RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS

NOVEMBER 6, 2014

Equity Model Portfolio Solutions Monthly NORTH AMERICA DANIEL SKELLY Morgan Stanley Wealth Management [email protected] +1 212 296-5109 SACHIN MANCHANDA Morgan Stanley Wealth Management [email protected] +1 212 296-5065

Equity Model Portfolios Monthly What's Inside? For each of the five individual equity-oriented portfolios, we summarize monthly changes, and show recent performance. October changes by portfolio: US Model Added:

KATY ZHAO Morgan Stanley Wealth Management [email protected] +1 212 296-5105 ELIZABETH HARROW Morgan Stanley Wealth Management [email protected] +1 212 296-5118

Removed:

2% position in EOG Resources (EOG) – 10/7 2% position in American Express (AXP) – 11/3 2% position in Colgate (CL) – 10/7 2% position in eBay (EBAY) – 11/3

Global Equity Added: Reduced:

2% position in National Oil Varco (NOV) – 10/27 Cash by 2%

Dividend Equity

No changes this month

US All Cap Growth 4% position in Nike (NKE) – 11/3 Added: 4% position in eBay (EBAY) – 11/3 Removed: US Long Run Deep Value 2.5% position in Occidental Petroleum (OXY) – Added: Increased: Removed:

11/3 2.5% position in Macy’s (M) to 5% – 11/3 5.0% position in Consolidated Edison (ED) – 11/3

Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. Morgan Stanley Wealth Management does and seeks to do business with companies covered in Morgan Stanley Wealth Management Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Wealth Management Research. Investors should consider Morgan Stanley Wealth Management Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.

4

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Table of Contents US Model

p.3

Global Equity

p.5

Dividend Equity

p.7

US All Cap Growth

p.9

US Long Run Deep Value

p.11

Disclosures

p.14

Please refer to important information, disclosures and qualifications at the end of this material.

2

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

US Model Number of stocks currently included: Average yield as of October 31, 2014: Portfolio turnover as of (2013):

40 2.0% 31%

Total Return Performance Through 10/31/2014 Period Rates of Returns

US Model

October Rolling Quarter Year-to-Date 1 Year 3 Years Annualized 5 Years Annualized Since 12/31/1995 (Ann.) Inception (Cumulative)

3.2% 5.6% 13.5% 21.1% 18.7% 15.4% 9.9% 496.3%

S&P 500 Index

2.4% 5.0% 11.0% 17.3% 19.8% 16.7% 8.5% 364.2%

October Top 3 Bottom 3 Return Contributors 0.3 0.2

0.2

Difference

US Model

S&P 500

1996*

26.8%

22.9%

3.9%

1997

31.2%

33.4%

-2.2%

1998

29.4%

28.6%

0.8%

1999

19.6%

21.0%

-1.4%

2000

-0.1%

-9.2%

9.1%

-9.5%

-11.8%

2.3%

2002

-20.6%

-22.1%

1.5%

2003

30.3%

28.7%

1.6%

2004

10.3%

10.9%

-0.6%

2005

15.6%

4.9%

10.6%

2006

13.3%

15.8%

-2.5%

2007

13.5%

5.5%

8.0%

2008

-35.5%

-37.0%

1.5%

2001

2009

23.8%

26.5%

-2.7%

2010

12.1%

15.1%

-3.0% -0.2%

2011

1.9%

2.1%

2012

16.0%

16.0%

0.0%

2013

26.1%

32.4%

-6.3%

Source: Company data, Morgan Stanley Wealth Management Investment Resources

-0.2

V

AMGN

MA

TMO

-0.2

EBAY

-0.2

Results shown represent total return (includes dividends) and exclude brokerage commissions. Had the results reflected brokerage commissions, the performance would have been lower. Past performance is no guarantee of future results. These figures are audited by Zacks Investment Research at year end, but are not intended to demonstrate actual returns from any individual portfolio.

HOT

Source: Morgan Stanley Wealth Management Investment Resources, Bloomberg as of October 31, 2014

Please refer to important information, disclosures and qualifications at the end of this material.

3

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Portfolio Holdings US Model Sector/Ticker/Company

MS MS Indus Stock View Rating

Consumer Discretionary (10.0% vs. S&P 500 11.7%) A O CBS CBS Home Depot I E HD A O Starwood Hotels HOT O Time Warner Inc. A TWX Yum! Brands I E YUM Consumer Staples (9.0% vs. S&P 500 9.7%) O I Costco COST Estee Lauder I O EL O I PepsiCo PEP Philip Morris Intl I O PM Energy (13.0% vs. S&P 500 9.2%) E I Chevron CVX A O EOG Resources EOG Kinder Morgan A E KMI Schlumberger I O SLB A O Williams Cos WMB Finance (18.0% vs. S&P 500 16.4%) O ACE Limited I ACE O A American Express AXP O BlackRock I BLK A O J.P.Morgan Chase JPM O I Prologis PLD Prudential Financial I O PRU E Wells Fargo A WFC

Mkt Cap ($ bns)

Incl. Date

1.1 1.9 1.8 1.6 2.3

27.4 129.2 13.5 64.1 31.5

9/4/14 8/27/13 11/1/13 2/28/14 8/5/10

25 23 20 17

1.1 1.3 2.7 4.5

59.8 27.3 144.8 139.0

7/15/14 3/12/13 7/26/02 3/28/08

12 18 NM 18 NM

14 20 NM 16 NM

3.6 0.7 4.5 1.6 4.0

219.1 49.5 38.5 121.2 40.5

3/16/11 10/7/14 8/20/12 9/23/09 5/1/12

9.71 6.00 21.26 6.20 0.45 10.20 4.10

11 16 17 11 NM 9 13

11 15 16 10 NM 9 13

2.4 1.2 2.3 2.6 3.2 2.4 2.7

36.4 94.5 57.4 225.2 20.8 40.5 277.8

5/31/13 11/3/14 11/15/11 7/9/03 10/2/13 6/12/14 10/17/12

Rec'd Wt. (%)

10/31/14 Price

MS Tgt.

ModelWare EPS 15e 13a 14e

14e P/E

15e P/E

2.0 2.0 2.0 2.0 2.0

54 98 77 79 72

63 92 90 90 71

3.02 3.76 2.99 3.77 3.02

3.15 4.56 2.85 4.00 3.28

3.53 5.23 3.44 4.76 3.68

17 21 27 20 22

15 19 22 17 20

2.0 2.0 2.0 3.0

133 75 96 89

134 83 103 92

4.50 2.55 4.37 5.40

4.79 2.98 4.60 5.09

5.38 3.26 4.90 5.24

28 25 21 17

4.0 2.0 2.0 2.0 3.0

120 95 39 99 56

140 136 43 135 63

11.00 4.11 0.30 4.79 0.86

10.09 5.42 1.27 5.63 0.78

8.62 4.71 1.58 6.04 1.39

2.0 2.0 3.0 4.0 2.0 3.0 2.0

109 90 341 60 42 89 53

121 110 400 76 48 106 58

9.35 4.86 16.59 4.65 0.95 9.67 3.89

9.57 5.55 19.62 5.49 0.50 9.75 4.05

Ind. Yld.

Health Care (13.0% vs. S&P 500 14.3%) I I I I I I

O O O E O O

2.0 2.0 2.0 2.0 2.0 3.0

44 162 203 70 95 118

48 165 205 75 84 146

2.03 7.60 7.34 4.69 5.50 5.42

1.97 8.50 10.58 4.87 5.65 6.92

2.26 9.20 12.16 4.71 6.12 7.97

22 19 19 14 17 17

19 18 17 15 16 15

2.0 1.5 0.5 3.0 1.6 0.5

65.6 122.0 47.2 37.1 92.3 47.3

5/14/14 4/8/14 10/1/14 7/27/04 11/26/13 3/13/12

I I A I

O O O O

3.0 3.0 3.0 3.0

80 96 116 107

82 108 129 125

3.41 4.97 4.71 6.21

3.68 5.55 5.60 6.85

3.96 6.11 6.65 7.25

22 17 21 16

20 16 18 15

0.5 2.2 1.7 2.2

56.2 74.6 102.5 97.4

4/30/13 9/23/10 7/30/13 3/24/06

Information Technology (17.0% vs. S&P 500 19.6%) C O Apple AAPL E Google A GOOGL O Mastercard I MA I E Oracle ORCL E Qualcomm C QCOM O Visa I V

4.0 3.0 2.0 3.0 2.0 3.0

108 568 84 39 79 241

115 600 93 45 NA 270

5.87 23.30 2.62 2.79 4.51 7.97

7.00 25.00 2.95 2.90 5.53 9.47

8.33 28.64 3.60 3.18 5.88 10.97

15 23 28 13 14 25

13 20 23 12 13 22

1.7 0.0 0.5 1.2 2.1 0.8

636.9 379.0 97.1 173.4 129.2 151.4

5/29/09 4/3/13 7/15/14 8/8/08 1/11/10 4/15/10

O

2.0

115

150

4.67

5.21

6.24

22

18

1.7

54.9

6/14/13

O

2.0

78

91

0.26

0.94

1.38

NM

NM

4.2

26.1

12/15/11

O

2.0

100

114

4.96

5.19

5.61

19

18

2.9

44.1

2/7/14

ABT AMGN MCK BAX UNH TMO

Abbott Laboratories Amgen McKesson Baxter UnitedHealth Thermo Fisher Scientific

Industrials (12.0% vs. S&P 500 10.4%) Danaher DHR Honeywell HON Union Pacific UNP United Technologies UTX

Materials (2.0% vs. S&P 500 3.3%) Monsanto A MON Telecom Services (2.0% vs. S&P 500 2.4%) Crown Castle International C CCI Utilities (2.0% vs. S&P 500 3.2%) NextEra Energy I NEE Cash 2.0%

Source: Company data, Morgan Stanley & Co. LLC (Morgan Stanley), Morgan Stanley Wealth Management Investment Resources, Bloomberg as of October 31, 2014 Morgan Stanley Research Ratings Definitions: NC–Not Covered by Morgan Stanley Research Stock Ratings: OW–Overweight; EW–Equal-weight; UW–Underweight; NR–Not Rated; Morgan Stanley Industry View: A–Attractive; I–In-Line; C–Cautious Other: NA–Not Available/Not Applicable; NM–Not Meaningful; e–Estimate ++Rating for this company has been removed from consideration in this report because, under applicable law and/or Morgan Stanley & Co. policy, Morgan Stanley & Co. may be precluded from issuing such information with respect to this company at this time. For valuation methodology and risks associated with any Morgan Stanley & Co. price targets above, please email [email protected] with a request for valuation methodology and risks on a particular stock. Please visit https://www.morganstanley.com/online/researchdisclosures for more information about Morgan Stanley’s stock rating system.

Please refer to important information, disclosures and qualifications at the end of this material.

4

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Global Equity Number of stocks currently included:

35

Average yield as of October 31, 2014

2.1%

Portfolio turnover as of (2013):

30%

Total Return Performance Through 10/31/2014 Period

Global

Rates of Returns

October Rolling Quarter Year-to-Date 1 Year 3 Years Annualized 5 Years Annualized Since 02/27/2004 (Ann.) Inception (Cumulative)

MSCI

Equity

ACWI

0.6% 1.5% 5.7% 9.9% 14.5% 11.5% 8.1% 129.3%

0.7% -0.2% 5.0% 8.4% 13.6% 11.2% 7.3% 113.0%

Global Equity

MSCI ACWI 

Difference

2004*

12.6%

11.8%

0.8%

2005

12.6%

11.4%

1.2%

2006

23.1%

21.5%

1.6%

2007

13.6%

12.2%

1.4%

2008

-36.3%

-41.9%

5.6%

27.7%

35.4%

-7.7%

9.7%

13.1%

-3.4%

2009 2010 2011

-3.9%

-6.9%

3.0%

2012

15.1%

16.8%

-1.7%

24.0% 23.4% 0.6% 2013 Source: Company data, Morgan Stanley Wealth Management Investment Resources Results shown represent total return (includes dividends) and exclude brokerage commissions. Had the results reflected brokerage commissions, the performance would have been lower. Past performance is no guarantee of future results. These figures are audited by Zacks Investment Research at year end, but are not intended to demonstrate actual returns from any individual portfolio.

October Top 3 & Bottom 3 Return Contributors 0.3 0.2 0.2

* Inception years represent the stub period return based on the individual portfolio’s inception date.

-0.2

-0.3

-0.5 V

HDB

TV

HMC

BBVA

NBL

Source: Morgan Stanley Wealth Management Investment Resources, Bloomberg as of October 31, 2014

Please refer to important information, disclosures and qualifications at the end of this material.

5

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Portfolio Holdings Global Equity Rec'd Weight (%)

10/31/14 Price

MS Tgt.

ModelWare EPS 13a 14e 15e

14e P/E

15e P/E

Ind. Yld.

Mkt Cap ($ bns)

Incl. Date

Consumer Discretionary (13.0% vs. MSCI ACWI 11.5%) Amazon.com ++ O AMZN Honda Motor A O HMC Televisa I O TV Walt Disney A E DIS Yum! Brands I E YUM

3.0 3.0 3.0 2.0 2.0

305 32 36 91 72

420 37 38 95 71

2.34 2.53 1.06 3.70 3.02

1.67 3.19 0.82 4.45 3.28

3.52 3.26 1.51 4.88 3.68

NM 10 44 21 22

NM 10 24 19 20

0.0 2.5 0.4 0.9 2.3

140.2 56.2 20.3 155.1 31.5

10/1/14 2/15/13 9/7/12 8/3/09 5/5/09

Consumer Staples (9.0% vs. MSCI ACWI 9.7%) Anheuser-Busch InBev NC BUD British American Tobacco A BTI Diageo NC DEO PepsiCo I PEP

NC E NC O

3.0 2.0 2.0 2.0

111 114 118 96

NC 112 NC 103

NC 7.17 NC 4.37

NC 6.69 NC 4.60

NC 7.17 NC 4.90

NC 17 NC 21

NC 16 NC 20

2.3 2.7 3.5 2.7

175.9 106.5 72.7 144.8

9/17/09 7/9/08 8/18/05 2/27/04

Sector/Ticker/Company

MS MS Indus Stock View Rating

Energy (11.0% vs. MSCI ACWI 8.9%) Chevron CVX Noble Energy NBL National Oilwell Varco NOV Schlumberger SLB

I A I I

E O E O

3.0 3.0 2.0 3.0

120 58 73 99

140 82 81 135

11.00 2.89 5.24 4.79

10.09 2.58 6.00 5.63

8.62 2.54 6.69 6.04

12 22 12 18

14 23 11 16

3.6 1.2 2.5 1.6

219.1 19.6 29.8 121.2

4/19/13 8/13/13 10/27/14 2/27/04

Finance (24.0% vs. MSCI ACWI 21.6%) American Express AXP Bank of America BAC BBVA BBVA BlackRock BLK HDFC Bank HDB UBS UBS MetLife MET Sumitomo Mitsui Financial SMFG

A A I I A I I A

O O O O O O O O

3.0 4.0 3.0 3.0 2.0 3.0 2.0 4.0

90 17 11 341 52 17 54 8

110 21 14 400 54 23 60 10

4.86 0.91 0.52 16.59 1.64 1.28 5.61 1.32

5.55 0.49 0.53 19.62 1.98 1.43 5.75 0.99

6.00 1.67 0.88 21.26 2.56 1.66 5.85 0.87

16 35 21 17 26 12 9 8

15 10 13 16 21 10 9 10

1.2 1.2 3.6 2.3 0.7 1.6 2.6 3.1

94.5 181.0 64.1 57.4 42.3 65.9 60.9 57.3

9/11/14 11/19/13 5/22/14 2/24/12 12/19/13 5/30/13 3/24/11 7/19/13

Health Care (11.0% vs. MSCI ACWI 11.6%) Abbott Laboratories I ABT Actavis I ACT Thermo Fisher Scientific I TMO Pfizer I PFE

O O O E

3.0 3.0 3.0 2.0

44 243 118 30

48 266 146 32

2.03 9.50 5.42 2.22

1.97 13.27 6.92 2.25

2.26 16.71 7.97 2.16

22 18 17 13

19 15 15 14

2.0 0.0 0.5 3.5

65.6 64.8 47.3 192.0

2/13/14 3/13/13 10/1/14 3/31/14

Industrials (12.0% vs. MSCI ACWI 10.4%) ABB ABB Canadian Pacific Rail CP Raytheon RTN United Technologies UTX

O O O O

3.0 3.0 3.0 3.0

22 208 104 107

25 285 120 125

1.29 6.45 5.96 6.21

1.20 8.50 6.97 6.85

1.50 11.43 7.75 7.25

18 24 15 16

15 18 13 15

3.6 0.6 2.3 2.2

50.2 34.7 32.4 97.4

8/19/14 11/29/12 4/28/14 2/14/08

Information Technology (12.0% vs. MSCI ACWI 13.4%) Apple C O AAPL Google A E GOOGL SAP AG I O SAP Visa I O V

3.0 3.0 3.0 3.0

108 568 68 241

115 600 84 270

5.87 23.30 4.63 7.97

7.00 25.00 4.34 9.47

8.33 28.64 4.70 10.97

15 23 16 25

13 20 14 22

1.7 0.0 2.0 0.8

636.9 379.0 82.2 151.4

10/11/11 10/1/14 7/18/12 1/21/10

Materials (3.0% vs. MSCI ACWI 5.5%) Monsanto MON

O

3.0

115

150

4.67

5.21

6.24

22

18

1.7

54.9

9/18/13

O

2.0

33

38

2.16

2.30

2.23

14

15

7.7

86.7

10/20/10

I A A I

A

Telecom Services (2.0% vs. MSCI ACWI 3.9%) Vodafone A VOD Utilities (0.0% vs. MSCI ACWI 3.4%) Cash 3.0%

Source: Company data, Morgan Stanley & Co. LLC (Morgan Stanley), Morgan Stanley Wealth Management, Bloomberg Research Ratings Definitions: NC–Not Covered by Morgan Stanley Research Morgan Stanley Stock Ratings: OW–Overweight; EW–Equal-weight; UW–Underweight; NR–Not Rated; Morgan Stanley Industry View: A– Attractive; I–In-Line; C–Cautious. Morgan Stanley ratings for ADRs are based on Morgan Stanley ratings of the underlying stocks. Other: NA–Not Available/Not Applicable; NM–Not Meaningful; e–Estimate ++Rating for this company has been removed from consideration in this report because, under applicable law and/or Morgan Stanley & Co. policy, Morgan Stanley & Co. may be precluded from issuing such information with respect to this company at this time. For valuation methodology and risks associated with any Morgan Stanley & Co. price targets above, please email [email protected] with a request for valuation methodology and risks on a particular stock. Please refer to the Disclosure Section at the end of this report for more information about Morgan Stanley and Morgan Stanley Wealth Management’s rating systems.

Please refer to important information, disclosures and qualifications at the end of this material.

6

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Dividend Equity Number of stocks currently included: Average yield as of October 31, 2014: Portfolio turnover as of (2013):

20 3.1% 39%

Total Return Performance Through 10/31/2014 Period Rates of Returns

Dividend Equity

DVG Index

4.3% 6.7% 10.5% 15.7% 17.3% 15.4% 8.4% 112.4%

2.6% 5.3% 6.6% 11.3% 16.5% 14.9% 6.9% 85.9%

October Rolling Quarter Year-to-Date 1 Year 3 Years Annualized 5 Years Annualized Since 07/11/2005 (Ann.) Inception (Cumulative)

Source: Company data, Morgan Stanley Wealth Management Investment Resources Results shown represent total return (includes dividends) and exclude brokerage commissions. Had the results reflected brokerage commissions, the performance would have been lower. Past performance is no guarantee of future results. These figures are audited by Zacks Investment Research at year end, but are not intended to demonstrate actual returns from any individual portfolio.

October Top 3 & Bottom 3 Return Contributors 0.6 0.6 0.4

* Inception years represent the stub period return based on the individual portfolio’s inception date.

-0.2 -0.3 -0.4 AMGN

BMY

ADP

M

LLTC

SDRL

Source: Morgan Stanley Wealth Management, Investment Resources, Bloomberg as of October 31, 2014

Please refer to important information, disclosures and qualifications at the end of this material.

7

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Portfolio Holdings Dividend Equity Sector/Ticker/Company

MS MS Indus Stock View Rating

Rec'd Wt. (%)

10/31/14 MS Price Tgt.

ModelWare EPS 13a 14e 15e

14e P/E

15e P/E

Ind. Yld.

Mkt Cap ($ bns)

Incl. Date

Consumer Discretionary (10% vs. DVG Index 9.1%) Macy's I O M L Brands I O LB

5.0 5.0

58 72

66 76

4.00 3.05

4.44 3.28

5.05 3.80

13 22

11 19

2.2 1.9

19.9 21.7

9/11/14 1/15/13

Consumer Staples (5% vs. DVG Index 21.8%) Philip Morris Intl I PM

O

5.0

89

92

5.40

5.09

5.24

17

17

4.5

139.0

11/20/12

Energy (12.5% vs. DVG Index 8.4%) Chevron CVX Seadrill SDRL Williams Cos WMB

I I A

E O O

5.0 2.5 5.0

120 23 56

140 31 63

11.00 2.64 0.86

10.09 3.08 0.78

8.62 3.24 1.39

12 7 NM

14 7 NM

3.6 17.4 4.0

219.1 10.0 40.5

8/21/09 7/12/11 1/18/12

Finance (20.0% vs. DVG Index 7.1%) ACE Limited ACE BlackRock BLK J.P.Morgan Chase JPM Prudential Financial PRU

I I A I

O O O O

5.0 5.0 5.0 5.0

109 341 60 89

121 400 76 106

9.35 16.59 4.65 9.67

9.57 19.62 5.49 9.75

9.71 21.26 6.20 10.20

11 17 11 9

11 16 10 9

2.4 2.3 2.6 2.4

36.4 57.4 225.2 40.5

5/16/13 4/9/13 3/22/11 6/3/14

Health Care (10% vs. DVG Index 11.4%) Amgen AMGN Bristol Myers Squibb BMY

I I

O O

5.0 5.0

162 58

165 60

7.60 1.82

8.50 1.79

9.20 1.52

19 33

18 38

1.5 2.5

122.0 95.9

10/1/14 8/3/11

Industrials (12.5% vs. DVG Index 21.7%) Eaton Corp I ETN Raytheon A RTN United Technologies I UTX

O O O

5.0 5.0 2.5

68 104 107

83 120 125

4.13 5.96 6.21

4.58 6.97 6.85

5.01 7.75 7.25

15 15 16

14 13 15

2.9 2.3 2.2

32.2 32.4 97.4

10/2/13 4/9/14 8/17/12

5.0 5.0 5.0

108 82 43

115 77 46

5.87 3.02 1.77

7.00 3.01 2.04

8.33 3.11 2.22

15 27 21

13 26 19

1.7 2.3 2.5

636.9 40.1 10.6

5/22/12 2/12/14 7/29/14

Telecommunication Services (5.0% vs. DVG Index 0.1%) TELUS C E 5.0 TU

36

40

2.04

2.14

2.30

17

16

3.9

22.0

10/23/13

Utilities (5% vs. DVG Index 0.8%) NextEra Energy NEE

100

114

4.96

5.19

5.61

19

18

2.9

44.1

9/5/13

Information Technology (15% vs. DVG Index 11.2%) Apple C O AAPL I E Automatic Data Processing ADP O Linear Technology I LLTC Materials (0.0% vs. DVG Index 8.5%)

I

O

5.0

Cash 5.0%

Source: Company data, Morgan Stanley & Co. LLC (Morgan Stanley), Morgan Stanley Wealth Management, Bloomberg as of October 31, 2014 Research Ratings Definitions: NC–Not Covered by Morgan Stanley Research Morgan Stanley Stock Ratings: OW–Overweight; EW–Equal-weight; UW–Underweight; NR–Not Rated; Morgan Stanley Industry View: A– Attractive; I–In-Line; C–Cautious Other: NA–Not Available/Not Applicable; NM–Not Meaningful; e–Estimate ++Rating for this company has been removed from consideration in this report because, under applicable law and/or Morgan Stanley & Co. policy, Morgan Stanley & Co. may be precluded from issuing such information with respect to this company at this time. For valuation methodology and risks associated with any Morgan Stanley & Co. price targets above, please email [email protected] with a request for valuation methodology and risks on a particular stock. Please refer to the Disclosure Section at the end of this report for more information about Morgan Stanley and Morgan Stanley Wealth Management’s rating systems.

Please refer to important information, disclosures and qualifications at the end of this material.

8

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

US All Cap Growth Number of stocks currently included:

30

Average yield as of October 31, 2014:

1%

October Top 3 & Bottom 3 Return Contributors 0.4 0.3

Portfolio turnover as of (2013):

34% 0.1

Total Return Performance Through 10/31/2014 Period Rates of Returns

October

US All Cap Russell 1000 Growth Growth

3.2%

-0.2

4.1%

-0.3 -0.5 AMGN

V

LB

OKE

EBAY

APC

Source: Company data, Morgan Stanley Wealth Management Investment Resources as of October 31, 2014

Please refer to important information, disclosures and qualifications at the end of this material.

9

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Portfolio Holdings US All Cap Growth Sector/Ticker/Company

MS MS Indus Stock View Rating

Rec'd Wt. (%)

10/31/14 Price

MS Tgt.

ModelWare EPS 13a 14e 15e

14e P/E

15e P/E

Ind. Yld.

Mkt Cap ($ bns)

Incl. Date

Consumer Discretionary (22.0% vs. Russell 1000 Growth 17.9%) Amazon.com ++ O 4.0 AMZN Walt Disney A E 3.0 DIS Twenty-First Century Fox A O 2.0 FOXA Michael Kors I O 2.0 KORS L Brands I O 3.0 LB Nike I O 4.0 NKE Starbucks I O 4.0 SBUX

305 91 34 79 72 93 76

420 95 39 105 76 105 88

2.34 3.70 1.29 2.93 3.05 2.93 2.31

1.67 4.45 1.62 3.87 3.28 3.31 2.75

3.52 4.88 1.82 4.54 3.80 3.93 3.28

NM 21 21 20 22 28 28

NM 19 19 17 19 24 23

0.0 0.9 0.7 0.0 1.9 1.0 1.7

140.2 155.1 71.9 14.7 21.7 80.9 57.6

10/1/14 10/1/14 10/1/14 10/1/14 10/1/14 11/3/14 10/1/14

Consumer Staples (2.0% vs. Russell 1000 Growth 10.4%) Costco I O 2.0 COST

133

134

4.50

4.79

5.38

28

25

1.1

59.8

10/1/14

Energy (12.0% vs. Russell 1000 Growth 5.2%) EOG Resources A EOG ONEOK A OKE Schlumberger I SLB Anadarko Petroleum A APC

O O O O

2.0 2.0 4.0 4.0

95 59 99 92

136 74 135 129

4.11 1.72 4.79 4.02

5.42 1.67 5.63 5.45

4.71 1.99 6.04 3.47

18 NM 18 17

20 NM 16 26

0.7 4.0 1.6 1.2

49.5 11.8 121.2 45.1

10/1/14 10/1/14 10/1/14 10/1/14

Finance (8.0% vs. Russell 1000 Growth 5.2%) American Express A AXP Goldman Sachs A GS

O E

4.0 4.0

90 190

110 200

4.86 15.59

5.55 17.88

6.00 18.09

16 11

15 11

1.2 1.3

94.5 85.7

10/1/14 10/1/14

Health Care (17.0% vs. Russell 1000 Growth 14.1%) Agilent Technologies I E A Amgen I O AMGN Baxter I E BAX Gilead Sciences I E GILD Perrigo I E PRGO Quintiles I O Q

2.0 4.0 3.0 4.0 2.0 2.0

40 162 70 112 161 59

59 165 75 81 NA 62

2.93 7.60 4.69 2.05 6.16 2.10

3.10 8.50 4.87 8.31 6.36 2.65

3.36 9.20 4.71 9.57 7.99 2.91

13 19 14 13 25 22

12 18 15 12 20 20

1.3 1.5 3.0 0.0 0.3 0.0

13.4 122.0 37.1 165.9 21.4 7.5

10/1/14 10/1/14 10/1/14 10/1/14 10/1/14 10/1/14

Industrials (10.0% vs. Russell 1000 Growth 12.0%) Danaher I O DHR Genesee & Wyoming A O GWR Hubbell I O HUB/B

4.0 4.0 2.0

80 96 113

82 117 123

3.41 4.27 5.46

3.68 4.19 5.32

3.96 5.00 5.98

22 23 21

20 19 19

0.5 0.0 2.0

56.2 5.1 6.6

10/1/14 10/1/14 10/1/14

Information Technology (20.0% vs. Russell 1000 Growth 28.1%) Apple C O 6.0 AAPL A E 3.0 GOOGL Google Linear Technology I O 2.0 LLTC Vantiv I O 5.0 VNTV Visa I O 4.0 V

108 568 43 31 241

115 600 46 38 270

5.87 23.30 1.77 1.56 7.97

7.00 25.00 2.04 1.87 9.47

8.33 28.64 2.22 2.16 10.97

15 23 21 16 25

13 20 19 14 22

1.7 0.0 2.5 0.0 0.8

636.9 379.0 10.6 4.5 151.4

10/1/14 10/1/14 10/1/14 10/1/14 10/1/14

Materials (2.0% vs.Russell 1000 Growth 4.0%) Monsanto A MON

115

150

4.67

5.21

6.24

22

18

1.7

54.9

10/1/14

Telecommunication Services (4.0% vs. Russell 1000 Growth 2.3%) SBA Communications C O 4.0 112 SBAC

113

(0.44)

(4.93)

(0.52)

NM

NM

0.0

14.3

10/1/14

O

2.0

Utilities (0.0% vs. Russell 1000 Growth 0.1%) Cash 3.0%

Source: Company data, Morgan Stanley & Co. LLC (Morgan Stanley), Morgan Stanley Wealth Management Investment Resources, Bloomberg as of October 31, 2014 Morgan Stanley Research Ratings Definitions: NC–Not Covered by Morgan Stanley Research Stock Ratings: OW–Overweight; EW–Equal-weight; UW–Underweight; NR–Not Rated; Morgan Stanley Industry View: A–Attractive; I–In-Line; C– Cautious Other: NA–Not Available/Not Applicable; NM–Not Meaningful; e–Estimate ++Rating for this company has been removed from consideration in this report because, under applicable law and/or Morgan Stanley & Co. policy, Morgan Stanley & Co. may be precluded from issuing such information with respect to this company at this time. For valuation methodology and risks associated with any Morgan Stanley & Co. price targets above, please email [email protected] with a request for valuation methodology and risks on a particular stock. Please visit https://www.morganstanley.com/online/researchdisclosures for more information about Morgan Stanley’s stock rating system. Please refer to important information, disclosures and qualifications at the end of this material.

10

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

US Long Run Deep Value Number of stocks currently included: Average yield as of October 31, 2014:

20 2.4%

Portfolio turnover as of (2013):

38%

October Top 3 & Bottom 3 Return Contributors 0.5 0.4

0.3

Total Return Performance Through 10/31/2014 Period Rates of Returns

October

US Long Run

Russell 1000

Deep Value

Value

4.2%

3.5%

-0.1

-0.3 -0.4 UNH

ED

MPC

JPM

TYC

LYB

Source: Company data, Morgan Stanley Wealth Management Investment Resources, as of October 31, 2014

Other companies mentioned in this report: Colgate-Palmolive (CL; $68.05; MS & Co.: Overweight/In-Line) Consolidated Edison (ED; $63.38; MS & Co.: Underweight/In-Line) eBay (EBAY; $53.27; MS & Co.: Underweight/No Rating) Prices as of market close on November 4, 2014.

Morgan Stanley is acting as financial advisor to Bristol Myers Squibb Company ("Bristol Myers") in connection with the transfer of $1.4 Billion of U.S. pension obligations to The Prudential Insurance Company of America, a Prudential Financial Inc. company, as announced September 30, 2014. The transaction is subject to customary closing conditions. Bristol Myers has agreed to pay fees to Morgan Stanley for its financial services. Please refer to the notes at the end of the report. Morgan Stanley is acting as financial advisor to Abbott Laboratories in relation to the proposed sale of its non-US developed markets branded generic drug business to Mylan, Inc. ("Mylan") as announced on 14th July 2014. The proposed transaction is subject to approval by Mylan shareholders, certain closing conditions, including regulatory clearances, and other customary closing conditions. This report and the information provided herein is not intended to (i) provide voting advice, (ii) serve as an endorsement of the proposed transaction, or (iii) result in the procurement, withholding or revocation of a proxy or any other action by a security holder. Abbott Laboratories has agreed to pay fees to Morgan Stanley for its financial services. Please refer to the notes at the end of the report.

Please refer to important information, disclosures and qualifications at the end of this material.

11

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Portfolio Holdings US Long Run Deep Value Sector/Ticker/Company

MS MS Rec'd Industry Stock Wt. 10/31/14 View Rating (%) Price

MS Tgt.

ModelWare EPS 13a 14e 15e

14e P/E

15e Ind. P/E Yld.

Mkt Cap ($ bns)

Incl. Date

Consumer Discretionary (10% vs. Russell 1000 Value 6.2%) CBS A O 5.0 CBS Macy's I O 5.0 M

54 58

63 66

3.02 4.00

3.15 4.44

3.53 5.05

17 13

15 11

1.1 2.2

27.4 19.9

10/1/14 10/1/14

Consumer Staples (4% vs. Russell 1000 Value 7.2%) Kraft I O KRFT

4.0

56

60

2.85

3.15

3.40

18

17

3.9

33.6

10/1/14

Energy (12.5% vs. Russell 1000 Value 12.2%) Chevron I CVX Marathon Petroleum I MPC Occidental Petroleum A OXY

E O O

5.0 5.0 2.5

120 91 89

140 100 115

11.00 6.71 6.96

10.09 7.57 6.37

8.62 8.03 5.36

12 12 14

14 11 17

3.6 2.2 3.2

219.1 25.4 66.2

10/1/14 10/1/14 11/3/14

Finance (25.5% vs. Russell 1000 Value 29.3%) J.P.Morgan Chase A JPM BB&T A BBT BlackRock I BLK Prudential Financial I PRU Wells Fargo A WFC

O E O O E

7.5 4.0 5.0 5.0 4.0

60 38 341 89 53

76 44 400 106 58

4.65 2.92 16.59 9.67 3.89

5.49 2.88 19.62 9.75 4.05

6.20 3.13 21.26 10.20 4.10

11 13 17 9 13

10 12 16 9 13

2.6 2.6 2.3 2.4 2.7

225.2 27.3 57.4 40.5 277.8

10/1/14 10/1/14 10/1/14 10/1/14 10/1/14

Health Care (14.5% vs. Russell 1000 Value 13.6%) Actavis I O ACT Pfizer I E PFE UnitedHealth I O UNH

3.0 5.0 6.5

243 30 95

266 32 84

9.50 2.22 5.50

13.27 2.25 5.65

16.71 2.16 6.12

18 13 17

15 14 16

0.0 3.5 1.6

64.8 192.0 92.3

10/1/14 10/1/14 10/1/14

Industrials (20% vs. Russell 1000 Value 10.2%) Eaton Corp I ETN Honeywell I HON Tyco International I TYC Union Pacific A UNP

5.0 5.0 5.0 5.0

68 96 43 116

83 108 47 129

4.13 4.97 1.70 4.71

4.58 5.55 1.69 5.60

5.01 6.11 2.50 6.65

15 17 25 21

14 16 17 18

2.9 2.2 1.7 1.7

32.2 74.6 19.1 102.5

10/1/14 10/1/14 10/1/14 10/1/14

Information Technology (9% vs. Russell 1000 Value 8.7%) Hewlett-Packard C O 5.0 HPQ Oracle I E 4.0 ORCL

36 39

40 45

3.66 2.79

3.73 2.90

4.06 3.18

10 13

9 12

1.8 1.2

67.0 173.4

10/1/14 10/1/14

Materials (2.5% vs. Russell 1000 Value 3.2%) LyondellBasell Industries A LYB

92

120

6.79

8.29

8.00

11

11

3.1

42.1

10/1/14

O O O O

O

2.5

Telecommunication Services (0.0% vs. Russell 1000 Value 2.2%) Utilities (0% vs. Russell 1000 Value 6.4%) Cash 2.0%

Source: Company data, Morgan Stanley & Co. LLC (Morgan Stanley), Morgan Stanley Wealth Management Investment Resources, Bloomberg as of October 31, 2014 Morgan Stanley Research Ratings Definitions: NC–Not Covered by Morgan Stanley Research Stock Ratings: OW–Overweight; EW–Equal-weight; UW–Underweight; NR–Not Rated; Morgan Stanley Industry View: A–Attractive; I–In-Line; C– Cautious Other: NA–Not Available/Not Applicable; NM–Not Meaningful; e–Estimate ++Rating for this company has been removed from consideration in this report because, under applicable law and/or Morgan Stanley & Co. policy, Morgan Stanley & Co. may be precluded from issuing such information with respect to this company at this time. For valuation methodology and risks associated with any Morgan Stanley & Co. price targets above, please email [email protected] with a request for valuation methodology and risks on a particular stock. Please visit https://www.morganstanley.com/online/researchdisclosures for more information about Morgan Stanley’s stock rating system.

Please refer to important information, disclosures and qualifications at the end of this material.

12

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Equity Model Portfolio Performance Calculation Methodology Equity Model Portfolio performance data is compiled with two major goals in mind: 1) to be in accordance with CFA Institute Global Investment Performance Standards (GIPS) and 2) to mirror, to the extent possible, the performance that individual investors are likely to experience if they follow our change recommendations. We believe our calculations are as conservative as possible. Changes are announced prior to the market open; however, performance is based on the closing price of the security on the day that the change is announced.

For example: if company XYZ announces an earnings shortfall after the market closes on a Monday and we suggest removing the stock on Tuesday morning (never the preferred outcome, of course), we absorb the likely decline in value of the stock during Tuesday’s trading by taking Tuesday’s 4 p.m. market closing price in New York (or the relevant local exchange closing time in the case of foreign stocks).

Dividend Treatment The performance of each of the Equity Model Portfolio is based on total return, which includes dividends. All benchmark data is also calculated on a total return basis. The performance calculation assumes that dividends paid on securities in a portfolio are incorporated into each individual security on the ex-dividend date.

For Example: Stock XYZ has appreciated from $10 to $11 in value (a 10% return) and pays a $0.10 dividend over the year (a 1% dividend yield). At the end of the year the total return on this position is 11% (10% price appreciation + 1% dividend)

Rebalancing Method When a change is made to an Equity Model Portfolio, there is an automatic rebalancing of all the other equity portfolio positions back to the recommended weight in the model. This is in accordance with CFA Institute recommendation for Model Portfolios. “On-Change” rebalancing removes any equity “drift” that might have happened between the last change in the portfolio and the current one.

For Example: Let’s assume that 5% weighted ABC and 5% weighted XYZ are added on the same day to a portfolio. ABC subsequently does very well relative to its benchmark, while XYZ performs very poorly. Until another change is made in the portfolio, stock ABC’s effective weight will surpass 5% while stock XYZ’s effective weight will drift below 5%. Assume a change is then made to a stock other than ABC or XYZ. Upon that day’s close of trading, ABC and XYZ will automatically revert to their former 5% weightings.

Cash Position The Equity Model Portfolios will often maintain modest cash positions (Typically between 0% and 7.5% across the portfolios). Cash returns incorporate an assumed investment in 90-day U.S. Treasury bills as of the last business day of the month prior to the performance calculation date as published by the Federal Reserve.

Other Corporate Actions Occasional stock spin-offs are credited post the spin date as shares of the original position that was recommended. The spun off entity is liquidated and proceeds are reinvested into the original entity as well as any cash in lieu of shares proceeds.

Please refer to important information, disclosures and qualifications at the end of this material.

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EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

Disclosure Section The results shown include dividends and exclude brokerage commissions. Had the results reflected brokerage commissions, the performance would have been lower. These returns were calculated based on the assumption that every recommendation made by the Equity Model Portfolio Solutions team was executed on the date the recommendation was made and at that trading day's closing price. Moreover, the methodology assumes that, every time a change to the portfolio was made, the portfolio was rebalanced to continue to be weighted in the proportions recommended by the team. Since clients are required to make independent decisions as to whether to follow the team’s recommendations and/or to rebalance their portfolios, the performance of client holdings may be better or worse than those reported for the portfolio. Past performance is no guarantee of future results. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this portfolio. This report does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The securities in Equity Model Portfolios are selected and monitored on an ongoing basis by members of the Equity Model Portfolio Solutions team and may be purchased in a single transaction as individual stocks. Periodically, changes to the portfolios are recommended; clients then decide whether the recommendation makes sense for their particular financial situation. After a client purchases a portfolio, the same stocks will remain in his or her account unless individual stocks are bought or sold in response to subsequent changes in the portfolio or as otherwise individually determined by the client. Such transactions will incur applicable commission charges. Clients should seek advice from their financial advisor as to the suitability of investing in any of the securities or investment strategies discussed in this report. Financial Advisors and Private Wealth Advisors may use Equity Model Portfolios as a resource in formulating investment advice for their advisory clients, provided that they consider all other relevant factors and sources of information in tailoring their advice to a particular client, taking into consideration the client's investment objectives, risk tolerance and investment horizons. The information and opinions in Morgan Stanley Wealth Management Research were prepared by Morgan Stanley Smith Barney LLC under its trade name Morgan Stanley Wealth Management. For important disclosures (including copies of historical disclosures) regarding the securities and/or companies that are the subject of this Morgan Stanley Wealth Management Research product, please contact Morgan Stanley Wealth Management Research, 522 Fifth Ave., New York, N.Y. 10036, Attention: Research Management. In addition, the same important disclosures, with the exception of the historical disclosures, are contained on the Firm's disclosure website at https://www.morganstanley.com/online/researchdisclosures. Historical disclosures will be provided upon request back to June 1, 2009.

Morgan Stanley Wealth Management Analyst Certification The Morgan Stanley Wealth Management research analysts principally responsible for the preparation and content of all or any identified portion of this research report, hereby certify that their views about the securities and/or companies discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report. Unless otherwise stated, the individuals listed on the cover page of this report are Morgan Stanley Wealth Management research analysts.

Global Research Conflict Management Policy Morgan Stanley Wealth Management has a Conflict Management policy available at: https://www.morganstanley.com/online/researchconflictpolicies

Important US Regulatory Disclosures on Subject Issuers The following analyst or strategist (or a household member) owns securities (or related derivatives), ETFs, or Closed-End funds that he or she covers or recommends in Morgan Stanley Wealth Management Research: Katy Zhao - APPLE INC., MICHAEL KORS HOLDINGS LIMITED, QUALCOMM INCORPORATED; Sachin Manchanda - ORACLE CORPORATION. Morgan Stanley Wealth Management or an affiliate beneficially owned 1% or more of a class of common equity securities of: ABBOTT LABORATORIES, ACE LIMITED, ACTAVIS PLC, AMAZON.COM, INC., ANADARKO PETROLEUM CORPORATION, APPLE INC., AUTOMATIC DATA PROCESSING, INC., BAXTER INTERNATIONAL INC., BLACKROCK, INC., BRISTOL-MYERS SQUIBB COMPANY, BRITISH AMERICAN TOBACCO P.L.C., CBS CORPORATION, Crown Castle Corp., DANAHER CORPORATION, DIAGEO PLC, EATON CORPORATION, GRUPO TELEVISA SAB, HDFC BANK LIMITED, HONEYWELL INTERNATIONAL INC., KINDER MORGAN, INC., KRAFT FOODS GROUP, INC., L BRANDS, INC., LINEAR TECHNOLOGY CORPORATION, MACY'S, INC., MARATHON PETROLEUM CORPORATION, MASTERCARD INC., MICHAEL KORS HOLDINGS LIMITED, MONSANTO COMPANY, NEXTERA ENERGY, INC., NIKE, INC., ONEOK INC., PEPSICO INC., PHILIP MORRIS INTERNATIONAL INC., Prologis, Inc., PRUDENTIAL FINANCIAL INC., RAYTHEON COMPANY, SAP SE, SEADRILL LIMITED, STARBUCKS CORPORATION, STARWOOD HOTELS & RESORTS WORLDWIDE, INC., SUMITOMO MITSUI FINANCIAL GROUP, INC., THE

Please refer to important information, disclosures and qualifications at the end of this material.

14

RESEARCH

EQUITY MODEL PORTFOLIO SOLUTIONS MONTHLY

NOVEMBER 6, 2014

ESTEE LAUDER COMPANIES INC., THE WILLIAMS COMPANIES, INC., THERMO FISHER SCIENTIFIC INC., TIME WARNER INC., TWENTYFIRST CENTURY FOX, INC., UNITED TECHNOLOGIES CORPORATION, VISA INC., VODAFONE GROUP PLC, YUM! BRANDS, INC.. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate received compensation for investment banking services from the following issuers (if the security is an ETF or Closed-End Fund, the compensation is from the fund's investment manager or advisor): ACE LIMITED, AMGEN INC., ANADARKO PETROLEUM CORPORATION, AUTOMATIC DATA PROCESSING, INC., BANCO BILBAO VIZCAYA ARGENTARIA SOCIEDAD ANONIMA, BANK OF AMERICA CORPORATION, BB&T CORPORATION, BLACKROCK, INC., BRISTOL-MYERS SQUIBB COMPANY, CBS CORPORATION, COLGATE-PALMOLIVE COMPANY, CONSOLIDATED EDISON, INC., Crown Castle Corp., DANAHER CORPORATION, DIAGEO PLC, EBAY INC., GENESEE & WYOMING INC., GILEAD SCIENCES INC., GOOGLE, INC., HEWLETT-PACKARD COMPANY, HONDA MOTOR CO., LTD., HONEYWELL INTERNATIONAL INC., JPMORGAN CHASE & CO., KINDER MORGAN, INC., LYONDELLBASELL INDUSTRIES NV, MARATHON PETROLEUM CORPORATION, MASTERCARD INC., METLIFE, INC., MONSANTO COMPANY, NEXTERA ENERGY, INC., NOBLE ENERGY, INC., ONEOK INC., ORACLE CORPORATION, PEPSICO INC., PERRIGO COMPANY PUBLIC LIMITED COMPANY, Prologis, Inc., PRUDENTIAL FINANCIAL INC., QUINTILES TRANSNATIONAL HOLDINGS, INC., SAP SE, SCHLUMBERGER NV, SEADRILL LIMITED, STARBUCKS CORPORATION, THE GOLDMAN SACHS GROUP INC., THE HOME DEPOT, INC., THE WALT DISNEY COMPANY, THE WILLIAMS COMPANIES, INC., THERMO FISHER SCIENTIFIC INC., TIME WARNER INC., TWENTY-FIRST CENTURY FOX, INC., TYCO INTERNATIONAL LTD., UBS AG, UNION PACIFIC CORPORATION, VANTIV INC., VODAFONE GROUP PLC, WELLS FARGO & COMPANY, YUM! BRANDS, INC.. In the next 3 months, Morgan Stanley Wealth Management or an affiliate will seek compensation for investment banking services from the following issuers (if the security is an ETF or Closed-End Fund, the compensation is from the fund's investment manager or advisor): ABB LTD., ABBOTT LABORATORIES, ACE LIMITED, ACTAVIS PLC, AGILENT TECHNOLOGIES INC., AMAZON.COM, INC., AMERICAN EXPRESS COMPANY, AMGEN INC., ANADARKO PETROLEUM CORPORATION, ANHEUSER BUSCH INBEV SA/NV, APPLE INC., AUTOMATIC DATA PROCESSING, INC., BANCO BILBAO VIZCAYA ARGENTARIA SOCIEDAD ANONIMA, BANK OF AMERICA CORPORATION, BAXTER INTERNATIONAL INC., BB&T CORPORATION, BLACKROCK, INC., BRISTOL-MYERS SQUIBB COMPANY, BRITISH AMERICAN TOBACCO P.L.C., CANADIAN PACIFIC RAILWAY LIMITED, CBS CORPORATION, CHEVRON CORPORATION, COLGATE-PALMOLIVE COMPANY, CONSOLIDATED EDISON, INC., COSTCO WHOLESALE CORPORATION, Crown Castle Corp., DANAHER CORPORATION, DIAGEO PLC, EATON CORPORATION, EBAY INC., EOG RESOURCES INC., GENESEE & WYOMING INC., GILEAD SCIENCES INC., GOOGLE, INC., GRUPO TELEVISA SAB, HDFC BANK LIMITED, HEWLETT-PACKARD COMPANY, HONDA MOTOR CO., LTD., HONEYWELL INTERNATIONAL INC., HUBBELL INCORPORATED, JPMORGAN CHASE & CO., KINDER MORGAN, INC., KRAFT FOODS GROUP, INC., L BRANDS, INC., LINEAR TECHNOLOGY CORPORATION, LYONDELLBASELL INDUSTRIES NV, MACY'S, INC., MARATHON PETROLEUM CORPORATION, MASTERCARD INC., MCKESSON CORPORATION, METLIFE, INC., MICHAEL KORS HOLDINGS LIMITED, MONSANTO COMPANY, NATIONAL OILWELL VARCO, INC., NEXTERA ENERGY, INC., NIKE, INC., NOBLE ENERGY, INC., OCCIDENTAL PETROLEUM CORPORATION, ONEOK INC., ORACLE CORPORATION, PEPSICO INC., PERRIGO COMPANY PUBLIC LIMITED COMPANY, PFIZER INC., Prologis, Inc., PRUDENTIAL FINANCIAL INC., QUALCOMM INCORPORATED, QUINTILES TRANSNATIONAL HOLDINGS, INC., RAYTHEON COMPANY, SAP SE, SBA COMMUNICATIONS CORPORATION, SCHLUMBERGER NV, SEADRILL LIMITED, STARBUCKS CORPORATION, STARWOOD HOTELS & RESORTS WORLDWIDE, INC., SUMITOMO MITSUI FINANCIAL GROUP, INC., TELUS CORPORATION, THE ESTEE LAUDER COMPANIES INC., THE GOLDMAN SACHS GROUP INC., THE HOME DEPOT, INC., THE WALT DISNEY COMPANY, THE WILLIAMS COMPANIES, INC., THERMO FISHER SCIENTIFIC INC., TIME WARNER INC., TWENTY-FIRST CENTURY FOX, INC., TYCO INTERNATIONAL LTD., UBS AG, UNION PACIFIC CORPORATION, UNITED TECHNOLOGIES CORPORATION, UNITEDHEALTH GROUP INCORPORATED, VANTIV INC., VISA INC., VODAFONE GROUP PLC, WELLS FARGO & COMPANY, YUM! BRANDS, INC.. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate managed or co-managed a public offering (or 144a offering) for: ACE LIMITED, AMGEN INC., ANADARKO PETROLEUM CORPORATION, BANCO BILBAO VIZCAYA ARGENTARIA SOCIEDAD ANONIMA, BANK OF AMERICA CORPORATION, BB&T CORPORATION, BLACKROCK, INC., CBS CORPORATION, COLGATE-PALMOLIVE COMPANY, CONSOLIDATED EDISON, INC., Crown Castle Corp., DIAGEO PLC, EBAY INC., GILEAD SCIENCES INC., GOOGLE, INC., HEWLETT-PACKARD COMPANY, HONDA MOTOR CO., LTD., HONEYWELL INTERNATIONAL INC., JPMORGAN CHASE & CO., KINDER MORGAN, INC., LYONDELLBASELL INDUSTRIES NV, MARATHON PETROLEUM CORPORATION, MASTERCARD INC., METLIFE, INC., MONSANTO COMPANY, NEXTERA ENERGY, INC., NOBLE ENERGY, INC., ORACLE CORPORATION, PEPSICO INC., Prologis, Inc., PRUDENTIAL FINANCIAL INC., QUINTILES TRANSNATIONAL HOLDINGS, INC., SCHLUMBERGER NV, SEADRILL LIMITED, STARBUCKS CORPORATION, SUMITOMO MITSUI FINANCIAL GROUP, INC., THE GOLDMAN SACHS GROUP INC., THE HOME DEPOT, INC., THE WALT DISNEY COMPANY, THE WILLIAMS COMPANIES, INC., THERMO FISHER SCIENTIFIC INC., TIME WARNER INC., TWENTY-FIRST CENTURY FOX, INC., UBS AG, UNION PACIFIC CORPORATION, WELLS FARGO & COMPANY. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate has provided or is providing investment banking services to, or has an investment banking client relationship with, the following issuers (if the security is an ETF or Closed-End Fund, the services were or are being provided to, or the relationship is with, the fund's investment manager or advisor): ABB LTD., ABBOTT LABORATORIES, ACE LIMITED, ACTAVIS PLC, AGILENT TECHNOLOGIES INC., AMAZON.COM, INC., AMERICAN EXPRESS COMPANY, AMGEN INC., ANADARKO PETROLEUM CORPORATION, ANHEUSER BUSCH INBEV SA/NV, APPLE INC., AUTOMATIC DATA PROCESSING, INC., BANCO BILBAO VIZCAYA ARGENTARIA SOCIEDAD ANONIMA, BANK OF AMERICA CORPORATION, BAXTER INTERNATIONAL INC., BB&T CORPORATION, BLACKROCK, INC., BRISTOL-MYERS SQUIBB COMPANY, BRITISH AMERICAN TOBACCO P.L.C., CANADIAN PACIFIC RAILWAY LIMITED, CBS CORPORATION, CHEVRON CORPORATION, COLGATE-PALMOLIVE COMPANY, CONSOLIDATED EDISON, INC., COSTCO WHOLESALE CORPORATION, Crown Castle Corp., DANAHER CORPORATION, DIAGEO PLC, EATON CORPORATION, EBAY INC., EOG RESOURCES INC., GENESEE & WYOMING INC., GILEAD SCIENCES INC., GOOGLE, INC., GRUPO TELEVISA SAB, HDFC BANK LIMITED, HEWLETT-PACKARD COMPANY, HONDA MOTOR CO., LTD., HONEYWELL INTERNATIONAL INC., HUBBELL INCORPORATED, JPMORGAN CHASE & CO., KINDER MORGAN, INC., KRAFT FOODS GROUP, INC., L BRANDS, INC., LINEAR TECHNOLOGY CORPORATION, LYONDELLBASELL INDUSTRIES NV, MACY'S, INC., MARATHON PETROLEUM CORPORATION, MASTERCARD INC., MCKESSON Please refer to important information, disclosures and qualifications at the end of this material.

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CORPORATION, METLIFE, INC., MICHAEL KORS HOLDINGS LIMITED, MONSANTO COMPANY, NATIONAL OILWELL VARCO, INC., NEXTERA ENERGY, INC., NIKE, INC., NOBLE ENERGY, INC., OCCIDENTAL PETROLEUM CORPORATION, ONEOK INC., ORACLE CORPORATION, PEPSICO INC., PERRIGO COMPANY PUBLIC LIMITED COMPANY, PFIZER INC., Prologis, Inc., PRUDENTIAL FINANCIAL INC., QUALCOMM INCORPORATED, QUINTILES TRANSNATIONAL HOLDINGS, INC., RAYTHEON COMPANY, SAP SE, SBA COMMUNICATIONS CORPORATION, SCHLUMBERGER NV, SEADRILL LIMITED, STARBUCKS CORPORATION, STARWOOD HOTELS & RESORTS WORLDWIDE, INC., SUMITOMO MITSUI FINANCIAL GROUP, INC., TELUS CORPORATION, THE ESTEE LAUDER COMPANIES INC., THE GOLDMAN SACHS GROUP INC., THE HOME DEPOT, INC., THE WALT DISNEY COMPANY, THE WILLIAMS COMPANIES, INC., THERMO FISHER SCIENTIFIC INC., TIME WARNER INC., TWENTY-FIRST CENTURY FOX, INC., TYCO INTERNATIONAL LTD., UBS AG, UNION PACIFIC CORPORATION, UNITED TECHNOLOGIES CORPORATION, UNITEDHEALTH GROUP INCORPORATED, VANTIV INC., VISA INC., VODAFONE GROUP PLC, WELLS FARGO & COMPANY, YUM! BRANDS, INC.. Within the last 12 months, Morgan Stanley Wealth Management has received compensation for products or services other than investment banking services from the following issuers (if the security is an ETF or Closed-End Fund, the compensation is from the fund's investment manager or advisor): BLACKROCK, INC., JPMORGAN CHASE & CO., METLIFE, INC., PRUDENTIAL FINANCIAL INC., THE GOLDMAN SACHS GROUP INC., UBS AG, WELLS FARGO & COMPANY. Within the last 12 months, Morgan Stanley Wealth Management has either provided or is providing non-investment banking, securities-related services to and/or in the past has entered into an agreement to provide services or has a client relationship with the following issuers (if the security is an ETF or Closed-End Fund, the services were or are being provided to, or the agreement is with, the fund's investment manager or advisor): ABB LTD., AGILENT TECHNOLOGIES INC., AMAZON.COM, INC., AMERICAN EXPRESS COMPANY, APPLE INC., AUTOMATIC DATA PROCESSING, INC., BANCO BILBAO VIZCAYA ARGENTARIA SOCIEDAD ANONIMA, BANK OF AMERICA CORPORATION, BB&T CORPORATION, BLACKROCK, INC., BRISTOL-MYERS SQUIBB COMPANY, CBS CORPORATION, CHEVRON CORPORATION, CONSOLIDATED EDISON, INC., COSTCO WHOLESALE CORPORATION, DANAHER CORPORATION, DIAGEO PLC, GILEAD SCIENCES INC., GOOGLE, INC., HEWLETT-PACKARD COMPANY, HONEYWELL INTERNATIONAL INC., JPMORGAN CHASE & CO., KINDER MORGAN, INC., KRAFT FOODS GROUP, INC., L BRANDS, INC., LINEAR TECHNOLOGY CORPORATION, LYONDELLBASELL INDUSTRIES NV, MARATHON PETROLEUM CORPORATION, MASTERCARD INC., MCKESSON CORPORATION, METLIFE, INC., MICHAEL KORS HOLDINGS LIMITED, MONSANTO COMPANY, OCCIDENTAL PETROLEUM CORPORATION, ORACLE CORPORATION, PFIZER INC., PRUDENTIAL FINANCIAL INC., QUALCOMM INCORPORATED, RAYTHEON COMPANY, SBA COMMUNICATIONS CORPORATION, THE GOLDMAN SACHS GROUP INC., THE HOME DEPOT, INC., THE WALT DISNEY COMPANY, THE WILLIAMS COMPANIES, INC., TIME WARNER INC., TWENTY-FIRST CENTURY FOX, INC., TYCO INTERNATIONAL LTD., UBS AG, UNITEDHEALTH GROUP INCORPORATED, WELLS FARGO & COMPANY, YUM! BRANDS, INC.. An affiliate of Morgan Stanley Wealth Management serves as corporate broker to: DIAGEO PLC. An affiliate of Morgan Stanley Wealth Management has a significant financial interest in relation to the following issuers (if the security is an ETF or Closed-End Fund, the significant financial is in relation to the fund's investment manager or advisor): ABBOTT LABORATORIES, ACE LIMITED, AGILENT TECHNOLOGIES INC., AMAZON.COM, INC., AMERICAN EXPRESS COMPANY, AMGEN INC., ANADARKO PETROLEUM CORPORATION, ANHEUSER BUSCH INBEV SA/NV, APPLE INC., AUTOMATIC DATA PROCESSING, INC., BANCO BILBAO VIZCAYA ARGENTARIA SOCIEDAD ANONIMA, BANK OF AMERICA CORPORATION, BAXTER INTERNATIONAL INC., BB&T CORPORATION, BLACKROCK, INC., BRISTOL-MYERS SQUIBB COMPANY, BRITISH AMERICAN TOBACCO P.L.C., CANADIAN PACIFIC RAILWAY LIMITED, CBS CORPORATION, CHEVRON CORPORATION, COLGATE-PALMOLIVE COMPANY, CONSOLIDATED EDISON, INC., COSTCO WHOLESALE CORPORATION, Crown Castle Corp., DANAHER CORPORATION, DIAGEO PLC, EATON CORPORATION, EBAY INC., EOG RESOURCES INC., GENESEE & WYOMING INC., GILEAD SCIENCES INC., GOOGLE, INC., GRUPO TELEVISA SAB, HDFC BANK LIMITED, HEWLETT-PACKARD COMPANY, HONEYWELL INTERNATIONAL INC., HUBBELL INCORPORATED, JPMORGAN CHASE & CO., KINDER MORGAN, INC., KRAFT FOODS GROUP, INC., L BRANDS, INC., LYONDELLBASELL INDUSTRIES NV, MACY'S, INC., MARATHON PETROLEUM CORPORATION, MASTERCARD INC., MCKESSON CORPORATION, METLIFE, INC., MONSANTO COMPANY, NATIONAL OILWELL VARCO, INC., NEXTERA ENERGY, INC., NIKE, INC., NOBLE ENERGY, INC., OCCIDENTAL PETROLEUM CORPORATION, ONEOK INC., ORACLE CORPORATION, PEPSICO INC., PERRIGO COMPANY PUBLIC LIMITED COMPANY, PFIZER INC., PHILIP MORRIS INTERNATIONAL INC., PRUDENTIAL FINANCIAL INC., RAYTHEON COMPANY, SAP SE, SCHLUMBERGER NV, STARBUCKS CORPORATION, STARWOOD HOTELS & RESORTS WORLDWIDE, INC., SUMITOMO MITSUI FINANCIAL GROUP, INC., TELUS CORPORATION, THE GOLDMAN SACHS GROUP INC., THE HOME DEPOT, INC., THE WALT DISNEY COMPANY, THE WILLIAMS COMPANIES, INC., THERMO FISHER SCIENTIFIC INC., TIME WARNER INC., TYCO INTERNATIONAL LTD., UBS AG, UNION PACIFIC CORPORATION, UNITED TECHNOLOGIES CORPORATION, UNITEDHEALTH GROUP INCORPORATED, VODAFONE GROUP PLC, WELLS FARGO & COMPANY, YUM! BRANDS, INC.. For an explanation of the determination of significant financial interest, please refer to the applicable policies for managing conflicts of interest, which can be found at https://www.morganstanley.com/online/researchconflictpolicies. The research analysts or strategists principally responsible for the preparation of Morgan Stanley Wealth Management Research have received compensation based upon various factors, including quality of research, investor client feedback, competitive factors, and firm profitability or revenues (which include fixed income trading and capital markets profitability or revenues). Research analysts' or strategists' compensation is not linked to the profitability or revenues of particular capital markets transactions performed by Morgan Stanley Wealth Management or the profitability or revenues of particular fixed income trading desks. Morgan Stanley Wealth Management and its affiliates do business that relates to companies/instruments covered in Morgan Stanley Wealth Management Research. Morgan Stanley Wealth Management and/or its affiliates sells to and buys from customers the securities/instruments of issuers covered in this Morgan Stanley Wealth Management Research report on a principal basis. Certain disclosures listed above are also for compliance with applicable regulations in non-US jurisdictions. Please refer to important information, disclosures and qualifications at the end of this material.

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Closed-End Fund Rating System Morgan Stanley Wealth Management only rates Closed-End Funds ("CEF"). For CEFs, Morgan Stanley Wealth Management uses a relative rating system using the terms Overweight, Equal-weight, Underweight, and Not Covered (see definitions below). Morgan Stanley Wealth Management does not assign ratings of Buy, Hold or Sell to the CEFs we cover. Overweight, Equal-weight, and Underweight are not the equivalent of buy, hold and sell. Investors should carefully read the definitions of all ratings used in Morgan Stanley Wealth Management Research. In addition, since Morgan Stanley Wealth Management Research contains more complete information concerning the analyst's view, investors should carefully read Morgan Stanley Wealth Management Research, in its entirety, and not infer the contents from the ratings alone. In any case, ratings (or research) should not be used or relied upon as investment advice. An investor's decision to buy or sell a security or fund should depend on individual circumstances (such as the investor's existing holdings) and other considerations.

Closed-End Fund Ratings Definitions Overweight (O): The closed-end fund's total return is expected to exceed the average total return of the analyst's industry coverage universe, on a risk-adjusted basis, over the next 12-18 months. Equal-weight (E): The closed-end fund's total return is expected to be in line with the average total return of the analyst's industry coverage universe, on a risk-adjusted basis, over the next 12-18 months. Underweight (U): The closed end fund's total return is expected to be below the average total return of the analyst's industry coverage universe, on a risk-adjusted basis, over the next 12-18 months. Not Covered (NC): Indicates that the analyst does not cover the fund.

Closed-End Fund Ratings Distribution (as of date October 31, 2014) Morgan Stanley Wealth Management only rates CEFs. Thus, this Ratings Distribution table only displays the distribution data for the rated CEFs. For disclosure purposes only (in accordance with FINRA requirements), we include the category of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-weight, and Underweight. Morgan Stanley Wealth Management does not assign ratings of Buy, Hold or Sell to the CEFs we cover. Overweight, Equal-weight, and Underweight are not the equivalent of buy, hold, and sell but represent recommended relative weightings (see definition below). To satisfy regulatory requirements, we correspond Overweight, our most positive stock rating, with a buy recommendation; we correspond Equal-weight to hold and Underweight to sell recommendations, respectively.

CEF Coverage Universe Closed-End Fund (CEF) Rating Category

Count

% of Total

Investment Banking Clients (IBC) Count % of Total IBC % of Rating Category

Overweight/Buy

29

29.9%

14

28.0%

48.3%

Equal-weight/Hold

47

48.5%

24

48.0%

51.1%

Underweight/Sell

21

21.6%

12

24.0%

57.1%

Total

97

100.0%

50

100.0%

Data includes CEFs currently assigned ratings. An investor's decision to buy or sell a fund should depend on individual circumstances (such as an investor's existing holdings) and other considerations. The Investment Banking Clients data above applies only to Morgan Stanley Wealth Management's CEF coverage universe. The data indicates those CEF investment managers for whom Morgan Stanley Wealth Management, provided investment banking services within the previous 12 months.

Other Important Disclosures This Morgan Stanley Wealth Management Research does not provide individually tailored investment advice. Morgan Stanley Wealth Management Research has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. 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. The securities, instruments, or strategies discussed in Morgan Stanley Wealth Management Research may not be suitable for all investors, and certain investors may not be eligible to purchase or participate in some or all of them.

Morgan Stanley Wealth Management and its affiliates do not render advice on tax and tax accounting matters to clients. This material was not intended or written to be used, and it cannot be used or relied upon by any recipient, for any purpose, including the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws.

Please refer to important information, disclosures and qualifications at the end of this material.

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Each client should consult his/her personal tax and/or legal advisor to learn about any potential tax or other implications that may result from acting on a particular recommendation. Morgan Stanley Wealth Management Research is not an offer to buy or sell or the solicitation of an offer to buy or sell any security/instrument or to participate in any particular trading strategy. The "Important US Regulatory Disclosures on Subject Issuers" section in Morgan Stanley Wealth Management Research reports or the "Listing of Important U.S. Regulatory Disclosures by security" section of the firm's disclosure website at https://www.morganstanley.com/online/researchdisclosures lists all issuers mentioned where Morgan Stanley Wealth Management or its affiliates own 1% or more of a class of common equity securities of the issuers. For all other issuers mentioned in Morgan Stanley Wealth Management Research, Morgan Stanley Wealth Management or its affiliates may have an investment of less than 1% in securities/instruments or derivatives of securities/instruments of companies and may trade them in ways different from those discussed in Morgan Stanley Wealth Management Research. Employees of Morgan Stanley Wealth Management Research are not involved in the preparation of Morgan Stanley Wealth Management Research, may have investments in securities/instruments or derivatives of securities/instruments of issuers mentioned and may trade them in ways different from those discussed in Morgan Stanley Wealth Management Research. Morgan Stanley Wealth Management Research is based on public information. Morgan Stanley Wealth Management makes every effort to use reliable, comprehensive information, but we make no representation that it is accurate or complete. We have no obligation to tell you when opinions or information in Morgan Stanley Wealth Management Research change apart from when we intend to discontinue equity research coverage of a subject company. Facts and views presented in Morgan Stanley Wealth Management Research have not been reviewed by, and may not reflect information known to, professionals in other Morgan Stanley Wealth Management business areas, including investment banking personnel. Morgan Stanley Wealth Management Research personnel conduct site visits from time to time but are prohibited from accepting payment or reimbursement by the company of travel expenses for such visits. The value of and income from your investments may vary because of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices, market indexes, operational or financial conditions of companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. If provided, and unless otherwise stated, the closing price on the cover page is that of the primary exchange for the subject company's securities/instruments. Morgan Stanley Wealth Management may make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. Investing in closed-end funds involves risks. These include the general risks associated with investing in securities, possible changes in market prices relative to net asset values and manager performance. Besides the general risk of holding securities that may decline in value, closed-end funds have risks related to leverage and the potential for discounts to widen. Morgan Stanley Wealth Management's Global Research Department produces and distributes research products for clients of Morgan Stanley Wealth Management. This research is disseminated in Australia to "retail clients" within the meaning of the Australian Corporations Act by Morgan Stanley Wealth Management Australia Pty Ltd (A.B.N. 19 009 145 555, holder of Australian financial services license No. 240813). Morgan Stanley Wealth Management is not incorporated under the People's Republic of China ("PRC") law and the research in relation to this report is conducted outside the PRC. In the PRC, this report will be distributed only upon request of a specific recipient. This report does not constitute an offer to sell or the solicitation of an offer to buy any securities in the PRC. PRC investors must have the relevant qualifications to invest in such securities and must be responsible for obtaining all relevant approvals, licenses, verifications and or registrations from PRC's relevant governmental authorities. If your financial adviser is based in Australia, Dubai, Germany, Italy, Switzerland or the United Kingdom, then please be aware that this report is being distributed by the Morgan Stanley entity where your financial adviser is located, as follows: Australia: Morgan Stanley Wealth Management Australia Pty Ltd (ABN 19 009 145 555, AFSL No. 240813); Dubai: Morgan Stanley Private Wealth Management Limited (DIFC Branch), regulated by the Dubai Financial Services Authority (the DFSA), and is directed at Professional Clients only, as defined by the DFSA; Germany: Morgan Stanley Private Wealth Management Limited, Munich branch authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Bundesanstalt fuer Finanzdienstleistungsaufsicht; Italy: Morgan Stanley Bank International Limited, Milan Branch, authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, the Banca d'Italia and the Commissione Nazionale per Le Societa' E La Borsa; Switzerland: Bank Morgan Stanley AG regulated by the Swiss Financial Market Supervisory Authority; or United Kingdom: Morgan Stanley Private Wealth Management Ltd, authorized and regulated by the Financial Conduct Authority, approves for the purposes of section 21 of the Financial Services and Markets Act 2000 this research for distribution in the United Kingdom. Morgan Stanley Wealth Management is not acting as a municipal advisor to any municipal entity or obligated person within the meaning of Section 15B of the Securities Exchange Act (the "Municipal Advisor Rule") and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning the Municipal Advisor Rule. This material is disseminated in the United States of America by Morgan Stanley Wealth Management.

Please refer to important information, disclosures and qualifications at the end of this material.

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The trademarks and service marks contained in Morgan Stanley Wealth Management Research are the property of their respective owners. Thirdparty data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. Morgan Stanley Wealth Management Research, or any portion thereof may not be reprinted, sold or redistributed without the written consent of Morgan Stanley Smith Barney LLC. Morgan Stanley Wealth Management Research is disseminated and available primarily electronically, and, in some cases, in printed form.

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Please refer to important information, disclosures and qualifications at the end of this material.

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