Investing With Impact Platform and Select UMA. Balanced Portfolio / Equity Portfolio

(1)

Investing With Impact Platform and

Select UMA

(2)

Overview – Investing With Impact Portfolios

Part I – What is Investing with Impact?

• Timeline of Investing with Impact

• Investing with Impact Approaches Differ

Part II – How Morgan Stanley is Positioned to Help Deliver Impact

• Investing with Impact Resources

Part III – Select UMA Investing with Impact Portfolios

• Consulting Group Investment Process

• Manager Selection and Portfolio Construction

• Balanced and Equity Portfolio Descriptions

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Please refer to Important Information, disclosures and qualifications at the end of this material. INVESTING WITH IMPACT

Part I – What Is Investing With

Impact?

(4)

What Is Investing With Impact?

We define Investing with Impact as an approach that aims to

generate market-rate returns

while demonstrating

positive

environmental and/or social impact.

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The Tradition of Investing With Impact

200s

Norway Government Pension and U.S.’s largest pension, CalPERS, commit to 100% integration of sustainability over 15 years 1935 Morgan Stanley founded 1977

• Congress passes CRA Act to reduce discriminatory credit practices against low-income

neighborhoods • Pax World launched first

socially responsible investing mutual fund • Sullivan Principles of

Action and Divestment announced due to apartheid in South Africa

1984

U.S. SIF, the sustainable investing industry association, founded 1993 $625 billion screened to exclude investment in South Africa as a result of apartheid

1990

Domini Social Index created (now MSCI KLD 400 Social Index)

1898

Quakers Friends Fiduciary corporation founded and adopts no weapons, alcohol or tobacco investment policy

1968

Ford Foundation creates Program-Related Investments to place endowment funds directly into income-generating projects with a social purpose

1973

Interfaith Center on Corporate Responsibility founded and files first shareholder resolution

2010

Harvard launches Initiative for Responsible Investment (IRI) – previously at Boston College

2006

• Rockefeller Foundation launches major Impact Investing approach and the term emerges globally • UN Principles for

Responsible Investment launched – assets under management by signatories is $4 trillion 2009 Bloomberg adds significant sustainability news and ESG data coverage

2012

• Morgan Stanley Launches

Investing With Impact Platform in Wealth Management

• 350 org catalyzes fossil-fuel divesting campaigns across college campuses

• U.S. SIF Trends Report: $3.74 trillion in U.S. sustainably managed assets

2011

• White house convenes investors, policymakers, entrepreneurs focused on impact investing • Sustainable Accounting Standards Board launched; Michael Bloomberg named Chair in 2014 2014

U.S. SIF Trends Report: $6.5 trillion in U.S. sustainably managed assets, representing 76% growth from 2012

2013

Morgan Stanley Launches

Institute for Sustainable Investing in Global Sustainable Finance

2015

• Pope Francis releases Encyclical Letter that includes call to action on climate change mitigation • UN Principles for

Responsible Investment assets under management by signatories reaches $59 trillion AUM, a 29% year-on-year increase

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Investing With Impact Approaches Differ

Morgan Stanley’s Investing with Impact Framework emphasizes the different approaches

to aligning investment decisions with impact priorities

Minimize Objectionable Impact

Targeted Impact

PUBLIC MARKETS

PRIVATE MARKETS

• Differentiated by impact approach,

regional focus, liquidity and impact

reporting

• May have investor restrictions

• A private equity fund focused on

emerging consumers or project

level renewable energy investment

.

VALUES ALIGNMENT

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE (ESG) INTEGRATION

THEMATIC EXPOSURE

IMPACT INVESTING

DEF

IN

IT

ION

IM

PAC

T

IN

V

ES

TM

EN

T

CH

AR

AC

TER

IS

TI

CS

IN

VE

ST

ME

N

T

EX

AM

PLES

•

Allocating to investment funds

focused on private enterprises

structured to deliver specific

positive social and/or

environmental impacts

•

Managing exposures by

intentionally avoiding

investments based on specific

criteria

•

Public equity, Public fixed

income, alternatives

•

Differentiated by restriction

criteria and degree of

shareholder advocacy

•

Not proactively seeking

environmental and social impact

•

Mutual fund that excludes

companies from buy universe

(e.g. tobacco, firearms, coal

mining companies)

•

Proactively considering ESG

criteria alongside financial

analysis to identify

opportunities and risks during

investment process

•

Public equity and public

fixed income

•

Differentiated by ESG integration

process and degree of

shareholder advocacy

•

May also include screens

•

Separately Managed Account

(SMA) incorporating analysis of

ESG performance into

stock selection process

•

Focusing on themes and sectors

dedicated to solving

sustainability-related domestic

and global challenges

•

Public equity and public

fixed income

•

Differentiated by macro-analysis,

sustainability research and

sector focus

•

Exchange-traded fund (ETF)

tracking index of renewable

energy companies

•

Differentiated by impact

approach, regional focus,

liquidity and impact reporting

•

May have investor restrictions

•

A private equity fund focused

on emerging consumers or

project level renewable

energy investment.

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Part II – How Morgan Stanley Is

(8)

Morgan Stanley Is Well Positioned to Help Deliver

“Delivering innovative

solutions for our clients that

align their personal values

with their financial goals is an

important focus for Morgan

Stanley, and I believe we are

uniquely suited to do this.”

James Gorman

Morgan Stanley Chairman and CEO

CLIENT DRIVEN APPROACH

Customized solutions based on clients’ financial and impact goals

INDUSTRY LEADERSHIP

Investing with Impact Platform launched in 2012:

• A suite of 125+ products that seek to deliver some of our most attractive

opportunities across asset classes

• Multi-asset class model portfolio solutions

• Single stock equity portfolio solution

INTEGRATED PROCESS

The Investing with Impact Select UMA

®

_{portfolios leverage the resources of}

the firm

DEPTH OF RESOURCES

Morgan Stanley’s Institute for Sustainable Investing provides thought

leadership for the Investing with Impact Platform

DEPTH OF RELATIONSHIPS

Collaboration with partners in business, academia and non-governmental

organizations to develop market-based solutions to global challenges

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Leveraging the Firm's Key Resources

Key benefits of Morgan Stanley

• Dedicated team of 45+ professionals focused on

investment manager selection for the firm’s

investment advisory platform

• Process-driven approach that seeks quality

managers and strategies designed to optimize

portfolio return potential

• Quantitative and qualitative tools used for all

manager assessments

• Extensive third-party manager due diligence

• Industry leader in product innovation tailored to

clients needs

• Exclusive product offerings

• Access to Firm thought leadership

Morgan Stanley provides investment consulting to $795 billion

1 _{in client assets in advisory}

programs. Our clients can benefit from the scope and scale of resources in evaluating

and selecting investments that only an industry leader can provide:

1. Cerulli Associates. 4Q2015 Summary, Managed Account Research.

2. Information from of Global Investment Manager Analysis team as of May 2015 and subject to change.

Assets Under

Management

$795

Billion

#1

Managed

Accounts

Program

by Assets

$2Tn

In total client

assets (MS)

1,300+

Actively Analyzed

Strategies

450+

Onsite Manager

Visits/Year

Investing with Impact

Platform products

(10)

Investing With Impact Thought Leadership

(11)

Part III – Select UMA

®

_{Investing With}

(12)

Investment Process Is Systematic and Risk-Aware

• Market analysis and model portfolio

allocation guidance based on the

Morgan Stanley Wealth Management

Global Investment Committee

• Establish strategic framework

• Opportunistically over- and underweight

asset classes

• Due diligence conducted across separately

managed accounts, mutual funds, and ETFs

(both traditional and alternative strategies)

• Dedicated third-party manager

assessments with opinion-based analysis

• Evaluate managers’ approach using

the Investing with Impact Framework

• Utilize multi-factor analysis to

determine optimal weightings

• Emphasize high-conviction, complementary

independent, third-party managers

• Dedicated team of portfolio

construction professionals

• Identify active risks in the portfolio

• Seek to allocate risk efficiently

• Analyze variations in risk, managers and their strategies

Risk

Management

Allocation

Asset

Manager

Analysis

Portfolio

Construction

The Investing with Impact Portfolios on the Select UMA® platform are constructed with

the same risk-aware process leveraged for all firm-discretionary portfolios.

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Managers Undergo Extensive Analysis Prior to Inclusion

‘BEST FIT’ MANAGERS DETERMINED BY MANAGER SOLUTIONS TEAM

1

MANAGER UNIVERSE

Global Investment Manager Analysis leverages quantitative, qualitative and

operational due diligence conducted by over 45 dedicated analysts on more

than 1,300 investment strategies, including separately managed accounts,

mutual funds and ETFs that are available on our advisory platform.

QUANTITATIVE FILTER

•

Peer analysis

•

Rolling period returns-

based style analysis

•

Modern Portfolio Theory

statistics

•

Holdings-based

attribution

•

Risk-based analysis

QUALITATIVE TEST

•

Firm/People

•

Organizational structure

•

Competitive advantage

•

Investment philosophy

•

Process and strategy

•

Performance expectations

Expresses

thematic view

Complements

other holdings

Exhibits consistent

process and

contribution to

overall portfolio

risk

Presents tactical

opportunity

Working List

Filter for

Asset Class and

Investment Style

Identify managers with a clear approach to Investing with Impact

1. Manager Solutions is the Investing with Impact strategies’ portfolio manager

Morgan Stanley leverages multiple professional teams to determine the third-party asset

managers and investment products appropriate for inclusion.

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Select UMA Portfolio Construction

No Direct

Mission

Alignment

Values

Alignment

ESG-Integration

Sector

Exposure

ESG-INTEGRATED

Examples of Environmental, Social and Governance criteria

include the corporate carbon footprint, employee health

and safety, workforce diversity policies, business ethics.

SECTOR EXPOSURE

Invest in themes and sectors creating solutions to targeted

ESG issues. For example: resource scarcity, community

development including affordable housing.

VALUES-ALIGNMENT

Exclude companies and/or sectors that are in opposition

to values. For example: tobacco, alcohol, weapons.

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Select UMA Investing With Impact

Balanced Portfolio

Equity Portfolio

(16)

Select UMA

®

_{Investing With Impact Portfolios}

SELECT UMA PLATFORM

The Select UMA program offered by Morgan Stanley’s

Consulting Group combines personalized investment

planning, in-depth manager analysis, professional asset

management services, a variety of investment products

and a diversified portfolio- all within a single

investment account.

Select UMA Advantages:

• One account

• One integrated asset allocation plan

• One contract

• One monthly statement

• One comprehensive performance report

• One consolidated year-end tax summary

PORTFOLIO MANAGER – MANAGER SOLUTIONS TEAM

The Manager Solutions team is made up of experienced

portfolio managers, investment advisor analysts and other

investment professionals drawn from the firm’s

significant resources.

The team provides tailored strategies and a wholly

integrated investment approach. They leverage the firm’s

strategic and tactical asset allocation advice, manager

analysis and portfolio construction capabilities to support a

suite of discretionary investment solutions. The team uses a

disciplined investment process and sophisticated risk

management framework to develop portfolios for clients

who invest through certain investment advisory programs

including the Firm Discretionary Select UMA Investing with

Impact Model Portfolios.

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UMA Portfolio: Investing With Impact Balanced

OVERVIEW

Building on key strengths of Morgan Stanley, including general asset allocation advice,

manager analysis and the Investing with Impact Platform, this Balanced portfolio

targeting 60% equity and 40% fixed income combines highly regarded third-party

managers across a range of Investing with Impact approaches into a well-diversified

portfolio.

PROCESS

•

Asset allocation:

Utilizing the thoughtful analysis driven by the firm’s Global

Investment Committee

•

Manager Selection

: In-depth due diligence conducted by the Global Investment

Manager Analysis team

•

Portfolio Construction:

Utilize complementary manager strategies and risk

management (portfolio does not include alternative investments); if conditions

warrant, the portfolio manager may include strategies that are not impact focused

•

Investing with Impact:

Approaches can include Values Alignment, ESG-Integrated

and Sector Exposure

DIFFERENTIATORS

•

Portfolio solution for clients with a range of Investing with Impact objectives

•

Eligible investments can include separately managed accounts, mutual funds and

exchange-traded funds (ETFs) in one account.

•

Independent managers with experience demonstrating positive

environmental/social impact

•

Automatic account rebalancing and monitoring

Objective:

Deliver a Balanced portfolio targeting 60% equity and 40% fixed income that seeks to achieve

1) positive environmental and social impact, and 2) competitive risk-adjusted returns over the long-term.

1. Information as of January 22, 2016. Subject to change.

ASSET ALLOCATION

1

US Large Cap

Growth Equity

7%

US Large Cap

_{Core Equity}

10%

US Large Cap

Value Equity

8%

US Mid Cap

Value Equity

3%

US Small Cap

Core Equity

2%

International

Equity

27%

US Short Term

Fixed Income

22%

US Core Fixed

Income

21%

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UMA Portfolio: Investing With Impact Balanced

Manager Name

Strategy

Asset Class

Allocation (%) Investing With Impact Focus

ClearBridge Investments

ClearBridge Multi-Cap Growth

_{ESG SMA}

US Large Cap Growth

7.0 ESG-Integrated, Shareholder Engagement

Trillium Asset Management

Trillium Large Cap Core SMA

US Large Cap Core

6.0 ESG-Integrated, Shareholder Engagement

Neuberger Berman

NB Socially Responsible Investing

_{Mutual Fund (NBSLX)}

US Large Cap Core

4.0 ESG-Integrated, Shareholder Engagement

ClearBridge Investments

ClearBridge Large Cap Value

_{ESG SMA}

US Large Cap Value

8.0 ESG-Integrated, Shareholder Engagement

Ariel Investments

Ariel Appreciation Mutual

_{Fund (CAAPX)}

US Mid Cap Value

3.0 Values Alignment

Pax World Investments

Pax World Small Cap Fund (PXSIX)

US Small Cap Core

2.0 ESG-Integrated, Shareholder Engagement

Domini Social Investments

Domini International Social

_{Equity Fund (DOMIX)}

International Equity

27.0 ESG-Integrated, Shareholder Engagement

Vanguard

Vanguard Short Term Bond ETF (BSV)

US Short-Term Fixed Income

22.0 –

Community Capital

CRA Qualified Investment Mutual Fund

_(CRANX)

US Core Fixed Income

21.0 ESG-Integrated, Sector Exposure

TOTAL GLOBAL EQUITIES

57.0 TOTAL GLOBAL FIXED INCOME

43.0 TOTAL PORTFOLIO

100.0

Notes:

As of January 22, 2016.

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UMA Portfolio: Investing With Impact Balanced

KEY STATISTICS

Account Minimum:

$750,000

Portfolio Manager:

Morgan Stanley Smith Barney LLC

Target Asset Class

: 60% Global Equities + 40% Global Fixed Income

Market Cap:

Multi

Platform:

Select UMA

®

Eligible Investments:

Separately managed accounts, mutual funds and exchange-traded funds (ETFs)

Inception Date

: September 15, 2014

15.20

7.41 _6.15

20.66

13.60

13.83

14.19

4.15

2.58 _2.22

0.00

5.00

10.00

15.00

20.00

25.00 Consumer

Discretionary

Consumer

Staples

Energy

Financials

Healthcare

Industrials

Information

Technology

Materials

Telecom

Services

Utilities

1. Information as of January 22, 2016. Subject to change.

EQUITY SECTOR DISTRIBUTION

1

_(%)

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UMA Portfolio: Investing With Impact Equity

OVERVIEW

Building on key strengths of Morgan Stanley, including asset allocation advice, manager

analysis and the Investing with Impact Platform, this portfolio targets 100% equity and

combines highly regarded third-party managers across a range of Investing with Impact

approaches into a well-diversified portfolio.

PROCESS

•

Asset allocation:

Utilizing the thoughtful analysis driven by the firm’s Global

Investment Committee

•

Manager Selection:

Tapping into the in-depth due diligence conducted by the

Global Investment Manager Analysis team

•

Portfolio Construction:

Utilize complementary manager strategies and risk

management (portfolio does not include alternative investments); if conditions

warrant, the portfolio manager may include strategies that are not impact focused

•

Investing with Impact:

Approaches can include Values Alignment, ESG-Integrated

and Sector Exposure

DIFFERENTIATORS

•

Portfolio solution for clients with a range of Investing with Impact objectives

•

Eligible investments can include separately managed accounts, mutual funds and

exchange-traded funds (ETFs) in one account.

•

Independent managers with experience demonstrating positive

environmental/social impact

•

Automatic account rebalancing and monitoring

Objective:

Deliver an equity portfolio that seeks to achieve 1) positive environmental and social impact and

2) competitive risk-adjusted returns over the long-term.

ASSET ALLOCATION

1

US Large Cap

Growth

11%

US Large Cap

Core

20%

US Large Cap

Value Equity

15%

US Mid Cap

Value Equity

4%

US Small Cap

Core

4%

International

Equity

46%

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UMA Portfolio: Investing With Impact Equity

Notes:

As of January 22, 2016.

SMA=Separately Managed Account

The sample portfolio is provided for informational purposes only and should not be deemed to be a recommendation to purchase or sell the securities mentioned. There is no guarantee that any securities mentioned will be held in a client account. It should not be assumed that the securities transactions or holdings discussed were or will be profitable. Information and funds subject to change at any time without notice.

Manager Name

Strategy

Asset Class

Allocation (%)

Impact Area

ClearBridge

Investments

ClearBridge Multi-Cap

Growth ESG SMA

US Large Cap Growth

11.0 ESG-Integrated, Shareholder Engagement

Trillium Asset

Management

Trillium Large Cap Core SMA US Large Cap Core

11.0 ESG-Integrated, Shareholder Engagement

Neuberger Berman

NB Socially Responsible

Investing Mutual Fund

(NBSLX)

US Large Cap Core

9.0 ESG-Integrated, Shareholder Engagement

ClearBridge

Investments

ClearBridge Large Cap Value

ESG SMA

US Large Cap Value

15.0 ESG-Integrated, Shareholder Engagement

Ariel Investments

Ariel Appreciation Mutual

_{Fund (CAAPX)}

US Mid Cap Value

4.0 Values Alignment

Pax World Investments

Pax World Small Cap Fund

_(PXSIX)

US Small Cap Core

4.0 ESG-Integrated, Shareholder Engagement

Domini Social

Investments

Domini International Social

Equity Fund (DOMIX)

International Equity

46.0 ESG-Integrated, Shareholder Engagement

TOTAL GLOBAL

_EQUITIES

100.0

(22)

UMA Portfolio: Investing With Impact Equity

KEY STATISTICS

Account Minimum:

$400,000

Portfolio Manager:

Morgan Stanley Smith Barney LLC

Target Asset Class

: 100% Global Equities

Market Cap:

Multi

Platform:

Select UMA

®

Eligible Investments:

Separately managed accounts, mutual funds and exchange-traded funds (ETFs)

Inception Date

: September 15, 2014

EQUITY SECTOR DISTRIBUTION

1

_(%)

15.05

7.57

5.92

21.25

13.18

13.89

13.83

4.23

2.76 _2.33

0

5

10

15

20

25 Consumer

Discretionary

Consumer

Staples

Energy

Financials

Healthcare

Industrials

Information

Technology

Materials

Telecom

Services

Utilities

Portfolio

(23)

Index Glossary

INDEX DEFINITIONS

BARCLAYS CAPITAL SHORT TREASURY INDEX: The index measures the performance of U.S. Treasury securities that have a remaining maturity between one and twelve months.

BARCLAYS CAPITAL US AGGREGATE BOND INDEX: The US Aggregate Index covers the dollar-denominated investment-grade fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS pass through securities, asset-backed securities, and commercial mortgage-based securities. These major sectors are subdivided into more specific sub-indexes that are calculated and published on an ongoing basis.

MSCI EAFE INDEX (NET): The MSCI EAFE Index (Europe, Australasia, Far East) (net) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. As of December 2003 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. This series

approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate to non-resident individuals who do not benefit from double taxation treaties. MSCI uses withholding tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates.

MSCI KLD 400 SOCIAL INDEX: The MSCI KLD 400 Social Index is a market capitalization-weighted Common Stock Index, consisting of 400 corporations that have passed multiple, broad-based social screens. The index is maintained by Kinder, Lydenberg, Domini & Co., Inc. and is intended to serve as a proxy and benchmark for the universe of stocks from which social investors might choose. The index was set at a value of 100 as of May 1, 1990. Since its inception, fewer than one change per month has been made in the index, primarily due to takeovers and acquisitions.

RUSSELL 3000 INDEX: Russell 3000 Index measures the performance of the 3,000 largest US companies based on total market capitalization, which represents approximately 98% of the investable US equity market. As of the latest reconstitution, the average market capitalization was approximately $86.4 billion; the median market capitalization was approximately $923 million. The index had a total market capitalization range of approximately $540 billion to $101 million.

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Disclosures

The strategies described in this material are currently offered as Firm Discretionary UMA Model Portfolios in Morgan Stanley Smith Barney LLC’s Select UMA® Investment Advisory Program. Please see the Morgan Stanley Smith Barney LLC Select UMA Form ADV Wrap Fee Brochure (the “Morgan Stanley ADV”) for more information on this Investment Advisory program. The Morgan Stanley ADV is available from your Financial Advisor or Private Wealth Advisor or online at www.morganstanley.com/ADV.

All investment advisory services of Select UMA are delivered to clients in the United States only by Morgan Stanley Smith Barney LLC. These materials are intended only for clients and prospective clients in the United States.

Consider Your Own Investment Needs This material is not intended to be a client-specific suitability analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities (includes securities of Morgan Stanley and/or its affiliates if shown in this material). Do not use this material as the sole basis for investment decisions. Do not select an investment strategy based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon.

Performance and Other Portfolio Information Past performance does not guarantee future results. There is no guarantee that these investment strategies will work under all market conditions. As a result of recent market activity, current information may vary from the information shown in this material.

Benchmark index Dependingon the composition of your account and your investment objectives, any indices shown in this material may not be an appropriate measure for comparison purposes and are therefore presented for illustration only. Indices are unmanaged. You cannot invest directly in an index. Performance of indices may be more or less volatile than any investment strategy. The risk of loss in value of a specific investment strategy is not the same as the risk of loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment strategy.

Securities holdings Holdings are subject to change daily, so any securities discussed in this material may or may not be included in your account if you invest in this investment strategy. Your account may also include other securities in addition to or instead of any securities discussed in this material. There is no assurance that any securities discussed herein will remain in an account at the time you receive this material, or that securities sold have not been repurchased. The securities discussed do not represent all the securities that will be purchased, sold or recommended for advisory clients. Do not assume that any holdings mentioned were, or will be, profitable or that the investment recommendations or decisions made in the future will be profitable or will equal the investment performance of the securities discussed in this material.

Actual account data may differ from that shown in this material The, holdings, sector weightings, portfolio traits and other data for an actual account may differ from that in this report due to various factors including the size of an account, cash flows within an account, and restrictions on an account.

Key Asset Class Considerations Investing in the market entails the risk of market volatility and principal loss. The value of all types of investments may increase or decrease over varying time periods. Investors should be willing and able to assume the risks of equity investing. The value of a client’s portfolio changes daily and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in which the client is invested. Companies paying dividends can reduce or cut payouts at any time.

To the extent the investments depicted herein represent international securities, you should be aware that there may be additional risks associated with international investing, including foreign

economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes, and differences in financial and accounting standards. International investing may not be for

everyone. These risks may be magnified in emerging markets, since these countries may have relatively unstable governments and less established markets and economics. Small- and

mid-capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. In addition, the securities of small- and mid-capitalization

companies may not trade as readily as, and be subject to higher volatility than, those of larger, more established companies. Bonds are subject to interest rate risk. When interest rates rise, bond

prices fall; generally the longer a bond’s maturity, the more sensitive it is to this risk. Bonds may also be subject to call risk, which allows the issuer to retain the right to redeem the debt, fully or partially, before the scheduled maturity date. Proceeds from sales prior to maturity may be more or less than originally invested due to changes in market conditions or changes in the credit quality

(25)

Disclosures (cont'd)

In Consulting Group’s advisory programs, alternative investments are limited to US-registered mutual funds, separate account strategies and exchange-traded funds (ETFs) that seek to pursue

alternative investment strategies or returns utilizing publicly traded securities. Investment products in this category may employ various investment strategies and techniques for both hedging and more speculative purposes such as short-selling, leverage, derivatives and options, which can increase volatility and the risk of investment loss. Alternative investments are not suitable for all investors.

There may be tax implications with a rebalancing strategy.

Asset allocation and diversification do not assure a profit or protect against loss in declining markets.

No obligation to notify Morgan Stanley Smith Barney LLC has no obligation to notify you when information in this material changes.

Sources of information Material in this material has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or timeliness of the data they provide and are not liable for any damages relating to this data.

No tax advice Morgan Stanley Smith Barney LLC and its affiliates do not render advice on tax and tax accounting matters to clients. Each client should consult his/her personal tax advisor to learn about any potential tax or other implications that may result from acting on a particular recommendation.

No redistribution Morgan Stanley Smith Barney LLC material, or any portion of it, may not be reprinted, sold or redistributed without Morgan Stanley Smith Barney LLC’s written consent.

Cerulli Associates, 4Q 2015 Summary Report. Cerulli Associates’ data are based on data submitted by firms participating in Cerulli’s survey. Morgan Stanley Wealth Management was ranked No. 1 in terms of assets under management out of the firms listed in the industry for the quarter with respect to Top Managed Account Program Sponsors Across All Industry Segments. This category includes separate account consultant programs, mutual fund advisory programs, ETF advisory programs, rep as portfolio manager programs, rep as advisor programs and unified managed account programs. Separate account consultant programs are programs in which asset managers manage investors’ assets in discretionary separate accounts. Mutual fund advisory programs and ETF advisory programs are discretionary and nondiscretionary programs designed to systematically allocate investors’ assets across a wide range of mutual funds or ETFs. Rep as portfolio manager programs are discretionary programs in which advice is an essential element; planning is undertaken or advice is treated as a separate service from brokerage. Rep as advisor programs are nondiscretionary programs where the advisor has not been given discretion by the client and must obtain approval each time a change is made to the account or its investments. Unified managed accounts are vehicle-neutral platforms that simplify the delivery of multiple investment vehicles, such as separate accounts, mutual funds, exchange-traded funds and individual securities through their integration within a single environment. Rankings are subject to change. Some historical figures may be revised due to newly identified programs, firm restatements, etc.

Investors should carefully consider the investment objectives, risks and charges and expenses of a mutual fund or exchange-traded fund before investing. The prospectus contains this and other information about the mutual fund or exchange-traded fund. To obtain a prospectus, contact your Financial Advisor or Private Wealth Advisor. Please read the prospectus carefully before investing.

The information herein has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. All opinions included in this material constitute the Firm’s judgment as of the date of this material and are subject to change without notice. This material is provided for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

Morgan Stanley Smith Barney LLC offers investment program services through a variety of investment programs, which are opened pursuant to written client agreements. Each program offers investment managers, funds and features that are not available in other programs; conversely, some investment managers, funds or investment strategies may be available in more than one program.

Morgan Stanley’s investment advisory programs may require a minimum asset level and, depending on your specific investment objectives and financial position, may not be suitable for you.