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MORGAN STANLEY
|
2025
our advice to clients. They continually monitor developing economic and
market conditions, review tactical outlooks and recommend model portfolio
weightings, as well as produce a suite of strategy, analysis, commentary,
portfolio positioning suggestions and other reports and broadcasts.
Investing in the markets entails the risk of market volatility. The value
of all types of investments, including stocks, mutual funds, exchange-
traded funds (ETFs), closed-end funds and unit investment trusts, may
increase or decrease over varying time periods.
Growth investing
does
not guarantee a profit or eliminate risk. The stocks of these companies
can have relatively high valuations. Because of these high valuations, an
investment in a growth stock can be more risky than an investment in a
company with more modest growth expectations.
Value investing
does
not guarantee a profit or eliminate risk. Not all companies whose stocks
are considered to be value stocks are able to turn their business around
or successfully employ corrective strategies which would result in stock
prices that do not rise as initially expected. The value of
fixed income
securities
will fluctuate and, upon a sale, may be worth more or less than
their original cost or maturity value. Bonds are subject to interest rate risk,
call risk, reinvestment risk, liquidity risk and credit risk of the issuer. To the
extent the investments depicted herein represent
international securities
,
you should be aware that there may be additional risks associated with
international investing, including foreign economic, political, monetary
and/or legal factors, changing currency exchange rates, foreign taxes,
and differences in financial and accounting standards.
Direct Indexing may adversely impact account performance. There is no
guarantee that Direct indexing will produce the desired tax results.
Clients may elect Tax Management Services for the account by notifying
their Financial Advisor, and indicate what Maximum Tax or Realized Capital
Gain Instruction is desired for the account, if any. The Tax Management
Services Terms and Conditions attached to the Morgan Stanley Smith Barney
LLC Select UMA ADV brochure as Exhibit A will govern Tax Management
Services in the account. Review the Morgan Stanley Smith Barney LLC
Select UMA ADV brochure carefully with your tax advisor. Tax Management
Services are not available for all accounts or clients and may adversely
impact account performance. Tax Management Services do not constitute
tax advice or a complete tax-sensitive investment management program.
There is no guarantee that Tax Management Services will produce the
desired tax results.
Certain portfolios may include investment holdings deemed Environmental,
Social and Governance (“ESG”) investments. For reference, environmental
("E") factors can include, but are not limited to, climate change, pollution,
waste, and how an issuer protects and/or conserves natural resources. Social
("S") factors can include, but not are not limited to, how an issuer manages
its relationships with individuals, such as its employees, shareholders, and
customers as well as its community. Governance ("G") factors can include, but
are not limited to, how an issuer operates, such as its leadership composition,
pay and incentive structures, internal controls, and the rights of equity and
debt holders. Carefully review an investment product’s prospectus or other
offering documents, disclosures and/or marketing material to learn more
about how it incorporates ESG factors into its investment strategy. ESG
investments may also be referred to as sustainable investments, impact-
aware investments, socially responsible investments or diversity, equity,
and inclusion (“DEI”) investments. It is important to understand there are
inconsistent ESG definitions and criteria within the industry, as well as
multiple ESG ratings providers that provide ESG ratings of the same subject
companies and/or securities that vary among the providers. This is due to
a current lack of consistent global reporting and auditing standards as well
as differences in definitions, methodologies, processes, data sources and
subjectivity among ESG rating providers when determining a rating. Certain
issuers of investments including, but not limited to, separately managed
accounts (SMAs), mutual funds and exchange-traded funds (ETFs) may
have differing and inconsistent views concerning ESG criteria where the ESG
claims made in offering documents or other literature may overstate ESG
impact. Further, socially responsible norms vary by region, and an issuer’s
ESG practices or Morgan Stanley’s assessment of an issuer’s ESG practices
can change over time. Portfolios that include investment holdings deemed
ESG investments or that employ ESG screening criteria as part of an overall
strategy may experience performance that is lower or higher than a portfolio
not employing such practices. Portfolios with ESG restrictions and strategies
as well as ESG investments may not be able to take advantage of the same
opportunities or market trends as portfolios where ESG criteria is not applied.
There is no assurance that an ESG investing strategy or techniques employed
will be successful. Past performance is not a guarantee or a dependable
measure of future results. For risks related to a specific fund, please refer to
the fund’s prospectus or summary prospectus. Investment managers can
have different approaches to ESG and can offer strategies that differ from the
strategies offered by other investment managers with respect to the same
theme or topic. Additionally, when evaluating investments, an investment
manager is dependent upon information and data that may be incomplete,
inaccurate or unavailable, which could cause the manager to incorrectly
assess an investment’s ESG characteristics or performance. Such data or
information may be obtained through voluntary or third-party reporting.
Morgan Stanley does not verify that such information and data is accurate
and makes no representation or warranty as to its accuracy, timeliness or
completeness when evaluating an issuer. This can cause Morgan Stanley
to incorrectly assess an issuer’s business practices with respect to its ESG
practices. As a result, it is difficult to compare ESG investment products.
Morgan Stanley’s assessment of an issuer’s ESG practices or an ESG portfolio
is as of the date of this material. No assurance is provided that the underlying
assets have maintained or will maintain any applicable ESG designations
or any stated ESG compliance, or that the underlying assets have been
operated or will be operated in an ESG-compliant manner. The ESG impacts
of the securities and any underlying assets may vary over time. This can
cause Morgan Stanley to incorrectly assess an issuer’s business practices
with respect to its ESG practices. As a result, it is difficult to compare ESG
investment products. Morgan Stanley makes no representation as to the
compliance or otherwise of any fund or portfolio with any laws or regulatory
guidelines, recommendations, requirements or similar relating to the ESG
characterization of any fund or portfolio, or in connection with or to meet
any of the investing ESG objectives, metrics or criteria. The appropriateness
of a particular ESG investment or strategy will depend on an investor’s
individual circumstances and objectives. Principal value and return of an
investment will fluctuate with changes in market conditions. Environmental,
Social and Governance (“ESG”) investments in a portfolio may experience
performance that is lower or higher than a portfolio not employing such
