M O R G A N S TA N L E Y

Transcription

1 M O R G A N S TA N L E Y T H E D O O L A N / E L D R E D G E G R O U P AT M O R G A N S TA N L E Y 100 Middle Street, 3 rd Floor Portland, ME (207) Toll Free: (800)

2 A G E N D A MORGAN STANLEY WEALTH MANAGEMENT (PG 4) Client Principles MEET THE DOOLAN/ELDREDGE GROUP (PG 6) CUSTOMIZED WEALTH MANAGEMENT PROCESS (PG 13) MORGAN STANLEY FRANCHISE (PG 24) Overview Morgan Stanley Global Footprint Comprehensive Capabilities 2

3 M O R G A N S T A N L E Y W E A L T H M A N A G E M E N T 3

4 C L I E N T P R I N C I P L E S COMMITMENT TO CLIENTS Manage investments with an unwavering focus on your financial strategy and personal goals CLIENT PRINCIPLES CONFIDENCE in a business that has navigated over 75 years of market cycles ACCESS to Morgan Stanley s brightest people and best resources Structure wealth and customize solutions based solely on an objective view of your needs Simplify financial complexity to help you achieve clarity and control Align your strategy with the values that have shaped your life and constitute the core of your legacy An exclusive FOCUS on wealthy individuals, families and small businesses Objective solutions for your family s needs that reflect our INSIGHT into the complex financial world The highest levels of PERSONAL SERVICE by serving a limited number of clients per advisor We are committed to maintaining the principles that have placed Morgan Stanley at the forefront of the financial markets since 1935, and look forward to continuing to share our legacy with you as you seek to build yours. 4

5 O U R C O R E V A L U E S Since our founding, Morgan Stanley has consistently delivered fist-class business in a first class way. Underpinning all that we do are four core values. Putting Clients First Always keep the client s interest first. Work with colleagues to deliver the best of the Firm to every client. Listen to what the client is saying and needs. Leading with Exceptional Ideas Win by breaking new ground. Let the facts and different points of view broaden your perspective. Be vigilant about what we can do better. Doing The Right Thing Act with integrity. Think like an owner to create long-term shareholder value. Value and reward honest, collegiality and character. Giving Back Be generous with your expertise, your time and your money. Invest in the future of our communities and our Firm. Mentor our next generation. 5

6 M E E T T H E D O O L A N / E L D R E D G E G R O U P 6

7 T H E D O O L A N / E L D R E D G E G R O U P WHAT DIFFERENTIATES US? Small Boutique within a Preeminent Investment Bank Deep and Reliable Client Service Model Each client hears from us on a regular basis Customized asset allocation World Class Resources Broad non-proprietary alternative investment platform Internal strategic estate and financial planning specialist One of largest underwriters of municipal bonds (source: Bloomberg U.S. Municipal Bond Underwriter Rankings) Fee Conscious Use of individual stocks, bonds and ETFs keeps client management fees down Tax Sensitivity Year-end tax reviews to help remove avoidable capital gains Use of municipal bonds where appropriate Ability to integrate with client s team (i.e. CPA, Estate Attorney) In-Depth Financial Planning Compare multiple financial planning scenarios Stress test the client s financial plan National and State Recognition Todd was selected as Barron s Magazine Top 1200 Financial Advisors in 2014, 2015, 2016, 2017 and 2018, achieving the #1 ranking in Maine from Todd was also named to Forbes Magazine Best-In-State Wealth Advisors in 2018 and has been a consistent member of Morgan Stanley s President s Club since

8 M E E T T H E D O O L A N / E L D R E D G E G R O U P As the Portfolio Manager, Todd manages the selection, performance and risk in our portfolios. Having grown up outside of New York and with a father in the business, Todd always knew he wanted to work on Wall Street. After graduation from Brown University in 1985, he became an Institutional Equity Trader for Lehman Brothers. He and his wife relocated to Maine in 1989 when he became a Financial Consultant for Smith Barney. Todd has served as Past President of the Rotary Club of Freeport and as an Assistant Governor of Rotary District #7780. Todd is also a past Board Member of Freeport Community Services and the TriTown Little League. Todd currently mentors disadvantaged teens through the Seeds of Independence Jump-Start program. Recently Todd helped get the Brown Club of Maine started and currently serves as its President. Todd and his wife Cindy currently live in South Freeport, Maine and have two adult children. In Todd s spare time, he enjoys golf, skiing, and traveling with his family. TODD H. DOOLAN Senior Vice President Financial Advisor Senior Portfolio Management Director Todd was selected as Barron s Magazine Top 1200 Financial Advisors in 2014, 2015, 2016, 2017 and 2018, achieving the #1 ranking in Maine from Todd was also named to Forbes Magazine Best-In-State Wealth Advisors in Todd holds his Series 7, 63, 65. He is also licensed to offer life insurance, annuities and long-term care. Since joining Morgan Stanley in 2012, Iain has designed financial plans for a variety of clients ranging from small business owners to multi-generational families. This experience allows him to tailor a financial plan and customized portfolio for each clients goals, risk tolerance and time frame. Iain is also a graduate of Brown University where he earned a bachelor s degree in Economics and played varsity soccer for a national caliber program. Iain grew up in Cumberland, ME and attended Greely High School. After Brown he had great experiences with two of Maine s largest employers; Idexx and Hannaford Brothers. He also spent time with world renowned Vail Resorts, which helped him see firsthand what exceptional client service is all about. IAIN C. ELDREDGE Financial Advisor Portfolio Manager Financial Planning Specialist Iain is currently a member of the Maine Estate Planning Council. Iain is also a volunteer coach with the local Seacoast Maine youth soccer teams and Greely High School Boys Varsity soccer team. Outside of work Iain enjoys coaching soccer, skiing and reading. Iain holds his Series 7, 63, 65. He is also licensed to offer life insurance, annuities and long-term care. 8

9 M E E T T H E D O O L A N / E L D R E D G E G R O U P Terry is the main operational contact including account related services, proactively resolving client issues and concerns. Terry is also responsible for taking and placing customer orders in brokerage and advisory accounts Terry s career in financial services began 25 years ago with A.G. Edwards and Sons in their operations department after a career as a fashion boutique owner. Terry has been with Morgan Stanley for the past 20 years as a Senior Registered Associate and recently earned her Portfolio Associate designation. Her passions outside of work are her son Finn, traveling, sports, music and great food. Terry holds her Series 7, 63 and 66. THERESA A. COBURN Senior Registered Associate Portfolio Associate 9

10 C OV E R AG E C O N T A C T U S Todd H. Doolan Iain C. Eldredge Team Statistics $400 Million in Assets Under Management (as of 1/1/2018) Covering 250 Relationships Families Small Business Owners Medical Professionals Not-for-Profits 2 Financial Advisors 2 Associates $1mm minimum Financial Advisor Senior Vice President Senior Portfolio Management Dir. Phone: todd.h.doolan@morganstanley.com Wealth Management Focus: - Portfolio Management - Tax-Efficient, Growth Strategies Theresa Coburn Senior Registered Associate Portfolio Associate Phone: theresa.a.coburn@morganstanley.com Wealth Management Focus: Client Service Portfolio Rebalancing Financial Advisor Financial Planning Specialist, Portfolio Manager Phone: iain.eldredge@morganstanley.com Wealth Management Focus: - Financial Planning -Long-Term Preservation of Wealth 10

11 ADDITIONAL MORGAN STANLEY RESOURCES S T R A T E G I C E S T A T E & F I N A N C I A L P L A N N I N G S P E C I A L I S T 11

12 C U S T O M I Z E D W E A L T H M A N A G E M E N T P R O C E S S 12

13 A C U S T O M I Z E D A P P R O A C H 1 1 Your family s dynamics, goals and risk tolerance are unique. We will tailor our process to meet your personal and financial needs and objectives. Discovery Process While every client situation is unique, we begin by learning about you, your family and your financial complexities. What we learn helps us to formulate specific strategies and, of equal importance, it helps us customize the entire relationship to your preferences and requirements. 4 Creation of a Customized Strategic Asset Allocation Managing significant wealth often involves developing a customized asset allocation mix that reflects risk, opportunities and taxation across multiple entities, while integrating your investing and estate plans. This asset allocation 1 becomes the basis for a long-term strategy formalized in your investment policy. 2 Formulation of Tax, Trust and Estate Strategy with Appropriate Advisors After reviewing your balance sheet and existing estate plan, we help analyze your income and estate tax circumstances to identify planning techniques that may be effectively tailored to your personal and financial objectives. We will work with your tax and legal advisors in this effort. 5 Implementation of a Customized Wealth Strategy After comprehensive due diligence and extensive analysis of expected results across a range of market scenarios, investment strategies from our global investment platform can be leveraged to create your portfolio. This process can help to create the most efficient balance of risk and return for your specific strategy. 3 Establish and Maintain Comprehensive Financial Plan We have an in-depth planning process that provides the baseline for all future investment advice. We have the ability to compare multiple financial planning scenarios side by side so that clients may see how different asset allocations, financial goals and life events may effect their financial plan s outcome. 6 Ongoing Assessment of a Family s Portfolio and Wealth Management Needs Coordinating with you and your other advisors, we can conduct ongoing reviews and comprehensive reporting to ensure that your strategy adapts to changing financial and family needs. 1 Asset allocation does not ensure a profit or protect against a loss 13

14 S T E P 1 O F 6 : T H E D I S C OV E R Y P R O C E S S A D I A L O G U E T O I D E N T I F Y Y O U R U N I Q U E F A M I L Y P O S I T I O N Risk Appetite Taxability Liquidity Needs Multi- Generational Family Goals Long Term Goals Restrictions Special Situations Charitable Giving Time Horizon Concentrated Positions Anticipated Wealth Transfers Short Term Goals 14

15 S T E P 2 O F 6 : F O R M U L AT I O N O F TA X, T R U S T, A N D E S TAT E S T R AT E G Y A C O L L A B O R A T I V E A P P R O A C H PROCESS FOR FORMULATING YOUR TAX, TRUST AND ESTATE STRATEGY 1 2 Conduct preliminary due diligence (review of balance sheet and existing documents) Collaboratively discuss income tax and estate planning needs with the client Tax, Trust & Estate Legacy Planning Professionals 2 Your Current External Tax Advisors 3 4 Analyze available planning techniques in relation to client s financial goals Assist clients and their tax and legal advisors in the implementation of a financially integrated estate plan Customized Tax, Trust & Estate Strategy 5 Integrate investment and estate plans (combining asset location with asset allocation 1 ) Your Current External Legal Advisors Your Morgan Stanley Financial Advisor 1 Asset allocation does not ensure a profit or protect against a loss. 2 Morgan Stanley Smith Barney LLC ("Morgan Stanley"), its affiliates, Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.. 15

16 S T E P 3 O F 6 : E S TA B L I S H A N D M A I N TA I N C O M P R E H E N S I V E F I N A N C I A L P L A N A R E A S O F F O C U S Scenarios Ability to compare multiple financial planning scenarios side by side so that client may see how different asset allocations, financial goals and life events may effect their financial plan s outcome Estate Planning We work with Morgan Stanley s Estate Planning team to develop the most appropriate form of tax efficiency for generational wealth transfers as well as consult with, or refer clients to trusted Estate attorneys Donor Advised Funds Through charitable giving and Morgan Stanley s Donor Advised Fund, we can provide outlet for supporting client s causes as well as providing tax relief Financial Planning Tools Access to comprehensive set of tools that can be utilized to create the client s wealth management strategy Long Term Care Analysis Based on client asset level and individual situation we will look at options for potential coverage of hour day of in home care, and about 60% of the private room nursing home cost for client s respective State. 16 *LifeView Advisor and LifeView Goal Analysis are powered by MoneyGuidePro. Z

17 S T E P 4 O F 6 : I N T E G R AT I O N O F TA C T I C A L A S S E T A L LO C AT I O N L E V E R A G I N G M O R G A N S T A N L E Y W E A L T H M A N A G E M E N T I N T E L L E C T U A L C A P I T A L MORGAN STANLEY WEALTH MANAGEMENT GLOBAL INVESTMENT COMMITTEE Morgan Stanley Wealth Management leverages the expertise of the Morgan Stanley Wealth Management Global Investment Committee for both strategic and tactical investment recommendations that are used as a basis from which to create customized recommendations that address clients unique risk profiles The committee is composed of senior investment professionals from Morgan Stanley Wealth Management and its affiliates who have expertise in asset allocation, equity, fixed income, alternative investments, and currencies To enhance long term performance potential while being mindful of adding volatility, the committee suggests tactical adjustments that may be made to take advantage of market opportunities SAMPLE ASSET ALLOCATION FRAMEWORK 1 For Investors with Less than $25MM Investable Assets (Model 3) Balanced Growth SAMPLE ASSET ALLOCATION FRAMEWORK STRATEGIC TACTICAL TOTAL CASH 6% 4% TOTAL FIXED INCOME 32% 23% Short Term Fixed Income 11% 12% US Fixed Income 16% 9% International Fixed Income 1% 0% Inflation Linked 0% 2% High Yield 4% 0% TOTAL EQUITIES 44% 43% U.S. Equity: Large Cap Growth 5% 9% U.S. Equity: Large Cap Value 6% 9% U.S. Equity: MidCap Growth 1% 2% U.S. Equity: Mid Cap Value 2% 2% U.S. Small Cap Growth 1% 2% U.S. Small Cap Value 2% 2% Europe 15% 17% Japan 6% 8% Total Emerging Markets 6% 7% ALTERNATIVE INVESTMENTS 18% 15% REITs 3% 0% Master Limited Partnerships 4% 7% Credit Long/Short 5% 4% Multi-Strategy 6% 4% TOTAL 100% 100% SOURCE: GLOBAL INVESTMENT COMMITTEE AS OF March 31, Asset allocation does not ensure a profit or protect against a loss 17

18 S T E P 5 O F 6 : I M P L E M E N TAT I O N O F T H E C U S TO M I Z E D W E A LT H S T R AT E G Y A C O M P R E H E N S I V E S U I T E O F S O L U T I O N S OPEN ARCHITECTURE INVESTMENT PLATFORM & ADVISORY SERVICES 1 ADVISORY PLATFORM Asset-Based Fee BROKERAGE PLATFORM Transaction-Based Fee TRADITIONAL INVESTMENTS: Equity, Cash Alternatives, Fixed Income ALTERNATIVE INVESTMENTS EQUITY-RELATED FIXED INCOME RELATED ALTERNATIVES Morgan Stanley Wealth Management Separate Account Managers Global Investment Solutions Portfolio Management Advisor Managed Morgan Stanley Investment Management Morgan Stanley/External Managers Hedge Funds Private Equity Fund of Funds Managed Futures Research Calls Syndicate Calendar Derivatives Strategic Equity Portfolios (STEPs) Research and Credit Analyst Calls Interest Rates Corporate Credit Products Municipal Bonds Foreign Exchange Commodities/Futures Private Equity Venture Capital Real Estate Real Assets Managed Futures Commodities Exchange Funds Fund of Funds External Separate Account Managers Nationally recognized investment management firms Hedging Strategies and Risk Management Solutions Structured Investments and Derivatives Hedge Funds Niche Strategies CASH MANAGEMENT BALANCE SHEET & LIABILITY MANAGEMENT FAMILY OFFICE SERVICES 1 Services may be provided by a third-party or through an affiliate of Morgan Stanley Smith Barney LLC 18

19 S T E P 5 O F 6 : I M P L E M E N TAT I O N O F T H E C U S TO M I Z E D W E A LT H S T R AT E G Y S E P A R A T E L Y M A N A G E D P O R T F O L I O S OBJECTIVE: Leverage the extensive resources, talent and reach of the Morgan Stanley Wealth Management franchise to provide clients with professionally managed discretionary portfolios, reflecting each client s specific financial goals, income requirements and risk tolerances GLOBAL INVESTMENT SOLUTIONS: Portfolio Diversification Rigorous Investment Process Extensive Quantitative & Qualitative Inputs Attention to Valuation Tax Efficiency Systematic Risk Management Benchmark Aware, Not Benchmark Driven Applied Equity Advisors Portfolio Strategies Global Concentrated Equity Global Core Equity U.S. Core Equity Tax Enhanced Customized Solutions MSCI World - Russell 3000 Russell 1000 Fundamental Equity Advisors Portfolio Strategies Fundamental All-Cap Equity Portfolio Fundamental All-Cap Equity Portfolio ex-mlps Small/Mid-Cap Equity Fundamental MLP Portfolio Opportunistic Equity Strategy U.S. Opportunistic Equity Strategy For important disclosures, please see the end of this presentation. 19

20 S T E P 5 O F 6 : I M P L E M E N TAT I O N O F T H E C U S TO M I Z E D W E A LT H S T R AT E G Y S T R E N G T H O F T H E M O R G A N S T A N L E Y A L T E R N A T I V E I N V E S T M E N T S P L A T F O R M 1 HEDGE FUNDS PRIVATE EQUITY REAL ESTATE MANAGED FUTURES EXCHANGE FUNDS Morgan Stanley Alternative Investments Group Single Manager HedgePremier (Feeder) Direct (Third Party) Single Manager Feeder (Third Party) Direct (Third Party) Single Manager Feeder (Third Party) Direct (Third Party) Single Manager Managed Futures Premier (Proprietary) Single Manager (Third Party) Fund of Funds Registered & LPs (Third Party) Fund of Funds Third Party Multi-Manager (Proprietary) MSIM Alternative Investment Partners 2 Single Manager Direct (Third Party) Fund of Funds Registered & LPs (Proprietary) Fund of Funds (Proprietary) Co-Investment Secondaries Fund of Funds (Proprietary) Co-Investment Secondaries Custom Portfolios Discretionary & Non-Discretionary MSIM Merchant Bank & Real Estate Investing 2,3 Single Manager (Proprietary) Global PE Asia PE Infrastructure Mezzanine Lending Single Manager (Proprietary) MS Real Estate Funds 1 Alternative investments mentioned above refers to unregistered products as well as those products registered with the Securities Act of 1933 and Investment Company Act of Alternative Investment Partners (AIP) and Merchant Bank are each a division of Morgan Stanley Investment Management. Morgan Stanley Investment Management also offers other, more traditional products such as equity, fixed income and liquidity mutual funds which are not distributed by Morgan Stanley AIG. 3 MSIM also offers a global macro strategy hedge fund on the Morgan Stanley Alternative Investments Platform through their Long Only group. For illustrative purposes only. Not complete in depiction MS AIG offers a wider range of alternative investments. For Qualified Investor and Financial Professional Use Only. May not be used with general public. Please see important disclosures at the end of this material. 20

21 S T E P 5 O F 6 : I M P L E M E N TAT I O N O F T H E C U S TO M I Z E D W E A LT H S T R AT E G Y A C C E S S T O C A S H M A N A G E M E N T & L E N D I N G P R O D U C T S & S E R V I C E S Securities Based Lending Morgan Stanley Residential Mortgage Loans Tailored Lending 3rd Party Lenders 1 Cash Management Purpose (Margin) and Non-Purpose Products Conforming, Non-Conforming ARMs HELOCs Collateral U.S. and International Eligible securities Commercial Real Estate Certain Hedge Fund Interests Commercial Lending Aviation Yacht/RV Access to Cash Management Services REIT Operating Units Fine Art 21

22 S T E P 6 O F 6 : O N G O I N G A S S E S S M E N T O F M A N A G E M E N T N E E D S O N G O I N G A S S E S S M E N T T O H E L P M E E T Y O U R C H A N G I N G F I N A N C I A L & F A M I L Y N E E D S Review of Strategic Asset Allocation 1 Your strategic asset allocation is analyzed quantitatively and qualitatively in relation to your investment policy statement to confirm that your specific needs are being addressed Execution or Tactical Adjustments Leverage the Firm s intellectual capital and investment platform to integrate tactical changes to your asset allocation framework Review of Investment Policy Your individualized investment policy statement is reviewed to ensure that your investment objectives evolve with your current personal and financial needs Review of Portfolio Performance The appropriateness of each holding, based upon performance and your investment objectives, is assessed Breadth of Experience to Adapt to Changing Client Needs 1 Asset allocation does not ensure a profit or protect against a loss. 22

23 M O R G A N S T A N L E Y F R A N C H I S E 23

24 M O R G A N S T A N L E Y F R A N C H I S E Our team is uniquely positioned to deliver the Morgan Stanley s global resources to each client. $1 Tn+ in AUM 3 $2.4 Tn in client assets 2 16,000 Financial Advisors and Private Wealth Advisors in 600 locations 1 Global employees approximately 57, MORGAN STANLEY FRANCHISE POWER 1 The Tier 1 Capital Ratio under Basel I was approximately 16.5% and leverage 8.3% 2 No. 1 in Investment Advisory assets under management 3 Stable Credit rating A3, BBB+ and A by Moody s, S&P and Fitch respectively 2 MORGAN STANLEY WEALTH MANAGEMENT Clients Individuals UHNW Individuals, Families and their Foundations Small- to medium-size businesses and institutions Products and Services Brokerage and investment advisory services Financial and wealth planning services Annuity and insurance products Access to Cash Management and Lending products and services Retirement plan services Trust services INSTITUTIONAL SECURITIES GROUP Investment Banking Capital raising Corporate lending Financial advisory services, including advice on mergers, and acquisitions, restructurings, real estate and project finance Sales, Trading, Financing and Market-Making Activities Equity securities and related products Fixed income securities and related products, including foreign exchange and commodities Research Mortgage servicing Prime brokerage INVESTMENT MANAGEMENT Global Asset Management Equity and Fixed Income Merchant Banking Alternative Investment Partners Liquidity Management Three Principal Distribution Channels A proprietary channel consisting of Morgan Stanley s representatives A non-proprietary channel consisting of third-party broker-dealers, banks, financial planners and other intermediaries An institutional channel that provides advisory services and global portfolio solutions to corporations, central banks, sovereign wealth funds, endowments and foundations, public pensions, insurance general accounts and financial institutions 1 Morgan Stanley Wealth Management Data as of January Number is approximate. 2 Morgan Stanley Annual Report, January Cerulli Associates. 4Q 2017 Summary, Managed Account Research 24

25 C O M P R E H E N S I V E C A P A B I L I T I E S 1 INVESTMENT MANAGEMENT Assistance with your Investment Policy Statement Tax Effective Asset Allocation Portfolio Construction and Management Open Architecture Platform Morgan Stanley Proprietary Investment Opportunities Exclusive Co-investment Opportunities Money Manager Due Diligence Research Alternative Investments TRUST, ESTATE & LEGACY PLANNING Wealth Transfer and Trust Strategies Current Will, Trust and Insurance Review 1 Foundation and Other Charitable Giving Strategies Stock Option Analysis Pre-liquidity Planning Coordination with Outside Legal and Tax Advisors FINANCIAL PLANNING Goals-Based Planning Cash Flow Planning Retirement Planning ONLINE & MOBILE APP CAPABILITIES Manage Accounts Online Trade Securities, Transfer Funds, and Pay Bills Online Asset Aggregation Tool edelivery Mobile App available for iphone RISK MANAGEMENT Hedging Strategies Concentrated / Restricted Stock Advice Interest Rate Risk Management Currency Exposure Strategies Portfolio Protection Solutions Insurance Solutions CORPORATE SERVICES Directed Shares, Stock Plans, 10b5-(1) Programs Capital Markets and Investment Banking Interaction Cash Management Services Retirement and Pension Plans FAMILY OFFICE SERVICES Family Governance and Dynamics Philanthropy Management Educational Programs Custody Performance Management Health Advisory 1 Lifestyle Advisory 1 Personal Security 1 ACCESS TO CASH MANAGEMENT AND LENDING PRODUCTS AND SERVICES Securities Based Lending Residential Mortgage Lending Tailored Lending Cash Management Services Financing of Aircraft, Sports Teams, Yachts and Art available through third party lenders Commercial Lending 1 Services provided by third parties and affiliates not Morgan Stanley Wealth Management 25

26 M O R G A N S T A N L E Y O N L I N E C A P A B I L I T I E S Morgan Stanley Online delivers secure, convenient, online access to your Morgan Stanley accounts. It helps you stay informed so you and your financial advisor can work together to make decisions. Morgan Stanley Online Features View and Manage Your Accounts Online Easily navigate between your Account Summary, Activity, Holdings, Gain/Loss, and Account Documents Customize your Account Summary Home Page and online experience based on your priorities, preferences and interests Stay Current with the Latest Research and News View and download research reports from Morgan Stanley and Standard & Poor s Get quotes, charts, SEC filing documents, mutual fund prospectuses, and investment reports for most publicly traded companies Use Watchlists to track up to 250 securities you own or want to watch Trade Securities, Transfer Funds, and Pay Bills Online (For Eligible Accounts) Trade stocks, ETFs and options online, manage your orders, and collaborate with your financial advisor on your investment goals Transfer money online between your Morgan Stanley accounts and your accounts at other financial institutions Get edelivery of Account Documents Instead of Paper Documents by Mail Get your statements, tax forms, trade confirmations, and other important account documents online from one convenient place Receive an notification when your online documents are available for viewing Reduce waste and clutter by no longer receiving paper documents by mail Simplify Your Financial Life with Asset Aggregation Organize all of your account information in one location, regardless of where your accounts are held Get a current, comprehensive understanding of your overall financial situation Automatically share your account data with your financial advisor Give Family Members and Personal Advisor Access to Your Account Securely grant family members and trusted professionals access to view your accounts Access your accounts held at different branches with a single user name and password MOBILE APPLICATION The Morgan Stanley Mobile App, currently available for iphone, ipad and Android TM, is the only mobile solution designed exclusively for the needs of Morgan Stanley Wealth Management clients and: Provides access to a full suite of personal cash management functions, including the ability to pay bills and transfer funds Allows you to scan and deposit checks drawn on a U.S. bank 1 with some of the highest deposit limits in the industry 2 Provides secure access to your investment portfolio, allowing you to check asset allocations and holdings Offers up-to-date news, research**, company profiles and quotes Available for download from the App Store sm for iphone and ipad and on Google Play TM for Android. 1 Subject to certain terms and conditions. 2 Up to a daily limit of $100,000 for existing Reserved customers. Morgan Stanley Smith Barney LLC, member SIPC, reserves the right to change or terminate the Reserved program at any time and without notice. Reserved program participants accounts and activity are reviewed periodically to confirm that they continue to qualify for Reserved. 26

27 D I S C L O S U R E S 27

28 D I S C L O S U R E S : S E C U R I T Y T Y P E I N V E S T I N G R I S K S A. SMALL/MID CAPS U.S. EQUITY Investing in smaller companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. B. INTERNATIONAL/EMERGING MARKETS International investing entails greater risk, as well as greater potential rewards compared to U.S. investing. These risks include potential and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economics. C. FIXED INCOME Fixed Income Securities are subject to interest rate risk, credit risk, prepayment risk, market risk, and reinvestment risk. Fixed Income Securities, if held to maturity, may provide a fixed rate of return and a fixed principal value. Fixed Income Securities prices fluctuate and when redeemed, may be worth more or less than their original cost. D. REITS REITs investing risks are similar to these associated with direct investments in real estate; lack of liquidity, limited diversification, and sensitivity to economic factors such as interest rate charges and market recessions. E. PRIVATE EQUITY Private equity interests may be highly illiquid, involve a high degree of risk and be subject to transfer restrictions. F. MANAGED FUTURES Managed futures investments are speculative, involve a high degree of risk, use significant leverage, are generally illiquid, have substantial charges, subject investors to conflicts of interest, and are suitable only for the risk capital portion of an investor s portfolio. Before investing in any partnership and in order to make an informed decision, investors should read the applicable prospectus and/or offering documents carefully for additional information, including charges, expenses and risks. Investors should read the prospectus and/or offering documents carefully for additional information, including charges, expenses and risks. Managed futures investments do not replace equities or bonds but rather may act as a complement in a well diversified portfolio. G. REAL ASSETS The prices of real assets precious metals tend to fluctuate widely and in a unpredictable manner, and have historically experienced periods of flat or declining prices. Their prices are affected by several factors, including global supply and demand, investors expectations with respect to the rate of inflation, currency exchange rates, interest rates, investment and trading activities of hedge funds and commodity funds, and global or regional political, economic or financial events and situations. H. COMMODITIES Investing in commodities entails significant risks. Commodity prices may be affected by a variety of factors at any time, including but not limited to, (i) changes in supply and demand relationships, (ii) governmental programs and policies, (iii) national and international political and economic events, war and terrorist events, (iv) changes in interest and exchange rates, (v) trading activities in commodities and related contracts, (vi) pestilence, technological change and weather, and (vii) the price volatility of a commodity. In addition, the commodities markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention. I. MASTER LIMITED PARTNERSHIPS Master Limited Partnerships (MLPs) are (rolled-up) limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. 28

29 D I S C L O S U R E S : S E C U R I T Y T Y P E I N V E S T I N G R I S K S C O N T D J. STRUCTURED PRODUCTS An investment in Structured Investments involves risks. These risks can include, but are not limited, to: fluctuations in the price, level or yield of underlying instruments, interest rates, currency values and credit quality; substantial loss of principal; limits on participation in appreciation of underlying instrument; limited liquidity; credit risk of the issuer; and, conflicts of interest. K. These materials are provided for general informational and educational purposes based upon publically available information from sources believed to be reliable. These materials do not take into account your personal circumstances and we do not represent that this material is complete or applicable to your situation. These materials do not constitute an offer to either buy or sell securities or to participate in any trading strategy. These materials may change at any time without notice to you. L. Indices are unmanaged. An investor cannot invest directly in an index. M. Global Investment Solutions is an initiative dedicated to transforming compelling ideas from wherever they arise into innovative investments for the firm s clients.. The Global Investment Solutions initiative includes an investment management business within the global Morgan Stanley Smith Barney LLC (Morgan Stanley Wealth Management) group of companies that draws on the collective thinking of four experienced portfolio management teams. These teams share a singular vision: to deliver professional investment advice centered on a culture of investment excellence. Each portfolio team within Global Investment Solutions specializes in particular asset classes and investment styles. Possessing extensive knowledge within their respective disciplines, the teams also have the ability to draw on the capital markets analytics and world-wide investment expertise of the Morgan Stanley family of companies and extensive non-proprietary resources. All services of Global Investment Solutions are delivered to clients in the United States only by Morgan Stanley Wealth Management. These materials are intended only for clients and prospective clients in the United States. N. Any allocation containing alternative investments should note that they are highly illiquid and are only suitable for investors willing to put capital at risk for an indefinite period of time. Alternative investments often engage in leverage and other speculative investment practices, may involve complex tax structures, typically have higher fees, and generally are not subject to the same regulatory requirements as traditional asset classes. O. 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 in a fund; 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 Risks associated with the operations, personnel, and processes of the manager. P. Consulting Group is a business of Morgan Stanley Smith Barney LLC. 29

30 D I S C L O S U R E S Q. Borrowing against securities may not be suitable for everyone. You should be aware that securities-based loans involve a high degree of risk and that market conditions can magnify any potential for loss. Most importantly, you need to understand that: 1. Sufficient collateral must be maintained to support your loan(s) and to take future advances; 2. You may have to deposit additional cash or eligible securities on short notice; 3. Some or all of your securities may be sold without prior notice in order to maintain account equity at required maintenance levels. You will not be entitled to choose the securities that will be sold. These actions may interrupt your long-term investment strategy and may result in adverse tax consequences or in additional fees being assessed; 4. Morgan Stanley Bank, N.A., Morgan Stanley Private Bank, National Association or Morgan Stanley Smith Barney LLC (collectively referred to as Morgan Stanley ) reserves the right not to fund any advance request due to insufficient collateral or for any other reason except for any portion of a securities based loan that is identified as a committed facility; 5. Morgan Stanley reserves the right to increase your collateral maintenance requirements at any time without notice; and 6. Morgan Stanley reserves the right to call securities based loans at any time and for any reason. The proceeds from certain securities based loan products may not be used to purchase, trade, or carry margin stock (or securities, with respect to Express CreditLine); repay margin debt that was used to purchase, trade or carry margin stock (or securities, with respect to Express CreditLine); and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account. To be eligible for a securities based loan, a client must have a brokerage account at Morgan Stanley Smith Barney LLC that contains eligible securities, which shall serve as collateral for the securities based loan. Residential mortgage loans are offered by Morgan Stanley Private Bank, National Association, an affiliate of Morgan Stanley Smith Barney LLC. With the exception of the pledged asset feature, an investment relationship with Morgan Stanley Smith Barney LLC does not have to be established or maintained to obtain the residential mortgage products offered by Morgan Stanley Private Bank, National Association. All residential mortgage loans are subject to the underwriting standards and independent approval of Morgan Stanley Private Bank, National Association. Rates, terms, and programs are subject to change without notice. Residential mortgage loans may not be available in all states; not available in Guam, Puerto Rico and the U.S. Virgin Islands. Other restrictions may apply. This document should not be construed as a commitment to lend. Morgan Stanley Private Bank, National Association is an Equal Housing Lender and member FDIC that is primarily regulated by the Office of the Comptroller of the Currency. Nationwide Mortgage Licensing System Unique Identifier # The proceeds from a residential mortgage loan (including draws and advances from a home equity line of credit) are not permitted to be used to purchase, trade or carry eligible margin stock; repay margin debt that was used to purchase, trade or carry margin stock; or to make payments on any amounts owed under the note, loan agreement, or loan security agreement; and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account. Morgan Stanley Smith Barney LLC Westchester Avenue, Purchase, NY Tel: Nationwide Mortgage Licensing System Unique Identifier No Arizona Mortgage Broker License No California Department of Corporations Finance Lenders Law License No. 603H431. Georgia Residential Mortgage Licensee No Kansas Licensed Mortgage Company No. MC Massachusetts Mortgage Broker License No. MB5439. Montana Mortgage Broker License No Licensed by the New Hampshire Banking Department. Licensed by the New Jersey Department of Banking and Insurance. Registered Mortgage Broker NYS Banking Department. Mortgage brokers may not make loans. Ohio Mortgage Broker Act Certificate of Registration No. MB Rhode Island Licensed Loan Broker. 30

31 D I S C L O S U R E S C O N T D Tailored Lending is a loan/line of credit product offered by Morgan Stanley Private Bank, National Association, an affiliate of Morgan Stanley Smith Barney LLC. A Tailored Lending credit facility may be a committed or demand loan/line of credit. All Tailored Lending loans/lines of credit are subject to the underwriting standards and independent approval of Morgan Stanley Private Bank, National Association. Tailored Lending loans/lines of credit may not be available in all locations. Rates, terms, and programs are subject to change without notice. The ongoing availability of a secured Tailored Lending loan/line of credit is contingent, among other things, on the client maintaining sufficient eligible collateral. Other restrictions may apply. This document should not be construed as a commitment to lend. Morgan Stanley Private Bank, National Association is a member FDIC that is primarily regulated by the Office of the Comptroller of the Currency. The proceeds from a Tailored Lending loan/line of credit (including draws and other advances) may not be used to purchase, trade, or carry margin stock; repay margin debt that was used to purchase, trade or carry margin stock; and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account. Margin Loans are investment products offered through Morgan Stanley Smith Barney LLC. Margin Loans are securities based loans, which can be risky, and are not suitable for all investors. R. Tax laws are complex and subject to change. This information is based on current law s in effect at the time this was written. Morgan Stanley Smith Barney LLC, its affiliates, employees and financial advisors are not in the business of providing tax or legal advice, and these Individuals should consult their personal tax advisor for matters involving taxation and tax planning and their attorney for matters involving personal trusts and estates planning. S. Morgan Stanley Smith Barney LLC does business as Morgan Stanley Wealth Management. Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services. Investment services are offered through Morgan Stanley Smith Barney LLC. Unless specifically disclosed in writing, investments and services offered through Morgan Stanley Smith Barney LLC 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. T. Investment and services offered through Morgan Stanley Wealth Management, a division of Morgan Stanley Smith Barney LLC. Member SIPC. U. V. Forex transactions have inherent risk, including the potential loss of principal, and are not suitable for all investors. Forex transactions may be subject to exchange (or currency) risk or, the risk that an investor will have to close out a long or short position in a foreign currency at a loss due to an adverse movement in exchange rate. Before undertaking Forex transactions, you should understand the associated risks. Engaging in foreign currency transactions entails more varied risks than normally associated with transactions in the domestic securities markets. Attention should be paid to market, credit, sovereign and liquidity risks. Cash or forward positions in foreign currencies are volatile and involve inherent risks including the effect of leverage. The potential of loss is a significant consideration. Because of the effect of leverage, a relatively small market movement will have a proportionately large impact on the funds deposited. This loss can be equal to or, in some instances, greater than the full amount of the initial investment. Certain Forex transactions may only be entered into by clients who qualify as Eligible Contract Participants (ECP) as defined by the Commodity Exchange Act. Over-the-counter transactions require investors to be classified as an Eligible Contract Participant, and in certain instances transactions may be executed with a counterparty that is an affiliate of Morgan Stanley Wealth Management. W. Apple, the Apple logo, ipad and iphone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android and Google Play are trademarks of Google Inc. 31

32 D I S C L O S U R E S C O N T D X. Source: Barron's Top 1,200 Financial Advisors, March 12, 2018, as 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 list 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 paid 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. Y. Source: Forbes.com (February 2018). Best-in-State Wealth Advisors ranking was developed by SHOOK Research and is based on in-person and telephone due diligence meetings and a ranking algorithm that includes: client retention, industry experience, review of compliance records, firm nominations; and quantitative criteria, including: assets under management and revenue generated for their firms. Investment performance is not a criterion. Rankings are based on the opinions of SHOOK Research, LLC and are not indicative of future performance or representative of any one client s experience. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pay a fee to Forbes or SHOOK Research in exchange for the ranking. For more information: HYPERLINK " Important information about your relationship with your Financial Advisor and Morgan Stanley Smith Barney LLC when using LifeView Goal Analysis or LifeView Advisor. When your Financial Advisor prepares and delivers a Financial Goal Analysis (i.e., when using LifeView Goal Analysis), they will be acting in a brokerage capacity. When your Financial Advisor prepares a Financial Plan (i.e., when using LifeView Advisor), they will be acting in an investment advisory capacity with respect to the delivery of your Financial Plan. This Investment Advisory relationship will begin with the delivery of the Financial Plan and ends thirty days later, during which time your Financial Advisor can review the Financial Plan with you. To understand the differences between brokerage and advisory relationships, you should consult your Financial Advisor, or review our Understanding Your Brokerage and Investment Advisory Relationships brochure available at CRC /2018 Morgan Stanley Smith Barney LLC. Member SIPC. Z. A LifeView Financial Goal Analysis or LifeView Financial Plan ( Financial Plan ) is based on the methodology, estimates, and assumptions, as described in your report, as well as personal data provided by you. It should be considered a working document that can assist you with your objectives. Morgan Stanley Smith Barney LLC ( Morgan Stanley ) makes no guarantees as to future results or that an individual s investment objectives will be achieved. The responsibility for implementing, monitoring and adjusting your financial goal analysis or financial plan rests with you. After your Financial Advisor delivers your report to you, if you so desire, your Financial Advisor can help you implement any part that you choose; however, you are not obligated to work with your Financial Advisor or Morgan Stanley. 32