E5 • May 26, 2026 • 5 mins
Investors are balancing growth opportunities, income needs and liquidity considerations. In this episode of The Alts Report, Brian Holzer, Head of Alternative Investments Sales & Distribution, sits down with Troy Gayeski, Chief Market Strategist for Future Standard, to discuss alternative investments and the role they may play within diversified portfolios.
VIDEO TRANSCRIPT
[COLD OPEN]
TROY GAYESKI
There isn't an earnings problem in equities. We have great companies, particularly in the US. But valuations are extremely stretched. And so, whenever you start at such high valuations the question is how do you complement your large and mega cap tech in particular…
[CUT TO THE ALTS REPORT OPENING SEQUENCE]
[INTRO 0:30]
BRIAN HOLZER
Welcome to The Alts Report where we explore the value of Alternative Investments and the trends shaping today's markets. Today, I'm pleased to welcome Troy Gayeski, Chief Market Strategist for Future Standard to The Alts Report. Our topic today is implementing alternative investments in portfolios. Alternatives are diverse by design. Each asset class has its own characteristics and considerations. That is why it can be important to evaluate and select strategies that align with your long-term financial goals.
So, Troy, thanks for being with us today. Let's get started. Can you outline a few of the key challenges advisors and clients are facing in today's current market environment?
[1:10]
TROY GAYESKI
Yeah, we'd say there's three and I'll start with the newest one. It’s how do you help clients put these massive cash piles to work that have built up dramatically since the pandemic, where you're meaningfully increasing income and/or total return. You know, some strategies are total return, some are income…
BRIAN HOLZER
Sure.
[1:25]
TROY GAYESKI
…without taking uncomfortable levels of risk. So that would be challenge one.
You know, challenge two is there isn't an earnings problem in equities. We have great companies, particularly in the US. But valuations are extremely stretched. And so, whenever you start at such high valuations the question is how do you complement your large and mega cap tech in particular.
TROY GAYESKI
But also US equity exposure hopefully taking less risk and not leaving too much money on the table. And then the third, you know, it's really been with us since 17 or 18 is how do you complement or replace fixed income to have more income with less volatility? And I'd say the challenge is as acute today as it was in 2020 and 21 before the Fed hiked. So cash replacement or complement, equity complement or replacement, and fixed income complement or replacement.
[2:15]
BRIAN HOLZER
So as, as somebody that spends a lot of time with advisors and clients, right, as you are talking to them about implementing alternatives, what are some of the common pushbacks or apprehension that advisors or clients have?
TROY GAYESKI
In the middle market, capital activity has been much more profound and pronounced exiting via strategic acquisitions or exiting via larger sponsor acquisitions.
[2:38]
In commercial real estate, it's no surprise we just went through a bear market. So you can understand why clients and advisors aren't in a rush to allocate there, but as we've bottomed, we've started to see a meaningful pickup in positive net inflows again, which is logical given that all of these asset classes have to go through a bottoming process. And, we're really optimistic about the forward returns in the forward flow there.
[3:00]
BRIAN HOLZER
So, last question. So for advisors and clients that are watching this that have not invested in alternatives before, how do you think about implementation? Where should they consider starting by asset class, by structure?
TROY GAYESKI
Yeah. Great question. So for those that have not been big users of alternatives historically, you know, typically one of the first ways to get clients invested is that cash or fixed income replacement substitute. Everyone likes income. Everyone likes to see the income go up meaningfully. And no one wants to take material downside risk. So that that would be one.
[3:30]
Another way is, if you're starting in alternatives, you more than likely at this stage of the game want to utilize an evergreen vehicle because yes, you are sacrificing some degree of liquidity. You have monthly subscriptions, typically quarterly redemptions with tendering limitations, but you're not locking up your money for seven, 10 or 12 years.
[3:50]
BRIAN HOLZER
Yeah, and I think we're even seeing that across our platform, right? Folks starting with evergreen funds building the core. And then for clients that can accept a degree of illiquidity, right? Satelliting drawdown funds around that. So I think that, that makes a lot of sense. So Troy, that was great.
[4:05]
[CLOSING]
Thanks for joining us. We appreciate you all joining us for this edition of The Alts Report. To learn more about Alternative Investments and our platform at Morgan Stanley, please visit ms.com/alts or reach out to your Morgan Stanley Financial Advisor or Private Wealth Advisor. We look forward to seeing you next time.
==
VIDEO DISCLOSURES
Morgan Stanley Smith Barney LLC ("Morgan Stanley Wealth Management") - IMPORTANT DISCLOSURES
Morgan Stanley Wealth Management acts as a placement agent in connection with the offering and sale of the securities of the fund to current and prospective clients of Morgan Stanley Wealth Management or its affiliates. Morgan Stanley Wealth Management will receive cash compensation for its activities as placement agent from the fund’s manager, as described in Morgan Stanley Wealth Management’s point of sale letter, if applicable. In addition, Morgan Stanley Wealth Management, its affiliates or employees, may have additional relationships with the fund’s manager, including as an investor in the fund or other investment vehicles managed by the fund’s manager or as a client of the fund’s manager. The payment of cash compensation to Morgan Stanley Wealth Management, and any additional relationships that Morgan Stanley Wealth Management or its affiliates may have with the fund’s manager or other investment vehicles managed by the fund’s manager, create material conflicts of interest for Morgan Stanley Wealth Management in its role as placement agent.
All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley Wealth Management has not considered the actual or desired investment objectives, goals, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance.
As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management’s interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund.
Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice.
Morgan Stanley Wealth Management is a business of Morgan Stanley Smith Barney LLC.
© 2026 Morgan Stanley Smith Barney LLC. Member SIPC. Alternative investment securities discussed herein are not covered by the protections provided by the Securities Investor Protection Corporation, unless such securities are registered under the Securities Act of 1933, as amended, and are held in a Morgan Stanley Wealth Management Individual Retirement Account.
CRC 5505781 05/26
E4 • April 20, 2026 • 8 mins
Brian Holzer, Head of Alternative Investments Sales & Distribution, sits down with Alison Nest, Head of Investment Solutions Product, to explore how alternatives can complement a traditional 60/40 portfolio – offering diversification, income potential and differentiated sources of return. They unpack the forces driving increased adoption of alternatives and how Morgan Stanley Wealth Management is expanding access to these strategies for a wider range of investors.
THE ALTS REPORT - WITH BRIAN HOLZER & ALI NEST (TRANSCRIPT)
00:00:00:00 - 00:00:22:16
BRIAN HOLZER
Welcome to The Alts Report, where we explore the value of alternative investments and the trends shaping today's markets. Today, I'm pleased to welcome, Ali Nest, Head of Investment Solutions Products for Morgan Stanley Wealth Management. Over the past few years, we have seen increased adoption of alternative investments from high net worth investors.
00:00:22:19 - 00:00:43:22
This is a trend we do not expect to slow down. In fact, a recent industry study indicates alternative investments assets under management globally is expected to more than double from here over the next decade, with high net worth clients being the fastest growing segment in terms of both adoption and increasing their allocation.. So, Ali, thanks for joining us. Let's jump right in. Let's start with what are alternative investments and what role can potentially play in client portfolios?
00:01:05:05 - 00:01:35:03
ALI NEST
Thanks, Brian. Absolutely thrilled to be here today. So alternative investments include private equity, private credit, real estate, infrastructure, hedge funds, essentially everything beyond traditional stocks and bonds. Alternatives are not tied to market movements, offering unique investing opportunities, particularly during periods of market stress. They offer eligible clients an opportunity for diversification and risk adjusted returns that can help enhance the performance of a traditional equity bond portfolio.
00:01:35:05 - 00:02:11:04
Given their versatility, they can align with different financial goals. For example, portfolio diversification. As mentioned earlier, alternatives are not directly tied to market movements and aim to maintain low correlations to traditional equity markets. They can help counterbalance and reduce overall portfolio volatility. Next is growth oriented alternatives. These solutions focus on generating excess returns and wealth accumulation, often leveraging the illiquidity premium of private markets through such strategies as venture capital and leveraged buyouts.
00:02:11:07 - 00:02:37:14
Next income generation strategies. These seek higher yields and lower volatility compared with traditional fixed income investments, helping to provide current income streams and inflation hedging through such products as non-traded REITs and private credit strategies. The last one I’d touch on is tax advantaged alternatives. These are designed to alleviate tax liabilities and offer benefits such as deferred capital gains.
00:02:37:16 - 00:02:54:10
For example, we offer equity exchange funds that can help mitigate concentrated stock positions. And given these many advantages, Morgan Stanley Wealth Management’s Global Investment Committee recommends that alternatives constitute as much as 25% of a client's investment portfolio.
00:02:54:15 - 00:03:10:10
BRIAN HOLZER
So, clearly not a homogenous asset class or a one size fits all approach. Next question, in my-in my opening, I mentioned we are seeing increased adoption in high net worth portfolios within alternatives. Can you maybe expand on that and why you think that is?
00:03:10:11- 00:03:32:02
ALI NEST
Yeah, absolutely. So in today's clearly dynamic market environment, clients are increasingly aware that relying solely on public markets can mean missing significant opportunities. Reflecting this, Morgan Stanley Wealth Management is seeing impressive growth with over 250 billion in client AUM invest in alternatives, making us the largest alternatives provider on the street.
00:03:32:27 - 00:04:01:00
And I'd say there's three main factors driving this demand. First, recent market volatility has clearly exposed the increased correlation between stocks and bonds and the limits of traditional 60/40 portfolios. Second, a growing portion of the economy is shifting to private hands, and our clients are demanding access. Today, there’s one third fewer public companies than 20 years ago.
00:04:01:03 - 00:04:29:08
Companies are staying private for twice as long as they did in the past. In fact, 80% of companies that generate at least 100 million in revenue are now private. Within the credit space, bank participation as a primary lender has dropped by 60% since the mid 70s. And as for real estate, 94% is privately owned.
00:04:29:11 - 00:04:46:19
innovative structures and all the product proliferation that has been coming to the market, like registered vehicles and evergreen funds, have made alternatives more accessible with better liquidity, lower minimums, simplified reporting, streamlined tax reporting and alike.
00:04:47:07 - 00:04:58:02
BRIAN HOLZER
You touched on it briefly in your prior comments just around the platform. Maybe spend a bit of time on just, how is Morgan Stanley making alternative investments available for clients?
00:04:58:01 - 00:05:23:19
ALI NEST
Excellent question. So as an innovator and leader in alternatives, Morgan Stanley continues to focus on delivering exclusive opportunities to clients while improving access, ease of use, and liquidity across its platform. We have 300 professionals dedicated to the alternative investments business and a 45 year history of success.
00:05:23:22 - 00:05:51:13
It's a highly selective process, and each fund must pass a rigorous due diligence process. Moreover, because of the size and scale of Morgan Stanley's alternatives platform, we're able to negotiate hard on behalf of our clients. Last year, 80% of the funds we offered were exclusive first look or at improved economics. Today, we offer a menu of about 220 third party and proprietary funds across each of the different alternative asset classes.
00:05:51:20 - 00:06:15:06
And this helps us ensure that we meet the comprehensive needs of all of our clients. But really, it's not just about volume. It's about access to top tier managers who choose to work with us because of our network, quality, and platform. We're the partner of choice for the leading alternative investment managers. It's true, and it's actually very powerful. In alternatives, access and quality are everything.
00:06:15:18 - 00:06:25:07
BRIAN HOLZER
So, Ali, final question, a few of the viewers may not have made an investment in alternative investments before. Are there any considerations they should keep in mind? [FL1]
00:06:25:19 - 00:07:07:20
ALI NEST
Really important and excellent question, Brian. So, as mentioned, alternatives can add significant benefits to a portfolio. However, these products are complex. While evaluating potential return and risk is essential, so too are considerations like tax efficiency, liquidity needs, and personal preferences. Morgan Stanley's financial advisors can play a crucial role in offering insights and guidance on how alternative investments can be integrated into clients financial strategies. They can assist in navigating a complex, yet potentially rewarding asset landscape. When thoughtfully integrated, alternative investments can broaden diversification, offer exposure to differentiated strategies, and help strengthen a portfolio's long term potential.
00:07:07:26 - 00:07:32:03
BRIAN HOLZER
Ali, thank you. Great to, great to have you on, and we appreciate you all joining us for this edition of The Alts Report. To learn more about Alternative Investments and our platform at Morgan Stanley, please visit ms.com/alts or reach out to your Morgan Stanley financial advisor or private wealth advisor. We look forward to seeing you next time.
Morgan Stanley Smith Barney LLC ("Morgan Stanley Wealth Management") - IMPORTANT DISCLOSURES
Morgan Stanley Wealth Management acts as a placement agent in connection with the offering and sale of the securities of the fund to current and prospective clients of Morgan Stanley Wealth Management or its affiliates. Morgan Stanley Wealth Management will receive cash compensation for its activities as placement agent from the fund’s manager, as described in Morgan Stanley Wealth Management’s point of sale letter, if applicable. In addition, Morgan Stanley Wealth Management, its affiliates or employees, may have additional relationships with the fund’s manager, including as an investor in the fund or other investment vehicles managed by the fund’s manager or as a client of the fund’s manager. The payment of cash compensation to Morgan Stanley Wealth Management, and any additional relationships that Morgan Stanley Wealth Management or its affiliates may have with the fund’s manager or other investment vehicles managed by the fund’s manager, create material conflicts of interest for Morgan Stanley Wealth Management in its role as placement agent.
All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley Wealth Management has not considered the actual or desired investment objectives, goals, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance.
As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management’s interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund.
Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice.
Morgan Stanley Wealth Management is a business of Morgan Stanley Smith Barney LLC.
Diversification does not guarantee a profit or protect against loss in a declining financial market
© 2026 Morgan Stanley Smith Barney LLC. Member SIPC. Alternative investment securities discussed herein are not covered by the protections provided by the Securities Investor Protection Corporation, unless such securities are registered under the Securities Act of 1933, as amended, and are held in a Morgan Stanley Wealth Management Individual Retirement Account.
CRC 5331396 04/2026
Morgan Stanley Wealth Management offers qualified investors a full suite of alternative investments across various asset classes. Reach out to your Morgan Stanley Financial Advisor or Private Wealth Advisor to learn how alternative investments may strengthen your portfolio and help meet your financial goals.
Disclosures
Morgan Stanley Smith Barney LLC (“Morgan Stanley Wealth Management”) - IMPORTANT DISCLOSURES LLC
Morgan Stanley Wealth Management acts as a placement agent in connection with the offering and sale of the securities of the Fund to current and prospective clients of Morgan Stanley Wealth Management or its affiliates. Morgan Stanley Wealth Management will receive cash compensation for its activities as placement agent from the Fund’s manager, as described in Morgan Stanley Wealth Management’s point of sale letter, if applicable. In addition, Morgan Stanley Wealth Management, its affiliates or employees, may have additional relationships with the Fund’s manager, including as an investor in the Fund or other investment vehicles managed by the Fund’s manager or as a client of the Fund’s manager. The payment of cash compensation to Morgan Stanley Wealth Management, and any additional relationships that Morgan Stanley Wealth Management or its affiliates may have with the Fund’s manager or other investment vehicles managed by the Fund’s manager, create material conflicts of interest for Morgan Stanley Wealth Management in its role as placement agent.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley Wealth Management has not considered the actual or desired investment objectives, goals, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:
• 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 a fund;
• Volatility of returns
• Restrictions on transferring interests in a fund;
• Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized;
• Absence of information regarding valuations and pricing;
• Complex tax structures and delays in tax reporting;
• Less regulation and higher fees than mutual funds;
• Risks associated with the operations, personnel, and processes of the manager; and
• Risks associated with cybersecurity.
As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management’s interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund.
As part of the Morgan Stanley Private Markets – Access program, Morgan Stanley will be limited solely to a role as an introducer and will not be serving as a placement agent or adviser. Eligible investors must enroll in the program in order to see any investment opportunities. Investments require independent evaluation, due diligence, review & analysis. Neither Morgan Stanley nor any of its affiliates is making any recommendation to purchase or take any action of any sort and is not providing any advice on investments. Investors are asked to work directly with the issuer/sponsor and with your own independent (non-Morgan Stanley) financial, legal, accounting, tax, and other professional advisors to evaluate the investment opportunity.
Investors are responsible for complying with the terms of any applicable exemption from securities law requirements and any potential Private Company issuer restrictions for any sale of Private Company shares, and you must obtain your own legal counsel to advise you in connection with such requirements and Private Company issuer restrictions. You should consult with your third-party advisors regarding the risks of transacting in Private Company shares, including the risk of transacting in a market with little or no price transparency or liquidity. Morgan Stanley provides no opinion or view on the valuation of any Private Company shares, or the sufficiency, fairness or competitiveness of any price obtained. Private Securities do not trade on any national securities exchange and, as such, any potential liquidity (i.e., the potential for any buying interest that might satisfy your sell interest) in such Private Company shares is very limited.
Investments of this nature include a high degree of risk, likely will be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Investors could lose all or a substantial amount of their investment. Investments are appropriate only for eligible investors who are willing to put capital at risk for an indefinite period of time.
Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market.
As a diversified global financial services firm, Morgan Stanley engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley therefore engages in activities where Morgan Stanley interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management.
This is not a "research report" as defined by FINRA Rule 2241 or a "debt research report" as defined by FINRA Rule 2242 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or Morgan Stanley & Co. LLC or its affiliates. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice.
Interests in alternative investment products are only made available pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Wealth Management and certain of its affiliates, and (1) are not FDIC-insured, (2) are not deposits or other obligations of Morgan Stanley Wealth Management or any of its affiliates, (3) are not guaranteed by Morgan Stanley Wealth Management and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Wealth Management is a registered broker-dealer, not a bank.
Morgan Stanley Wealth Management is a business of Morgan Stanley Smith Barney LLC.
Environmental, Social and Governance (“ESG”) investments in a portfolio 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 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. Certain issuers of investments may have differing and inconsistent views concerning ESG criteria where the ESG claims made in offering documents or other literature may overstate ESG impact. ESG designations are as of the date of this material, and no assurance is provided that the underlying assets have maintained or will maintain and such designation or any stated ESG compliance. As a result, it is difficult to compare ESG investment products or to evaluate an ESG investment product in comparison to one that does not focus on ESG. Investors should also independently consider whether the ESG investment product meets their own ESG objectives or criteria.
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.
© 2026 Morgan Stanley Smith Barney LLC. Member SIPC. Alternative investment securities discussed herein are not covered by the protections provided by the Securities Investor Protection Corporation, unless such securities are registered under the Securities Act of 1933, as amended, and are held in a Morgan Stanley Wealth Management Individual Retirement Account.
CRC# 5374098 (04/2026)
