General Disclosure
The accounts covered in this report are listed herein and may not include all of your accounts with us and, from time to time, you may ask Morgan Stanley to provide an Analysis including accounts that are under your control, but with a different beneficial owner(s) (such as family members, affiliated business entities, etc.). Furthermore, the information included in this report may not include all asset classes/securities held by you at the firm. As part of your customization discussion, you may elect to make specific changes to account or security level attributes. These attributes may include multi-level security taxonomy and benchmarks that differ from the Morgan Stanley Global Investment Committee (GIC) classifications. In instances where your customization needs vary from Morgan Stanley GIC classifications, you acknowledge that Morgan Stanley may have a different view as to the treatment of these attributes and that Morgan Stanley’s acceptance of your requests for customization does not constitute the review or approval of Morgan Stanley or of the Morgan Stanley Global Investment Committee. Please review this report for a complete list of these accounts.
Investments involving foreign currencies are subject to currency risk. Foreign currencies may experience significant price movements, including within a single day, and any currency held in an account may depreciate relative to other currencies. Exchange rates reflect the relative value of two different currencies and are influenced by a variety of factors, including economic, financial, and political conditions in the relevant countries, as well as global market pressures. These factors may include, among others, national debt levels, trade deficits and balance‑of‑payments conditions, domestic and foreign interest rates and inflation, monetary policies, geopolitical developments, and potential government intervention in currency or other financial markets.
- To the extent the account holds foreign securities, values have been converted from the applicable non‑U.S. currency into U.S. dollars (USD) using Refinitiv (formerly Thomson Reuters) spot exchange rates as of the date of this report. All values are presented in U.S. dollars for reporting and informational purposes only.
- Foreign exchange (FX) spot rates are sourced from Refinitiv and generally reflect rates as of 4:00 p.m. London time on the relevant valuation or transaction date.
- Alternative exchange rate sources for certain currencies may be available upon request. Please contact your Financial Advisor for additional information.
For convenience purposes, your Private Wealth Advisor or Financial Advisor may have assigned a designated name for this Document. Please review this document carefully and discuss any questions you may have with your Private Wealth Advisor or Financial Advisor. If you do not understand an entry, suspect an error, or want more details on current values or other information, contact your Private Wealth Advisor or Financial Advisor. This report is based upon your Morgan Stanley account holdings and may include other holdings/information that you or a third party provided about assets custodied elsewhere. Morgan Stanley will not verify any other holdings/information. If any information reflects assets held away from Morgan Stanley that will be indicated. The information contained in this report is subject to, and does not supersede the confirmations and account statements you receive from us. Values shown in your official account statement may differ from the values shown in this report due to, among other things, different reporting methods, delays, market conditions and interruptions. If there are discrepancies between your official account statement and this report, rely on your official account statement.
Externally Held accounts: Externally Held accounts are custodied outside of Morgan Stanley (whose subsidiaries include Morgan Stanley Wealth Management and Morgan Stanley & Co.) and are not reflected in Morgan Stanley’s accounts statements. Externally Held account data is based upon information provided by external sources and are not part of accounts that are under administration or management at Morgan Stanley Wealth Management. Assets not held with Morgan Stanley Wealth Management are not covered by SIPC protection at Morgan Stanley Wealth Management or by additional protection under Morgan Stanley Wealth Management insurance coverage plans; however, these assets may be subject to SIPC coverage at the entity at which they are custodied. Morgan Stanley Wealth Management may include information about these Externally Held accounts in this view solely as a service to you and/or your Private Wealth Advisor or Financial Advisor, and Morgan Stanley Wealth Management is not responsible for accuracy of any information provided by external sources. Although the statements of fact and data have been obtained from and are based upon sources that we believe to be reliable, we do not guarantee their accuracy or timeliness, and any such information may be incomplete or condensed. External information presented herein is subject to, and does not supersede, the confirmations and account statements provided by the official external account custodian. Values shown in an official supplemental client report may differ from the values shown due to, among other things, different reporting methods, delays, market conditions and interruptions. We are not obligated to notify you if information changes.
Information being reported by Morgan Stanley Wealth Management on assets held by other custodians, which are related to Income, Performance, Tax Lots, Total Cost, Target Asset Allocation, Asset Classification and Gain/Loss may differ from that information provided by the custodian. In performance calculations, the performance inception date will align with the first date on which Morgan Stanley Wealth Management received account information from the custodian and it does not necessarily align with the account open or fund date. If there are discrepancies between your official account statement and this material, rely on the official account statement. Generally, any financial institution that holds securities is responsible for year-end reporting (Internal Revenue Service (IRS) Form 1099) and separate periodic statements, which may vary from Morgan Stanley Wealth Management’s information.
Information about Corporate Actions: This report may reflect corporate actions (such as dividends and stock splits) as soon as they are declared with respect to the underlying stock rather than when received, in order to ensure that your portfolio fairly reflects your net asset position at all times. The corporate actions are based on information supplied to us by third party sources for which we assume no responsibility.
Asset Classification: We classify assets based on general characteristics such as: income generation, underlying capital structure, or exposure to certain market sectors. As many assets contain characteristics of more than one asset class, allocations may be under or over inclusive. These classifications do not constitute a recommendation and may differ from the classification of instruments for regulatory or tax purposes. For mutual funds and ETFs, Asset Allocations are based on the fund's asset allocation objectives. In addition, the Other asset class contains securities that are not included in the various asset class classifications. This can include, but is not limited to, non-traditional investments such as some Equity Unit Trusts, Index Options and Structured Investments issued outside of Morgan Stanley. Additionally, investments for which we are unable to procure market data to properly classify them will appear in the Other category. The asset class descriptions included in this report are provided for the purpose of this report only and may vary in composition or title from asset classes in other materials provided by Morgan Stanley Smith Barney LLC, Morgan Stanley & Co. LLC, other affiliates or external custodians.
Performance: Market values used for performance calculation do not include Performance Ineligible Assets and thus may differ from asset allocation market values. Common examples of Performance Ineligible Assets include life insurance, some annuities and Externally Held accounts. Unless otherwise indicated, performance is a composite calculation on the entire portfolio and may include brokerage and investment advisory accounts, as well as assets for different accounts included in this report. The accounts included in the composite may have (or have had) different investment objectives and strategies, been subject to different restrictions, and incurred different types of fees, markups, commissions and other charges. In addition, accounts in the composite may have changed from brokerage to advisory or vice versa.
Accounts may also have moved from one advisory program to another (including from a discretionary program to a nondiscretionary program).
For Morgan Stanley Smith Barney LLC accounts, performance information may cover the full history of the account(s) or just the performance of an account(s) since the inception of the current program(s). Performance results on individual accounts will vary and may differ from the composite returns. Your Private Wealth Advisor or Financial Advisor can provide you with individual account portfolio composition and performance information. Disclosure regarding conflicts of interest, fees, and expenses for investment advisory accounts is provided in the Morgan Stanley Smith Barney LLC Form ADV Part 2 or the applicable disclosure brochure. It is also available at www.morganstanley.com/ADV. For brokerage accounts, please speak to your Private Wealth Advisor or Financial Advisor for more information on commissions and other account fees and expenses. Performance inception date does not necessarily correspond to the account opening date. Where multiple accounts are included in performance calculations, the inception date is the oldest performance inception. Performance data may not be available for all periods as some accounts included in performance may have more recent performance inception dates. Consequently, the actual performance for a group of accounts may differ from reported performance.
Sub-Account and Security Level Performance: The performance return methodology described above and in the TWR and IRR definitions applies to both Account Level and Sub-Account (e.g. Asset Class or Security level) performance returns. The inputs consist of market values and net flows.
For example, TWR = (Ending Market Value – Beginning Market Value – Net Flows) / Beginning Market Value
Flows that are not security specific typically include account advisory fees, cash contributions or withdrawals, and any other flows that are not attributed to a specific security.
Flows that are security specific including purchases, sales, dividends, interest, partnership distributions, return of capital, fund sales charges, security transaction fees, and ongoing fund expenses are typically reflected in the security level returns.
Alternative Investments
Information about Alternative Investments: Your interests in Alternative Investments, which may have been purchased through us, are generally not held here, and are generally not covered by SIPC. The information provided to you: 1) is included as a service to you, and certain transactions may not be reported; 2) is derived from you or another external source for which we are not responsible, and may have been modified to take into consideration capital calls or distributions to the extent applicable; 3) may not reflect actual shares, share prices, or values; 4) may include invested or distributed amounts in addition to a fair value estimate; and 5) should not be relied upon for tax reporting purposes. Notwithstanding the foregoing, 1) to the extent this report displays Alternative Investment positions within a Morgan Stanley Individual Retirement Account (“IRA”), such positions are held by Morgan Stanley Smith Barney LLC as the custodian of your Morgan Stanley IRA; and 2) if your Alternative Investment position(s) is held by us and is registered pursuant to the Securities Act of 1933, as amended, your Alternative Investment position(s) is covered by SIPC.
Alternatives may be either traditional alternative investment vehicles or non-traditional alternative strategy vehicles. Traditional alternative investment vehicles may include, but are not limited to, Hedge Funds, Fund of Funds (both registered and unregistered), Exchange Funds, Private Equity Funds, Private Credit Funds, Real Estate Funds, and Managed Futures Funds.
Non-traditional alternative strategy vehicles may include, but are not limited to, Open or Closed End Mutual Funds, Exchange-Traded and Closed-End Funds, Unit Investment Trusts, exchange listed Real Estate Investment Trusts (REITs), and Master Limited Partnerships (MLPs). These non-traditional alternative strategy vehicles also seek alternative-like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short-selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (1) are not FDIC-insured, (2) are not deposits or other obligations of Morgan Stanley or any of its affiliates, (3) are not guaranteed by Morgan Stanley and its affiliates, and (4) involve investment risks, including possible loss of principal. Traditional alternative investment vehicles are illiquid and usually are not valued daily. The estimated valuation provided will be as of the most recent date available and will be included in summaries of your assets. Such valuation may not be the most recent provided by the fund in which you are invested. No representation is made that the valuation is a market value or that the interest could be liquidated at this value. We are not required to take any action with respect to your investment unless valid instructions are received from you in a timely manner. Some positions reflected herein may not represent interests in the fund, but rather redemption proceeds withheld by the issuer pending final valuations which are not subject to the investment performance of the fund and may or may not accrue interest for the length of the withholding. Morgan Stanley does not engage in an independent valuation of your alternative investment assets. Morgan Stanley provides periodic information to you including the market value of an alternative investment vehicle based on information received from the management entity of the alternative investment vehicle or another service provider. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (1) are not FDIC-insured, (2) are not deposits or other obligations of Morgan Stanley or any of its affiliates, (3) are not guaranteed by Morgan Stanley and its affiliates, and (4) involve investment risks, including possible loss of principal. Information about OTC Derivatives: These products are included on this Summary for informational purposes only. The positions represented are not part of your brokerage account(s) carried by MS&Co. and, therefore, are afforded neither SIPC protection nor additional protection under MS&Co.’s excess coverage plans. Please refer to the relevant Confirmation and/or any other governing agreements for full terms. Only with respect to OTC Derivatives, the heading “Security Description” in this Summary means, “Derivative Description”, the heading “Shares or Face Value” means, “Notional Amount”, the heading, “Acquisition Date” means the “Trade Date” and the headings “Book Price”, “Book Cost”, FMV Price, FMV Cost, and “Div or YTM@purch” may not be applicable. This Summary provides an indicative price(s) or estimate(s) (“Indication”) that is provided to you for informational purposes only and is not intended for use by any third party. The Indication is indicative only as of the date shown and is not an offer to purchase or sell any instrument or enter into, transfer and assign, or terminate any transaction, security or instrument (“Transaction”), or a commitment by us to make such an offer. Rather, such Indications generally represent a good faith estimate of a midmarket estimate, a market bid and/or market ask, or any other price or estimate within a market spread. However, particularly for less liquid instruments, such Indications may represent a good faith estimate of a price at which we might be willing to trade to establish or unwind a Transaction with you, subject to conventional assumptions such as normal quantities and normal market conditions. The Indication does not necessarily reflect the price at which a Transaction could actually be effected. You should not assume that the Indication reflects marks provided on the same or similar Transactions to other customers or reflected in our internal bookkeeping or theoretical model based valuations. Certain factors which may not have been assessed for purposes of this Indication, including, for example, the notional amount of these or substantially similar Transactions, credit spreads, underlying volatility, costs of carry, use of capital and profit, may substantially affect the value of any specific Transaction. In addition, such Indications may vary significantly from indicative prices available from other sources or values determined for other purposes such as customer statements or the calculation of collateral or margin requirements. To the extent that such Indications may be based on data and/or information obtained from external sources, we believe any such sources to be reliable but makes no representations or warranties with respect to the accuracy, reliability or completeness of such data and/or information or the Indication. Further, in providing you with this information, we may have assumed and relied upon information provided by you and are under no obligation to verify the adequacy, reasonableness, accuracy or completeness of such information. We have no obligation to continue to provide you with similar information in the future.
Information about Auction Rate Securities: For certain Auction Rate Securities there is no or limited liquidity. There can be no assurance that a successful auction will occur or that a secondary market exists or will develop for a particular security.
Information about Floating Rate Notes: For floating rate securities, the estimated accrued interest and estimated annual income are based on the current floating coupon rate and may not reflect historic rates within the accrual period.
Information about Transactions: Transactions may be included that have not settled during the time period illustrated. Purchase and Sale transactions may have received an average price execution. Details regarding the actual prices are available upon request. The activity date is displayed in the Trade Date field for Morgan Stanley Wealth Management accounts. The activity date provides the date that the transaction was posted to the firm’s books and records and may be different from the trade date, which represents the date the transaction was initiated.
Money Market Fund (MMF): You could lose money in Money Market Funds. Although MMFs classified as government funds (i.e., MMFs that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., MMFs open to natural person investors only) seek to preserve value at $1.00 per share, they cannot guarantee they will do so. The price of other MMFs will fluctuate and when you sell shares they may be worth more or less than originally paid. MMFs may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchases, withdrawals, check writing or ATM debits. A MMF investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency.
Global Currency Deposits: Global Currency is available to clients of Morgan Stanley Smith Barney LLC with an eligible brokerage account. Before undertaking foreign exchange transactions, clients should understand the associated risks. Engaging in foreign currency transactions entails more varied risks than normally associated with transactions in the domestic securities markets. Attention should be paid to market, credit, sovereign, and liquidity risks. The foreign exchange transactions and deposits discussed in this material may not be suitable for all clients. The appropriateness of a particular investment or strategy depends upon a client’s particular circumstances and objectives. This material does not provide individually tailored investment advice. Clients can review the Global Currency Disclosure Statement at for more details. Global Currency Time and Savings Deposits are held at Morgan Stanley Private Bank, National Association, Member FDIC, and are insured up to U.S. Dollar (“USD”) equivalent limits. FDIC insurance does not protect against losses due to exchange rate movements. For more information about FDIC insurance, please visit the FDIC website at Savings Deposits in some currencies may pay no interest. Please refer to www.morganstanley.com/wealth-general/globalcurrencyrates for full availability.
FX Gain/Loss: Gain and Loss statements will not include foreign currency transactions. Morgan Stanley Wealth Management does not provide tax or legal advice. Please speak with your tax and legal advisors regarding any tax related queries.
Projected Cash Flows: Projected cash flows include cash income such as interest and cash dividends, based on current yields as well as return of principal and may include income from Morgan Stanley Wealth Management, Morgan Stanley & Co. and Externally Held accounts when available. These are projections based on historical data and the actual income may be lower or higher than the projections. Projected income for Morgan Stanley & Co. and Externally Held accounts is calculated based upon data obtained from sources that we believe to be reliable, however, Morgan Stanley Wealth Management does not guarantee its accuracy or timeliness. As such, Morgan Stanley Wealth Management recommends confirming projected income information with the custodian institution prior to taking any action.
Timing of Feeds: Quantity and Market Prices: Account and Position data for Morgan Stanley & Co. and Externally Held accounts are obtained from sources that we believe to be reliable; however Morgan Stanley Wealth Management does not guarantee their accuracy or timeliness, as such information may be incomplete, condensed, or based on differing points of time. Please refer to the "Valuation Date" for information regarding when the account and position data was last refreshed for purposes of this report. Do not take action relying on this information without confirming its accuracy and completeness.
Definitions
Disposed Cost Basis: The cost basis of a closed tax lot.
Dollar Weighted Return (DWR/Internal Rate of Return): A return calculation that measures the actual performance of a portfolio over the reporting period. Since dollar weighted returns include the impact of client contributions and withdrawals, they should not be compared to market indices or used to evaluate the performance of a manager, but can be used to evaluate progress toward investment goals.
Gross of Fees: Performance results depicted as "gross" of fees do not reflect the deduction of any wrap fee, investment management fee, trade commissions, and/or other account fees. Your actual returns are lower after deducting these expenses. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Private Wealth Advisor or Financial Advisor will provide those documents to you upon request.
Net of Fees: Performance results depicted as "net" of fees shall mean that any wrap fee, investment management fees, trade commissions, and/or other account fees have been deducted. Any other fees or expenses associated with the account, such as third party custodian fees, may not have been deducted. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Private Wealth Advisor or Financial Advisor will provide those documents to you upon request.
Income Received: Income received includes cash income such as interest, cash dividends and partnership distributions, and may include income from Morgan Stanley & Co. and Externally Held accounts where data is available.
Net Cash Flow: The net amount of cash flowing into a position. On the security level, this metric is impacted when the security generates income or expenses, resulting in a portfolio level metric that is not inclusive of income or expenses.
Non-Taxable: Any security from which the income generally is not subject to Federal income taxation e.g. Municipal bonds. These securities may be subject to other taxes, including capital gains taxes, the Alternative Minimum Tax and state and local taxation.
Performance Ineligible Assets: Performance returns are not calculated for certain assets because accurate valuations and transactions for these assets are not processed or maintained by Morgan Stanley Smith Barney LLC. Common examples can include but are not limited to life insurance, some annuities and Externally Held accounts.
Taxable: Securities that generally give rise to taxable dividends or interest payments.
Taxable Account(s): Accounts that are not Tax-Qualified Account(s), meaning investment earnings (such as capital gains, dividends, and interest) are generally subject to current US federal income taxation when held by US taxable investors.
Tax-Qualified Account(s): Accounts that qualify for favorable tax treatment under US federal tax law and may benefit from favorable tax treatment under applicable state tax law. Typically, these accounts benefit from tax deferred growth potential, meaning investment earnings (such as capital gains, dividends, and interest) are generally not subject to federal income tax while the earnings remain in the account. Capital gains rates generally do not apply. Distributions of taxable amounts are generally subject to ordinary income tax and, if made before age 59 1/2, may be subject to a 10% (25% for certain SIMPLE IRA distributions) penalty tax. Some tax-qualified accounts, such as traditional Individual Retirement Accounts ("IRA") and employer sponsored retirement plan accounts, may allow tax deductible and/or pre-tax contributions (subject to certain limitations and restrictions). Other tax-qualified accounts, such as Roth IRAs and Coverdell Education Savings Accounts, may allow income tax free distributions, but only if certain conditions are satisfied.
Time Weighted Return (TWR): A return calculation that measures the investment performance of a portfolio over the reporting period. Time weighted returns do not include the impact of client contributions and withdrawals and therefore, may not reflect the actual rate of return the client received. Time weighted returns isolate investment actions and can be compared to benchmarks and used to evaluate the performance of a manager.
Total Return: The amount gained or lost on an investment, including capital appreciation and income, net of fees and other expenses such as brokerage commissions, account fees, investment advisory fees and fund expenses, over a particular period.