This communication is only intended for and will be only distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations.

There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. 

A separately managed account may not be suitable for all investors. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. A minimum asset level is required. For important information about the investment manager, please refer to Form ADV Part 2.

Any views and opinions provided are those of the portfolio management team and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

All information provided has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes.

RISK WARNINGS

There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this portfolio. Please be aware that this portfolio may be subject to certain additional risks. In general, equity securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, and market risks. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed countries. Fixed-income securities are subject to credit risk (the ability of an issuer to make timely payments of interest and principal) and interest-rate risk (fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates). In a rising interest-rate environment, bond prices may fall. In a declining interest-rate environment, the portfolio may generate less income. High yield securities (“junk bonds”) are lower rated securities that may have a higher degree of credit and liquidity risk. Mortgage- and asset-backed securities (MBS and ABS) are sensitive to early prepayment risk and a higher risk of default and may be hard to value and difficult to sell (liquidity risk). They are also subject to credit, market and interest rate risks. Certain U.S. government securities purchased by the Portfolio, such as those issued by Fannie Mae and Freddie Mac, are not backed by the full faith and credit of the United States. It is possible that these issuers will not have the funds to meet their payment obligations in the future. Sovereign debt securities are subject to default risk. Real estate investment trusts are subject to risks similar to those associated with the direct ownership of real estate and they are sensitive to such factors as management skills and changes in tax laws. Derivative instruments can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on the Portfolio’s performance. The use of leverage may increase volatility in the Portfolio. Restricted and illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk).

The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.

The Blended Benchmark, as of December 31, 2014, is a weighted average of 46% Russell 3000, 23% Barclays Capital Aggregate Bond Index, 19% MSCI EAFE ‐ GDP weighted Net, 5% JPM Global Bond x US Net, 3% MSCI EMF Net, 3% Citi 3‐Month T‐Bill, 1% JPM EMBI Global, with monthly rebalancing, which is for comparative purposes only. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Barclays Capital Aggregate Bond Index is a market capitalization‐weighted index, meaning the securities in the index are weighted according to the market size of each bond. It covers most investment grade U.S traded bonds and some foreign traded in the U.S. MSCI EAFE Index, GDP weighted (Net Return) is unmanaged gross domestic product‐weighted equity index comprising 21 of the 48 countries in the MSCI universe and representing the developed world outside of North America. Each MSCI country index is created separately then aggregated, without change, into regional MSCI indices. The JPM GBI Global Ex US Bond Index tracks total returns for traded global debt instruments in the developed markets. MSCI EMF Net is a free float‐adjusted market capitalization index that is designed to measure equity‐market performance in the global emerging markets. Citi 3‐Month T‐Bill measures monthly returns equivalents of yield averages that are not marked to market and consist of the last three three‐month Treasury bill issues. The JPM Emerging Markets Bond Index Global tracks total returns for traded external debt instruments in the emerging markets. The benchmark is used for comparative purposes only.

DEFINITIONS

Tracking error is the standard deviation of the difference between the portfolio and the benchmark returns. Volatility is a statistical measure of the dispersion of returns for a given security or market index.

OTHER CONSIDERATIONS

The information presented represents how the portfolio management team generally implements its investment process under normal market conditions.

Morgan Stanley is a full-service securities firm engaged in a wide range of financial services including, for example, securities trading and brokerage activities, investment banking, research and analysis, financing and financial-advisory services.