N-Q 1 a10-10767_2nq.htm N-Q

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)

Randy Takian 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)

Registrant’s telephone number, including area code:		212-296-6963

Date of fiscal year end:	December 31, 2010

Date of reporting period:	March 31, 2010

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, 2010 (unaudited)

PRINCIPAL AMOUNT IN THOUSANDS			ANNUALIZED YIELD ON DATE OF PURCHASE	MATURITY DATE			VALUE
		Repurchase Agreements (43.0%)
$	25,000	Banc of America Securities (dated 03/31/10; proceeds $25,000,007; fully collateralized by Federal National Mortgage Assoc. 0.00% due 05/15/19, Federal Home Loan Bank 4.625% due 02/18/11, Federal Home Loan Mortgage Corp. 0.00% - 5.75% due 08/24/10 - 07/15/24, Tennessee Valley Authority 0.00% - 7.125% due 05/01/10 - 09/15/39; valued at $25,629,884)	0.01%	04/01/10			$	25,000,000
14,846		Barclays Capital LLC (dated 03/31/10; proceeds $14,846,004; fully collateralized by Government National Mortgage Assoc. 5.50% due 12/15/39; valued at $15,291,381)	0.01	04/01/10			14,846,000
25,000		BNP Paribas Securities (dated 03/31/10; proceeds $25,000,007; fully collateralized by Federal National Mortgage Assoc. 2.58% - 5.97% due 10/01/31 - 03/01/38, Federal National Mortgage Corp. 4.97% - 6.04% due 12/01/33 - 03/01/37; valued at $25,750,000)	0.01	04/01/10			25,000,000
		Total Repurchase Agreements (Cost $64,846,000)					64,846,000

		Commercial Paper (29.8%)
		International Banks
7,000		Abbey National N.A. LLC	0.16	04/06/10			6,999,844
3,000		Atlantis One Funding (a)	0.20	04/01/10			3,000,000
4,000		Barclays Bank PLC - NY	0.15	04/01/10			4,000,000
5,000		BNP Paribas	0.22	04/23/10			4,999,328
4,500		BPCE SA (a)	0.52-0.59	09/13/10- 10/04/10			4,488,037
5,000		Credit Agricole CIB N.A.	0.17	04/01/10			5,000,000
7,000		Intesa Funding LLC	0.19-0.23	04/01/10- 04/23/10			6,999,578
6,500		Lloyds TSB Bank PLC	0.55	04/15/10			6,498,610
3,000		Nordea Bank AB	0.19	04/28/10			2,999,573
		Total Commercial Paper (Cost $44,984,970)					44,984,970

		Certificates of Deposit (15.9%)
		International Banks
6,000		Credit Industriel et Commercial	0.32	07/01/10			6,000,000
7,000		Royal Bank of Scotland PLC	0.21	04/15/10			7,000,000
6,000		Skandinaviska Enskilda Banken AB	0.29	04/30/10			6,000,000
5,000		UniCredit SpA	0.24	04/22/10			5,000,000
		Total Certificates of Deposit (Cost $24,000,000)					24,000,000

		Floating Rate Notes (11.3%)
		International Banks (5.3%)
3,000		Barclays Bank PLC - NY	0.36(b)	04/15/10(c)			3,000,000
5,000		Societe Generale N.Y., Inc.	0.55(b)	05/05/10(c)			5,000,000
							8,000,000
		U.S. Government Agency (6.0%)
9,000		Federal Home Loan Bank	0.06(b)	05/08/10(c)			8,997,666
		Total Floating Rate Notes (Cost $16,997,666)					16,997,666

		Total Investments *(Cost $150,828,636) (d)*			100.0	%	150,828,636
		Liabilities in Excess of Other Assets			0.0		(43,648		)
		Net Assets			100.0	%	$	150,784,988

(a)	Resale is restricted to qualified institutional investors.
(b)	Rate shown is the rate in effect at March 31, 2010.
(c)	Date of next interest rate reset.
(d)	Cost is the same for federal income tax purposes.

Notes to the Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

Financial Accounting Standards Board Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures (ASC 820) (formerly known as FAS 157), defines fair value 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. ASC 820 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 — unadjusted 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. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL		UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)	OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Short-Term Investments
Repurchase Agreements	$	64,846,000	—	$	64,846,000	—
Commercial Paper	44,984,970		—	44,984,970		—
Certificates of Deposit	24,000,000		—	24,000,000		—
Floating Rate Notes - Corporate	8,000,000		—	8,000,000		—
Floating Rate Notes - U.S. Government Agency	8,997,666		—	8,997,666		—
Total	$	150,828,636	—	$	150,828,636	—

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, 2010 (unaudited)

PRINCIPAL AMOUNT IN THOUSANDS			COUPON RATE	MATURITY DATE	VALUE
		Corporate Bonds (49.0%)
		Aerospace/Defense (0.5%)
$	400	BAE Systems Holdings, Inc. (144A) (a)	4.75%	08/15/10	$	405,456

		Agricultural Operations (0.4%)
260		Bunge Ltd. Finance Corp.	5.35	04/15/14	271,633

		Auto - Cars/Light Trucks (0.5%)
360		Daimler Finance North America LLC	7.30	01/15/12	392,166

		Auto - Medium & Heavy Duty Trucks (0.1%)
100		PACCAR, Inc.	6.375	02/15/12	108,630

		Brewery (0.5%)
170		Anheuser-Busch InBev Worldwide, Inc. (144A) (a)	2.50	03/26/13	170,450
205		Anheuser-Busch InBev Worldwide, Inc. (144A) (a)	5.375	11/15/14	222,264
					392,714
		Building Societies (0.4%)
270		Nationwide Building Society (144A) (United Kingdom) (a)	4.65	02/25/15	269,579

		Cable/Satellite TV (1.1%)
335		Comcast Cable Holdings LLC	9.80	02/01/12	380,201
220		DirecTV Holdings LLC / Financing Co., Inc. (144A) (a)	4.75	10/01/14	230,387
200		Time Warner Cable, Inc.	8.25	02/14/14	234,880
					845,468
		Commercial Banks (0.5%)
340		Credit Suisse (Switzerland)	5.50	05/01/14	370,406

		Commercial Banks - Non-U.S. (10.5%)
315		Barclays Bank PLC (United Kingdom)	2.50	01/23/13	315,588
900		Commonwealth Bank of Australia (144A) (Australia) (a)	2.50	12/10/12	916,558
575		Commonwealth Bank of Australia (144A) (Australia) (a)	2.75	10/15/12	583,873
250		National Australia Bank Ltd. (144A) (Australia) (a)	5.35	06/12/13	269,640
365		Nordea Bank AB (144A) (Sweden) (a)	2.50	11/13/12	368,685
2,300		Royal Bank of Scotland PLC (The) (144A) (United Kingdom) (a)	2.625	05/11/12	2,349,418
380		Royal Bank of Scotland PLC (The) (United Kingdom)	4.875	03/16/15	380,320
320		Svenska Handelsbanken AB (144A) (Sweden) (a)	2.875	09/14/12	326,254
1,545		Swedbank AB (144A) (Sweden) (a)	2.90	01/14/13	1,583,560
810		Westpac Securities NZ Ltd. (144A) (New Zealand) (a)	2.50	05/25/12	827,067
					7,920,963
		Commercial Banks - Southern U.S. (0.5%)
385		BB&T Corp.	3.10	07/28/11	392,968

		Data Processing Services (0.5%)
370		Fiserv, Inc.	6.125	11/20/12	402,937

		Diversified Financial Services (4.0%)
580		Citigroup, Inc. (b)	6.50	08/19/13	625,722
700		General Electric Capital Corp. (Series A)	5.45	01/15/13	758,004
265		General Electric Capital Corp.	5.90	05/13/14	291,833
405		Goldman Sachs Group, Inc. (The)	5.25	10/15/13	435,696
325		Goldman Sachs Group, Inc. (The)	6.875	01/15/11	340,302
515		JPMorgan Chase & Co.	5.375	10/01/12	557,616
					3,009,173
		Diversified Minerals (0.6%)
235		BHP Billiton Finance USA Ltd. (Australia)	8.50	12/01/12	274,603

$	190	Rio Tinto Finance USA Ltd. (Australia)	5.875%	07/15/13	$	209,004
					483,607
		Electric - Distribution (0.5%)
355		Detroit Edison Co. (The)	6.125	10/01/10	364,264

		Electric - Integrated (2.4%)
205		Columbus Southern Power Co. (Series E)	4.40	12/01/10	208,306
380		Dominion Resources, Inc.	5.70	09/17/12	411,997
350		Enel Finance International SA (144A) (a)	3.875	10/07/14	354,913
215		Firstenergy Solutions Corp.	4.80	02/15/15	220,273
405		Ohio Power Co.	0.431(c)	04/05/10	405,000
215		PPL Energy Supply LLC	6.30	07/15/13	235,877
					1,836,366
		Electronic Connectors (0.2%)
140		Amphenol Corp.	4.75	11/15/14	144,165

		Electronic Measuring Instrument (0.5%)
385		Agilent Technologies, Inc.	4.45	09/14/12	403,699

		Finance - Auto Loans (0.6%)
395		American Honda Finance Corp. (MTN) (144A) (a)	2.752(c)	06/02/11	403,113
30		Nissan Motor Acceptance Corp. (144A) (a)	3.25	01/30/13	30,319
					433,432
		Finance - Consumer Loans (1.0%)
695		HSBC Finance Corp.	6.75	05/15/11	730,716

		Finance - Credit Card (1.8%)
475		American Express Co.	7.25	05/20/14	538,787
750		MBNA Corp.	6.125	03/01/13	805,973
					1,344,760
		Finance - Investment Banker/Broker (1.1%)
200		Credit Suisse USA, Inc.	6.125	11/15/11	214,943
260		Merrill Lynch & Co., Inc.	5.45	02/05/13	275,263
365		TD Ameritrade Holding Corp.	2.95	12/01/12	368,525
					858,731
		Food - Miscellaneous/Diversified (0.8%)
215		ConAgra Foods, Inc.	5.875	04/15/14	236,258
345		Kraft Foods, Inc.	6.75	02/19/14	388,279
					624,537
		Food - Retail (0.3%)
225		Kroger Co. (The)	7.50	01/15/14	260,023

		Life/Health Insurance (1.4%)
350		Monumental Global Funding III (144A) (a)	5.25	01/15/14	372,522
325		Principal Life Income Funding Trusts (MTN)	5.15	06/17/11	336,792
315		Prudential Financial, Inc. (MTN)	3.625	09/17/12	324,148
					1,033,462
		Media (0.4%)
250		Time Warner, Inc.	6.875	05/01/12	275,123

		Medical - Biomedical/Genetics (0.7%)
325		Biogen Idec, Inc.	6.00	03/01/13	351,731
180		Genentech, Inc.	4.40	07/15/10	182,035
					533,766
		Medical - HMO (0.2%)
185		UnitedHealth Group, Inc.	5.25	03/15/11	192,149

		Money Center Banks (0.7%)
500		Lloyds TSB Bank PLC (144A) (United Kingdom) (a)	2.80	04/02/12	510,227

		Mortgage Banks (0.8%)
$	575	Abbey National Treasury Services PLC (144A) (United Kingdom) (a)	3.875%	11/10/14	$	572,351

		Multi-line Insurance (0.7%)
515		MetLife Global Funding I (144A) (a)(d)	5.75	07/25/11	536,669

		Office Automation & Equipment (0.3%)
210		Xerox Corp.	8.25	05/15/14	244,052

		Oil Companies - Exploration & Production (1.0%)
335		Devon Financing Corp. ULC (Canada)	6.875	09/30/11	361,598
350		EOG Co. of Canada (144A) (Canada) (a)	7.00	12/01/11	382,272
					743,870
		Pharmacy Services (0.5%)
350		Medco Health Solutions, Inc.	7.25	08/15/13	396,024

		Pipelines (1.5%)
180		Enterprise Products Operating LLC (Series B)	7.50	02/01/11	188,451
225		Enterprise Products Operating LLC (Series O)	9.75	01/31/14	273,440
320		Plains All American Pipeline LP / PAA Finance Corp.	4.25	09/01/12	332,650
305		Spectra Energy Capital LLC (e)	5.90	09/15/13	333,257
					1,127,798
		REIT - Regional Malls (0.2%)
110		Simon Property Group LP	6.75	05/15/14	120,456

		Retail - Drug Store (0.2%)
180		CVS Caremark Corp.	5.75	08/15/11	190,350

		Retail - Restaurants (0.3%)
185		Yum! Brands, Inc.	8.875	04/15/11	198,459

		Special Purpose Banks (2.9%)
1,530		Kreditanstalt fuer Wiederaufbau (Series G) (Germany)	2.25	04/16/12	1,562,116
577		Societe Financement de l’Economie Francaise (144A) (France) (a)	3.375	05/05/14	599,225
					2,161,341
		Special Purpose Entity (0.7%)
250		Harley-Davidson Funding Corp. (144A) (a)	5.25	12/15/12	261,041
260		Xlliac Global Funding (144A) (a)	4.80	08/10/10	262,614
					523,655
		Steel - Producers (0.3%)
190		ArcelorMittal (Luxembourg)	9.00	02/15/15	227,151

		Super-Regional Banks - U.S. (2.4%)
405		Bank One Corp.	5.25	01/30/13	435,546
370		Capital One Financial Corp. (MTN)	5.70	09/15/11	386,839
195		U.S. Bancorp	4.20	05/15/14	204,785
750		Wells Fargo & Co. (Series I)	3.75	10/01/14	759,864
					1,787,034
		Telecommunication Services (1.0%)
150		Verizon Global Funding Corp.	7.25	12/01/10	156,537
500		Verizon Global Funding Corp.	7.375	09/01/12	566,529
					723,066
		Telephone - Integrated (2.7%)
350		AT&T, Inc.	4.95	01/15/13	376,212
395		BellSouth Corp.	6.00	10/15/11	422,948
175		British Telecommunications PLC (United Kingdom)	9.125(c)	12/15/10	184,836
300		Deutsche Telekom International Finance BV (Netherlands)	8.50	06/15/10	304,451
505		Telecom Italia Capital SA (Luxembourg)	4.875	10/01/10	513,875

$	220	Telefonica Europe BV (Netherlands)	7.75%	09/15/10	$	226,675
					2,028,997
		Tobacco (0.5%)
350		Altria Group, Inc.	7.75	02/06/14	400,641

		Transport - Rail (0.3%)
230		Union Pacific Corp.	6.50	04/15/12	251,242
		Total Corporate Bonds (Cost $36,490,421)			37,044,276

		Foreign Government Obligation (2.1%)
1,508		Denmark Government International Bond (Series E) (Denmark) (Cost $1,548,014)	2.75	11/15/11	1,555,478

		U.S. Government Agencies & Obligations (24.8%)
		Commercial Banks - Central U.S. - FDIC Guaranteed (3.6%)
2,600		KeyBank NA	3.20	06/15/12	2,701,608

		Diversified Financial Services - FDIC Guaranteed (6.3%)
500		Bank of America Corp.	2.10	04/30/12	509,465
1,960		Citigroup, Inc. (b)	2.125	04/30/12	1,996,889
700		Goldman Sachs Group, Inc. (The)	3.25	06/15/12	730,274
1,500		JPMorgan Chase & Co.	3.125	12/01/11	1,552,760
					4,789,388
		Super-Regional Banks - U.S. - FDIC Guaranteed (5.0%)
3,710		PNC Funding Corp.	2.30	06/22/12	3,796,217

		U.S. Government Agency (0.9%)
700		FDIC Structured Sale Guaranteed Notes Ser. A-1 (144A) (a)	0.00	10/25/11	688,132

		U.S. Government Obligations (9.0%)
2,296		U.S. Treasury Bonds	6.00	02/15/26	2,708,564
		U.S. Treasury Notes
1,000			0.75	11/30/11	998,946
2,300			3.25	12/31/16	2,303,774
750			3.25	03/31/17	749,297
					6,760,581
		Total U.S. Government Agencies & Obligations (Cost $18,647,045)			18,735,926

		U.S. Government Agencies - Mortgage-Backed Securities (2.0%)
		Federal Home Loan Mortgage Corp. (ARM) (0.5%)
150			5.528	01/01/38	158,046
166			6.035	02/01/37	176,115
					334,161
		Federal National Mortgage Assoc. (0.9%)
478			6.50	01/01/32–11/01/33	527,070
162			7.00	08/01/29–06/01/32	181,352
					708,422
		Federal National Mortgage Assoc. (ARM) (0.6%)
329			5.738	12/01/36	345,682
133			5.777	03/01/38	139,131
					484,813
		Total U.S. Government Agencies - Mortgage-Backed Securities (Cost $1,491,135)			1,527,396

		Asset-Backed Securities (16.7%)
425		Ally Auto Receivables Trust	1.45	05/15/14	424,958
675		American Express Credit Account Master Trust 2009-2 A	1.48(c)	03/15/17	701,725
276		ARI Fleet Lease Trust 2010-A A (144A) (a)	1.68(c)	08/15/18	276,352
1,023		Bank of America Auto Trust 2009-1A A2 (144A) (a)	1.70	12/15/11	1,027,230

$	18	Capital Auto Receivables Asset Trust 2008-2 A2B	1.15%(c)	03/15/11	$	17,836
88		Capital Auto Receivables Asset Trust 2007-3 A3A	5.02	09/15/11	89,365
807		Capital One Multi-Asset Execution Trust 2005-A10 A	0.31(c)	09/15/15	799,161
275		Chesapeake Funding LLC 2009-1 A (144A) (a)	2.23(c)	12/15/20	276,659
325		Chrysler Financial Auto Securitization Trust 2009-A A2	1.85	06/15/11	326,630
600		Citibank Credit Card Issuance Trust 2009-A5 A5 (b)	2.25	12/23/14	603,897
700		CNH Equipment Trust 2010-A A3	1.54	07/15/14	699,896
850		Discover Card Master Trust 2009-A1 A1	1.53(c)	12/15/14	858,951
700		Ford Credit Auto Owner Trust 2009-E A3	1.51	01/15/14	703,265
775		Ford Credit Floorplan Master Owner Trust 2009-2 A	1.78(c)	09/15/14	777,410
1,150		GE Capital Credit Card Master Note Trust 2009-1 A	2.33(c)	04/15/15	1,177,485
440		Harley-Davidson Motorcycle Trust 2009-4 A3	1.87	02/15/14	444,155
350		Honda Auto Receivables Owner Trust 2009-3 A2	1.50	08/15/11	351,326
750		Huntington Auto Trust 2009-1A A3 (144A) (a)	3.94	06/17/13	770,809
425		MMAF Equipment Finance LLC 2009-AA A3 (144A) (a)	2.37	11/15/13	426,098
525		MMCA Automobile Trust 2010-A A3 (144A) (a)	1.39	01/15/14	525,000
775		Nissan Auto Lease Trust 2009-B A3	2.07	01/15/15	785,883
200		Nissan Master Owner Trust Receivables 2010-AA A (144A) (a)	1.38(c)	01/15/15	200,708
371		Wheels SPV LLC 2009-1 A (144A) (a)	1.78(c)	03/15/18	371,762
		Total Asset-Backed Securities (Cost $12,536,093)			12,636,561

		Collateralized Mortgage Obligation (0.6%)
		U.S. Government Agency
		Federal Home Loan Mortgage Corp. (Cost $425,809)			452,251

		Commercial Mortgage-Backed Securities (0.9%)
		Private Issues
220		Bear Stearns Commercial Mortgage Securities 2004-T14 A4	5.20(c)	01/12/41	230,672
230		LB-UBS Commercial Mortgage Trust 2004-C2 A4	4.367	03/15/36	231,717
190		Wachovia Bank Commercial Mortgage Trust 2004-C12 A4	5.239(c)	07/15/41	195,521
		Total Commercial Mortgage-Backed Securities (Cost $653,835)			657,910

		Short-Term Investments (3.3%)
		U.S. Government Obligation (f) (1.2%)
905		U.S. Treasury Bill (Cost $904,867)	0.152	05/06/10	904,867

NUMBER OF SHARES (000)
	Investment Company (g) (2.1%)
1,590	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $1,589,746)			1,589,746

	Total Short-Term Investments (Cost $2,494,613)			2,494,613
	Total Investments (Cost $74,286,965) (h)(i)	99.4	%	75,104,411
	Other Assets in Excess of Liabilities	0.6		448,060
	Net Assets	100.0	%	$	75,552,471

ARM		Adjustable Rate Mortgage. Interest rate in effect as of March 31, 2010.
FDIC		Federal Deposit Insurance Corporation.
MTN		Medium Term Note.
(a)		Resale is restricted to qualified institutional investors.

(b)		For the three months ended March 31, 2010, the cost of purchases and the proceeds from sales of Citigroup, Inc., an affiliate of the Investment Adviser, Administrator and Distributor, was $625,031 and $621,420, respectively, including net realized gain of $26,715.
(c)		Floating rate security. Rate shown is the rate in effect at March 31, 2010.
(d)		For the three months ended March 31, 2010, there were no transactions in MetLife Global Funding I, an affiliate of the Fund.
(e)		Security purchased on a when-issued basis.
(f)		A portion of this security has been physically segregated in connection with open futures contracts and open swap contracts.
(g)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(h)		Securities have been designated as collateral in connection with securities purchased on a when issued basis, open futures and swap contracts.
(i)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Futures Contracts Open at March 31, 2010:

NUMBER OF CONTRACTS	LONG/ SHORT	DESCRIPTION, DELIVERY MONTH AND YEAR	UNDERLYING FACE AMOUNT AT VALUE			UNREALIZED APPRECIATION (DEPRECIATION)
134	Long	U.S. Treasury Notes 5 Year, June 2010	$	15,389,063		$	(74,429	)
16	Long	U.S. Treasury Notes 10 Year, June 2010	1,860,000			(8,096		)
203	Short	U.S. Treasury Notes 2 Year, June 2010	(44,041,483		)	56,196
		Net Unrealized Depreciation				$	(26,329	)

Interest Rate Swap Contracts Open at March 31, 2010:

Swap Counterparty	Floating Rate Index		Pay/Receive Floating Rate	Fixed Rate	Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Bank of America, N.A.	3 Month LIBOR		Receive	2.625	03/11/15	$	8,020	$	26,145
Credit Suisse Group	3 Month LIBOR		Receive	4.386	12/23/39	577		11,528
Credit Suisse Group***	3 Month LIBOR		Pay	5.086	12/23/19	2,400		(3,672		)
Deutsche Bank AG***	3 Month LIBOR		Pay	4.40	10/01/16	7,913		(40,910		)
Deutsche Bank AG***	3 Month LIBOR		Receive	4.41	10/03/18	4,258		50,457
Deutsche Bank AG	3 Month LIBOR		Receive	2.654	03/26/15	4,030		10,760
Deutsche Bank AG	3 Month LIBOR		Receive	2.898	01/11/15	1,790		(21,265		)
UBS AG	3 Month LIBOR		Receive	2.841	01/08/15	260		(2,470		)
		Net Unrealized Appreciation						$	30,573

Zero Coupon Swap Contracts Open at March 31, 2010:

Swap Counterparty	Notional Amount (000)	Floating Rate Index	Pay/Receive Floating Rate	Termination Date	Unrealized Appreciation (Depreciation)
Barclays Bank^	1,590	3 Month LIBOR	Receive	11/15/19	$	(101,363	)
Barclays Bank^^	1,590	3 Month LIBOR	Pay	11/15/19	(65,692		)
Deutsche Bank AG^^	1,100	3 Month LIBOR	Pay	11/15/21	(57,782		)
Deutsche Bank AG^	1,100	3 Month LIBOR	Receive	11/15/21	(41,095		)
JPMorgan Chase Bank N.A. New York^	705	3 Month LIBOR	Receive	11/15/19	(39,290		)
JPMorgan Chase Bank N.A. New York^	1,190	3 Month LIBOR	Receive	11/15/20	(75,191		)
JPMorgan Chase Bank N.A. New York^	2,260	3 Month LIBOR	Receive	11/15/22	44,912
	Net Unrealized Depreciation				$	(335,501	)

LIBOR — London Interbank Offered Rate

^	Portfolio will make payments of $616,586, $474,412, $267,984, $503,070, and $895,625, respectively on termination date.
^^	Portfolio will receive payments of $436,614 and $367,331, respectively, on termination date.
***	Forward interest rate swap. Periodic payments on specified notional amount with future effective date, unless terminated earlier.

Notes to Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL			UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)			OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)			SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Assets:
Corporate Bonds	$	37,044,276		—			$	37,044,276		—
Foreign Government Obligation	1,555,478			—			1,555,478			—
U.S. Government Agencies & Obligations	18,735,926			—			18,735,926			—
U.S. Government Agencies - Mortgage-Backed Securities	1,527,396			—			1,527,396			—
Asset-Backed Securities	12,636,561			—			12,636,561			—
Collateralized Mortgage Obligation	452,251			—			452,251			—
Commercial Mortgage-Backed Securities	657,910			—			657,910			—
Short-Term Investments
U.S. Government Obligation	904,867			—			904,867			—
Investment Company	1,589,746			$	1,589,746		—			—
Total Short-Term Investments	2,494,613			1,589,746			904,867			—
Futures	56,196			56,196			—			—
Interest Rate Swaps	98,890			—			98,890			—
Zero Coupon Swaps	44,912			—			44,912			—
Total	$	75,304,409		$	1,645,942		$	73,658,467		—

Liabilities:
Futures	$	(82,525	)	$	(82,525	)	—			—
Interest Rate Swaps	(68,317		)	—			$	(68,317	)	—
Zero Coupon Swaps	(380,413		)	—			(380,413		)	—
Total	$	(531,255	)	$	(82,525	)	$	(448,730	)	—

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 ask 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 ask 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 ask 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) credit default/interest rate swaps are marked-to-market daily based upon quotations from market makers; (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 ask 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; (8) 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 (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, which approximates market value.

Morgan Stanley Variable Investment Series - Income Plus Portfolio

Portfolio of Investments · March 31, 2010 (unaudited)

PRINCIPAL AMOUNT IN THOUSANDS			COUPON RATE	MATURITY DATE	VALUE
		Corporate Bonds (94.8%)
		Advertising Agencies (0.2%)
$	490	Omnicom Group, Inc.	6.25%	07/15/19	$	531,750

		Advertising Services (0.6%)
1,195		WPP Finance (United Kingdom)	8.00	09/15/14	1,374,343

		Agricultural Chemicals (1.3%)
895		Agrium, Inc. (Canada)	6.75	01/15/19	993,122
1,500		Mosaic Co. (The) (144A) (a)	7.625	12/01/16	1,646,041
555		Potash Corp. of Saskatchewan, Inc. (Canada)	5.875	12/01/36	546,359
					3,185,522
		Agricultural Operations (0.3%)
580		Bunge Ltd. Finance Corp.	8.50	06/15/19	675,366

		Airlines (0.4%)
1,007		America West Airlines LLC (Series 011G) (AMBAC Insd)	7.10	04/02/21	886,253

		Appliances (0.2%)
450		Whirlpool Corp.	8.60	05/01/14	522,698

		Auto - Cars/Light Trucks (0.2%)
395		Daimler Finance North America LLC	8.50	01/18/31	483,531

		Beverages - Wine/Spirits (0.4%)
610		Bacardi Ltd. (144A) (Bermuda) (a)	8.20	04/01/19	732,361
165		Constellation Brands, Inc.	7.25	09/01/16	170,363
					902,724
		Biotechnology (0.3%)
790		Biogen Idec, Inc.	6.875	03/01/18	867,132

		Brewery (0.8%)
510		Anheuser-Busch InBev Worldwide, Inc. (144A) (a)	5.375	11/15/14	552,950
420		Anheuser-Busch InBev Worldwide, Inc. (144A) (a)	6.875	11/15/19	483,110
85		Anheuser-Busch InBev Worldwide, Inc. (144A) (a)	8.20	01/15/39	109,970
700		FBG Finance Ltd. (144A) (Australia) (a)	5.125	06/15/15	738,731
					1,884,761
		Broadcast Service/Program (0.1%)
280		Grupo Televisa SA (Mexico)	6.00	05/15/18	290,755

		Building - Residential/Commercial (0.7%)
1,675		Toll Brothers Finance Corp.	6.75	11/01/19	1,695,412

		Building Product - Cement/Aggregation (0.8%)
820		CRH America, Inc.	6.00	09/30/16	882,256
480		CRH America, Inc.	8.125	07/15/18	566,127
545		Holcim US Finance Sarl & Cie SCS (144A) (Luxembourg) (a)	6.00	12/30/19	567,022
					2,015,405
		Building Societies (1.1%)
2,655		Nationwide Building Society (144A) (United Kingdom) (a)	6.25	02/25/20	2,712,082

		Cable/Satellite TV (1.0%)
560		COX Communications, Inc. (144A) (a)	8.375	03/01/39	702,579
320		CSC Holdings LLC	7.625	07/15/18	336,000
735		DIRECTV Holdings LLC / Financing Co., Inc. (144A) (a)	5.875	10/01/19	766,295
620		DIRECTV Holdings LLC / Financing Co., Inc.	7.625	05/15/16	695,258
					2,500,132
		Capital Markets (2.7%)
4,870		Goldman Sachs Group, Inc. (The)	6.15	04/01/18	5,160,992
1,565		Goldman Sachs Group, Inc. (The)	6.75	10/01/37	1,567,899
					6,728,891

		Cellular Telephone (0.3%)
$	810	Vodafone Group PLC (United Kingdom)	5.625%	02/27/17	$	868,000

		Commercial Banks - Eastern U.S. (0.9%)
715		Discover Bank/Greenwood	8.70	11/18/19	784,415
760		PNC Bank NA	6.00	12/07/17	807,353
455		PNC Funding Corp.	6.70	06/10/19	509,311
					2,101,079
		Commercial Banks - Non-U.S. (3.6%)
545		Barclays Bank PLC (144A) (United Kingdom) (a)	6.05	12/04/17	562,899
1,495		Barclays Bank PLC (United Kingdom)	6.75	05/22/19	1,656,765
750		Credit Suisse (Switzerland)	5.30	08/13/19	770,498
280		Credit Suisse (Switzerland)	6.00	02/15/18	296,924
290		Credit Suisse AG (Switzerland)	5.40	01/14/20	292,818
1,675		HBOS PLC (144A) (United Kingdom) (a)	6.75	05/21/18	1,541,322
260		Rabobank Nederland N.V. (144A) (Netherlands) (a)	11.00(b)	06/29/49(c)	335,564
925		Royal Bank of Scotland Group PLC (United Kingdom)	6.40	10/21/19	926,402
1,175		Royal Bank of Scotland PLC (The) (United Kingdom)	4.875	03/16/15	1,175,988
1,325		Westpac Banking Corp. (Australia)	4.20	02/27/15	1,365,424
					8,924,604
		Commercial Banks - Southern U.S. (0.3%)
805		Regions Financial Corp.	7.75	11/10/14	847,789

		Commercial Services & Supplies (0.4%)
1,105		Waste Management, Inc.	6.125	11/30/39	1,100,377

		Communications Equipment (0.3%)
650		Cisco Systems, Inc.	5.90	02/15/39	662,213

		Consumer Finance (0.3%)
525		American Express Co.	8.125	05/20/19	636,945

		Consumer Products - Miscellaneous (0.2%)
460		Fortune Brands, Inc.	6.375	06/15/14	503,881

		Containers - Paper/Plastic (0.2%)
515		Sealed Air Corp. (144A) (a)	7.875	06/15/17	559,974

		Diversified Financial Services (9.6%)
1,115		Bank of America Corp. (Series L)	5.65	05/01/18	1,129,826
1,865		Bank of America Corp.	5.75	12/01/17	1,915,083
795		Bank of America Corp.	7.625	06/01/19	910,905
1,735		Citigroup, Inc. (d)	5.875	05/29/37	1,567,867
480		Citigroup, Inc. (d)	6.125	05/15/18	491,238
785		Citigroup, Inc. (d)	8.125	07/15/39	908,974
4,820		Citigroup, Inc. (d)	8.50	05/22/19	5,635,057
795		Credit Agricole SA (144A) (France) (a)	8.375(b)	10/29/49(c)	864,563
285		General Electric Capital Corp.	5.50	01/08/20	291,322
1,980		General Electric Capital Corp.	5.625	05/01/18	2,072,476
75		General Electric Capital Corp. (MTN)	5.875	01/14/38	71,543
6,075		General Electric Capital Corp. (Series G)	6.00	08/07/19	6,430,770
1,300		UBS AG/Stamford Branch (Switzerland)	5.875	12/20/17	1,348,442
					23,638,066
		Diversified Manufactured Operation (0.8%)
255		Bombardier, Inc. (144A) (Canada) (a)	7.50	03/15/18	267,112
505		Bombardier, Inc. (144A) (Canada) (a)	7.75	03/15/20	530,250
1,150		Tyco Electronics Group SA (Luxembourg)	5.95	01/15/14	1,240,519
					2,037,881
		Diversified Minerals (1.9%)
600		Anglo American Capital PLC (144A) (United Kingdom) (a)	9.375	04/08/19	765,458

$	1,410	Rio Tinto Finance USA Ltd. (Australia)	9.00%	05/01/19	$	1,812,613
475		Teck Resources Ltd. (Canada)	10.25	05/15/16	567,625
650		Vale Overseas Ltd. (Cayman Islands)	5.625	09/15/19	674,465
595		Vale Overseas Ltd. (Cayman Islands)	6.875	11/21/36	617,045
345		Vale Overseas Ltd. (Cayman Islands)	6.875	11/10/39	359,196
					4,796,402
		Diversified Telecommunication Services (2.7%)
2,730		AT&T Corp.	8.00	11/15/31	3,328,361
1,855		AT&T, Inc.	6.15	09/15/34	1,838,246
1,015		Verizon Communications, Inc.	8.95	03/01/39	1,380,717
					6,547,324
		Electric - Generation (0.7%)
1,610		AES Corp. (The)	8.00	06/01/20	1,612,012

		Electric - Integrated (5.1%)
775		CMS Energy Corp.	6.25	02/01/20	769,687
65		CMS Energy Corp.	6.30	02/01/12	68,182
775		Consumers Energy Co.	5.80	09/15/35	765,627
435		Dominion Resources, Inc.	7.00	06/15/38	497,537
645		DTE Energy Co.	7.625	05/15/14	734,437
800		Entergy Gulf States Louisiana LLC	5.59	10/01/24	818,796
2,650		Exelon Generation Co. LLC	6.25	10/01/39	2,688,735
975		FirstEnergy Solutions Corp.	6.80	08/15/39	957,631
150		NiSource Finance Corp.	6.125	03/01/22	156,832
965		NiSource Finance Corp.	6.80	01/15/19	1,050,819
200		Ohio Power Co. (Series 1)	5.375	10/01/21	204,595
1,510		PPL Energy Supply LLC	6.50	05/01/18	1,611,519
230		Progress Energy, Inc.	7.05	03/15/19	259,969
710		Southwestern Public Service Co. (Series G)	8.75	12/01/18	886,126
710		Virginia Electric & Power Co.	8.875	11/15/38	989,694
					12,460,186
		Electric Utilities (0.4%)
975		FirstEnergy Solutions Corp.	6.05	08/15/21	978,248

		Electronic Equipment, Instruments & Components (0.7%)
675		Agilent Technologies, Inc.	5.50	09/14/15	724,426
545		Corning, Inc.	6.625	05/15/19	605,545
290		Corning, Inc.	7.25	08/15/36	311,655
					1,641,626
		Enterprise Software/Service (0.0%)
90		CA, Inc.	5.375	12/01/19	91,141

		Finance - Auto Loans (0.2%)
460		Nissan Motor Acceptance Corp. (144A) (a)	4.50	01/30/15	461,654

		Finance - Consumer Loans (0.3%)
785		American General Finance Corp. (Series H)	4.625	09/01/10	783,893

		Finance - Credit Card (1.3%)
1,995		American Express Credit Corp. (Series C)	7.30	08/20/13	2,240,906
780		Capital One Bank USA NA	8.80	07/15/19	944,001
					3,184,907
		Finance - Investment Banker/Broker (5.1%)
610		Bear Stearns Cos. LLC (The)	5.55	01/22/17	634,589
1,060		Bear Stearns Cos. LLC (The)	7.25	02/01/18	1,226,900
2,610		JPMorgan Chase Capital XXVII (Series AA)	7.00	11/01/39	2,671,909
1,305		Macquarie Group Ltd. (144A) (Australia) (a)	6.00	01/14/20	1,304,093
605		Macquarie Group Ltd. (144A) (Australia) (a)	7.625	08/13/19	676,454
3,625		Merrill Lynch & Co., Inc. (MTN)	6.875	04/25/18	3,912,622
930		Merrill Lynch & Co., Inc.	7.75	05/14/38	1,034,009
1,120		TD Ameritrade Holding Corp.	5.60	12/01/19	1,133,598
					12,594,174

		Finance - Other Services (0.4%)
$	875	NASDAQ OMX Group, Inc. (The)	5.55%	01/15/20	$	871,788

		Food - Miscellaneous/Diversified (0.7%)
860		ConAgra Foods, Inc.	7.00	10/01/28	940,560
740		ConAgra Foods, Inc.	8.25	09/15/30	909,944
					1,850,504
		Food - Retail (0.4%)
835		Delhaize America, Inc.	9.00	04/15/31	1,065,038

		Food Products (1.2%)
1,520		Kraft Foods, Inc.	5.375	02/10/20	1,547,796
700		Kraft Foods, Inc.	6.875	02/01/38	759,726
610		Kraft Foods, Inc.	6.875	01/26/39	662,724
					2,970,246
		Gold Mining (0.4%)
880		Newmont Mining Corp.	6.25	10/01/39	882,929

		Health Care Providers & Services (0.6%)
1,350		UnitedHealth Group, Inc.	6.00	02/15/18	1,443,658

		Independent Power Producer (0.1%)
295		NRG Energy, Inc.	8.50	06/15/19	300,162

		Industrial Conglomerates (0.7%)
1,575		General Electric Co.	5.25	12/06/17	1,654,542

		Instruments - Scientific (0.3%)
820		Fisher Scientific International, Inc.	6.125	07/01/15	851,836

		Insurance (0.5%)
1,025		Principal Financial Group, Inc.	8.875	05/15/19	1,232,880

		Investment Management/Advisor Services (0.8%)
870		Ameriprise Financial, Inc.	7.30	06/28/19	1,009,760
855		Blackstone Holdings Finance Co. LLC (144A) (a)	6.625	08/15/19	862,016
					1,871,776
		Life/Health Insurance (2.2%)
660		Aflac, Inc.	8.50	05/15/19	795,985
745		Lincoln National Corp.	8.75	07/01/19	912,475
1,325		Pacific LifeCorp (144A) (a)	6.00	02/10/20	1,295,666
925		Protective Life Corp.	7.375	10/15/19	984,234
635		Prudential Financial, Inc. (MTN)	6.625	12/01/37	668,244
660		Prudential Financial, Inc. (Series D)	7.375	06/15/19	758,175
					5,414,779
		Media (3.5%)
350		Comcast Corp.	5.15	03/01/20	353,826
180		Comcast Corp.	5.70	05/15/18	191,163
820		Comcast Corp.	6.40	05/15/38	834,808
270		Comcast Corp.	6.45	03/15/37	275,843
1,620		Comcast Corp.	6.50	01/15/15	1,825,445
1,200		Time Warner Cable, Inc.	6.75	07/01/18	1,342,982
375		Time Warner Cable, Inc.	6.75	06/15/39	394,663
350		Time Warner Cable, Inc.	8.25	04/01/19	424,230
485		Time Warner Cable, Inc.	8.75	02/14/19	602,460
610		Time Warner, Inc.	6.50	11/15/36	628,638
715		Time Warner, Inc.	7.70	05/01/32	827,573
850		Viacom, Inc.	6.875	04/30/36	903,965
					8,605,596
		Medical - Biomedical/Genetics (0.3%)
725		Life Technologies Corp.	6.00	03/01/20	743,689

		Medical - Drugs (0.1%)
150		Wyeth	6.45	02/01/24	171,422

		Medical - HMO (0.1%)
$	260	WellPoint, Inc.	7.00%	02/15/19	$	295,333

		Medical - Hospitals (0.3%)
305		HCA, Inc. (144A) (a)	8.50	04/15/19	329,591
380		Tenet Healthcare Corp.	7.375	02/01/13	385,700
					715,291
		Medical Instruments (0.6%)
1,570		Boston Scientific Corp.	6.00	01/15/20	1,485,845

		Medical Labs & Testing Services (0.2%)
605		Quest Diagnostics, Inc.	4.75	01/30/20	593,017

		Metal - Aluminum (0.4%)
530		Alcoa, Inc.	5.87	02/23/22	487,989
465		Alcoa, Inc.	6.75	07/15/18	482,673
					970,662
		Metal - Iron (0.2%)
445		Cliffs Natural Resources, Inc.	5.90	03/15/20	456,593

		Metals & Mining (0.2%)
390		Freeport-McMoRan Copper & Gold, Inc.	8.375	04/01/17	434,456

		Money Center Banks (0.2%)
505		Lloyds TSB Bank PLC (144A) (United Kingdom) (a)	5.80	01/13/20	493,627

		Multi-line Insurance (4.0%)
800		Aegon N.V. (Netherlands)	4.625	12/01/15	808,081
840		Allstate Corp. (The) (e)	7.45	05/16/19	987,388
1,285		American Financial Group, Inc.	9.875	06/15/19	1,517,400
1,335		CNA Financial Corp.	7.35	11/15/19	1,397,653
1,750		Farmers Insurance Exchange (144A) (a)	8.625	05/01/24	1,885,873
290		MetLife, Inc. (Series A) (f)	6.817	08/15/18	322,216
590		MetLife, Inc. (f)	7.717	02/15/19	690,058
965		MetLife, Inc. (f)	10.75	08/01/39	1,246,995
850		XL Capital Ltd. (Cayman Islands)	5.25	09/15/14	879,545
					9,735,209
		Multimedia (1.0%)
170		News America, Inc.	6.40	12/15/35	174,147
930		News America, Inc.	6.65	11/15/37	981,252
370		News America, Inc.	7.85	03/01/39	440,499
760		Vivendi SA (144A) (France) (a)	6.625	04/04/18	824,520
					2,420,418
		Non-Hazardous Waste Disposal (0.3%)
665		Republic Services, Inc. (144A) (a)	5.50	09/15/19	682,307

		Office Automation & Equipment (0.5%)
255		Xerox Corp.	5.625	12/15/19	262,599
815		Xerox Corp.	6.35	05/15/18	884,277
					1,146,876
		Oil - Field Services (0.9%)
900		Weatherford International Ltd. (Switzerland)	9.625	03/01/19	1,140,634
1,035		Weatherford International, Inc.	6.35	06/15/17	1,113,173
					2,253,807
		Oil Companies - Exploration & Production (2.9%)
775		Anadarko Petroleum Corp.	8.70	03/15/19	960,376
665		Chesapeake Energy Corp.	7.625	07/15/13	696,588
1,220		EnCana Corp. (Canada)	6.50	02/01/38	1,303,282
400		Gaz Capital SA (144A) (Luxembourg) (a)	6.51	03/07/22	399,520
445		Newfield Exploration Co.	7.125	05/15/18	453,900
950		Nexen, Inc. (Canada)	7.50	07/30/39	1,087,118
180		Pioneer Natural Resources Co.	6.65	03/15/17	180,861

$	480	Plains Exploration & Production Co.	7.625%	06/01/18	$	487,200
1,370		Questar Market Resources, Inc.	6.80	04/01/18	1,501,895
					7,070,740
		Oil Company - Integrated (0.5%)
950		Petro-Canada (Canada)	5.95	05/15/35	932,692
410		Petrobras International Finance Co. (Cayman Islands)	5.75	01/20/20	422,091
					1,354,783
		Oil Refining & Marketing (0.3%)
700		Valero Energy Corp.	6.125	02/01/20	701,457

		Oil, Gas & Consumable Fuels (0.3%)
750		Hess Corp.	6.00	01/15/40	743,173

		Paper & Related Products (1.3%)
130		Georgia-Pacific LLC (144A) (a)	8.25	05/01/16	142,350
860		International Paper Co.	7.50	08/15/21	979,151
460		International Paper Co.	9.375	05/15/19	575,974
1,325		MeadWestvaco Corp.	7.375	09/01/19	1,454,029
					3,151,504
		Pipelines (5.6%)
670		CenterPoint Energy Resources Corp.	6.25	02/01/37	653,601
375		CenterPoint Energy Resources Corp. (Series B)	7.875	04/01/13	429,687
364		Colorado Interstate Gas Co.	6.80	11/15/15	408,224
1,750		Energy Transfer Partners LP	9.00	04/15/19	2,152,325
275		Enterprise Products Operating LLC	5.25	01/31/20	278,028
1,265		Enterprise Products Operating LLC (Series G)	5.60	10/15/14	1,370,587
955		Kinder Morgan Energy Partners LP	5.85	09/15/12	1,038,152
1,480		Kinder Morgan Finance Co. ULC (Canada)	5.70	01/05/16	1,457,800
775		Midcontinent Express Pipeline LLC (144A) (a)	6.70	09/15/19	817,922
1,095		Plains All American Pipeline LP / PAA Finance Corp.	6.70	05/15/36	1,128,549
705		Plains All American Pipeline LP / PAA Finance Corp.	8.75	05/01/19	861,484
225		Spectra Energy Capital LLC	8.00	10/01/19	265,682
960		Texas Eastern Transmission LP	7.00	07/15/32	1,077,637
1,625		Williams Partners LP / Williams Partners Finance Corp.	7.25	02/01/17	1,857,615
					13,797,293
		Property Trust (0.5%)
1,200		WEA Finance LLC / WT Finance Aust Pty Ltd. (144A) (a)	6.75	09/02/19	1,282,744

		Real Estate Operation/Development (0.5%)
1,200		Brookfield Asset Management, Inc. (Canada)	5.80	04/25/17	1,172,326

		Reinsurance (0.5%)
370		Platinum Underwriters Finance, Inc. (Series B)	7.50	06/01/17	398,207
775		Reinsurance Group of America, Inc.	6.45	11/15/19	811,275
					1,209,482
		REIT - Apartments (0.3%)
800		AvalonBay Communities, Inc. (MTN)	6.10	03/15/20	851,960

		REIT - Diversified (0.6%)
735		Duke Realty LP	6.75	03/15/20	749,428
745		Vornado Realty LP	4.25	04/01/15	740,172
					1,489,600
		REIT - Health Care (0.3%)
860		Health Care, Inc. (g)	6.125	04/15/20	864,273

		REIT - Office Property (0.7%)
975		Boston Properties LP	5.875	10/15/19	1,013,995

$	650	Mack-Cali Realty L.P.	7.75%	08/15/19	$	717,980
					1,731,975
		REIT - Regional Malls (0.5%)
650		Simon Property Group LP	5.65	02/01/20	635,346
610		Simon Property Group LP	6.75	05/15/14	667,981
					1,303,327
		REIT - Shopping Centers (0.2%)
430		Federal Realty Investment Trust	5.90	04/01/20	431,702

		Retail - Drug Store (0.7%)
1,543		CVS Pass-Through Trust	6.036	12/10/28	1,530,700
119		CVS Pass-Through Trust (144A) (a)	8.353	07/10/31	138,198
					1,668,898
		Retail - Mail Order (0.3%)
620		QVC, Inc. (144A) (a)	7.125	04/15/17	626,975

		Retail - Regional Department Store (0.4%)
890		JC Penney Corp., Inc.	6.375	10/15/36	833,262
185		Kohl’s Corp.	6.875	12/15/37	206,844
					1,040,106
		Retail - Restaurants (0.5%)
1,040		Yum! Brands, Inc.	6.875	11/15/37	1,132,881

		Satellite Telecommunication (0.1%)
310		Intelsat Subsidiary Holding Co. Ltd. (Bermuda)	8.50	01/15/13	316,200

		Semiconductor Equipment (0.4%)
905		KLA-Tencor Corp.	6.90	05/01/18	983,251

		Special Purpose Entity (1.3%)
925		AIG SunAmerica Global Financing (144A) (a)	6.30	05/10/11	952,901
800		Capital One Capital	8.875	05/15/40	877,827
820		Harley-Davidson Funding Corp. (144A) (a)	6.80	06/15/18	819,992
225		LBI Escrow Corp. (144A) (a)(g)	8.00	11/01/17	233,719
230		New Communications Holdings, Inc. (144A) (a)(g)	8.50	04/15/20	232,875
					3,117,314
		Specialty Retail (0.4%)
955		Home Depot, Inc.	5.875	12/16/36	929,823

		Steel - Producers (1.0%)
1,990		ArcelorMittal (Luxembourg)	9.85	06/01/19	2,533,340

		Super-Regional Banks - U.S. (0.3%)
775		KeyCorp (MTN)	6.50	05/14/13	828,211

		Telecommunication Services (0.8%)
715		Qwest Corp.	6.50	06/01/17	748,069
260		Qwest Corp.	6.875	09/15/33	252,200
545		Sable International Finance Ltd. (144A) (Cayman Islands) (a)	7.75	02/15/17	569,525
305		SBA Telecommunications, Inc. (144A) (a)	8.25	08/15/19	326,350
					1,896,144
		Telephone - Integrated (3.7%)
415		CenturyTel, Inc. (Series Q)	6.15	09/15/19	411,821
715		Citizens Communications Co.	7.125	03/15/19	682,825
315		Deutsche Telekom International Finance BV (Netherlands)	6.75	08/20/18	353,502
555		Deutsche Telekom International Finance BV (Netherlands)	8.75	06/15/30	712,687
1,045		GTE Corp.	6.94	04/15/28	1,099,994
1,470		Telecom Italia Capital SA (Luxembourg)	6.999	06/04/18	1,592,286
725		Telecom Italia Capital SA (Luxembourg)	7.175	06/18/19	784,043
2,120		Telefonica Europe BV (Netherlands)	8.25	09/15/30	2,607,714

$	830	Verizon Communications, Inc.	6.40%	02/15/38	$	863,997
					9,108,869
		Television (0.5%)
1,035		CBS Corp.	8.875	05/15/19	1,252,321

		Tobacco (1.6%)
280		Altria Group, Inc.	9.25	08/06/19	340,794
460		Altria Group, Inc.	9.70	11/10/18	566,494
505		Altria Group, Inc.	10.20	02/06/39	678,972
445		BAT International Finance PLC (144A) (United Kingdom) (a)	9.50	11/15/18	577,187
835		Lorillard Tobacco Co.	8.125	06/23/19	921,432
835		Philip Morris International, Inc.	5.65	05/16/18	900,492
45		Philip Morris International, Inc.	6.375	05/16/38	49,127
					4,034,498
		Transport - Rail (0.3%)
840		CSX Corp.	6.15	05/01/37	849,390
		Total Corporate Bonds (Cost $219,706,526)			233,377,979

		Commercial Mortgage-Backed Securities (0.9%)
475		Banc of America Commercial Mortgage, Inc. 2007-4 A4	5.744(b)	02/10/51	461,845
850		Bear Stearns Commercial Mortgage Securities 2007-T26 A4	5.471(b)	01/12/45	867,279
930		LB-UBS Commercial Mortgage Trust 2006-C6 A4	5.372	09/15/39	947,520
		Total Commercial Mortgage-Backed Securities (Cost $1,885,602)			2,276,644

		Foreign Government Obligations (0.8%)
565		Export-Import Bank of Korea (South Korea)	4.125	09/09/15	567,441
1,345		Korea Development Bank (South Korea)	4.375	08/10/15	1,366,725
		Total Foreign Government Obligations (Cost $1,906,179)			1,934,166

		Tax-Exempt Municipal Bond (0.3%)
600		State of California Various Purpose General Obligation Bonds (Cost $603,036)	5.95	04/01/16	624,918

		U.S. Government Agencies - Mortgage-Backed Security (0.0%)
		Federal Home Loan Mortgage Corp.
1		Federal Home Loan Mortgage Corp. Gold (Cost $1,512)	6.50	12/01/28	1,606

		Short-Term Investments (2.0%)
		U.S. Government Obligations (0.8%)
1,960		U.S. Treasury Bills (Cost $1,959,751)(h)(i)	0.01-0.15	05/06/10	1,959,751

NUMBER OF SHARES (000)
	Investment Company (j) (1.2%)
3,070	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $3,069,659)			3,069,659

	Total Short-Term Investments (Cost $5,029,410)			5,029,410

	Total Investments *(Cost $229,132,265) (k)(l)*	98.8	%	243,244,723
	Other Assets in Excess of Liabilities	1.2		2,859,558
	Net Assets	100.0	%	$	246,104,281

MTN	Medium Term Note.
REIT	Real Estate Investment Trust.
(a)	Resale is restricted to qualified institutional investors.
(b)	Floating rate security. Rate shown is the rate in effect at March 31, 2010.

(c)	Security issued with perpetual maturity.
(d)	For the three months ended March 31, 2010, the cost of purchases of Citigroup, Inc., an affiliate of the Investment Adviser, Administrator and Distributor, was $589,815.
(e)	For the three months ended March 31,2010, there were no transactions in Allstate Corp. (The), an affiliate of the Fund.
(f)	For the three months ended March 31,2010, there were no transactions in Metlife, Inc., an affiliate of the Fund.
(g)	Security purchased on a when-issued basis.
(h)	A portion of this security has been physically segregated in connection with open future and swap contracts.
(i)	Purchased on a discount basis. The interest rates shown have been adjusted to reflect a money market equivalent yield.
(j)	The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(k)	Securities have been designated as collateral in connection with securities purchased on a when-issued basis, open future and swap contracts.
(l)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Bond Insurance:
AMBAC	AMBAC Assurance Corporation.

Futures Contracts Open at March 31, 2010:

NUMBER OF CONTRACTS	LONG/ SHORT	DESCRIPTION, DELIVERY MONTH AND YEAR	UNDERLYING FACE AMOUNT AT VALUE			UNREALIZED APPRECIATION (DEPRECIATION)
715	Long	U.S. Treasury Notes 5 Year, June 2010	$	82,113,281		$	(444,911	)
139	Long	U.S. Treasury Notes 2 Year, June 2010	30,156,484			(52,297		)
131	Short	U.S. Treasury Bonds 30 Year, June 2010	(15,212,375		)	18,837
348	Short	U.S. Treasury Notes 10 Year, June 2010	(40,455,000		)	123,967
		Net Unrealized Depreciation				$	(354,404	)

Credit Default Swap Contracts Open at March 31, 2010:

SWAP COUNTERPARTY & REFERENCE OBLIGATION	BUY/SELL PROTECTION	NOTIONAL AMOUNT (000’s)		INTEREST RATE		TERMINATION DATE	UNREALIZED APPRECIATION (DEPRECIATION)			UPFRONT PAYMENTS			VALUE			CREDIT RATING OF REFERENCE OBLIGATION+ (unaudited)
Bank of America, N.A. Carnival Corp.	Buy	$	1,185	1.57	%	March 20, 2018	$	(32,968	)	—			$	(32,968	)	BBB+
Goldman Sachs International Sealed Air Corp.	Buy	505		1.08		March 20, 2018	22,555			—			22,555			BB+
Bank of America, N.A. Toll Brothers Inc.	Buy	1,695		2.90		March 20, 2013	(86,109		)	—			(86,109		)	BBB-
Bank of America, N.A. Tyco Electronics Ltd.	Buy	925		5.00		June 20, 2014	(123,978		)	$	(38,859	)	(162,837		)	BBB-
Barclays Capital Whirlpool Corp.	Buy	450		1.00		June 20, 2014	(23,931		)	24,264			333			BBB-
Total Credit Default Swaps		$	4,760				$	(244,431	)	$	(14,595	)	$	(259,026	)

+ Credit rating as issued by Standard & Poors

Interest Rate Swap Contracts Open at March 31, 2010:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate	Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Bank of America, N.A.	3 Month LIBOR	Receive	2.625	03/11/15	$	27,340	$	89,128
Deutsche Bank AG	3 Month LIBOR	Receive	2.898	01/11/15	14,530		(172,616		)
Deutsche Bank AG	3 Month LIBOR	Receive	2.654	03/26/15	13,730		36,659
		Net Unrealized Depreciation					$	(46,829	)

LIBOR- London Interbank Offered Rate

Notes to the Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL			UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)			OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)			SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)

Assets:
Corporate Bonds	$	233,377,979		—			$	233,377,979		—
Commercial Mortgage-Backed Securities	2,276,644			—			2,276,644			—
Foreign Government Obligations	1,934,166			—			1,934,166			—
Tax-Exempt Municipal Bond	624,918			—			624,918			—
U.S. Government Agencies - Mortgage-Backed Security	1,606			—			1,606			—
Short-Term Investments
U.S. Government Obligations	1,959,751			—			1,959,751			—
Investment Company	3,069,659			$	3,069,659		—			—
Total Short-Term Investments	5,029,410			3,069,659			1,959,751			—
Futures	142,804			142,804			—			—
Credit Default Swaps	22,555			—			22,555			—
Interest Rate Swaps	125,787			—			125,787			—
Total	$	243,535,869		$	3,212,463		$	240,323,406		—

Liabilities:
Futures	$	(497,208	)	$	(497,208	)	$	—		—
Credit Default Swaps	(266,986		)	—			(266,986		)	—
Interest Rate Swaps	(172,616		)	—			(172,616		)	—
Total Liabilities	$	(936,810	)	$	(497,208	)	$	(439,602	)	—

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 ask 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 ask 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 ask 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 ask 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; (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, which approximates market value.

Morgan Stanley Variable Investment Series - High Yield Portfolio*

Portfolio of Investments · March 31, 2010 (unaudited)

PRINCIPAL AMOUNT IN THOUSANDS			COUPON RATE	MATURITY DATE	VALUE
		Corporate Bonds (91.7%)
		Advanced Materials/Products (0.4%)
$	145	Hexcel Corp.	6.75%	02/01/15	$	144,275

		Aerospace/Defense (0.4%)
145		Transdigm, Inc. (144A) (a)	7.75	07/15/14	149,350

		Agricultural Chemicals (0.9%)
255		Terra Capital, Inc.	7.75	11/01/19	309,187

		Apparel Manufacturers (0.5%)
150		Oxford Industries, Inc.	11.375	07/15/15	168,000

		Auto - Medium & Heavy Duty Trucks (0.3%)
95		Navistar International Corp.	8.25	11/01/21	97,375

		Beverages - Wine/Spirits (0.5%)
175		Constellation Brands, Inc.	7.25	05/15/17	180,250

		Broadcast Service/Program (0.5%)
135		XM Satellite Radio, Inc. (144A) (a)	13.00	08/01/13	152,719

		Building - Residential/Commercial (0.9%)
295		K Hovnanian Enterprises, Inc.	10.625	10/15/16	315,650

		Building Product - Cement/Aggregation (0.3%)
100		Hanson Ltd. (United Kingdom)	7.875	09/27/10	102,749

		Cable/Satellite TV (4.2%)
295		Charter Communications Operating LLC/Charter Communications Operating Capital (144A) (a)(b)	10.875	09/15/14	331,506
120		CSC Holdings LLC (144A) (a)	8.50	06/15/15	127,800
445		CSC Holdings LLC (144A) (a)	8.625	02/15/19	489,500
330		DISH DBS Corp.	6.625	10/01/14	333,300
130		DISH DBS Corp.	7.00	10/01/13	135,850
					1,417,956
		Casino Gaming (4.9%)
4,485		Aladdin Gaming Holdings LLC (Series B) (b)(c)(d)	13.50	03/01/10	0
165		Ameristar Casinos, Inc.	9.25	06/01/14	173,662
250		Harrah’s Operating Co., Inc.	11.25	06/01/17	270,625
100		Las Vegas Sands Corp. (e)	6.375	02/15/15	95,250
300		MGM Mirage	6.75	04/01/13	273,000
305		MGM Mirage	13.00	11/15/13	356,850
125		Scientific Games International, Inc.	9.25	06/15/19	132,813
335		Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.	6.625	12/01/14	335,837
					1,638,037
		Cellular Telephone (1.1%)
370		Nextel Communications, Inc. (Series E)	6.875	10/31/13	362,600

		Chemicals - Diversified (0.9%)
180		Innophos Holdings, Inc. (144A) (a)	9.50	04/15/12	180,000
130		Westlake Chemical Corp.	6.625	01/15/16	127,400
					307,400
		Chemicals - Other (0.5%)
175		Innophos, Inc.	8.875	08/15/14	181,125

		Chemicals - Plastics (1.1%)
390		Hexion Finance Escrow LLC / Hexion Escrow Corp. (144A) (a)	8.875	02/01/18	386,100

		Chemicals - Specialty (0.6%)
175		Ashland, Inc. (144A) (a)	9.125	06/01/17	196,438

		Coal (1.2%)
140		Foundation PA Coal Co. LLC	7.25	08/01/14	143,150

$	255	Massey Energy Co.	6.875%	12/15/13	$	259,781
					402,931
		Commercial Bank - Eastern U.S. (1.9%)
685		CIT Group, Inc.	7.00	05/01/17	633,625

		Commercial Services (0.9%)
260		Ticketmaster Entertainment, Inc.	10.75	08/01/16	291,200

		Computer Services (1.3%)
280		SunGard Data Systems, Inc.	9.125	08/15/13	288,400
60		SunGard Data Systems, Inc.	10.25	08/15/15	63,375
65		SunGard Data Systems, Inc.	10.625	05/15/15	71,175
					422,950
		Containers - Metal & Glass (0.8%)
12		Crown Americas LLC / Crown Americas Capital Corp.	7.625	11/15/13	12,420
115		Owens-Brockway Glass Container, Inc.	7.375	05/15/16	121,325
150		Owens-Brockway Glass Container, Inc.	8.25	05/15/13	152,625
					286,370
		Containers - Paper/Plastic (3.0%)
110		Berry Plastics Corp.	8.25	11/15/15	111,237
255		Berry Plastics Corp. (e)	8.875	09/15/14	250,219
210		Graham Packaging Co. LP/GPC Capital Corp. I (e)	9.875	10/15/14	218,925
200		Graphic Packaging International, Inc.	9.50	08/15/13	206,000
210		Solo Cup Co.	8.50	02/15/14	206,325
					992,706
		Data Processing Services (0.4%)
140		First Data Corp.	9.875	09/24/15	121,450

		Decision Support Software (1.3%)
460		Vangent, Inc.	9.625	02/15/15	430,100

		Direct Marketing (0.9%)
295		Affinion Group, Inc.	11.50	10/15/15	303,850

		Diversified Financial Services (1.4%)
190		Bank of America Corp.	8.00(f)	12/29/49(g)	194,142
71		GMAC, Inc.	6.75	12/01/14	71,355
190		GMAC, Inc.	6.875	09/15/11	194,038
					459,535
		Diversified Manufactured Operation (2.2%)
460		Bombardier, Inc. (144A) (Canada) (a)	6.30	05/01/14	479,550
235		RBS Global, Inc. / Rexnord LLC	9.50	08/01/14	245,575
					725,125
		Diversified Minerals (1.3%)
360		Teck Resources Ltd. (Canada)	10.25	05/15/16	430,200

		E-Commerce/Services (0.9%)
270		Expedia, Inc.	8.50	07/01/16	301,050

		Electric - Generation (3.2%)
270		AES Corp. (The)	7.75	03/01/14	277,425
100		AES Corp. (The) (144A) (a)	8.75	05/15/13	102,000
200		Edison Mission Energy	7.00	05/15/17	140,500
175		Edison Mission Energy	7.75	06/15/16	128,625
285		Intergen N.V. (144A) (Netherlands) (a)	9.00	06/30/17	294,975
133		Midwest Generation LLC (Series B)	8.56	01/02/16	136,452
					1,079,977
		Electric - Integrated (1.8%)
115		Ipalco Enterprises, Inc.	8.625	11/14/11	123,050

$	495	Mirant Americas Generation LLC (e)	8.50%	10/01/21	$	467,775
					590,825
		Electronics - Military (0.6%)
200		L-3 Communications Corp.	5.875	01/15/15	204,500

		Finance - Auto Loans (1.4%)
450		Ford Motor Credit Co. LLC	7.25	10/25/11	465,421

		Finance - Rental/Leasing Company (0.7%)
235		International Lease Finance Corp. (144A) (a)	8.625	09/15/15	240,818

		Food - Meat Products (0.5%)
140		JBS USA LLC/JBS USA Finance, Inc. (144A) (a)	11.625	05/01/14	160,300

		Food - Miscellaneous/Diversified (0.3%)
110		M-Foods Holdings, Inc. (144A) (a)	9.75	10/01/13	114,263

		Food - Retail (1.1%)
110		SUPERVALU, Inc.	7.50	05/15/12	117,700
120		SUPERVALU, Inc.	7.50	11/15/14	122,400
120		SUPERVALU, Inc.	8.00	05/01/16	122,100
					362,200
		Funeral Service & Related Items (0.5%)
170		Service Corp. International/US	6.75	04/01/16	167,450

		Health Care Providers & Services (0.7%)
230		Healthsouth Corp.	10.75	06/15/16	249,837

		Independent Power Producer (1.4%)
330		NRG Energy, Inc.	8.50	06/15/19	335,775
165		RRI Energy, Inc.	7.875	06/15/17	148,912
					484,687
		Industrial Gases (0.1%)
45		Airgas, Inc. (144A) (a)	7.125	10/01/18	49,613

		Machinery - Electric Utility (0.6%)
218		Ormat Funding Corp.	8.25	12/30/20	210,301

		Machinery - Electrical (0.4%)
120		Baldor Electric Co.	8.625	02/15/17	127,500

		Machinery - Farm (0.4%)
135		Case New Holland, Inc. (144A) (a)	7.75	09/01/13	140,738

		Media (0.6%)
185		Nielsen Finance LLC / Nielsen Finance Co.	10.00	08/01/14	194,713

		Medical - Drugs (0.4%)
110		Axcan Intermediate Holdings, Inc.	12.75	03/01/16	121,550

		Medical - Hospitals (2.9%)
255		HCA, Inc.	5.75	03/15/14	241,931
200		HCA, Inc.	6.25	02/15/13	199,500
70		HCA, Inc. (144A) (a)	7.875	02/15/20	73,456
115		HCA, Inc. (144A) (a)	9.875	02/15/17	125,925
180		Tenet Healthcare Corp.	7.375	02/01/13	182,700
135		Tenet Healthcare Corp. (144A) (a)	10.00	05/01/18	151,875
					975,387
		Medical - Nursing Homes (0.4%)
130		Sun Healthcare Group, Inc.	9.125	04/15/15	134,225

		Medical - Outpatient/Home Medical (2.3%)
210		Apria Healthcare Group, Inc. (144A) (a)	11.25	11/01/14	229,425
95		Apria Healthcare Group, Inc. (144A) (a)	12.375	11/01/14	104,500
160		Select Medical Corp. (e)	6.143(f)	09/15/15	144,000
300		Select Medical Corp.	7.625	02/01/15	287,250
					765,175
		Medical Products (1.9%)
280		Biomet, Inc.	10.00	10/15/17	310,100

$	255	Fresenius Medical Care Capital Trust IV	7.875%	06/15/11	$	267,112
65		Invacare Corp.	9.75	02/15/15	70,200
					647,412
		Metal - Aluminum (1.2%)
430		Novelis, Inc. (Canada)	7.25	02/15/15	417,100

		Office Furnishings - Original (0.2%)
61		Interface, Inc.	9.50	02/01/14	63,135

		Oil - Field Services (0.4%)
140		Key Energy Services, Inc.	8.375	12/01/14	142,275

		Oil Companies - Exploration & Production (9.8%)
235		Atlas Energy Operating Co. LLC / Atlas Energy Finance Corp.	10.75	02/01/18	259,675
170		Chaparral Energy, Inc.	8.50	12/01/15	155,975
150		Chesapeake Energy Corp.	6.375	06/15/15	148,125
130		Chesapeake Energy Corp.	6.50	08/15/17	126,425
120		Chesapeake Energy Corp.	7.50	09/15/13	122,100
90		Cimarex Energy Co.	7.125	05/01/17	92,250
415		Forest Oil Corp.	7.25	06/15/19	419,150
305		Hilcorp Energy I LP/Hilcorp Finance Co. (144A) (a)	7.75	11/01/15	302,712
255		Newfield Exploration Co.	6.625	09/01/14	263,287
60		Newfield Exploration Co.	7.125	05/15/18	61,200
365		OPTI Canada, Inc. (Canada)	8.25	12/15/14	344,925
215		Pioneer Natural Resources Co.	6.65	03/15/17	216,028
195		Plains Exploration & Production Co.	7.625	06/01/18	197,925
105		Plains Exploration & Production Co.	7.75	06/15/15	106,969
125		Plains Exploration & Production Co.	10.00	03/01/16	138,750
80		SandRidge Energy, Inc. (144A) (a)	8.00	06/01/18	76,400
265		SandRidge Energy, Inc. (h)	8.625	04/01/15	259,038
					3,290,934
		Paper & Related Products (3.4%)
130		Appleton Papers, Inc. (144A) (a)	10.50	06/15/15	130,000
145		Cascades, Inc. (144A) (Canada) (a)	7.875	01/15/20	146,450
265		Georgia-Pacific LLC (144A) (a)	7.125	01/15/17	276,925
65		Georgia-Pacific LLC (144A) (a)	8.25	05/01/16	71,175
110		Glatfelter	7.125	05/01/16	108,625
220		NewPage Corp.	11.375	12/31/14	220,000
165		Verso Paper Holdings LLC / Verso Paper, Inc. (144A) (a)	11.50	07/01/14	179,025
					1,132,200
		Pharmacy Services (1.2%)
345		Omnicare, Inc.	6.75	12/15/13	348,450
70		Omnicare, Inc.	6.875	12/15/15	69,037
					417,487
		Pipelines (1.0%)
115		El Paso Corp.	6.875	06/15/14	117,921
25		El Paso Corp.	12.00	12/12/13	29,375
170		Sonat, Inc.	7.625	07/15/11	178,369
					325,665
		Radio (0.6%)
200		Sirius XM Radio, Inc.	9.625	08/01/13	209,750

		Resorts/Theme Parks (0.0%)
7,210		Resort at Summerlin LP (Series B) (b)(c)(d)	13.00	12/15/07	0

		Retail - Apparel/Shoe (1.0%)
330		Brown Shoe Co., Inc.	8.75	05/01/12	338,250

		Retail - Drug Store (0.9%)
340		RITE Aid Corp.	8.625	03/01/15	292,400

		Retail - Regional Department Store (0.6%)
$	200	Macy’s Retail Holdings, Inc.	5.90%	12/01/16	$	200,500

		Satellite Telecommunication (2.5%)
125		Hughes Network Systems LLC/HNS Finance Corp.	9.50	04/15/14	129,063
552		Intelsat Bermuda Ltd. (Bermuda) (Bermuda) (h)	11.50	02/04/17	568,431
30		Intelsat Corp.	9.25	06/15/16	31,575
110		Intelsat Jackson Holdings Ltd.	9.50	06/15/16	117,700
					846,769
		Seismic Data Collection (0.6%)
205		Cie Generale de Geophysique-Veritas (France)	7.50	05/15/15	206,538

		Special Purpose Entity (2.6%)
125		FireKeepers Development Authority (144A) (a)	13.875	05/01/15	145,313
80		Fresenius US Finance II, Inc. (144A) (a)	9.00	07/15/15	89,600
355		LPL Holdings, Inc. (144A) (a)	10.75	12/15/15	370,531
315		NSG Holdings LLC / NSG Holdings, Inc. (144A) (a)	7.75	12/15/25	285,075
					890,519
		Telecommunication Services (3.7%)
415		PAETEC Holding Corp. (e)	8.875	06/30/17	428,487
275		West Corp.	9.50	10/15/14	283,938
200		Wind Acquisition Finance SA (144A) (Luxembourg) (a)	11.75	07/15/17	222,000
275		Wind Acquisition Finance SA (144A) (Luxembourg) (a)	12.00	12/01/15	298,375
					1,232,800
		Telephone - Integrated (3.6%)
400		Frontier Communications Corp.	9.00	08/15/31	392,000
315		Sprint Capital Corp.	6.90	05/01/19	289,800
14		Virgin Media Finance PLC (United Kingdom)	8.75	04/15/14	14,403
205		Virgin Media Finance PLC (United Kingdom)	9.125	08/15/16	218,837
165		Windstream Corp.	7.875	11/01/17	163,350
125		Windstream Corp.	8.125	08/01/13	131,562
					1,209,952
		Theaters (0.7%)
220		AMC Entertainment, Inc. (e)	8.75	06/01/19	232,100
		Total Corporate Bonds (Cost $39,884,286)			30,845,569

		Senior Loan Notes (1.7%)
		Casino Services (0.9%)
318		CCM Merger Corp.	8.50(f)	07/13/12	313,564

		Utilities (0.8%)
272		Calpine Corp.	3.165(f)	03/29/14	264,327
		Total Senior Loan Notes (Cost $506,804)			577,891

NUMBER OF SHARES					VALUE
		*Preferred Stock (0.4%)*
		Diversified Financial Services
172		GMAC, Inc. $70.00 (144A) (Cost $72,132) (a)			131,118

		*Common Stocks (0.2%)*
		Casino Gaming (0.0%)
2,000		Fitzgeralds Gaming Corp. (c)(i)(j)			0

		Communications Equipment (0.1%)
12,688		Birch Telecom, Inc. (c)(i)(k)(l)			127
6,198		Orbcomm, Inc. (i)			13,326
					13,453

	Food Products (0.0%)
2,375	SFAC New Holdings, Inc. (c)(i)(k)(m)	$	0
436	SFFB Holdings, Inc. (c)(i)(k)	0
		0
	Restaurants (0.1%)
3,374	American Restaurant Group, Inc. (Class A) (c)(i)(k)	26,992

	Textile - Apparel (0.0%)
298,461	U.S. Leather, Inc. (c)(i)(k)	0

	Wireless Telecommunication Services (0.0%)
521	USA Mobility, Inc. (k)(n)	6,601
	Total Common Stocks (Cost $41,765,946)	47,046

PRINCIPAL AMOUNT IN THOUSANDS			VALUE
		*Short-Term Investments (10.4%)*
		*Securities Held as Collateral on Loaned Securities (5.6%)*
		Repurchase Agreements (2.6%)
$	80	Bank of America Securities LLC (0.02%, dated 03/31/10, due 04/01/10; proceeds $79,793; fully collateralized by a U.S. Government Agency security at the date of this Portfolio of Investments as follows: Federal Home Loan Mortgage Corp. 5.50% due 12/15/32; valued at $81,389)	79,793
447		Barclays Capital (0.37%, dated 03/31/10, due 04/01/10; proceeds $447,323; fully collateralized by common stock at the date of this Portfolio Investment as follows: Altera Corp., American Electric Power Co., Inc., Ivanhoe Mines Ltd., McMoRan Exploration Co., Noble Energy, Inc., North American Energy Partners, Inc., Seattle Genetics, Inc., Sempra Energy, Symantec Corp., Symetra Financial Corp., Transocean Ltd., United Technologies Corp., Visa, Inc., Westar Energy, Inc.; valued at $469,685)	447,318
358		ING (0.02%, dated 03/31/10, due 04/01/10; proceeds $357,855; fully collateralized by U.S. Government Agency securities at the date of this Portfolio of Investments as follows: Federal National Mortgage Association 5.00% due 10/01/39 - 11/01/39; valued at $365,026)	357,855
			884,966

NUMBER OF SHARES (000)
	Investment Company (o) (3.0%)
1,002	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $1,002,137)			1,002,137
	Total Securities Held as Collateral on Loaned Securities (Cost $1,887,103)			1,887,103

	Investment Company (o) (4.8%)
1,627	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $1,627,082)			1,627,082

	Total Short-Term Investments (Cost $3,514,185)			3,514,185

	Total Investments *(Cost $85,743,353) (p)*	104.4	%	35,115,809
	Liabilities in Excess of Other Assets	(4.4	)	(1,482,508		)
	Net Assets	100.0	%	$	33,633,301

(a)	Resale is restricted to qualified institutional investors.
(b)	Non-income producing security; bond in default.
(c)	Securities with a total market value equal to $27,119 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. Such fair value measurements may be Level 2 measurements if observable inputs are available.
(d)	Issuer in bankruptcy.

(e)	The value of loaned securities and related collateral outstanding at March 31, 2010 were $1,814,614 and $1,877,103, respectively. The Fund received cash collateral of $1,877,103 which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class as reported in the Portfolio of Investments. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.
(f)	Floating rate security. Rate shown is the rate in effect at March 31, 2010.
(g)	Security issued with perpetual maturity.
(h)	Payment-in-kind security.
(i)	Non-income producing security.
(j)	Resale is restricted, acquired (12/22/98) at a cost basis of $9,020.
(k)	Acquired through exchange offer.
(l)	Resale is restricted, acquired (06/18/98 and 08/25/98) at a cost basis of $6,473,685.
(m)	Resale is restricted, acquired (06/10/99) at a cost basis of $24.
(n)	Illiquid security.
(o)	The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(p)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL		UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Corporate Bonds	$	30,845,569	—		$	30,845,569	$	0
Senior Loan Notes	577,891		—		577,891		—
Preferred Stock	131,118		—		131,118		—
Common Stocks
Casino Gaming	0		—		—		0
Communications Equipment	13,453		$	13,326	—		127
Food Products	0		—		—		0
Restaurants	26,992		—		—		26,992
Textile-Apparel	0		—		—		0
Wireless Telecommunication Services	6,601		6,601		—		—
Total Common Stocks	47,046		19,927		—		27,119
Short-Term Investments
Repurchase Agreements	884,966		—		884,966		—
Investment Company	2,629,219		2,629,219		—		—
Total Short-Term Investments	3,514,185		2,629,219		884,966		—
Total	$	35,115,809	$	2,649,146	$	32,439,544	$	27,119

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

	INVESTMENTS IN SECURITIES
Beginning Balance	$	27,119
Net purchases (sales)	—
Amortization of discount	—
Transfers in	—
Transfers out	—
Change in unrealized appreciation/depreciation	835
Realized gains (losses)	(835		)
Ending Balance	$	27,119

Net change in unrealized appreciation/depreciation from investments still held as of March 31, 2010	$	—

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 ask 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 ask 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 ask 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 ask 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; (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, which approximates market value.

* Morgan Stanley announced on October 19, 2009 that it has entered into a definitive agreement to sell substantially all of its retail asset management business to Invesco Ltd. (“Invesco”), a leading global investment management company (the “Transaction”). The Trustees of the Fund approved an Agreement and Plan of Reorganization (the “Reorganization”). Pursuant to the Reorganization, substantially all of the assets of the Fund would be combined with those of a newly organized mutual fund advised by an affiliate of Invesco Ltd. (the “New Fund”). Pursuant to the Reorganization, shareholders of the Fund would become shareholders of the New Fund, receiving shares of such New Fund equal to the value of their holdings in the Fund. The Reorganization was approved by the Fund’s shareholders at a special meeting of shareholders held on May 11, 2010. Both the Transaction and the Reorganization are expected to close on or about June 1, 2010.

Morgan Stanley Variable Investment Series - Global Infrastructure Portfolio

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		*VALUE*
	*Common Stocks (87.2%)*
	*Australia (3.7%)*
	Electric Utilities
234,660	Spark Infrastructure Group (144A) (a)	$	259,480

	Gas Utilities
70,500	APA Group (Stapled Securities) (b)	230,312

	Transportation Infrastructure
130,645	Australian Infrastructure Fund (Stapled Securities) (b)(c)	237,375
830,995	Intoll Group (Stapled Securities) (b)(c)	854,070
188,113	MAP Group (Stapled Securities) (b)	533,402
180,403	Transurban Group (Stapled Securities) (b)	836,011
		2,460,858
	Total Australia	2,950,650

	*Austria (0.4%)*
	Construction & Engineering
12,822	Strabag SE	325,927

	*Bermuda (0.4%)*
	Transportation Infrastructure
217,000	COSCO Pacific Ltd. (d)	328,676

	*Brazil (0.4%)*
	Water Utilities
7,800	Cia de Saneamento Basico do Estado de Sao Paulo (ADR)	287,040

	*Canada (13.7%)*
	Electric Utilities
35,940	Fortis, Inc.	1,022,308

	Oil, Gas & Consumable Fuels
80,140	Enbridge, Inc.	3,822,165
164,160	TransCanada Corp. (e)	6,015,886
		9,838,051
	Transportation Infrastructure
10,150	Westshore Terminals Income Fund (Units) (c)	160,397
	Total Canada	11,020,756

	*Cayman Islands (0.4%)*
	Gas Utilities
140,000	Xinao Gas Holdings Ltd. (d)	357,742

	*China (3.4%)*
	Transportation Infrastructure
370,000	Beijing Capital International Airport Co., Ltd. (d)(f)	221,116
809,000	Jiangsu Expressway Co., Ltd. (d)	763,753
1,927,000	Zhejiang Expressway Co., Ltd. (H Shares) (d)	1,739,804
	Total China	2,724,673

	*France (3.8%)*
	Media
23,530	Eutelsat Communications	836,476

	Transportation Infrastructure
8,861	Aeroports de Paris (ADP)	729,580
141,900	Groupe Eurotunnel SA	1,446,062
1,240	Societe Des Autoroutes Paris-Rhin-Rhone (f)	89,184
		2,264,826
	Total France	3,101,302

	*Germany (1.1%)*
	Transportation Infrastructure
9,025	Fraport AG Frankfurt Airport Services Worldwide	475,215
10,233	Hamburger Hafen und Logistik AG	388,240
	Total Germany	863,455

	*Hong Kong (3.2%)*
	Gas Utilities
328,000	Hong Kong & China Gas Co., Ltd.	$	817,861

	Industrial Conglomerates
116,000	Beijing Enterprises Holdings Ltd.	806,028

	Transportation Infrastructure
255,000	China Merchants Holdings International Co., Ltd.	939,305
	Total Hong Kong	2,563,194

	*Italy (6.7%)*
	Electric Utilities
331,100	Terna Rete Elettrica Nazionale SpA	1,432,167

	Gas Utilities
374,698	Snam Rete Gas SpA	1,899,098

	Transportation Infrastructure
87,303	Atlantia SpA	2,037,597
	Total Italy	5,368,862

	*Japan (2.1%)*
	Gas Utilities
104,000	Toho Gas Co., Ltd.	567,334

	Transportation Infrastructure
9,000	Japan Airport Terminal Co., Ltd.	124,954
126,000	Kamigumi Co., Ltd.	1,013,499
		1,138,453
	Total Japan	1,705,787

	*Luxembourg (3.3%)*
	Media
71,759	SES SA (FDR)	1,776,578
36,608	SES SA (FDR)	924,628
	Total Luxembourg	2,701,206

	*Mexico (1.4%)*
	Transportation Infrastructure
17,400	Grupo Aeroportuario del Pacifico SAB de CV (ADR)	644,148
8,900	Grupo Aeroportuario del Sureste SAB de CV (ADR)	461,465
	Total Mexico	1,105,613

	*Netherlands (1.3%)*
	Transportation Infrastructure
5,150	Koninklijke Vopak N.V. (f)	405,598
8,100	Smit Internationale N.V.	656,419
	Total Netherlands	1,062,017

	*New Zealand (0.4%)*
	Transportation Infrastructure
259,404	Auckland International Airport Ltd.	357,478

	*Portugal (0.3%)*
	Transportation Infrastructure
29,613	Brisa Auto-Estradas de Portugal SA	251,181

	*Singapore (0.5%)*
	Transportation Infrastructure
199,000	Singapore Airport Terminal Services Ltd.	376,961

	*Spain (9.1%)*
	Construction & Engineering
182,876	Ferrovial SA	1,778,421

	Electric Utilities
27,459	Red Electrica Corp. SA	1,473,680

	Gas Utilities
82,785	Enagas	1,814,185

	Transportation Infrastructure
115,735	Abertis Infraestructuras SA (e)	$	2,227,537
	Total Spain	7,293,823

	*Switzerland (0.3%)*
	Transportation Infrastructure
706	Flughafen Zuerich AG	251,091

	*United Kingdom (9.4%)*
	Multi-Utilities
465,400	National Grid PLC	4,530,549
147,600	United Utilities Group PLC	1,252,062
		5,782,611
	Transportation Infrastructure
122,513	BBA Aviation PLC	361,973

	Water Utilities
49,700	Northumbrian Water Group PLC	213,513
65,400	Pennon Group PLC	518,551
37,900	Severn Trent PLC	687,282
		1,419,346
	Total United Kingdom	7,563,930

	*United States (21.9%)*
	Electric Utilities
9,090	ITC Holdings Corp.	499,950
36,200	Northeast Utilities	1,000,568
		1,500,518
	Gas Utilities
13,950	AGL Resources, Inc.	539,168
17,030	Atmos Energy Corp.	486,547
6,910	Northwest Natural Gas Co.	322,006
		1,347,721
	Multi-Utilities
148,820	Centerpoint Energy, Inc.	2,137,055
52,170	Consolidated Edison, Inc.	2,323,652
56,810	NiSource, Inc.	897,598
9,710	NorthWestern Corp.	260,325
21,180	NSTAR	750,196
		6,368,826
	Oil, Gas & Consumable Fuels
18,050	Kinder Morgan Management LLC (f)	1,058,091
42,920	Southern Union Co.	1,088,880
158,896	Spectra Energy Corp.	3,579,927
		5,726,898
	Wireless Telecommunication Services
69,620	Crown Castle International Corp. (f)	2,661,572
	Total United States	17,605,535
	Total Common Stocks (Cost $65,073,546)	70,166,899

1,187	Barclays Capital (0.37%, dated 03/31/10, due 04/01/10; proceeds $1,186,656; fully collateralized by common stock at the date of this Portfolio Investment as follows: Altera Corp., American Electric Power Co., Inc., Ivanhoe Mines Ltd., McMoRan Exploration Co., Noble Energy, Inc., North American Energy Partners, Inc., Seattle Genetics, Inc., Sempra Energy, Symantec Corp., Symetra Financial Corp., Transocean Ltd., United Technologies Corp., Visa, Inc., Westar Energy, Inc.; valued at $1,245,977)	1,186,644
949	ING (0.02%, dated 03/31/10, due 04/01/10; proceeds $949,316; fully collateralized by U.S. Government Agency securities at the date of this Portfolio of Investments as follows: Federal National Mortgage Association 5.00% due 10/01/39 - 11/01/39; valued at $968,339)	949,315
	Total Repurchase Agreements (Cost $2,347,633)	2,347,633

NUMBER OF SHARES (000)
	Investment Company (g) (3.3%)
2,658	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $2,658,462)			2,658,462

	Total Securities Held as Collateral on Loaned Securities (Cost $5,006,095)			5,006,095

	Investment Company (g) (6.8%)
5,507	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $5,506,909)			5,506,909

	Total Short-Term Investments (Cost $10,513,004)			10,513,004

	Total Investments *(Cost $75,586,550) (h)(i)*	100.2	%	80,679,903
	Liabilities in Excess of Other Assets	(0.2	)	(149,137		)
	Net Assets	100.0	%	$	80,530,766

ADR		American Depositary Receipt.
FDR		Fiduciary Depositary Receipt.
(a)		Resale is restricted to qualified institutional investors.
(b)		Comprised of securities in separate entities that are traded as a single stapled security.
(c)		Consists of one or more class of securities traded together as a unit; stocks with attached warrants.
(d)		Security trades on a Hong Kong exchange.
(e)		The value of loaned securities and related collateral outstanding at March 31, 2010 were $3,622,258 and $5,006,095, respectively. The Fund received cash collateral of $5,006,095 which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class as reported in the Portfolio of Investments. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.
(f)		Non-income producing security.
(g)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(h)		Securities have been designated as collateral in connection with open forward foreign currency contracts.
(i)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Forward Foreign Currency Contracts Open at March 31, 2010:

CONTRACTS TO DELIVER		IN EXCHANGE FOR		DELIVERY DATE	UNREALIZED APPRECIATION (DEPRECIATION)
$	982,535	CAD	1,000,219	04/01/2010	$	2,271
$	81,421	CHF	86,574	04/01/2010	686
$	929,468	EUR	690,281	04/01/2010	2,866
$	4,814	GBP	3,214	04/01/2010	63
$	966,915	HKD	7,507,417	04/01/2010	6
$	89,420	NZD	126,121	04/01/2010	170
AUD	1,170,439	$	1,072,598	04/01/2010	(1,455		)
BRL	112,833	$	62,702	04/01/2010	(746		)
BRL	180,735	$	100,436	04/01/2010	(1,195		)
BRL	310,044	$	172,679	04/01/2010	(1,665		)
BRL	1,411,357	$	786,052	04/01/2010	(7,581		)
EUR	1,013,496	$	1,368,617	04/01/2010	(269		)
JPY	195,507,068	$	2,112,934	04/01/2010	21,726
MYR	2,364,545	$	722,550	04/01/2010	(2,326		)
MYR	321,298	$	98,181	04/01/2010	(316		)
SGD	182,590	$	130,467	04/01/2010	(52		)
TRY	400,809	$	261,804	04/01/2010	(2,277		)
JPY	148,918,981	$	1,604,039	04/02/2010	11,152
TRY	597,159	$	393,264	04/02/2010	(187		)
$	2,311,372	CAD	2,343,495	04/05/2010	(3,987		)
BRL	1,242,035	$	697,420	04/05/2010	(1,000		)
BRL	107,636	$	59,948	04/05/2010	(578		)
BRL	394,393	$	219,656	04/05/2010	(2,118		)
JPY	31,491,552	$	336,988	04/05/2010	144
MXN	1,959,348	$	157,812	04/05/2010	(663		)
MYR	317,492	$	96,929	04/05/2010	(401		)
SGD	179,952	$	128,579	04/05/2010	(54		)
$	82,059	CHF	86,728	04/06/2010	195
$	238,861	EUR	176,882	04/06/2010	46
$	198,624	EUR	146,998	04/06/2010	(80		)
$	2,687,801	GBP	1,770,387	04/06/2010	(1,245		)
$	89,556	NZD	126,171	04/06/2010	69
AUD	1,183,809	$	1,087,340	04/06/2010	1,018
DKK	357,100	$	64,589	04/06/2010	(199		)
MXN	670,651	$	54,269	04/06/2010	25
NOK	3,637,105	$	607,980	04/06/2010	(3,998		)
SGD	191,029	$	136,565	04/06/2010	14
$	82,495	CHF	86,958	04/07/2010	(23		)
$	129,614	EUR	95,925	04/07/2010	(52		)
$	1,599,388	GBP	1,053,685	04/07/2010	(425		)
$	315,738	HKD	2,451,484	04/07/2010	2
$	88,973	NZD	125,478	04/07/2010	160
AUD	1,066,969	$	978,603	04/07/2010	(501		)
DKK	336,110	$	60,973	04/07/2010	(7		)
NOK	3,911,195	$	658,872	04/07/2010	776
		Net Unrealized Appreciation			$	7,989

Currency Abbreviations:
AUD	Australian Dollar.
BRL	Brazilian Real.
CAD	Canadian Dollar.
CHF	Swiss Franc.
DKK	Danish Krone.
EUR	Euro.
GBP	British Pound.

HKD	Hong Kong Dollar.
JPY	Japanese Yen.
MXN	Mexican New Peso.
MYR	Malaysian Ringgit.
NOK	Norwegian Krone.
NZD	New Zealand Dollar.
SGD	Singapore Dollar.
TRY	Turkish Lira.

Summary of Investments · March 31, 2010 (unaudited)

INDUSTRY	VALUE			PERCENT OF TOTAL INVESTMENTS
Transportation Infrastructure	$	18,912,091		25.0	%
Oil, Gas & Consumable Fuels	15,564,949			20.6
Multi-Utilities	12,151,437			16.0
Gas Utilities	7,034,253			9.3
Electric Utilities	5,688,153			7.5
Investment Company	5,506,909			7.3
Media	3,537,682			4.7
Wireless Telecommunication Services	2,661,572			3.5
Construction & Engineering	2,104,348			2.8
Water Utilities	1,706,386			2.2
Industrial Conglomerates	806,028			1.1
	$	75,673,808	^	100.0	%

^ Does not reflect the value of securities held as collateral on loaned securities. Also does not include open forward foreign currency contracts with net unrealized appreciation of $7,989.

Notes to the Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL			UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)			SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Assets:
Common Stocks
Construction & Engineering	$	2,104,348		$	2,104,348	—			—
Electric Utilities	5,688,153			5,688,153		—			—
Gas Utilities	7,034,253			7,034,253		—			—
Industrial Conglomerates	806,028			806,028		—			—
Media	3,537,682			3,537,682		—			—
Multi-Utilities	12,151,437			12,151,437		—			—
Oil, Gas & Consumable Fuels	15,564,949			15,564,949		—			—
Transportation Infrastructure	18,912,091			18,912,091		—			—
Water Utilities	1,706,386			1,706,386		—			—
Wireless Telecommunication Services	2,661,572			2,661,572		—			—
Total Common Stocks	70,166,899			70,166,899		—			—
Short-Term Investments
Repurchase Agreements	2,347,633			—		$	2,347,633		—
Investment Company	8,165,371			8,165,371		—			—
Total Short-Term Investments	10,513,004			8,165,371		2,347,633			—
Forward Foreign Currency Contracts	41,389			—		41,389			—
Total	$	80,721,292		$	78,332,270	$	2,389,022		—

Liabilities:
Forward Foreign Currency Contracts	$	(33,400	)	—		$	(33,400	)	—

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the Levels as of the end of the period. As of March 31, 2010, securities with a total value of $18,639,495 transferred from Level 2 to Level 1. At December 31, 2009, the fair market value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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 ask 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 ask 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 ask 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 ask 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; (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, which approximates market value.

Morgan Stanley Variable Investment Series - Income Builder Portfolio*

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE
	Common Stocks (72.9%)
	Aerospace & Defense (0.4%)
1,800	General Dynamics Corp.	$	138,960

	Air Freight & Logistics (0.6%)
2,300	FedEx Corp.	214,820

	Automobiles (0.9%)
11,500	Ford Motor Co. (a)	144,555
5,125	Harley-Davidson, Inc.	143,859
		288,414
	Beverages (0.6%)
3,490	Coca-Cola Co. (The)	191,950

	Biotechnology (0.3%)
2,100	Genzyme Corp. (a)	108,843

	Capital Markets (1.6%)
19,133	Charles Schwab Corp. (The)	357,596
3,900	State Street Corp.	176,046
		533,642
	Chemicals (1.3%)
9,900	Dow Chemical Co. (The)	292,743
2,000	PPG Industries, Inc.	130,800
		423,543
	Commercial Banks (4.2%)
7,700	BB&T Corp.	249,403
13,800	Fifth Third Bancorp	187,542
160	First Horizon National Corp. (a)	2,246
8,804	PNC Financial Services Group, Inc.	525,599
5,400	US Bancorp	139,752
10,000	Wells Fargo & Co.	311,200
		1,415,742
	Commercial Services & Supplies (0.9%)
4,200	Avery Dennison Corp. (b)	152,922
5,200	Cintas Corp.	146,068
		298,990
	Communications Equipment (1.1%)
14,814	Cisco Systems, Inc. (a)	385,608

	Computers & Peripherals (2.1%)
14,336	Dell, Inc. (a)	215,184
9,621	Hewlett-Packard Co.	511,356
		726,540
	Diversified Financial Services (6.1%)
37,000	Bank of America Corp.	660,450
55,000	Citigroup, Inc. (a)(c)	222,750
26,511	JPMorgan Chase & Co.	1,186,367
		2,069,567
	Diversified Telecommunication Services (0.7%)
7,839	Verizon Communications, Inc.	243,166

	Electric Utilities (2.9%)
14,357	American Electric Power Co., Inc.	490,722
3,200	Edison International	109,344
2,363	Entergy Corp.	192,230
5,170	FirstEnergy Corp.	202,096
		994,392
	Electronic Equipment, Instruments & Components (0.2%)
1,500	Agilent Technologies, Inc. (a)	51,585

	Energy Equipment & Services (1.3%)
4,740	Schlumberger Ltd. (Netherlands Antilles)	300,800

2,900	Smith International, Inc.	$	124,178
		424,978
	Food & Staples Retailing (3.1%)
9,300	Sysco Corp.	274,350
9,400	Wal-Mart Stores, Inc.	522,640
6,800	Walgreen Co.	252,212
		1,049,202
	Food Products (2.2%)
18,100	Kraft Foods, Inc. (Class A)	547,344
6,060	Unilever N.V. (NY Registered Shares) (Netherlands)	182,770
		730,114
	Health Care Equipment & Supplies (1.0%)
6,950	Covidien PLC (Ireland)	349,446

	Health Care Providers & Services (1.5%)
4,450	Cardinal Health, Inc.	160,333
10,700	UnitedHealth Group, Inc. (a)	349,569
		509,902
	Household Durables (1.0%)
8,530	Sony Corp. (ADR) (Japan)	326,870

	Industrial Conglomerates (4.4%)
46,000	General Electric Co.	837,200
2,770	Siemens AG (ADR) (Germany)	276,917
9,540	Tyco International Ltd. (Switzerland)	364,905
		1,479,022
	Information Technology Services (0.6%)
5,000	Amdocs Ltd. (Guernsey) (a)	150,550
2,222	Western Union Co. (The) (b)	37,685
		188,235
	Insurance (3.9%)
5,524	Chubb Corp.	286,420
32,327	Marsh & McLennan Cos., Inc.	789,425
400	Primerica Inc. (a)	6,000
2,600	Principal Financial Group, Inc.	75,946
2,745	Travelers Cos., Inc. (The)	148,065
		1,305,856
	Internet Software & Services (2.3%)
22,230	eBay, Inc. (a)	599,098
11,500	Yahoo!, Inc. (a)	190,095
		789,193
	Machinery (1.5%)
6,900	Dover Corp.	322,575
5,205	Ingersoll-Rand PLC (Ireland)	181,498
		504,073
	Media (5.4%)
20,640	Comcast Corp. (Class A)	388,445
5,177	Time Warner Cable, Inc.	275,986
14,836	Time Warner, Inc.	463,922
20,143	Viacom, Inc. (Class B) (a)	692,516
		1,820,869
	Metals & Mining (0.9%)
2,300	Freeport-McMoRan Copper & Gold, Inc.	192,142
2,150	Newmont Mining Corp.	109,500
		301,642
	Oil, Gas & Consumable Fuels (8.4%)
8,000	Anadarko Petroleum Corp.	582,640

4,580	BP PLC (ADR) (United Kingdom)	$	261,381
4,008	ConocoPhillips	205,089
3,360	Devon Energy Corp.	216,485
4,660	Exxon Mobil Corp.	312,127
3,797	Hess Corp.	237,502
7,060	Occidental Petroleum Corp.	596,852
7,630	Royal Dutch Shell PLC (ADR) (United Kingdom)	441,472
		2,853,548
	Personal Products (0.4%)
1,940	Estee Lauder Cos., Inc. (The) (Class A)	125,848

	Pharmaceuticals (6.0%)
3,660	Abbott Laboratories	192,809
4,830	Bayer AG (ADR) (Germany)	326,749
16,530	Bristol-Myers Squibb Co.	441,351
10,771	Merck & Co., Inc.	402,297
22,300	Pfizer, Inc.	382,445
6,800	Roche Holding AG (ADR) (Switzerland)	275,638
		2,021,289
	Professional Services (0.9%)
2,940	Manpower, Inc.	167,933
4,500	Robert Half International, Inc.	136,935
		304,868
	Semiconductors & Semiconductor Equipment (1.3%)
12,989	Intel Corp.	289,135
4,137	Lam Research Corp. (a)	154,393
		443,528
	Software (0.0%)
457	Symantec Corp. (a)	7,732

	Specialty Retail (2.0%)
8,800	Gap, Inc. (The)	203,368
14,930	Home Depot, Inc.	482,985
		686,353
	Wireless Telecommunication Services (0.9%)
13,500	Vodafone Group PLC (ADR) (United Kingdom)	314,415
	Total Common Stocks (Cost $21,737,097)	24,622,745

*PRINCIPAL* *AMOUNT IN* *THOUSANDS*			*COUPON* *RATE*	*MATURITY* *DATE*
		*Convertible Bonds (13.4%)*
		Brewery (3.9%)
$	1,200	Molson Coors Brewing Co.	2.50%	07/30/13	1,309,500

		Electric-Integrated (1.5%)
173		PG&E Corp.	9.50	06/30/10	487,211

		Gold Mining (3.8%)
1,000		Newmont Mining Corp.	1.25	07/15/14	1,288,750

		Semiconductors & Semiconductor Equipment (4.2%)
1,450		Intel Corp. (144A) (d)	2.95	12/15/35	1,430,063
		Total Convertible Bonds (Cost $4,170,027)			4,515,524

		Corporate Bonds (10.2%)
		Hotels & Motels (6.4%)
2,000		Starwood Hotels & Resorts Worldwide, Inc.	7.875	05/01/12	2,175,000

		Paper & Related Products (3.8%)
1,237		Buckeye Technologies, Inc.	8.50	10/01/13	1,271,018
		Total Corporate Bonds (Cost $3,371,331)			3,446,018

NUMBER OF SHARES (000)
	Short-Term Investment (e) (1.9%)
	Investment Company
627	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $626,571)			626,571

	Total Investments *(Cost $30,130,066) (f)*	99.5	%	33,603,888
	Other Assets in Excess of Liabilities	0.5		183,948
	Net Assets	100.0	%	$	33,787,836

ADR		American Depositary Receipt.
(a)		Non-income producing security.
(b)		Security purchased on a when-issued basis.
(c)		For the three months ended March 31, 2010, the cost of purchases and the proceeds from sales of Citigroup, Inc. common stock, an affiliate of the Investment Adviser, Administrator and Distributor, was $31,238 and $1,370, respectively, including net realized losses of $29.
(d)		Resale is restricted to qualified institutional investors.
(e)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(f)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is the summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL		UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Assets:
Common Stocks
Aerospace & Defense	$	138,960	$	138,960	—		—
Air Freight & Logistics	214,820		214,820		—		—
Automobiles	288,414		288,414		—		—
Beverages	191,950		191,950		—		—
Biotechnology	108,843		108,843		—		—
Capital Markets	533,642		533,642		—		—
Chemicals	423,543		423,543		—		—
Commercial Banks	1,415,742		1,415,742		—		—
Commercial Services & Supplies	298,990		298,990		—		—
Communications Equipment	385,608		385,608		—		—
Computers & Peripherals	726,540		726,540		—		—
Diversified Financial Services	2,069,567		2,069,567		—		—
Diversified Telecommunication Services	243,166		243,166		—		—
Electric Utilities	994,392		994,392		—		—
Electronic Equipment, Instruments & Components	51,585		51,585		—		—
Energy Equipment & Services	424,978		424,978		—		—
Food & Staples Retailing	1,049,202		1,049,202		—		—
Food Products	730,114		730,114		—		—
Health Care Equipment & Supplies	349,446		349,446		—		—
Health Care Providers & Services	509,902		509,902		—		—
Household Durables	326,870		326,870		—		—
Industrial Conglomerates	1,479,022		1,479,022		—		—
Information Technology Services	188,235		188,235		—		—
Insurance	1,305,856		1,305,856		—		—
Internet Software & Services	789,193		789,193		—		—
Machinery	504,073		504,073		—		—
Media	1,820,869		1,820,869		—		—
Metals & Mining	301,642		301,642		—		—
Oil, Gas & Consumable Fuels	2,853,548		2,853,548		—		—
Personal Products	125,848		125,848		—		—
Pharmaceuticals	2,021,289		2,021,289		—		—
Professional Services	304,868		304,868		—		—
Semiconductors & Semiconductor Equipment	443,528		443,528		—		—
Software	7,732		7,732		—		—
Specialty Retail	686,353		686,353		—		—
Wireless Telecommunication Services	314,415		314,415		—		—
Total Common Stocks	24,622,745		24,622,745		—		—
Corporate Bonds	3,446,018		—		$	3,446,018	—
Convertible Bonds	4,515,524		—		4,515,524		—
Convertible Preferred Stock	393,030		—		393,030		—
Short-Term Investment - Investment Company	626,571		626,571		—		—
Total	$	33,603,888	$	25,249,316	$	8,354,572	—

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 ask 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 ask 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 ask 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 ask 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; (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, which approximates market value.

Morgan Stanley Variable Investment Series - Dividend Growth Portfolio*

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE
	*Common Stocks (99.2%)*
	Aerospace & Defense (3.9%)
24,650	L-3 Communications Holdings, Inc.	$	2,258,680
45,400	Raytheon Co.	2,593,248
66,699	United Technologies Corp.	4,909,713
		9,761,641
	Auto Components (1.4%)
104,500	Johnson Controls, Inc.	3,447,455

	Biotechnology (1.3%)
52,940	Amgen, Inc. (a)	3,163,694

	Capital Markets (2.0%)
29,428	Goldman Sachs Group, Inc. (The)	5,021,300

	Chemicals (1.7%)
46,760	Lubrizol Corp. (The)	4,288,827

	Commercial Banks (2.4%)
191,520	Wells Fargo & Co.	5,960,102

	Commercial Services & Supplies (1.1%)
108,936	Pitney Bowes, Inc.	2,663,485

	Computers & Peripherals (7.3%)
29,440	Apple, Inc. (a)	6,916,339
92,620	Hewlett-Packard Co.	4,922,753
49,510	International Business Machines Corp.	6,349,658
		18,188,750
	Consumer Finance (1.6%)
95,290	American Express Co.	3,931,665

	Diversified Financial Services (1.6%)
90,352	JPMorgan Chase & Co.	4,043,252

	Diversified Telecommunication Services (1.7%)
161,330	AT&T, Inc.	4,168,767

	Electronic Equipment, Instruments & Components (1.4%)
176,810	Corning, Inc.	3,573,330

	Energy Equipment & Services (3.0%)
82,910	Halliburton Co.	2,498,079
58,790	Transocean Ltd. (Switzerland) (a)	5,078,280
		7,576,359
	Gas Utilities (1.2%)
70,660	Questar Corp.	3,052,512

	Health Care Providers & Services (3.2%)
124,230	UnitedHealth Group, Inc.	4,058,594
59,730	WellPoint, Inc. (a)	3,845,418
		7,904,012
	Hotels, Restaurants & Leisure (1.7%)
127,290	Royal Caribbean Cruises Ltd. (Liberia) (a)	4,199,297

	Household Durables (1.1%)
32,630	Whirlpool Corp.	2,846,968

	Household Products (2.9%)
71,940	Kimberly-Clark Corp.	4,523,587
41,234	Procter & Gamble Co. (The)	2,608,875
		7,132,462
	Industrial Conglomerates (2.8%)
385,547	General Electric Co.	7,016,955

	Information Technology Services (1.2%)
53,830	Computer Sciences Corp. (a)	2,933,197

	Insurance (6.2%)
48,130	ACE Ltd. (Switzerland)	2,517,199

91,440	Aflac, Inc.	$	4,964,278
92,865	MetLife, Inc. (b)	4,024,769
74,000	Travelers Cos., Inc. (The)	3,991,560
		15,497,806
	Internet Software & Services (1.9%)
8,561	Google, Inc. (Class A) (a)	4,854,173

	Leisure Equipment & Products (1.8%)
192,470	Mattel, Inc.	4,376,768

	Metals & Mining (1.9%)
56,760	Freeport-McMoRan Copper & Gold, Inc.	4,741,730

	Multi-Utilities (2.5%)
66,920	DTE Energy Co.	2,984,632
110,850	Public Service Enterprise Group, Inc.	3,272,292
		6,256,924
	Multiline Retail (1.7%)
78,870	Target Corp.	4,148,562

	Oil, Gas & Consumable Fuels (8.0%)
43,800	Apache Corp.	4,445,700
62,710	Chevron Corp.	4,755,300
50,570	ConocoPhillips	2,587,667
77,243	Exxon Mobil Corp.	5,173,736
98,780	Marathon Oil Corp.	3,125,399
1	XTO Energy, Inc.	47
		20,087,849
	Paper & Forest Products (1.4%)
144,570	International Paper Co.	3,557,868

	Pharmaceuticals (8.2%)
111,980	Bristol-Myers Squibb Co.	2,989,866
19,325	Johnson & Johnson	1,259,990
155,670	Merck & Co., Inc.	5,814,274
389,567	Pfizer, Inc.	6,681,074
88,610	Watson Pharmaceuticals, Inc. (a)	3,701,240
		20,446,444
	Road & Rail (2.0%)
96,990	CSX Corp.	4,936,791

	Semiconductors & Semiconductor Equipment (2.3%)
260,950	Intel Corp.	5,808,747

	Software (4.0%)
254,197	Microsoft Corp.	7,440,346
101,270	Oracle Corp.	2,601,626
		10,041,972
	Specialty Retail (7.7%)
98,860	Best Buy Co., Inc.	4,205,504
148,210	Gap, Inc. (The)	3,425,133
96,290	Guess?, Inc.	4,523,704
78,610	Ross Stores, Inc.	4,203,277
40,810	Sherwin-Williams Co. (The)	2,762,021
		19,119,639
	Textiles, Apparel & Luxury Goods (1.2%)
37,969	VF Corp.	3,043,215

	Tobacco (3.9%)
171,308	Altria Group, Inc.	3,515,240
121,798	Philip Morris International, Inc.	6,352,984
		9,868,224
	Total Common Stocks (Cost $230,315,366)	247,660,742

NUMBER OF SHARES (000)
	Short-Term Investment (c) (0.7%)
	Investment Company
1,851	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $1,850,516)			$	1,850,516

	Total Investments *(Cost $232,165,882) (d)(e)*	99.9	%	249,511,258
	Total Written Options Outstanding *(premium received $26,849)*	0.0		(5,025		)
	Other Assets in Excess of Liabilities	0.1		232,552
	Net Assets	100.0	%	$	249,738,785

(a)	Non-income producing security.
(b)	For the three months ended March 31, 2010, the proceeds from sales of MetLife, Inc., an affiliate of the Fund, was $906,471 including net realized gains of $163,781.
(c)	The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(d)	Securities have been designated as collateral in connection with options contracts.
(e)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Options Written at March 31, 2010:

NUMBER OF CONTRACTS	DESCRIPTION	STRIKE PRICE		EXPIRATION DATE	PREMIUM		VALUE
75	Goldman Sachs Group Inc (The)	$	180.00	April 2010	$	26,849	$	5,025

Notes to the Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL			UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)			OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)	SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Assets:
Common Stocks
Aerospace & Defense	$	9,761,641		$	9,761,641		—	—
Auto Components	3,447,455			3,447,455			—	—
Biotechnology	3,163,694			3,163,694			—	—
Capital Markets	5,021,300			5,021,300			—	—
Chemicals	4,288,827			4,288,827			—	—
Commercial Banks	5,960,102			5,960,102			—	—
Commercial Services & Supplies	2,663,485			2,663,485			—	—
Computers & Peripherals	18,188,750			18,188,750			—	—
Consumer Finance	3,931,665			3,931,665			—	—
Diversified Financial Services	4,043,252			4,043,252			—	—
Diversified Telecommunication Services	4,168,767			4,168,767			—	—
Electronic Equipment, Instruments & Components	3,573,330			3,573,330			—	—
Energy Equipment & Services	7,576,359			7,576,359			—	—
Gas Utilities	3,052,512			3,052,512			—	—
Health Care Providers & Services	7,904,012			7,904,012			—	—
Hotels, Restaurants & Leisure	4,199,297			4,199,297			—	—
Household Durables	2,846,968			2,846,968			—	—
Household Products	7,132,462			7,132,462			—	—
Industrial Conglomerates	7,016,955			7,016,955			—	—
Information Technology Services	2,933,197			2,933,197			—	—
Insurance	15,497,806			15,497,806			—	—
Internet Software & Services	4,854,173			4,854,173			—	—
Leisure Equipment & Products	4,376,768			4,376,768			—	—
Metals & Mining	4,741,730			4,741,730			—	—
Multi-Utilities	6,256,924			6,256,924			—	—
Multiline Retail	4,148,562			4,148,562			—	—
Oil, Gas & Consumable Fuels	20,087,849			20,087,849			—	—
Paper & Forest Products	3,557,868			3,557,868			—	—
Pharmaceuticals	20,446,444			20,446,444			—	—
Road & Rail	4,936,791			4,936,791			—	—
Semiconductors & Semiconductor Equipment	5,808,747			5,808,747			—	—
Software	10,041,972			10,041,972			—	—
Specialty Retail	19,119,639			19,119,639			—	—
Textiles, Apparel & Luxury Goods	3,043,215			3,043,215			—	—
Tobacco	9,868,224			9,868,224			—	—
Total Common Stocks	247,660,742			247,660,742			—	—
Short-Term Investment - Investment Company	1,850,516			1,850,516			—	—
Total	$	249,511,258		$	249,511,258		—	—

Liabilities:
Options Written	$	(5,025	)	$	(5,025	)	—	—

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 ask 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 ask 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 ask 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) listed options are valued at the latest sale price on the exchange on which they are listed unless no sales of such options have taken place that day, in which case they are valued at the mean between their latest bid and ask price; (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 ask 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. (8) 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 (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, which approximates market value.

Morgan Stanley Variable Investment Series - Global Dividend Growth Portfolio*

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE
	Common Stocks (97.7%)
	*Australia (1.0%)*
	Containers & Packaging
156,360	Amcor Ltd.	$	916,861

	*Austria (0.9%)*
	Diversified Telecommunication Services
57,792	Telekom Austria AG	807,892

	*Finland (0.9%)*
	Metals & Mining
36,338	Rautaruukki Oyj (a)	785,283

	*France (8.4%)*
	Commercial Banks
11,613	BNP Paribas	891,860

	Diversified Telecommunication Services
36,122	France Telecom SA	864,288

	Information Technology Services
18,725	Cap Gemini SA	922,365

	Machinery
5,707	Vallourec SA	1,150,835

	Multi-Utilities
36,053	GDF Suez (a)	1,392,684

	Oil, Gas & Consumable Fuels
26,811	Total SA	1,556,413

	Real Estate Investment Trusts (REITs)
7,697	ICADE	856,735
	Total France	7,635,180

	*Germany (2.6%)*
	Air Freight & Logistics
71,431	Deutsche Post AG (Registered Shares)	1,239,271

	Electric Utilities
30,361	E.ON AG	1,120,935
	Total Germany	2,360,206

	*Greece (1.4%)*
	Commercial Banks
37,740	National Bank of Greece SA (b)	759,510

	Hotels, Restaurants & Leisure
20,060	OPAP SA	455,183
	Total Greece	1,214,693

	*Ireland (3.8%)*
	Construction Materials
86,328	CRH PLC	2,155,926

	Insurance
42,172	Willis Group Holdings PLC	1,319,562
	Total Ireland	3,475,488

	*Israel (0.8%)*
	Diversified Telecommunication Services
243,476	Bezeq Israeli Telecommunication Corp. Ltd.	691,081

	*Italy (1.4%)*
	Oil, Gas & Consumable Fuels
53,900	Eni SpA	1,264,544

	*Japan (11.3%)*
	Commercial Banks
55,200	Sumitomo Mitsui Financial Group, Inc.	1,824,452
53,000	Tokyo Tomin Bank, Ltd. (The)	704,663
		2,529,115

	Electronic Equipment, Instruments & Components
33,334	Hoya Corp.	$	915,981
20,153	TDK Corp.	1,340,803
		2,256,784
	Machinery
107,448	Amada Co., Ltd.	901,051
112,680	Daifuku Co., Ltd. (a)	887,073
37,200	Mori Seiki Co., Ltd. (a)	458,783
		2,246,907
	Office Electronics
40,300	Canon, Inc.	1,866,499

	Software
3,985	Nintendo Co., Ltd.	1,334,159
	Total Japan	10,233,464

	*Netherlands (4.0%)*
	Food Products
30,451	Unilever NV (Share Certificates)	921,081

	Media
145,939	Reed Elsevier NV	1,773,629
42,374	Wolters Kluwer NV	918,872
		2,692,501
	Total Netherlands	3,613,582

	*Singapore (2.0%)*
	Air Freight & Logistics
1,208,000	Singapore Post Ltd.	906,680

	Road & Rail
791,406	ComfortDelgro Corp., Ltd.	882,514
	Total Singapore	1,789,194

	*Switzerland (3.8%)*
	Food Products
17,448	Nestle SA (Registered Shares)	893,581

	Hotels, Restaurants & Leisure
1,663	Kuoni Reisen Holding AG (Registered Shares)	666,367

	Pharmaceuticals
35,457	Novartis AG (Registered Shares)	1,915,095
	Total Switzerland	3,475,043

	*Taiwan (2.7%)*
	Computers & Peripherals
598,000	Acer, Inc.	1,766,245

	Semiconductors & Semiconductor Equipment
40,000	MediaTek, Inc.	693,998
	Total Taiwan	2,460,243

	*United Kingdom (14.9%)*
	Beverages
49,923	Diageo PLC	837,883

	Commercial Banks
85,026	HSBC Holdings PLC	861,898

	Electric Utilities
46,827	Scottish & Southern Energy PLC	782,369

	Insurance
221,701	Prudential PLC	1,841,957

	Media
157,674	Informa PLC	926,692

	Metals & Mining
20,802	BHP Billiton PLC	$	713,414

	Oil, Gas & Consumable Fuels
75,231	Royal Dutch Shell PLC (Class A)	2,180,509

	Pharmaceuticals
60,133	GlaxoSmithKline PLC	1,154,789

	Tobacco
79,705	British American Tobacco PLC	2,747,427

	Wireless Telecommunication Services
632,258	Vodafone Group PLC	1,458,363
	Total United Kingdom	13,505,301

	*United States (37.8%)*
	Capital Markets
56,978	Bank of New York Mellon Corp. (The)	1,759,481
5,430	Goldman Sachs Group, Inc. (The)	926,521
		2,686,002
	Chemicals
50,236	EI Du Pont de Nemours & Co.	1,870,789

	Commercial Services & Supplies
26,018	Avery Dennison Corp.	947,315

	Computers & Peripherals
33,245	Diebold, Inc.	1,055,861

	Containers & Packaging
36,868	Bemis Co., Inc.	1,058,849
30,266	Sonoco Products Co.	931,890
		1,990,739
	Diversified Financial Services
21,275	JPMorgan Chase & Co.	952,056
49,805	Moody’s Corp.	1,481,699
		2,433,755
	Diversified Telecommunication Services
37,822	AT&T, Inc.	977,320
58,988	Verizon Communications, Inc.	1,829,808
		2,807,128
	Electric Utilities
20,943	Allete, Inc.	701,172

	Food Products
49,199	Kraft Foods, Inc. (Class A)	1,487,778
13,268	Mead Johnson Nutrition Co.	690,334
		2,178,112
	Household Products
14,479	Procter & Gamble Co. (The)	916,086

	Machinery
10,916	Caterpillar, Inc.	686,071

	Media
26,248	McGraw-Hill Cos., Inc. (The)	935,741

	Multiline Retail
51,224	JC Penney Co., Inc.	1,647,876

	Pharmaceuticals
95,547	Bristol-Myers Squibb Co.	2,551,105
23,299	Eli Lilly & Co.	843,890
		3,394,995
	Real Estate Investment Trusts (REITs)
42,216	Potlatch Corp. (a)	1,479,249

	Semiconductors & Semiconductor Equipment
61,929	Intel Corp.	$	1,378,539
73,836	Texas Instruments, Inc.	1,806,767
		3,185,306
	Tobacco
68,722	Philip Morris International, Inc.	3,584,539
31,413	Reynolds American, Inc.	1,695,674
		5,280,213
	Total United States	34,196,410
	Total Common Stocks (Cost $74,551,659)	88,424,465

PRINCIPAL AMOUNT IN THOUSANDS
		Short-Term Investments (2.8%)
		*Securities Held as Collateral on Loaned Securities (1.8%)*
		Repurchase Agreements (0.8%)
$	70	Bank of America Securities LLC (0.02%, dated 03/31/10, due 04/01/10; proceeds $69,722; fully collateralized by a U.S. Government Agency security at the date of this Portfolio of Investments as follows: Federal Home Loan Mortgage Corp. 5.50% due 12/15/32; valued at $71,116)	69,722
391		Barclays Capital (0.37%, dated 03/31/10, due 04/01/10; proceeds $390,865; fully collateralized by common stock at the date of this Portfolio Investment as follows: Westar Energy, Inc., Visa, Inc., United Technologies Corp., Symetra Financial Corp., Symantec Corp., Sempra Energy, Seattle Genetics, Inc., North American Energy Partners, Inc., Noble Energy, Inc., McMoRan Exploration Co., Ivanhoe Mines Ltd., American Electric Power Co., Inc., Altera Corp., Transocean Ltd.; valued at $410,405)	390,861
313		ING (0.02%, dated 03/31/10, due 04/01/10; proceeds $312,689; fully collateralized by U.S. Government Agency securities at the date of this Portfolio of Investments as follows: Federal National Mortgage Association 5.00% due 10/01/39 - 11/01/39; valued at $318,955)	312,689
		Total Repurchase Agreements (Cost $773,272)	773,272

NUMBER OF SHARES (000)
	Investment Company (c) (1.0%)
876	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $875,654)			875,654

	Total Securities Held as Collateral on Loaned Securities (Cost $1,648,926)			1,648,926

	Investment Company (c) (1.0%)
917	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $917,157)			917,157

	Total Short-Term Investments (Cost $2,566,083)			2,566,083

	Total Investments *(Cost $77,117,742) (d)(e)*	100.5	%	90,990,548
	Liabilities in Excess of Other Assets	(0.5	)	(482,881		)
	Net Assets	100.0	%	$	90,507,667

(a)		The value of loaned securities and related collateral outstanding at March 31, 2010 were $1,560,547 and $1,648,926, respectively. The Fund received cash collateral of $1,648,926 which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class as reported in the Portfolio of Investments. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.
(b)		Non-income producing security.

(c)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(d)		Securities have been designated as collateral in connection with open forward foreign currency contracts.
(e)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Forward Foreign Currency Contracts Open at March 31, 2010:

CONTRACTS TO DELIVER			IN EXCHANGE FOR	DELIVERY DATE	UNREALIZED APPRECIATION (DEPRECIATION)
CHF	26,676	$	25,107	04/01/2010	(193		)
EUR	95,176	$	128,221	04/01/2010	(329		)
GBP	66,630	$	100,365	04/01/2010	(746		)
JPY	6,040,361	$	64,617	04/05/2010	8
SGD	19,111	$	13,649	04/05/2010	(12		)
AUD	7,225	$	6,618	04/06/2010	(13		)
$	4,287,888	EUR	3,203,000	04/08/2010	38,274
$	2,600,552	GBP	1,748,000	04/08/2010	51,896
EUR	3,203,000	$	4,375,042	04/08/2010	48,880
GBP	1,748,000	$	2,629,342	04/08/2010	(23,106		)
EUR	3,367,000	$	4,507,403	05/06/2010	(40,397		)
GBP	1,811,000	$	2,693,772	05/06/2010	(53,814		)
		Net Unrealized Appreciation			$	20,448

Currency Abbreviations:

AUD		Australian Dollar.
CHF		Swiss Franc.
EUR		Euro.
GBP		British Pound.
JPY		Japanese Yen.
SGD		Singapore Dollar.

Summary of Investments · March 31, 2010 (unaudited)

INDUSTRY	VALUE			PERCENT OF TOTAL INVESTMENTS

Tobacco	$	8,027,640		9.0	%
Pharmaceuticals	6,464,879			7.2
Diversified Telecommunication Services	5,170,389			5.8
Commercial Banks	5,042,383			5.6
Oil, Gas & Consumable Fuels	5,001,466			5.6
Media	4,554,934			5.1
Machinery	4,083,813			4.6
Food Products	3,992,774			4.5
Semiconductors & Semiconductor Equipment	3,879,304			4.3
Insurance	3,161,519			3.5
Containers & Packaging	2,907,600			3.3
Computers & Peripherals	2,822,106			3.2
Capital Markets	2,686,002			3.0
Electric Utilities	2,604,476			2.9
Diversified Financial Services	2,433,755			2.7
Real Estate Investment Trusts (REITs)	2,335,984			2.6
Electronic Equipment, Instruments & Components	2,256,784			2.5
Construction Materials	2,155,926			2.4
Air Freight & Logistics	2,145,951			2.4
Chemicals	1,870,789			2.1
Office Electronics	1,866,499			2.1
Multiline Retail	1,647,876			1.9
Metals & Mining	1,498,697			1.7
Wireless Telecommunication Services	1,458,363			1.6
Multi-Utilities	1,392,684			1.6
Software	1,334,159			1.5
Hotels, Restaurants & Leisure	1,121,550			1.3
Commercial Services & Supplies	947,315			1.1
Information Technology Services	922,365			1.0
Investment Company	917,157			1.0
Household Products	916,086			1.0
Road & Rail	882,514			1.0
Beverages	837,883			0.9
	$	89,341,622	+^	100.0	%

+	Does not reflect value of securities held as collateral on loaned securities.

^	Does not include open forward foreign currency contracts with net unrealized appreciation of $20,448.

Notes to the Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 – unadjusted 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. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL			UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)			SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Assets:
Common Stocks
Air Freight & Logistics	$	2,145,951		$	2,145,951	—			—
Beverages	837,883			837,883		—			—
Capital Markets	2,686,002			2,686,002		—			—
Chemicals	1,870,789			1,870,789		—			—
Commercial Banks	5,042,383			5,042,383		—			—
Commercial Services & Supplies	947,315			947,315		—			—
Computers & Peripherals	2,822,106			2,822,106		—			—
Construction Materials	2,155,926			2,155,926		—			—
Containers & Packaging	2,907,600			2,907,600		—			—
Diversified Financial Services	2,433,755			2,433,755		—			—
Diversified Telecommunication Services	5,170,389			5,170,389		—			—
Electric Utilities	2,604,476			2,604,476		—			—
Electronic Equipment, Instruments & Components	2,256,784			2,256,784		—			—
Food Products	3,992,774			3,992,774		—			—
Hotels, Restaurants & Leisure	1,121,550			1,121,550		—			—
Household Products	916,086			916,086		—			—
Information Technology Services	922,365			922,365		—			—
Insurance	3,161,519			3,161,519		—			—
Machinery	4,083,813			4,083,813		—			—
Media	4,554,934			4,554,934		—			—
Metals & Mining	1,498,697			1,498,697		—			—
Multi-Utilities	1,392,684			1,392,684		—			—
Multiline Retail	1,647,876			1,647,876		—			—
Office Electronics	1,866,499			1,866,499		—			—
Oil, Gas & Consumable Fuels	5,001,466			5,001,466		—			—
Pharmaceuticals	6,464,879			6,464,879		—			—
Real Estate Investment Trusts (REITs)	2,335,984			2,335,984		—			—
Road & Rail	882,514			882,514		—			—
Semiconductors & Semiconductor Equipment	3,879,304			3,879,304		—			—
Software	1,334,159			1,334,159		—			—
Tobacco	8,027,640			8,027,640		—			—
Wireless Telecommunication Services	1,458,363			1,458,363		—			—
Total Common Stocks	88,424,465			88,424,465		—			—
Short-Term Investments
Repurchase Agreements	773,272			—		773,272			—
Investment Company	1,792,811			1,792,811		—			—
Total Short-Term Investments	2,566,083			1,792,811		773,272			—
Forward Foreign Currency Contracts	139,058			—		139,058			—
Total	$	91,129,606		$	90,217,276	$	912,330		—

Liabilities:
Forward Foreign Currency Contracts	$	(118,610	)	—		$	(118,610	)	—

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the Levels as of the end of the period. As of March 31, 2010, securities with a total value of $49,224,678 transferred from Level 2 to Level 1. At December 31, 2009, the fair market value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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 ask 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 ask 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 ask 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 ask 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. (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, which approximates market value.

Morgan Stanley Variable Investment Series - European Equity Portfolio

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE
	Common Stocks (97.1%)
	*Belgium (1.8%)*
	Chemicals
38,011	Umicore	$	1,327,392

	*Finland (1.0%)*
	Machinery
17,939	Kone Oyj (Class B)	741,421

	*France (10.9%)*
	Commercial Banks
27,587	BNP Paribas	2,118,637
27,012	Societe Generale	1,698,876
		3,817,513
	Electrical Equipment
15,131	Schneider Electric SA (a)	1,774,732

	Hotels, Restaurants & Leisure
20,427	Accor SA	1,130,082

	Multi-Utilities
39,724	GDF Suez (a)	1,534,491
	Total France	8,256,818

	*Germany (15.1%)*
	Automobiles
33,057	Daimler AG	1,556,230

	Diversified Telecommunication Services
90,140	Deutsche Telecom AG (Registered Shares)	1,221,744

	Industrial Conglomerates
22,607	Siemens AG (Registered Shares)	2,264,120

	Insurance
13,943	Allianz SE (Registered Shares) (a)	1,748,195
8,676	Muenchener Rueckversicherungs AG (Registered Shares) (a)	1,407,955
		3,156,150
	Machinery
16,329	MAN SE (a)	1,366,962

	Pharmaceuticals
27,801	Bayer AG (a)	1,880,486
	Total Germany	11,445,692

	*Greece (1.3%)*
	Commercial Banks
48,550	National Bank of Greece SA (b)	977,059

	*Italy (2.4%)*
	Oil, Gas & Consumable Fuels
77,706	Eni SpA	1,823,055

	*Luxembourg (2.4%)*
	Metals & Mining
41,305	ArcelorMittal (a)	1,812,582

	*Netherlands (1.8%)*
	Diversified Telecommunication Services
87,982	Koninklijke KPN NV (a)	1,393,918

	*Portugal (1.2%)*
	Oil, Gas & Consumable Fuels
52,719	Galp Energia SGPS SA (Class B)	915,700

	*Spain (1.9%)*
	Commercial Banks
104,840	Banco Bilbao Vizcaya Argentaria SA (a)	1,434,434

	*Switzerland (13.2%)*
	Capital Markets
1	UBS AG (Registered Shares) (b)	12

	Food Products
69,525	Nestle SA (Registered Shares)	$	3,560,651

	Insurance
6,408	Zurich Financial Services AG	1,642,718

	Pharmaceuticals
40,796	Novartis AG (Registered Shares)	2,203,464
15,782	Roche Holding AG	2,559,486
		4,762,950
	Total Switzerland	9,966,331

	*United Kingdom (42.0%)*
	Aerospace & Defense
219,003	BAE Systems PLC	1,233,965
140,204	Rolls-Royce Group PLC (b)	1,266,980
		2,500,945
	Commercial Banks
386,546	Barclays PLC	2,113,456
298,126	HSBC Holdings PLC	3,022,067
		5,135,523
	Diversified Telecommunication Services
409,407	TalkTalk Telecom Group PLC (b)	801,443

	Food & Staples Retailing
229,362	Tesco PLC	1,515,610
280,083	WM Morrison Supermarkets PLC	1,247,449
		2,763,059
	Health Care Equipment & Supplies
78,630	SSL International PLC	970,078

	Insurance
132,357	Prudential PLC	1,099,661

	Media
110,221	Reed Elsevier PLC	878,951

	Metals & Mining
50,150	Anglo American PLC (b)	2,187,185

	Oil, Gas & Consumable Fuels
119,573	BG Group PLC	2,069,456
81,620	Royal Dutch Shell PLC (Class A)	2,365,689
56,505	Tullow Oil PLC (b)	1,071,827
		5,506,972
	Pharmaceuticals
106,096	GlaxoSmithKline PLC	2,037,459

	Specialty Retail
166,826	Carphone Warehouse Group PLC (b)	403,786
2,236,469	DSG International PLC (a)(b)	1,186,145
		1,589,931
	Tobacco
58,811	British American Tobacco PLC	2,027,212
55,524	Imperial Tobacco Group PLC	1,693,575
		3,720,787
	Wireless Telecommunication Services
1,099,824	Vodafone Group PLC	2,536,849
	Total United Kingdom	31,728,843

	*United States (2.1%)*
	Auto Components
31,408	Autoliv, Inc. (SDR) (a)(b)	1,624,642
	Total Common Stocks (Cost $66,771,697)	73,447,887

PRINCIPAL AMOUNT IN THOUSANDS
		Short-Term Investments (17.2%)
		Securities Held as Collateral on Loaned Securities (16.1%)
		Repurchase Agreements (7.6%)
$	514	Bank of America Securities LLC (0.02%, dated 03/31/10, due 04/01/10; proceeds $513,551; fully collateralized by a U.S. Government Agency security at the date of this Portfolio of Investments as follows: Federal Home Loan Mortgage Corp. 5.50% due 12/15/32; valued at $523,822)	513,551
2,879		Barclays Capital (0.37%, dated 03/31/10, due 04/01/10; proceeds $2,879,001; fully collateralized by common stock at the date of this Portfolio Investment as follows: Westar Energy, Inc., Visa, Inc., United Technologies Corp., Symetra Financial Corp., Symantec Corp., Sempra Energy, Seattle Genetics, Inc., North American Energy Partners, Inc., Noble Energy, Inc., McMoRan Exploration Co., Ivanhoe Mines Ltd., American Electric Power Co., Inc., Altera Corp., Transocean Ltd.; valued at $3,022,923)	2,878,972
2,303		ING (0.02%, dated 03/31/10, due 04/01/10; proceeds $2,303,179; fully collateralized by U.S. Government Agency securities at the date of this Portfolio of Investments as follows: Federal National Mortgage Association 5.00% due 10/01/39 - 11/01/39; valued at $2,349,332)	2,303,177
		Total Repurchase Agreements (Cost $5,695,700)	5,695,700

NUMBER OF SHARES (000)
		Investment Company (c) (8.5%)
	6,450	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $6,449,818)			6,449,818

		Total Securities Held as Collateral on Loaned Securities (Cost $12,145,518)			12,145,518
		Investment Company (c) (1.1%)
842		Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $841,616)			841,616
		Total Short-Term Investments (Cost $12,987,134)			12,987,134

		Total Investments *(Cost $81,063,157) (d)*	116.0	%	87,683,217
		Liabilities in Excess of Other Assets	(16.0	)	(12,077,729		)
		Net Assets	100.0	%	$	75,605,488

SDR		Swedish Depositary Receipt.
(a)		The value of loaned securities and related collateral outstanding at March 31, 2010 were $11,605,629 and $12,145,518, respectively. The Fund received cash collateral of $12,145,518 which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class as reported in the Portfolio of Investments. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.
(b)		Non-income producing security.
(c)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(d)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Summary of Investments · March 31, 2010 (unaudited)

INDUSTRY	VALUE			PERCENT OF TOTAL INVESTMENTS

Commercial Banks	$	11,364,529		15.0	%
Pharmaceuticals	8,680,895			11.5
Oil, Gas & Consumable Fuels	8,245,727			10.9
Insurance	5,898,529			7.8
Metals & Mining	3,999,767			5.3
Tobacco	3,720,787			4.9
Food Products	3,560,651			4.7
Diversified Telecommunication Services	3,417,105			4.5
Food & Staples Retailing	2,763,059			3.7
Wireless Telecommunication Services	2,536,849			3.4
Aerospace & Defense	2,500,945			3.3
Industrial Conglomerates	2,264,120			3.0
Health Care Equipment & Supplies	2,218,274			2.9
Machinery	2,108,383			2.8
Electrical Equipment	1,774,732			2.3
Auto Components	1,624,642			2.2
Specialty Retail	1,589,931			2.1
Automobiles	1,556,230			2.1
Multi-Utilities	1,534,491			2.0
Chemicals	1,327,392			1.8
Hotels, Restaurants & Leisure	1,130,082			1.5
Media	878,951			1.2
Investment Company	841,616			1.1
Capital Markets	12			—
	$	75,537,699	+	100.0	%

+	Does not reflect value of securities held as collateral on loaned securities.

Notes to Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

Financial Accounting Standards Board Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures (ASC 820) (formerly known as FAS 157), defines fair value 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. ASC 820 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 – unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL		UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Common Stocks
Aerospace & Defense	$	2,500,945	$	2,500,945	—		—
Auto Components	1,624,642		1,624,642		—		—
Automobiles	1,556,230		1,556,230		—		—
Capital Markets	12		12		—		—
Chemicals	1,327,392		1,327,392		—		—
Commercial Banks	11,364,529		11,364,529		—		—
Diversified Telecommunication Services	3,417,105		3,417,105		—		—
Electrical Equipment	1,774,732		1,774,732		—		—
Food & Staples Retailing	2,763,059		2,763,059		—		—
Food Products	3,560,651		3,560,651		—		—
Health Care Equipment & Supplies	970,078		970,078		—		—
Hotels, Restaurants & Leisure	1,130,082		1,130,082		—		—
Industrial Conglomerates	2,264,120		2,264,120		—		—
Insurance	5,898,529		5,898,529		—		—
Machinery	2,108,383		2,108,383		—		—
Media	878,951		878,951		—		—
Metals & Mining	3,999,767		3,999,767		—		—
Multi-Utilities	1,534,491		1,534,491		—		—
Oil, Gas & Consumable Fuels	8,245,727		8,245,727		—		—
Pharmaceuticals	8,680,895		8,680,895		—		—
Specialty Retail	1,589,931		1,589,931		—		—
Tobacco	3,720,787		3,720,787		—		—
Wireless Telecommunication Services	2,536,849		2,536,849		—		—
Total Common Stocks	73,447,887		73,447,887		—		—
Preferred Stock	1,248,196		1,248,196		—		—
Short-Term Investments
Repurchase Agreements	5,695,700		—		5,695,700		—
Investment Company	7,291,434		7,291,434		—		—
Total Short-Term Investments	12,987,134		7,291,434		5,695,700		—
Total	$	87,683,217	$	81,987,517	$	5,695,700	—

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the Levels as of the end of the period. As of March 31, 2010, securities with a total value of $69,541,050 transferred from Level 2 to Level 1. At December 31, 2009, the fair market value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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 ask 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 ask 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 ask 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 ask 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. (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, which approximates market value.

Morgan Stanley Variable Investment Series - Capital Opportunities Portfolio

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE
	Common Stocks (95.2%)
	Air Freight & Logistics (2.1%)
154,010	Expeditors International of Washington, Inc.	$	5,686,049

	Capital Markets (3.7%)
118,634	Greenhill & Co., Inc.	9,738,665

	Chemicals (3.5%)
129,255	Monsanto Co.	9,231,392

	Computers & Peripherals (9.9%)
81,128	Apple, Inc. (a)	19,059,401
243,274	Teradata Corp. (a)	7,028,186
		26,087,587
	Distributors (3.7%)
2,010,000	Li & Fung Ltd. (Bermuda) (b)	9,889,171

	Diversified Financial Services (7.1%)
756,374	BM&F Bovespa SA (Brazil)	5,074,115
224,821	Leucadia National Corp. (a)	5,577,809
223,158	MSCI, Inc. (Class A) (a)	8,056,004
		18,707,928
	Health Care Technology (2.4%)
170,087	athenahealth, Inc. (a)	6,218,381

	Hotels, Restaurants & Leisure (6.9%)
252,960	Ctrip.com International Ltd. (ADR) (Cayman Islands) (a)	9,916,032
110,514	Wynn Resorts Ltd.	8,380,277
		18,296,309
	Information Technology Services (6.3%)
41,006	Mastercard, Inc. (Class A)	10,415,524
336,599	Redecard SA (Brazil)	6,227,181
		16,642,705
	Internet & Catalog Retail (6.9%)
133,873	Amazon.com, Inc. (a)	18,170,582

	Internet Software & Services (17.9%)
22,067	Baidu, Inc. (ADR) (Cayman Islands) (a)	13,173,999
30,676	Google, Inc. (Class A) (a)	17,393,599
838,300	Tencent Holdings Ltd. (Cayman Islands) (b)	16,821,604
		47,389,202
	Life Sciences Tools & Services (5.1%)
181,201	Illumina, Inc. (a)	7,048,719
102,339	Techne Corp.	6,517,971
		13,566,690
	Oil, Gas & Consumable Fuels (5.8%)
127,706	Range Resources Corp.	5,985,580
200,051	Ultra Petroleum Corp. (Canada) (a)	9,328,378
		15,313,958
	Professional Services (5.0%)
147,773	CoStar Group, Inc. (a)	6,135,535
246,957	Verisk Analytics, Inc. (Class A) (a)	6,964,187
		13,099,722
	Real Estate Management & Development (3.8%)
391,554	Brookfield Asset Management, Inc. (Class A) (Canada)	9,953,303

	Semiconductors & Semiconductor Equipment (2.0%)
262,522	Tessera Technologies, Inc. (a)	5,323,946

	Software (3.1%)
111,709	Salesforce.com, Inc. (a)	8,316,735
	Total Common Stocks (Cost $201,194,052)	251,632,325

NUMBER OF SHARES (000)
	Short-Term Investment (e) (4.8%)
	Investment Company
12,735	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $12,735,129)			12,735,129

	Total Investments *(Cost $215,394,996) (f)*	100.6	%	265,833,269
	Liabilities in Excess of Other Assets	(0.6	)	(1,648,933		)
	Net Assets	100.0	%	$	264,184,336

ADR		American Depositary Receipt.
(a)		Non-income producing security.
(b)		Security trades on a Hong Kong exchange.
(c)		Securities with a total market value equal to $1,465,815 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. Such fair value measurements may be Level 2 measurements if observable inputs are available.
(d)		Illiquid security. Resale is restricted to qualified institutional investors.
(e)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(f)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL		UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)	SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)

Assets:
Common Stocks
Air Freight & Logistics	$	5,686,049	$	5,686,049	—	—
Capital Markets	9,738,665		9,738,665		—	—
Chemicals	9,231,392		9,231,392		—	—
Computers & Peripherals	26,087,587		26,087,587		—	—
Distributors	9,889,171		9,889,171		—	—
Diversified Financial Services	18,707,928		18,707,928		—	—
Health Care Technology	6,218,381		6,218,381		—	—
Hotels, Restaurants & Leisure	18,296,309		18,296,309		—	—
Information Technology Services	16,642,705		16,642,705		—	—
Internet & Catalog Retail	18,170,582		18,170,582		—	—
Internet Software & Services	47,389,202		47,389,202		—	—
Life Sciences Tools & Services	13,566,690		13,566,690		—	—
Oil, Gas & Consumable Fuels	15,313,958		15,313,958		—	—
Professional Services	13,099,722		13,099,722		—	—
Real Estate Management & Development	9,953,303		9,953,303		—	—
Semiconductors & Semiconductor Equipment	5,323,946		5,323,946		—	—
Software	8,316,735		8,316,735		—	—
Total Common Stocks	251,632,325		251,632,325		—	—
Convertible Preferred Stocks	1,465,815		—		—	$	1,465,815
Short-Term Investment - Investment Company	12,735,129		12,735,129		—	—
Total	$	265,833,269	$	264,367,454	—	$	1,465,815

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the Levels as of the end of the period. As of March 31, 2010, securities with a total value of $38,012,071 transferred from Level 2 to Level 1. At December 31, 2009, the fair market value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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

	INVESTMENTS IN SECURITIES
Beginning Balance	$	—
Net purchases (sales)	1,465,815
Amortization of discount	—
Transfers in	—
Transfers out	—
Change in unrealized appreciation/depreciation	—
Realized gains (losses)	—
Ending Balance	$	1,465,815

Net change in unrealized appreciation/depreciation from investments still held as of March 31, 2010	$	—

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 ask 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 ask 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 ask 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 ask 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; (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, which approximates market value.

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

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE
	*Common Stocks (99.3%)*
	Aerospace & Defense (2.9%)
9,297	Boeing Co. (The)	$	675,055
4,720	General Dynamics Corp.	364,384
1,380	Goodrich Corp.	97,318
9,536	Honeywell International, Inc.	431,695
2,071	ITT Corp.	111,026
1,350	L-3 Communications Holdings, Inc.	123,700
4,065	Lockheed Martin Corp.	338,289
3,716	Northrop Grumman Corp.	243,658
1,713	Precision Castparts Corp.	217,054
4,701	Raytheon Co.	268,521
1,767	Rockwell Collins, Inc.	110,597
11,591	United Technologies Corp.	853,214
		3,834,511
	Air Freight & Logistics (1.0%)
1,940	C.H. Robinson Worldwide, Inc.	108,349
2,313	Expeditors International of Washington, Inc.	85,396
4,049	FedEx Corp.	378,176
12,231	United Parcel Service, Inc. (Class B)	787,799
		1,359,720
	Airlines (0.1%)
8,393	Southwest Airlines Co.	110,955

	Auto Components (0.2%)
3,407	Goodyear Tire & Rubber Co. (The) (a)	43,065
8,390	Johnson Controls, Inc.	276,786
		319,851
	Automobiles (0.5%)
41,217	Ford Motor Co. (a)	518,098
3,288	Harley-Davidson, Inc.	92,294
		610,392
	Beverages (2.5%)
1,385	Brown-Forman Corp. (Class B)	82,338
28,851	Coca-Cola Co. (The)	1,586,805
3,510	Coca-Cola Enterprises, Inc.	97,087
2,749	Constellation Brands, Inc. (Class A) (a)	45,194
2,830	Dr Pepper Snapple Group, Inc.	99,531
2,102	Molson Coors Brewing Co. (Class B)	88,410
20,269	PepsiCo, Inc.	1,340,997
		3,340,362
	Biotechnology (1.5%)
12,045	Amgen, Inc. (a)	719,809
3,166	Biogen Idec, Inc. (a)	181,602
5,691	Celgene Corp. (a)	352,615
967	Cephalon, Inc. (a)	65,543
3,307	Genzyme Corp. (a)	171,402
11,309	Gilead Sciences, Inc. (a)	514,333
		2,005,304
	Building Products (0.1%)
5,082	Masco Corp.	78,873

	Capital Markets (2.7%)
3,059	Ameriprise Financial, Inc.	138,756
15,304	Bank of New York Mellon Corp. (The)	472,588
11,768	Charles Schwab Corp. (The)	219,944
12,787	ETrade Financial Corp. (a)*	21,099
1,251	Federated Investors, Inc. (Class B)	33,001
1,885	Franklin Resources, Inc.	209,046
6,516	Goldman Sachs Group, Inc. (The)	1,111,825

5,436	Invesco Ltd. (Bermuda)	$	119,103
2,229	Janus Capital Group, Inc.	31,852
2,004	Legg Mason, Inc.	57,455
17,449	Morgan Stanley (b)	511,081
3,149	Northern Trust Corp.	174,014
6,078	State Street Corp.	274,361
3,150	T. Rowe Price Group, Inc.	173,029
		3,547,154
	Chemicals (1.9%)
2,602	Air Products & Chemicals, Inc.	192,418
1,095	Airgas, Inc.	69,664
669	CF Industries Holdings, Inc.	61,000
14,076	Dow Chemical Co. (The)	416,227
1,024	Eastman Chemical Co.	65,208
2,912	Ecolab, Inc.	127,982
11,249	EI Du Pont de Nemours & Co.	418,913
990	FMC Corp.	59,935
1,111	International Flavors & Fragrances, Inc.	52,961
6,988	Monsanto Co.	499,083
1,916	PPG Industries, Inc.	125,306
3,729	Praxair, Inc.	309,507
1,288	Sigma-Aldrich Corp.	69,114
		2,467,318
	Commercial Banks (3.1%)
8,796	BB&T Corp.	284,902
2,125	Comerica, Inc.	80,835
9,750	Fifth Third Bancorp	132,502
3,159	First Horizon National Corp. (a)	44,389
6,648	Huntington Bancshares, Inc.	35,700
10,036	KeyCorp	77,779
1,090	M&T Bank Corp.	86,524
4,933	Marshall & Ilsley Corp.	39,711
6,313	PNC Financial Services Group, Inc.	376,888
13,934	Regions Financial Corp.	109,382
6,261	SunTrust Banks, Inc.	167,732
23,510	US Bancorp	608,439
64,452	Wells Fargo & Co.	2,005,738
1,629	Zions BanCorp.	35,545
		4,086,066
	Commercial Services & Supplies (0.5%)
1,501	Avery Dennison Corp.	54,652
1,855	Cintas Corp.	52,107
2,538	Iron Mountain, Inc.	69,541
2,911	Pitney Bowes, Inc.	71,174
3,648	Republic Services, Inc.	105,865
2,895	RR Donnelley & Sons Co.	61,808
1,208	Stericycle, Inc. (a)	65,836
6,075	Waste Management, Inc.	209,162
		690,145
	Communications Equipment (2.5%)
71,728	Cisco Systems, Inc. (a)	1,867,080
1,901	Harris Corp.	90,279
3,104	JDS Uniphase Corp. (a)	38,893
6,576	Juniper Networks, Inc. (a)	201,752
30,087	Motorola, Inc. (a)	211,211
20,870	QUALCOMM, Inc.	876,331
5,620	Tellabs, Inc.	42,543
		3,328,089

	Computers & Peripherals (5.7%)
11,364	Apple, Inc. (a)	$	2,669,744
20,903	Dell, Inc. (a)	313,754
26,219	EMC Corp. (a)	472,991
29,521	Hewlett-Packard Co.	1,569,041
16,166	International Business Machines Corp.	2,073,289
1,107	Lexmark International, Inc. (Class A) (a)	39,941
3,911	NetApp, Inc. (a)	127,342
1,806	QLogic Corp. (a)	36,662
3,192	SanDisk Corp. (a)	110,539
2,485	Teradata Corp. (a)	71,792
3,115	Western Digital Corp. (a)	121,454
		7,606,549
	Construction & Engineering (0.2%)
2,030	Fluor Corp.	94,415
1,735	Jacobs Engineering Group, Inc. (a)	78,405
2,726	Quanta Services, Inc. (a)	52,230
		225,050
	Construction Materials (0.1%)
1,555	Vulcan Materials Co.	73,458

	Consumer Finance (0.8%)
14,762	American Express Co.	609,080
5,850	Capital One Financial Corp.	242,249
6,777	Discover Financial Services	100,977
6,599	SLM Corp. (a)	82,619
		1,034,925
	Containers & Packaging (0.2%)
1,336	Ball Corp.	71,316
1,407	Bemis Co., Inc.	40,409
2,356	Owens-Illinois, Inc. (a)	83,732
1,855	Pactiv Corp. (a)	46,709
2,229	Sealed Air Corp.	46,987
		289,153
	Distributors (0.1%)
2,251	Genuine Parts Co.	95,082

	Diversified Consumer Services (0.2%)
1,504	Apollo Group, Inc. (Class A) (a)	92,180
851	DeVry, Inc.	55,485
4,786	H&R Block, Inc.	85,191
		232,856
	Diversified Financial Services (4.6%)
125,264	Bank of America Corp.	2,235,960
246,980	Citigroup, Inc. (a)(c)	1,000,269
849	CME Group, Inc.	268,377
1,020	IntercontinentalExchange, Inc. (a)	114,424
49,676	JPMorgan Chase & Co.	2,223,001
2,499	Leucadia National Corp. (a)	62,000
2,743	Moody’s Corp.	81,604
1,922	NASDAQ OMX Group, Inc. (The) (a)	40,593
2,810	NYSE Euronext	83,204
		6,109,432
	Diversified Telecommunication Services (2.5%)
74,357	AT&T, Inc.	1,921,385
3,490	CenturyTel, Inc.	123,755
4,396	Frontier Communications Corp.	32,706
20,687	Qwest Communications International, Inc.	107,986
35,601	Verizon Communications, Inc.	1,104,343

6,205	Windstream Corp.	$	67,573
		3,357,748
	Electric Utilities (1.8%)
2,387	Allegheny Energy, Inc.	54,901
5,820	American Electric Power Co., Inc.	198,928
16,225	Duke Energy Corp.	264,792
3,819	Edison International	130,495
2,290	Entergy Corp.	186,291
8,262	Exelon Corp.	361,958
3,706	FirstEnergy Corp.	144,868
5,359	FPL Group, Inc.	259,000
2,199	Northeast Utilities	60,780
3,053	Pepco Holdings, Inc.	52,359
1,424	Pinnacle West Capital Corp.	53,728
4,428	PPL Corp.	122,700
3,715	Progress Energy, Inc.	146,222
10,291	Southern Co.	341,250
		2,378,272
	Electrical Equipment (0.6%)
9,552	Emerson Electric Co.	480,848
647	First Solar, Inc. (a)	79,355
1,998	Rockwell Automation, Inc.	112,607
1,193	Roper Industries, Inc.	69,003
		741,813
	Electronic Equipment, Instruments & Components (0.6%)
4,027	Agilent Technologies, Inc. (a)	138,489
1,880	Amphenol Corp. (Class A)	79,317
19,048	Corning, Inc.	384,960
1,960	FLIR Systems, Inc. (a)	55,272
2,975	Jabil Circuit, Inc.	48,165
1,989	Molex, Inc.	41,491
		747,694
	Energy Equipment & Services (1.8%)
3,720	Baker Hughes, Inc.	174,245
4,122	BJ Services Co.	88,211
3,100	Cameron International Corp. (a)	132,866
969	Diamond Offshore Drilling, Inc.	86,057
1,414	FMC Technologies, Inc. (a)	91,387
11,662	Halliburton Co.	351,376
1,343	Helmerich & Payne, Inc.	51,141
4,018	Nabors Industries Ltd. (Bermuda) (a)	78,873
5,324	National Oilwell Varco, Inc.	216,048
1,596	Rowan Cos., Inc. (a)	46,460
15,035	Schlumberger Ltd. (Netherlands Antilles)	954,121
3,090	Smith International, Inc.	132,314
		2,403,099
	Food & Staples Retailing (2.7%)
5,652	Costco Wholesale Corp.	337,481
17,757	CVS Caremark Corp.	649,196
8,011	Kroger Co. (The)	173,518
4,919	Safeway, Inc.	122,287
2,990	SUPERVALU, Inc.	49,873
7,528	Sysco Corp.	222,076
26,832	Wal-Mart Stores, Inc.	1,491,859
12,695	Walgreen Co.	470,858
1,981	Whole Foods Market, Inc. (a)	71,613
		3,588,761

	Food Products (1.8%)
8,291	Archer-Daniels-Midland Co.	$	239,610
2,043	Campbell Soup Co.	72,220
5,141	ConAgra Foods, Inc.	128,885
2,174	Dean Foods Co. (a)	34,110
4,006	General Mills, Inc.	283,585
2,342	Hershey Co. (The)	100,261
3,833	HJ Heinz Co.	174,823
980	Hormel Foods Corp.	41,170
1,672	JM Smucker Co. (The)	100,755
3,024	Kellogg Co.	161,572
21,564	Kraft Foods, Inc. (Class A)	652,095
1,836	McCormick & Co., Inc.	70,429
2,359	Mead Johnson Nutrition Co.	122,739
7,934	Sara Lee Corp.	110,520
4,266	Tyson Foods, Inc. (Class A)	81,694
		2,374,468
	Gas Utilities (0.2%)
1,848	EQT Corp.	75,768
638	Nicor, Inc.	26,745
1,338	Oneok, Inc.	61,079
2,449	Questar Corp.	105,797
		269,389
	Health Care Equipment & Supplies (1.9%)
7,685	Baxter International, Inc.	447,267
3,102	Becton Dickinson and Co.	244,220
18,343	Boston Scientific Corp. (a)	132,436
1,089	C.R. Bard, Inc.	94,329
2,539	CareFusion Corp. (a)	67,106
2,103	DENTSPLY International, Inc.	73,290
2,254	Hospira, Inc. (a)	127,689
451	Intuitive Surgical, Inc. (a)	157,007
13,942	Medtronic, Inc.	627,808
3,965	St Jude Medical, Inc. (a)	162,763
3,523	Stryker Corp.	201,586
1,755	Varian Medical Systems, Inc. (a)	97,104
2,683	Zimmer Holdings, Inc. (a)	158,834
		2,591,439
	Health Care Providers & Services (2.1%)
5,700	Aetna, Inc.	200,127
3,265	AmerisourceBergen Corp.	94,424
4,293	Cardinal Health, Inc.	154,677
3,142	CIGNA Corp.	114,934
2,104	Coventry Health Care, Inc. (a)	52,011
1,466	DaVita, Inc. (a)	92,944
3,318	Express Scripts, Inc. (a)	337,640
2,382	Humana, Inc. (a)	111,406
1,176	Laboratory Corp. of America Holdings (a)	89,035
3,502	McKesson Corp.	230,152
5,613	Medco Health Solutions, Inc. (a)	362,375
1,288	Patterson Cos., Inc.	39,992
1,834	Quest Diagnostics, Inc.	106,904
5,862	Tenet Healthcare Corp. (a)	33,531
14,345	UnitedHealth Group, Inc. (a)	468,651
5,689	WellPoint, Inc. (a)	366,258
		2,855,061
	Hotels, Restaurants & Leisure (1.5%)
5,348	Carnival Corp. (Units) (Panama) (a)(d)	207,930
1,959	Darden Restaurants, Inc.	87,254

4,161	International Game Technology	$	76,771
2,916	Marriott International, Inc. (Class A)	91,912
13,352	McDonald’s Corp.	890,846
9,509	Starbucks Corp. (a)	230,783
2,585	Starwood Hotels & Resorts Worldwide, Inc.	120,564
2,504	Wyndham Worldwide Corp.	64,428
870	Wynn Resorts Ltd.	65,972
5,764	Yum! Brands, Inc.	220,934
		2,057,394
	Household Durables (0.4%)
3,890	DR Horton, Inc.	49,014
2,117	Fortune Brands, Inc.	102,696
827	Harman International Industries, Inc. (a)	38,687
2,206	Leggett & Platt, Inc.	47,738
1,995	Lennar Corp. (Class A)	34,334
3,914	Newell Rubbermaid, Inc.	59,493
3,326	Pulte Group, Inc. (a)	37,417
2,036	Stanley Black & Decker, Inc.	116,887
1,038	Whirlpool Corp.	90,565
		576,831
	Household Products (2.4%)
1,551	Clorox Co.	99,481
6,299	Colgate-Palmolive Co.	537,053
5,060	Kimberly-Clark Corp.	318,173
36,172	Procter & Gamble Co. (The)	2,288,602
		3,243,309
	Independent Power Producers & Energy Traders (0.2%)
7,429	AES Corp. (The) (a)	81,719
2,519	Constellation Energy Group, Inc.	88,442
3,332	NRG Energy, Inc. (a)	69,639
		239,800
	Industrial Conglomerates (2.4%)
8,753	3M Co.	731,488
134,294	General Electric Co. (e)	2,444,151
3,405	Textron, Inc.	72,288
		3,247,927
	Information Technology Services (1.5%)
6,564	Automatic Data Processing, Inc.	291,901
3,558	Cognizant Technology Solutions Corp. (Class A) (a)	181,387
2,139	Computer Sciences Corp. (a)	116,554
3,745	Fidelity National Information Services, Inc.	87,783
1,707	Fiserv, Inc. (a)	86,647
1,230	Mastercard, Inc. (Class A)	312,420
3,662	Paychex, Inc.	112,424
3,266	SAIC, Inc. (a)	57,808
2,779	Total System Services, Inc.	43,519
5,481	Visa, Inc. (Class A)	498,936
8,842	Western Union Co. (The)	149,960
		1,939,339
	Insurance (3.8%)
5,980	Aflac, Inc.	324,654
6,784	Allstate Corp. (The) (f)	219,191
1,898	American International Group, Inc. (a)	64,798
3,163	AON Corp.	135,092
1,661	Assurant, Inc.	57,105
20,832	Berkshire Hathaway, Inc. (Class B) (a)	1,693,017
4,088	Chubb Corp.	211,963
2,293	Cincinnati Financial Corp.	66,268

6,116	Genworth Financial, Inc. (Class A) (a)	$	112,167
4,701	Hartford Financial Services Group, Inc.	133,602
3,613	Lincoln National Corp.	110,919
4,416	Loews Corp.	164,628
6,136	Marsh & McLennan Cos., Inc.	149,841
10,372	MetLife, Inc. (g)	449,522
3,845	Principal Financial Group, Inc.	112,312
8,451	Progressive Corp. (The)	161,330
5,596	Prudential Financial, Inc.	338,558
1,201	Torchmark Corp.	64,266
6,185	Travelers Cos., Inc. (The)	333,619
4,676	Unum Group	115,825
4,671	XL Capital Ltd. (Class A) (Cayman Islands)	88,282
		5,106,959
	Internet & Catalog Retail (0.6%)
4,186	Amazon.com, Inc. (a)	568,166
2,958	Expedia, Inc.	73,831
567	Priceline.com, Inc. (a)	144,585
		786,582
	Internet Software & Services (1.9%)
2,388	Akamai Technologies, Inc. (a)	75,007
14,552	eBay, Inc. (a)	392,177
3,005	Google, Inc. (Class A) (a)	1,703,865
1,740	Monster Worldwide, Inc. (a)	28,901
2,740	VeriSign, Inc. (a)	71,268
15,291	Yahoo!, Inc. (a)	252,760
		2,523,978
	Leisure Equipment & Products (0.2%)
3,791	Eastman Kodak Co. (a)	21,950
1,749	Hasbro, Inc.	66,952
5,061	Mattel, Inc.	115,087
		203,989
	Life Sciences Tools & Services (0.4%)
2,437	Life Technologies Corp. (a)	127,382
780	Millipore Corp. (a)	82,368
1,668	PerkinElmer, Inc.	39,865
4,862	Thermo Fisher Scientific, Inc. (a)	250,101
988	Waters Corp. (a)	66,730
		566,446
	Machinery (1.7%)
7,683	Caterpillar, Inc.	482,877
2,342	Cummins, Inc.	145,087
3,223	Danaher Corp.	257,550
5,525	Deere & Co.	328,516
2,087	Dover Corp.	97,567
1,927	Eaton Corp.	146,009
798	Flowserve Corp.	87,995
4,979	Illinois Tool Works, Inc.	235,805
4,446	PACCAR, Inc.	192,690
1,667	Pall Corp.	67,497
1,848	Parker Hannifin Corp.	119,640
811	Snap-On, Inc.	35,149
		2,196,382
	Media (3.0%)
7,675	CBS Corp. (Class B)	106,990
35,094	Comcast Corp. (Class A)	660,469
11,321	DIRECTV (Class A) (a)	382,763
3,600	Discovery Communications, Inc. (Class A) (a)	121,644

3,221	Gannett Co., Inc.	$	53,211
6,729	Interpublic Group of Cos., Inc. (a)	55,985
3,695	McGraw-Hill Cos., Inc. (The)	131,727
510	Meredith Corp.	17,549
1,645	New York Times Co. (The) (Class A) (a)	18,309
28,473	News Corp. (Class A)	410,296
3,656	Omnicom Group, Inc.	141,889
1,272	Scripps Networks Interactive, Inc. (Class A)	56,413
4,325	Time Warner Cable, Inc.	230,566
14,238	Time Warner, Inc.	445,222
7,744	Viacom, Inc. (Class B) (a)	266,239
24,308	Walt Disney Co. (The)	848,592
85	Washington Post Co. (The) (Class B)	37,755
		3,985,619
	Metals & Mining (1.1%)
1,582	AK Steel Holding Corp.	36,165
12,445	Alcoa, Inc.	177,217
1,360	Allegheny Technologies, Inc.	73,426
1,489	Cliffs Natural Resources, Inc.	105,645
5,526	Freeport-McMoRan Copper & Gold, Inc.	461,642
6,176	Newmont Mining Corp.	314,544
3,817	Nucor Corp.	173,215
1,202	Titanium Metals Corp. (a)	19,941
1,679	United States Steel Corp.	106,650
		1,468,445
	Multi-Utilities (1.3%)
2,986	Ameren Corp.	77,875
4,860	Centerpoint Energy, Inc.	69,790
3,194	CMS Energy Corp.	49,379
3,266	Consolidated Edison, Inc.	145,468
7,463	Dominion Resources, Inc.	306,804
2,302	DTE Energy Co.	102,669
1,079	Integrys Energy Group, Inc.	51,123
3,873	NiSource, Inc.	61,193
4,475	PG&E Corp.	189,830
6,394	Public Service Enterprise Group, Inc.	188,751
1,658	SCANA Corp.	62,324
2,978	Sempra Energy	148,602
3,005	TECO Energy, Inc.	47,749
1,651	Wisconsin Energy Corp.	81,576
5,118	Xcel Energy, Inc.	108,502
		1,691,635
	Multiline Retail (0.9%)
1,160	Big Lots, Inc. (a)	42,247
1,973	Family Dollar Stores, Inc.	72,232
3,137	JC Penney Co., Inc.	100,917
3,784	Kohl’s Corp. (a)	207,287
4,680	Macy’s, Inc.	101,884
2,251	Nordstrom, Inc.	91,953
492	Sears Holdings Corp. (a)	53,348
9,429	Target Corp.	495,965
		1,165,833
	Office Electronics (0.1%)
15,762	Xerox Corp.	153,679

	Oil, Gas & Consumable Fuels (9.0%)
6,240	Anadarko Petroleum Corp.	454,459
4,201	Apache Corp.	426,401
1,459	Cabot Oil & Gas Corp.	53,691
8,243	Chesapeake Energy Corp.	194,865

25,281	Chevron Corp.	$	1,917,058
18,564	ConocoPhillips	949,920
2,041	Consol Energy, Inc.	87,069
5,795	Denbury Resources, Inc. (a)	97,762
5,457	Devon Energy Corp.	351,595
9,902	El Paso Corp.	107,338
3,229	EOG Resources, Inc.	300,103
58,933	Exxon Mobil Corp.	3,947,332
3,534	Hess Corp.	221,052
9,211	Marathon Oil Corp.	291,436
1,202	Massey Energy Co.	62,853
2,218	Murphy Oil Corp.	124,629
2,074	Noble Energy, Inc.	151,402
10,142	Occidental Petroleum Corp.	857,405
3,183	Peabody Energy Corp.	145,463
1,662	Pioneer Natural Resources Co.	93,604
2,194	Range Resources Corp.	102,833
4,362	Southwestern Energy Co. (a)	177,621
8,629	Spectra Energy Corp.	194,411
1,650	Sunoco, Inc.	49,021
1,955	Tesoro Corp.	27,174
7,287	Valero Energy Corp.	143,554
6,918	Williams Cos., Inc. (The)	159,806
7,232	XTO Energy, Inc.	341,206
		12,031,063
	Paper & Forest Products (0.2%)
4,972	International Paper Co.	122,361
2,412	MeadWestvaco Corp.	61,627
2,375	Weyerhaeuser Co.	107,516
		291,504
	Personal Products (0.2%)
5,227	Avon Products, Inc.	177,039
1,636	Estee Lauder Cos., Inc. (The) (Class A)	106,127
		283,166
	Pharmaceuticals (6.0%)
19,200	Abbott Laboratories	1,011,456
4,045	Allergan, Inc.	264,219
21,207	Bristol-Myers Squibb Co.	566,227
12,645	Eli Lilly & Co.	458,002
3,643	Forest Laboratories, Inc. (a)	114,245
34,264	Johnson & Johnson	2,234,013
3,480	King Pharmaceuticals, Inc. (a)	40,925
38,671	Merck & Co., Inc.	1,444,362
4,303	Mylan, Inc. (a)	97,721
101,669	Pfizer, Inc.	1,743,623
1,477	Watson Pharmaceuticals, Inc. (a)	61,694
		8,036,487
	Professional Services (0.1%)
761	Dun & Bradstreet Corp.	56,634
1,784	Equifax, Inc.	63,867
2,191	Robert Half International, Inc.	66,672
		187,173
	Real Estate Investment Trusts (REITs) (1.2%)
1,642	Apartment Investment & Management Co. (Class A)	30,229
1,123	AvalonBay Communities, Inc.	96,971
1,706	Boston Properties, Inc.	128,701
3,196	Equity Residential	125,123
3,568	HCP, Inc.	117,744
1,403	Health Care REIT, Inc.	63,458

7,534	Host Hotels & Resorts, Inc.	$	110,373
4,224	Kimco Realty Corp.	66,063
2,355	Plum Creek Timber Co., Inc.	91,633
5,063	ProLogis	66,832
1,770	Public Storage	162,822
3,695	Simon Property Group, Inc.	310,010
2,081	Ventas, Inc.	98,806
2,008	Vornado Realty Trust	152,006
		1,620,771
	Real Estate Management & Development (0.0%)
3,149	CB Richard Ellis Group, Inc. (Class A) (a)	49,912

	Road & Rail (0.8%)
5,026	CSX Corp.	255,823
4,716	Norfolk Southern Corp.	263,577
785	Ryder System, Inc.	30,427
6,287	Union Pacific Corp.	460,837
		1,010,664
	Semiconductors & Semiconductor Equipment (2.5%)
5,673	Advanced Micro Devices, Inc. (a)	52,589
3,192	Altera Corp.	77,597
4,167	Analog Devices, Inc.	120,093
17,167	Applied Materials, Inc.	231,411
5,407	Broadcom Corp. (Class A)	179,404
68,738	Intel Corp.	1,530,108
2,384	KLA-Tencor Corp.	73,713
3,131	Linear Technology Corp.	88,545
9,109	LSI Corp. (a)	55,747
3,169	MEMC Electronic Materials, Inc. (a)	48,581
2,568	Microchip Technology, Inc.	72,315
10,785	Micron Technology, Inc. (a)	112,056
2,755	National Semiconductor Corp.	39,810
1,379	Novellus Systems, Inc. (a)	34,475
7,584	Nvidia Corp. (a)	131,810
2,391	Teradyne, Inc. (a)	26,707
16,038	Texas Instruments, Inc.	392,450
3,868	Xilinx, Inc.	98,634
		3,366,045
	Software (4.0%)
6,806	Adobe Systems, Inc. (a)	240,728
3,195	Autodesk, Inc. (a)	93,997
1,969	BMC Software, Inc. (a)	74,822
4,468	CA, Inc.	104,864
2,030	Citrix Systems, Inc. (a)	96,364
3,481	Compuware Corp. (a)	29,240
4,531	Electronic Arts, Inc. (a)	84,549
3,656	Intuit, Inc. (a)	125,547
2,157	McAfee, Inc. (a)	86,560
95,119	Microsoft Corp.	2,784,133
4,875	Novell, Inc. (a)	29,201
48,577	Oracle Corp.	1,247,943
2,639	Red Hat, Inc. (a)	77,244
1,482	Salesforce.com, Inc. (a)	110,335
10,294	Symantec Corp. (a)	174,175
		5,359,702
	Specialty Retail (2.0%)
1,229	Abercrombie & Fitch Co. (Class A)	56,091
1,523	AutoNation, Inc. (a)	27,536
348	AutoZone, Inc. (a)	60,235
3,027	Bed Bath & Beyond, Inc. (a)	132,461

4,179	Best Buy Co., Inc.	$	177,775
2,313	GameStop Corp. (Class A) (a)	50,678
5,415	Gap, Inc. (The)	125,141
20,948	Home Depot, Inc.	677,668
3,821	Limited Brands, Inc.	94,073
18,482	Lowe’s Cos., Inc.	448,004
1,853	O’Reilly Automotive, Inc. (a)	77,289
3,882	Office Depot, Inc. (a)	30,978
1,766	RadioShack Corp.	39,965
1,324	Ross Stores, Inc.	70,794
994	Sherwin-Williams Co. (The)	67,274
8,908	Staples, Inc.	208,358
1,738	Tiffany & Co.	82,538
5,237	TJX Cos., Inc.	222,677
1,267	Urban Outfitters, Inc. (a)	48,184
		2,697,719
	Textiles, Apparel & Luxury Goods (0.5%)
3,886	Coach, Inc.	153,575
4,706	NIKE, Inc. (Class B)	345,891
794	Polo Ralph Lauren Corp.	67,522
1,244	VF Corp.	99,706
		666,694
	Thrifts & Mortgage Finance (0.1%)
5,424	Hudson City Bancorp, Inc.	76,804
4,911	People’s United Financial, Inc.	76,808
		153,612
	Tobacco (1.5%)
26,207	Altria Group, Inc.	537,768
2,045	Lorillard, Inc.	153,866
23,660	Philip Morris International, Inc.	1,234,105
1,904	Reynolds American, Inc.	102,778
		2,028,517
	Trading Companies & Distributors (0.1%)
1,825	Fastenal Co.	87,582
672	WW Grainger, Inc.	72,656
		160,238
	Wireless Telecommunication Services (0.3%)
4,953	American Tower Corp. (Class A) (a)	211,047
2,582	MetroPCS Communications, Inc. (a)	18,281
40,341	Sprint Nextel Corp. (a)	153,296
		382,624
	Total Common Stocks (Cost $98,251,189)	132,233,027

NUMBER OF SHARES (000)
	*Short-Term Investment (h) (0.6%)*
	Investment Company
831	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $830,535)			830,535

	Total Investments *(Cost $99,081,724) (i)(j)*	99.9	%	133,063,562
	Other Assets in Excess of Liabilities	0.1		87,884
	Net Assets	100.0	%	$	133,151,446

(a)		Non-income producing security.
(b)		For the three months ended March 31, 2010, there were no transactions in Morgan Stanley, common stock, an affiliate of the Investment Adviser, Administrator and Distributor.

(c)		For the three months ended March 31, 2010, the proceeds from sales of Citigroup Inc., common stock, an affiliate of the Investment Adviser, Administrator and Distributor, was $28,777, including net realized losses of $260,982.
(d)		Consists of one or more class of securities traded together as a unit; stocks with attached warrants.
(e)		A portion of this security has been physically segregated in connection with open futures contracts.
(f)		For the three months ended March 31, 2010, there were no transactions in Allstate Corp. (The), common stock, an affiliate of the Fund.
(g)		For the three months ended March 31, 2010, there were no transactions in MetLife Inc., common stock, an affiliate of the Fund.
(h)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(i)		Securities have been designated as collateral in connection with open futures contracts.
(j)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Futures Contracts Open at March 31, 2010:

NUMBER OF CONTRACTS	LONG/ SHORT	DESCRIPTION, DELIVERY MONTH AND YEAR	UNDERLYING FACE AMOUNT AT VALUE		UNREALIZED APPRECIATION
22	Long	S&P 500 E-MINI, June 2010	$	1,281,720	$	6,411

Notes to Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL		UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)	SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)

Common Stocks
Aerospace & Defense	$	3,834,511	$	3,834,511	—	—
Air Freight & Logistics	1,359,720		1,359,720		—	—
Airlines	110,955		110,955		—	—
Auto Components	319,851		319,851		—	—
Automobiles	610,392		610,392		—	—
Beverages	3,340,362		3,340,362		—	—
Biotechnology	2,005,304		2,005,304		—	—
Building Products	78,873		78,873		—	—
Capital Markets	3,547,154		3,547,154		—	—
Chemicals	2,467,318		2,467,318		—	—
Commercial Banks	4,086,066		4,086,066		—	—
Commercial Services & Supplies	690,145		690,145		—	—
Communications Equipment	3,328,089		3,328,089		—	—
Computers & Peripherals	7,606,549		7,606,549		—	—
Construction & Engineering	225,050		225,050		—	—
Construction Materials	73,458		73,458		—	—
Consumer Finance	1,034,925		1,034,925		—	—
Containers & Packaging	289,153		289,153		—	—
Distributors	95,082		95,082		—	—
Diversified Consumer Services	232,856		232,856		—	—
Diversified Financial Services	6,109,432		6,109,432		—	—
Diversified Telecommunication Services	3,357,748		3,357,748		—	—
Electric Utilities	2,378,272		2,378,272		—	—
Electrical Equipment	741,813		741,813		—	—
Electronic Equipment, Instruments & Components	747,694		747,694		—	—
Energy Equipment & Services	2,403,099		2,403,099		—	—
Food & Staples Retailing	3,588,761		3,588,761		—	—
Food Products	2,374,468		2,374,468		—	—
Gas Utilities	269,389		269,389		—	—
Health Care Equipment & Supplies	2,591,439		2,591,439		—	—
Health Care Providers & Services	2,855,061		2,855,061		—	—
Hotels, Restaurants & Leisure	2,057,394		2,057,394		—	—
Household Durables	576,831		576,831		—	—
Household Products	3,243,309		3,243,309		—	—
Independent Power Producers & Energy Traders	239,800		239,800		—	—
Industrial Conglomerates	3,247,927		3,247,927		—	—
Information Technology Services	1,939,339		1,939,339		—	—
Insurance	5,106,959		5,106,959		—	—
Internet & Catalog Retail	786,582		786,582		—	—
Internet Software & Services	2,523,978		2,523,978		—	—
Leisure Equipment & Products	203,989		203,989		—	—
Life Sciences Tools & Services	566,446		566,446		—	—
Machinery	2,196,382		2,196,382		—	—
Media	3,985,619		3,985,619		—	—
Metals & Mining	1,468,445		1,468,445		—	—
Multi-Utilities	1,691,635		1,691,635		—	—
Multiline Retail	1,165,833		1,165,833		—	—
Office Electronics	153,679		153,679		—	—
Oil, Gas & Consumable Fuels	12,031,063		12,031,063		—	—
Paper & Forest Products	291,504		291,504		—	—
Personal Products	283,166		283,166		—	—
Pharmaceuticals	8,036,487		8,036,487		—	—
Professional Services	187,173		187,173		—	—
Real Estate Investment Trusts (REITs)	1,620,771		1,620,771		—	—
Real Estate Management & Development	49,912		49,912		—	—
Road & Rail	1,010,664		1,010,664		—	—
Semiconductors & Semiconductor Equipment	3,366,045		3,366,045		—	—
Software	5,359,702		5,359,702		—	—
Specialty Retail	2,697,719		2,697,719		—	—
Textiles, Apparel & Luxury Goods	666,694		666,694		—	—
Thrifts & Mortgage Finance	153,612		153,612		—	—
Tobacco	2,028,517		2,028,517		—	—
Trading Companies & Distributors	160,238		160,238		—	—
Wireless Telecommunication Services	382,624		382,624		—	—
Total Common Stocks	132,233,027		132,233,027		—	—
Short-Term Investment - Investment Company	830,535		830,535		—	—
Futures	6,411		6,411		—	—
Total	$	133,069,973	$	133,069,973	—	—

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 ask 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 ask 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 ask 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; (8) 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 (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, which approximates market value.

*Morgan Stanley announced on October 19, 2009 that it has entered into a definitive agreement to sell substantially all of its retail asset management business to Invesco Ltd. (“Invesco”), a leading global investment management company (the “Transaction”). The Trustees of the Fund approved an Agreement and Plan of Reorganization (the “Reorganization”). Pursuant to the Reorganization, substantially all of the assets of the Fund would be combined with those of a newly organized mutual fund advised by an affiliate of Invesco Ltd. (the “New Fund”). Pursuant to the Reorganization, shareholders of the Fund would become shareholders of the New Fund, receiving shares of such New Fund equal to the value of their holdings in the Fund. The Reorganization was approved by the Fund’s shareholders at a special meeting of shareholders held on May 11, 2010. Both the Transaction and the Reorganization are expected to close on or about June 1, 2010.

Morgan Stanley Variable Investment Series - Aggressive Equity Portfolio

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE
	Common Stocks (96.3%)
	Air Freight & Logistics (2.2%)
18,637	Expeditors International of Washington, Inc.	$	688,078

	Capital Markets (3.7%)
14,356	Greenhill & Co., Inc.	1,178,484

	Chemicals (3.5%)
15,641	Monsanto Co.	1,117,080

	Computers & Peripherals (10.0%)
9,817	Apple, Inc. (a)	2,306,308
29,439	Teradata Corp. (a)	850,493
		3,156,801
	Distributors (3.8%)
244,000	Li & Fung Ltd. (Bermuda) (b)	1,200,477

	Diversified Financial Services (7.2%)
91,530	BM&F Bovespa SA (Brazil)	614,029
27,206	Leucadia National Corp. (a)	674,981
27,005	MSCI, Inc. (Class A) (a)	974,880
		2,263,890
	Health Care Technology (2.4%)
20,582	athenahealth, Inc. (a)	752,478

	Hotels, Restaurants & Leisure (7.0%)
30,611	Ctrip.com International Ltd. (ADR) (Cayman Islands) (a)	1,199,951
13,373	Wynn Resorts Ltd.	1,014,075
		2,214,026
	Information Technology Services (6.4%)
4,962	Mastercard, Inc. (Class A)	1,260,348
40,732	Redecard SA (Brazil)	753,554
		2,013,902
	Internet & Catalog Retail (6.9%)
16,200	Amazon.com, Inc. (a)	2,198,826

	Internet Software & Services (18.1%)
2,670	Baidu, Inc. (ADR) (Cayman Islands) (a)	1,593,990
3,712	Google, Inc. (Class A) (a)	2,104,741
101,400	Tencent Holdings Ltd. (Cayman Islands) (b)	2,034,726
		5,733,457
	Life Sciences Tools & Services (5.2%)
21,927	Illumina, Inc. (a)	852,960
12,384	Techne Corp.	788,737
		1,641,697
	Oil, Gas & Consumable Fuels (5.9%)
15,454	Range Resources Corp.	724,329
24,208	Ultra Petroleum Corp. (Canada) (a)	1,128,819
		1,853,148
	Professional Services (5.0%)
17,882	CoStar Group, Inc. (a)	742,461
29,885	Verisk Analytics, Inc. (Class A) (a)	842,757
		1,585,218
	Real Estate Management & Development (3.8%)
47,382	Brookfield Asset Management, Inc. (Class A) (Canada)	1,204,450

	Semiconductors & Semiconductor Equipment (2.0%)
31,768	Tessera Technologies, Inc. (a)	644,255

	Software (3.2%)
13,518	Salesforce.com, Inc. (a)	1,006,415
	Total Common Stocks (Cost $24,100,463)	30,452,682

NUMBER OF SHARES (000)
	Short-Term Investment (e) (3.8%)
	Investment Company
1,202	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $1,202,043)			1,202,043

	Total Investments (Cost $25,479,776) (f)	100.7	%	31,831,995
	Liabilities in Excess of Other Assets	(0.7	)	(222,280		)
	Net Assets	100.0	%	$	31,609,715

ADR		American Depositary Receipt.
(a)		Non-income producing security.
(b)		Security trades on a Hong Kong exchange.
(c)		Illiquid security. Resale is restricted to qualified institutional investors.
(d)		Securities with a total market value equal to $177,270 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. Such fair value measurements may be Level 2 measurements if observable inputs are available.
(e)		The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(f)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Notes to the Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL		UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)	SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Common Stocks
Air Freight & Logistics	$	688,078	$	688,078	—	—
Capital Markets	1,178,484		1,178,484		—	—
Chemicals	1,117,080		1,117,080		—	—
Computers & Peripherals	3,156,801		3,156,801		—	—
Distributors	1,200,477		1,200,477		—	—
Diversified Financial Services	2,263,890		2,263,890		—	—
Health Care Technology	752,478		752,478		—	—
Hotels, Restaurants & Leisure	2,214,026		2,214,026		—	—
Information Technology Services	2,013,902		2,013,902		—	—
Internet & Catalog Retail	2,198,826		2,198,826		—	—
Internet Software & Services	5,733,457		5,733,457		—	—
Life Sciences Tools & Services	1,641,697		1,641,697		—	—
Oil, Gas & Consumable Fuels	1,853,148		1,853,148		—	—
Professional Services	1,585,218		1,585,218		—	—
Real Estate Management & Development	1,204,450		1,204,450		—	—
Semiconductors & Semiconductor Equipment	644,255		644,255		—	—
Software	1,006,415		1,006,415		—	—
Total Common Stocks	30,452,682		30,452,682		—	—
Convertible Preferred Stocks	177,270		—		—	$	177,270
Short-Term Investment - Investment Company	1,202,043		1,202,043		—	—
Total	$	31,831,995	$	31,654,725	—	$	177,270

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the Levels as of the end of the period. As of March 31, 2010, securities with a total value of $4,602,786 transferred from Level 2 to Level 1. At December 31, 2009, the fair market value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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

	INVESTMENTS IN SECURITIES
Beginning Balance	$	—
Net purchases (sales)	177,270
Amortization of discount	—
Transfers in	—
Transfers out	—
Change in unrealized appreciation/depreciation	—
Realized gains (losses)	—
Ending Balance	$	177,270

Net change in unrealized appreciation/depreciation from investments still held as of March 31, 2010	$	—

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 ask 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 ask 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 ask 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 ask 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; (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, which approximates market value.

Morgan Stanley Variable Investment Series - Strategist Portfolio

Portfolio of Investments · March 31, 2010 (unaudited)

NUMBER OF SHARES		VALUE

	Common Stocks (63.1%)
	Aerospace & Defense (2.8%)
19,290	Boeing Co. (The)	$	1,400,647
26,755	Northrop Grumman Corp.	1,754,325
41,255	Raytheon Co.	2,356,486
		5,511,458
	Airlines (1.3%)
117,820	Continental Airlines, Inc. (Class B) (a)	2,588,505

	Automobiles (0.7%)
41,110	Honda Motor Co. Ltd. (ADR) (Japan)	1,450,772

	Biotechnology (4.6%)
31,500	Alexion Pharmaceuticals, Inc. (a)	1,712,655
23,010	Amgen, Inc. (a)	1,375,077
42,680	Biogen Idec, Inc. (a)	2,448,125
14,930	Celgene Corp. (a)	925,063
28,460	Gilead Sciences, Inc. (a)	1,294,361
30,620	Vertex Pharmaceuticals, Inc. (a)	1,251,439
		9,006,720
	Capital Markets (2.1%)
45,650	Charles Schwab Corp. (The)	853,198
7,065	Goldman Sachs Group, Inc. (The)	1,205,501
56,090	Lazard Ltd. (Class A) (Bermuda)	2,002,413
		4,061,112
	Chemicals (1.3%)
67,770	EI Du Pont de Nemours & Co.	2,523,755

	Commercial Banks (0.9%)
55,925	Wells Fargo & Co.	1,740,386

	Commercial Services & Supplies (1.3%)
77,490	Waste Management, Inc.	2,667,981

	Communications Equipment (0.9%)
70,100	Cisco Systems, Inc. (a)	1,824,703

	Computers & Peripherals (2.8%)
8,795	Apple, Inc. (a)	2,066,209
104,645	EMC Corp. (a)	1,887,796
12,623	International Business Machines Corp.	1,618,900
		5,572,905
	Construction & Engineering (0.9%)
79,420	Chicago Bridge & Iron Co. N.V. (NY Registered Shares) (Netherlands) (a)	1,847,309

	Consumer Finance (0.9%)
40,950	American Express Co.	1,689,597

	Diversified Financial Services (2.7%)
69,525	Bank of America Corp.	1,241,021
602,800	Citigroup, Inc. (a)(b)	2,441,340
34,920	JPMorgan Chase & Co.	1,562,670
		5,245,031
	Diversified Telecommunication Services (1.5%)
49,025	AT&T, Inc.	1,266,806
52,400	Verizon Communications, Inc.	1,625,448
		2,892,254
	Electric Utilities (1.0%)
56,200	American Electric Power Co., Inc.	1,920,916

	Electrical Equipment (1.1%)
41,770	Emerson Electric Co.	2,102,702

	Electronic Equipment, Instruments & Components (0.9%)
84,060	Corning, Inc.	1,698,853

	Energy Equipment & Services (1.9%)
12,750	Diamond Offshore Drilling, Inc.	$	1,132,328
47,920	Halliburton Co.	1,443,830
74,725	Weatherford International Ltd. (Switzerland) (a)	1,185,138
		3,761,296
	Food & Staples Retailing (0.6%)
18,685	Costco Wholesale Corp.	1,115,681

	Food Products (1.0%)
21,090	Kellogg Co.	1,126,839
28,570	Kraft Foods, Inc. (Class A)	863,957
		1,990,796
	Health Care Equipment & Supplies (1.1%)
11,290	C.R. Bard, Inc.	977,940
22,660	Covidien PLC (Ireland)	1,139,345
		2,117,285
	Hotels, Restaurants & Leisure (1.2%)
28,440	Carnival Corp. (Units) (Panama) (a)(c)	1,105,747
20,460	McDonald’s Corp.	1,365,091
		2,470,838
	Household Durables (1.8%)
48,570	DR Horton, Inc.	611,982
53,060	Gafisa SA (ADR) (Brazil)	729,044
45,400	Lennar Corp. (Class A)	781,334
22,355	Sony Corp. (ADR) (Japan)	856,644
141,750	Standard Pacific Corp. (a)	640,710
		3,619,714
	Household Products (0.4%)
8,910	Colgate-Palmolive Co.	759,667

	Industrial Conglomerates (0.7%)
80,150	General Electric Co.	1,458,730

	Information Technology Services (0.6%)
13,695	Visa, Inc. (Class A)	1,246,656

	Insurance (1.6%)
23,770	Chubb Corp.	1,232,474
106,250	XL Capital Ltd. (Class A) (Cayman Islands)	2,008,125
		3,240,599
	Internet Software & Services (1.1%)
21,350	eBay, Inc. (a)	575,383
2,745	Google, Inc. (Class A) (a)	1,556,442
		2,131,825
	Life Sciences Tools & Services (0.7%)
25,560	Thermo Fisher Scientific, Inc. (a)	1,314,806

	Machinery (1.7%)
24,810	Parker Hannifin Corp.	1,606,200
84,670	Trinity Industries, Inc.	1,690,013
		3,296,213
	Metals & Mining (1.5%)
45,575	AK Steel Holding Corp.	1,041,844
25,775	Kinross Gold Corp. (Canada)	440,495
23,255	United States Steel Corp.	1,477,158
		2,959,497
	Multiline Retail (0.5%)
19,240	Kohl’s Corp. (a)	1,053,967

	Oil, Gas & Consumable Fuels (1.9%)
17,020	Exxon Mobil Corp.	1,140,000

40,435	Hess Corp.	$	2,529,209
		3,669,209
	Pharmaceuticals (2.7%)
26,280	Johnson & Johnson	1,713,456
53,685	Merck & Co., Inc.	2,005,135
92,360	Pfizer, Inc.	1,583,974
		5,302,565
	Real Estate Investment Trusts (REITs) (0.7%)
38,040	Plum Creek Timber Co., Inc.	1,480,136

	Real Estate Management & Development (1.6%)
136,220	CB Richard Ellis Group, Inc. (Class A) (a)	2,159,087
50,680	E-House China Holdings Ltd. (ADR) (Cayman Islands) (a)	964,440
		3,123,527
	Semiconductors & Semiconductor Equipment (3.0%)
73,700	Applied Materials, Inc.	993,476
94,105	Intel Corp.	2,094,777
30,000	KLA-Tencor Corp.	927,600
181,117	Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) (Taiwan)	1,899,918
		5,915,771
	Software (5.4%)
179,585	Activision Blizzard, Inc. (a)	2,165,795
88,050	Microsoft Corp.	2,577,224
131,745	Oracle Corp.	3,384,529
55,650	Sybase, Inc. (a)	2,594,403
		10,721,951
	Specialty Retail (1.2%)
51,120	Staples, Inc.	1,195,697
25,670	TJX Cos., Inc.	1,091,488
		2,287,185
	Tobacco (1.5%)
53,010	Altria Group, Inc.	1,087,765
35,245	Philip Morris International, Inc.	1,838,379
		2,926,144
	Water Utilities (1.0%)
87,945	American Water Works Co., Inc.	1,913,683
	Total Common Stocks (Cost $96,835,784)	124,222,700

PRINCIPAL AMOUNT IN THOUSANDS			COUPON RATE	MATURITY DATE
		*Corporate Bonds (7.9%)*
		Advertising Services (0.1%)
$	100	WPP Finance (United Kingdom)	8.00%	09/15/14	115,008

		Aerospace/Defense (0.1%)
81		Systems 2001 Asset Trust (144A) (Cayman Islands) (d)	6.664	09/15/13	85,542

		Agricultural Chemicals (0.1%)
85		Mosaic Co. (The) (144A) (d)	7.625	12/01/16	93,276
65		Potash Corp. of Saskatchewan, Inc. (Canada)	5.875	12/01/36	63,988
					157,264
		Agricultural Operations (0.0%)
35		Bunge Ltd. Finance Corp.	8.50	06/15/19	40,755

		Airlines (0.1%)
145		America West Airlines LLC (Series 011G) (AMBAC Insd)	7.10	04/02/21	127,882

		Auto - Cars/Light Trucks (0.0%)
$	60	Daimler Finance North America LLC	7.30%	01/15/12	$	65,361

		Beverages - Wine/Spirits (0.0%)
25		Constellation Brands, Inc.	7.25	09/01/16	25,813

		Biotechnology (0.0%)
60		Biogen Idec, Inc.	6.875	03/01/18	65,858

		Brewery (0.1%)
25		Anheuser-Busch InBev Worldwide, Inc. (144A) (d)	5.375	11/15/14	27,105
50		Anheuser-Busch InBev Worldwide, Inc. (144A) (d)	7.20	01/15/14	57,330
95		FBG Finance Ltd. (144A) (Australia) (d)	5.125	06/15/15	100,256
					184,691
		Building Product - Cement/Aggregation (0.1%)
75		CRH America, Inc.	6.00	09/30/16	80,694
30		Holcim US Finance Sarl & Cie SCS (144A) (Luxembourg) (d)	6.00	12/30/19	31,212
					111,906
		Building Societies (0.1%)
170		Nationwide Building Society (144A) (United Kingdom) (d)	6.25	02/25/20	173,655

		Cable/Satellite TV (0.1%)
50		COX Communications, Inc. (144A) (d)	8.375	03/01/39	62,730
45		CSC Holdings LLC	7.625	07/15/18	47,250
30		DIRECTV Holdings LLC / Financing Co., Inc. (144A) (d)	5.875	10/01/19	31,277
30		DIRECTV Holdings LLC / Financing Co., Inc.	7.625	05/15/16	33,642
					174,899
		Capital Markets (0.2%)
245		Goldman Sachs Group, Inc. (The)	6.15	04/01/18	259,639
80		Goldman Sachs Group, Inc. (The)	6.75	10/01/37	80,148
					339,787
		Commercial Banks (0.2%)
50		BB&T Corp. (MTN)	6.85	04/30/19	56,943
105		PNC Funding Corp.	5.125	02/08/20	105,974
270		Wells Fargo & Co.	5.625	12/11/17	286,881
					449,798
		Commercial Bank - Eastern U.S. (0.0%)
60		PNC Funding Corp.	6.70	06/10/19	67,162

		Commercial Banks - Non-U.S. (0.5%)
175		Barclays Bank PLC (United Kingdom)	6.75	05/22/19	193,936
110		Commonwealth Bank of Australia (144A) (Australia) (d)	5.00	10/15/19	110,761
25		Credit Suisse (Switzerland)	6.00	02/15/18	26,511
40		Credit Suisse AG (Switzerland)	5.40	01/14/20	40,389
130		HBOS PLC (144A) (United Kingdom)(d)	6.75	05/21/18	119,625
115		National Australia Bank Ltd. (144A) (Australia) (d)	3.75	03/02/15	115,586
160		Rabobank Nederland NV (144A) (Netherlands) (d)	4.75	01/15/20	160,138
100		Royal Bank of Scotland PLC (The) (United Kingdom)	4.875	03/16/15	100,084
100		Svenska Handelsbanken AB (144A) (Sweden) (d)	5.125	03/30/20	100,208
75		Westpac Banking Corp. (Australia)	4.20	02/27/15	77,288
					1,044,526
		Commercial Banks - Southern U.S. (0.0%)
60		Regions Financial Corp.	7.75	11/10/14	63,189

		Commercial Services & Supplies (0.0%)
80		Waste Management, Inc.	6.125	11/30/39	79,665

		Computers & Peripherals (0.1%)
$	100	International Business Machines Corp.	7.625%	10/15/18	$	123,319

		Consumer Finance (0.1%)
70		American Express Co.	8.125	05/20/19	84,926

		Diversified Financial Services (0.7%)
135		Bank of America Corp. (Series L)	5.65	05/01/18	136,795
145		Bank of America Corp.	5.75	12/01/17	148,894
110		Citigroup, Inc. (b)	5.875	05/29/37	99,404
185		Citigroup, Inc. (b)	6.125	11/21/17	190,592
70		Citigroup, Inc. (b)	6.125	05/15/18	71,639
70		Citigroup, Inc. (b)	8.50	05/22/19	81,837
60		General Electric Capital Corp.	5.50	01/08/20	61,331
215		General Electric Capital Corp.	5.625	05/01/18	225,041
225		General Electric Capital Corp. (Series G)	6.00	08/07/19	238,177
30		JPMorgan Chase & Co.	6.00	01/15/18	32,622
65		UBS AG/Stamford Branch (Switzerland)	5.875	12/20/17	67,422
					1,353,754
		Diversified Manufactured Operation (0.2%)
20		Bombardier, Inc. (144A) (Canada)(d)	7.50	03/15/18	20,950
40		Bombardier, Inc. (144A) (Canada)(d)	7.75	03/15/20	42,000
90		Cooper US, Inc.	5.25	11/15/12	97,678
200		Tyco Electronics Group SA (Luxembourg)	5.95	01/15/14	215,743
					376,371
		Diversified Minerals (0.2%)
100		Anglo American Capital PLC (144A) (United Kingdom) (d)	9.375	04/08/19	127,577
95		Rio Tinto Finance USA Ltd. (Australia)	9.00	05/01/19	122,126
60		Vale Overseas Ltd. (Cayman Islands)	5.625	09/15/19	62,258
25		Vale Overseas Ltd. (Cayman Islands)	6.875	11/10/39	26,029
					337,990
		Diversified Telecommunication Services (0.2%)
95		AT&T, Inc.	6.15	09/15/34	94,142
155		AT&T, Inc.	6.30	01/15/38	157,810
15		Verizon Communications, Inc.	5.85	09/15/35	14,647
80		Verizon Communications, Inc.	6.35	04/01/19	88,730
65		Verizon Communications, Inc.	8.95	03/01/39	88,420
					443,749
		Electric - Integrated (0.4%)
120		CMS Energy Corp.	6.25	02/01/20	119,177
125		Enel Finance International SA (144A) (Luxembourg) (d)	5.125	10/07/19	123,769
150		Exelon Generation Co. LLC	5.20	10/01/19	151,813
100		NiSource Finance Corp.	6.125	03/01/22	104,555
75		NiSource Finance Corp.	6.80	01/15/19	81,670
75		Ohio Power Co. (Series 1)	5.375	10/01/21	76,723
55		PPL Energy Supply LLC	6.30	07/15/13	60,341
35		PPL Energy Supply LLC	6.50	05/01/18	37,353
80		Progress Energy, Inc.	7.05	03/15/19	90,424
					845,825
		Electric Utilities (0.1%)
140		FirstEnergy Solutions Corp.	6.05	08/15/21	140,466

		Electronic Equipment, Instruments & Components (0.1%)
50		Agilent Technologies, Inc.	5.50	09/14/15	53,661
30		Corning, Inc.	6.625	05/15/19	33,333
					86,994
		Electronic Forms (0.0%)
60		Adobe Systems, Inc.	4.75	02/01/20	59,049

		Enterprise Software/Service (0.0%)
$	15	CA, Inc.	5.375%	12/01/19	$	15,190

		Finance - Auto Loans (0.0%)
35		Nissan Motor Acceptance Corp. (144A) (d)	4.50	01/30/15	35,126

		Finance - Consumer Loans (0.0%)
75		HSBC Finance Corp.	6.375	10/15/11	79,828

		Finance - Credit Card (0.1%)
110		American Express Credit Corp. (Series C)	7.30	08/20/13	123,559

		Finance - Investment Banker/Broker (0.4%)
60		Bear Stearns Cos. LLC (The)	6.40	10/02/17	66,382
200		Bear Stearns Cos. LLC (The)	7.25	02/01/18	231,491
45		Credit Suisse USA, Inc.	5.125	08/15/15	48,248
125		Macquarie Group Ltd. (144A) (Australia) (d)	6.00	01/14/20	124,913
225		Merrill Lynch & Co., Inc. (MTN)	6.875	04/25/18	242,852
105		TD Ameritrade Holding Corp.	5.60	12/01/19	106,275
					820,161
		Finance - Other Services (0.0%)
80		NASDAQ OMX Group, Inc. (The)	5.55	01/15/20	79,706

		Food - Miscellaneous/Diversified (0.1%)
30		ConAgra Foods, Inc.	7.00	10/01/28	32,810
55		ConAgra Foods, Inc.	8.25	09/15/30	67,631
					100,441
		Food - Retail (0.0%)
15		Delhaize America, Inc.	9.00	04/15/31	19,132
50		Delhaize Group SA (Belgium)	5.875	02/01/14	54,720
					73,852
		Food Products (0.1%)
20		Kraft Foods, Inc.	5.375	02/10/20	20,366
180		Kraft Foods, Inc.	7.00	08/11/37	198,197
					218,563
		Health Care Providers & Services (0.1%)
80		UnitedHealth Group, Inc.	6.00	02/15/18	85,550

		Independent Power Producer (0.0%)
45		NRG Energy, Inc.	8.50	06/15/19	45,788

		Industrial Conglomerates (0.0%)
80		General Electric Co.	5.25	12/06/17	84,040

		Insurance (0.0%)
50		Principal Financial Group, Inc.	8.875	05/15/19	60,141

		Investment Management/Advisor Services (0.0%)
30		Ameriprise Financial, Inc.	5.30	03/15/20	30,408

		Life/Health Insurance (0.1%)
75		Pacific LifeCorp (144A) (d)	6.00	02/10/20	73,340
85		Prudential Financial, Inc. (MTN)	4.75	09/17/15	87,592
40		Prudential Financial, Inc. (MTN)	6.625	12/01/37	42,094
20		Prudential Financial, Inc. (Series D)	7.375	06/15/19	22,975
					226,001
		Media (0.3%)
35		Comcast Corp.	5.15	03/01/20	35,382
115		Comcast Corp.	5.70	05/15/18	122,132
15		Comcast Corp.	6.45	03/15/37	15,325
30		Comcast Corp.	6.50	01/15/15	33,804
20		Time Warner Cable, Inc.	6.75	07/01/18	22,383
25		Time Warner Cable, Inc.	6.75	06/15/39	26,311
25		Time Warner Cable, Inc.	8.25	04/01/19	30,302
65		Time Warner Cable, Inc.	8.75	02/14/19	80,742
40		Time Warner, Inc.	5.875	11/15/16	43,762

$	60	Time Warner, Inc.	7.70%	05/01/32	$	69,447
80		Viacom, Inc.	6.875	04/30/36	85,079
					564,669
		Medical - Biomedical/Genetics (0.0%)
60		Life Technologies Corp.	6.00	03/01/20	61,547

		Medical - HMO (0.0%)
15		WellPoint, Inc.	7.00	02/15/19	17,038

		Medical Instruments (0.1%)
125		Boston Scientific Corp.	6.00	01/15/20	118,300

		Metals & Mining (0.0%)
30		Freeport-McMoRan Copper & Gold, Inc.	8.375	04/01/17	33,419
20		Newmont Mining Corp.	5.125	10/01/19	20,157
					53,576
		Mortgage Banks (0.1%)
100		Abbey National Treasury Services PLC (144A) (United Kingdom) (d)	3.875	11/10/14	99,539

		Multi - line Insurance (0.1%)
75		Aegon N.V. (Netherlands)	4.625	12/01/15	75,758
50		Allstate Corp. (The) (e)	7.45	05/16/19	58,773
10		MetLife, Inc. (f)	7.717	02/15/19	11,696
					146,227
		Multimedia (0.1%)
100		News America, Inc.	7.85	03/01/39	119,054
45		Vivendi SA (144A) (France) (d)	6.625	04/04/18	48,820
					167,874
		Non-Hazardous Waste Disposal (0.0%)
60		Republic Services, Inc. (144A) (d)	5.50	09/15/19	61,562

		Office Automation & Equipment (0.0%)
15		Xerox Corp.	5.625	12/15/19	15,447
45		Xerox Corp.	6.35	05/15/18	48,825
					64,272
		Oil Companies - Exploration & Production (0.1%)
100		Gaz Capital SA (144A) (Luxembourg) (d)	6.51	03/07/22	99,880
30		Pioneer Natural Resources Co.	6.65	03/15/17	30,143
95		Questar Market Resources, Inc.	6.80	04/01/18	104,146
					234,169
		Oil Company - Integrated (0.0%)
80		Petrobras International Finance Co. (Cayman Islands)	5.75	01/20/20	82,359

		Oil, Gas & Consumable Fuels (0.0%)
75		Hess Corp.	6.00	01/15/40	74,317

		Oil - Field Services (0.1%)
150		Weatherford International Ltd. (Switzerland)	9.625	03/01/19	190,106

		Paper & Related Products (0.1%)
10		International Paper Co.	7.30	11/15/39	10,720
75		International Paper Co.	7.50	08/15/21	85,391
					96,111
		Pharmacy Services (0.1%)
110		Medco Health Solutions, Inc.	7.125	03/15/18	125,606

		Pipelines (0.4%)
55		CenterPoint Energy Resources Corp.	6.25	02/01/37	53,654
25		CenterPoint Energy Resources Corp. (Series B)	7.875	04/01/13	28,646
20		Colorado Interstate Gas Co.	6.80	11/15/15	22,430
50		El Paso Corp. (MTN)	8.25	02/15/16	53,625
75		Energy Transfer Partners LP	8.50	04/15/14	87,325

$	35	Enterprise Products Operating LLC	5.25%	01/31/20	$	35,385
90		Enterprise Products Operating LLC (Series N)	6.50	01/31/19	99,624
50		Kinder Morgan Energy Partners LP	5.95	02/15/18	53,712
135		Kinder Morgan Finance Co. ULC (Canada)	5.70	01/05/16	132,975
60		Plains All American Pipeline LP / PAA Finance Corp.	6.70	05/15/36	61,838
60		Plains All American Pipeline LP / PAA Finance Corp.	8.75	05/01/19	73,318
50		Spectra Energy Capital LLC	7.50	09/15/38	56,873
55		Texas Eastern Transmission LP	7.00	07/15/32	61,740
					821,145
		Property Trust (0.0%)
75		WEA Finance LLC / WT Finance Aust Pty Ltd. (144A) (d)	6.75	09/02/19	80,172

		Real Estate Operation/Development (0.0%)
50		Brookfield Asset Management, Inc. (Canada)	5.80	04/25/17	48,847

		Reinsurance (0.1%)
60		Platinum Underwriters Finance, Inc. (Series B)	7.50	06/01/17	64,574
60		Reinsurance Group of America, Inc.	6.45	11/15/19	62,808
					127,382
		REITS - Apartments (0.0%)
60		AvalonBay Communities, Inc. (MTN)	6.10	03/15/20	63,897

		REITS - Diversified (0.1%)
65		Duke Realty LP	6.75	03/15/20	66,276
60		Vornado Realty LP	4.25	04/01/15	59,611
					125,887
		REITS - Health Care (0.0%)
60		Health Care, Inc. (g)	6.125	04/15/20	60,298

		REITS - Office Property (0.0%)
75		Boston Properties LP	5.875	10/15/19	78,000

		REITS - Regional Malls (0.1%)
25		Simon Property Group LP	5.65	02/01/20	24,437
100		Simon Property Group LP	6.75	05/15/14	109,505
					133,942
		Retail - Drug Store (0.1%)
152		CVS Pass-Through Trust	6.036	12/10/28	150,785

		Retail - Mail Order (0.0%)
15		QVC, Inc. (144A) (d)	7.125	04/15/17	15,169

		Retail - Regional Department Store (0.1%)
95		JC Penney Corp., Inc.	6.375	10/15/36	88,944

		Retail - Restaurants (0.1%)
60		Yum! Brands, Inc.	5.30	09/15/19	61,544
30		Yum! Brands, Inc.	6.25	03/15/18	32,942
5		Yum! Brands, Inc.	6.875	11/15/37	5,446
					99,932
		Satellite Telecommunication (0.0%)
50		Intelsat Subsidiary Holding Co. Ltd. (Bermuda)	8.50	01/15/13	51,000

		Schools (0.0%)
65		Duke University	5.15	04/01/19	69,058

		Semiconductor Equipment (0.0%)
45		KLA-Tencor Corp.	6.90	05/01/18	48,891

		Special Purpose Entity (0.3%)
190		AIG SunAmerica Global Financing (144A) (d)	6.30	05/10/11	195,731
140		Farmers Exchange Capital (144A) (d)	7.05	07/15/28	129,246
65		Harley-Davidson Funding Corp. (144A) (d)	6.80	06/15/18	65,000
40		New Communications Holdings, Inc. (144A) (d)(g)	8.50	04/15/20	40,500

$	130	Xlliac Global Funding (144A) (d)	4.80%	08/10/10	$	131,307
					561,784
		Specialty Retail (0.1%)
90		Home Depot, Inc.	5.875	12/16/36	87,627

		Steel - Producers (0.1%)
155		ArcelorMittal (Luxembourg)	9.85	06/01/19	197,320

		Super - Regional Banks - U.S. (0.1%)
155		Capital One Financial Corp.	6.75	09/15/17	171,530
95		KeyCorp (MTN)	6.50	05/14/13	101,523
					273,053
		Telecommunication Services (0.1%)
50		Qwest Corp.	6.50	06/01/17	52,313
40		Qwest Corp.	6.875	09/15/33	38,800
100		Sable International Finance Ltd. (144A) (Cayman Islands) (d)	7.75	02/15/17	104,500
					195,613
		Telephone - Integrated (0.2%)
25		CenturyTel, Inc. (Series Q)	6.15	09/15/19	24,809
45		Deutsche Telekom International Finance BV (Netherlands)	8.75	06/15/30	57,785
60		Telecom Italia Capital SA (Luxembourg)	6.999	06/04/18	64,991
90		Telecom Italia Capital SA (Luxembourg)	7.175	06/18/19	97,330
125		Telefonica Europe BV (Netherlands)	8.25	09/15/30	153,757
					398,672
		Television (0.1%)
75		CBS Corp.	8.875	05/15/19	90,748

		Tobacco (0.1%)
60		Altria Group, Inc.	9.25	08/06/19	73,027
50		BAT International Finance PLC (144A) (United Kingdom) (d)	9.50	11/15/18	64,853
75		Philip Morris International, Inc.	5.65	05/16/18	80,882
					218,762
		Transport - Rail (0.0%)
25		CSX Corp.	6.15	05/01/37	25,280
40		Union Pacific Corp.	6.125	02/15/20	43,417
					68,697
		Total Corporate Bonds (Cost $14,907,164)			15,616,455

		Foreign Government Obligations (0.2%)
230		Brazilian Government International Bond (Brazil)	6.00	01/17/17	251,045
25		Peruvian Government International Bond (Peru)	7.125	03/30/19	29,088
105		Republic of Italy (Italy)	6.875	09/27/23	120,693
		Total Foreign Government Obligations (Cost $377,644)			400,826

		*U.S. Government Agencies & Obligations (11.3%)*
		Commercial Banks - Central U.S. - FDIC Guaranteed (0.1%)
200		KeyBank NA	3.20	06/15/12	207,816

		Diversified Financial Services - FDIC Guaranteed (1.5%)
1,200		Citigroup Funding, Inc. (h)	2.25	12/10/12	1,220,267
300		General Electric Capital Corp.	2.20	06/08/12	305,730
1,200		General Electric Capital Corp. (Series G)	2.625	12/28/12	1,233,101
200		GMAC, Inc.	2.20	12/19/12	203,106
					2,962,204
		Finance - Consumer Loans - FDIC Guaranteed (0.5%)
1,000		John Deere Capital Corp.	2.875	06/19/12	1,035,242

		U.S. Government Agencies (1.1%)
		Federal Home Loan Mortgage Corp.

$	150		3.75%	03/27/19	$	146,606
400			4.875	06/13/18	428,764
250			6.75	03/15/31	304,388
		Federal National Mortgage Assoc.
500			2.875	12/11/13	513,115
700			4.375	10/15/15	747,810
					2,140,683
		U.S. Government Obligations (8.1%)
		U.S. Treasury Bonds
1,715			3.50	02/15/39	1,388,347
350			4.25	05/15/39	324,406
200			4.375	11/15/39	189,188
1,113			6.00	02/15/26	1,312,993
		U.S. Treasury Notes
2,500			1.375	09/15/12	2,506,252
325			1.75	01/31/14	321,420
1,700			1.75	03/31/14	1,675,032
200			2.25	01/31/15	197,891
5,950			2.375	10/31/14	5,943,961
300			2.625	12/31/14	302,250
1,000			2.75	02/15/19	928,516
450			3.625	08/15/19	444,657
480			3.75	11/15/18	483,788
					16,018,701
		Total U.S. Government Agencies & Obligations (Cost $22,814,740)			22,364,646

		Asset-Backed Securities (0.2%)
		Auto Floor Plan Other (0.1%)
100		GE Dealer Floorplan Master Note Trust 2009-2A A (144A) (d)	1.79(i)	10/20/14	100,068

		Automobile Sequential (0.0%)
34		Harley-Davidson Motorcycle Trust 2005-2 A2	4.07	02/15/12	34,472
43		Harley-Davidson Motorcycle Trust 2005-3 A2	4.41	06/15/12	43,760
					78,232
		Automotive (0.1%)
175		Ford Credit Floorplan Master Owner Trust 2010-3 A2 (144A) (d)	1.93(i)	02/15/17	176,469
		Total Asset-Backed Securities (Cost $352,768)			354,769

		*U.S. Government Agencies - Mortgage-Backed Securities (0.0%)*
		Federal Home Loan Mortgage Corp. (ARM) (0.0%)
2			6.50	05/01/29–12/01/31	2,853

		Federal National Mortgage Assoc. (0.0%)
2			6.50	11/01/29	2,507

		Total U.S. Government Agencies - Mortgage-Backed Securities (Cost $5,040)			5,360

		Municipal Bonds (0.2%)
		General Obligation (0.1%)
75		Chicago Transit Authority Ser B (g)	6.20	12/01/40	75,013
70		City of New York Ser G-1	5.968	03/01/36	69,721
25		State of California	6.65	03/01/22	26,077
45		State of California Various Purpose General Obligation Bonds	5.95	04/01/16	46,869
					217,680
		Power Conversion/Supply Equipment (0.1%)
95		Municipal Electric Authority of Georgia Plant Vogtle	6.655	04/01/57	94,959

$	50	Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4 Ser 2010 J	6.637%	04/01/57	$	49,857
					144,816
		Transportation (0.0%)
85		Illinois State Toll Highway Authority (The) 2009 (Series A)	6.184	01/01/34	86,416
		Total Municipal Bonds (Cost $446,832)			448,912

		Short-Term Investments (17.1%)
		U.S. Government Obligation (j)(k) (0.2%)
450		U.S. Treasury Bills (Cost $449,934)	0.152	05/06/10	449,934

NUMBER OF SHARES (000)
	Investment Company (l) (16.9%)
33,272	Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (Cost $33,271,660)			33,271,660

	Total Short-Term Investments (Cost $33,721,594)			33,721,594

	Total Investments *(Cost $169,461,566) (m)(n)*	100.0	%	197,135,262
	Liabilities in Excess of Other Assets	0.0		(52,117		)
	Net Assets	100.0	%	$	197,083,145

ADR	American Depositary Receipt.
ARM	Adjustable Rate Mortgage. Interest rate in effect as of March 31, 2010.
FDIC	Federal Deposit Insurance Corporation.
MTN	Medium Term Note.
(a)	Non-income producing security.
(b)	For the three months ended March 31, 2010, the cost of purchases and the proceeds from sales of Citigroup, Inc., common stock and corporate bond, an affiliate of the Investment Adviser, Administrator, and Distributor, was $1,501,056, and $58,951, respectively, including net realized gains of $3,884.
(c)	Consists of one or more class of securities traded together as a unit; stocks with attached warrants.
(d)	Resale is restricted to qualified institutional investors.
(e)	For the three months ended March 31, 2010, there were no transactions in Allstate Corp. (The), corporate bond, an affiliate of the Fund.
(f)	For the three months ended March 31, 2010, the proceeds from sales of MetLife, Inc., corporate bond, an affiliate of the Fund, was $168,463, including net realized gains of $13,075.
(g)	Security purchased on a when-issued basis.
(h)	For the three months ended March 31, 2010 there were no transactions in Citigroup Funding, Inc. U.S. Government Agencies & Obligations, an affiliate of the Investment Adviser, Administrator, and Distributor.
(i)	Floating rate security. Rate shown is the rate in effect at March 31, 2010.
(j)	Purchased on a discount basis. The interest rates shown have been adjusted to reflect a money market equivalent yield.
(k)	A portion of this security has been physically segregated in connection with open future and swap contracts.
(l)	The Fund invests in Morgan Stanley Institutional Liquidity Funds — 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 Funds — Money Market Portfolio — Institutional Class with respect to assets invested by the Fund in Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class.
(m)	Securities have been designated as collateral in connection with securities purchased on a when-issued basis, open future and swap contracts.
(n)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

Bond Insurance:
AMBAC	AMBAC Assurance Corporation.

Futures Contracts Open at March 31, 2010:

NUMBER OF CONTRACTS	LONG/ SHORT	DESCRIPTION, DELIVERY MONTH AND YEAR	UNDERLYING FACE AMOUNT AT VALUE			UNREALIZED APPRECIATION (DEPRECIATION)
79	Long	U.S. Treasury Notes 5 Year, June 2010	$	9,072,656		$	(44,006	)
6	Short	U.S. Treasury Bonds 30 Year, June 2010	(696,750		)	4,117
11	Short	U.S. Treasury Notes 10 Year, June 2010	(1,278,750		)	4,971
21	Short	U.S. Treasury Notes 2 Year, June 2010	(4,556,015		)	3,589
Net Unrealized Depreciation						$	(31,329	)

Credit Default Swap Contracts Open at March 31, 2010:

SWAP COUNTERPARTY & REFERENCE OBLIGATION	BUY/SELL PROTECTION	NOTIONAL AMOUNT (000’s)		INTEREST RATE		TERMINATION DATE	UNREALIZED DEPRECIATION			UPFRONT PAYMENTS			VALUE			CREDIT RATING OF REFERENCE OBLIGATION+ (unaudited)
Bank of America, N.A. Tyco Electronics Ltd.	Buy	$	165	5.00	%	June 20, 2014	$	(22,115	)	$	(6,932	)	$	(29,047	)	BBB-

+Credit Rating as issued by Standard and Poors.

Interest Rate Swap Contracts Open at March 31, 2010

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate	Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Credit Suisse Group	3 Month LIBOR	Receive	2.625	03/11/15	$	4,290	$	13,985
Credit Suisse Group***	3 Month LIBOR	Pay	5.086	12/23/19	2,560		(3,917		)
Credit Suisse Group	3 Month LIBOR	Receive	4.386	12/23/39	614		12,268
Deutsche Bank AG	3 Month LIBOR	Receive	2.898	01/11/15	1,890		(22,453		)
Deutsche Bank AG	3 Month LIBOR	Receive	2.654	03/26/15	2,160		5,767
Deutsche Bank AG***	3 Month LIBOR	Pay	4.40	10/01/16	7,840		(40,533		)
Deutsche Bank AG***	3 Month LIBOR	Receive	4.41	10/03/18	4,218		49,983
UBS AG	3 Month LIBOR	Receive	2.841	01/08/15	200		(1,900		)
Net Unrealized Appreciation							$	13,200

Zero Coupon Swap Contracts Open at March 31, 2010

Swap Counterparty	Notional Amount (000)		Floating Rate Index	Pay/Receive Floating Rate	Termination Date	Unrealized (Depreciation)
Barclays Bank^^	$	710	3 Month LIBOR	Pay	11/15/19	(29,334		)
Barclays Bank^	710		3 Month LIBOR	Receive	11/15/19	(45,263		)
JPMorgan Chase Bank N.A. New York^	735		3 Month LIBOR	Receive	11/15/19	(40,962		)
JPMorgan Chase Bank N.A. New York^	1,330		3 Month LIBOR	Receive	11/15/21	(65,609		)
Total Unrealized Depreciation						$	(181,168	)

LIBOR — London Interbank Offered Rate

^Fund will make payments of $275,331, $279,388 and $589,387 respectively on termination date.

^^Fund will receive payment of $194,966 on termination date.

*** Forward interest rate swap. Periodic payments on specified notional amount with future effective date, unless terminated earlier.

Notes to Portfolio of Investments · March 31, 2010 (unaudited)

Fair Valuation Measurements

· Level 1 — unadjusted 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.)

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at fair value:

	FAIR VALUE MEASUREMENTS AT MARCH 31, 2010 USING
INVESTMENT TYPE	TOTAL			UNADJUSTED QUOTED PRICES IN ACTIVE MARKET FOR IDENTICAL INVESTMENTS (LEVEL 1)			OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)			SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Assets:
Common Stocks
Aerospace & Defense	$	5,511,458		$	5,511,458		—			—
Airlines	2,588,505			2,588,505			—			—
Automobiles	1,450,772			1,450,772			—			—
Biotechnology	9,006,720			9,006,720			—			—
Capital Markets	4,061,112			4,061,112			—			—
Chemicals	2,523,755			2,523,755			—			—
Commercial Banks	1,740,386			1,740,386			—			—
Commercial Services & Supplies	2,667,981			2,667,981			—			—
Communications Equipment	1,824,703			1,824,703			—			—
Computers & Peripherals	5,572,905			5,572,905			—			—
Construction & Engineering	1,847,309			1,847,309			—			—
Consumer Finance	1,689,597			1,689,597			—			—
Diversified Financial Services	5,245,031			5,245,031			—			—
Diversified Telecommunication Services	2,892,254			2,892,254			—			—
Electric Utilities	1,920,916			1,920,916			—			—
Electrical Equipment	2,102,702			2,102,702			—			—
Electronic Equipment, Instruments & Components	1,698,853			1,698,853			—			—
Energy Equipment & Services	3,761,296			3,761,296			—			—
Food & Staples Retailing	1,115,681			1,115,681			—			—
Food Products	1,990,796			1,990,796			—			—
Health Care Equipment & Supplies	2,117,285			2,117,285			—			—
Hotels, Restaurants & Leisure	2,470,838			2,470,838			—			—
Household Durables	3,619,714			3,619,714			—			—
Household Products	759,667			759,667			—			—
Industrial Conglomerates	1,458,730			1,458,730			—			—
Information Technology Services	1,246,656			1,246,656			—			—
Insurance	3,240,599			3,240,599			—			—
Internet Software & Services	2,131,825			2,131,825			—			—
Life Sciences Tools & Services	1,314,806			1,314,806			—			—
Machinery	3,296,213			3,296,213			—			—
Metals & Mining	2,959,497			2,959,497			—			—
Multiline Retail	1,053,967			1,053,967			—			—
Oil, Gas & Consumable Fuels	3,669,209			3,669,209			—			—
Pharmaceuticals	5,302,565			5,302,565			—			—
Real Estate Investment Trusts (REITs)	1,480,136			1,480,136			—			—
Real Estate Management & Development	3,123,527			3,123,527			—			—
Semiconductors & Semiconductor Equipment	5,915,771			5,915,771			—			—
Software	10,721,951			10,721,951			—			—
Specialty Retail	2,287,185			2,287,185			—			—
Tobacco	2,926,144			2,926,144			—			—
Water Utilities	1,913,683			1,913,683			—			—
Total Common Stocks	124,222,700			124,222,700			—			—
Corporate Bonds	15,616,455			—			$	15,616,455		—
Foreign Government Obligations	400,826			—			400,826			—
U.S. Government Agencies & Obligations	22,364,646			—			22,364,646			—
Asset-Backed Securities	354,769			—			354,769			—
U.S. Government Agencies - Mortgage-Backed Securities	5,360			—			5,360			—
Municipal Bonds	448,912			—			448,912			—
Short-Term Investments
U.S. Government Obligation	449,934			—			449,934			—
Investment Company	33,271,660				33,271,660		—			—
Total Short-Term Investments	33,721,594			33,271,660			449,934			—
Futures	12,677			12,677			—			—
Interest Rate Swaps	82,003			—			82,003			—
Total	$	197,229,942		$	157,507,037		$	39,722,905		—

Liabilities:
Futures	$	(44,006	)	$	(44,006	)	—			—
Credit Default Swaps	(22,115		)	—			$	(22,115	)	—
Zero Coupon Swaps	(181,168		)	—			(181,168		)
Interest Rate Swaps	(68,803		)	—			(68,803		)	—
Total	$	(316,092	)	$	(44,006	)	$	(272,086	)	—

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) credit default/interest rate swaps are marked-to-market daily based upon quotations from market makers; (7) listed options are valued at the latest sale price on the exchange on which they are listed unless no sales of such options have taken place that day, in which case they are valued at the mean between their latest bid and ask price; (8) 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 ask 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; (9) certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Trustees; (10) 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 (11) 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, which approximates market value.

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/ Randy Takian
Randy Takian
Principal Executive Officer
May 17, 2010

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/ Randy Takian
Randy Takian
Principal Executive Officer
May 17, 2010

/s/ Francis Smith
Francis Smith
Principal Financial Officer
May 17, 2010

PRINCIPAL
AMOUNT IN
THOUSANDS

Short-Term Investments (13.0%)

Securities Held as Collateral on Loaned Securities

Repurchase Agreements (2.9%)

Bank of America Securities LLC (0.02%, dated 03/31/10, due 04/01/10; proceeds $211,674; fully collateralized by a U.S. Government Agency security at the date of this Portfolio of Investments as follows: Federal Home Loan Mortgage Corp. 5.50% due 12/15/32; valued at $215,907)