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

Transcription

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

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

3 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.

5 The Tradition of Investing With Impact 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 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 200s Norway Government Pension and U.S. s largest pension, CalPERS, commit to 100% integration of sustainability over 15 years 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 2011 White house convenes investors, policymakers, entrepreneurs focused on impact investing Sustainable Accounting Standards Board launched; Michael Bloomberg named Chair in 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% yearon-year increase 1935 Morgan Stanley founded 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 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 1973 Interfaith Center on Corporate Responsibility founded and files first shareholder resolution 1990 Domini Social Index created (now MSCI KLD 400 Social Index) divesting campaigns across 2010 Harvard launches college campuses U.S. SIF Trends Report: $3.74 Initiative for Responsible Investment (IRI) trillion in U.S. sustainably managed assets previously at Boston 2014 U.S. SIF Trends Report: $6.5 trillion in U.S. sustainably managed assets, representing 76% growth from 2012 College

6 Investing With Impact Approaches Differ Morgan Stanley s Investing with Impact Framework emphasizes the different approaches to aligning investment decisions with impact priorities DEFINITION Minimize Objectionable Impact VALUES ALIGNMENT Managing exposures by intentionally avoiding investments based on specific criteria Targeted Impact ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INTEGRATION THEMATIC EXPOSURE IMPACT INVESTING Proactively considering ESG criteria alongside financial analysis to identify opportunities and risks during investment process Focusing on themes and sectors dedicated to solving sustainability-related domestic and global challenges Allocating to investment funds focused on private enterprises structured to deliver specific positive social and/or environmental impacts IMPACT INVESTMENT CHARACTERISTICS Public equity, Public fixed income, alternatives Differentiated by restriction criteria and degree of shareholder advocacy Not proactively seeking environmental and social impact Public equity and public fixed income Differentiated by ESG integration process and degree of shareholder advocacy May also include screens Public equity and public fixed income Differentiated by macro-analysis, sustainability research and sector focus Differentiated by by impact impact approach, regional approach, focus, regional liquidity focus, and impact reporting liquidity and impact reporting May May have have investor investor restrictions restrictions INVESTMENT EXAMPLES Mutual fund that excludes companies from buy universe (e.g. tobacco, firearms, coal mining companies) Separately Managed Account (SMA) incorporating analysis of ESG performance into stock selection process Exchange-traded fund (ETF) tracking index of renewable energy companies A private equity fund focused A private equity fund focused on on emerging consumers or emerging consumers or project project level renewable level renewable energy investment. energy investment. PUBLIC MARKETS PRIVATE MARKETS

7 Part II How Morgan Stanley Is Positioned to Help Deliver Impact

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

9 Leveraging the Firm's Key Resources 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: 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 1,300+ Actively Analyzed Strategies Assets Under Management $795 Billion 450+ Onsite Manager Visits/Year #1 Managed Accounts Program by Assets +125 Investing with Impact Platform products $2Tn In total client assets (MS) 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.

10 Investing With Impact Thought Leadership A suite of research, white papers and educational material to navigate impact approaches

11 Part III Select UMA Investing With Impact Portfolios

12 Investment Process Is Systematic and Risk-Aware The Investing with Impact Portfolios on the Select UMA platform are constructed with the same risk-aware process leveraged for all firm-discretionary portfolios. Identify active risks in the portfolio Seek to allocate risk efficiently Analyze variations in risk, managers and their strategies Risk Management Asset Allocation 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 Utilize multi-factor analysis to determine optimal weightings Emphasize high-conviction, complementary independent, third-party managers Dedicated team of portfolio construction professionals Portfolio Construction Manager Analysis 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

13 Managers Undergo Extensive Analysis Prior to Inclusion Morgan Stanley leverages multiple professional teams to determine the third-party asset managers and investment products appropriate for inclusion. 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. BEST FIT MANAGERS DETERMINED BY MANAGER SOLUTIONS TEAM 1 Identify managers with a clear approach to Investing with Impact Filter for Asset Class and Investment Style Working List Presents tactical opportunity Complements other holdings QUANTITATIVE FILTER Peer analysis Rolling period returnsbased 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 Exhibits consistent process and contribution to overall portfolio risk Expresses thematic view 1. Manager Solutions is the Investing with Impact strategies portfolio manager

14 Select UMA Portfolio Construction We seek to deliver Investing with Impact strategies across approaches. VALUES-ALIGNMENT Exclude companies and/or sectors that are in opposition to values. For example: tobacco, alcohol, weapons. 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. No Direct Mission Alignment Values Alignment ESG- Integration Sector Exposure

15 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.

17 UMA Portfolio: Investing With Impact Balanced 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. 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 ASSET ALLOCATION 1 US Core Fixed Income 21% US Short Term Fixed Income 22% US Large Cap Growth Equity 7% International Equity 27% US Large Cap Core Equity 10% US Large Cap Value Equity 8% US Mid Cap Value Equity 3% US Small Cap Core Equity 2% 1. Information as of January 22, Subject to change.

18 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 ClearBridge Investments Ariel Investments NB Socially Responsible Investing Mutual Fund (NBSLX) ClearBridge Large Cap Value ESG SMA Ariel Appreciation Mutual Fund (CAAPX) US Large Cap Core 4.0 ESG-Integrated, Shareholder Engagement US Large Cap Value 8.0 ESG-Integrated, Shareholder Engagement 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 Notes: As of January 22, 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.

19 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 EQUITY SECTOR DISTRIBUTION 1 (%) Portfolio Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecom Services Utilities 1. Information as of January 22, Subject to change.

20 UMA Portfolio: Investing With Impact Equity 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. 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 ASSET ALLOCATION 1 International Equity 46% US Small Cap Core 4% US Large Cap Growth 11% US Mid Cap Value Equity 4% US Large Cap Core 20% US Large Cap Value Equity 15% 1. Information as of January 22, Subject to change.

21 UMA Portfolio: Investing With Impact Equity 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 Neuberger Berman ClearBridge Investments Trillium Large Cap Core SMA US Large Cap Core 11.0 ESG-Integrated, Shareholder Engagement NB Socially Responsible Investing Mutual Fund (NBSLX) ClearBridge Large Cap Value ESG SMA US Large Cap Core 9.0 ESG-Integrated, Shareholder Engagement US Large Cap Value 15.0 ESG-Integrated, Shareholder Engagement Ariel Investments Pax World Investments Domini Social Investments Ariel Appreciation Mutual Fund (CAAPX) Pax World Small Cap Fund (PXSIX) Domini International Social Equity Fund (DOMIX) US Mid Cap Value 4.0 Values Alignment US Small Cap Core 4.0 ESG-Integrated, Shareholder Engagement International Equity 46.0 ESG-Integrated, Shareholder Engagement TOTAL GLOBAL EQUITIES TOTAL PORTFOLIO Notes: As of January 22, 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.

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 (%) Portfolio Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecom Services Utilities 1. Information as of January 22, Subject to change. 2. All characteristics based on Custom Benchmark.

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, governmentrelated 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, 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.

24 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 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 Depending on 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 midcapitalization 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 of the issuer.

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 Morgan Stanley Smith Barney LLC. Member SIPC. Consulting Group is a business of Morgan Stanley Smith Barney LLC. CRC (03/2016)