)
1,000	Wachovia Bank, NA	2.94†	6/27/08‡		999,216
	Finance-Auto (1.7%)
4,000	American Honda Finance Corp.*	3.14†	5/06/08‡		4,000,000
	Financial Conglomerates (2.2%)
5,000	General Electric Capital Corp.	2.50-4.08†	07/07/08-12/08/08‡		5,000,284
	International Banks (2.0%)
3,600	Nordea Bank Finland - NY	2.08-3.09†	05/28/08‡		3,599,580
1,100	Unicredito Italiano SpA	3.12†	05/06/08‡		1,099,978
					4,699,558
	Total Floating Rate Notes
	(Cost $22,199,053)				22,199,053
	Repurchase Agreement (4.3%)
9,865	Barclays Captial Inc.
	(dated 03/31/08; proceeds $9,865,685)
	(Cost $9,865,000) (a)	2.50	4/01/08		9,865,000
	U.S. Government Agencies - Debenture Bonds (1.9%)
1,000	Federal Home Loan Banks	4.40	4/23/08		997,372
3,500	Freddie Mac	4.33-4.22	6/16/08-07/21/08		3,472,576
	Total U.S. Government Agencies - Debenture Bonds
	(Cost $4,469,948)				4,469,948
	Extendible Note (0.9%)
2,000	Deutsche Bank AG
	(Cost $2,000,000)	4.75	4/04/08		2,000,000
	Total Investments
	(Cost $229,794,876) (b)		99.7	%	229,794,876
	Other Assets in Excess of Liabilities		0.3		660,268
	Net Assets		100.0	%	$	230,455,144

*	Resale is restricted to qualified institutional investors
†	Rate shown is the rate in effect at March 31, 2008.
‡	Date of next interest rate reset.
(a)	Collateralized by Federal National Mortgage Association 5.41% due 01/13/23 valued at $10,062,537.00
(b)	Cost is the same for federal income tax purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

·Level 1 – quoted prices in active markets for identical investments

·Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

·Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In	Significant		Significant
			Active Market for	Other Observable		Unobservable
			Identical Assets	Inputs		Inputs
	Total		(Level 1)	(Level 2)		(Level 3)
Investments in Securities	$	229,794,876	—	$	229,794,876	—

Valuation of Investments — Portfolio securities are valued at amortized cost, which approximates market value, in accordance with Rule 2a-7 under the Investment Company Act of 1940.

Morgan Stanley Variable Investment Series - Limited Duration Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

PRINCIPAL
AMOUNT IN			COUPON		MATURITY
THOUSANDS			RATE		DATE	VALUE
		Corporate Bonds (31.5%)
		Aerospace & Defense (0.4%)
$	400	BAE Systems Holdings Inc. - 144A*	4.75	%	08/15/10	$	414,796
		Air Freight/Couriers (0.3%)
330		FedEx Corp.	5.50		08/15/09	338,035
		Beverages: Alcoholic (0.4%)
415		Miller Brewing Co. - 144A*	4.25		08/15/08	416,711
		Cable/Satellite TV (0.7%)
490		Comcast Cable Communications, Inc.	6.875		06/15/09	506,126
70		Comcast Corp.	5.85		01/15/10	71,983
190		Cox Communications, Inc. - 144A*	4.625		01/15/10	190,172
						768,281
		Chemicals: Major Diversified (0.2%)
170		ICI Wilmington Inc.	4.375		12/01/08	170,908
		Containers/Packaging (0.1%)
90		Sealed Air Corp. - 144A*	6.95		05/15/09	92,804
		Department Stores (0.5%)
230		Federated Department Stores, Inc.	6.625		09/01/08	231,091
370		JC Penney Corp., Inc.	7.375		08/15/08	373,132
						604,223
		Drugstore Chains (0.3%)
390		CVS Corp.	4.00		09/15/09	390,307
		Electric Utilities (3.6%)
248		Columbus Southern Power Co.	4.40		12/01/10	249,839
380		Consumers Energy Co. (Series H)	4.80		02/17/09	382,560
355		Detroit Edison Co. (The)	6.125		10/01/10	376,280
330		Dominion Resources, Inc. (Series A)	5.687	+	05/15/08	330,673
220		Entergy Gulf States, Inc.	3.476		12/01/09	215,409
170		Entergy Gulf States, Inc.	3.60		06/01/08	169,580
45		Entergy Gulf States, Inc. - 144A*	5.896	+	12/08/08	45,124
175		Keyspan Corp.	4.90		05/16/08	175,224
405		Ohio Power Co.	4.826	+	04/05/10	394,992
365		Pacific Gas & Electric Co.	3.60		03/01/09	364,178
390		Peco Energy Co.	3.50		05/01/08	390,005
235		Public Service Co. of Colorado (Series A)	6.875		07/15/09	243,497
330		Southwestern Public Service Co. (Series A)	6.20		03/01/09	337,010
400		Texas-New Mexico Power Co.	6.25		01/15/09	407,794
						4,082,165
		Finance/Rental/Leasing (1.6%)
365		American Honda Finance Corp. - 144A*	3.85		11/06/08	365,706
410		Capmark Financial Group Inc. - 144A*	5.875		05/10/12	259,979
90		CIT Group Inc.	5.00		11/24/08	82,740
370		CIT Group Inc. (Series MTN)	4.75		08/15/08	340,697
490		Countrywide Home Loans, Inc. (Series L)	3.25		05/21/08	480,559
410		SLM Corp.	4.00		01/15/10	344,724
						1,874,405
		Financial Conglomerates (2.0%)
95		Bank One Corp. (Series A)	6.00		02/17/09	96,499
150		Chase Manhattan Corp.	6.00		02/15/09	152,350
55		Chase Manhattan Corp.	7.00		11/15/09	57,489
315		Citicorp (Series MTN)	6.375		11/15/08	321,240
170		Citigroup Inc.	3.625		02/09/09	169,590
325		Citigroup Inc.	4.625		08/03/10	324,981
120		General Electric Capital Corp. (Series A)	4.25		12/01/10	123,073
410		JPMorgan Chase & Co.	6.75		02/01/11	435,620
205		Pricoa Global Funding I - 144A*	3.90		12/15/08	205,759
340		Prudential Funding LLC (Series MTN) - 144A*	6.60		05/15/08	341,046
						2,227,647
		Food Retail (0.2%)
230		Safeway Inc.	7.50		09/15/09	241,630
		Food: Major Diversified (0.9%)
200		Kraft Foods Inc.	4.00		10/01/08	199,830
385		Kraft Foods Inc.	4.125		11/12/09	385,870

485	Sara Lee Corp.	2.75		06/15/08	484,283
					1,069,983
	Gas Distributors (0.6%)
180	NiSource Finance Corp.	3.663	+	11/23/09	174,800
450	Sempra Energy	4.75		05/15/09	454,166
					628,966
	Home Improvement Chains (0.3%)
410	Home Depot Inc.	2.925		12/16/09	391,146
	Integrated Oil (0.5%)
470	Phillips Pete Co.	8.75		05/25/10	524,809
	Investment Banks/Brokers (0.8%)
455	Goldman Sachs Group Inc. (The)	6.875		01/15/11	486,016
275	Lehman Brothers Holdings Inc.	4.934	+	12/23/08	267,399
210	Lehman Brothers Holdings Inc.	5.094	+	12/23/10	179,227
					932,642
	Investment Managers (0.3%)
305	Mellon Funding Corp.	6.40		05/14/11	324,178
	Life/Health Insurance (1.6%)
545	John Hancock Financial Services, Inc.	5.625		12/01/08	555,229
765	Met Life Global - 144A* #	4.625		08/19/10	788,155
450	Monumental Global Funding II - 144A*	4.375		07/30/09	452,962
					1,796,346
	Major Banks (6.0%)
700	Banco Santander Central Hispano Issuances Ltd. (Cayman Islands)	7.625		11/03/09	749,039
575	Bank of America Corp.	3.375		02/17/09	575,358
200	Credit Suisse USA Inc.	6.125		11/15/11	211,494
800	HBOS Treasury Services PLC - 144A* (United Kingdom)	5.625		07/20/09	821,146
980	HSBC Finance Corp.	6.75		05/15/11	1,017,362
250	MBNA Corp. (Series F)	3.525	+	05/05/08	250,202
380	Popular North America, Inc. (Series F)	5.65		04/15/09	378,118
615	Suntrust Bank Atlanta	4.55		05/25/09	620,428
715	Unicredit Luxembourg Finance S.A. - 144A* (Luxembourg)	3.768	+	10/24/08	714,351
810	Wachovia Corp.	5.35		03/15/11	830,819
390	Wells Fargo & Co.	3.12		08/15/08	388,532
300	Wells Fargo Bank NA	6.45		02/01/11	319,297
					6,876,146
	Major Telecommunications (1.8%)
590	AT&T Inc.	3.195	+	02/05/10	584,720
175	British Telecommunications PLC (United Kingdom)	8.625		12/15/10	192,575
300	Deutsche Telekom International Finance BV (Netherlands)	8.00		06/15/10	321,073
350	Sprint Nextel Corp.	5.243		06/28/10	298,690
505	Telecom Italia Capital SA (Luxembourg)	4.875	+	10/01/10	497,723
150	Verizon Global Funding Corp.	7.25		12/01/10	161,194
					2,055,975
	Managed Health Care (0.3%)
210	United Healthcare Group Inc.	3.156	+	03/02/09	207,724
175	UnitedHealth Group Inc.	4.125		08/15/09	173,484
					381,208
	Media Conglomerates (0.8%)
480	Time Warner, Inc.	3.30	+	11/13/09	459,801
160	Viacom Inc.	5.341		06/16/09	156,846
300	Viacom Inc.	5.75	+	04/30/11	303,405
					920,052
	Medical Specialties (0.3%)
375	Hospira, Inc.	5.31	+	03/30/10	364,889
	Motor Vehicles (0.4%)
335	DaimlerChrysler North American Holdings Co	5.541	+	03/13/09	330,692
155	DaimlerChrysler North American Holdings Co.	4.05		06/04/08	155,064
					485,756
	Multi-Line Insurance (1.5%)
690	American General Finance Corp. (Series MTN H)	4.625		09/01/10	687,909
120	Equitable Co.	6.50		04/01/08	120,000
500	Hartford Financial Services Group, Inc. (The)	5.55		08/16/08	503,133
415	International Lease Finance Corp. (Series Q)	4.625		06/02/08	414,993
					1,726,035
	Oil & Gas Pipelines (0.4%)
500	Enbridge Energy Parners, LP	4.00		01/15/09	503,434
	Oil Refining/Marketing (0.7%)
180	Enterprise Products Oprating Note	7.50		02/01/11	193,483
600	Valero Energy Corp.	3.50		04/01/09	596,344
					789,827

	Other Metals/Minerals (0.4%)
445	Brascan Corp. (Canada)	8.125		12/15/08	457,015
	Packaged Software (0.2%)
185	Oracle Corp.	5.00		01/15/11	189,905
	Property - Casualty Insurers (0.9%)
595	Mantis Reef Ltd. - 144A* (Cayman Islands)	4.692		11/14/08	599,499
375	Xlliac Global Funding - 144A*	4.80		08/10/10	375,684
					975,183
	Railroads (0.5%)
535	Burlington Santa Fe Corp.	6.125		03/15/09	545,452
	Real Estate Development (0.6%)
507	World Financial Properties - 144A*	6.91		09/01/13	484,303
149	World Financial Properties - 144A*	6.95		09/01/13	144,749
					629,052
	Restaurants (0.5%)
580	Tricon Global Restaurant, Inc.	7.65		05/15/08	583,097
	Savings Banks (0.9%)
575	Sovereign Bancorp, Inc.	5.114	+	03/23/10	550,839
200	Washington Mutual Inc.	4.00		01/15/09	180,032
350	Washington Mutual Inc.	8.25		04/01/10	304,633
					1,035,504
	Total Corporate Bonds
	(Cost $36,590,495)				35,808,512
	Collateralized Mortgage Obligations (28.5%)
	U.S. Government Agencies (1.4%)
	Federal Home Loan Mortgage Corp.
578	2182 ZC	7.50		09/15/29	612,985
387	2644 AU	3.50		05/15/22	387,027
	Federal National Mortgage Association
232	2005-27 NA	5.50		01/25/24	233,429
353	2005-52 PA	6.50		06/25/35	371,425
	Total U.S. Government Agencies				1,604,866
	Private Issues (27.1%)
	American Home Mortgage Assets
383	2006-3 1A3	2.919	+	10/25/46	191,259
330	2007-5 A3	2.899	+	06/25/47	162,159
1,021	American Home Mortgage Investment Trust - 2007-1 GA1C	2.789	+	05/25/47	778,047
751	Bank of America Funding Corporation 2006-H 3A1	6.209	+	09/20/46	728,110
387	Bear Stearns Alt -A Trust 2003-3 3A	2.949	+	10/25/33	391,323
	Bear Stearns Mortgage Funding Trust
795	2006-AR1 1A2	2.849	+	07/25/36	468,435
779	2006-AR3 1A1	2.779	+	10/25/36	590,517
666	2006-AR5 1A2	2.809	+	12/25/36	417,733
764	2007-AR1 1A2	2.809	+	01/25/37	466,611
	Countrywide Alternative Loan Trust
701	2005-56 2A3	5.736	+	11/25/35	532,753
482	2005-76 2A2	5.936	+	02/25/36	313,165
2,717	2005-81 X1 (IO)	0.956	+	02/25/37	117,186
265	2005-J1 5A1	2.999	+	02/25/35	205,147
275	2005-J2 1A12	2.999	+	04/25/35	214,187
582	2006-0A1 1A2	2.836	+	03/20/46	360,228
3,417	2006-0A1 2X (IO)	1.04	+	03/20/46	150,170
526	2006-0A14 2A1	2.789	+	11/25/46	401,727
603	2006-0A16 A3	2.849	+	10/25/46	388,642
628	2006-0A2 A3	2.806	+	05/20/46	392,558
605	2006-0A22 A2	2.809	+	02/25/47	396,549
905	2006-OA10 2A2	2.829	+	08/25/46	562,054
	Countrywide Home Loans
2,910	2004-25 1X (IO)	1.562	+	02/25/35	70,023
479	2006-0A4 A2	3.405	+	04/25/46	299,995
	DSLA Mortgage Loan Trust
810	2006-AR2 2A1A	2.759	+	11/19/37	615,983
904	2007-AR1 2A1A	2.699	+	04/19/38	681,536
775	First Horizon Alternative Mortgage Sec. 2006-FA8 1A7	6.00		02/25/37	697,464
	Greenpoint Mortgage Funding Trust
1,613	2005-AR3 X1 (IO)	1.207	+	08/25/45	52,424
2,460	2005-AR4 X4 (IO)	1.991	+	10/25/45	89,177
590	2006-AR2 4A1	6.522	+	03/25/36	428,292
35	GS Mortgage Securities Corp. 2007-NIM1 N1 144A*	6.25		08/25/46	34,701

	Harborview Mortgage Loan Trust
484	2005-12 2A11	6.522	+	10/19/35	387,421
1,269	2005-16 4A1A	6.522	+	01/19/36	1,015,231
1,667	2005-16 X1 (IO)	1.046	+	01/19/36	62,060
3,891	2005-16 X3 (IO)	0.60	+	01/19/36	127,757
2,590	2005-2  X (IO)	1.464	+	05/19/35	73,078
2,719	2005-3 X2 (IO)	0.321	+	06/19/35	78,525
683	2005-9 2A1C	2.986	+	06/20/35	458,311
210	2005-9 B1	3.136	+	06/20/35	110,199
562	2006-1 2A1A	2.799	+	03/19/37	423,656
3	2006-1 PO1 (PO)	0.00		03/19/37	2,152
3,310	2006-1 X1 (IO)	0.414	+	03/19/37	130,504
986	2006-10 1A1B	2.799	+	11/19/36	592,317
1,111	2006-12 2A2B	2.809	+	01/19/38	705,837
719	2006-14 2A1B	2.759	+	03/19/38	457,918
‡	2006-5 PO2 (PO)	0.00		07/19/47	20
5,303	2006-5 X2 (IO)	2.032	+	07/19/47	214,180
617	2006-7 2A1B	2.809	+	10/19/37	380,412
768	2006-8 2A1B	2.849	+	08/21/36	495,326
854	2006-9 2AB2	2.839	+	11/19/36	580,449
	Harborview NIM Corp.
49	2006-12 N1 144A*	6.409		12/19/36	48,996
16	2006-14 N1 144A*	6.409		03/19/38	15,661
47	2007-1A N1 144A*	6.409		03/19/37	46,045
	Indymac Index Mortgage Loan Trust
147	2004-AR3 B1	3.099	+	07/25/34	75,995
2,339	2005-AR12 AX2 (IO)	1.057	+	07/25/35	76,819
	Luminent Mortgage Trust
469	2006-1 A1	3.375	+	04/25/36	356,434
529	2006-2 A1B	3.415	+	02/25/46	340,672
749	2006-4 A1B	2.829	+	05/25/46	481,554
728	2006-6 A1	2.799	+	10/25/46	554,662
425	Master Adjustable Rate Mortgage Trust 2007-3 1M2	3.699	+	05/25/47	168,033
635	Mortgageit Trust 2006-1 2A1B	3.415	+	04/25/36	402,321
	Residential Accredit Loans, Inc.
201	2006-Q01 1A1	3.395	+	02/25/46	131,839
224	2006-Q01 2A1	3.405	+	02/25/46	156,267
821	2006-Q02 A2	3.405	+	02/25/46	509,444
923	2006-Q06 A2	2.829	+	06/25/46	578,934
731	2006-QH1 A1	2.789	+	12/25/36	553,521
888	2006-QO10 A2	2.799	+	01/25/37	561,845
658	2007-Q03 A3	2.859	+	03/25/47	317,413
329	2007-Q04 A3	2.899	+	05/25/47	166,094
1,143	2007-QH1 A2	2.789	+	02/25/37	704,236
20	Sharp SP I LLC Net Interest Margin Trust 2006-AHM3 N1 144A*	7.00		10/25/46	19,442
	Structured Asset Mortgage Investment Inc.
398	2006-AR1 2A2	2.909	+	02/25/36	249,174
622	2006-AR2 A2	2.909	+	02/25/36	385,304
738	2006-AR3 11A2	2.869	+	04/25/36	472,753
910	2006-AR8 A1A	2.799	+	10/25/36	692,110
760	2007-AR1 2A2	2.809	+	01/25/37	475,045
854	2007-AR2 1A2	2.789	+	02/25/37	519,558
	WAMU Mortgage Pass-Through Certificates
1,981	2004-AR10 X (IO)	0.61	+	07/25/44	42,249
2,780	2004-AR12 X (IO)	0.634	+	10/25/44	58,470
1,105	2004-AR8 X (IO)	0.61	+	06/25/44	23,901
441	2005-AR13 A1B2	5.776	+	10/25/45	322,205
414	2005-AR13 A1B3	2.959	+	10/25/45	284,575
449	2005-AR15 A1B3	3.475	+	11/25/45	313,665
374	2005-AR8 2AB3	2.959	+	07/25/45	260,495
739	2006-AR2 A1A	5.728	+	04/25/46	539,635
650	2006-AR4 1A1B	5.462	+	05/25/46	357,708
668	2006-AR6 2A	5.286	+	08/25/46	487,931
984	2006-AR9 1A	5.788	+	08/25/46	610,081
776	2007-0A1 A1B	2.799	+	02/25/47	473,395
783	2007-0A1 CA1B	2.799	+	12/25/46	471,923
	Total Private Issues				30,799,912
	Total Collateralized Mortgage Obligations
	(Cost $46,892,534)				32,404,778
	Asset-Backed Securities (17.4%)
132	Aegis Asset Backed Securities Trust 2004-2 B1	5.135	+	06/25/34	41,891
360	Ameriquest Morgage Securities Inc. 2004-R7 M5	4.285	+	08/25/34	235,571
1,475	Bank of America Credit Card Trust 2007-A13 A13	3.341	+	04/16/12	1,459,042
1,100	Capital Auto Receivables Asset Trust 2006-2 A3A	4.98		05/15/11	1,112,729
700	Capital Auto Receivables Asset Trust 2007-3 A3A	5.02		09/15/11	713,571
1,400	Capital Auto Receivables Asset Trust 2007-SN1 A3A	5.38		07/15/10	1,425,878

736	Caterpillar Financial Asset Trust 2006-A A3	5.57		05/25/10	744,178
413	CNH Equipment Trust 2006-B A3	5.20		06/15/10	416,199
550	CNH Equipment Trust 2007-B A3A	5.40		10/17/11	560,044
250	Credit-Based Asset Servicing and Sec. 2006-CB6 A21	3.175	+	07/25/36	245,762
975	Daimler Chrysler Auto Trust 2007-A A3A	5.00		02/08/12	998,652
1,100	Ford Credit Auto Owner Trust 2006-B A3	5.26		10/15/10	1,112,204
1,175	Ford Credit Auto Owner Trust 2007-A A3A	5.40		08/15/11	1,208,076
436	GE Equipment Small Ticket LLC 2005-2A A3 - 144A*	4.88		10/22/09	436,050
1,068	GS Auto Loan Trust  2006-1 A3	5.37		12/15/10	1,079,299
331	Harley-Davidson Motorcycle Trust 2003-3 A2	2.76		05/15/11	329,467
487	Harley-Davidson Motorcycle Trust 2004-2 A2	3.56		02/15/12	487,437
645	Harley-Davidson Motorcycle Trust 2005-2 A2	4.07		02/15/12	647,990
822	Harley-Davidson Motorcycle Trust 2005-3 A2	4.41		06/15/12	828,473
625	Hertz Vehicle Financing LLC 2005-2A A2 - 144A*	4.93		02/25/10	617,708
46	Home Equity Asset Trust 2004-3 B1	5.235	+	08/25/34	21,996
287	Honda Auto Receivables Owner Trust 2005-5 A3	4.61		07/15/09	288,355
381	Honda Auto Receivables Owner Trust 2005-6 A3	4.85		10/19/09	383,039
975	Hyundai Auto Receivables Trust 2007-A A3A	5.04		01/17/12	987,844
90	Merrill Auto Trust Securitization 2005-1 A3	4.10		08/25/09	90,208
267	National City Auto Receivables Trust 2004-A A4	2.88		05/15/11	267,179
458	Nationstar Home Equity Loan Trust 2007-C 2AV1	3.195	+	06/25/37	431,998
850	Nissan Auto Receivables Owner Trust 2007-B A3	5.03		05/16/11	868,621
450	Park Place Securities Inc. 2004-MCW1 M7	4.985	+	10/25/34	313,743
19	Soundview Home Equity Loan Trust 2006-OPT3 2A1	3.195	+	06/25/36	18,987
401	USAA Auto Owner Trust 2005-3 A3	4.55		02/16/10	402,548
900	USAA Auto Owner Trust 2007-2 A3	4.90		02/15/12	915,296
80	Wachovia Auto Owner Trust 2005-A A3	4.06		09/21/09	80,430
63	Whole Auto Loan Trust 2003-1 A4	2.58		03/15/10	62,527
	Total Asset-Backed Securities
	(Cost $20,042,902)				19,832,992
	Commercial Mortgage-Backed Securities (0.9%)
268	Citigroup Commercial Mortgage Trust 2007-C6 A1	5.622	+	12/10/49	265,599
718	JP Morgan Chase Commercial Mortgage Sec. 2007-LD11 A1	5.651	+	06/15/49	718,310
	Total Commercial Mortgage-Backed Securities
	(Cost $988,290)				983,909
	U.S. Government Agencies - Mortgage-Backed Securities (8.4%)
51	Federal Home Loan Mortgage Corp.	7.50		08/01/32	54,877
322	Federal Home Loan Mortgage Corp. (PC) Gold	7.50		02/01/27 - 04/01/32	348,082
	Federal Home Loan Mortgage Corp. (ARM)
668		4.344		10/01/33	684,492
632		4.359		07/01/35	635,863
187		5.453		07/01/34	190,155
235		6.01		08/01/34	241,291
	Federal National Mortgage Association
661		6.50		05/01/32 - 11/01/33	689,511
974		7.00		11/01/24 - 11/01/34	1,035,576
600		7.00		***	629,813
1,061		7.50		03/01/24 - 01/01/32	1,145,068
	Federal National Mortgage Association (ARM)
364		4.265		05/01/35	369,415
203		4.527		04/01/35	204,015
599		4.625		05/01/35	606,543
461		4.702		04/01/35	463,221
707		4.715		09/01/35	715,406
558		4.781		07/01/35	568,002
407		5.033		05/01/35	413,376
144		5.483		07/01/34	144,966
69		5.59		06/01/34	70,312
120		6.157		09/01/34	121,736
188		6.714		07/01/33	192,559
	Total U.S. Government Agencies - Mortgage-Backed Securities
	(Cost $9,430,549)				9,524,279
	Short-Term Investment (13.8%)
	U.S. Government Obligations (a) (0.1%)
124	U.S. Treasury Bills**
	(Cost $124,901)	3.15		04/01/08	124,901

NUMBER OF
SHARES (000)
	Investment Company (b) (13.7%)
15,541	Morgan Stanley Institutional Liquidity Money Market Portfolio
	- Institutional Class ****
	(Cost $15,540,551)			15,540,551
	Total Short-Term Investment
	(Cost $15,665,452)			15,665,452
	Total Investments
	(Cost $129,610,222) (c) (d)	100.4	%	114,219,922
	Liabilities in Excess of Other Assets	(0.4	)	(432,582		)
	Net Assets	100.0	%	$	113,787,340

ARM	Adjustable Rate Mortgage. Interest rate in effect as of March 31, 2008.
IO	Interest Only Security.
MTN	Medium Term Note.
PC	Participation Certificate.
PO	Principal Only Security. No rate exists for a principal only security.
*	Resale is restricted to qualified institutional investors.
**	A portion of this security has been physically segregated in connection with open futures contracts in the amount of $36,240.
***	Security was purchased on a forward commitment basis with an approximate principal amount and no definite maturity date; the actual principal amount and maturity date will be determined upon settlement.
****	May include cash designated as collateral in connection with open swap contracts.
#	As of March 31, 2008 there were no transactions of Met Life Global corporate bond, an affiliate of the Portfolio.
+	Floating rate security, rate shown is the rate in effect at March 31, 2008.
‡	Amount is less than one thousand.
(a)	Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.
(b)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(c)	Securities have been designated as collateral in amount equal to $58,859,670 in connection with securities purchased on a forward commitment basis, forward foreign currency contracts and open futures contracts.
(d)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

·Level 1 – quoted prices in active markets for identical investments

·Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

·Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	114,219,922	$	16,170,364	$	98,049,558	—
Other Financial Instruments*	1,352,148		175,341		1,176,807		—
Total	$	115,572,070	$	16,345,705	$	99,226,365	$	0

* Other financial instruments include futures, forwards, and swap contracts.

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5)credit default/interest rate swaps are marked-to-market daily based upon quotations from market makers; (6) futures are valued at the latest price published by the commodities exchange on which they trade; (7) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.  Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (8) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (9) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (10) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Futures Contracts Open at March 31, 2008:

							UNREALIZED
NUMBER OF			DESCRIPTION, DELIVERY	UNDERLYING FACE			APPRECIATION
CONTRACTS		LONG/SHORT	MONTH AND YEAR	AMOUNT AT VALUE			(DEPRECIATION)
76		Long	U.S.Treasury Notes 5 Year,
			June 2008	$	8,681,813		$		83,740
61		Short	U.S.Treasury Notes 10 Year,
			June 2008	7,256,141			249,066
6		Long	U.S.Treasury Bonds 20 Year,
			June 2008	(712,781		)	1,231
188		Long	U.S.Treasury Notes 2 Year,
			June 2008	(40,355,377		)	(158,697			)
	Net Unrealized Appreciation						$	175,341

Interest Rate Swap Contracts Open at March 31, 2008:

	NOTIONAL			PAYMENTS	PAYMENTS		UNREALIZED
	AMOUNT			RECEIVED	MADE	TERMINATION	APPRECIATION
COUNTERPARTY	(000’S)			BY FUND	BY FUND #	DATE	(DEPRECIATION)
Bank of America, N.A.	$		2,770	Fixed Rate 5.560%	Floating Rate 0.000%	February 19, 2018	$	55,622
Bank of America, N.A.	3,590			Floating Rate 0.000	Fixed Rate 5.995%	February 19, 2023	(54,532			)
Citigroup Inc.	2,600			Fixed Rate 2.899	Floating Rate 3.090	October 25, 2037	21,502
Deutsche Bank	2,700			Fixed Rate 4.426	Floating Rate 3.127	November 8, 2009	85,293
Deutsche Bank	2,700			Fixed Rate 4.550	Floating Rate 3.847	October 23, 2009	87,615
Goldman Sachs Co.	2,700			Fixed Rate 4.642	Floating Rate 2.938	September 11, 2009	85,293
Goldman Sachs Co.	2,770			Fixed Rate 5.630	Floating Rate 0.000	February 28, 2018	62,325
Goldman Sachs Co.	3,590			Floating Rate 0.000	Fixed Rate 6.035	February 28, 2023	(58,589			)
JPMorgan Chase Co.	2,800			Fixed Rate 5.078	Floating Rate 3.239	August 1, 2009	97,916
JPMorgan Chase Co.	2,800			Fixed Rate 5.357	Floating Rate 4.376	July 13, 2009	103,236
JPMorgan Chase Co.	2,600			Fixed Rate 4.139	Floating Rate 2.901	December 12, 2009	74,360
JPMorgan Chase Co.	2,700			Fixed Rate 4.782	Floating Rate 3.951	October 18, 2009	96,930
JPMorgan Chase Co.	2,800			Fixed Rate 5.391	Floating Rate 3.008	June 6, 2009	96,152
JPMorgan Chase Co.	2,800			Fixed Rate 5.486	Floating Rate 2.850	June 14, 2009	101,640
JPMorgan Chase Co.	2,800			Fixed Rate 5.364	Floating Rate 2.671	June 28, 2009	102,004
JPMorgan Chase Co.	2,700			Fixed Rate 4.793	Floating Rate 2.541	September 20, 2009	95,067
JPMorgan Chase Co.	2,700			Fixed Rate 4.384	Floating Rate 3.306	October 29, 2009	82,080
JPMorgan Chase Co.	2,600			Fixed Rate 3.989	Floating Rate 2.850	December 14, 2009	68,094
JPMorgan Chase Co.	2,600			Fixed Rate 2.785	Floating Rate 3.111	February 4, 2010	16,146
		Net Unrealized Appreciation					$		1,218,154

# Floating Rate represents USD-3 Months LIBOR

Credit Default Swap Contracts Open at March 31, 2008:

		NOTIONAL					UNREALIZED
SWAP COUNTERPARTY &	BUY/SELL	AMOUNT		INTEREST		TERMINATION	APPRECIATION
REFERENCE OBLIGATION	PROTECTION	(000’S)		RATE		DATE	(DEPRECIATION)
Goldman Sachs International
DJ CDX, N.A.	Sell	$	1,400	0.35	%	June 20, 2012	$	(48,169	)
Bank of America, N.A.
DJ CDX, N.A.	Sell	1,000		0.60		December 20, 2012	(4,285		)
Citigroup, Inc.
Covidien	Buy	130		0.43		March 20, 2012	15
Citigroup, Inc.
Covidien	Buy	53		0.43		March 20, 2012	6
Citigroup, Inc.
Tyco Electronics	Buy	130		0.43		March 20, 2012	3,930
Citigroup, Inc.
Tyco Electronics	Buy	53		0.43		March 20, 2012	1,612
Citigroup, Inc.
Tyco International Ltd	Buy	130		0.43		March 20, 2012	3,931
Citigroup, Inc.
Tyco International Ltd	Buy	53		0.43		March 20, 2012	1,613
Net Unrealized Depreciation							$	(41,347	)

Morgan Stanley Variable Investment Series - Income Plus Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

PRINCIPAL
AMOUNT IN			COUPON		MATURITY
THOUSANDS			RATE		DATE	VALUE
		CORPORATE BONDS (78.9%)
		Advertising/Marketing Services (0.2%)
$	730	Interpublic Group of Companies, Inc. (The)	6.25	%	11/15/14	$	592,212
		Air Freight/Couriers (1.3%)
3,969		FedEx Corp. (Series 97-A)	7.50		01/15/18	4,316,018
		Airlines (0.6%)
583		America West Airlines, Inc. (Class A)	6.85		07/02/09	581,009
1,406		America West Airlines, Inc. (Series 01-1)	7.10		04/02/21	1,398,886
						1,979,895
		Auto Parts: O.E.M. (0.3%)
980		ArvinMeritor, Inc.	8.75		03/01/12	901,600
		Beverages: Alcoholic (0.9%)
470		Anheuser-Busch Companies, Inc.	5.50		01/15/18	486,636
2,635		FBG Finance Ltd. - 144A* (Australia)	5.125		06/15/15	2,614,473
						3,101,109
		Biotechnology (0.9%)
610		Amgen Inc.	5.85		06/01/17	610,586
2,530		Biogen Idec Inc.	6.875		03/01/18	2,560,610
						3,171,196
		Cable/Satellite TV (1.8%)
1,650		Comcast Cable Communications, Inc.	6.75		01/30/11	1,716,541
995		Comcast Cable Communications, Inc.	7.125		06/15/13	1,058,240
1,880		Comcast Corp.	6.50		01/15/15	1,927,855
275		DIRECTV Holdings LLC/Financing Co., Inc.	6.375		06/15/15	257,812
895		EchoStar DBS Corp.	6.375		10/01/11	861,437
425		Echostar DBS Corp.	6.625		10/01/14	387,812
						6,209,697
		Chemicals: Major Diversified (0.2%)
525		Du Pont (E.I. ) De Nemours & Co., Inc.	5.00		01/15/13	547,237
		Data Processing Services (0.3%)
1,035		FISERV Inc.	6.80		11/20/17	1,071,460
		Department Stores (1.2%)
2,275		Federated Department Stores, Inc.	6.625		09/01/08	2,285,795
1,875		May Department Stores Co.	5.95		11/01/08	1,879,808
						4,165,603
		Discount Stores (0.1%)
330		Target Corp.	6.50		10/15/37	320,101
		Drugstore Chains (1.0%)
150		CVS Caremark Corp.	5.75		06/01/17	152,604
1,180		CVS Corp.	5.75		08/15/11	1,235,334
2,206		CVS Lease Pass Through - 144A*	6.036		12/10/28	2,107,907
						3,495,845
		Electric Utilities (9.3%)
3,090		Arizona Public Service Co.	5.80		06/30/14	3,033,515
650		Carolina Power & Light Co., Inc.	5.15		04/01/15	662,800
670		CenterPoint Energy Resources, Corp.	6.25		02/01/37	626,971
375		CenterPoint Energy Resources, Corp. (Series B)	7.875		04/01/13	417,007
65		CMS Energy Corp.	6.30		02/01/12	65,716
1,070		Consolidated Natural Gas Co. (Series C)	6.25		11/01/11	1,131,451
2,195		Consumers Energy Co. (Series H)	4.80		02/17/09	2,209,788
1,535		Detroit Edison Co. (The)	6.125		10/01/10	1,627,016
120		Detroit Edison Company	5.20		10/15/12	124,739
2,170		Duquesne Light Co. (Series O)	6.70		04/15/12	2,365,706
910		Enel Finance International - 144A*	5.70		01/15/13	942,869
1,875		Entergy Gulf States, Inc.	3.476		12/01/09	1,835,874
2,425		Entergy Gulf States, Inc. - 144A*	6.474		12/08/08	2,431,676
1,780		Exelon Corp.	6.75		05/01/11	1,879,536
365		Florida Power Corp.	5.80		09/15/17	388,039
815		Keyspan Corp.	4.90		05/16/08	816,042
895		Nevada Power Co.	8.25		06/01/11	970,757

1,905	Ohio Edison Co.	6.40	07/15/16	1,965,861
2,205	Ohio Power Company (Series K)	6.00	06/01/16	2,218,201
1,120	Pacific Gas & Electric Co.	5.625	11/30/17	1,152,697
465	PacifiCorp	6.25	10/15/37	471,411
1,015	Public Service Electric & Gas Co. (Series G)	5.125	09/01/12	1,050,632
1,325	Texas Eastern Transmission	7.00	07/15/32	1,416,167
985	Union Electric Co.	6.40	06/15/17	1,036,973
430	Virginia Electric Power Co.	5.95	09/15/17	453,660
				31,295,104
	Electrical Products (0.5%)
1,580	Cooper Industries, Inc.	5.25	11/15/12	1,639,155
	Electronic Components (0.4%)
1,400	Philips Electronics	5.75	03/01/18	1,429,154
	Electronic Equipment/Instruments (0.3%)
940	Xerox Corp.	5.50	05/15/12	948,781
	Environmental Services (1.6%)
5,155	Waste Management, Inc.	7.375	08/01/10	5,433,705
	Finance/Rental/Leasing (2.8%)
895	Capital One Financial Corp.	6.75	09/15/17	850,419
2,990	Capmark Financial Group Inc. - 144A*	5.875	05/10/12	1,895,941
870	Capmark Financial Group Inc. - 144A*	6.30	05/10/17	522,416
1,930	CIT Group, Inc.	5.65	02/13/17	1,499,046
2,360	Countrywide Home Loans, Inc. (Series L)	3.25	05/21/08	2,314,528
3,000	SLM Corp.	5.244	07/26/10	2,363,829
				9,446,179
	Financial Conglomerates (3.2%)
1,165	Brookfield Asset Management Inc. (Canada)	5.80	04/25/17	1,053,068
1,845	Citigroup Inc.	5.25	02/27/12	1,842,092
1,735	Citigroup Inc.	5.875	05/29/37	1,511,770
5,290	JPMorgan Chase & Co.	6.75	02/01/11	5,620,567
635	Prudential Financial,  Inc.	6.625	12/01/37	629,229
				10,656,726
	Food Retail (0.7%)
1,400	Delhaize America, Inc.	9.00	04/15/31	1,689,440
610	Kroger Co.	5.00	04/15/13	614,066
				2,303,506
	Food: Major Diversified (1.3%)
925	ConAgra Foods, Inc.	7.00	10/01/28	939,645
1,040	ConAgra Foods, Inc.	8.25	09/15/30	1,198,384
740	Kellogg Co.	5.125	12/03/12	765,996
1,495	Kraft Foods Inc.	6.00	02/11/13	1,547,244
				4,451,269
	Food: Meat/Fish/Dairy (0.3%)
290	Pilgrim’s Pride Corp.	7.625	05/01/15	280,575
800	Smithfield Foods, Inc. (Series B)	8.00	10/15/09	816,000
				1,096,575
	Gas Distributors (1.6%)
650	DCP Midstream LLC	6.75	09/15/37	637,112
1,000	Equitable Resources, Inc.	6.50	04/01/18	1,006,928
1,870	NiSource Finance Corp.	3.663	11/23/09	1,815,978
1,700	NiSource Finance Corp.	7.875	11/15/10	1,849,087
				5,309,105
	Home Building (0.1%)
290	Pulte Homes, Inc.	6.375	05/15/33	227,650
	Home Improvement Chains (1.4%)
3,345	Home Depot Inc.	2.925	12/16/09	3,191,177
1,780	Home Depot Inc.	5.40	03/01/16	1,675,736
				4,866,913
	Hospital/Nursing Management (0.1%)
480	Tenet Healthcare Corp.	7.375	02/01/13	430,800
	Industrial Conglomerates (3.2%)
9,930	General Electric Co.	5.25	12/06/17	9,934,935
785	Honeywell International Inc.	5.30	03/01/18	805,967
				10,740,902
	Insurance Brokers/Services (1.4%)
1,500	Farmers Exchange Capital - 144A*	7.05	07/15/28	1,380,832
3,105	Farmers Insurance Exchange - 144A*	8.625	05/01/24	3,284,876
				4,665,708

	Integrated Oil (1.3%)
1,460	Amerada Hess Corp.	6.65	08/15/11	1,573,074
1,450	Marathon Oil Corp.	6.00	10/01/17	1,473,583
1,590	Petro-Canada (Canada)	5.95	05/15/35	1,440,214
				4,486,871
	Investment Banks/Brokers (6.6%)
1,760	Bear Stearns Companies Inc.	5.55	01/22/17	1,574,037
1,215	Bear Stearns Companies Inc.	6.40	10/02/17	1,201,798
1,060	Bear Stearns Companies Inc.	7.25	02/01/18	1,097,315
4,550	Goldman Sachs Group Inc.	6.15	04/01/18	4,551,643
4,950	Goldman Sachs Group Inc.	6.75	10/01/37	4,619,206
1,260	Lehman Brothers Holdings, Inc.	5.75	01/03/17	1,140,161
1,935	Lehman Brothers Holdings, Inc.	6.50	07/19/17	1,840,696
3,730	Lehman Brothers Holdings, Inc.	6.875	07/17/37	3,243,388
1,195	Merrill Lynch & Co.	5.45	02/05/13	1,176,945
1,930	Merrill Lynch & Co.	5.70	05/02/17	1,836,565
				22,281,754
	Major Banks (6.3%)
1,500	Bank of America Corp.	4.875	09/15/12	1,523,352
1,865	Bank of America Corp.	5.75	12/01/17	1,933,554
970	Bank of New York Co., Inc.(Series MTN)	4.50	04/01/13	977,963
545	Barclays Bank PLC - 144A*	6.05	12/04/17	532,536
3,950	Credit Suisse New York	6.00	02/15/18	3,947,831
1,660	HSBC Finance Corp.	6.75	05/15/11	1,723,286
1,800	Huntington National Bank (Series T)	4.375	01/15/10	1,778,877
760	PNC Bank NA	6.00	12/07/17	733,364
1,580	Popular North America, Inc. (Series F)	5.65	04/15/09	1,572,176
1,370	Wachovia Bank NA	5.85	02/01/37	1,160,189
5,000	Well Fargo Bank NA	7.55	06/21/10	5,430,680
				21,313,808
	Major Telecommunications (6.7%)
4,470	AT&T Corp.	8.00	11/15/31	5,238,241
2,335	France Telecom S.A. (France)	8.50	03/01/31	2,900,976
2,040	SBC Communications, Inc.	6.15	09/15/34	1,965,730
2,005	Sprint Capital Corp.	8.75	03/15/32	1,698,012
2,955	Sprint Nextel Corp.	6.00	12/01/16	2,301,129
3,645	Telecom Italia Capital SA (Luxembourg)	4.00	01/15/10	3,577,203
2,515	Telefonica Europe BV (Netherlands)	8.25	09/15/30	2,945,221
2,005	Verizon Communications	5.50	02/15/18	1,956,463
				22,582,975
	Managed Health Care (0.6%)
2,020	Unitedhealth Group Inc.	6.00	02/15/18	1,982,256
	Media Conglomerates (2.3%)
1,050	News America Inc. - 144A*	6.65	11/15/37	1,062,347
2,690	Time Warner, Inc.	3.30	11/13/09	2,576,799
1,905	Time Warner, Inc.	5.875	11/15/16	1,814,566
2,320	Viacom, Inc.	6.875	04/30/36	2,240,830
				7,694,542
	Medical Specialties (0.9%)
3,135	Hospira, Inc.	5.31	03/30/10	3,050,468
	Motor Vehicles (0.8%)
1,490	DaimlerChrysler North American Holdings Co.	8.00	06/15/10	1,596,146
1,015	DaimlerChrysler North American Holdings Co.	8.50	01/18/31	1,163,406
				2,759,552
	Multi-Line Insurance (1.9%)
2,625	AIG SunAmerica Global Financing VI - 144A*	6.30	05/10/11	2,760,474
3,710	American General Finance Corp. (Series MTN H)	4.625	09/01/10	3,698,759
				6,459,233
	Oil & Gas Pipelines (3.0%)
1,450	Colorado Interstate Gas Co.	6.80	11/15/15	1,502,210
1,265	Enterprise Products Operating L.P. (Series B)	5.60	10/15/14	1,267,383
955	Kinder Morgan Energy Partners, L.P.	5.85	09/15/12	980,300
2,465	Kinder Morgan Finance Co. (Canada)	5.70	01/05/16	2,347,912
2,195	Plains All American Pipeline LP/PAA Finance Corp.	6.70	05/15/36	2,123,443
1,085	Trans-Canada Pipelines	6.20	10/15/37	1,049,640
860	Transcontinental Gas Pipe Line Corp. (Series B)	8.875	07/15/12	982,550
				10,253,438
	Oil & Gas Production (1.5%)
870	Anadarko Finance Co.	6.75	05/01/11	929,899
860	Chesapeake Energy Corp.	7.625	07/15/13	885,800
1,805	Devon Financing Corp.	6.875	09/30/11	1,971,661
1,220	Encana Corp.	6.50	02/01/38	1,215,393
				5,002,753

	Oil Refining/Marketing (0.7%)
995	Marathon Oil Corp.	5.90		03/15/18	1,002,040
1,210	Valero Energy Corp.	3.50		04/01/09	1,202,626
					2,204,666
	Oilfield Services/Equipment (0.3%)
70	Weatherford International Ltd.	6.00		03/15/18	70,495
1,035	Weatherford International Ltd.	6.35		06/15/17	1,072,420
					1,142,915
	Other Metals/Minerals (0.7%)
2,435	Brascan Corp. (Canada)	7.125		06/15/12	2,433,067
	Pharmaceuticals: Major (0.4%)
990	Wyeth	5.45		04/01/17	1,010,092
305	Wyeth	5.50		02/15/16	311,493
					1,321,585
	Property - Casualty Insurers (1.5%)
2,500	Mantis Reef Ltd. - 144A* (Cayman Islands)	4.692		11/14/08	2,518,902
2,545	Platinum Underwriters Finance Inc. (Series B)	7.50		06/01/17	2,560,499
					5,079,401
	Railroads (1.1%)
1,825	Burlington Santa Fe Corp.	6.125		03/15/09	1,860,653
1,835	Union Pacific Corp.	5.45		01/31/13	1,890,485
					3,751,138
	Real Estate Development (0.4%)
1,171	World Financial Properties - 144A*	6.91		09/01/13	1,119,652
149	World Financial Properties - 144A*	6.95		09/01/13	144,749
					1,264,401
	Restaurants (0.6%)
1,750	Tricon Global Restaurants, Inc.	8.875		04/15/11	1,929,909
	Savings Banks (3.4%)
500	Household Finance Corp.	4.125		11/16/09	492,476
1,140	Household Finance Corp.	6.375		10/15/11	1,172,733
1,915	Household Finance Corp.	8.00		07/15/10	2,021,932
4,655	Sovereign Bancorp, Inc.	5.114		03/23/10	4,459,397
3,630	Washington Mutual Inc.	8.25		04/01/10	3,159,479
					11,306,017
	Services to the Health Industry (0.6%)
1,830	Medco Health Solutions	7.125		03/15/18	1,878,416
	Tobacco (0.2%)
795	Reynolds American Inc.	6.50		07/15/10	814,875
	Total Corporate Bonds (Cost $271,545,711)				265,807,245
	U.S. Government Agencies (0.6%)
3	Federal Home Loan Mortgage Corp.	11.50		05/01/19	3,076
	Federal Home Loan Mortgage Corp. Gold
3		6.50		12/01/28	3,137
24		8.50		01/01/22 - 12/01/34	26,799
	Federal National Mortgage Assoc.
101		7.50		06/01/28 - 04/01/32	108,519
1,245		8.00		11/01/29 - 05/01/32	1,351,025
2		9.00		12/01/21 - 01/01/25	2,235
	Government National Mortgage Assoc.
1		7.50		04/15/24	775
428		8.00		11/15/24 - 11/15/29	469,159
75		8.50		09/15/21 - 05/15/27	82,648
66		9.00		08/15/24	72,567
2		10.00		05/15/16	2,462
	Total U.S. Government Agencies
	(Cost $2,015,054)				2,122,402
	Commercial Mortgage-Backed Securities (9.2%)
	Banc of America Commercial Mortgage Inc.
2,000	2007-3 A4	5.658	+	06/10/49	1,978,563
1,425	2007-2 A4	5.688	+	04/10/49	1,417,833
1,500	Bear Stearns Commercial Mortgage Securities Inc. 2007-PW16 A4	5.712	+	06/11/40	1,493,247
2,000	Citigroup Commercial Mortgage Trust 2007-C6 A4	5.889	+	06/10/17	1,988,918
3,000	Cmmercial Mortgage Pass-Through Certificate 2007-C9 A4	5.816	+	12/10/49	3,005,094
2,225	Greenwich Capital Commercial Funding Corp. 2007-GG9 A4	5.444		03/10/39	2,169,545

2,825			GS Mortgage Securities Corporation II 2007-GG10 A4	5.799	+	08/10/45	2,826,747
			JP Morgan Chase Commercial Mortgage Securities
975			2007-CB18 A4	5.44		06/12/47	948,948
1,800			2007-CB19 A4	5.747	+	02/12/49	1,791,168
2,200			2007-LD11 A4	6.007	+	06/15/49	2,202,342
1,475			LB Commercial Conduit Mortgage Trust 2007-C3 A4	5.933	+	07/15/44	1,491,083
975			LB-UBS Commercial Mortgage Trust 2007-C2 A3	5.43		02/15/40	948,603
1,500			LB-UBS Commercial Mortgage Trust 2007-C6 A4	5.858		07/15/40	1,498,994
			Wachovia Bank Commercial Mortgage Trust
2,300			2007-C30 A5	5.342		12/15/43	2,222,066
2,700			2007-C32 A3	5.741	+	06/15/49	2,680,969
2,200			2007-C33 A4	6.10	+	02/15/51	2,221,814
			Total Commercial Mortgage-Backed Securities (Cost $30,595,220)				30,885,934
			Collateralized Mortgage Obligations (0.6%)
1,084			American Home Mortgage Assets 2007-5 A3	2.899	+	06/25/47	532,807
			Countrywide Alternative Loan Trust
994			2005-51 B1	3.536	+	11/20/35	318,006
647			2005-81 M1	3.299	+	02/25/37	274,953
500			2006-0A16 M4	3.119	+	10/25/46	50,000
550			Harborview Mortgage Loan Trust 2006-8 B4	3.149	+	08/21/36	110,000
900			Lehman XS Trust 2007-4N M4	3.599	+	03/25/47	275,063
498			Luminent Mortgage Trust 2006-5 B1	2.959	+	07/25/36	214,969
975			Master Adjustable Rate Mortgages Trust 2007-3 1M1	3.449	+	05/25/47	165,750
			Total Collateralized Mortgage Obligations (Cost $4,840,369)				1,941,548
			Asset-Backed Securities (4.0%)
1,250			Capital One Multi-Asset Execution Ser 2007-A7 A7	5.75		07/15/20	1,193,750
1,220			Citibank Credit Card Issuance Trust 2007-A8 A8	5.65		09/20/19	1,191,358
1,375			Discover Card Master Trust 2007-A1 A1	5.65		03/16/20	1,326,712
3,100			Ford Credit Auto Owner Trust 2007-A A3A	5.40		08/15/11	3,187,264
2,950			GS Auto Loan Trust 2007-1 A3	5.39		12/15/11	2,998,588
1,191			Harley-Davidson Motorcycle Trust 2004-2 A2	3.56		02/15/12	1,191,513
2,425			TXU Electric Delivery Transition Bond Co. LLC 2004-1 A2	4.81		11/17/14	2,484,791
24			USAA Auto Owner Trust 2005-1 A3	3.90		07/15/09	23,525
			Total Asset-Backed Securities (Cost $13,520,228)				13,597,501
			Foreign Government Obligation (0.7%)
MXN		18,385	Mexican Fixed Rate Bonds (Series M20) (Mexico)	9.50		12/18/14	1,920,598
$	659		Republic of Argentina (Argentina)	8.28		12/31/33	536,935
			Total Foreign Government Obligation (Cost $2,402,816)				2,457,533
			Short-Term Investment (7.0%)
			U.S. Government Obligations (a) (0.9%)
3,135			U.S. Treasury Bills**
			(Cost $3,133,735)	0.45 - 3.15		04/01/08	3,133,735

NUMBER OF
SHARES (000)
	Investment Company (b) (6.1%)
20,588	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class ***
	(Cost $20,588,283)			20,588,283
	Total Short-Term Investment
	(Cost $23,722,018)			23,722,018
	Total Investments
	(Cost $348,641,416) (c) (d)	101.0	%	340,534,181
	Liabilities in Excess of Other Assets	(1.0	)	(3,491,830		)
	Net Assets	100.0	%	$	337,042,351

MXN	Mexican New Peso.
*	Resale is restricted to qualified institutional investors.
**	A portion of this security has been physically segregated in connection with open futures contracts in the amount of $622,240.
***	May include cash designated as collateral in connection with open swap contracts.
+	Floating rate security, rate shown is the rate in effect at March 31, 2008.
(a)	Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.
(b)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(c)	Securities have been designated as collateral in amount equal to $136,959,081 in connection with securities purchased on a forward commitment basis, forward foreign currency contracts and open futures contracts.
(d)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In			Significant		Significant
			Active Market for			Other Observable		Unobservable
			Identical Assets			Inputs		Inputs
	Total		(Level 1)			(Level 2)		(Level 3)
Investments in Securities	$	340,534,181	$	20,588,283		$	319,945,898	—
Other Financial Instruments*	12,589,855		(1,344,369		)	13,934,224		—
Total	$	353,124,036	$	19,243,914		$	333,880,122	$	0

* Other financial instruments include futures, forwards, and swap contracts.

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5)credit default/interest rate swaps are marked-to-market daily based upon quotations from market makers; (6) futures are valued at the latest price published by the commodities exchange on which they trade; (7) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees. Occasionally,

developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (8) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (9) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (10) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Futures Contracts Open at March 31, 2008:

							UNREALIZED
NUMBER OF			DESCRIPTION, DELIVERY	UNDERLYING FACE			APPRECIATION
CONTRACTS		LONG/SHORT	MONTH AND YEAR	AMOUNT AT VALUE			(DEPRECIATION)
314		Long	U.S.Treasury Notes 5 Year,
			June 2008	$	35,869,595		$	414,429
52		Long	U.S.Treasury Notes 2 Year,
			June 2008	11,162,126			71,238
20		Long	U.S.Treasury Bonds 20 Year,
			June 2008	2,375,938			(28,170		)
597		Short	U.S.Treasury Notes 10 Year,
			June 2008	(71,015,019		)	(1,801,866		)
	Net Unrealized Depreciation						$	(1,344,369	)

Interest Rate Swap Contracts Open at March 31, 2008:

		NOTIONAL		PAYMENTS	PAYMENTS		UNREALIZED
		AMOUNT		RECEIVED	MADE	TERMINATION	APPRECIATION
COUNTERPARTY		(000’S)		BY FUND	BY FUND #	DATE	(DEPRECIATION)
Bank of America, N.A.		$	22,940	Fixed Rate 5.550%	Floating Rate 0.000%	February 22, 2018	$	450,542
Bank of America, N.A.		22,760		Fixed Rate 5.637	Floating Rate 0.000	March 7, 2018	513,693
Bank of America, N.A.		29,275		Floating Rate 0.000	Fixed Rate 5.957	February 22, 2023	(412,778		)
Bank of America, N.A.		29,260		Floating Rate 0.000	Fixed Rate 6.040	March 7, 2023	(479,864		)
Citibank Capital Market		8,000		Fixed Rate 5.448	Floating Rate 3.096	August 9, 2017	906,400
Citibank N.A. New York		16,500		Fixed Rate 5.274	Floating Rate 3.331	October 25, 2037	1,681,185
Deutsche Bank		75,550		Fixed Rate 5.388	Floating Rate 5.030	May 25, 2017	8,199,442
Deutsche Bank		11,600		Fixed Rate 5.428	Floating Rate 5.061	August 9, 2017	1,294,676
JPMorgan Chase Co.		21,200		Fixed Rate 5.454	Floating Rate 5.131	June 4, 2017	2,405,776
JPMorgan Chase Co.		7,800		Fixed Rate 5.448	Floating Rate 5.061	August 9, 2017	882,414
JPMorgan Chase Co.		11,400		Fixed Rate 5.131	Floating Rate 4.582	December 4, 2017	(487,692		)
JPMorgan Chase N.A. New York		25,500		Fixed Rate 2.598	Floating Rate 3.966	March 25, 2018	236,130
JPMorgan Chase N.A. New York		38,500		Fixed Rate 2.598	Floating Rate 3.966	March 25, 2018	356,510
	Net Unrealized Appreciation						$	15,546,434

# Floating Rate represents USD-3 Months LIBOR

Credit Default Swap Contracts Open at March 31, 2008:

		NOTIONAL					UNREALIZED
SWAP COUNTERPARTY &	BUY/SELL	AMOUNT		INTEREST		TERMINATION	APPRECIATION
REFERENCE OBLIGATION	PROTECTION	(000’S)		RATE		DATE	(DEPRECIATION)
Goldman Sachs International
DJ CDX, N.A.	Sell	$	3,360	1.40	%	December 20, 2012	$	(71,090	)
Goldman Sachs International
DJ CDX, N.A.	Sell	3,520		1.40		December 20, 2012	(78,702		)
Goldman Sachs International
DJ CDX, N.A.	Sell	3,460		1.40		December 20, 2012	(67,031		)
Goldman Sachs International
DJ CDX, N.A.	Sell	7,530		1.40		December 20, 2012	(141,213		)
Merril Lynch, Inc.
DJ CDX, N.A.	Sell	6,090		1.40		December 20, 2012	169,438
Goldman Sachs International
DJ CDX, N.A.	Sell	5,360		0.60		December 20, 2012	(106,641		)
Goldman Sachs International
DJ CDX, N.A.	Sell	1,810		0.60		December 20, 2012	(16,627		)
Goldman Sachs International
DJ CDX, N.A.	Sell	3,525		0.80		December 20, 2012	(14,742		)
J.P. Morgan Chase
SLM Corp.	Sell	955		4.95		March 20, 2013	(110,435		)
Merril Lynch, Inc.
SLM Corp.	Sell	955		5.00		March 20, 2013	(108,857		)
Lehman Brothers, Inc.
ABX.HE Indices	Buy	960		0.18		July 25, 1945	(52,714		)
Credit Suisse
ABX.HE Indices	Buy	960		0.18		July 25, 1945	(43,119		)
Credit Suisse
Arrow Electronics, Inc.	Buy	2,140		1.00		March 20, 2015	11,259
Lehman Brothers, Inc.
Arrow Electronics, Inc.	Buy	325		1.04		March 20, 2018	2,540
Lehman Brothers, Inc.
Arrow Electronics, Inc.	Buy	2,225		1.40		March 20, 2013	—
Credit Suisse
Arrow Electronics, Inc.	Buy	500		1.11		March 20, 2013	(2,310		)
UBS Securities
American Standard, Inc.	Buy	1,875		0.50		March 20, 2013	14,121
UBS Securities
American Standard, Inc.	Buy	1,970		0.60		March 20, 2018	14,682
Goldman Sachs International
American Standard, Inc.	Buy	605		0.50		March 20, 2013	4,556

Goldman Sachs International
American Standard, Inc.	Buy	230	0.60	March 20, 2018	1,714
Goldman Sachs International
Avalonbay Communities	Buy	3,275	3.05	March 20, 2013	(25,165	)
Bank of America, N.A.
Carnival Corp.	Buy	1,985	1.57	March 20, 2018	(27,155	)
Merril Lynch, Inc.
Carnival Corp.	Buy	1,640	1.57	March 20, 2018	(22,437	)
Merril Lynch, Inc.
Carnival Corp.	Buy	1,955	1.50	March 20, 2018	(16,444	)
Merril Lynch, Inc.
Carnival Corp.	Buy	1,085	1.60	March 20, 2018	(13,988	)
Goldman Sachs International
Carnival Corp.	Buy	160	1.60	March 20, 2018	(2,063	)
Bank of America, N.A.
Centurytel Inc.	Buy	905	0.88	September 20, 2017	50,765
Goldman Sachs International
Chubb Corp.	Buy	3,900	0.10	March 20, 2012	70,660
Lehman Brothers, Inc.
CMBX NA S-1 AAA	Buy	9,380	0.10	October 12, 1952	(558,723	)
Lehman Brothers, Inc.
CMBX NA S-1 AAA	Buy	9,475	0.10	October 12, 1952	(612,951	)
Lehman Brothers, Inc.
CMBX NA S-1 AAA	Buy	11,725	0.10	October 12, 1952	(790,332	)
Goldman Sachs International
Coca-Cola Enterprises, Inc.	Buy	3,395	0.587	March 20, 2013	(6,882	)
Lehman Brothers, Inc.
Coca-Cola Enterprises, Inc.	Buy	1,520	0.64	March 20, 2013	(6,761	)
Citigroup, Inc.
Covidien	Buy	767	0.43	March 20, 2012	91
Citigroup, Inc.
Covidien	Buy	400	0.43	March 20, 2012	48
Goldman Sachs International
Dell, Inc.	Buy	1,960	0.22	March 20, 2012	35,178
Merril Lynch, Inc.
Disney (Walt) Co.	Buy	3,325	0.77	March 20, 2013	—
Merril Lynch, Inc.
Disney (Walt) Co.	Buy	3,135	0.60	March 20, 2013	(10,781	)
Goldman Sachs International
DJ CDX, N.A.	Buy	7,850	0.75	December 20, 2011	629,293
Goldman Sachs International
Dupont El Nemour	Buy	555	0.43	March 20, 2013	1,122
Citigroup, Inc.
Eaton Corp.	Buy	1,570	0.62	March 20, 2013	11,888
J.P. Morgan Chase
Eaton Corp.	Buy	550	0.60	March 20, 2013	4,667
Citigroup, Inc.
Eaton Corp.	Buy	1,250	0.72	March 20, 2013	3,757
Citigroup, Inc.
Eaton Corp.	Buy	885	0.82	March 20, 2018	7,509
Goldman Sachs International
Eaton Corp.	Buy	1,085	0.97	March 20, 2018	(3,763	)
Merril Lynch, Inc.
Eaton Corp.	Buy	1,235	0.92	March 20, 2018	636
UBS Securities
Ely Lilly Co.	Buy	2,785	0.30	March 20, 2013	17,359
Goldman Sachs International
Ely Lilly Co.	Buy	685	0.33	March 20, 2013	3,322
Goldman Sachs International
Firstenergy Corp.	Buy	3,260	1.25	March 20, 2013	(18,005	)
Goldman Sachs International
Gap Inc.	Buy	2,360	1.19	March 20, 2012	(28,849	)
Lehman Brothers, Inc.
Goodrich (B.F.) Co.	Buy	810	0.46	March 20, 2018	9,325
Lehman Brothers, Inc.
Goodrich (B.F.) Co.	Buy	1,130	0.45	March 20, 2018	13,930
Goldman Sachs International
Goodrich (B.F.) Co.	Buy	1,000	0.47	March 20, 2018	10,697
Bank of America, N.A.
Goodrich (B.F.) Co.	Buy	1,410	0.70	March 20, 2013	(13,209	)
Bank of America, N.A.
Goodrich (B.F.) Co.	Buy	965	0.82	March 20, 2018	(17,203	)
Goldman Sachs International
Hartford Life Inc.	Buy	3,900	0.12	December 20, 2011	170,621
Goldman Sachs International
Lehman Brothers, Inc.	Buy	1,710	4.40	March 20, 2013	(100,531	)
Goldman Sachs International
Lehman Brothers, Inc.	Buy	3,750	4.75	March 20, 2013	(274,440	)
UBS Securities
Martin Marietta Materials	Buy	1,570	1.78	March 20, 2013	21,116
UBS Securities
Martin Marietta Materials	Buy	1,570	1.73	March 20, 2018	34,245

Bank of America, N.A.
Merril Lynch Co.		Buy	1,075	3.25	March 20, 2013	(25,199		)
Goldman Sachs International
Merril Lynch Co.		Buy	645	3.25	March 20, 2013	(15,119		)
Lehman Brothers, Inc.
Metlife Inc.		Buy	1,840	2.15	March 20, 2013	(52,262		)
Deutsche Securities Inc.
MGIC Investment Corp.		Buy	615	8.15	March 20, 2013	(42,313		)
Goldman Sachs International
Motorola Inc.		Buy	1,270	0.15	December 20, 2011	117,930
Goldman Sachs International
Motorola Inc.		Buy	2,640	0.157	December 20, 2011	244,533
J.P. Morgan Chase
Nordstrom Inc.		Buy	1,070	1.07	March 20, 2018	22,006
J.P. Morgan Chase
Nordstrom Inc.		Buy	1,070	1.15	March 20, 2018	15,398
Bank of America, N.A.
Nordstrom Inc.		Buy	1,400	1.03	March 20, 2018	33,114
Credit Suisse
Nordstrom Inc.		Buy	3,295	1.04	March 20, 2013	31,830
Credit Suisse
Nordstrom Inc.		Buy	1,710	1.05	March 20, 2013	15,749
Credit Suisse
Pactiv Corp.		Buy	2,200	1.35	March 20, 2013	950
Bank of America, N.A.
Pactiv Corp.		Buy	2,200	1.375	March 20, 2013	(1,514		)
Deutsche Securities Inc.
Pactiv Corp.		Buy	750	1.34	March 20, 2013	659
J.P. Morgan Chase
Pepsi Bottling Group Inc.		Buy	1,165	0.63	March 20, 2013	(6,185		)
J.P. Morgan Chase
Pepsi Bottling Group Inc.		Buy	855	0.58	March 20, 2013	(2,574		)
Citigroup, Inc.
Pitney Bowes Inc.		Buy	2,220	0.48	March 20, 2013	22,153
Credit Suisse
PMI Group Inc.		Buy	530	8.10	March 20, 2013	(22,859		)
Goldman Sachs International
Prologis		Buy	1,435	3.33	March 20, 2013	14,940
Goldman Sachs International
Sealed Air Corp.		Buy	585	1.24	March 20, 2018	14,474
Goldman Sachs International
Sealed Air Corp.		Buy	1,205	1.08	March 20, 2018	44,403
Bank of America, N.A.
Sealed Air Corp.		Buy	900	1.12	March 20, 2018	30,436
Bank of America, N.A.
Sealed Air Corp.		Buy	650	1.08	March 20, 2018	23,952
Goldman Sachs International
Simon Property Group		Buy	2,120	2.32	March 20, 2018	(107,098		)
Goldman Sachs International
Simon Property Group		Buy	2,650	2.37	March 20, 2018	(143,715		)
Bank of America, N.A.
Textron Financial Corp.		Buy	1,065	0.80	March 20, 2018	64,505
UBS Securities
Textron Financial Corp.		Buy	1,820	1.06	March 20, 2013	(5,354		)
Goldman Sachs International
Textron Financial Corp.		Buy	1,845	1.05	March 20, 2013	41,968
UBS Securities
Textron Financial Corp.		Buy	770	1.01	March 20, 2013	19,345
UBS Securities
Textron Financial Corp.		Buy	935	1.00	March 20, 2013	23,488
Bank of America, N.A.
Toll Brothers Inc.		Buy	1,695	2.90	March 20, 2013	11,702
Bank of America, N.A.
Toll Brothers Inc.		Buy	845	2.25	March 20, 2018	8,165
Citigroup, Inc.
Tyco Electronics		Buy	767	0.43	March 20, 2012	23,179
Citigroup, Inc.
Tyco Electronics		Buy	400	0.43	March 20, 2012	12,093
Citigroup, Inc.
Tyco International Ltd		Buy	767	0.43	March 20, 2012	23,186
Citigroup, Inc.
Tyco International Ltd		Buy	400	0.43	March 20, 2012	12,097
Goldman Sachs International
Union Pacific Corp.		Buy	1,950	0.20	December 20, 2011	22,203
Goldman Sachs International
Washington Mutual		Buy	135	6.50	March 20, 2013	(7,706		)
Deutsche Securities Inc.
Washington Mutual		Buy	1,745	5.00	June 20, 2013	(10,212		)
Bank of America, N.A.
Yum! Brands Inc.		Buy	1,515	1.25	March 20, 2013	(14,439		)
Bank of America, N.A.
Yum! Brands Inc.		Buy	235	1.18	March 20, 2013	(1,494		)
	Net Unrealized Depreciation					$	(1,612,210	)

Morgan Stanley Variable Investment Series - High Yield Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

PRINCIPAL
AMOUNT IN			COUPON		MATURITY
THOUSANDS			RATE		DATE	VALUE
		Corporate Bonds (96.0%)
		Advertising/Marketing Services (3.1%)
$	327	Dex Media West/Finance	9.875	%	08/15/13	$	285,307
810		Idears Inc.	8.00		11/15/16	528,525
220		Interpublic Group of Companies, Inc. (The)	6.25		11/15/14	178,475
380		Valassis Communications, Inc. 144A*	8.25		03/01/15	314,450
						1,306,757
		Aluminum (1.1%)
500		Novelis, Inc. (Canada)	7.25		02/15/15	445,000
		Apparel/Footwear (1.5%)
225		Oxford Industries, Inc.	8.875		06/01/11	214,875
405		Phillips-Van Heusen Corp.	7.25		02/15/11	405,000
						619,875
		Apparel/Footwear Retail (0.8%)
330		Brown Shoe Co., Inc.	8.75		05/01/12	328,350
		Auto Parts: O.E.M. (0.9%)
420		ArvinMeritor, Inc.	8.75		03/01/12	386,400
		Beverages: Alcoholic (0.5%)
210		Constellation Brands, Inc. - 144A*	7.25		05/15/17	204,750
		Broadcasting (0.8%)
260		LIN Television Corp.	6.50		05/15/13	242,450
190		Univision Communications  - 144A*	9.75		03/15/15	115,900
						358,350
		Building Products (1.9%)
275		Interface Inc.	9.50		02/01/14	286,000
145		Interface Inc.	10.375		02/01/10	152,250
505		Nortek Inc.	8.50		09/01/14	376,225
						814,475
		Cable/Satellite TV (4.2%)
565		Cablevision Systems Corp. (Series B)	9.644	**	04/01/09	563,587
182		CCH I LLC/CCH I Cap Co.	11.00		10/01/15	127,400
125		CCH II/CCH II	10.25		09/15/10	114,375
35		DIRECTV Holdings LLC/Financing Co., Inc.	6.375		06/15/15	32,812
100		Echostar DBS Corp.	6.375		10/01/11	96,250
330		Echostar DBS Corp.	6.625		10/01/14	301,125
45		Intelsat Sub holdings Co. Ltd. (Bermuda)	8.25		01/15/13	45,562
440		Intelsat Sub holdings Co. Ltd. (Bermuda)	8.625		01/15/15	445,500
65		NTL Cable PLC (United Kingdom)	8.75		04/15/14	58,663
						1,785,274
		Casino/Gaming (6.4%)
4,485		Aladdin Gaming Holdings/Capital Corp. LLC (Series B) (a) (b) (e)	13.50		03/01/10	0
800		Harrah’s Operating Co., Inc.	5.375		12/15/13	520,000
765		Isle of Capri Casinos	7.00		03/01/14	548,887
555		Las Vegas Sands Corp.	6.375		02/15/15	492,563
515		MGM Mirage Inc.	6.00		10/01/09	513,713
7,210		Resort At Summerlin LP/Ras Co. (Series B) (a) (b) (e)	13.00	@	12/15/07	0
700		Station Casinos, Inc.	6.00		04/01/12	577,500
85		Station Casinos, Inc.	7.75		08/15/16	68,850
						2,721,513
		Chemicals: Agricultural (0.7%)
295		Terra Capital Inc. (Series B)	7.00		02/01/17	292,419
		Chemicals: Major Diversified (0.6%)
290		Westlake Chemical Corp.	6.625		01/15/16	255,200
		Chemicals: Specialty (2.6%)
160		Innophos Holdings Inc. - 144A*	9.50		04/15/12	150,400
270		Innophos, Inc.	8.875		08/15/14	263,250
250		Koppers Holdings, Inc.	9.875	#	11/15/14	218,125
175		Koppers Industry Inc.	9.875		10/15/13	184,625
275		Nalco Co.	7.75		11/15/11	279,813
						1,096,213

			Coal (1.4%)
140			Foundation PA Coal Co.	7.25	08/01/14	139,300
460			Massey Energy Co.	6.875	12/15/13	447,350
						586,650
			Containers/Packaging (4.3%)
405			Berry Plastics Holding Corp.	8.875	09/15/14	355,387
160			Berry Plastics Holdings Corp. - 144A*	10.25	03/01/16	124,000
155			Graham Packaging Company Inc.	8.50	10/15/12	140,275
350			Graham Packaging Company Inc.	9.875	10/15/14	295,750
430			Graphic Packaging International Corp.	9.50	08/15/13	414,950
460			Owens-Illinois, Inc.	7.50	05/15/10	472,650
						1,803,012
			Data Processing Services (0.8%)
345			Sungard Data Systems Inc.	9.125	08/15/13	350,175
			Drugstore Chains (1.0%)
410			Rite Aid Corp.	8.125	05/01/10	401,800
			Electric Utilities (4.8%)
270			AES Corp. (The)	7.75	03/01/14	273,037
42			AES Corp. (The)	8.875	02/15/11	44,205
54			AES Corp. (The)	9.375	09/15/10	57,375
285			Intergen - 144A*	9.00	06/30/17	299,250
275			IPALCO Enterprises, Inc.	8.375	11/14/08	279,812
115			IPALCO Enterprises, Inc.	8.625	11/14/11	121,613
265			Reliant Energy Inc.	7.875	06/15/17	265,000
235			Texas Comp Ekectric Holding Co. - 144A*	10.25	11/01/15	235,294
435			Texas Comp Ekectric Holding Co. - 144A*	10.25	11/01/15	435,544
						2,011,130
			Electrical Products (1.5%)
120			Balder Electric Co.	8.625	02/15/17	119,400
512			Ormat Funding Corp.	8.25	12/30/20	517,041
						636,441
			Environmental Services (1.5%)
280			Allied Waste North America, Inc.	5.75	02/15/11	275,100
355			Allied Waste North America, Inc.	7.875	04/15/13	366,981
						642,081
			Finance/Rental/Leasing (4.2%)
775			Capmark Financial Group Inc. - 144A*	5.875	05/10/12	491,423
35			Capmark Financial Group Inc. - 144A*	6.30	05/10/17	21,017
640			Ford Motor Credit Co LLC.	7.00	10/01/13	499,743
755			Ford Motor Credit Co LLC.	7.25	10/25/11	620,633
190			Residential Capital Corp.	8.375	06/30/10	96,425
130			Residential Capital LLC	6.50	04/17/13	63,700
						1,792,941
			Financial Conglomerates (1.1%)
600			General Motors Acceptance Corp. LLC.	6.875	09/15/11	459,546
			Food Retail (1.6%)
163			CA FM Lease Trust - 144A*	8.50	07/15/17	187,167
125			Delhaize America, Inc.	9.00	04/15/31	150,843
210			Supervalu Inc.	7.50	05/15/12	215,040
120			Supervalu Inc.	7.50	11/15/14	121,800
						674,850
			Food: Meat/Fish/Dairy (3.1%)
290			Michael Foods Inc. (Series B)	8.00	11/15/13	284,200
480			Pilgrim’s Pride Corp.	7.625	05/01/15	464,400
535			Smithfield Foods, Inc. (Series B)	8.00	10/15/09	545,700
						1,294,300
			Forest Products (1.0%)
120			Crown Americas, Inc. - 144A*	7.625	11/15/13	123,000
EUR		200	Crown Euro Holdings SA (France)	6.25	09/01/11	302,332
						425,332
			Gas Distributors (0.9%)
$	285		DYNEGY Holdings Inc.- 144A*	7.75	06/01/19	267,900
130			Equitable Resources, Inc.	6.50	04/01/18	130,901
						398,801
			Home Building (0.1%)
40			Pulte Homes, Inc.	6.375	05/15/33	31,400
			Home Furnishings (0.7%)
355			Jarden Corp.	7.50	05/01/17	312,400

	Hospital/Nursing Management (4.7%)
260	Community Health Systems - 144A*	8.875	07/15/15	262,275
255	HCA, Inc.	5.75	03/15/14	211,650
385	HCA, Inc	6.25	02/15/13	336,875
150	HCA, Inc.	6.50	02/15/16	127,125
200	HCA, Inc.	8.70	02/10/10	200,626
35	HCA, Inc.	8.75	09/01/10	35,175
15	HCA, Inc	9.125	11/15/14	15,487
210	Sun Healthcare Group Inc. - 144A*	9.125	04/15/15	203,700
505	Tenet Healthcare Corp.	7.375	02/01/13	453,238
130	Tenet Healthcare Corp.	9.875	07/01/14	126,425
				1,972,576
	Industrial Specialties (1.5%)
560	Johnsondiversy, Inc.	9.625	05/15/12	554,400
68	UCAR Finance, Inc.	10.25	02/15/12	70,720
				625,120
	Information Technology Services (0.4%)
215	VANGENT, INC	9.625	02/15/15	173,613
	Integrated Oil (0.2%)
90	Cimarex Energy Co.	7.125	05/01/17	89,775
	Media Conglomerates (1.1%)
491	Canwest Media Inc. (Canada)	8.00	09/15/12	468,906
	Medical Specialties (2.0%)
475	Fisher Scientific International, Inc.	6.125	07/01/15	473,753
65	Invacare Corp.	9.75	02/15/15	65,650
				539,403
	Medical/Nursing Services (2.7%)
330	DaVita Inc. - 144A*	6.625	03/15/13	321,750
370	FMC Finance III SA - 144A*	6.875	07/15/17	371,850
755	Fresenius Medical Care Capital Trust	7.875	06/15/11	787,087
				1,480,687
	Miscellaneous Commercial Services (1.2%)
505	Iron Mountain Inc.	8.625	04/01/13	512,575
	Miscellaneous Manufacturing (0.1%)
320	Propex Fabrics Inc.	10.00	12/01/12	40,000
	Motor Vehicles (0.4%)
215	General Motors Corp.	8.375	07/15/33	152,650
	Oil & Gas Pipelines (4.5%)
670	Colorado Interstate Gas Co.	6.80	11/15/15	694,125
375	Pacific Energy Partners/Finance	7.125	06/15/14	397,239
735	Williams Companies, Inc. (The)	7.875	09/01/21	800,231
				1,891,595
	Oil & Gas Production (3.9%)
445	Chaparral Energy, Inc.	8.50	12/01/15	389,375
70	Chaparral Energy, Inc. - 144A*	8.875	02/01/17	61,075
430	Chesapeake Energy Corp.	7.50	09/15/13	445,050
28	Chesapeake Energy Corp.	7.75	01/15/15	28,980
525	Hilcorp Energy/Finance - 144A*	7.75	11/01/15	494,812
250	Opti Canada Inc.- 144A* (Canada)	8.25	12/15/14	248,750
				1,668,042
	Oilfield Services/Equipment (1.1%)
205	CIE Gener de Geophysique S.A. (France)	7.50	05/15/15	209,100
250	Helix Energy Solutions -144A*	9.50	01/15/16	251,250
				460,350
	Other Transportation (1.4%)
610	CHC Helicopter Corp. (Canada)	7.375	05/01/14	610,762
	Pharmaceuticals: Major (0.6%)
260	Warner Chilcott Corp.	8.75	02/01/15	261,300
	Precious Metals (0.6%)
240	Freeport-McMoran C & G	8.375	04/01/17	255,300

			Pulp & Paper (1.0%)
340			Georgia Pacific Corp. - 144A*	7.125		01/15/17	316,200
110			Glatfelter P.H. - 144A*	7.125		05/01/16	108,625
							424,825
			Real Estate Development (0.5%)
315			Realogy Corp. - 144A*	10.50		04/15/14	213,413
			Real Estate Investment Trusts (1.6%)
390			Host Marriott LP	6.375		03/15/15	364,650
335			Host Marriott LP	7.125		11/01/13	329,975
							694,625
			Restaurants (0.6%)
25			Aramark Corp. - 144A*	8.411	**	02/01/15	22,188
75			Aramark Corp. - 144A*	8.50		02/01/15	75,562
165			Aramark Services Inc.	5.00		06/01/12	144,375
							242,125
			Savings Banks (0.5%)
300			Washington Mutual Pfd - 144A*	9.75		10/29/49	229,825
			Semiconductors (0.7%)
365			Freescale Semiconductor - 144A*	8.875		12/15/14	287,437
			Services to the Health Industry (2.2%)
135			LVB Acquisition Merger	10.375		10/15/17	140,738
155			Medco Health Solutions	7.125		03/15/18	159,101
270			National Mentor Holdings Inc.	11.25		07/01/14	278,100
345			Omnicare Inc.	6.75		12/15/13	309,638
70			Omnicare Inc.	6.875		12/15/15	61,250
							948,827
			Specialty Stores (1.9%)
150			Asbury Automotive Group - 144A*	7.625		03/15/17	119,250
520			Sonic Automotive, Inc.	8.625		08/15/13	483,600
230			United Auto Group	7.75		12/15/16	200,100
							802,950
			Specialty Telecommunications (2.5%)
230			American Tower Corp.	7.125		10/15/12	236,325
310			American Tower Corp.	7.50		05/01/12	318,525
125			Citizens Communications	6.25		01/15/13	113,750
98			Panamsat Corp.	9.00		08/15/14	99,225
148			Qwest Communications International	6.565	**	02/15/09	147,260
125			Winstream Corp.	8.125		08/01/13	123,438
							1,038,523
			Telecommunications (1.9%)
357			Axtel SA (Mexico)	11.00		12/15/13	389,130
613			Exodus Communications, Inc. (a) (b) (e)	11.625		07/15/10	0
135			Nordic Tel Company - 144A* (Denmark)	8.875		05/01/16	131,625
4,679			Rhythms Netconnections, Inc. (a) (b) (e)	12.75		04/15/09	0
EUR		110	TDC AS (Denmark)	6.50		04/19/12	165,456
$	100		U.S. West Communications Corp.	5.625		11/15/08	100,000
							786,211
			Tobacco (0.7%)
295			Reynolds American Inc.	6.50		07/15/10	302,375
			Wholesale Distributors (1.0%)
440			RBS Global & Rexnold Corp.	9.50		08/01/14	413,600
			Wireless Telecommunications (0.7%)
300			Wind Acquisition Finance SA - 144A* (Luxembourg)	10.75		12/01/15	307,500
			Total Corporate Bonds (Cost $57,336,863)				40,330,325
			Convertible Bond (0.3%)
			Telecommunication Equipment
139			Nortel Networks Corp. (Canada)
			(Cost $138,244)	4.25		09/01/08	137,958
			Foreign Government Obligation (0.6%)
MXN		2,360	Mexican Fixed Rate Bonds
			(Cost $240,273)	9.50		12/18/14	246,539

		Collateralized Mortgage Obligations (0.5%)
		Finance/Rental/Leasing
$	159	American Home Mortgage Assets - 2006-4 1A3	2.909	10/25/46	79,528
156		Countrywide Alternative Loan Trust - 2006-0A21 A3	2.816	03/20/47	75,055
100		Master Adjustable Rate Mortgage Trust - 2007-3 1M2	3.699	05/25/47	39,537
		Total Collateralized Mortgage Obligations
		(Cost $351,923)			194,120
		Senior Loans (0.5%)
		Finance - Commercial
237		First Data Corp.	5.349	09/24/14	213,720
18		First Data Corp.	5.446	09/24/14	15,842
265		Sandridge Energy	8.625	04/01/15	262,019
		Total Senior Loans
		(Cost $512,048)			491,581
NUMBER OF
SHARES
		Common Stocks (0.1%)
		Casino/Gaming (d) (e) (0.0%)
2,000		Fitzgeralds Gaming Corp. +			0
		Food: Specialty/Candy (c) (d) (e) (0.0%)
2,375		SFAC New Holdings Inc. ++			0
436		SFFB New Holdings Inc.			0
					0
		Restaurants (c) (d) (e) (0.1%)
3,374		American Restaurant Group Holdings, Inc. (Class A)			26,992
92,158		Catalina Restaurant Group (escrow)			922
					27,914
		Specialty Telecommunications (c) (d)  (0.0%)
12,688		Birch Telecom Inc. +++ (e)			127
131,683		PFB Telecom NV (Series B) (e)			0
565		XO Holdings, Inc.			734
					861
		Telecommunications (c) (d) (0.0%)
2,251		Viatel Holdings Bermuda Ltd. (Bermuda)			27
		Textiles (c) (d) (e) (0.0%)
298,461		U.S. Leather, Inc.			0
		Wireless Telecommunications (c) (0.0%)
521		USA Mobility, Inc.			3,720
		Total Common Stocks
		(Cost $41,768,507)			32,522
NUMBER OF				EXPIRATION
WARRANTS				DATE
		Warrants (d) (0.0%)
		Casino/Gaming (e) (0.0%)
83,500		Aladdin Gaming Enterprises, Inc. - 144A*		03/01/10	0
		Personnel Services (e) (0.0%)
42,250		Comforce Corp. - 144A*		12/01/09	0
		Specialty Telecommunications (c) (0.0%)
1,132		XO Holdings, Inc. (Series A)		01/16/10	113
849		XO Holdings, Inc. (Series B)		01/16/10	42
849		XO Holdings, Inc. (Series C)		01/16/10	34
					189
		Total Warrants
		(Cost $128,405)			189
NUMBER OF
SHARES (000)
		Short-Term Investment (1.5%)
		Investment Company (f) (1.2%)
521		Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class ##
		(Cost $520,655)			520,655

PRINCIPAL
AMOUNT IN			COUPON	MATURITY
THOUSANDS			RATE	DATE
		U.S. Government Obligation (g) (0.3%)
$	120	U.S. Treasury Bills***
		(Cost $119,905)	3.15	04/01/08		119,905
		Total Short-term Investments
		(Cost $640,560)				640,560
		Total Investments
		(Cost $101,116,823) (h) (i)		99.5	%	42,073,794
		Other Assets in Excess of Liabilities		0.5		206,238
		Net Assets		100.0	%	$	42,280,032

MXN	Mexican New Peso.
*	Resale is restricted to qualified institutional investors.
**	Floating rate security, rate shown is the rate in effect at March 31, 2008.
***	Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.
@	Payment-in-kind security.
#	Currently a zero coupon bond and is scheduled to pay interest at the rate shown at a future specified date.
##	May include cash designated as collateral in connection with open swap contracts.
+	Resale is restricted; acquired (12/22/98) at a cost basis of $9,020.
++	Resale is restricted; acquired (06/10/99) at a cost basis of $24.
+++	Resale is restricted; acquired (between 03/06/98 and 08/25/98) at a cost basis of $6,473,685.
(a)	Issuer in bankruptcy.
(b)	Non-income producing security; bond in default.
(c)	Acquired through exchange offer.
(d)	Non-income producing securities.
(e)	Securities with a total market value equal to $28,041 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.
(f)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(g)	The security has been physically segregated in connection with open futures contracts in the amount of $106,460.
(h)	Securities have been designated as collateral in amount equal to $12,793,939 in connection with securities purchased on a forward commitment basis, forward foreign currency contracts and open futures contracts.
(i)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In			Significant		Significant
			Active Market for			Other Observable		Unobservable
			Identical Assets			Inputs		Inputs
	Total		(Level 1)			(Level 2)		(Level 3)
Investments in Securities	$	42,073,794	$	524,375		$	41,521,378	$	28,041
Other Financial Instruments*	414,068		(201,924		)	$	615,992	—
Total	$	42,487,862	$	322,451		$	42,137,370	$	28,041

* Other financial instruments include futures, forwards, and swap contracts.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in
	Securities
Beginning Balance	$	28,041
Net purchases (sales)	0
Transfers in and/or out	0
Change in unrealized appreciation/depreciation	0
Realized gains (losses)	0
Ending Balance	$	28,041
Net change in unrealized appreciation/ depreciation from investments still held as of March 31, 2008	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5)credit default/interest rate swaps are marked-to-market daily based upon quotations from market makers; (6) futures are valued at the latest price published by the commodities exchange on which they trade; (7) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.  Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (8) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (9) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (10) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Forward Foreign Currency Contract Open at March 31, 2008:

CONTRACT TO		IN EXCHANGE		DELIVERY	UNREALIZED
DELIVER		FOR		DATE	DEPRECIATION
EUR	300,000	$	441,900	04/30/08	$	(31,241	)

Currency Abbreviations:

EUR                         Euro.

Futures Contracts Open at March 31, 2008:

							UNREALIZED
NUMBER OF			DESCRIPTION, DELIVERY	UNDERLYING FACE			APPRECIATION
CONTRACTS		LONG/SHORT	MONTH AND YEAR	AMOUNT AT VALUE			(DEPRECIATION)
14		Long	U.S.Treasury Notes 2 Year,
			June 2008	$	3,005,188		$	16,920
6		Long	U.S.Treasury Notes 5 Year,
			June 2008	685,406			9,517
12		Short	U.S.Treasury Bonds 20 Year,
			June 2008	(1,425,563		)	(33,211		)
60		Short	U.S.Treasury Notes 10 Year,
			June 2008	(7,137,188		)	(195,150		)
	Net Unrealized Depreciation						$	(201,924	)

Interest Rate Swap Contracts Open at March 31, 2008:

		NOTIONAL		PAYMENTS	PAYMENTS		UNREALIZED
		AMOUNT		RECEIVED	MADE	TERMINATION	APPRECIATION
COUNTERPARTY		(000’S)		BY FUND	BY FUND #	DATE	(DEPRECIATION)
Bank of America, N.A.		$	2,890	Fixed Rate 5.550%	Floating Rate 0.000%	February 22, 2018	$	56,760
Bank of America, N.A.		2,890		Fixed Rate 5.637%	Floating Rate 0.000%	March 7, 2018	65,227
Bank of America, N.A.		3,685		Floating Rate 0.000%	Fixed Rate 5.957%	February 22, 2023	(51,959		)
Bank of America, N.A.		3,715		Floating Rate 0.000%	Fixed Rate 6.040%	March 7, 2023	(60,926		)
Citibank N.A. New York		2,800		Fixed Rate 5.004%	Floating Rate 3.243%	October 31, 2017	217,392
JPMorgan Chase N.A. New York		7,000		Fixed Rate 4.902%	Floating Rate 3.070%	November 20, 2017	483,210
	Net Unrealized Appreciation						$	709,704

# Floating Rate represents USD-3 Months LIBOR

Credit Default Swap Contracts Open at March 31, 2008:

		NOTIONAL					UNREALIZED
SWAP COUNTERPARTY &	BUY/SELL	AMOUNT		INTEREST		TERMINATION	APPRECIATION
REFERENCE OBLIGATION	PROTECTION	(000’S)		RATE		DATE	(DEPRECIATION)
Goldman Sachs International
DJ CDX, N.A.	Sell	$	475	1.40	%	December 20, 2012	$	4,138
Merril Lynch, Inc.
DJ CDX, N.A.	Sell	770		1.40		December 20, 2012	21,423
Lehman Brothers, Inc.
DJ CDX, N.A.	Sell	1,485		3.75		December 20, 2012	(71,492		)
Goldman Sachs International
Qwest Capital Funding, Inc.	Sell	110		3.25		December 20, 2012	(10,085		)
J.P. Morgan Chase
SLM Corp.	Sell	120		4.95		March 20, 2013	(13,877		)
Merril Lynch, Inc.
SLM Corp.	Sell	120		5.00		March 20, 2013	(13,678		)
Lehman Brothers, Inc.
ABX.HE Indices	Buy	75		0.18		July 25, 1945	(4,118		)
Credit Suisse
ABX.HE Indices	Buy	75		0.18		July 25, 1945	(3,369		)
UBS Securities
American Standard, Inc.	Buy	235		0.50		March 20, 2013	1,770
UBS Securities
American Standard, Inc.	Buy	250		0.60		March 20, 2018	1,863
Goldman Sachs International
American Standard, Inc.	Buy	80		0.50		March 20, 2013	602
Goldman Sachs International
American Standard, Inc.	Buy	40		0.60		March 20, 2018	298
Credit Suisse
Arrow Electronics, Inc.	Buy	275		1.00		March 20, 2015	1,447
Lehman Brothers, Inc.
Arrow Electronics, Inc.	Buy	60		1.04		March 20, 2018	469
Lehman Brothers, Inc.
Arrow Electronics, Inc.	Buy	630		1.40		March 20, 2013	—
Credit Suisse
Arrow Electronics, Inc.	Buy	330		1.11		March 20, 2013	(1,525		)
Goldman Sachs International
Avalonbay Communities	Buy	415		3.05		March 20, 2013	(3,189		)
Bank of America, N.A.
Carnival Corp.	Buy	255		1.57		March 20, 2018	(3,488		)
Merril Lynch, Inc.
Carnival Corp.	Buy	215		1.57		March 20, 2018	(2,941		)
Merril Lynch, Inc.
Carnival Corp.	Buy	250		1.50		March 20, 2018	(2,103		)
Merril Lynch, Inc.
Carnival Corp.	Buy	140		1.60		March 20, 2018	(1,805		)
Goldman Sachs International
Coca-Cola Enterprises, Inc.	Buy	430		0.587		March 20, 2013	(872		)

Lehman Brothers, Inc.
Coca-Cola Enterprises, Inc.	Buy	385	0.64	March 20, 2013	(1,712	)
Merril Lynch, Inc.
Disney (Walt) Co.	Buy	630	0.77	March 20, 2013	—
Merril Lynch, Inc.
Disney (Walt) Co.	Buy	395	0.60	March 20, 2013	(1,358	)
Citigroup, Inc.
Eaton Corp.	Buy	200	0.62	March 20, 2013	1,514
J.P. Morgan Chase
Eaton Corp.	Buy	75	0.60	March 20, 2013	636
Citigroup, Inc.
Eaton Corp.	Buy	150	0.72	March 20, 2013	451
Citigroup, Inc.
Eaton Corp.	Buy	330	0.82	March 20, 2018	2,800
Goldman Sachs International
Eaton Corp.	Buy	145	0.97	March 20, 2018	(503	)
Merril Lynch, Inc.
Eaton Corp.	Buy	145	0.92	March 20, 2018	75
Goldman Sachs International
Firstenergy Corp.	Buy	410	1.25	March 20, 2013	(2,264	)
Lehman Brothers, Inc.
Goodrich (B.F.) Co.	Buy	100	0.46	March 20, 2018	1,151
Lehman Brothers, Inc.
Goodrich (B.F.) Co.	Buy	140	0.45	March 20, 2018	1,726
Goldman Sachs International
Goodrich (B.F.) Co.	Buy	120	0.47	March 20, 2018	1,284
Bank of America, N.A.
Goodrich (B.F.) Co.	Buy	180	0.70	March 20, 2013	(1,686	)
Bank of America, N.A.
Goodrich (B.F.) Co.	Buy	125	0.82	March 20, 2018	(2,228	)
UBS Securities
Martin Marietta Materials	Buy	100	1.78	March 20, 2013	1,345
UBS Securities
Martin Marietta Materials	Buy	100	1.73	March 20, 2018	2,181
Deutsche Securities Inc.
MGIC Investment Corp.	Buy	50	8.15	March 20, 2013	(3,440	)
Goldman Sachs International
Merril Lynch Co.	Buy	230	2.45	March 20, 2013	2,295
J.P. Morgan Chase
Merril Lynch Co.	Buy	220	2.30	March 20, 2013	3,574
Lehman Brothers, Inc.
Metlife Inc.	Buy	245	2.15	March 20, 2013	(6,960)
J.P. Morgan Chase
Nordstrom Inc.	Buy	135	1.07	March 20, 2018	2,776
J.P. Morgan Chase
Nordstrom Inc.	Buy	135	1.15	March 20, 2018	1,943
Bank of America, N.A.
Nordstrom Inc.	Buy	170	1.03	March 20, 2018	4,021
Credit Suisse
Nordstrom Inc.	Buy	415	1.04	March 20, 2013	4,009
Credit Suisse
Nordstrom Inc.	Buy	215	1.05	March 20, 2013	1,980
Goldman Sachs International
Nordstrom Inc.	Buy	215	1.05	March 20, 2013	11,872
Credit Suisse
Pactiv Corp.	Buy	375	1.35	March 20, 2013	162
Bank of America, N.A.
Pactiv Corp.	Buy	375	1.375	March 20, 2013	(258	)
Deutsche Securities Inc.
Pactiv Corp.	Buy	125	1.34	March 20, 2013	110
J.P. Morgan Chase
Pepsi Bottling Group Inc.	Buy	150	0.63	March 20, 2013	(796	)
J.P. Morgan Chase
Pepsi Bottling Group Inc.	Buy	110	0.58	March 20, 2013	(331	)
Credit Suisse
PMI Group Inc.	Buy	40	8.10	March 20, 2013	(1,725	)
Goldman Sachs International
Prologis	Buy	185	3.33	March 20, 2013	1,926
Goldman Sachs International
Sealed Air Corp.	Buy	75	1.24	March 20, 2018	1,854

Goldman Sachs International
Sealed Air Corp.		Buy	155	1.08	March 20, 2018	5,712
Bank of America, N.A.
Sealed Air Corp.		Buy	110	1.12	March 20, 2018	3,720
Bank of America, N.A.
Sealed Air Corp.		Buy	85	1.08	March 20, 2018	3,132
Goldman Sachs International
Simon Property Group		Buy	270	2.32	March 20, 2018	(13,640		)
Goldman Sachs International
Simon Property Group		Buy	340	2.37	March 20, 2018	(18,439		)
Bank of America, N.A.
Textron Financial Corp.		Buy	205	0.80	March 20, 2018	12,416
UBS Securities
Textron Financial Corp.		Buy	350	1.06	March 20, 2013	(1,030		)
Goldman Sachs International
Textron Financial Corp.		Buy	360	1.05	March 20, 2013	8,189
UBS Securities
Textron Financial Corp.		Buy	140	1.01	March 20, 2013	3,517
UBS Securities
Textron Financial Corp.		Buy	180	1.00	March 20, 2013	4,522
UBS Securities
Toll Brothers Inc.		Buy	335	2.90	March 20, 2013	2,308
Bank of America, N.A.
Toll Brothers Inc.		Buy	215	2.90	March 20, 2013	1,484
Bank of America, N.A.
Toll Brothers Inc.		Buy	110	2.25	March 20, 2018	1,063
Deutsche Securities Inc.
Washington Mutual		Buy	225	5.00	June 20, 2013	(1,317		)
	Net Unrealized Depreciation					$	(62,471	)

Morgan Stanley Variable Investment Series - Utilities Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (99.6%)
	Cable/Satellite TV (2.3%)
169,500	Comcast Corp. (Class A)*	$	3,278,130
	Electric Utilities (59.6%)
207,300	AES Corp. (The)*	3,455,691
68,000	Allegheny Energy, Inc.*	3,434,000
42,300	Ameren Corp.	1,862,892
68,800	American Electric Power Co., Inc.	2,864,144
201,300	CMS Energy Corp.	2,725,602
53,600	Consolidated Edison, Inc.	2,127,920
48,200	Constellation Energy Group	4,254,614
105,500	Dominion Resources, Inc.	4,308,620
63,900	DPL, Inc.	1,638,396
34,400	DTE Energy Co.	1,337,816
153,332	Duke Energy Corp.	2,736,976
87,600	Edison International	4,294,152
26,700	Entergy Corp.	2,912,436
61,000	Exelon Corp.	4,957,470
63,500	FirstEnergy Corp.	4,357,370
71,400	FPL Group, Inc.	4,479,636
107,000	Northeast Utilities	2,625,780
136,500	NRG Energy, Inc.*	5,322,135
48,200	NSTAR	1,466,726
109,100	PG&E Corp.	4,017,062
93,700	PPL Corp.	4,302,704
97,000	Public Service Enterprise Group Inc.	3,898,430
78,300	SCANA Corp.	2,864,214
113,500	Southern Co. (The)	4,041,735
68,100	Wisconsin Energy Corp.	2,995,719
		83,282,240
	Energy (17.5%)
79,100	AGL Resources, Inc.	2,714,712
216,161	Dynegy, Inc. (Class A)*	1,705,510
56,600	Equitable Resources, Inc.	3,333,740
87,000	MDU Resources Group, Inc.	2,135,850
53,550	New Jersey Resources Corp.	1,662,728
62,300	Questar Corp.	3,523,688
81,300	Sempra Energy	4,331,664
70,416	Spectra Energy Corp.	1,601,964
102,300	Williams Companies, Inc. (The)	3,373,854
		24,383,710
	Telecommunications (20.1%)
39,500	America Movil SAB de C.V. (Series L) (ADR) (Mexico)	2,515,755
27,900	American Tower Corp. (Class A)*	1,093,959
176,621	AT&T Inc.	6,764,584
6,300	China Mobile Ltd. (ADR) (Hong Kong)	472,563
66,900	Citizens Communications Co.	701,781
42,700	Crown Castle International Corp.*	1,472,723
16,600	NII Holdings Inc.*	527,548
72,700	Rogers Communications, Inc. (Class B)	2,611,384
26,100	SBA Communications Corp.*	778,563
50,500	Telefonica S.A.	1,451,035
20,360	Telefonica S.A. (ADR) (Spain)	1,761,344
21,300	Telus Corp. (Non-Voting) (Canada)	897,486
45,100	Time Warner Telecom Inc. (Class A)*	698,599
153,820	Verizon Communications, Inc.	5,606,739

64,865	Windstream Corp.	775,137
		28,129,200
	Total Common Stocks
	(Cost $83,576,947)	139,073,280

NUMBER OF
SHARES (000)
	Short-Term Investment (a) (0.8%)
	Investment Company
1,160	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class
	(Cost $1,160,108)			1,160,108
	Total Investments
	(Cost $84,737,055) (b)	100.4	%	140,233,388
	Liabilities in Excess of Other Assets	(0.4	)	(602,367		)
	Net Assets	100.0	%	$	139,631,021

ADR	American Depositary Receipt.
*	Non-income producing security.
(a)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(b)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant	Significant
			Active Market for		Other Observable	Unobservable
			Identical Assets		Inputs	Inputs
	Total		(Level 1)		(Level 2)	(Level 3)
Investments in Securities	$	140,233,388	$	140,233,388	—	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - Income Builder Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (59.3%)
	Aerospace & Defense (1.1%)
9,290	Raytheon Co.	$	600,227
	Air Freight/Couriers (0.5%)
2,700	FedEx Corp.	250,209
	Airlines (0.1%)
3,700	UAL Corp.	79,661
	Beverages: Non-Alcoholic (1.0%)
8,670	Coca-Cola Co. (The)	527,743
	Cable/Satellite TV (0.6%)
17,138	Comcast Corp. (Class A)*	331,449
	Chemicals: Major Diversified (2.4%)
13,930	Bayer AG (ADR) (Germany)	1,121,305
3,870	Du Pont (E.I.) de Nemours & Co.	180,961
		1,302,266
	Computer Communications (0.5%)
10,800	Cisco Systems, Inc.*	260,172
	Computer Peripherals (0.1%)
4,560	EMC Corp.*	65,390
	Computer Processing Hardware (0.7%)
8,161	Hewlett-Packard Co.	372,631
	Department Stores (0.3%)
8,200	Macy’s, Inc.	189,092
	Discount Stores (2.5%)
24,880	Wal-Mart Stores, Inc.	1,310,678
	Drugstore Chains (0.2%)
27,680	Rite Aid Corp.*	81,379
	Electric Utilities (3.8%)
16,610	American Electric Power Co., Inc.	691,474
6,273	Entergy Corp.	684,259
6,800	FirstEnergy Corp.	466,616
4,100	NRG Energy, Inc.	159,859
		2,002,208
	Electronics/Appliances (0.4%)
5,570	Sony Corp. (ADR) (Japan)	223,190
	Finance/Rental/Leasing (0.6%)
12,704	Freddie Mac	321,665
	Financial Conglomerates (3.4%)
22,106	Citigroup, Inc.	473,511
30,728	JPMorgan Chase & Co.	1,319,768
		1,793,279
	Food: Major Diversified (2.5%)
7,910	ConAgra Foods Inc.	189,445
12,738	Kraft Foods Inc. (Class A)	395,005
21,420	Unilever N.V. (NY Registered Shares) (Netherlands)	722,497
		1,306,947
	Food: Specialty/Candy (0.9%)
11,360	Cadbury Schweppes PLC (ADR) (United Kingdom)	502,339

	Home Improvement Chains (0.4%)
7,510	Home Depot, Inc. (The)	210,055
	Household/Personal Care (1.6%)
5,020	Estee Lauder Companies, Inc. (The) (Class A)	230,167
4,380	Kimberly-Clark Corp.	282,729
4,490	Procter & Gamble Co. (The)	314,614
		827,510
	Industrial Conglomerates (3.3%)
20,710	General Electric Co.	766,477
5,880	Siemens AG (ADR) (Germany)	640,567
7,610	Tyco International Ltd. (Bermuda)	335,221
		1,742,265
	Insurance Brokers/Services (1.5%)
32,990	Marsh & McLennan Companies, Inc.	803,307
	Integrated Oil (2.6%)
1,300	BP PLC (ADR) (United Kingdom)	78,845
2,668	ConocoPhillips	203,328
5,270	Exxon Mobil Corp.	445,737
9,370	Royal Dutch Shell PLC (ADR) (Class A) (United Kingdom)	646,343
		1,374,253
	Investment Banks/Brokers (1.1%)
16,203	Charles Schwab Corp. (The)	305,102
6,775	Merrill Lynch & Co., Inc.	276,014
		581,116
	Life/Health Insurance (0.4%)
14,898	Aegon N.V. (NY Registered Shares) (Netherlands)	218,107
	Major Banks (2.3%)
12,445	Bank of America Corp.	471,790
7,376	PNC Financial Services Group, Inc.	483,644
4,483	SunTrust Banks, Inc.	247,193
		1,202,627
	Major Telecommunications (2.9%)
3,976	Embarq Corp.	159,438
11,340	France Telecom S.A. (ADR) (France)	380,797
11,618	Sprint Nextel Corp.	77,724
24,974	Verizon Communications, Inc.	910,302
		1,528,261
	Managed Health Care (0.1%)
1,880	CIGNA Corp.	76,272
	Media Conglomerates (3.0%)
55,994	Time Warner, Inc.	785,036
20,230	Viacom Inc. (Class B)*	801,513
		1,586,549
	Medical Specialties (1.4%)
5,390	Applera Corp. - Applied Biosystems Group	177,115
20,610	Boston Scientific Corp.*	265,251
6,650	Covidien Ltd. (Bermuda)	294,263
		736,629
	Motor Vehicles (0.3%)
5,490	Honda Motor Co., Ltd. (ADR) (Japan)	158,167
	Multi-Line Insurance (0.7%)
4,627	Hartford Financial Services Group, Inc. (The)	350,588
	Oil & Gas Pipelines (0.4%)
7,160	Williams Companies, Inc. (The)	236,137
	Oil & Gas Production (1.5%)
1,850	Devon Energy Corp.	193,011
8,260	Occidental Petroleum Corp.	604,384
		797,395
	Oilfield Services/Equipment (0.5%)
2,840	Schlumberger Ltd. (Netherlands Antilles)	247,080

	Other Consumer Services (1.0%)
17,000	eBay Inc.	507,280
	Packaged Software (0.6%)
4,620	Oracle Corp.*	90,367
13,160	Symantec Corp.*	218,719
		309,086
	Pharmaceuticals: Major (6.4%)
17,050	Abbott Laboratories	940,308
23,280	Bristol-Myers Squibb Co.	495,864
7,080	Novartis AG (ADR) (Switzerland)	362,708
5,410	Roche Holdings Ltd. (ADR) (Switzerland)	511,110
40,790	Schering-Plough Corp.	587,784
11,990	Wyeth	500,702
		3,398,476
	Precious Metals (0.8%)
9,260	Newmont Mining Corp.	419,478
	Property - Casualty Insurers (2.4%)
11,390	Chubb Corp. (The)	563,577
14,575	Travelers Companies, Inc. (The)	697,414
		1,260,991
	Restaurants (0.4%)
13,260	Starbucks Corp.*	232,050
	Savings Banks (0.2%)
11,820	Sovereign Bancorp, Inc.	110,162
	Semiconductors (0.5%)
13,029	Intel Corp.	275,954
	Specialty Stores (0.3%)
13,402	Office Depot, Inc.*	148,092
	Telecommunication Equipment (0.6%)
54,890	Alcatel-Lucent (ADR) (France)	316,166
	Tobacco (0.9%)
6,710	Altria Group, Inc.	148,962
6,710	Philip Morris International Inc.	339,392
		488,354
	Total Common Stocks
	(Cost $30,808,081)	31,662,932

PRINCIPAL
AMOUNT IN			COUPON		MATURITY
THOUSANDS			RATE		DATE
		Convertible Bonds (19.8%)
		Beverages: Alcoholic (2.8%)
$	1,200	Molson Coors Brewing Co.	2.50	%	07/30/13	1,480,500
		Electric Utilities (0.8%)
173		PG&E Corp.	9.50		06/30/10	446,340
		Electronic Production Equipment (2.1%)
1,100		Veeco Instruments, Inc.	4.125		12/21/08	1,094,500
		Household/Personal Care (3.3%)
1,000		Church & Dwight Co., Inc. - 144A**	5.25		08/15/33	1,775,000
		Internet Retail (1.8%)
901		Amazon.com, Inc.	4.75		02/01/09	952,808
		Media Conglomerates (2.2%)
1,080		Walt Disney Co. (The)	2.125		04/15/23	1,158,300
		Precious Metals (2.3%)
1,000		Newmont Mining Corp.	1.25		07/15/14	1,220,000

	Semiconductors (2.7%)
1,450	Intel Corp. - 144A**		2.95	12/15/35	1,430,062
	Wholesale Distributors (1.9%)
1,200	WESCO International Inc.		1.75	11/15/26	1,000,500
	Total Convertible Bonds
	(Cost $9,477,999)				10,558,010
	Corporate Bonds (11.2%)
	Building Products (2.4%)
1,200	American Standard, Inc.		8.25	06/01/09	1,264,301
	Home Building (2.1%)
1,200	Toll Corp.		8.25	02/01/11	1,095,000
	Hotels/Resorts/Cruiselines (3.9%)
2,000	Starwood Hotels & Resorts Worldwide, Inc	.	7.875	05/01/12	2,090,218
	Industrial Specialties (2.9%)
1,500	Buckeye Technologies Inc.		8.50	10/01/13	1,522,500
	Total Corporate Bonds
	(Cost $6,269,625)				5,972,019

NUMBER OF
SHARES
	Convertible Preferred Stocks (4.9%)
	Life/Health Insurance # (0.2%)
4,100	MetLife, Inc. $1.5938	121,770
	Motor Vehicles (1.4%)
46,000	General Motors Corp. (Series B) $1.3125	748,254
	Pharmaceuticals: Major (1.1%)
4,000	Schering-Plough Corp. $3.00	612,720
	Real Estate Investment Trusts (0.8%)
9,000	Equity Residential Properties Trust (Series E)  $1.75	419,940
	Telecommunication Equipment (1.3%)
1,000	Lucent Technologies Capital Trust I $77.50	700,000
	Total Convertible Preferred Stocks
	(Cost $3,446,408)	2,602,684
	Investment Trusts/Mutual Funds (1.7%)
23,803	Financial Select Sector SPDR Fund	591,981
25,960	iShares MSCI Japan Index Fund ETF	321,125
	Total Investment Trusts/Mutual Funds
	(Cost $1,018,951)	913,106

NUMBER OF
SHARES (000)
	Short-Term Investment (a) (1.0%)
	Investment Company
522	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class
	(Cost $522,433)			522,433
	Total Investments
	(Cost $51,543,497) (b)	97.9	%	52,231,184
	Other Assets in Excess of Liabilities	2.1		1,109,063
	Net Assets	100.0	%	$	53,340,247

ADR	American Depositary Receipt.
ETF	Exchange Traded Fund.
*	Non-income producing security.
**	Resale is restricted to qualified institutional investors.
#	As of March 31, 2008 there were no transactions of MetLife, Inc. convertible preferred common stock, an affiliate of the Portfolio.
(a)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(b)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	52,231,184	$	34,388,435	$	17,842,749	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which

valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - Dividend Growth Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (97.5%)
	Aerospace & Defense (2.5%)
83,226	Northrop Grumman Corp.	$	6,475,815
60,100	Raytheon Co.	3,883,061
		10,358,876
	Apparel/Footwear (0.7%)
39,449	VF Corp.	3,057,692
	Beverages: Non-Alcoholic (3.7%)
212,851	PepsiCo, Inc.	15,367,842
	Chemicals: Agricultural (1.2%)
42,838	Monsanto Co.	4,776,437
	Computer Communications (2.7%)
465,347	Cisco Systems, Inc.*	11,210,209
	Computer Peripherals (2.8%)
617,229	EMC Corp.*	8,851,064
83,700	Lexmark International, Inc. (Class A)*	2,571,264
		11,422,328
	Computer Processing Hardware (1.4%)
286,629	Dell Inc.*	5,709,650
	Contract Drilling (1.0%)
162,300	Patterson-UTI Energy, Inc.	4,249,014
	Data Processing Services (1.6%)
158,927	Automatic Data Processing, Inc.	6,736,916
	Department Stores (2.0%)
104,600	Kohl’s Corp.*	4,486,294
158,750	Macy’s, Inc.	3,660,775
		8,147,069
	Discount Stores (1.8%)
145,444	Target Corp.	7,371,102
	Drugstore Chains (1.8%)
185,237	CVS Caremark Corp.	7,503,951
	Electric Utilities (2.1%)
108,183	Exelon Corp.	8,792,032
	Financial Conglomerates (5.8%)
302,345	Citigroup, Inc.#	6,476,230
269,712	JPMorgan Chase & Co.	11,584,130
72,865	Prudential Financial, Inc.	5,701,686
		23,762,046
	Food: Major Diversified (1.2%)
159,848	Kraft Foods Inc. (Class A)	4,956,886
	Home Improvement Chains (1.3%)
198,100	Home Depot, Inc. (The)	5,540,857
	Household/Personal Care (4.3%)
253,424	Procter & Gamble Co. (The)	17,757,420

	Industrial Conglomerates (9.4%)
78,900	3M Co.	6,244,935
444,107	General Electric Co.	16,436,400
233,979	United Technologies Corp.	16,102,435
		38,783,770
	Information Technology Services (1.5%)
112,113	Accenture Ltd. (Class A) (Bermuda)	3,943,014
17,600	International Business Machines Corp.	2,026,464
		5,969,478
	Integrated Oil (5.7%)
97,100	BP PLC (ADR) (United Kingdom)	5,889,115
21,900	ConocoPhillips	1,668,999
187,173	Exxon Mobil Corp.	15,831,092
		23,389,206
	Internet Software/Services (1.0%)
8,891	Google Inc. (Class A)*	3,916,219
	Investment Banks/Brokers (2.2%)
24,288	Goldman Sachs Group, Inc. (The)	4,016,992
127,894	Merrill Lynch & Co., Inc.	5,210,402
		9,227,394
	Life/Health Insurance (1.8%)
39,142	Lincoln National Corp.	2,035,384
87,655	MetLife, Inc.##	5,282,090
		7,317,474
	Major Banks (3.9%)
134,900	Bank of America Corp.	5,114,059
144,787	Bank of New York Mellon Corp.	6,041,962
170,900	Wells Fargo & Co.	4,973,190
		16,129,211
	Major Telecommunications (2.1%)
167,600	AT&T Inc.	6,419,080
55,600	Verizon Communications, Inc.	2,026,620
		8,445,700
	Media Conglomerates (1.6%)
253,609	Time Warner, Inc.	3,555,598
75,400	Viacom Inc. (Class B)*	2,987,348
		6,542,946
	Medical Specialties (3.4%)
19,506	Alcon, Inc. (Switzerland)	2,774,729
167,300	Covidien Ltd. (Bermuda)	7,403,025
80,600	Medtronic, Inc.	3,898,622
		14,076,376
	Office Equipment/Supplies (1.3%)
149,406	Pitney Bowes Inc.	5,232,198
	Oil & Gas Production (1.8%)
122,493	XTO Energy, Inc.	7,577,417
	Oilfield Services/Equipment (4.4%)
91,776	Cameron International Corp.*	3,821,553
178,200	Halliburton Co.	7,008,606
28,479	Schlumberger Ltd. (Netherlands Antilles)	2,477,673
62,791	Weatherford International Ltd. (Bermuda)*	4,550,464
		17,858,296
	Other Consumer Services (1.6%)
223,303	eBay Inc.*	6,663,362
	Packaged Software (3.5%)
419,687	Microsoft Corp.	11,910,717
131,900	Oracle Corp.*	2,579,964
		14,490,681

	Pharmaceuticals: Major (5.9%)
146,935	Johnson & Johnson	9,531,673
317,224	Pfizer, Inc.	6,639,498
197,252	Wyeth	8,237,244
		24,408,415
	Precious Metals (1.9%)
175,600	Newmont Mining Corp.	7,954,680
	Semiconductors (2.3%)
444,024	Intel Corp.	9,404,428
	Steel (0.8%)
50,300	Nucor Corp.	3,407,322
	Tobacco (3.2%)
177,968	Altria Group, Inc.	3,950,890
177,968	Philip Morris International Inc.	9,001,621
		12,952,511
	Total Common Stocks
	(Cost $379,967,400)	400,467,411

NUMBER OF
SHARES (000)
	Short-Term Investment (a) (2.1%)
	Investment Company
8,395	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class (Cost $8,394,797)			8,394,797
	Total Investments (Cost $388,362,197) (b)	99.6	%	408,862,208
	Other Assets in Excess of Liabilities	0.4		1,666,803
	Net Assets	100.0	%	$	410,529,011

ADR	American Depositary Receipt.
*	Non-income producing security.
#	As of March 31, 2008 there were no transactions of Citigroup, Inc. common stock, an affiliate of the Portfolio.
##	As of March 31, 2008 the cost of purchases and sales of MetLife, Inc. common stock, an affiliate of the Portfolio, was $2,669,593 and $0, respectively, including net realized gain of $0.
(a)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser.Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(b)	The aggregate cost for federal income tax purposes approximates the aggregate cost  for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances

(unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant	Significant
			Active Market for		Other Observable	Unobservable
			Identical Assets		Inputs	Inputs
	Total		(Level 1)		(Level 2)	(Level 3)
Investments in Securities	$	408,862,208	$	408,862,208	—	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at net assets value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - Global Dividend Growth Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (97.4%)
	Australia # (2.6%)
	Beverages: Alcoholic
199,667	Foster’s Group Ltd.	$	934,277
	Construction Materials #
140,072	Boral Ltd. (a)	803,372
	Food: Major Diversified #
1,633,705	Goodman Fielder Ltd.	2,692,359
	Total Australia	4,430,008
	Bermuda (3.7%)
	Industrial Conglomerates
40,660	Ingersoll - Rand Ltd. (Class A) (a)	1,812,623
54,379	Tyco International Ltd.	2,395,395
		4,208,018
	Medical Specialties
45,808	Covidien Ltd.	2,027,004
	Total Bermuda	6,235,022
	France # (7.8%)
	Construction Materials
22,181	Lafarge S.A.	3,862,309
	Integrated Oil
40,084	Total S.A.	2,980,618
	Major Banks
45,456	BNP Paribas	4,593,572
	Pharmaceuticals: Major
24,363	Sanofi-Aventis	1,828,080
	Total France	13,264,579
	Germany (3.4%)
	Motor Vehicles #
32,697	Bayerische Motoren Werke (BMW) AG	1,805,356
37,246	Daimler AG (Registered Shares) (a)	3,181,884
		4,987,240
	Semiconductors
169,368	Qimonda AG (Sponsored ADR)* (a)	729,976
	Total Germany	5,717,216
	Ireland # (2.8%)
	Food: Specialty/Candy
84,860	Kerry Group PLC (A Shares)	2,659,699
	Major Banks
143,220	Bank of Ireland	2,132,224
	Total Ireland	4,791,923
	Italy # (1.2%)
	Integrated Oil
58,195	Eni SpA	1,983,726
	Japan # (11.3%)
	Auto Parts: O.E.M.
150,600	Keihin Corp. (a)	2,184,803
	Chemicals: Specialty
74,000	Kuraray Co., Ltd.	894,673

	Electrical Products
131,700	Sumitomo Electric Industries, Ltd. (a)	1,670,995
	Electronic Equipment/Instruments
50,000	Canon Inc.	2,317,020
	Household/Personal Care
92,000	Kao Corp.	2,609,075
	Motor Vehicles
193,500	Nissan Motor Co., Ltd. (a)	1,605,861
	Pharmaceuticals: Major
45,000	Takeda Pharmaceutical Co., Ltd.	2,275,531
	Pharmaceuticals: Other
31,400	Astellas Pharma Inc.	1,218,588
	Property - Casualty Insurers
127,000	Mitsui Sumitomo Insurance Co., Ltd.	1,282,996
	Recreational Products
50,700	Sankyo Co., Ltd. (a)	3,028,898
	Total Japan	19,088,440
	Netherlands # (4.8%)
	Food: Major Diversified
98,785	Unilever NV (Share Certificates)	3,319,444
	Industrial Conglomerates
17,191	Koninklijke (Royal) Philips Electronics NV (a)	658,179
	Life/Health Insurance
158,139	Aegon NV	2,329,714
	Publishing: Books/Magazines
65,497	Wolters Kluwer NV (Share Certificates)	1,735,420
	Total Netherlands	8,042,757
	Norway # (1.5%)
	Integrated Oil
87,099	StatoilHydro ASA	2,618,996
	Singapore # (1.1%)
	Other Transportation
1,360,000	ComfortDelGro Corp., Ltd.	1,809,271
	South Korea (0.7%)
	Wireless Telecommunications
53,753	SK Telecom Co., Ltd. (ADR) (a)	1,161,602
	Spain (4.0%)
	Major Banks
123,262	Banco Bilbao Vizcaya Argentaria, S.A.	2,714,679
	Major Telecommunications
140,160	Telefonica S.A.	4,027,268
	Total Spain	6,741,947
	Sweden # (1.0%)
	Telecommunication Equipment
862,162	Telefonaktiebolaget LM Ericsson (B Shares)	1,694,318
	Switzerland # (2.5%)
	Financial Conglomerates
26,502	UBS AG (Registered Shares)	771,366
	Pharmaceuticals: Major
66,462	Novartis AG (Registered Shares) (a)	3,408,110
	Total Switzerland	4,179,476

	Taiwan (0.9%)
	Major Telecommunications
58,868	Chunghwa Telecom Co., Ltd. (ADR) (WI) (a)	1,531,745
	United Kingdom (18.5%)
	Advertising/Marketing Services #
261,235	WPP Group PLC	3,115,351
	Aerospace & Defense #
191,274	Rolls-Royce Group PLC*	1,529,563
17,565,453	Rolls-Royce Group PLC (B Shares)	34,868
		1,564,431
	Financial Conglomerates #
643,177	Old Mutual PLC	1,410,186
	Food Retail #
497,264	Morrison (W.M.) Supermarkets PLC	2,719,869
	Food: Specialty/Candy #
390,665	Cadbury Schweppes PLC	4,290,884
596,721	Premier Foods PLC	1,329,161
		5,620,045
	Integrated Oil
45,503	Royal Dutch Shell PLC (ADR) (Class A)	3,138,797
	Major Banks #
437,571	Barclays PLC	3,961,647
288,083	Royal Bank of Scotland Group PLC	1,927,548
		5,889,195
	Publishing: Books/Magazines #
160,548	Reed Elsevier PLC	2,046,006
	Tobacco #
85,559	Imperial Tobacco Group PLC	3,935,845
	Wireless Telecommunications #
621,596	Vodafone Group PLC	1,861,268
	Total United Kingdom	31,300,993
	United States (29.6%)
	Aluminum
38,747	Alcoa, Inc.	1,397,217
	Coal
44,657	Peabody Energy Corp.	2,277,507
	Computer Peripherals
130,654	EMC Corp.*	1,873,578
	Computer Processing Hardware
44,057	Hewlett-Packard Co.	2,011,643
	Electric Utilities
21,791	American Electric Power Co., Inc.	907,159
35,005	Dominion Resources, Inc. (a)	1,429,604
		2,336,763
	Electronic Distributors
53,396	Arrow Electronics, Inc.*	1,796,775
	Finance/Rental/Leasing
54,091	American Capital Strategies, Ltd. (a)	1,847,749
59,742	Freddie Mac (a)	1,512,667
		3,360,416
	Financial Conglomerates
67,021	Citigroup, Inc.	1,435,590
	Forest Products
12,710	Weyerhaeuser Co.	826,658
	Industrial Machinery
35,408	Illinois Tool Works Inc.	1,707,728
	Information Technology Services
40,876	International Business Machines Corp. (a)	4,706,463

	Insurance Brokers/Services
89,473	Marsh & McLennan Companies, Inc.	2,178,668
	Integrated Oil
41,628	Chevron Corp.	3,553,366
	Major Banks
60,258	Bank of New York Mellon Corp.	2,514,566
	Major Telecommunications
30,346	AT&T Inc.	1,162,252
43,830	Verizon Communications, Inc.	1,597,603
		2,759,855
	Managed Health Care
75,580	UnitedHealth Group Inc.	2,596,929
	Multi-Line Insurance
35,063	American International Group, Inc.	1,516,475
	Pharmaceuticals: Major
61,040	Pfizer, Inc.	1,277,567
70,647	Schering-Plough Corp.	1,018,023
78,807	Wyeth	3,290,980
		5,586,570
	Tobacco
76,932	Altria Group, Inc.	1,707,890
76,932	Philip Morris International Inc.	3,891,221
		5,599,111
	Total United States	50,035,878
	Total Common Stocks (Cost $129,860,036)	164,627,897
	Investment Trusts/Mutual Funds (1.5%)
	Ireland #
83,257	iShares MSCI World Fund
	(Cost $2,534,577)	2,558,900

NUMBER OF
SHARES (000)
	Short-Term Investment (14.9%)
	Investment Company (b) (0.8%)
1,313	Morgan Stanley Institutional Liquidity Money Market Portfolio  - Institutional Class
	(Cost $1,312,731)	1,312,731

PRINCIPAL
AMOUNT IN
THOUSANDS
		Short-Term Debt Securities held as Collateral on Loaned Securities (14.1%)
$	590	Alliance and Leister PLC, 3.08%, 09/02/08 (c)	589,671
295		Bancaja, 4.04%, 11/12/08 (c)	294,836
295		Bank of New York Co., Inc. 3.07%, 08/08/08 (c)	294,836
294		BASF AG, 3.89%, 08/19/08 (c)	294,822
1,179		CAM U.S. Finance S.A. Unipersonal, 4.71%, 07/25/08 (c)	1,179,343
590		Canadian Imperial Bank N.Y., 2.42%, 07/28/08 (c)	589,671
1,061		CIT Group Holdings, 3.97%, 06/18/08 (c)	1,061,409
		Citigroup Global Markets, Inc.,
2,948		3.01%, 04/01/08	2,948,357
1,149		3.01%, 04/01/08	1,149,211
		First Tennessee Bank
295		2.84%, 08/15/08 (c)	294,836
1,179		2.85%, 08/15/08 (c)	1,179,322
295		Goldman Sachs Group, Inc., 2.89%, 09/12/08 (c)	294,836
295		HSBC Finance Corp., 3.10%, 08/05/08 (c)	294,836
1,179		IBM Corp., 3.09%, 09/08/08 (c)	1,179,343
590		Macquarie Bank Ltd., 2.62%, 08/20/08 (c)	589,671
885		Metropolitan Life Global Funding, 2.59%, 08/21/08 (c)	884,507
6,640		Morgan Stanley Institutional Liquidity Funds, 3.38%, 04/01/08	6,639,700
1,179		National Rural Utilities Coop., Fin., 3.13%, 09/02/08 (c)	1,179,343
684		Nationwide Building Society, 2.75%, 07/28/08 (c)	684,019
1,179		National Bank of Canada, 3.11%, 04/02/08 (c)	1,179,319
		Unicredito Italiano Bank (IRE) PLC,
649		2.84%, 08/14/08 (c)	648,639
413		3.09%, 08/08/08 (c)	412,770

Total Short-Term Debt Securities held as Collateral on Loaned Securities (Cost $23,863,297)			23,863,297
Total Short-Term Investments
(Cost $25,176,028)			25,176,028
Total Investments
(Cost $157,570,641) (d)	113.8	%	192,362,825
Liabilities in Excess of Other Assets	(13.8	)	(23,388,702		)
Net Assets	100.0	%	$	168,974,123

ADR	American Depositary Receipt.
WI	Security purchased on a when-issued basis.
*	Non-income producing security.
#	Securities with total market value equal to $97,611,829 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.
(a)	All or a portion of these securities were on loan at March 31, 2008. The total value of the loaned securities and related collateral outstanding were $23,066,230 and  $23,863,297, respectively.
(b)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity  Money Market Portfolio - Institutional Class.
(c)	Variable/Floating Rate Security - interest rate changes on these instruments are based on  changes in a designated base rate.  The rate shown are those in effect on March 31, 2008.
(d)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	192,362,825	$	70,887,699	$	121,475,126	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange

(“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at net assets value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - Global Dividend Growth Portfolio

Summary of Investments March 31, 2008 (unaudited)

			PERCENT OF
			TOTAL
INDUSTRY	VALUE		INVESTMENTS
Short-Term Investments	$	25,176,028	13.1	%
Major Banks	17,844,235		9.3
Integrated Oil	14,275,502		7.4
Pharmaceuticals: Major	13,098,291		6.8
Tobacco	9,534,957		5.0
Major Telecommunications	8,318,869		4.3
Food: Specialty/Candy	8,279,744		4.3
Motor Vehicles	6,593,101		3.4
Food: Major Diversified	6,011,803		3.1
Industrial Conglomerates	4,866,197		2.5
Information Technology Services	4,706,463		2.5
Construction Materials	4,665,681		2.4
Publishing: Books/Magazines	3,781,426		2.0
Financial Conglomerates	3,617,143		1.9
Finance/Rental/Leasing	3,360,416		1.7
Advertising/Marketing Services	3,115,351		1.6
Recreational Products	3,028,898		1.6
Wireless Telecommunications	3,022,870		1.6
Food Retail	2,719,869		1.4
Household/Personal Care	2,609,075		1.4
Managed Health Care	2,596,929		1.4
Miscellaneous	2,558,900		1.3
Electric Utilities	2,336,763		1.2
Life/Health Insurance	2,329,714		1.2
Electronic Equipment/Instruments	2,317,020		1.2
Coal	2,277,507		1.2
Auto Parts: O.E.M.	2,184,803		1.1
Insurance Brokers/Services	2,178,668		1.1
Medical Specialties	2,027,004		1.1
Computer Processing Hardware	2,011,643		1.0
Computer Peripherals	1,873,578		1.0
Other Transportation	1,809,271		0.9
Electronic Distributors	1,796,775		0.9
Industrial Machinery	1,707,728		0.9
Telecommunication Equipment	1,694,318		0.9
Electrical Products	1,670,995		0.9
Aerospace & Defense	1,564,431		0.8
Multi-Line Insurance	1,516,475		0.8
Aluminum	1,397,217		0.7
Property - Casualty Insurers	1,282,996		0.7
Pharmaceuticals: Other	1,218,588		0.6
Beverages: Alcoholic	934,277		0.5
Chemicals: Specialty	894,673		0.5
Forest Products	826,658		0.4
Semiconductors	729,976		0.4
	$	192,362,826	100.0	%

Morgan Stanley Variable Investment Series - European Equity

Portfolio of Investments March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (98.3%)
	Austria # (1.0%)
	Major Telecommunications
70,308	Telekom Austria AG	$	1,454,970
	Belgium # (1.7%)
	Other Metals/Minerals
45,763	Umicore	2,387,118
	France # (13.6%)
	Construction Materials
17,027	Lafarge S.A.	2,964,859
	Electric Utilities
26,227	Electricite de France (EDF) (a)	2,281,609
54,358	Suez S.A.	3,571,351
		5,852,960
	Electrical Products
21,286	Schneider Electric S.A.	2,753,743
	Major Banks
31,898	BNP Paribas	3,223,464
	Motor Vehicles
16,020	Renault S.A. (a)	1,772,521
	Pharmaceuticals: Major
34,540	Sanofi-Aventis	2,591,712
	Total France	19,159,259
	Germany # (13.5%)
	Chemicals: Major Diversified
32,782	Bayer AG	2,625,775
	Industrial Conglomerates
19,571	MAN AG	2,597,181
32,581	Siemens AG (Registered Shares)	3,535,807
		6,132,988
	Major Banks
62,565	Commerzbank AG	1,958,011
	Motor Vehicles
37,424	Bayerische Motoren Werke (BMW) AG	2,066,356
	Multi-Line Insurance
16,441	Allianz SE (Registered Shares)	3,259,955
14,901	Muenchener Rueckversicherungs-Gesellschaft AG (Registered Shares)	2,912,864
		6,172,819
	Total Germany	18,955,949
	Greece # (3.4%)
	Major Banks
49,287	National Bank of Greece S.A.	2,616,772
	Regional Banks
70,054	EFG Eurobank Ergasias	2,135,595
	Total Greece	4,752,367
	Italy # (4.2%)
	Integrated Oil
96,320	Eni SpA	3,283,314
	Major Banks
392,189	UniCredito Italiano SpA	2,621,780
	Total Italy	5,905,094

	Netherlands # (4.1%)
	Air Freight/Couriers
51,706	TNT NV	1,922,026
	Major Telecommunications
113,099	Koninklijke (Royal) KPN NV	1,914,903
	Publishing: Books/Magazines
70,682	Wolters Kluwer NV (Share Certificates)	1,872,803
	Total Netherlands	5,709,732
	Norway # (1.5%)
	Major Telecommunications
105,829	Telenor ASA*	2,033,892
	Spain (5.2%)
	Major Banks
141,625	Banco Bilbao Vizcaya Argentaria, S.A. (a)	3,119,099
	Major Telecommunications
146,100	Telefonica S.A.	4,197,944
	Total Spain	7,317,043
	Switzerland # (16.8%)
	Financial Conglomerates
64,491	UBS AG (Registered Shares)	1,877,073
	Food: Major Diversified
13,773	Nestle S.A. (Registered Shares) (a)	6,885,292
	Medical Specialties
6,251	Nobel Biocare Holding AG Bearer (a)	1,455,088
	Multi-Line Insurance
8,956	Zurich Financial Services AG (Registered Shares) (a)	2,823,037
	Other Consumer Specialties
44,749	Compagnie Financiere Richemont AG (Series A) (Units) @	2,512,959
	Pharmaceuticals: Major
77,182	Novartis AG (Registered Shares)	3,957,821
22,118	Roche Holding AG	4,164,562
		8,122,383
	Total Switzerland	23,675,832
	United Kingdom # (d) (33.3%)
	Aerospace & Defense
303,609	BAE Systems PLC	2,923,447
217,888	Rolls-Royce Group PLC*	1,742,387
19,828,659	Rolls-Royce Group PLC (B Shares)	39,361
		4,705,195
	Food Retail
330,709	Morrison (W.M.) Supermarkets PLC	1,808,868
385,058	Tesco PLC	2,908,533
		4,717,401
	Integrated Oil
140,997	BG Group PLC	3,265,163
176,077	Royal Dutch Shell PLC (A Shares)	6,074,711
		9,339,874
	Investment Managers
155,487	Man Group PLC	1,710,707
	Life/Health Insurance
170,547	Prudential PLC	2,251,996
	Major Banks
217,487	Barclays PLC	1,969,067
276,727	HSBC Holdings PLC	4,557,643
		6,526,710

	Other Metals/Minerals
51,465	Anglo American PLC	3,091,944
	Pharmaceuticals: Major
147,055	GlaxoSmithKline PLC	3,116,250
	Publishing: Books/Magazines
129,968	Reed Elsevier PLC	1,656,298
	Tobacco
89,048	British American Tobacco PLC	3,341,558
52,794	Imperial Tobacco Group PLC	2,428,605
		5,770,163
	Wireless Telecommunications
1,321,876	Vodafone Group PLC	3,958,143
	Total United Kingdom	46,844,681
	Total Common Stocks (Cost $111,161,524)	138,195,937
	Preferred Stock # (1.1%)
	Germany (1.1%)
	Medical Specialties
19,494	Fresenius SE (Cost $1,575,558)	1,622,705

NUMBER OFSHARES (000)
	Short-Term Investment (10.2%)
	Investment Company (b) (0.4%)
537	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class (Cost $537,399)	537,399

PRINCIPAL
AMOUNT IN THOUSANDS
		Short-Term Debt Securities held as Collateral on Loaned Securities (9.8%)
$	342	Alliance and Leister PLC, 3.08%, 09/02/08 (c)			341,846
171		Bancaja, 4.04%, 11/12/08 (c)			170,923
171		Bank of New York Co., Inc. 3.07%, 08/08/08 (c)			170,923
171		BASF AG, 3.89%, 08/19/08 (c)			170,915
684		CAM U.S. Finance S.A. Unipersonal, 4.71%, 07/25/08 (c)			683,691
342		Canadian Imperial Bank N.Y., 2.42%, 07/28/08 (c)			341,846
615		CIT Group Holdings, 3.97%, 06/18/08 (c)			615,322
		Citigroup Global Markets, Inc.,
1,709		3.01%, 04/01/08			1,709,229
666		3.01%, 04/01/08			666,223
		First Tennessee Bank
171		2.84%, 08/15/08 (c)			170,923
683		2.85%, 08/15/08 (c)			683,680
171		Goldman Sachs Group, Inc., 2.89%, 09/12/08 (c)			170,923
171		HSBC Finance Corp., 3.10%, 08/05/08 (c)			170,923
684		IBM Corp., 3.09%, 09/08/08 (c)			683,692
342		Macquarie Bank Ltd., 2.62%, 08/20/08 (c)			341,846
513		Metropolitan Life Global Funding, 2.59%, 08/21/08 (c)			512,769
3,849		Morgan Stanley Institutional Liquidity Funds, 3.38%, 04/01/08			3,849,184
684		National Rural Utilities Coop., Fin., 3.13%, 09/02/08 (c)			683,691
396		Nationwide Building Society, 2.75%, 07/28/08 (c)			396,541
684		National Bank of Canada, 3.11%, 04/02/08 (c)			683,678
		Unicredito Italiano Bank (IRE) PLC,
376		2.84%, 08/14/08 (c)			376,030
239		3.09%, 08/08/08 (c)			239,292
		Total Short-Term Debt Securities held as Collateral on Loaned Securities (Cost $13,834,090)			13,834,090
		Total Short-Term Investments (Cost $14,371,489)			14,371,489
		Total Investments (Cost $127,108,571) (e)	109.6%		154,190,131
		Liabilities in Excess of Other Assets	(9.6	)	(13,542,929		)
		Net Assets	100.0	%	$	140,647,202

*	Non-income producing security.
#	Securities with total market value equal to $132,501,598 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Directors.
@	Consist of one or more class of securities traded together as a unit: stocks with attached warrants.
(a)	All or a portion of these securities were on loan at March 31, 2008. The total value of the loaned securities and related collateral outstanding were $13,209,895 and $13,834,090, respectively.
(b)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(c)	Variable/Floating Rate Security - interest rate changes on these instruments are based on changes in a designated base rate. The rate shown are those in effect on March 31, 2008.
(d)	At March 31, 2008, investments in securities of issuers in United Kingdom represented 33.3% of the Fund’s net assets. These investments as well as other non-U.S. investments, which involve risks and consideration not present with respect to U.S. securities, may be affected by economic or political development in this region.
(e)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,“Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely  transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Variousinputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	154,190,131	$	7,854,443	$	146,335,688	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary

market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at net assets value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - European Equity

Summary of Investments March 31, 2008 (unaudited)

			PERCENT OF
			TOTAL
INDUSTRY	VALUE		INVESTMENTS
Major Banks	$	20,065,837	13.0	%
Short-Term Investments	14,371,489		9.3
Pharmaceuticals: Major	13,830,345		9.0
Integrated Oil	12,623,188		8.2
Major Telecommunications	9,601,709		6.2
Multi-Line Insurance	8,995,855		5.8
Food: Major Diversified	6,885,292		4.4
Industrial Conglomerates	6,132,988		4.0
Electric Utilities	5,852,959		3.8
Tobacco	5,770,163		3.7
Other Metals/Minerals	5,479,062		3.6
Food Retail	4,717,401		3.1
Aerospace & Defense	4,705,195		3.1
Wireless Telecommunications	3,958,143		2.6
Motor Vehicles	3,838,877		2.5
Publishing: Books/Magazines	3,529,101		2.3
Medical Specialties	3,077,795		2.0
Construction Materials	2,964,859		1.9
Electrical Products	2,753,743		1.8
Chemicals: Major Diversified	2,625,775		1.7
Other Consumer Specialties	2,512,959		1.6
Life/Health Insurance	2,251,996		1.5
Regional Banks	2,135,595		1.4
Air Freight/Couriers	1,922,026		1.2
Financial Conglomerates	1,877,073		1.2
Investment Managers	1,710,706		1.1
	$	154,190,131	100.0	%

Morgan Stanley Variable Investment Series - Capital Opportunities Portfolio

Portfolio of Investments  March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (92.3%)
	Air Freight/Couriers (5.0%)
193,520	C.H. Robinson Worldwide, Inc.	$	10,527,488
176,979	Expeditors International of Washington, Inc.	7,995,911
		18,523,399
	Apparel/Footwear Retail (2.9%)
146,633	Abercrombie & Fitch Co. (Class A)	10,724,738
	Biotechnology (5.7%)
152,584	Illumina, Inc.*	11,581,126
139,912	Techne Corp.*	9,424,472
		21,005,598
	Casino/Gaming (4.3%)
158,890	Wynn Resorts, Ltd.*	15,990,690
	Chemicals: Agricultural (7.7%)
253,147	Monsanto Co.	28,225,890
	Chemicals: Major Diversified (2.1%)
368,986	Nalco Holding Co.	7,804,054
	Computer Processing Hardware (2.5%)
63,442	Apple Inc.*	9,103,927
	Construction Materials (3.4%)
475,275	Cemex SAB de C.V. (ADR) (Mexico)*	12,414,183
	Finance Energy (1.2%)
256,434	Brookfield Infrastructure Partners LP	4,346,556
	Finance/Rental/Leasing (2.6%)
42,971	MasterCard Inc. (Class A)	9,582,103
	Financial Conglomerates (3.9%)
535,314	Brookfield Asset Management Inc. (Class A) (Canada)	14,362,475
	Information Technology Services (0.8%)
68,463	VMware Inc (Class A)*	2,931,586
	Internet Retail (5.4%)
277,072	Amazon.com, Inc.*	19,755,234
	Internet Software/Services (9.2%)
31,912	Baidu.com, Inc. (ADR) (Cayman Islands)*	7,647,073
44,250	Google Inc. (Class A)*	19,490,797
1,171,600	Tencent Holdings Ltd. (Cayman Islands)#	6,669,405
		33,807,275
	Investment Banks/Brokers (3.1%)
165,143	Greenhill & Co., Inc.	11,487,347
	Miscellaneous Commercial Services (4.0%)
146,867	Corporate Executive Board Co. (The)	5,945,176
202,029	Costar Group, Inc.	8,687,247
		14,632,423
	Oil & Gas Production (10.4%)
438,842	Southwestern Energy Co.	14,784,587
304,098	Ultra Petroleum Corp. (Canada)	23,567,595
		38,352,182

	Other Consumer Services (4.2%)
519,837	eBay Inc.	15,511,936
	Restaurants (2.2%)
466,864	Starbucks Corp.	8,170,120
	Specialty Telecommunications (2.2%)
432,522	Cogent Communications Group, Inc.	7,919,478
	Telecommunication Equipment (4.4%)
145,662	Research In Motion Ltd. (Canada)	16,347,646
	Wholesale Distributors (2.5%)
2,476,000	Li & Fung Ltd. (Hong Kong)#	9,264,297
	Wireless Telecommunications (2.5%)
146,513	America Movil SAB de C.V. (Series L) (ADR) (Mexico)	9,331,413
	Total Common Stocks (Cost $310,633,132)	339,594,550
	Investment Trusts/Mutual Funds (2.6%)
528,653	Aeroplan Income Fund (Units) (Canada)@ (Cost $8,328,581)	9,399,306

NUMBER OF
SHARES (000)
	Short-Term Investment (a) (5.5%)
	Investment Company
20,234	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class (Cost $20,233,803)			20,233,803
	Total Investments (Cost $339,195,516) (b)	100.3	%	369,227,659
	Liabilities in Excess of Other Assets	(0.3	)	(1,200,687		)
	Net Assets	100.0	%	$	368,026,972

ADR	American Depositary Receipt.
*	Non-income producing security.
#	Securities with total market value equal to $15,933,702 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Directors.
@	Consists of one or more class of securities traded together as a unit; stocks with attached warrants.
(a)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class,an open-end management investment company managed by the Investment Adviser.Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio -Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(b)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most

advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	369,227,659	$	353,293,957	$	15,933,702	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at net assets value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - S & P 500 Index Portfolio

Portfolio of Investments March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (98.7%)
	Advertising/Marketing Services (0.2%)
7,421	Interpublic Group of Companies, Inc. (The)*	$	62,411
5,089	Omnicom Group, Inc.	224,831
		287,242
	Aerospace & Defense (1.9%)
12,231	Boeing Co.	909,619
6,367	General Dynamics Corp.	530,817
2,002	Goodrich Corp.	115,135
1,936	L-3 Communications Holdings, Inc.	211,682
5,420	Lockheed Martin Corp.	538,206
5,377	Northrop Grumman Corp.	418,384
2,195	Precision Castparts Corp.	224,066
6,773	Raytheon Co.	437,604
2,547	Rockwell Collins, Inc.	145,561
		3,531,074
	Agricultural Commodities/Milling (0.2%)
10,218	Archer-Daniels-Midland Co.	420,572
	Air Freight/Couriers (1.1%)
2,703	C.H. Robinson Worldwide, Inc.	147,043
3,325	Expeditors International of Washington, Inc.	150,224
4,921	FedEx Corp.	456,029
16,470	United Parcel Service, Inc. (Class B)	1,202,639
		1,955,935
	Airlines (0.1%)
11,353	Southwest Airlines Co.	140,777
	Aluminum (0.3%)
13,069	Alcoa, Inc.	471,268
	Apparel/Footwear (0.4%)
5,515	Coach, Inc.*	166,277
1,382	Jones Apparel Group, Inc.	18,546
1,552	Liz Claiborne, Inc.	28,169
6,066	Nike, Inc. (Class B)	412,488
930	Polo Ralph Lauren Corp.	54,210
1,394	VF Corp.	108,049
		787,739
	Apparel/Footwear Retail (0.3%)
1,352	Abercrombie & Fitch Co. (Class A)	98,885
7,254	Gap, Inc. (The)	142,759
4,873	Limited Brands, Inc.	83,328
2,737	Nordstrom, Inc.	89,226
6,810	TJX Companies, Inc. (The)	225,207
		639,405
	Auto Parts: O.E.M. (0.3%)
2,300	Eaton Corp.	183,241
9,294	Johnson Controls, Inc.	314,137
		497,378
	Automotive Aftermarket (0.1%)
3,797	Goodyear Tire & Rubber Co. (The)*	97,962
	Beverages: Alcoholic (0.4%)
11,358	Anheuser-Busch Companies, Inc.	538,937
1,346	Brown-Forman Corp. (Class B)	89,132
3,012	Constellation Brands Inc. (Class A)*	53,222

2,186	Molson Coors Brewing Co. (Class B)	114,918
		796,209
	Beverages: Non-Alcoholic (2.2%)
31,961	Coca-Cola Co. (The)	1,945,466
4,575	Coca-Cola Enterprises Inc.	110,715
2,161	Pepsi Bottling Group, Inc. (The)	73,280
25,603	PepsiCo, Inc.	1,848,536
		3,977,997
	Biotechnology (1.4%)
17,634	Amgen Inc.*	736,749
4,844	Biogen Idec Inc.*	298,826
6,939	Celgene Corp.*	425,291
4,245	Genzyme Corp.*	316,422
14,659	Gilead Sciences, Inc.*	755,378
873	Millipore Corp.*	58,849
		2,591,515
	Broadcasting (0.1%)
6,529	Clear Channel Communications, Inc.	190,777
	Building Products (0.1%)
5,755	Masco Corp.	114,122
2,767	Trane Inc.	127,004
		241,126
	Cable/Satellite TV (0.6%)
45,327	Comcast Corp. (Class A)*	876,624
11,206	DIRECTV Group, Inc. (The)*	277,796
		1,154,420
	Casino/Gaming (0.1%)
4,950	International Game Technology	199,039
	Chemicals: Agricultural (0.5%)
8,747	Monsanto Co.	975,290
	Chemicals: Major Diversified (0.8%)
15,024	Dow Chemical Co. (The)	553,634
14,243	Du Pont (E.I.) de Nemours & Co.	666,003
1,271	Eastman Chemical Co.	79,374
1,774	Hercules Inc.*	32,446
2,001	Rohm & Haas Co.	108,214
		1,439,671
	Chemicals: Specialty (0.5%)
3,430	Air Products & Chemicals, Inc.	315,560
890	Ashland Inc.	42,096
4,982	Praxair, Inc.	419,634
2,057	Sigma-Aldrich Corp.	122,700
		899,990
	Coal (0.2%)
3,036	CONSOL Energy, Inc.	210,060
4,450	Peabody Energy Corp.	226,950
		437,010
	Commercial Printing/Forms (0.1%)
3,401	Donnelley (R.R.) & Sons Co.	103,084
	Computer Communications (1.3%)
91,823	Cisco Systems, Inc.*	2,212,016
8,262	Juniper Networks, Inc.*	206,550
2,146	QLogic Corp.*	32,941
		2,451,507
	Computer Peripherals (0.3%)
32,995	EMC Corp.*	473,147
1,504	Lexmark International, Inc. (Class A)*	46,203
5,415	Netapp Inc.	108,571
4,225	Seagate Technology Inc. (Escrow)# *	0
		627,921

	Computer Processing Hardware (2.6%)
14,289	Apple Inc.*	2,050,472
35,405	Dell Inc.*	705,268
38,802	Hewlett-Packard Co.	1,771,698
12,490	Sun Microsytems, Inc.*	193,970
		4,721,408
	Construction Materials (0.1%)
1,701	Vulcan Materials Co.	112,946
	Containers/Packaging (0.1%)
1,545	Ball Corp.	70,977
1,585	Bemis Company, Inc.	40,307
2,045	Pactiv Corp.*	53,599
2,567	Sealed Air Corp.	64,817
		229,700
	Contract Drilling (0.7%)
2,358	ENSCO International Inc.	147,658
4,563	Nabors Industries, Ltd. (Bermuda)*	154,093
4,387	Noble Corp. (Cayman Islands)	217,902
1,815	Rowan Companies, Inc.*	74,742
5,231	Transocean Inc. (Bermuda)	707,230
		1,301,625
	Data Processing Services (0.7%)
1,521	Affiliated Computer Services, Inc. (Class A)*	76,217
8,363	Automatic Data Processing, Inc.	354,507
2,594	Computer Sciences Corp.*	105,809
2,024	Convergys Corp.*	30,481
2,656	Fidelity National Information Services, Inc.	101,300
2,587	Fiserv, Inc.*	124,409
5,137	Paychex, Inc.	175,994
3,160	Total System Services, Inc.	74,766
11,722	Western Union Co.	249,327
		1,292,810
	Department Stores (0.3%)
869	Dillard’s, Inc. (Class A)	14,955
4,849	Kohl’s Corp.*	207,974
6,685	Macy’s, Inc.	154,156
3,413	J.C. Penney Co., Inc.	128,704
		505,789
	Discount Stores (1.8%)
1,423	Big Lots, Inc.*	31,733
6,913	Costco Wholesale Corp.	449,138
2,156	Family Dollar Stores, Inc.	42,042
1,157	Sears Holdings Corp.*	118,118
12,948	Target Corp.	656,204
37,745	Wal-Mart Stores, Inc.	1,988,406
		3,285,641
	Drugstore Chains (0.8%)
22,526	CVS Caremark Corp.	912,528
15,886	Walgreen Co.	605,098
		1,517,626
	Electric Utilities (3.3%)
10,648	AES Corp. (The)*	177,502
2,710	Allegheny Energy, Inc.	136,855
3,349	Ameren Corp.	147,490
6,543	American Electric Power Co., Inc.	272,385
5,250	CenterPoint Energy, Inc.	74,918
3,583	CMS Energy Corp.	48,514
4,304	Consolidated Edison, Inc.	170,869
2,847	Constellation Energy Group	251,305
9,194	Dominion Resources, Inc.	375,483
2,607	DTE Energy Co.	101,386

20,180	Duke Energy Corp.	360,213
5,264	Edison International	258,041
3,046	Entergy Corp.	332,258
10,571	Exelon Corp.	859,105
4,833	FirstEnergy Corp.	331,640
6,494	FPL Group, Inc.	407,434
1,222	Integrys Energy Group, Inc.	56,994
3,222	Pepco Holdings, Inc.	79,648
5,667	PG&E Corp.	208,659
1,599	Pinnacle West Capital Corp.	56,093
5,991	PPL Corp.	275,107
4,169	Progress Energy, Inc.	173,847
7,906	Public Service Enterprise Group Inc.	317,742
12,169	Southern Co. (The)	433,338
3,382	TECO Energy, Inc.	53,943
6,849	Xcel Energy, Inc.	136,638
		6,097,407
	Electrical Products (0.4%)
2,789	Cooper Industries Ltd. (Class A) (Bermuda)	111,978
12,531	Emerson Electric Co.	644,845
2,214	Molex Inc.	51,276
		808,099
	Electronic Components (0.3%)
2,732	Jabil Circuit, Inc.	25,845
3,599	MEMC Electronic Materials, Inc.*	255,169
3,553	SanDisk Corp.*	80,191
7,780	Tyco Electronics Ltd. (Bermuda)	267,010
		628,215
	Electronic Equipment/Instruments (0.3%)
5,789	Agilent Technologies, Inc.*	172,686
3,512	JDS Uniphase Corp.*	47,026
2,336	Rockwell Automation, Inc.	134,133
14,442	Xerox Corp.	216,197
		570,042
	Electronic Production Equipment (0.3%)
21,003	Applied Materials, Inc.	409,769
2,801	KLA-Tencor Corp.	103,917
1,592	Novellus Systems, Inc.*	33,512
2,695	Teradyne, Inc.*	33,472
		580,670
	Electronics/Appliance Stores (0.1%)
5,530	Best Buy Co., Inc.	229,274
2,681	Circuit City Stores - Circuit City Group	10,670
2,073	RadioShack Corp.	33,686
		273,630
	Electronics/Appliances (0.1%)
4,537	Eastman Kodak Co.	80,169
955	Harman International Industries, Inc.	41,581
1,205	Whirlpool Corp.	104,570
		226,320
	Engineering & Construction (0.2%)
1,419	Fluor Corp.	200,306
1,927	Jacobs Engineering Group, Inc.*	141,808
		342,114
	Environmental Services (0.2%)
5,354	Allied Waste Industries, Inc.*	57,877
7,900	Waste Management, Inc.	265,124
		323,001
	Finance/Rental/Leasing (0.8%)
3,077	American Capital Strategies, Ltd.	105,110
5,809	Capital One Financial Corp.	285,919
2,998	CIT Group, Inc.	35,526
8,947	Countrywide Financial Corp.	49,209

7,341	Discover Financial Services	120,172
15,102	Fannie Mae	397,485
9,972	Freddie Mac	252,491
933	Ryder System, Inc.	56,829
7,793	SLM Corp.	119,623
		1,422,364
	Financial Conglomerates (3.0%)
17,780	American Express Co.	777,342
79,359	Citigroup, Inc.+	1,699,870
52,260	JPMorgan Chase & Co.	2,244,567
2,663	Leucadia National Corp.	120,421
4,011	Principal Financial Group, Inc.	223,493
7,003	Prudential Financial, Inc.	547,985
		5,613,678
	Financial Publishing/Services (0.2%)
2,065	Equifax, Inc.	71,201
5,015	McGraw-Hill Companies, Inc. (The)	185,304
3,247	Moody’s Corp.	113,093
		369,598
	Food Distributors (0.2%)
9,602	SYSCO Corp.	278,650
	Food Retail (0.4%)
10,722	Kroger Co. (The)	272,339
7,078	Safeway Inc.	207,739
3,386	SUPERVALU, Inc.	101,512
2,216	Whole Foods Market, Inc.	73,062
		654,652
	Food: Major Diversified (1.1%)
3,491	Campbell Soup Co.	118,519
7,740	ConAgra Foods Inc.	185,373
5,379	General Mills, Inc.	322,095
5,050	Heinz (H.J.) Co.	237,199
4,150	Kellogg Co.	218,124
24,528	Kraft Foods Inc. (Class A)	760,613
11,413	Sara Lee Corp.	159,554
		2,001,477
	Food: Meat/Fish/Dairy (0.1%)
2,398	Dean Foods Co.	48,176
4,376	Tyson Foods, Inc. (Class A)	69,797
		117,973
	Food: Specialty/Candy (0.2%)
2,659	Hershey Foods Co. (The)	100,165
2,045	McCormick & Co., Inc. (Non-Voting)	75,604
3,444	Wrigley (Wm.) Jr. Co.	216,421
		392,190
	Forest Products (0.1%)
3,317	Weyerhaeuser Co.	215,738
	Gas Distributors (0.4%)
7,889	Dynegy, Inc. (Class A)*	62,244
722	Nicor Inc.	24,194
4,374	NiSource, Inc.	75,408
2,835	Questar Corp.	160,348
4,197	Sempra Energy	223,616
10,159	Spectra Energy Corp.	231,117
		776,927
	Home Building (0.1%)
1,879	Centex Corp.	45,491
4,309	D.R. Horton, Inc.	67,867
1,187	KB Home	29,355
2,115	Lennar Corp. (Class A)	39,783
3,323	Pulte Homes, Inc.	48,350
		230,846

	Home Furnishings (0.1%)
2,634	Leggett & Platt, Inc.	40,169
4,389	Newell Rubbermaid, Inc.	100,376
		140,545
	Home Improvement Chains (0.7%)
26,360	Home Depot, Inc. (The)	737,289
22,710	Lowe’s Companies, Inc.	520,967
1,602	Sherwin-Williams Co.	81,766
		1,340,022
	Hospital/Nursing Management (0.0%)
7,361	Tenet Healthcare Corp.*	41,663
	Hotels/Resorts/Cruiselines (0.4%)
6,904	Carnival Corp (Units) (Panama) @	279,474
4,740	Marriott International, Inc. (Class A)	162,866
2,942	Starwood Hotels & Resorts Worldwide, Inc.	152,249
2,784	Wyndham Worldwide Corp.	57,573
		652,162
	Household/Personal Care (2.7%)
6,799	Avon Products, Inc.	268,832
2,209	Clorox Co. (The)	125,118
8,130	Colgate-Palmolive Co.	633,408
1,818	Estee Lauder Companies, Inc. (The) (Class A)	83,355
1,290	International Flavors & Fragrances, Inc.	56,825
6,664	Kimberly-Clark Corp.	430,161
49,172	Procter & Gamble Co. (The)	3,445,482
		5,043,181
	Industrial Conglomerates (5.3%)
11,190	3M Co.	885,689
4,001	Danaher Corp.	304,196
158,829	General Electric Co.**	5,878,261
11,840	Honeywell International, Inc.	668,013
4,286	Ingersoll-Rand Co. Ltd. (Class A) (Bermuda)	191,070
2,871	ITT Corp.	148,747
4,038	Textron, Inc.	223,786
7,874	Tyco International Ltd. (Bermuda)	346,850
15,507	United Technologies Corp.	1,067,192
		9,713,804
	Industrial Machinery (0.3%)
6,324	Illinois Tool Works Inc.	305,007
2,659	Parker Hannifin Corp.	184,189
		489,196
	Industrial Specialties (0.2%)
2,790	Ecolab Inc.	121,170
2,585	PPG Industries, Inc.	156,418
		277,588
	Information Technology Services (1.6%)
2,852	Citrix Systems, Inc.*	83,649
4,569	Cognizant Technology Solutions Corp. (Class A)*	131,724
7,998	Electronic Data Systems Corp.	133,167
21,843	International Business Machines Corp.	2,515,003
2,829	Teredata Corp.*	62,408
5,603	Unisys Corp.*	24,821
		2,950,772
	Insurance Brokers/Services (0.2%)
4,869	AON Corp.	195,734
8,261	Marsh & McLennan Companies, Inc.	201,155
		396,889
	Integrated Oil (7.2%)
33,458	Chevron Corp.	2,855,975
25,435	ConocoPhillips	1,938,401
86,957	Exxon Mobil Corp.	7,354,823

4,539	Hess Corp.	400,249
11,610	Marathon Oil Corp.	529,416
3,101	Murphy Oil Corp.	254,716
		13,333,580
	Internet Retail (0.3%)
4,854	Amazon.com, Inc.*	346,090
2,530	Gamestop Corp (Class A)*	130,826
2,825	IAC/InterActiveCorp.*	58,647
		535,563
	Internet Software/Services (1.3%)
2,641	Akamai Technologies, Inc.*	74,371
3,755	Google Inc. (Class A)*	1,653,965
3,314	VeriSign, Inc.*	110,157
21,049	Yahoo! Inc.*	608,948
		2,447,441
	Investment Banks/Brokers (2.2%)
3,532	Ameriprise Financial, Inc.	183,134
1,843	Bear Stearns Companies, Inc. (The)	19,333
14,543	Charles Schwab Corp. (The)	273,845
836	Cme Group Inc.	392,168
7,156	E*TRADE Group, Inc.*	27,622
6,182	Goldman Sachs Group, Inc. (The)	1,022,441
1,126	Intercontinental Exchange Inc.*	146,943
8,113	Lehman Brothers Holdings Inc.	305,373
14,794	Merrill Lynch & Co., Inc.	602,708
16,507	Morgan Stanley++	754,370
4,237	NYSE Euronext	261,465
		3,989,402
	Investment Managers (0.6%)
1,345	Federated Investors, Inc. (Class B)	52,670
2,429	Franklin Resources, Inc.	235,589
2,306	Janus Capital Group, Inc.	53,661
2,106	Legg Mason, Inc.	117,894
4,194	Price (T.) Rowe Group, Inc.	209,700
6,044	State Street Corp.	477,476
		1,146,990
	Life/Health Insurance (0.9%)
7,529	AFLAC, Inc.	489,009
6,714	Genworth Financial Inc. (Class A)	152,005
4,112	Lincoln National Corp.	213,824
11,110	MetLife, Inc.+++	669,489
1,434	Torchmark Corp.	86,198
5,563	UnumProvident Corp.	122,442
		1,732,967
	Major Banks (4.4%)
68,972	Bank of America Corp.	2,614,729
17,909	Bank of New York Mellon Corp.	747,343
8,395	BB&T Corp.	269,144
2,256	Comerica, Inc.	79,140
5,618	Huntington Bancshares, Inc.	60,394
6,061	KeyCorp	133,039
9,472	National City Corp.	94,246
5,363	PNC Financial Services Group, Inc.	351,652
10,508	Regions Financial Corp.	207,533
5,326	SunTrust Banks, Inc.	293,676
1,273	Totonto-Dominion Bank (The)	78,099
26,914	U.S. Bancorp	870,937
30,275	Wachovia Corp.	817,425
50,456	Wells Fargo & Co.	1,468,270
		8,085,627
	Major Telecommunications (3.1%)
95,224	AT&T Inc.	3,647,079
2,365	Embarq Corp.	94,837

47,887	Sprint Nextel Corp.	320,364
44,383	Verizon Communications, Inc.	1,617,760
		5,680,040
	Managed Health Care (1.0%)
7,825	Aetna, Inc.	329,354
4,389	CIGNA Corp.	178,062
2,402	Coventry Health Care, Inc.*	96,921
2,688	Humana, Inc.*	120,584
19,491	UnitedHealth Group Inc.	669,711
8,679	WellPoint Inc.*	383,004
		1,777,636
	Media Conglomerates (1.6%)
10,677	CBS Corp. (Class B)	235,748
29,699	Disney (Walt) Co. (The)	931,955
36,130	News Corp. (Class A)	677,438
55,411	Time Warner, Inc.	776,862
10,019	Viacom Inc. (Class B)*	396,953
		3,018,956
	Medical Distributors (0.4%)
2,575	AmerisourceBergen Corp.	105,524
5,694	Cardinal Health, Inc.	298,992
4,680	McKesson Corp.	245,092
2,030	Patterson Companies, Inc.*	73,689
		723,297
	Medical Specialties (2.3%)
2,705	Applera Corp. - Applied Biosystems Group	88,886
1,589	Bard (C.R.), Inc.	153,180
10,044	Baxter International, Inc.	580,744
3,860	Becton, Dickinson & Co.	331,381
21,292	Boston Scientific Corp.*	274,028
8,031	Covidien Ltd.	355,372
2,516	Hospira, Inc.*	107,609
17,875	Medtronic, Inc.	864,614
1,951	Pall Corp.	68,422
1,852	PerkinElmer, Inc.	44,911
5,487	St. Jude Medical, Inc.*	236,984
3,755	Stryker Corp.	244,263
6,643	Thermo Fisher Scientific, Inc.*	377,588
1,992	Varian Medical Systems, Inc.*	93,305
1,665	Waters Corp.*	92,741
3,719	Zimmer Holdings, Inc.*	289,561
		4,203,589
	Miscellaneous Commercial Services (0.0%)
2,056	Cintas Corp.	58,678
	Miscellaneous Manufacturing (0.1%)
3,023	Dover Corp.	126,301
	Motor Vehicles (0.3%)
35,400	Ford Motor Co.*	202,488
8,798	General Motors Corp.	167,602
3,754	Harley-Davidson, Inc.	140,775
		510,865
	Multi-Line Insurance (1.3%)
39,593	American International Group, Inc.	1,712,397
4,938	Hartford Financial Services Group, Inc. (The)	374,152
6,945	Loews Corp.	279,328
1,412	SAFECO Corp.	61,959
		2,427,836
	Office Equipment/Supplies (0.1%)
1,697	Avery Dennison Corp.	83,577
3,334	Pitney Bowes Inc.	116,757
		200,334

	Oil & Gas Pipelines (0.3%)
11,262	El Paso Corp.	187,400
9,380	Williams Companies, Inc. (The)	309,352
		496,752
	Oil & Gas Production (2.5%)
7,648	Anadarko Petroleum Corp.	482,053
5,595	Apache Corp.	675,988
7,438	Chesapeake Energy Corp.	343,264
7,412	Devon Energy Corp.	773,294
4,066	EOG Resources, Inc.	487,920
2,762	Noble Energy, Inc.	201,074
13,375	Occidental Petroleum Corp.	978,649
2,423	Range Resources Corp.	153,739
8,305	XTO Energy, Inc.	513,747
		4,609,728
	Oil Refining/Marketing (0.3%)
1,859	Sunoco, Inc.	97,542
2,306	Tesoro Corp.	69,180
8,841	Valero Energy Corp.	434,182
		600,904
	Oilfield Services/Equipment (2.1%)
5,039	Baker Hughes Inc.	345,172
4,854	BJ Services Co.	138,388
3,596	Cameron International Corp.*	149,737
14,517	Halliburton Co.	570,954
5,814	National-Oilwell Varco, Inc.*	339,421
19,770	Schlumberger Ltd. (Netherlands Antilles)	1,719,990
3,275	Smith International, Inc.	210,353
5,555	Weatherford International Ltd. (Bermuda)*	402,571
		3,876,586
	Other Consumer Services (0.4%)
2,215	Apollo Group, Inc. (Class A)*	95,688
5,194	Block (H&R), Inc.	107,827
17,668	eBay Inc.*	527,213
3,326	Expedia, Inc.*	72,806
		803,534
	Other Consumer Specialties (0.1%)
2,439	Fortune Brands, Inc.	169,511
	Other Metals/Minerals (0.0%)
1,594	Titanium Metals Corp.	23,990
	Packaged Software (3.2%)
9,165	Adobe Systems, Inc.*	326,182
3,629	Autodesk, Inc.*	114,241
3,014	BMC Software, Inc.*	98,015
6,172	CA Inc.	138,870
4,340	Compuware Corp.*	31,856
5,209	Intuit Inc.*	140,695
125,853	Microsoft Corp.	3,571,708
5,536	Novell, Inc.*	34,821
62,781	Oracle Corp.*	1,227,996
13,280	Symantec Corp.*	220,714
		5,905,098
	Personnel Services (0.1%)
1,925	Monster Worldwide Inc.*	46,604
2,503	Robert Half International, Inc.	64,427
		111,031
	Pharmaceuticals: Generic Drugs (0.1%)
1,717	Barr Pharmaceuticals Inc.*	82,948
4,842	Mylan Laboratories, Inc.	56,167
1,659	Watson Pharmaceuticals, Inc.*	48,642
		187,757

	Pharmaceuticals: Major (5.7%)
24,538	Abbott Laboratories	1,353,271
31,292	Bristol-Myers Squibb Co.	666,520
45,270	Johnson & Johnson	2,936,665
15,743	Lilly (Eli) & Co.	812,181
34,306	Merck & Co., Inc.	1,301,913
107,308	Pfizer, Inc.	2,245,956
25,296	Schering-Plough Corp.	364,515
21,487	Wyeth	897,297
		10,578,318
	Pharmaceuticals: Other (0.3%)
4,863	Allergan, Inc.	274,225
4,932	Forest Laboratories, Inc.*	197,329
3,971	King Pharmaceuticals, Inc.*	34,548
		506,102
	Precious Metals (0.5%)
6,271	Freeport-McMoRan Copper & Gold, Inc.	603,396
7,276	Newmont Mining Corp.	329,603
		932,999
	Property - Casualty Insurers (1.0%)
5,184	ACE Ltd. (Cayman Islands)	285,431
8,915	Allstate Corp. (The)++++	428,455
5,853	Chubb Corp. (The)	289,606
2,611	Cincinnati Financial Corp.	99,322
10,688	Progressive Corp. (The)	171,756
9,876	Travelers Companies, Inc. (The)	472,567
2,756	XL Capital Ltd. (Class A) (Cayman Islands)	81,440
		1,828,577
	Publishing: Books/Magazines (0.0%)
595	Meredith Corp.	22,759
	Publishing: Newspapers (0.1%)
3,665	Gannett Co., Inc.	106,468
2,253	New York Times Co. (The) (Class A)	42,537
1,400	Scripps (E.W.) Co. (Class A)	58,814
94	Washington Post Co. (The) (Class B)	62,181
		270,000
	Pulp & Paper (0.1%)
6,914	International Paper Co.	188,061
2,784	MeadWestvaco Corp.	75,780
		263,841
	Railroads (0.9%)
4,681	Burlington Northern Santa Fe Corp.	431,682
6,448	CSX Corp.	361,539
5,893	Norfolk Southern Corp.	320,108
4,149	Union Pacific Corp.	520,202
		1,633,531
	Real Estate Development (0.0%)
2,743	CB Richard Ellis Group, Inc. (Class A)*	59,359
	Real Estate Investment Trusts (1.1%)
1,461	Apartment Investment & Management Co. (Class A)	52,318
1,213	AvalonBay Communities, Inc.	117,079
1,885	Boston Properties, Inc.	173,552
4,227	Equity Residential	175,378
4,170	General Growth Properties, Inc.	159,169
8,250	Host Hotels & Resorts Inc.	131,340
4,033	Kimco Realty Corp.	157,973
2,725	Plum Creek Timber Co., Inc.	110,908
4,106	ProLogis	241,679
1,999	Public Storage, Inc.	177,151
3,565	Simon Property Group, Inc.	331,224
2,143	Vornado Realty Trust	184,748
		2,012,519

	Recreational Products (0.2%)
1,337	Brunswick Corp.	21,352
4,943	Electronic Arts Inc.*	246,755
2,231	Hasbro, Inc.	62,245
5,690	Mattel, Inc.	113,231
		443,583
	Regional Banks (0.4%)
8,259	Fifth Third Bancorp	172,778
1,912	First Horizon National Corp.	26,787
1,203	M&T Bank Corp.	96,817
4,034	Marshall & Ilsley Corp.	93,589
2,993	Northern Trust Corp.	198,945
1,658	Zions Bancorporation	75,522
		664,438
	Restaurants (0.9%)
2,247	Darden Restaurants, Inc.	73,140
18,177	McDonald’s Corp.	1,013,731
11,485	Starbucks Corp.*	200,988
1,388	Wendy’s International, Inc.	32,007
7,548	Yum! Brands, Inc.	280,861
		1,600,727
	Retail Strip Centers (0.0%)
1,890	Developers Diversified Realty Corp.	79,153
	Savings Banks (0.2%)
8,012	Hudson City Bancorp, Inc.	141,652
5,526	Sovereign Bancorp, Inc.	51,502
13,233	Washington Mutual, Inc.	136,300
		329,454
	Semiconductors (1.9%)
9,468	Advanced Micro Devices, Inc.*	55,767
4,821	Altera Corp.	88,851
4,626	Analog Devices, Inc.	136,560
7,578	Broadcom Corp. (Class A)*	146,028
90,414	Intel Corp.	1,914,969
3,402	Linear Technology Corp.	104,407
10,004	LSI Corp.*	49,520
2,976	Microchip Technology Inc.	97,404
11,571	Micron Technology, Inc.*	69,079
3,584	National Semiconductor Corp.	65,659
8,580	NVIDIA Corp.*	169,798
20,887	Texas Instruments Inc.	590,475
4,478	Xilinx, Inc.	106,353
		3,594,870
	Services to the Health Industry (0.5%)
3,966	Express Scripts, Inc.*	255,093
2,914	IMS Health Inc.	61,223
1,730	Laboratory Corp. of America Holdings*	127,466
8,229	Medco Health Solutions Inc.*	360,348
2,480	Quest Diagnostics Inc.	112,270
		916,400
	Specialty Insurance (0.1%)
4,399	Ambac Financial Group, Inc.	25,294
1,516	Assurant, Inc.	92,264
3,194	MBIA Inc.	39,031
1,812	MGIC Investment Corp.	19,080
		175,669
	Specialty Stores (0.3%)
2,085	AutoNation, Inc.*	31,212
682	AutoZone, Inc.*	77,632
4,135	Bed Bath & Beyond Inc.*	121,983
4,248	Office Depot, Inc.*	46,940

1,186	OfficeMax Inc.	22,700
10,950	Staples, Inc.	242,105
2,054	Tiffany & Co.	85,939
		628,511
	Specialty Telecommunications (0.3%)
6,505	American Tower Corp. (Class A)*	255,061
1,667	CenturyTel, Inc.	55,411
5,126	Citizens Communications Co.	53,772
24,085	Qwest Communications International, Inc.*	109,105
7,113	Windstream Corp.	85,000
		558,349
	Steel (0.4%)
1,597	Allegheny Technologies, Inc.	113,962
4,545	Nucor Corp.	307,878
1,843	United States Steel Corp.	233,821
		655,661
	Telecommunication Equipment (1.1%)
1,372	Ciena Corp.*	42,299
23,961	Corning Inc.	576,022
36,308	Motorola, Inc.	337,664
25,269	QUALCOMM, Inc.	1,036,029
6,484	Tellabs, Inc.*	35,338
		2,027,352
	Tobacco (1.5%)
33,539	Altria Group, Inc.	744,566
33,539	Philip Morris International	1,696,403
2,723	Reynolds American, Inc.	160,739
2,391	UST, Inc.	130,357
		2,732,065
	Tools/Hardware (0.1%)
951	Black & Decker Corp.	62,861
900	Snap-On, Inc.	45,765
1,236	Stanley Works (The)	58,858
		167,484
	Trucks/Construction/Farm Machinery (1.0%)
9,968	Caterpillar Inc.	780,395
3,111	Cummins Inc.	145,657
6,879	Deere & Co.	553,347
2,090	Manitowoc Co., Inc.	85,272
5,703	PACCAR, Inc.	256,635
1,594	Terex Corp.*	99,625
		1,920,931
	Wholesale Distributors (0.1%)
2,612	Genuine Parts Co.	105,055
1,056	Grainger (W.W.), Inc.	80,668
		185,723
	Total Common Stocks (Cost $129,964,330)	182,424,234

NUMBER OF
SHARES (000)
	Short-Term Investment (a) (1.6%)
	Investment Company
2,875	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class (Cost $2,875,232)			2,875,232
	Total Investments (Cost $132,839,562) (b) (c)	100.2	%	185,299,466
	Liabilities in Excess of Other Assets	(0.2	)	(452,281		)
	Net Assets	100.0	%	$	184,847,185

*	Non-income producing security.
**	A portion of this security has been physically segregated in connection with open futures contracts in the amount of $266,800.
#	A security with total market value equal to $0 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.
@	Consist of one or more class of securities traded together as a unit: stocks with attached warrants.
+	As of March 31, 2008 the cost of purchases and sales of Citigroup, Inc. common stock, an affiliate of the Portfolio was $54,664 and $290,818, respectively, including net realized loss of $112,854.
++	As of March 31, 2008 the cost of purchases and sales of Morgan Stanley common stock, an affiliate of the Portfolio, was $0 and $60,832, respectively, including net realized loss of $1,233.
+++	As of March 31, 2008 the cost of purchases and sales of MetLife, Inc. common stock, an affiliate of the Portfolio, was $0 and $50,411, respectively, including net realized gain of $30,637.
++++	As of March 31, 2008 the cost of purchases and sales of Allstate Corp. common stock, an affiliate of the Portfolio, was $5,736 and $31,151, respectively, including net realized gain of $8,862.
(a)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(b)	Securities have been designated as collateral in amount equal to $3,943,800 in connection with open futures contracts
(b)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

·Level 1 – quoted prices in active markets for identical investments

·Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

·Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	185,299,466	$	185,299,466	—		—
Other Financial Instruments*	99,058		99,058		—		—
Total	$	185,398,524	$	185,398,524	$	0	$	0

* Other financial instruments include futures, forwards, and swap contracts.

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) futures are valued at the latest price published by the commodities exchange on which they trade; (6) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.  Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (7) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (8) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at net assets value as of the close of each business day; and (9) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Futures Contracts Open at March 31, 2008:

NUMBER OF		DESCRIPTION, DELIVERY	UNDERLYING FACE		UNREALIZED
CONTRACTS	LONG/SHORT	MONTH AND YEAR	AMOUNT AT VALUE		APPRECIATION
63	Long	S&P 500 Index E-MINI
		June 2008	$	4,317,390	$	99,058

Morgan Stanley Variable Investment Series - Global Advantage Portfolio

Portfolio of Investments March 31, 2008  (unaudited)

NUMBER OF SHARES		VALUE
	Common Stocks (98.2%)
	Australia # (1.8%)
	Data Processing Services
45,000	Computershare Ltd.	$	361,155
	Bermuda (7.5%)
	Apparel/Footwear Retail #
41,500	Esprit Holdings Ltd. **	497,331
	Investment Banks/Brokers
20,800	MF Global Ltd.*	206,128
	Multi-Line Insurance
10,502	Axis Capital Holdings Ltd.	356,858
	Wholesale Distributors #
118,200	Li & Fung Ltd. **	442,262
	Total Bermuda	1,502,579
	Canada (1.5%)
	Food: Specialty/Candy
60,800	SunOpta Inc.*	310,080
	France # (1.7%)
	Pharmaceuticals: Other
6,200	Ipsen S.A.	352,269
	Germany # (6.0%)
	Apparel/Footwear
5,430	Adidas AG	361,250
	Medical Specialties
5,982	Fresenius SE	508,940
	Other Consumer Services
19,015	Wirecard AG*	333,048
	Total Germany	1,203,238
	Greece # (2.5%)
	Regional Banks
16,292	EFG Eurobank Ergasias	496,661
	Israel (3.5%)
	Food: Specialty/Candy #
14,137	Strauss Group Ltd.	205,817
	Pharmaceuticals: Other
10,600	Teva Pharmaceutical Industries Ltd. (ADR)	489,614
	Total Israel	695,431
	Italy # (2.1%)
	Major Banks
64,146	UniCredit SpA	428,815
	Japan # (2.5%)
	Home Building
9,900	Daito Trust Construction Co., Ltd.	512,033
	Mexico (3.2%)
	Beverages: Non-Alcoholic
7,800	Fomento Economico Mexicano, S.A.B. de C.V. (ADR) (Units) @	325,884
	Other Transportation
5,500	Grupo Aeroportuario del Sureste S.A.B de C.V. (ADR) (Series B)	313,445
	Total Mexico	639,329

	Singapore (5.2%)
	Airlines #
34,533	Singapore Airlines Ltd.	392,851
	Electronic Components
25,900	Flextronics International Ltd.*	243,201
	Marine Shipping #
148,634	Cosco Corp (Singapore) Ltd.	402,820
	Total Singapore	1,038,872
	South Africa # (1.2%)
	Pharmaceuticals: Generic Drugs
61,700	Aspen Pharmacare Holdings Ltd.*	242,964
	Spain (4.8%)
	Major Banks
17,451	Banco Santander S.A.	347,692
	Major Telecommunications
21,460	Telefonica S.A.	616,618
	Total Spain	964,310
	Sweden # (1.1%)
	Packaged Software
10,915	Orc Software AB	218,807
	Switzerland # (1.8%)
	Chemicals: Specialty
2,800	Lonza Group AG (Registered Shares)	371,629
	United Kingdom # (14.6%)
	Beverages: Alcoholic
20,861	SABMiller PLC	456,985
	Investment Managers
66,900	BlueBay Asset Management PLC	460,293
25,923	Man Group PLC	285,209
		745,502
	Major Banks
19,169	Standard Chartered PLC	654,910
	Miscellaneous Commercial Services
6,800	Homeserve PLC	259,474
27,696	Intertek Group PLC	567,162
		826,636
	Pharmaceuticals: Other
13,487	Shire PLC	260,645
	Total United Kingdom	2,944,678
	United States (37.2%)
	Beverages: Non-Alcoholic
5,300	PepsiCo, Inc.	382,660
	Biotechnology
9,400	Gilead Sciences, Inc.*	484,382
	Computer Processing Hardware
4,263	Apple Inc.*	611,740
	Electric Utilities
6,100	Constellation Energy Group	538,447
	Electronic Components
12,800	Amphenol Corporation (Class A)	476,800
	Financial Conglomerates
5,950	Prudential Financial, Inc.	465,587
	Food: Meat/Fish/Dairy
25,700	Smart Balance Inc.	203,030
	Insurance Brokers/Services
6,200	Willis Group Holdings Ltd.	208,382

	Life/Health Insurance
9,700	AFLAC, Inc.	630,015
	Media Conglomerates
11,216	News Corp. (Class A)	210,300
	Medical Specialties
4,100	Bard (C.R.), Inc.	395,240
9,800	Thermo Fisher Scientific, Inc.*	557,032
8,600	West Pharmaceutical Services, Inc.	380,378
		1,332,650
	Miscellaneous Commercial Services
5,400	Bright Horizons Family Solutions, Inc.*	232,416
7,600	FTI Consulting Inc.*	539,904
		772,320
	Specialty Stores
12,640	Staples, Inc.	279,470
	Telecommunication Equipment
11,741	Corning Inc.	282,254
	Wireless Telecommunications
18,000	Metropcs Communications Inc.*	306,000
9,400	NII Holdings Inc.*	298,732
		604,732
	Total United States	7,482,769
	Total Common Stocks (Cost $16,643,633)	19,765,619

NUMBER OF
SHARES (000)
	Short-Term Investment (a) (0.9%)
	Investment Company
168	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class
	(Cost $167,795)			167,795
	Total Investments
	(Cost $16,811,428) (b)	99.1	%	19,933,414
	Other Assets in Excess of Liabilities	0.9		185,731
	Net Assets	100.0	%	$	20,119,145

ADR	American Depositary Receipt.
*	Non-income producing security.
**	Security trades on a Hong Kong exchange.
#	Securities with total market value equal to $9,073,329 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.
@	Consists of one or more class of securities traded together as a unit; stocks with attached warrants.
(a)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(b)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	19,933,414	$	10,860,085	$	9,073,329	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at net assets value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - Global Advantage Portfolio

Summary of Investments March 31, 2008 (unaudited)

			PERCENT OF
			TOTAL
INDUSTRY	VALUE		INVESTMENTS
Medical Specialties	$	1,841,590	9.2	%
Miscellaneous Commercial Services	1,598,955		8.0
Major Banks	1,431,417		7.2
Pharmaceuticals: Other	1,102,529		5.5
Investment Managers	745,502		3.7
Electronic Components	720,001		3.6
Beverages: Non-Alcoholic	708,544		3.6
Life/Health Insurance	630,015		3.2
Major Telecommunications	616,618		3.1
Computer Processing Hardware	611,740		3.1
Wireless Telecommunications	604,732		3.0
Electric Utilities	538,447		2.7
Food: Specialty/Candy	515,897		2.6
Home Building	512,033		2.6
Apparel/Footwear Retail	497,331		2.5
Regional Banks	496,661		2.5
Biotechnology	484,382		2.4
Financial Conglomerates	465,587		2.3
Beverages: Alcoholic	456,985		2.3
Wholesale Distributors	442,262		2.2
Marine Shipping	402,820		2.0
Airlines	392,851		2.0
Chemicals: Specialty	371,629		1.9
Apparel/Footwear	361,250		1.8
Data Processing Services	361,155		1.8
Multi-Line Insurance	356,858		1.8
Other Consumer Services	333,048		1.7
Other Transportation	313,445		1.6
Telecommunication Equipment	282,254		1.4
Specialty Stores	279,470		1.4
Pharmaceuticals: Generic Drugs	242,964		1.2
Packaged Software	218,807		1.1
Media Conglomerates	210,300		1.1
Insurance Brokers/Services	208,382		1.1
Investment Banks/Brokers	206,128		1.0
Food: Meat/Fish/Dairy	203,030		1.0
Short-Term Investments	167,795		0.8
	$	19,933,414	100.0	%

Morgan Stanley Variable Investment Series - Aggressive Equity Portfolio

Portfolio of Investments March 31, 2008  (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (92.1%)
	Air Freight/Couriers (5.0%)
24,405	C.H. Robinson Worldwide, Inc.	$	1,327,632
22,319	Expeditors International of Washington, Inc.	1,008,372
		2,336,004
	Apparel/Footwear Retail (2.9%)
18,492	Abercrombie & Fitch Co. (Class A)	1,352,505
	Biotechnology (5.7%)
19,243	Illumina, Inc.*	1,460,544
17,644	Techne Corp.*	1,188,500
		2,649,044
	Casino/Gaming (4.3%)
20,004	Wynn Resorts, Ltd.	2,013,203
	Chemicals: Agricultural (7.7%)
31,925	Monsanto Co.	3,559,637
	Chemicals: Major Diversified (2.1%)
46,533	Nalco Holding Co.	984,173
	Computer Processing Hardware (2.5%)
8,001	Apple Inc.*	1,148,143
	Construction Materials (3.4%)
59,678	Cemex SAB de C.V. (ADR) (Mexico)*	1,558,789
	Finance Energy (1.2%)
32,339	Brookfield Infrastructure Partners LP	548,146
	Finance/Rental/Leasing (2.6%)
5,419	MasterCard, Inc. (Class A)	1,208,383
	Financial Conglomerates (3.9%)
67,509	Brookfield Asset Management Inc. (Class A) (Canada)	1,811,266
	Information Technology Services (0.8%)
8,634	VMware Inc (Class A)*	369,708
	Internet Retail (5.4%)
34,969	Amazon.com, Inc.*	2,493,290
	Internet Software/Services (9.2%)
4,024	Baidu.com, Inc. (ADR) (Cayman Islands)*	964,271
5,580	Google Inc. (Class A)*	2,457,823
147,800	Tencent Holdings Ltd. (Cayman Islands) # (a)	841,361
		4,263,455
	Investment Banks/Brokers (3.1%)
20,826	Greenhill & Co., Inc.	1,448,657
	Miscellaneous Commercial Services (4.0%)
18,522	Corporate Executive Board Co. (The)	749,771
25,478	Costar Group, Inc.*	1,095,554
		1,845,325
	Oil & Gas Production (10.4%)
55,342	Southwestern Energy Co.*	1,864,472
38,350	Ultra Petroleum Corp. (Canada)*	2,972,125
		4,836,597

	Other Consumer Services (4.2%)
65,557	eBay Inc.*	1,956,221
	Restaurants (2.2%)
58,877	Starbucks Corp.*	1,030,347
	Specialty Telecommunications (2.1%)
54,546	Cogent Communications Group, Inc.*	998,737
	Telecommunication Equipment (4.4%)
18,370	Research In Motion Ltd. (Canada)*	2,061,665
	Wholesale Distributors (2.5%)
312,000	Li & Fung Ltd. (Bermuda)* # (a)	1,167,391
	Wireless Telecommunications (2.5%)
18,477	America Movil SAB de C.V. (Series L) (ADR) (Mexico)	1,176,800
	Total Common Stocks (Cost $37,112,538)	42,817,486
	Investment Trusts/Mutual Funds (2.6%)
66,669	Aeroplan Income Fund (Units) (Canada) @ (Cost $1,055,248)	1,185,357

NUMBER OF
SHARES (000)
	Short-Term Investment (b) (5.4%)
	Investment Company
2,533	Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class (Cost $2,533,307)			2,533,307
	Total Investments (Cost $40,701,093) (c)	100.1	%	46,536,150
	Liabilities in Excess of Other Assets	(0.1	)	(43,207		)
	Net Assets	100.0	%	$	46,492,943

ADR	American Depositary Receipt.
*	Non-income producing security.
#	Security trades on a Hong Kong exchange.
@	Consists of one or more class of securities traded together as a unit; stocks with attached warrants.
(a)	Securities with total market value equal to $2,008,752 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.
(b)	The Fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(c)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely

transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

· Level 1 – quoted prices in active markets for identical investments

· Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

· Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with

investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried

at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In		Significant		Significant
			Active Market for		Other Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Investments in Securities	$	46,536,150	$	44,527,398	$	2,008,752	—

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under  procedures established by and under the general supervision of the Fund’s Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (6) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (7) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at net assets value as of the close of each business day; and (8) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Morgan Stanley Variable Investment Series - Strategist

Portfolio of Investments March 31, 2008 (unaudited)

NUMBER OF
SHARES		VALUE
	Common Stocks (64.5%)
	Advertising/Marketing Services (0.6%)
37,120	Omnicom Group, Inc.	$	1,639,962
	Aerospace & Defense (2.8%)
49,715	Northrop Grumman Corp.	3,868,324
57,135	Raytheon Co.	3,691,492
		7,559,816
	Aluminum (0.9%)
47,295	Alcoa, Inc.	1,705,458
20,920	Aluminum Corp. of China Ltd. (ADR) (China)	845,796
		2,551,254
	Automotive Aftermarket (0.3%)
32,660	Goodyear Tire & Rubber Co. (The) *	842,628
	Biotechnology (1.7%)
38,130	Celgene Corp. *	2,336,988
44,860	Gilead Sciences, Inc. *	2,311,636
		4,648,624
	Chemicals: Major Diversified (0.6%)
46,500	Dow Chemical Co. (The)	1,713,525
	Computer Communications (0.9%)
101,185	Cisco Systems, Inc. *	2,437,547
	Computer Peripherals (0.8%)
151,345	EMC Corp. *	2,170,287
	Computer Processing Hardware (2.3%)
32,225	Apple Inc. *	4,624,288
77,470	Dell Inc. *	1,543,202
		6,167,490
	Department Stores (1.0%)
28,750	Kohl’s Corp. *	1,233,088
67,465	Macy’s, Inc.	1,555,743
		2,788,831
	Discount Stores (0.8%)
35,230	Costco Wholesale Corp.	2,288,893
	Electric Utilities (0.5%)
34,155	American Electric Power Co., Inc.	1,421,873
	Electrical Products (0.8%)
43,010	Emerson Electric Co.	2,213,295
	Electronics/Appliances (1.0%)
69,450	Sony Corp. (ADR) (Japan)	2,782,862
	Finance/Rental/Leasing (0.6%)
28,150	Visa, Inc. - (Class A) *	1,755,434
	Financial Conglomerates (1.3%)
42,075	American Express Co.	1,839,519
36,960	JPMorgan Chase & Co.	1,587,432
		3,426,951
	Food: Major Diversified (3.0%)
69,900	Kellogg Co.	3,673,944
145,010	Kraft Foods Inc. (Class A)	4,496,760
		8,170,704
	Forest Products (1.2%)
50,260	Weyerhaeuser Co.	3,268,910
	Home Building (0.4%)
34,360	Gafisa S.A. (ADR) (Brazil) (a)*	1,146,250

	Home Improvement Chains (0.6%)
72,295	Lowe’s Companies, Inc.	1,658,447
	Household/Personal Care (1.3%)
46,385	Colgate-Palmolive Co.	3,613,855
	Information Technology Services (1.7%)
39,250	International Business Machines Corp.	4,519,245
	Integrated Oil (2.3%)
35,790	Exxon Mobil Corp.	3,027,118
35,680	Hess Corp.	3,146,262
		6,173,380
	Internet Software/Services (1.5%)
3,670	Google Inc. (Class A) *	1,616,525
88,505	Yahoo! Inc. *	2,560,450
		4,176,975
	Investment Banks/Brokers (3.2%)
181,875	Charles Schwab Corp. (The)	3,424,706
10,530	Goldman Sachs Group, Inc. (The)	1,741,557
39,410	Lazard Ltd. (Class A) (Bermuda)	1,505,462
34,335	NYSE Euronext	2,118,813
		8,790,538
	Major Banks (1.8%)
53,450	Bank of America Corp.	2,026,290
46,360	Wachovia Corp.	1,251,720
51,215	Wells Fargo & Co.	1,490,357
		4,768,367
	Media Conglomerates (0.5%)
88,900	Time Warner, Inc.	1,246,378
	Medical Specialties (5.9%)
81,650	Applera Corp. - Celera Genomics Group *	1,200,255
36,460	Bard (C.R.), Inc.	3,514,744
40,865	Covidien Ltd.	1,808,276
82,870	St. Jude Medical, Inc. *	3,579,155
66,070	Thermo Fisher Scientific, Inc. *	3,755,419
27,550	Zimmer Holdings, Inc. *	2,145,043
		16,002,892
	Motor Vehicles (0.8%)
77,670	Honda Motor Co., Ltd. (ADR) (Japan)	2,237,673
	Oilfield Services/Equipment (1.3%)
45,565	Halliburton Co.	1,792,071
27,865	Smith International, Inc.	1,789,769
		3,581,840
	Packaged Software (4.4%)
134,180	Microsoft Corp.	3,808,028
232,895	Oracle Corp. *	4,555,426
143,455	Sybase, Inc. *	3,772,867
		12,136,321
	Pharmaceuticals: Major (2.0%)
47,610	Johnson & Johnson	3,088,461
111,650	Pfizer, Inc.	2,336,835
		5,425,296
	Precious Metals (1.1%)
68,510	Barrick Gold Corp. (Canada)	2,976,760
	Property - Casualty Insurers (0.5%)
30,370	Allstate Corp. (The)	1,459,582
	Pulp & Paper (1.5%)
210,340	AbitibiBowater, Inc. (a)	2,715,489
49,570	MeadWestvaco Corp.	1,349,295
		4,064,784
	Recreational Products (0.7%)
90,500	Mattel, Inc.	1,800,950
	Restaurants (1.1%)
51,510	McDonald’s Corp.	2,872,713

	Semiconductors (1.9%)
142,235	Intel Corp.	3,012,537
203,470	Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) (Taiwan)	2,089,637
		5,102,174
	Specialty Telecommunications (1.5%)
125,600	Citizens Communications Co.	1,317,544
227,199	Windstream Corp.	2,715,028
		4,032,572
	Steel (1.4%)
29,507	United States Steel Corp.	3,743,553
	Telecommunication Equipment (0.9%)
78,065	Nokia Corp. (ADR) (Finland)	2,484,809
	Tobacco (2.7%)
50,870	Altria Group, Inc.	1,129,314
50,870	Philip Morris International Inc. *	2,573,005
66,440	UST, Inc.	3,622,309
		7,324,628
	Trucks/Construction/Farm Machinery (1.7%)
34,530	Caterpillar Inc.	2,703,354
40,210	PACCAR, Inc.	1,809,450
		4,512,804
	Wireless Telecommunications (0.7%)
118,650	Metropcs Communications Inc. *	2,017,050
	Total Common Stocks
	(Cost $133,354,770)	175,718,722

PRINCIPAL
AMOUNT IN		COUPON		MATURITY
THOUSANDS		RATE		DATE
	Corporate Bonds (5.9%)
	Aerospace & Defense (0.1%)
241	Systems 2001 Asset Trust - 144A** (Cayman Islands)	6.664	%	09/15/13	241,376
	Agricultural Commodities/Milling (0.0%)
90	Archer Daniels Midland	5.45		03/15/18	90,647
	Airlines (0.1%)
334	America West Airlines, Inc. (Series 01-1)	7.10		04/02/21	332,138
	Beverages: Alcoholic (0.2%)
205	FBG Finance Ltd. - 144A** (Australia)	5.125		06/15/15	203,403
195	Miller Brewing Co. - 144A**	4.25		08/15/08	195,804
					399,207
	Biotechnology (0.1%)
45	Amgen, Inc.	5.85		6/1/2017	45,043
110	Biogen Idec, Inc.	6.875		03/01/18	111,331
					156,374
	Cable/Satellite TV (0.1%)
110	Comcast Cable Communications, Inc.	6.75		01/30/11	114,436
30	Comcast Corp.	6.50		01/15/15	30,764
					145,200
	Chemicals: Major Diversified (0.0%)
105	ICI Wilmington Inc.	4.375		12/01/08	105,561
	Computer Processing Hardware (0.0%)
45	Hewlett-Packard Co.	5.50		03/01/18	46,191
	Department Stores (0.1%)
275	May Department Stores Co.	5.95		11/01/08	275,705
	Drugstore Chains (0.1%)
25	CVS Caremark Corp.	5.75		06/01/17	25,434
55	CVS Caremark Corp.	5.75		08/15/11	57,579
160	CVS Lease Pass Through - 144A**	6.036		12/10/28	153,218
					236,231
	Electric Utilities (0.6%)
15	Appalachian Power Co. (Series O)	5.65		08/15/12	15,441
175	Arizona Public Service Co.	5.80		06/30/14	171,801

185	Carolina Power & Light Co.	5.125		09/15/13		194,238
55	CenterPoint Energy Resources, Corp.	6.25		02/01/37		51,468
25	CenterPoint Energy Resources, Corp. (Series B)	7.875		04/01/13		27,800
65	Consolidated Natural Gas Co. (Series C)	6.25		11/01/11		68,733
125	Consumers Energy Co. (Series H)	4.80		02/17/09		125,842
100	Detroit Edison Co. (The)	6.125		10/01/10		105,994
85	Entergy Gulf States, Inc.	3.60		06/01/08		84,790
130	Entergy Gulf States, Inc.	3.475	††	12/01/09		127,287
65	Ohio Edison Co.	6.40		07/15/16		67,077
170	Ohio Power Company (Series K)	6.00		06/01/16		171,018
60	Peco Energy Co.	5.35		03/01/18		60,943
125	Public Service Electric & Gas Co. (Series MTN B)	5.00		01/01/13		128,479
85	Texas Eastern Transmission, PC.	7.00		07/15/32		90,848
						1,491,759
	Electrical Products (0.1%)
175	Cooper Industries, Inc.	5.25		11/15/12		181,552
	Electronic Components (0.1%)
140	Philips Electronics	5.75		03/01/18		142,915
	Electronics/Appliances (0.0%)
130	LG Electronics Inc. - 144A** (South Korea)	5.00		06/17/10		128,786
	Finance/Rental/Leasing (0.2%)
155	Capmark Financial Group Inc. - 144A**	5.875		05/10/12		98,285
65	Capmark Financial Group Inc. - 144A**	6.30		05/10/17		39,031
125	CIT Group Inc. (Series MTN)	4.75		08/15/08		115,100
150	Countrywide Home Loans, Inc. (Series MTN L) (a)	3.25		05/21/08		147,110
210	Nationwide Building Society - 144A** (United Kingdom)	4.25		02/01/10		214,980
						614,506
	Financial Conglomerates (0.2%)
85	Brookfield Asset Management Inc. (Canada)	5.80		04/25/17		76,833
295	Chase Manhattan Corp.	6.00		02/15/09		299,621
110	Citigroup Inc.	5.875		05/29/37		95,847
95	General Electric Capital Corp. (Series MTN A)	4.25		12/01/10		97,433
40	Prudential Financial Inc.	6.625		12/01/37		39,636
						609,370
	Food Retail (0.0%)
50	Kroger Co.	5.00		04/15/13		50,333
	Food: Major Diversified (0.1%)
50	ConAgra Foods, Inc.	7.00		10/01/28		50,792
90	ConAgra Foods, Inc.	8.25		09/15/30		103,706
						154,498
	Gas Distributors (0.1%)
130	NiSource Finance Corp.	3.662	††	11/23/09		126,244
40	Equitable Resources	6.50		04/01/18		40,277
						166,521
	Home Improvement Chains (0.1%)
100	Home Depot Inc.	5.40		03/01/16		94,143
250	Home Depot Inc.	2.925	††	12/16/09		238,504
						332,647
	Industrial Conglomerates (0.2%)
470	General Electric Co.	5.25		12/06/17		470,234
60	Honeywell International, Inc.	5.30		03/01/18		61,603
125	Textron Financial Corp. (Series MTN)	5.125		02/03/11		130,085
						661,922
	Insurance Brokers/Services (0.2%)
210	Catlin Insurance Co., Ltd. - 144A** (Bahamas)	7.249			#	175,549
375	Farmers Exchange Capital - 144A**	7.05			07/15/28	345,208
						520,757
	Investment Banks/Brokers (0.5%)
95	Bear Stearns Co. Inc.	6.40			10/02/17	93,968
130	Bear Stearns Co. Inc.	7.25			02/01/18	134,576
260	Credit Suisse New York	6.00			02/15/18	259,857
205	Goldman Sachs Group Inc.	6.75			##	191,300
145	Goldman Sachs Group Inc.	6.15		04/01/18		145,052
135	Lehman Brothers Holdings, Inc.	6.50		07/19/17		128,421
90	Lehman Brothers Holdings, Inc.	5.75		01/03/17		81,440
240	Lehman Brothers Holdings, Inc.	6.875		07/17/37		208,690
						1,243,304

	Major Banks (0.5%)
115	Bank of America Corp.	5.75		12/01/17			119,227
75	Bank of New York Mellon	4.50		04/01/13			75,616
115	HSBC Finance Corp.	6.75		05/15/11			119,384
255	MBNA Corp. (Series MTN F)	3.525	††	05/05/08			255,206
125	Popular North America, Inc. (Series MTN F)	5.65		04/15/09			124,381
360	Unicredit Luxembourg Finance S.A. - 144A** (Luxembourg)	3.767	††		10/24/08		359,673
335	Wachovia Capital Trust III	5.80			##		238,836
210	Wells Fargo Company	5.625		12/11/17			215,200
							1,507,523
	Major Telecommunications (0.5%)
50	AT&T Corp.	8.00		11/15/31			58,593
180	AT&T Inc. Note	6.30		01/15/38			174,619
175	France Telecom S.A. (France)	8.50		03/01/31			217,418
125	SBC Communications, Inc.	6.15		09/15/34			120,449
130	Sprint Capital Corp.	8.75		03/15/32			110,096
110	Telecom Italia Capital SA (Luxembourg)	4.00		11/15/08			109,007
115	Telecom Italia Capital SA (Luxembourg)	4.00		01/15/10			112,861
45	Telecom Italia Capital SA (Luxembourg)	4.95		09/30/14			41,008
175	Telefonica Europe BV (Netherlands)	8.25		09/15/30			204,936
130	Verizon Communications	5.50		02/15/18			126,853
							1,275,840
	Managed Health Care (0.0%)
80	UnitedHealth Group Inc.	6.00		02/15/18			78,505
	Media Conglomerates (0.2%)
325	Time Warner, Inc.	3.30	††	11/13/09			311,323
160	Viacom, Inc.	6.875		04/30/36			154,540
							465,863
	Motor Vehicles (0.0%)
80	DaimlerChrysler North American Holdings Co.	8.50		01/18/31			91,697
	Multi-Line Insurance (0.4%)
490	AIG SunAmerica Global Financing VI - 144A**	6.30		05/10/11			515,288
250	American General Finance Corp. (Series MTN H)	4.625		09/01/10			249,242
325	Equitable Co.	6.50				04/01/08	325,000
225	Two-Rock Pass Through - 144A** (Bahamas)	4.036	††			#	90,000
							1,179,530
	Oil & Gas Pipelines (0.1%)
170	Plains All American Pipeline LP/PAA Finance Corp.	6.70		05/15/36			164,458
	Oil Refining/Marketing (0.1%)
135	Valero Energy Corp.	3.50		04/01/09			134,177
90	Marathon Oil Corp.	6.00		10/01/17			91,464
50	Marathon Oil Corp.	5.90		03/15/18			50,354
							275,995
	Oilfield Services/Equipment (0.0%)
70	Weatherford International, Inc.	6.00		03/15/18			70,495
	Other Metals/Minerals (0.1%)
185	Brascan Corp. (Canada)	7.125		06/15/12			184,853
	Pharmaceuticals: Major (0.0%)
15	Wyeth	5.50		02/15/16			15,319
60	Wyeth	5.45		04/01/17			61,218
							76,537
	Property - Casualty Insurers (0.2%)
300	Mantis Reef Ltd. - 144A** (Cayman Islands)	4.692		11/14/08			302,268
85	Platinum Underwriters Finance Inc. (Series B)	7.50		06/01/17			85,518
260	Xlliac Global Funding - 144A**	4.80		08/10/10			260,474
							648,260
	Railroads (0.0%)
105	Burlington North Santa Fe Railway Co.	6.125		03/15/09			107,051
	Real Estate Development (0.1%)
376	World Financial Properties - 144A**	6.91		09/01/13			359,631
	Real Estate Investment Trusts (0.1%)
260	iStar Financial Inc.	3.34	††	03/09/10			205,728
	Restaurants (0.1%)
135	Tricon Global Restaurants, Inc.	8.875		04/15/11			148,879

	Savings Banks (0.3%)
110	Household Finance Corp.	4.125	12/15/08	109,885
95	Household Finance Corp.	5.875	02/01/09	95,732
75	Household Finance Corp.	6.375	10/15/11	77,153
75	Household Finance Corp.	6.40	06/17/08	75,340
320	Sovereign Bancorp, Inc.	5.113	03/23/10	306,554
165	Washington Mutual Bank	5.50	01/15/13	131,306
100	Washington Mutual Preferred Funding II	6.665	##	54,075
				850,045
	Services to the Health industry (0.0%)
80	Medco Health Solutions	7.125	03/15/18	82,117
	Total Corporate Bonds (Cost $16,832,300)			16,100,507
	U.S. Government Obligations (2.6%)
	U.S. Treasury Bond
2,250		6.125	08/15/29	2,817,950
200		6.375	08/15/27	254,563
450		4.50	02/15/36	465,012
550		3.125	11/30/09	563,535
	U.S. Treasury Note
750		6.00	08/15/09	795,821
1,800		5.375	02/15/31	2,082,377
	Total U.S. Government Obligations (Cost $6,782,870)			6,979,258
	U.S. Government Agency-Mortgage-Backed Securities (4.5%)
	Federal Home Loan Mortgage Corp.
63		7.50	01/01/30-04/01/31	67,958
300		5.125	11/17/17	322,395
	Federal Home Loan Mortgage Corp. ARM
315		5.61	04/01/37	320,759
422		5.695	01/01/37	430,851
	Federal Home Loan Mortgage Corp. PC Gold
3		6.50	05/01/29-12/01/31	2,810
169		8.00	11/01/30	183,319
	Federal National Mortgage Assoc.
3		6.50	11/01/29	3,194
469		6.533	03/01/36	480,661
1,017		6.51	01/01/36	1,043,287
440		6.507	03/01/36	449,837
1,071		7.00	10/01/27-11/01/34	1,136,829
459		6.914	05/01/36	473,955
458		6.933	05/01/36	468,293
795		7.50	10/01/29-09/01/35	858,419
563		8.00	11/01/29-05/01/31	610,392
	Federal National Mortgage Assoc. ARM
294		5.969	04/01/37	301,744
85		6.714	07/01/33	86,715
576		6.456	10/01/35	593,281
576		6.46	12/01/35	592,881
490		6.463	11/01/35	504,338
958		6.52	01/01/36	982,491
294		6.967	07/01/36	300,945
478		6.974	07/01/36	490,934
553		6.983	04/01/36	566,221
990		6.991	04/01/36	1,013,294
	Total U.S. Government Agency-Mortgage-Backed Securities (Cost $12,230,810)			12,285,803
	Asset-Backed Securities (2.1%)
46	Banc of America Securities Auto Trust 2005-WF1 A3	3.99	08/18/09	46,150
32	Capital Auto Receivables Asset Trust 2005-1 A4	4.05	07/15/09	31,548
525	Capital Auto Receivables Asset Trust 2006-2 A3A	4.98	05/15/11	531,075
425	Capital Auto Receivables Asset Trust 2006-SN1A A3 144A**	5.31	10/20/09	427,564

475	Capital Auto Receivables Assets Trust 2007-SN1 Class A3B	2.877	††	07/15/10	469,031
224	Capital One Auto Finance Trust 2006-C A3A	5.07		07/15/11	220,292
333	Caterpillar Financial Asset Trust 2006-A A3	5.57		05/25/10	336,652
375	CIT Equipment Collateral 2006-VT2 A3	5.07		02/20/10	378,225
450	Citibank Credit Card Issuance Trust 2007-A1 A1	2.588	††	03/22/12	442,255
38	DaimlerChrysler Auto Trust 2005-B A3	4.04		09/08/09	37,759
157	Ford Credit Auto Owner Trust 2006-A A3	5.05		03/15/10	158,340
432	GS Auto Loan Trust 2006-1 A3	5.37		12/15/10	436,312
193	Harley Davidson Motorcycle Trust 2005-3 A2	4.41		06/15/12	194,935
439	Harley-Davidson Motorcycle Trust 2005-1 A2	3.76		12/17/12	439,445
301	Harley-Davidson Motorcycle Trust 2005-2 A2	4.07		02/15/12	302,396
300	Hertz Vehicle Financing LLC 2005-2A A2 - 144A**	4.93		02/25/10	296,500
51	Honda Auto Receivables Owner Trust 2005-3 A3	3.87		04/20/09	51,100
179	Honda Auto Receivables Owner Trust 2005-6 A3	4.85		10/19/09	180,253
77	Hyundai Auto Receivables Trust 2005-A A3	3.98		11/16/09	77,246
100	Lehman XS Trust 2006-16N M2	2.998	††	11/25/46	42,917
46	Merrill Auto Trust Securitization 2005-1 A3	4.10		08/25/09	46,204
162	National City Auto Receivables Trust 2004-A A4	2.88		05/15/11	121,445
95	Nissan Auto Receivables Owner Trust 2005-B A3	3.99		07/15/09	95,601
125	TXU Electric Delivery Transition Bond Co. LLC 2004-1 A2	4.81		11/17/14	128,082
4	USAA Auto Owner Trust 2005-1 A3	3.90		07/15/09	4,201
67	Volkswagen Auto Loan Enhanced Trust 2005-1 A3	4.80		07/20/09	67,682
35	Wachovia Auto Owner Trust 2005-A A3	4.06		09/21/09	34,969
135	Wachovia Auto Owner Trust 2005-B A3	4.79		04/20/10	135,343
	Total Asset-Backed Securities (Cost $5,763,919)				5,733,522
	Collateralized Mortgage Obligations (3.4%)
	U.S. Government Agencies (0.6%)
253	Federal Home Loan Mortgage Corp. Whole Loan 2005-S001 2A2	2.748	††	09/25/45	248,966
1,000	Federal National Mortgage Assoc. 2005-68 XI (IO)	6.00		08/25/35	244,278
4,514	Federal National Mortgage Assoc. 2006-28 1P (IO)	1.519	††	03/25/36	146,155
539	Federal National Mortgage Assoc. 2006-118 A2	2.666	††	12/25/36	517,274
387	Federal National Mortgage Assoc. 2006-28 1A1	2.716	††	03/25/36	374,631
	Total U.S. Government Agencies(Cost $1,406,761)				1,531,304
	Private Issues (2.8%)
237	Adjustable Rate Mortgage Trust - 2005-6A 2A1	2.908	††	11/25/35	185,741
	American Home Mortgage Assets
427	2006-2	2.828	††	09/25/46	261,655
519	2007-5 A2	2.838	††	06/25/47	341,391
212	2007-5 A3	2.898	††	06/25/47	104,245
	American Home Mortgage Investment Trust
125	2005-4 1M2	3.855	††	11/25/45	47,272
200	2007-1 1M1	2.978	††	03/25/46	90,208
465	2007-1 GA1C	2.788	††	05/25/47	354,275
	Bear Stearns Mortgage Funding Trust
333	2006-AR5 1A1	2.758	††	12/25/36	253,466
334	2007-AR1 1A2	2.808	††	01/25/37	204,142
	Countrywide Alternative Loan Trust
307	2005-56 2A3	5.736	††	11/25/35	233,079
2,623	2006-0A17 (IO)	1.276	††	12/20/46	127,572
144	2006-0A18	2.868	††	12/25/46	70,319
314	2006-0A2 A3	2.805	††	05/20/46	196,279
156	2006-0A21	2.815	††	03/20/47	75,055
2,660	2006-0A21 X (IO)	1.53		03/20/47	137,740
306	2006-OA1 2A2	2.845	††	03/20/46	207,562
179	2006-OA17 1XP (IO)	2.835	††	12/20/46	86,789
2,543	2007-0A3 X (IO)	2.00		04/25/47	108,083
481	2007-0A8 2A2	2.828	††	06/25/47	297,284
455	Greenpoint Mortgage Funding Trust 2006-0H1 A2	2.828	††	01/25/37	329,106
	Harborview Mortgage Loan Trust
450	2006-14 2A1A	2.708	††	03/19/38	341,403
361	2006-8 2A1B	2.848	††	08/21/36	232,913
472	2006-AR1 2A1A	2.738	††	11/19/36	359,998
382	Luminent Mortgage Trust 2006-4, A1B	2.828	††	05/25/46	245,498
200	Master Adjustable Rate Mortgages Trust 2007-3 1M1	3.448	††	05/25/47	34,000
	Residential Accredit Loans, Inc.
660	2006-Q010 A1	2.758	††	01/25/37	495,034

353		2007-Q03 A3	2.858	††	03/25/47		170,042
549		2007-QH1 A2	2.788	††	02/25/37		338,033
		Structured Asset Mortgage Investments Inc.
546		2007-AR1 2A2	2.808	††	01/25/37		341,439
150		2006-AR7	2.968	††	08/25/36		72,284
		Washington Mutual Mortgage Pass-Through Cetificates
221		2005-AR13 A1A2	5.776	††	10/25/45		161,103
6,512		2005-AR6 X (IO)	1.166		04/25/45		133,128
75		2006-AR5	2.948	††	06/25/46		44,541
446		2007-0A1 A1B	2.798	††	02/25/47		272,202
392		2007-0A1 CA1B	2.798	††	12/25/46		235,961
14,393		2007-OA2 1XPP (IO)	0.255		03/25/47		213,318
557		2007-OA6 CA1B	2.828	††	07/25/47		346,967
		Total Private Issues (Cost $11,273,338)					7,749,127
		Total Collateralized Mortgage Obligations (Cost $12,680,099)					9,280,421
PRINCIPAL
AMOUNT IN
THOUSANDS
		Short-term Investments (18.7%)
		U.S. Government Obligation (b) (0.0%)
$	160	U.S. Treasury Bills*** (Cost $159,874)					159,874
NUMBER OF
SHARES (000)
		Investment Company (c) (17.7%)
48,162		Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class (Cost $48,162,449)					48,162,449
		Security Purchased from Securities Lending Collateral (d) (1.0%)
		Repurchase Agreement
2,724		Lehman Brothers, Inc. 1.25% due 04/01/08 (dated 03/31/08; proceeds $2,724,095)(Cost $2,724,000)					2,724,000
		Total Short-term Investments (Cost $51,046,323)					51,046,323
		Total Investments (Cost $238,691,091) (e) (f)			101.7	%	277,144,566
		Liabialities in Excess of Other Assets			(1.7	)	(4,568,397		)
		Net Assets			100.0	%	$	272,576,169

ADR	American Depositary Receipt.
ARM	Adjustable Rate Mortgage.
IO	Interest Only Security.
MTN	Medium-Term Note.
PC	Participation Certificate.
*	Non-income producing security.
**	Resale is restricted to qualified institutional investors.
***	A portion of this security has been physically segregated in connection with open future contracts in the amount of $61,515.
††	Variable rate security. Rate shown is the rate in effect at March 31, 2008.
#	Foreign issued with perpetual maturity.
# #	Security issued with perpetual maturity.
(a)	All or a portion of this security was on loan as of March 31, 2008. The total value of the loaned securities and related collateral outstanding were $2,592,506 and $2,724,000, respectively.
(b)	Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.
(c)	The fund invests in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class, an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Money Market Portfolio - Institutional Class.
(d)	Collateralized by federal agency and U.S.Treasury obligations.
(e)	Securities have been designated as collateral in amount equal to $28,190,537 in connection with open futures contracts and open swap contracts.
(f)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments

FAS 157

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

Level 1 – quoted prices in active markets for identical investments

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund’s investments carried at value:

			Fair Value Measurements at March 31, 2008 Using
			Quoted Prices In			Significant		Significant
			Active Market for			Other Observable		Unobservable
			Identical Assets			Inputs		Inputs
	Total		(Level 1)			(Level 2)		(Level 3)
Investments in Securities	$	277,144,566	$	223,881,181		$	53,263,385	—
Other Financial Instruments*	1,855,534		(151,673		)	$	2,007,207	—
Total	$	279,000,100	$	223,729,508		$	55,270,592	$	0

* Other financial instruments include futures, forwards, and swap contracts.

Valuation of Investments — (1) an equity portfolio security listed or traded on the New York Stock Exchange (“NYSE”) or American Stock Exchange or other exchange is valued at its latest sale price prior to the time when assets are valued; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (2) an equity portfolio security listed or traded on the Nasdaq is valued at the Nasdaq Official Closing Price; if there were no sales that day, the security is valued at the mean between the last reported bid and asked price; (3) all other portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) for equity securities traded on foreign exchanges, the last reported sale price or the latest bid price may be used if there were no sales on a particular day; (5)credit default/interest rate swaps are marked-to-market daily based upon quotations from market makers; (6) futures are valued at the latest price published by the commodities exchange on which they trade; (7) when market quotations are not readily available including circumstances under which Morgan Stanley Investment Advisors Inc. (the “Investment Adviser”) determines that the latest sale price, the bid price or the mean between the last reported bid and asked price do not reflect a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.  Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Fund’s Trustees or by the Investment Adviser using a pricing service and/or procedures approved by the Trustees of the Fund; (8) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees (where fair value is estimated using recently executed transactions, market price quotations (where observable) and pricing models that may factor in, where appropriate, interest rates, bond or credit default swap spreads and volatility); (9) investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (10) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.

Futures Contracts Open at March 31, 2008

						UNREALIZED
NUMBER OF		DESCRIPTION, DELIVERY	UNDERLYING FACE			APPRECIATION
CONTRACTS	LONG/SHORT	MONTH AND YEAR	AMOUNT AT VALUE			(DEPRECIATION)
94	Long	U.S. Treasury Note 5 Year,
		June 2008	$	10,738,032		$	140,387
17	Long	U.S. Treasury Note 2 Year,
		June 2008	3,649,156			16,248
10	Long	Swap Future 10 Year
		June 2008	1,151,406			22,907
3	Long	90 Day Euro$
		June 2009	732,225			15,278
1	Long	90 Day Euro$
		December 2008	244,600			6,741
1	Long	90 Day Euro$
		March 2009	244,538			6,792
1	Short	90 Day Euro$
		June 2010	(241,813		)	(3,865		)
2	Short	90 Day Euro$
		March 2010	(484,725		)	(8,481		)
2	Short	90 Day Euro$
		December 2009	(485,725		)	(9,138		)
2	Short	90 Day Euro$
		September 2009	(487,125		)	(10,059		)
16	Short	U.S.Treasury Bonds 20 Year,
		June 2008	(1,900,750		)	(51,657		)
83	Short	U.S.Treasury Notes 10 Year,
		June 2008	(9,873,110		)	(276,826		)
	Net Unrealized Depreciation					$	(151,673	)

Interest Rate Swap Contracts Open at March 31, 2008:

	NOTIONAL		PAYMENTS	PAYMENTS
	AMOUNT		RECEIVED	MADE	TERMINATION	UNREALIZED
COUNTERPARTY	(000’S)		BY FUND	BY FUND +	DATE	APPRECIATION
Bank of America, N.A.	$	1,850	Fixed Rate 5.592%	Floating Rate 0.00%	February 19, 2018	$	39,405
Bank of America, N.A.	3,750		Fixed Rate 5.37	Floating Rate 3.08	February 12, 2018	49,275
Bank of America, N.A.	4,825		Floating Rate 3.08	Fixed Rate 5.815	February 12, 2023	(48,395		)
Bank of America, N.A.	2,390		Floating Rate 0.00	Fixed Rate 6.03	February 19, 2023	(38,718		)
Citibank N.A. New York	3,250		Fixed Rate 5.337	Floating Rate 5.03	May 24, 2017	339,788
Citibank N.A. New York	1,900		Fixed Rate 5.448	Floating Rate 5.36	August 9, 2017	215,269
Citibank N.A. New York	2,900		Fixed Rate 5.238	Floating Rate 4.857	September 27, 2017	281,647
Citigroup, Inc.	650		Fixed Rate 4.647	Floating Rate 3.089	February 27, 2018	30,433
Deutsche Bank AG, New York	1,950		Fixed Rate 5.388	Floating Rate 5.03	May 25, 2017	211,634
Goldman Sachs Group, Inc.	1,875		Fixed Rate 5.565	Floating Rate 0.00	February 27, 2018	37,669
Goldman Sachs Group, Inc.	3,775		Fixed Rate 5.63	Floating Rate 0.00	February 28, 2018	84,938
Goldman Sachs Group, Inc.	4,840		Floating Rate 0.00	Fixed Rate 6.035	February 28, 2023	(78,988		)
Goldman Sachs Group, Inc.	2,405		Floating Rate 0.00	Fixed Rate 5.96	February 27, 2023	(34,079		)
JPMorgan Chase N.A. New York	3,550		Fixed Rate 5.34	Floating Rate 5.03	May 24, 2017	371,827
JPMorgan Chase N.A. New York	2,450		Fixed Rate 5.448	Floating Rate 5.061	May 29, 2017	277,169
JPMorgan Chase N.A. New York	2,150		Fixed Rate 5.088	Floating Rate 2.938	September 11, 2017	181,847
			Net Unrealized Appreciation			$	1,920,721

+ Floating rate represents USD-3 months LIBOR

Credit Default Swap Contracts Open at March 31, 2008

		NOTIONAL				UNREALIZED
SWAP COUNTERPARTY &	BUY/SELL	AMOUNT		INTEREST	TERMINATION	APPRECIATION
REFERENCE OBLIGATION	PROTECTION	(000’s)		RATE	DATE	(DEPRECIATION)
Lehman Brothers, Inc.
DJ CDX, N.A.	Sell	$	255	0.60	December 20, 2012	$	(4,721	)
Lehman Brothers, Inc.
DJ CDX, N.A.	Sell	125		0.60	December 20, 2012	(1,967		)
Goldman Sachs International
DJ CDX, N.A.	Sell	125		0.60	December 20, 2012	(1,148		)
J.P. Morgan Chase
DJ CDX, N.A.	Sell	455		0.60	December 20, 2012	(1,470		)
Goldman Sachs International
DJ CDX, N.A.	Sell	230		0.80	December 20, 2017	(962		)
Credit Suisse
Arrow Electronics	Buy	150		1.00	March 20, 2015	789
Goldman Sachs International
Avalonbay Communities	Buy	110		3.05	March 20, 2013	(845		)
Bank of America, N.A.
Carnival Corp.	Buy	65		1.57	March 20, 2018	(889		)
Merril Lynch, Inc.
Carnival Corp.	Buy	55		1.57	March 20, 2018	(752		)
Merril Lynch, Inc.
Carnival Corp.	Buy	70		1.50	March 20, 2018	(589		)
Merril Lynch, Inc.
Carnival Corp.	Buy	60		1.60	March 20, 2018	(774		)
Goldman Sachs International
Chubb Corp.	Buy	350		0.10	March 20, 2012	6,341
Goldman Sachs International

Coca-Cola Enterprises, Inc.	Buy	220	0.587	March 20, 2013	(446	)
Citibank, NA, New York
Covidien Ltd.	Buy	140	0.43	March 20, 2012	17
Citibank, NA, New York
Covidien Ltd.	Buy	67	0.43	March 20, 2012	8
Goldman Sachs International
Dell Inc.	Buy	180	0.22	March 20, 2012	3,231
Citigroup, Inc.
Eaton Corp.	Buy	105	0.62	March 20, 2013	795
Citigroup, Inc.
Eaton Corp.	Buy	90	0.72	March 20, 2013	271
Citigroup, Inc.
Eaton Corp.	Buy	60	0.82	March 20, 2018	509
Goldman Sachs International
Eaton Corp.	Buy	60	0.97	March 20, 2018	(208	)
J.P. Morgan Chase
Eaton Corp.	Buy	40	0.60	March 20, 2013	339
Merril Lynch, Inc.
Eaton Corp.	Buy	80	0.92	March 20, 2018	41
Goldman Sachs International
Eli Lilly	Buy	45	0.33	March 20, 2013	218
UBS Securities
Eli Lilly	Buy	180	0.30	March 20, 2013	1,122
Bank of America, N.A.
Goodrich (B.F.) Co.	Buy	50	0.82	March 20, 2018	(891	)
Goldman Sachs International
Goodrich (B.F.) Co.	Buy	75	0.70	March 20, 2013	(703	)
Goldman Sachs International
Goodrich (B.F.) Co.	Buy	90	0.47	March 20, 2018	963
Lehman Brothers, Inc.
Goodrich (B.F.) Co.	Buy	60	0.46	March 20, 2018	691
Lehman Brothers, Inc.
Goodrich (B.F.) Co.	Buy	85	0.45	March 20, 2018	1,048
Goldman Sachs International
Hartford Life Inc.	Buy	350	0.00	December 20, 2011	15,312
UBS Securities
Martin Marietta Materials	Buy	55	1.78	March 20, 2013	740

UBS Securities
Martin Marietta Materials	Buy	55	1.73	March 20, 2018	1,200
Goldman Sachs International
Motorola, Inc.	Buy	120	0.15	December 20, 2011	11,143
Goldman Sachs International
Motorola, Inc.	Buy	240	0.157	December 20, 2011	22,230
J.P. Morgan Chase
Nordstrom, Inc.	Buy	85	1.03	March 20, 2018	2,011
J.P. Morgan Chase
Nordstrom, Inc.	Buy	75	1.07	March 20, 2018	1,542
J.P. Morgan Chase
Nordstrom, Inc.	Buy	75	1.15	March 20, 2018	1,079
J.P. Morgan Chase
Pepsi Bottling Group, Inc.	Buy	80	0.63	March 20, 2013	(425	)
J.P. Morgan Chase
Pepsi Bottling Group, Inc.	Buy	55	0.58	March 20, 2013	(166	)
Goldman Sachs International
Prologis	Buy	65	3.33	March 20, 2013	677
Bank of America, N.A.
Sealed Air Corp.	Buy	90	1.12	March 20, 2018	3,044
Bank of America, N.A.
Sealed Air Corp.	Buy	50	1.08	March 20, 2018	1,842
Goldman Sachs International
Sealed Air Corp.	Buy	30	1.24	March 20, 2018	742
Goldman Sachs International
Sealed Air Corp.	Buy	60	1.08	March 20, 2018	2,211
Bank of America, N.A.
Textron Financial Corp.	Buy	70	0.80	March 20, 2018	4,240
Goldman Sachs International
Textron Financial Corp.	Buy	110	1.05	March 20, 2013	2,502
UBS Securities
Textron Financial Corp.	Buy	120	1.06	March 20, 2013	(353	)
UBS Securities
Textron Financial Corp.	Buy	50	1.01	March 20, 2013	1,256
UBS Securities
Textron Financial Corp.	Buy	80	1.00	March 20, 2013	2,010
Citibank, NA, New York

Tyco Electronics Ltd.	Buy	140	0.43	March 20, 2012	4,233
Citibank, NA, New York
Tyco Electronics Ltd.	Buy	67	0.43	March 20, 2012	2,016
Citibank, NA, New York
Tyco international Ltd	Buy	140	0.43	March 20, 2012	4,251
Citibank, NA, New York
Tyco International Ltd	Buy	67	0.43	March 20, 2012	2,016
Goldman Sachs International
Union Pacific Corp.	Buy	175	0.20	December 20, 2011	1,993
Bank of America, N.A.
Yum Brands, Inc.	Buy	135	1.18	March 20, 2013	(858		)
		Net Unrealized Appreciation			$	86,486

Item 2.  Controls and Procedures.

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b)  There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 3.  Exhibits.

(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Variable Investment Series

/s/ Ronald E. Robison

Ronald E. Robison

Principal Executive Officer

May 20, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ Ronald E. Robison

Ronald E. Robison

Principal Executive Officer

May 20, 2008

/s/ Francis Smith

Francis Smith

Principal Financial Officer

May 20, 2008