F S. The Ferguson-Smith Group at Morgan Stanley. The Power to Grow. The Strength to Preserve. The Confidence to Relax.

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1 F S The Ferguson-Smith Group at Morgan Stanley The Power to Grow. The Strength to Preserve. The Confidence to Relax.

2 Wealth Management We deliver the experience and resources that help you and your family create, preserve, distribute and transfer wealth. 1 Creation 2 Preservation 3 Distribution 4 Transfer

3 F S Protecting Wealth At the Ferguson-Smith Group, we are seasoned investment professionals who understand that wealth management is about far more than the numbers on your account statement. It s about finding solutions to all of your financial challenges, so you can afford the lifestyle you want to live and support the people, causes and institutions that enrich your life. You have worked hard to build a successful career, business or professional practice; or perhaps you are the current steward of a significant legacy. We will work just as hard to help you protect what you have earned and enjoy the rewards of your success. We will take the time to learn about you and your family, your attitude toward risk and your aspirations for the future. We will help you create a comprehensive wealth management plan to address all of the challenges and opportunities you face. Whether reducing your tax burden, planning for retirement, ensuring the funds will be there to send your children or grandchildren to college, or passing along your financial legacy, we can tailor highly customized solutions designed to help you reach your goals. If you choose us as your advisors, you will have access to the resources, intelligence and integrated strategic thinking you need to keep pace with changes in the markets and in your life. You have a trusted team of professionals, on your side, helping you use the wealth you have to support the life you want to live. Sincerely, Scott D. Ferguson Dianna L. Smith Patrick L. Cohen The Ferguson-Smith Group 3

4 F S our comprehensive wealth management process Defining Your Goals Crafting Your Plan We follow a highly disciplined process that allows us to understand your needs and goals, and create a comprehensive wealth management plan designed to address them. As a solutions-based practice, we work to translate your life goals into quantifiable financial objectives, and present you with personalized strategies that we believe have the highest probability of success. discovery We begin by learning everything we can about your goals, challenges, preferences and anything else you wish to share with us. We identify key factors like your risk tolerance, tax-related concerns and cash flow requirements. We will also discuss your personal, professional and philanthropic aspirations, and the hopes and dreams you have for your children and grandchildren. If it s important to you, it s important to us. development of investment plan We compare the financial objectives you outlined in the discovery process with your current holdings, and make a series of specific recommendations. This results in a written investment plan, encompassing all of your current accounts, trusts and other structures. We then meet to review your plan and submit it for your approval. implementation of investment strategy We are hands-on portfolio managers who offer six core strategies over 14 different portfolios. With a fully open architecture, however, we have complete flexibility to create highly customized strategies using any combination of our proprietary portfolios, Morgan Stanley investments and best-in-class third-party managers. coordination of wealth management resources Many of our clients have wealth management needs that go well beyond investment management. Often coordinating our efforts with your CPA, attorney and other advisors, we are available to review your charitable trusts and estate plan, your insurance policies, your mortgages and anything else that impacts your financial life. We have all the resources to act as your go-to advisors on anything that impacts your family s financial health. monitoring and adjustment We monitor your portfolios on a daily basis to make sure they remain in line with your goals, and maintain regular communication to make sure your goals have not changed. We will make periodic tactical recommendations when we see a promising opportunity, and are always available to answer your questions and address your service requests. 4 Morgan Stanley

5 monitoring and adjustment implementation of investment strategy coordination of wealth management resources development of investment plan discovery

6 F S comprehensive capabilities The Skills and Resources to Address Your Needs By combining our experience with the extensive resources of Morgan Stanley, our team provides you with access to the full range of products and services needed to address any financial matter. We offer the best of both worlds: a dedicated team of professionals highly skilled in both comprehensive wealth management and hands-on investment management backed by the resources of a best-in-class global financial leader. comprehensive wealth planning As a Family Wealth Director Team, we understand the complex, multigenerational needs of affluent families and are highly experienced in creating customized, comprehensive plans across numerous tax and estate structures. 6 Morgan Stanley

7 private banking services We help you implement sophisticated approaches to liquidity management while working to enhance yield on your short-term assets. We also provide access to customized credit structures: personal real estate loans, tailored personal loans, including unsecured loans, and credit collateralized by marketable securities. executive services We help develop strategies to diversify concentrated positions created by holdings of restricted and control securities and employee stock options, including cashless option exercises and 10b5-1 plans. business services We are available to help your business and its employees with their investment management needs, including 401k plans. philanthropic services Our philanthropy specialists help individuals, families and foundations define their philanthropic goals and create strategies to achieve them. investment banking We provide access to the expertise you need to evaluate options for monetizing your business, including IPOs and secondary offerings. We can also introduce you to professionals who can help you access the capital markets. trust & estate services Working with your estate attorney, Morgan Stanley experts provide an objective perspective on your trust structures and estate plan. We can help you integrate your investment and estate plans, or evaluate potential investment strategies from a tax perspective. multigenerational education We often work with our clients to help them educate their children and grandchildren in financial matters.

8 F S our investment philosophy Our Six Core Proprietary Portfolios While we pride ourselves on being able to address every aspect of our clients financial lives, we are first and foremost a team of deeply experienced, hands-on investment professionals. Combining our own analysis with an extensive body of research from Morgan Stanley and beyond, we develop strong opinions on the direction of the overall markets, sectors and individual securities and funds. We are not blind adherents to Modern Portfolio Theory, believing instead that over-diversification poses obstacles to risk-adjusted investment performance that rival those of under-diversification. We believe that we serve our clients best by managing to their specific goals rather than an institutional benchmark. Our team manages six core strategies over 14 portfolios as a direct reflection of our views. Each is designed for a different purpose, and seeks to achieve the best risk-adjusted returns within its prescribed boundaries. Virtually all of our clients have assets invested in at least one of these portfolios, and most are invested in several portfolios and strategies to fulfill their customized asset allocation. The majority of our portfolios have long-term audited results, which we are always proud to share on request. 8 Morgan Stanley

9 1 2 3 absolute return Seeks capital preservation, diversification and low volatility through various liquid alternative mutual funds. 4 international growth equity fund 5 earnings momentum strategy 6 global opportunistic tactical fixed income Seeks income and preservation of capital by managing credit and duration with a flexible mandate to take advantage of market opportunities. Contains, primarily, individual bonds with up to 20% Mutual Funds and ETFs. rising dividend strategy Seeks income and capital appreciation through a concentrated portfolio of multinational blue-chip stocks. Seeks long-term capital appreciation and diversification through a portfolio of International Mutual Funds/ ETFs with a variety of styles and objectives. Seeks long-term capital appreciation through the selection of a concentrated portfolio of primarily U.S.-based growth stocks. Seeks long-term capital appreciation via an opportunistic approach to stock picking and international exposure. Invests in individual stocks around the globe, with an emphasis on growth stocks/etfs.

10 F S The Talent on Your Team The Ferguson-Smith Group is a tightly knit team with a broad range of skills. We combine deep experience in investment management, wealth planning, client service and operations to deliver a highly responsive and personalized experience for each of our clients. When you work with any of us, you get the best of all of us. Left to right: Ryan Widrig, Debbie Cartwright, Scott D. Ferguson, Dianna L. Smith, Patrick Cohen, Theresa Jefferson, Chris Malmgren, Sandra Fahlstrom 10 Morgan Stanley

11 Scott D. Ferguson Managing Director Wealth Advisor Senior Portfolio Management Director NMLS# Drawing from over three decades of investment management experience, Scott Ferguson crafts highly customized wealth management strategies for successful families, individuals and select institutions. His primary focus is on portfolio management, overseeing six core strategies over 14 portfolios. A registered and licensed wealth advisor, Scott has worked with his clients through multiple market cycles, helping them preserve, enhance and transfer wealth. He has been recognized by Barron s magazine as one of their Top 1,200 Financial Advisors in the country for multiple consecutive years. Financial Times has also recognized Scott by naming him to their Top 400 Advisors List. A native of Kansas City, Scott graduated from the University of Kansas with a bachelor s degree in civil engineering. Scott has many philanthropic interests including Children s Mercy Hospital, the Keith Worthington Chapter of the ALS Association, and Junior Achievement to name a few. He enjoys spending time with his family and playing golf. scott.ferguson@morganstanley.com excellence at work Top 1,200 Financial Advisors Barron s Magazine Scott D. Ferguson Ranked #2 in Kansas, 2013 Dianna L. Smith, CIMA Senior Vice President Wealth Advisor Family Wealth Director Senior Portfolio Management Director NMLS# As a founding member of the Ferguson-Smith Group, Dianna Smith brings two decades of financial services industry experience to her clients. Dianna works closely with wealthy families, individuals and endowments/ foundations in the development and creation of their wealth and investment plans. Dianna guides each client, addressing virtually every aspect of their financial lives. This includes comprehensive asset allocation and investment strategies, manager and investment selection, alternative investments, tax-efficient cash flow planning, estate distribution and legacy planning. Dianna attended Kansas State University and completed her Bachelor of Business Science in business administration through the University of Phoenix. She holds the Certified Investment Management Analyst certification, administered by Investment Management Consultants Association and taught in conjunction with The Wharton School of Business, University of Pennsylvania. Dianna is also a Family Wealth Director, a designation earned by fewer than 2% of all Morgan Stanley Advisors. Dianna is an officer for the Kansas City Estate Planning Society; currently serves as Treasurer for the Heart of Kansas City Chapter of the National Charity League, as well as Chairwoman for the Morgan Stanley Kansas City Women s Business Council. Dianna resides in Leawood, Kansas, with her husband, James, and two daughters, Madelaine and Lily. dianna.l.smith@morganstanley.com Top 400 Advisors Financial Times Scott D. Ferguson The Ferguson-Smith Group 11

12 F S Patrick Cohen Financial Advisor NMLS# Debbie Cartwright Senior Registered Associate Sandra Fahlstrom Business Development Associate Patrick Cohen began his career in the securities industry at the Ferguson- Smith Group in 2011, where he provided portfolio strategy and financial planning analysis. He now works directly with clients as a Financial Advisor and leads the Ferguson-Smith Group s business development efforts. In 2015, he was named to Morgan Stanley s Pacesetters Club, a global recognition for Financial Advisors who, within their first five years, demonstrate the highest professional standards and first-class client service. Patrick graduated from the University of Kansas with degrees in economics and Spanish. He currently serves as the Treasurer of the Children s Mercy Cancer Center Auxiliary Board and was also elected as a Man of the Year Candidate to raise funds for the Leukemia and Lymphoma Society. Patrick lives in Prairie Village, Kansas, with his wife, Emmie, and their new daughter, Georgia. He is an avid tennis player, golfer and traveler. patrick.cohen@morganstanley.com Debbie Cartwright serves as the Ferguson-Smith Group s administrative professional, tending to the diverse operational and administrative needs of the team and its clients. Drawing on over three decades of financial industry knowledge and experience, she ensures diligent follow through and otherwise supports the team s efforts to provide the highest level of personalized service to each and every client. A lifelong resident of Shawnee, Kansas, Debbie is an active supporter and fundraiser for the KVC charity of Wyandotte County. She is also active with several other nonprofit organizations within her hometown. She and her husband of 32 years, Steve, have two grown children. Their daughter, Danielle Percival, lives in Derby, Kansas, and their son, Devon, is a lieutenant of the United States Navy and flies SAR Helicopters. debbie.cartwright@morganstanley.com Sandra Fahlstrom has worked in the financial industry since 1997 in both client service and office management capacities. She currently serves as the initial point of contact for clients of the Ferguson-Smith Group. Drawing upon her vast knowledge of the industry, Sandra provides clients with an outstanding experience through various administrative, marketing, client service, and mortgage and lending efforts. She also supports the team in data management, scheduling, seminar planning and preparation for client contact. Sandra is an avid supporter of local community programs, including Harvester s, The Keeler Women s Center and the Village Food Pantry. A loving mother of two sons, Sean and Kallen, Sandra enjoys spending her time traveling the world with her husband, Joe. sandra.fahlstrom@morganstanley.com Morgan Stanley

13 Ryan Widrig Wealth Management Analyst Theresa Jefferson Client Service Associate Chris Malmgren, CRPC Senior Registered Associate Ryan Widrig began working with the team as an intern in 2010, and joined full time in As the Ferguson- Smith Group analyst, Ryan supports the team in the implementation of its investment process and the creation of wealth management solutions. Ryan graduated from the University of Kansas in 2012 with a degree in finance and was awarded the Outstanding Finance Senior Scholarship. This scholarship was presented to 12 seniors who exhibited exemplary performance in finance classes. Born and raised in Kansas City, Ryan is an avid sports fan who enjoys cheering on the Jayhawks, Chiefs and Royals. ryan.widrig@morganstanley.com Terrie Jefferson recently transitioned to the Ferguson-Smith team from the operations department in our Leawood, Kansas, office. Her current focus is on assisting clients with LifeView plans, annuities and long-term care products. Earlier in her career, Terrie worked as an accountant in the Kansas City area. Terrie has a degree in accounting and business administration from the University of Kansas. In her free time, Terrie enjoys traveling and visiting her three grown daughters. Leawood, Kansas, is home for Terrie and her husband, Andy. theresa.jefferson@morganstanley.com Chris Malmgren serves as the point person for the Ferguson-Smith Group, supervising service requests from clients and ensuring that new accounts are set up properly and asset transfers go smoothly. She also assists clients with their mortgage and lending needs. Chris has worked in management and sales since Chris received a B.A. from the University of Iowa in 1988, and went on to earn the Chartered Retirement Plan Counselor (CRPC) designation. She currently sits on the board of the Greater Kansas City Iowa Club, where she also serves as the Treasurer. chris.malmgren@morganstanley.com The Ferguson-Smith Group 13

14 F S our clients Moving Forward in a Spirit of Collaboration Our wealth management practice is very much a reflection of our surroundings. We are all born-and-bred Midwesterners who value honesty, integrity and diligence. Our clients invariably share these values. They are accomplished individuals who have established, or built upon, significant financial legacies. They turn to us for help in handling their increasingly complex investment and wealth planning challenges. We take on the multifaceted tasks of managing their wealth so they are free to enjoy its rewards.

15 We will work to gain an in-depth understanding of your needs and goals, and present you with a highly tailored plan to address them. Serving as your primary wealth management team, we offer a fresh approach to managing your assets and crafting innovative solutions to your financial challenges. Our goal is to help you live the life you want to live.

16 Two Hallbrook Place Overbrook Road, Suite #225, Leawood, Kansas / Main / Toll-Free / fax morganstanleyfa.com/thefergusonsmithgroup This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Morgan Stanley Wealth Management recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor s individual circumstances and objectives. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ( Morgan Stanley ), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not fiduciaries (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise agreed to in writing by Morgan Stanley. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. Morgan Stanley Smith Barney LLC ( Morgan Stanley ) is a registered broker-dealer, member SIPC, not a bank. Where appropriate, Morgan Stanley has entered into arrangements with banks and other third parties to assist in offering certain banking-related products and services. Unless specifically disclosed in writing, investments and services offered through Morgan Stanley are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, a bank and involve investment risks, including possible loss of principal amount invested. Morgan Stanley Smith Barney LLC offers insurance products in conjunction with its licensed insurance agency affiliates. MSSB and its Financial Advisors do not provide tax or legal advice. Individuals should seek advice based on their particular circumstances from an independent tax advisor. The individuals mentioned as the Portfolio Management Team are Financial Advisors with Morgan Stanley participating in the Morgan Stanley Portfolio Management program. The Portfolio Management program is an investment advisory program in which the client s Financial Advisor invests the client s assets on a discretionary basis in a range of securities. The Portfolio Management program is described in the applicable Morgan Stanley ADV Part 2, available at or from your Financial Advisor. Barron s Top 1,200 Advisors, February 23, 2015, were identified by Barron s magazine using quantitative and qualitative criteria and selected from a pool of over 4,000 nominations. Advisors in the Top 1,200 Financial Advisors have a minimum of seven years of financial services experience. Qualitative factors include, but are not limited to, compliance record and philanthropic work. Investment performance is not a criterion. The rating may not be representative of any one client s experience and is not indicative of the Financial Advisor s future performance. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pays a fee to Barron s in exchange for the rating. Barron s is a registered trademark of Dow Jones & Company, L.P. All rights reserved. The Financial Times Top 400 Financial Advisors is an independent listing produced by the Financial Times (March 2015). The FT 400 is based in large part on data gathered from and verified by broker-dealer home offices, and, as identified by the FT, reflects each advisor s performance in six primary areas, including assets under management, asset growth, compliance record, experience, credentials and accessibility. The rating may not be representative of any one client s experience and is not indicative of the Financial Advisor s future performance. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pays a fee to the Financial Times in exchange for the rating. An investment in alternative investments can be highly illiquid, is speculative and not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Some of these risks may include: loss of all or a substantial portion of the investment due to leveraging, short selling, or other speculative practices; lack of liquidity in that there may be no secondary market for the fund and none is expected to develop; volatility of returns; restrictions on transferring interests; potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized; absence of information regarding valuations and pricing; complex tax structures and delays in tax reporting; less regulation and higher fees than mutual funds; and manager risk Morgan Stanley Smith Barney LLC. Member SIPC. CRC CS /16