Morgan Stanley Mutual Fund

13

Information presented does not constitute an offer or solicitation to buy or sell specific securities; any investment decisions should be based on an analysis considering each client’s unique circumstances.

Access Persons may transact in Morgan Stanley mutual funds during designated open window periods, subject to pre-clearance through the employee trading and investing system. Additional restrictions may also apply.

Focused Investments

The Advisor seeks to invest in companies with sustainable competitive advantages, strong returns on invested capital, and attractive redeployment rates for money. Through a bottom-up stock selection process, they search for opportunities in established and emerging companies with robust free cash flows and substantial growth potential.

The Fund seeks long-term capital appreciation by investing in a diverse portfolio of domestic and foreign securities. The Adviser seeks to diversify assets by investing in equity and fixed-income securities from domestic or foreign issuers. Furthermore, derivative instruments, such as futures or options contracts, may also maximize returns while mitigating risk.

The Advisor seeks to mitigate risk by investing in a range of securities and asset classes with low to middle-yield equity investments as their focus. Diversification, active management, and regular rebalancing help limit exposure to market fluctuations while decreasing volatility through reduced exposure.

Investment in this Fund entails various risks, such as changes to economic conditions, interest rate trends, creditworthiness of issuers, and inflation; these risks become compounded when investing in foreign markets.

Diversification does not ensure profit or safeguard against losses in an adverse market environment. Your Financial Advisor can provide more details on their fund’s objectives, risks, charges, and expenses by reading its Prospectus before investing. Read it thoroughly before making your decision!

All investing involves risk, including the possible loss of principal. Investment objectives, strategies, and assumptions of an adviser may change at any time; information contained herein comes from sources believed to be reliable but isn’t guaranteed as accurate or complete; please use it only as general knowledge – don’t take this material as an offer to sell or solicitation to buy any financial instrument – it should not be seen as such as it serves only professional investors as defined in its prospectus and cannot be sold to non-professionals in jurisdictions where such offers or sales would be illegal.

Investing With Impact

At Morgan Stanley, the world is more robust when everyone can prosper. That’s why we have provided our Investing with Impact platform for ten years now, which allows clients to tailor their portfolios according to unique impact goals while simultaneously seeking market-rate returns. Today 95% of Wealth Management representatives use this platform for clients.

Our research and tools can assist in the identification of opportunities in your current holdings that align with your impact priorities. If racial equity is your mind, our IQ tools will reveal which of your investments contribute to increasing diversity on corporate leadership boards or boards. If environmental sustainability is your primary focus, IQ/ESG tools can show which ones reduce carbon emissions by tracking them over time.

We can also assist in identifying investments at risk of exposure to sectors, issues, or business practices you wish to avoid – such as companies engaged in human rights violations or selling tobacco or firearms. Furthermore, our Morgan Stanley Impact Quotient tool offers an in-depth report on your portfolios’ alignment with these ESG factors.

Consider investing in funds to help the world move towards a lower-carbon economy, including those focused on renewable energy, natural resources, and low-carbon sectors. Furthermore, corporate “green bonds” provide capital for climate-related projects.

We can assist in exploring options to diversify your risk across different asset classes, such as equities and fixed income, to limit exposure to the potential loss of value in any particular market. It should be remembered, however, that diversification does not protect you against losses in a declining market or ensure positive returns.

Morgan Stanley Wealth Management team. To learn more, speak with a representative.

Climate-Focused Investing

Morgan Stanley clients are increasingly taking an interest in environmental investing. A survey by the firm revealed that 8 out of 10 general investors and 9 out of 10 millennials expressed interest in sustainable investments–with climate change at the top of their priorities list.

Investors can help advance climate solutions by selecting companies that create clean energy, increase efficiency, and lower carbon emissions. Furthermore, exchange-traded funds (ETFs) or professionally managed accounts specializing in these areas may also help facilitate progress.

As the world turns its attention to COP26 in Glasgow, Scotland, this month, financial advisors are capitalizing on increased awareness of environmental issues to assist clients with considering investments that support their own environmental goals. “Advisers are using COP26 as an inspiration to have conversations with clients about their environmental priorities and then implement portfolio solutions that meet those goals,” stated Lily Trager from Morgan Stanley Wealth Management’s Center of Investing with Impact.

MSIM recently held its inaugural close for its 1GT Climate Private Equity Strategy, raising $500 million in equity capital commitments from investors. This platform will invest in growth-stage companies with products or services to reduce carbon footprints while offering financial returns, such as mobility, power, sustainable food & agriculture, circular economy, or circular economies – with half of 1GT team member incentive compensation tied directly to meeting climate objectives of this fund.

MSIM is taking steps to increase transparency regarding its exposure to fossil fuels and other carbon-intensive assets, joining the Partnership for Carbon Accounting Financials group with 66 global financial companies managing $5.3 trillion total assets that have established an approach for tracking greenhouse gas emissions from projects or investments financed by these firms. They plan on publishing an institutional framework this fall.

Working With a Financial Adviser

Financial Planning services provided by Morgan Stanley can assist individuals in meeting long-term goals such as saving for retirement or funding an education. Advisors will analyze an individual’s assets, liabilities, income sources and expenditures, tax status, and any tax considerations to develop an individualized plan tailored to these financial needs. Such procedures could include asset allocation strategies such as rebalancing, tax strategies, asset repositioning plans, or tax strategies for high net-worth clients via the Morgan Stanley Wealth Management group.

Global Wealth Management Group specializes in stock brokerage and investment advisory services for high-net-worth clients, such as retirees, widows, divorcees, and heirs. In addition to brokerage and advisory services, this group also offers financial planning and trust management.

Morgan Stanley is an American multinational financial services provider headquartered in New York City. The firm provides banking, securities, wealth management, investments, insurance, credit card services and credit card accounts, with primary business segments including institutional securities trading, wealth management, and investment banking. Established as Dean Witter Discover & Co in 1983 and changed to Morgan Stanley in 1997 – they merged with Smith Barney and officially became Morgan Stanley Group in 2009.

MSIM employees must abide by the Global Employee Trading, Investing, and Outside Activities Code of Ethics (“the Code”) to avoid legal, business, and ethical conflicts of interest. The “Code” covers employees (known as Covered Persons) engaging in trading or investing activities that are overseen by either their assigned manager or Compliance; certain transactions require pre-clearance before being conducted by Covered Persons – please review the “Definitions” section below to gain a complete understanding of this Code’s scope.

Prosecution allegations against Good suggest that he stole nearly $7.24 million from at least twelve investors by promising them that it was going towards low-risk investments, leading them to trust him enough to send checks from their savings accounts as payments for bills or children’s gifts. At trial, some victims described feeling abandoned by their former adviser.