PRIVATE WEALTH MANAGEMENT - … · PRIVATE WEALTH MANAGEMENT Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC. Member SIPC Team Global | 2016

PRIVATE WEALTH MANAGEMENT

Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC. Member SIPC

P R I V A T E W E A L T H M A N A G E M E N T T E A M G L O B A L

1 0 1 P A R K A V E N U E N E W Y O R K , N Y 1 0 1 7 8

Putting Clients First | Doing the Right Thing | Leading with Exceptional Ideas | Giving Back



Team Global | 2016

T E A M O V E R V I E W

I N V E S T M E N T P R O C E S S

D I S C R E T I O N A R Y P O R T F O L I O S

C L I E N T S E R V I C E S

A G E N D A



Team Global | 2016

T E A M M E M B E R S

RON BASU Managing Director, Wealth Management Private Wealth Advisor Senior Investment Consultant Senior Portfolio Management Director Barron’s Top 100 Financial Advisors, 2015 Financial Times Top 400 Advisors, 2015

Focus: Equity Asset Allocation, Institutional Consulting Years of Experience: 24 • Oversees Asset Allocation and Client Portfolios • Focuses on macroeconomic trade ideas and investment

themes • Develops and maintains customized hedge fund,

pension plan and ultra-high net worth client solutions

RACHAEL NAYLOR Senior Vice President Private Wealth Advisor Senior Portfolio Manager Financial Times Top 400 Advisors, 2015 Barron’s Top 100 Women Financial Advisors 2015

Focus: Fixed Income and Currencies Years of Experience: 25 • US and International Fixed Income portfolio manager

and strategist • Focuses on: Fixed Income, Foreign Exchange,

Commodities, Futures and Derivatives

CHRISTOPHER TOOMEY, CFA Executive Director Private Wealth Advisor Alternative Investments Director Financial Times Top 400 Advisors, 2015

Focus: Manager and Strategy Implementation Years of Experience: 18 • Focuses on manager selection and third-party manager

solutions • Alternative Investments, Proprietary Offerings and

Asset Allocation

MATTHEW NASH Private Wealth Advisor Global Sports & Entertainment Director

Focus: Next Generation Advisory & Impact Investing Years of Experience: 6 • Develops customized impact investment portfolios • Advises entrepreneurs on pre- and post-liquidity

planning strategies

STUART DUBSON, CPM Business Development Associate

Focus: Equities and Options Years of Experience: 32 • Global Equities and Options portfolio manager, Analyst • Advises on comprehensive portfolio hedging strategies

ALEKSANDR BREZGIN Analyst

Focus: Fixed Income Research & Portfolio Analytics Years of Experience: 4

STEVEN CERVINO Wealth Management Associate

Focus: Manager Research & Portfolio Analytics Years of Experience: 3

ANNE LIN Assistant Vice President

Focus: Fixed Income, Portfolio Implementation Years of Experience: 14

ALICE KIM Business Development Associate

Focus: Equity, Options and Syndicate Trading Years of Experience: 10

BRIAN COX Wealth Advisory Associate

Focus: Portfolio Analytics Years of Experience: 2

SHERYL DENNISTON Senior Client Service Associate

Focus: Client Account Maintenance & Service Years of Experience: 20

LISETTE MONTALVO Senior Client Service Associate


JESSICA YORKS Client Service Associate




Team Global | 2016

O U R T E A M ’ S O F F E R I N G

P H I L O S O P H Y

Seek conservation of principal and active management of portfolios.

Risk analysis and the ability to invest in all asset classes and global markets.

Construction and customization of portfolios designed to satisfy client’s risk / reward profile.

Personalized attention and innovative financial solutions designed to maximize income.

CLIENT BASE

•Over $3 billion assets under management 1

•Clients include:

– Global families and entrepreneurs

– Money management principals

– Single & Multi-Family Offices

– Non-profit foundations & organizations

– Corporate pension plans

– Institutional money managers (Long only & Hedge Funds)

– High net worth individuals

– Small cap banks

– Offshore investors

• Institutional experience derived from team’s previous experience in Institutional Fixed Income and Capital Markets, Hedge Fund Trading, Portfolio Management and Institutional Asset Management.

• Global, Multi-currency trading experience in local markets.

• Market immersion through team-managed discretionary client portfolios across asset classes.

• Senior Investment Consultant designation provides access to Consulting Group Institutional Services and Graystone Consulting, which consults to over $150 billion in institutional assets. 1

GLOBAL VISION: MARKET INTELLIGENCE ATTAINED VIA OUR THREE COMPLEMENTARY BUSINESSES

Consulting and Advisory

• Discretionary Portfolios

• Third Party Managers

• Hedge Funds

Discretionary Managed

• Fixed Income

• U.S. & International Equities

• Master Limited Partnerships

• Balanced

Brokerage

• Global, multi-currency

execution

• Portfolio Hedging

• International Swaps and

Derivatives (ISDA) Trading

1 AUM as of December 31, 2014


Team Global | 2016

T H E M O R G A N S T A N L E Y F I R M W I D E G L O B A L F O O T P R I N T 1

Part of a global banking legacy that dates back over 150 years, Morgan Stanley has emerged as one of the very few truly global institutions with the scale, scope and commitment to serve the international investor.

EUROPE France | Germany | Greece Hungary | Ireland | Italy Luxembourg | Netherlands Poland | Spain | Sweden Switzerland | United Kingdom Ukraine

NORTH AMERICA Canada | United States | Mexico

SOUTH AMERICA Argentina | Brazil | Chile Colombia | Peru

AFRICA Egypt | South Africa

AUSTRALIA Australia | New Zealand

ASIA China | Hong Kong | India Indonesia | Israel | Japan Malaysia | Philippines Qatar | Russia | Saudi Arabia Singapore | Taiwan | Thailand Turkey | United Arab Emirates Vietnam

1 Morgan Stanley Wealth Management offices are located in the United States, Asia and Australia.



Team Global | 2016

G L O B A L R E C O G N I T I O N

BARRON’S “TOP 100 FINANCIAL ADVISORS”

Ron has been recognized by Barron’s Magazine’s annual ranking of America’s top

financial advisor’s for three years running from 2012-2016; placing in the top ten in

New York in each of the last three years. Rachael has also been named as a

Barron’s Top 100 Women Financial Advisor in 2015 & 2016.

The Barron’s ranking shown reflects the volume of assets overseen by the advisor and

their team, revenues generated for the firms and the quality of the advisors practice.

The scoring system assigns a top score of 100 and rates the rest by comparing them

with the top ranked advisor.

“TOP 400 ADVISOR LIST ”

Ron has been named to the Financial Times Top 400 Advisor list in America since

the list’s inaugural year in 2013. Chris & Rachael have also been named to the list

for 2015.

“The formula the FT uses to grade advisors is based on 6 broad factors and calculates a

score for each. Areas considered include: AUM, asset growth, years of experience,

industry certification, Financial Industry Regulatory Authority compliance record and

online accessibility…AUM and asset growth comprise 80-85% of each score. We present

the FT 400 as an elite group and not ranked from 1-400.”- Loren Fox, Financial Times


Team Global | 2016

I N V E S T M E N T P R O C E S S

Investment Objectives &

Policy Statement

Strategic Asset Allocation & Correlation

Execution & Tactical

Adjustments

Investment Domicile & Structuring

Your individualized investment policy statement (IPS) defines your investment objectives to ensure that your portfolio is built to meet your financial goals

Ongoing Monitoring &

Risk Management

1 2 3 4 5

The decision of how to structure and where to domicile your investments is a key factor in optimizing asset protection, tax, privacy and regulatory compliance

The strategic asset allocation memorializes a long-term strategy for the portfolio which accounts for correlations between holdings, including those outside of the portfolio

A detailed implementation strategy identifies the appropriate managers to align with the portfolio’s goals and allows for tactical adjustments based on market changes

Coordinating with you and other advisors, we conduct ongoing reviews and comprehensive reporting to ensure that your strategy adapts to changing financial and family needs


Team Global | 2016

M A N A G E R S E L E C T I O N

Third Party Asset Manager Research Open architecture platform dedicated to offering clients a wide variety of separate account and mutual fund asset classes, including:

• Balanced

• Convertible

• Emerging Markets

• Equity

• Real Estate

CONSULTING GROUP INVESTMENT ADVISOR RESEARCH (“CG IAR”)

• Fixed Income

• Global Equity

• International Equity

• Municipals

• Socially Responsible

CG IAR Manager Research Team • Team of 29 manager research professionals

• Analysts average over 10 years of investment analysis

• Specialized knowledge and skills derived from a diverse range of experiences

Mutual Funds 7,100

CG IAR Approved Strategies

1,100

CG IAR’s Rigorous Due Diligence Process

MORGAN STANLEY WEALTH MANAGEMENT APPROVED STRATEGIES

ANALYSIS OF THIRD-PARTY MANAGERS

Quantitative Analysis • Portfolio Strategy

Performance

• Risk/Reward Profile

• Portfolio Characteristics

• Risk Statistics

• Quartile Rankings

• Asset Growth Statistics

Quantitative Analysis • Personnel Turnover

• Asset Manager History

• Organizational Credibility

• Sound Investment Process

• Adherence to Investment Strategy

• On-site Interviews with Portfolio Managers

These materials do not constitute an offer to either buy or sell securities or to participate in any trading strategy.

Strategies 7,700


Team Global | 2016

M A N A G E R S E L E C T I O N & P O R T F O L I O C O N S T R U C T I O N

INCENTIVE

• Is the team properly resourced and are they incentivized for long-term performance?

STRATEGY EXECUTION

• Does the portfolio reflect the manager’s philosophy?

• What drives performance?

CULTURE

• Does the team have relevant work experience?

• Are they focused and engaged?

COST

• Are the fees and expenses competitive with similar strategies?

SPECIALIZATION

• Is the team focused on one investment style?

MARKET FACTOR

MARKET TIMING

SECURITY SELECTION

BETA

ALPHA

OUR APPROACH COMMON APPROACH

MANAGER RETURN

Our experts use a rigorous process to identify appropriate managers for each asset class. The intention of our manager selection process is to identify those managers who can potentially deliver performance net of fees over a full market cycle. We conduct qualitative and quantitative due diligence.



Team Global | 2016

I M P A C T I N V E S T I N G – D E F I N I N G A F R A M E W O R K 1

Define Vision Define a clear vision for impact investing.

As there is no one-size-fits-all approach, we work with investors to define a strategy that suits their motivations and unique context. This includes setting distinct impact goals and evaluation criteria.

1

Determine Engagement Strategy Determine how to engage with impact investing.

Once the vision has been set, what is the best way to get started? What portion of the portfolio should be allocated to impact investments? We help investors evaluate fit within their existing portfolios and prepare a plan to implement investments.

2

Develop Investment Guidelines Create formalized impact investment guidelines.

We work with investors to review existing or develop a new set of investment guidelines, integrating impact goals. These will inform the portfolio construction process and the ongoing evaluation strategy.

3

Execute Strategy Implement the investment strategy.

Deploy capital based upon the investment guidelines and impact portfolio construction model The asset allocation framework will be based on impact objectives as well as traditional financial parameters, including risk tolerance, liquidity needs, etc.

4

Evaluate Portfolio & Adjust Strategy Evaluate the portfolio on a regular basis and improve the strategy.

We help families to monitor both the financial performance and the impact goals. Based on the results of the evaluation, we work with families to fine-tune the strategy with updated investment and impact goals.

5

Each family’s path into impact investing is unique. The following framework is designed to help customize a unique engagement with impact investing.

1 Impact Investing Framework developed by World Economic Forum, as published in Impact Investing: A Primer for Family Offices, December, 2014.



Team Global | 2016

D I S C R E T I O N A R Y M A N A G E D S T R A T E G I E S

O V E R A L L S T R A T E G Y O B J E C T I V E S :

To create discretionary managed portfolios that focus on capital preservation, income and long-term growth. The portfolios seek to provide diversification across asset classes, industries, and geography, including exposure to non-USD assets.

INDIVIDUAL STRATEGIES

Flexible Fixed Income

Investment Objective:

The primary objective will

always be capital preservation.

Unlike most managers who only

solve for income, we take a

more active approach and view

our objective with a total return

philosophy, managing both for

income and capital appreciation.

The portfolio has the ability to

move tactically within and

between various fixed income

sub-asset classes.

Buy Write


To generate an income stream

and achieve growth at a

reasonable price by purchasing a

diversified basket of high quality,

multinational stocks. Call options

may be written on certain

positions to harness volatility,

enhance the income stream and

protect against downside risk.

Master Limited Partnerships (MLPs)


Our strategy seeks to achieve a

diversified exposure to Master

Limited Partnership subsectors

with a target yield greater than or

equal to that of the Alerian MLP

Index.

Global Income Growth


To diversify across geographic

regions and economic sectors by

investing in listed common stock

of high-quality, multinational

companies. The portfolio will be

actively managed and seeks to

obtain a yield that exceeds its

index. The portfolio may over or

under-weight sectors or countries

relative to their index weight.

Global Total Return


A transparent, balanced

portfolio that allocates to

multiple asset classes with an

income and growth focus. The

portfolio is diversified across

currency and geography.

Asset Classes include: Fixed

Income, Equities, Master

Limited Partnerships,

Convertible Bonds,

Commodities, Hedge Funds,

Managed Futures, Cash and

Currencies.



Team Global | 2016

F A M I L Y O F F I C E S E R V I C E S

Morgan Stanley Smith Barney LLC (Morgan Stanley Wealth Management), its affiliates, and Financial Advisors and employees are not in the business of providing tax or legal advice, and these materials and any statements contained herein should not be construed as tax or legal advice. Individuals are urged to consult their personal tax advisor or attorney for matters involving taxation and tax planning and their personal attorney for matters involving trust and estate planning and other legal matters. 1 Services may be provided by a third-party or through an affiliate of Morgan Stanley Smith Barney LLC

FAMILY OFFICE OVERVIEW

An integrated approach to planning that includes family issues, wealth transfer, asset protection and business succession planning

Helps you maintain family unity across generations by focusing on family mission, governance, conflict management and family endowments

Solutions to help ease administration burdens—from consolidating your financial reports to managing some of the most complex aspects of your life

Management of wealth that is focused on your family’s interests over the long term

Helping to protect what you will transfer to the next generation—your values as well as financial assets

Access to a highly exclusive range of resources and solutions tailored specifically to you

WEALTH STRATEGIES

GROUP

1 TAX, TRUST & ESTATE

PLANNING

2

ACCESS TO BANKING &

LENDING

3 FAMILY

GOVERNANCE & DYNAMICS

4

PHILANTHROPY MANAGEMENT

5

LIFESTYLE ADVISORY1

6

EDUCATIONAL PROGRAMS

7

PRIVATE HEALTH CARE

ADVISORY1

8



Team Global | 2016

I M P O R T A N T I N F O R M A T I O N

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.

Morgan Stanley Smith Barney LLC offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please visit us at http://www.morganstanleyindividual.com or consult with your Financial Advisor or Private Wealth Advisor to understand these differences

An investment in alternative investments can be highly illiquid, is speculative and not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Some of these risks may include:

• loss of all or a substantial portion of the investment due to leveraging, short-selling, or other speculative practices;

• lack of liquidity in that there may be no secondary market for the fund and none is expected to develop;

• volatility of returns; restrictions on transferring interests;

• potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized;

• absence of information regarding valuations and pricing; complex tax structures and delays in tax reporting;

• less regulation and higher fees than mutual funds;

• and manager risk. Individual funds will have specific risks related to their investment programs that will vary from fund to fund.

Actual results may vary and past performance is no guarantee of future results.

This material is intended only for clients and prospective clients of the Discretionary Management program. It has been prepared solely for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument, or to participate in any trading strategy.

The individuals mentioned as the Discretionary Management Team are Private Wealth Advisors with Morgan Stanley participating in the Morgan Stanley Discretionary Management program. The Discretionary Management program is an investment advisory program in which the client’s Private Wealth Advisor invests the client’s assets on a discretionary basis in a range of securities. The Discretionary Management program is described in the applicable Morgan Stanley ADV Part 2, available at www.morgan stanley.com/ADV or from your Private Wealth Advisor.

Past performance of any security is not a guarantee of future performance. There is no guarantee that this investment strategy will work under all market conditions.

Holdings are subject to change daily, so any securities discussed in this profile may or may not be included in your account if you invest in this investment strategy. Do not assume that any holdings mentioned were, or will be, profitable.

The performance, holdings, sector weightings, portfolio traits and other data for an actual account may differ from that in this material due to various factors including the size of an account, cash flows within an account, and restrictions on an account.

Top holdings, sector allocation, portfolio statics and credit quality are based on the recommended portfolio for new investors as of the date specified. Holdings lists indicate the largest security holdings by allocation weight as of the specified date. Other data in this material is believed to be accurate as of the date this material was prepared unless stated otherwise. Data in this material may be calculated by Morgan Stanley or by third party providers licensed by the Private Wealth Advisors or Morgan Stanley.

Morgan Stanley Private Wealth Management has no obligation to notify you when information in this presentation changes.

International investing may not be suitable for every investor and is subject to additional risks, including currency fluctuations, political factors, withholding, lack of liquidity, the absence of adequate financial information, and exchange control restrictions impacting foreign issuers. These risks may be magnified in emerging markets.



Team Global | 2016


Options are not suitable for all investors.

Before engaging in the purchase or sale of options, potential clients should understand the nature of and extent of their rights and obligations and be aware of the risks involved, including, without limitation, the risks pertaining to the business and financial condition of the issuer of the underlying security or instrument. Options investing, like other forms of investing, involves tax considerations, transaction costs and margin requirements that can significantly affect the profit and loss of buying and writing options. The transaction costs of options investing consist primarily of commissions (which are imposed in opening, closing, exercise and assignment transactions), but may also include margin and interest costs in particular transactions. Transaction costs are especially significant in options strategies calling for multiple purchases and sales of options, such as multiple leg strategies, including spreads, straddles and collars. If you are considering options as part of your investment plan, your Morgan Stanley Financial Advisor or Private Wealth Advisor is required to provide you with the "Characteristics and Risks of Standardized Options" booklet from the Options Clearing Corporation. Clients should not enter into options transactions until they have read and understood the Disclosure Document, as options are not suitable for everyone, and discuss transaction costs with their Financial Advisor or Private Wealth Advisor. Please ask your Financial Advisor or Private Wealth Advisor for a copy of the Characteristics and Risks of Standardized Options booklet. A copy of the ODD is also available online at: http://www.theocc.com/about/publications/publication-listing.jsp

An investment in an exchange-traded fund involves risks similar to those of investing in a broadly based portfolio of equity securities traded on an exchange in the relevant securities market, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in stock and bond prices. (For specifics and a greater explanation of possible risks with ETFs, please consult a copy of the prospectus.) Investing in sectors may be more volatile than diversifying across many industries. The investment return and principal value of ETF investments will fluctuate, so an investor’s ETF shares (creation units), if or when sold, may be worth more or less than the original cost.

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. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Because of their narrow focus, MLPs maintain exposure to price volatility of commodities and/or underlying assets and tend to be more volatile than investments that diversify across many sectors and companies. MLPs are also subject to additional risks including: investors having limited control and rights to vote on matters affecting the MLP, limited access to capital, cash flow risk, lack of liquidity, dilution risk, conflict of interests, and limited call rights related to acquisitions.

Alerian MLP: A composite of the 50 most prominent energy Master Limited Partnerships that provides investors with an unbiased, comprehensive benchmark for this emerging asset class. The index, which is calculated using a float-adjusted, capitalization-weighted methodology, is disseminated real-time on a price-return basis and on a total-return basis. An investment cannot be made directly in a market index.

Source: Barron's “Top 100 Financial Advisors,” April 20, 2015. Barron’s “Top 100 Financial Advisors” bases its ratings on qualitative criteria: professionals with a minimum of 7 years of financial services experience, acceptable compliance records, client retention reports, customer satisfaction, and more. Financial Advisors are quantitatively rated based on varying types of revenues and assets advised by the financial professional, with weightings associated for each. Because individual client portfolio performance varies and is typically unaudited, this rating focuses on customer satisfaction and quality of advice. The rating may not be representative of any one client’s experience because it reflects a sample of all of the experiences of the Financial Advisor’s clients. The rating is not indicative of the Financial Advisor’s past or future performance. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pay 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. Source: The Financial Times Top 400 Financial Advisors is an independent listing produced by the Financial Times (March, 2015). The FT 400 is based in large part on data gathered from and verified by broker-dealer home offices, and, as identified by the FT, reflected each advisor’s performance in six primary areas, including assets under management, asset growth, compliance record, experience, credentials and accessibility. The rating may not be representative of any one client’s experience and is not indicative of the Financial Advisor’s future performance. Neither Morgan Stanley Smith Barney LLC nor its Financial Advisors or Private Wealth Advisors pays a fee to The Financial Times in exchange for the rating.

http://www.theocc.com/about/publications/publication-listing.jsp



Team Global | 2016


Source: Barron’s “Top 100 Women Financial Advisors,” June 8, 2015. Barron’s is a registered trademark of Dow Jones & Company, L.P. All rights reserved. Barron’s “Top 100 Women Financial Advisors” bases its ratings on qualitative criteria: professionals with a minimum of 7 years financial services experience, acceptable compliance records, client retention reports, customer satisfaction, and more. Financial Advisors are quantitatively rated based on varying types of revenues and assets advised by the financial professional, with weightings associated for each. Because individual client portfolio performance varies and is typically unaudited, this rating focuses on customer satisfaction and quality of advice. The rating may not be representative of any one client’s experience because it reflects a sample of all of the experiences of the Financial Advisor’s clients. The rating is not indicative of the Financial Advisor’s future performance. Neither Morgan Stanley Smith Barney LLC nor any of its Financial Advisors pay a fee to Barron’s in exchange for the rating.

The MSCI All Country World (ex US) Index is a market-capitalization-weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. The MSCI All Country World Index Ex-U.S. includes both developed and emerging markets. An investment cannot be made directly in a market index.

Consulting Group is a business of Morgan Stanley Smith Barney LLC. Member SIPC.

Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC. Member SIPC.

PRIVATE WEALTH MANAGEMENT - … · PRIVATE WEALTH MANAGEMENT Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC. Member SIPC Team Global | 2016

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