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Traditional Investment Products Investment Strategies to Meet Your Unique Objectives

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Traditional Investment ProductsInvestment Strategies to Meet Your Unique Objectives

Our Commitment to Investment ExcellenceWith a robust combination of global resources and capabilities, Morgan Stanley offers expert, strategic advice and a diverse portfolio of investment opportunities. We apply innovative strategies, guidance from among the best minds in the industry and rigorous due diligence to help you select the traditional investment products that meet your unique needs and objectives.

With approximately $2 trillion in client assets and nearly 16,000 Financial Advisors, Morgan Stanley Wealth Management is a global leader, providing access to a wide range of products and services.1 1 Source: Morgan Stanley Third Quarter 2015 Earnings Report (10/19/15).

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IntrOduCIng MOrgan StanlEy tradItIOnal InvEStMEnt PrOduCtS / P2 /

Industry-LeadIng Manager duE dIlIgEnCE / P4 /

StratEgIC aSSEt allOCatIOn / P6 /

tradItIOnal InvEStMEnt PrOduCtS / P8 /

–Mutual Funds / P8 /

–Exchange-Traded Funds (ETFs) / P10 /

–Closed-End Funds / P12 /

–Unit Investment Trusts (UITs) / P14 /

529 COllEgE SavIngS PlanS and OthEr tyPES Of aCCOuntS / P16 /

thE valuE Of advICE / P18 /

lEvEragE a lEadEr In WEalth ManagEMEnt / P2o /

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Introducing Morgan Stanley Traditional Investment ProductsMorgan Stanley is an industry leader in traditional investment products, combining market and investor insight with a global presence and analytical rigor. Our clients benefit from a comprehensive suite of products that encompasses both proprietary and third-party managers.

We put our investment expertise to work for you, with:

a ChOICE Of InvEStMEnt BrOKEragE Or InvEStMEnt advISOry services to suit your individual needs — from mutual funds to unit investment trusts to fee-based separately managed accounts.

Industry-LeadIng Manager anaLysIs of more than 1,300 strategies yearly and over 300 premier investment managers that meet the rigorous standards required for inclusion on our advisory platforms.2

thOught lEadErShIP led by the Morgan Stanley Wealth Management Global Investment Committee (GIC), a group of seasoned investment professionals who meet regularly to discuss the dynamic global economy and markets. The Committee determines the investment outlook that guidesthefirm’sassetallocationadvicetoclients.

2 Source: Morgan Stanley Global Investment Manager Analysis as of May 2015.3 Note: Some ETFs may be actively managed.

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exchange-traded Funds

Exchange-traded funds (ETFs) are investment vehicles designed to track the daily movement of a market index or other benchmark.3

Types of Traditional Investment Products

cLosed-end Funds

Closed-end funds — a type of mutual fund — is a publicly traded investment company thatraisesafixedamountofcapital via an initial public offering. The fund is listed and traded like an equity security on the stock exchange.

unIt InvEStMEnt truStS

Unit investment trusts (UITs) offer access to a static and transparent portfolio of stocks, bonds or other securities with one low minimum purchase.

Mutual fundS

Mutual funds are invest-ment companies that invest in stocks, bonds, money market instruments and other assets.

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Industry-Leading Manager Due DiligenceWith a long history of delivering investment manager analysis, Morgan Stanley has one of the most compre-hensive manager-selection due diligence teams in the industry. Our Global Investment Manager Analysis (GIMA) team — which includes 30 investment analysts dedicated to traditional investment products — reviews and monitors the broad universe of investment prod-ucts we make available to our advisor platform clients. With the ability to leverage the insights of the firm’s Global Investment Committee and the resources of Morgan Stanley & Co.’s Global Research organization with over 400 analysts, GIMA centralizes due diligence and applies a patented ranking process to identify strong managers.

A Comprehensive Process for Manager Analysis4

ExtEnSIvE unIvErSEEngage with a broad array of investment managers from both large and boutique firms.Fromauniverseofover14,000options(sepa-rately managed accounts, mutual funds and ETFs), the universe is narrowed down to approximately 1,300 investment strategies from over300investmentfirms.

rIgOrOuS analySISourthoroughprocessincludes a detailed review ofafirmanditsinvestmentcapabilities and resources, investment process and philosophy, personnel and business structure. Alterna-tive strategies include an op-erational risk review which evaluatesafirm’sbusinessprocesses, infrastructure and controls.

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4 All information as of May 2015 and subject to change.

A Comprehensive Process for Manager Analysis4

StrOng gOvErnanCEGIMA adheres to a formal governance process on all investment decisions for all products that are made available on the advisory platform. Decisions are highly governed by an experienced, eight-member committee, which meets at least twice weekly to review each investment decision.

lIBrary Of analySISThe team maintains an extensive library of writ-ten manager analysis that is available to Financial Advi-sors and clients.

OngOIng MOnItOrIngInvestment products undergo continual review. In addition, the team contin-ues to have multiple points of contact with investment managers, at periodic inter-vals,toreaffirmconviction in the manager.

PatEntEd MEthOdOlOgyThe team developed and implemented the proprietary Adverse Active Alphasm screening and scoring methodology into the overall manager selection process to improve our odds of adding alpha to client portfolios. This patented screening and scoring tool helps identify products with characteristics that may lead to future outperformance relative to indexes and peers.

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Strategic Asset Allocation The Morgan Stanley Wealth Management Global Investment Committee meets regularly to assess the global economy and markets. The Committee continually monitors developing economic and market conditions, reviews tactical outlooks and recommends model portfolio weightings. Based on their in-depth analysis, they select the investment outlook that helps guide our strategic asset allocation advice to clients based on their risk tolerance and net worth.

I As of January 22, 2016. Strategic asset allocation models depicted are based on Model 3, known as the Balanced Growth Model, which has a moderate risk/return profile. Please note there are five asset allocation models ranging from conservative to aggres-sive (Capital Preservation, Income, Balanced Growth, Market Growth and Opportunistic Growth). The asset allocation models are subject to change from time to time. Please ask your Financial Advisor or Private Wealth Advisor for the most current allocation models. The GIC defines alternative investments as the following: REITS, Commodities, Master Limited Partnerships, Hedged Strategies (which include Traditional and 40 Act Alternative Investments including: Hedge Funds, Fund of Funds, Alternative Mutual Funds), Managed Futures, Private Real Estate and Private Equity. For illustrative pur-poses only. This does not represent individually tailored investment advice. Actual client portfolio will vary based on individual circumstances.

<$25Min Investable assets

>$25Min Investable assets

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Global Investment Committee Strategic Asset AllocationsI

14%alternatives

52%Equities

29%fixed Income

5%ultrashort fixed Income

20%alternatives

46%Equities

29%fixed Income

5%ultrashort fixed Income

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Mutual FundsWith relatively low account minimums and an extensive range of investment strategies, mutual funds provide a convenient and relatively low-cost approach to building a diversified portfolio.

Mutual funds offer an efficient and affordable way to gain exposure to various asset classes, investment styles and regions. They are well-suited for use as either core or complementary investments in constructing a balanced portfolio to pursue specific investment objectives.

Characteristics•Investmentfocusdefinedbyassetclass,objective,investment

style, geography, market capitalization, sector/industry or other characteristics.8

•Can either be actively managed or indexed.9

Benefits10

dIvErSIfICatIOn11: Mutual funds enable investment in many different securities, within and across asset classes that might otherwise be out of reach due to minimum account sizes, high costsorboth.Diversificationalsohelpstooffsetrisk.

PrOfESSIOnal MOnEy ManagEMEnt: Mutual funds provide full-time investment management expertise and recordkeep-ing services.affOrdaBIlIty: Minimum investment requirements on some funds are set low enough as to be accessible to a wide array of investors.

dIvIdEnd rEInvEStMEnt: Dividends and interest income from the fund may be used to purchase additional shares.

lIquIdIty: Shares can be redeemed at the closing net asset value12 on any day that the markets are open, but may be subject to deferred sales charges or redemption fees.

accessMorgan Stanley provides access to more than 3,000 different mutualfundstrategies,offeredbymorethan200affiliatedandnonaffiliatedfundfamilies.13

8 Source: Investment Company Institute (ICI), 2015. 9 Index funds are a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor’s 500 Index (S&P 500).10 Source: The Mutual Fund Education Alliance (mfea.com) and the U.S. Securities and Exchange Commission (sec.gov), 2015.11 Diversification does not assure a profit or protect against loss. Please see the disclosures at the end of this brochure for information about the risks associated with mutual fund investing.12 The net asset value (NAV) of a mutual fund is calculated daily by deducting the fund’s liabilities from the market value of all of its shares and then dividing by the number of issued shares. Open-end mutual funds generally must calcu-late their NAV every business day, typically after the major U.S. exchanges close.13 As of September 2015.

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• dIvErSIfICatIOn

Mutual Funds Benefits

• PrOfESSIOnal MOnEy ManagEMEnt

• affOrdaBIlIty

• dIvIdEnd rEInvEStMEnt

• lIquIdIty

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Exchange-Traded FundsExchange Traded Funds (ETFs) offer a quick, easy way for investors to gain exposure to a specific economic sector or investment style.

ETFs enable you to remain invested in the market without having to pick specific stocks. ETFs are also easy to trade, so ETF-based assets can be reallocated into other suitable investments as market opportunities arise.

Characteristics•Trade on the same exchanges as equity securities.

•Investmentfocusdefinedbyeconomicsector or investment style.

•Designed to track indexes and are typically passively managed.

BenefitsdIvErSIfICatIOn5: Enable investment in asset classes, such as fixedincome,equitiesandcommoditiesthatmightotherwisebeout of reach due to minimum account sizes, high costs or both.

rISK ManagEMEnt: Generally low tracking error (the difference intotalreturnbetweenanETF’snetassetvalueanditsunderly-ing index) allows investors and their Financial Advisors to closely monitor and manage overall portfolio risk.

lOWEr COStS: Duetotheiradministrativeefficienciesandfre-quently passive structure, ETF fees and expenses (or, the expense ratio) tend to be lower than comparable investment products.

tax EffICIEnCy6: Taxable gains or losses are realized only when fund shares are sold, and the in-kind ETF creation and redemption mechanisms minimizes taxable events within the fund.

lIquIdIty: Trade throughout the day on securities exchanges at market prices, with creation and redemption mechanisms that adjust to maintain appropriate liquidity.

tranSParEnCy: Security selection generally adheres to the index tracked, so the fund will not deviate from its stated objec-tive. In addition, ETF portfolio holdings are published daily.

StratEgIC BEta: ETFs may provide exposure to strategic beta (often called smart beta), which are indexes that aim to enhance returns or minimize risk relative to a traditional market-capitaliza-tion-weighted benchmark.

accessMorganStanleycurrentlyoffers1,085ETFsfrom34ETFproviders.

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5 Diversification does not assure a profit or protect against loss. Please see the Important Disclosures at the end of this brochure for information about the risks associated with exchange-traded fund investing.6 Note: Not all ETFs are settled in-kind; sometimes they are cash settlements.7 Source: Morgan Stanley Research, December 2014.

2002 2004 2006 2008 2010 2012 20140

200

400

600

800

1,000

1,200

1,400

1,600

1,800

$2,000 Billion

Dramatic Increase in Number of ETFs — And Assets Invested in Them7

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Closed-End FundsClosed-end funds (CEFs) offer investors attractive income opportunities in an exchange-traded, actively-managed mutual fund structure. A unique asset class, these funds are first offered to investors through an initial public offering (IPO) and then subsequently closed to new capital but available for purchase on the secondary market via the exchange.

CEFs can play an important role in a diversified, long-term invest-ment strategy. CEFs offer investors the potential for generating capital growth and income through investment performance, divi-dends and distributions. Moreover, the manner in which they trade may present the opportunity to purchase shares at a discount to thevalueofthefund’sassets.

Characteristics•Issuesafixednumberofshares,whicharepurchasedlikeastock.

•Activelymanagedbyafundmanageraccordingtothefund’sinvestment objective.

•Workingwithafixedpoolofinvestmentdollarsenablesfundmanagers to maintain control of buy/sell approaches.

BenefitsEffICIEnCy: Sincetheydonotneedtomanageinflowandoutflowsofassets,closed-endfundscangenerallyremainfullyinvested at all times.

aBIlIty tO lEvEragE: Many CEFs may issue senior securities or bor-row money to “leverage” their investment position. This strategy gives these CEFs the potential to enhance yield and to offer higher levels of current income in comparison to most open-end funds, but also in-creasesthefund’sportfoliovolatility,whichmayleadtogreaterlosses.

PrEMIuMS and dISCOuntS: Atanygivenpointintime,aCEF’sshare price may be above (selling at premium) or below (sell-ing at a discount) its underlying net asset value (NAV). It may be advantageous to purchase a fund when it is trading at a discount to its NAV, as the yield on the stock price will be higher than that on the NAV of the portfolio.

lIquIdIty: Listingonamajorexchangeprovidesthebenefitofliquidity and the convenience of being able to track an investment using its assigned ticker symbol.

lOWEr ExPEnSE ratIO: As CEFs trade on an exchange with a fixednumberofshares,therearenoongoingcostsassociatedwithdistributing those shares. Because of this, CEFs may have lower expenseratios,whichcanhelpbenefitinvestmentperformance.

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InCOME POtEntIal: Most CEFs distribute income on a monthly or quarterly basis. Investors generally have the option of receiv-ing distributions in cash or reinvesting dividends. By automatically reinvesting dividends, investors purchase additional fund shares on an ongoing basis, and have the advantage of compounding returns as invested capital.

accessMorganStanleyprovidesaccesstomorethan550differentCEFson the secondary market and certain new issue CEF initial offer-ings, offered by more than 100 fund companies.14

14 As of June 2015.

cLosed-end Funds open-end Funds

• Fixednumberofshares

• Generallyremainfullyinvestedatalltimes

• Abilitytopurchasesharesthroughoutthetradingdayat the current market price

• Noongoingcostsassociatedwithdistributingshares

• Portfolioinformationnotalwaysavailable

• offernewsharesonanongoingbasistonewinvestors

• Mustmanagecontinuouscashflowsandbepreparedfor daily liquidity

• AbilitytopurchasesharesattheNAVcalculatedattheclose of the trading day

•ongoingcostsassociatedwithdistributingnewshares

• Managersarerequiredtoperiodicallyreporttheircosts and portfolio holdings

Closed-End vs. Open-End Funds

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Unit Investment TrustsInvesting in unit investment trusts (UITs) is an efficient way to gain exposure to a diversified portfolio of securities — all conve-niently packaged within one investment.

UITs provide an attractive opportunity for investors to access equi-ties, bonds or a combination of asset classes via a low-minimum, liquid investment. Since portfolios are defined and generally do not change for the term of the trust, they offer a disciplined, trans-parent approach to investing. Whether your investment objective is growth or income, UITs offer a range of features and benefits that may complement your existing portfolio.

Characteristics•Maybeafixedportfolioofbondswithspecificmaturitydates,

a portfolio of income-producing or growth stocks, a portfolio of all securities included in a particular index or a portfolio that followsaspecificselectionmethodology.15

•Generallycategorizedintothreemaintypes—equity,tax-freefixedincomeandtaxablefixedincome—butcanbefurtherdiversifiedacross asset class, geographic region, investment style and industry.

•Passivelymanagedandhaveamandatoryterminationdate.

BenefitsdIvErSIfICatIOn: Each UIT is a professionally selected portfolio of securities with limited cash positions, so more of your money is invested in the market to take advantage of any potential market gains.

InCOME: Depending on the type of trust and its distribution options, UITs may provide monthly, quarterly, semiannual or annual income.

flExIBIlIty: At maturity, investors may roll over into a new UIT series at a reduced sales charge, invest in a different UIT or receiveacashdistributionofthetrust’sproceeds.

lIquIdIty: Units can be redeemed at the closing net asset value on any day that the markets are open, but may be subject to deferred sales charges — similar to a mutual fund.16

lOWEr ExPEnSE ratIO: Since investments held within a UIT are not frequently traded, they typically have lower fund management expenses than similarly focused, actively managed mutual funds.17

tranSParEnCy: ThediversifiedholdingsofaUITgenerally remainfixed,soinvestorsandtheirFinancialAdvisorsalwaysknowtheinvestmentsheldwithinit.Definedtrustlifeanda known maturity date can help provide a more dependable investment time horizon.

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aCtIOnaBlE rESEarCh: UITs are an effective and oftentimes exclusive tool for implementing the securities recommendations found in Morgan Stanley Research reports.

accessMorgan Stanley is the largest distributor of UITs, providing access to its own proprietary UITs and more than 300 offerings through several primary sponsors18: •Advisors Asset Management

•FirstTrustPortfoliosLP

•Guggenheim Funds

•Incapital

•Invesco

•Morgan Stanley Global Investment Solutions

•Eaton Vance

Global Investment Solutions is MorganStanley’sproprietaryUITplatform (GIS UIT). Drawing upon the collective resources of the firm—top-flightresearch,globalrelationships, innovative invest-ment strategies and advanced risk management — the GIS UIT platform develops products that seek to capitalize on some of the world’sbestinvestmentideas.

15 It is not possible to directly invest in an index.16 The net asset value (NAV) of a UIT is calculated daily by deducting the UIT’s liabilities from the market value of all of its units and then dividing by the number of issued units. UITs generally must calculate their NAV every business day, typically after the major U.S. exchanges close.17 Refer to the respective UIT prospectus for details on up-front and deferred sales charges. Investors may be eligible for break-point pricing depending on the dollar amount of their investment. 18 As of April 2015.

How Traditional Investment Products Can Fit Into Your PortfolioTraditional investment products can be used within many different types of accounts, including but not limited to:

529 COllEgE SavIngS PlanS

529 college savings plans have revolutionized the way investors save for college by offering significant tax benefits, flexibility, control and high maximum contribution limits. Funds invested in 529 college savings plans accumulate free of federal taxes, and as long as funds are used for qualified college expenses, withdrawals are also tax-free. Although most 529 col-lege savings plans are used to fund higher education for children, they can be used for anyone with college funding needs, including professionals who are re-turning to school to advance their careers and retirees who want to pursue lifelong learning.

529 College Savings Plans Offer

• TAx ADvANTAGES

• HIGH CONTRIBUTION LIMITS

• FLExIBILITY

• ACCOUNT OWNER CONTROL

SEParatEly ManagEd aCCOuntS

The separately managed account programs offered by Consulting Group, the investment advisory arm of Morgan Stanley, typically consist of a portfolio of stocks, bonds or other assets managed on your behalf by a professional portfolio manager and closely matched to your specific financial goals and risk tolerance.

IndIvIdual rEtIrEMEnt aCCOuntS (Iras)

An Individual Retirement Account (IRA) is a powerful savings vehicle that can help you meet your retire-ment planning goals. Whether you choose a Traditional or Roth IRA, the potential for tax-deferred growth of your IRA funds may help you save more, on an after-tax basis, than the same amount of funds in an account that generates taxable income each year.

advISOry aCCOuntS

Advisory accounts allow you to leverage the extensive resources, global reach and highly-trained Financial Advisors of Morgan Stanley to invest in equities, bonds, open- and closed-end mutual funds, exchange-traded funds, separately managed accounts (SMAs) and cash. In nondiscretionary advisory ac-counts, you retain full decision-making authority over your investment selections. In discretionary advisory accounts, investment decisions are made by either third-party money managers, your Financial Advisor, or Morgan Stanley based on your stated investment objectives. For all types of advisory accounts, your Financial Advisor delivers a full suite of services, includ-ing investment advice, trade execution and reporting.

The value of AdviceMaking sound investment decisions can often be a difficult and challeng-ing process. Allocating a portfolio that incorporates a mix of traditional investment products, carefully balanced to meet your special needs, requires an extra level of care. Working with your Financial Advisor enables you to make your own investment choices with the guidance of an experienced professional who is familiar with your goals, time horizon, risk tolerance, taxes and cash flow needs.

Perhapsevenmoreimportant,your Financial Advisor can help you avoid emotional and behavior blind spots that may lead to investment mistakes. These include overconfi-dence, panic selling, loss aversion and taking an incomplete measure of your full financial picture when making decisions. Investors often mistakenly lead with their hearts, which can give

rise to the tendency to pull money out of the market when prices are relatively low and put money into the market when prices are relatively high. To see this “buy high-sell low” behavior in action, consider the chart, which shows how net inflows to equity funds have historically risen when returns rose, while net outflows occurred when returns fell.

-1.00

-0.75

-0.50

-0.25

0.00

0.25

0.50

0.75

1.00Percentage of Total Net Assets Percent

2000 2002 2004 2006 2008 2010 2012 2014

Net new cash flow I

Total returnII

-60

-40

-20

0

20

40

60

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Net New Cash Flow to Equity Funds Is Related to World Equity ReturnsMonthly, 2000–2014

I Net new cash flow is the percentage of previous month-end equity fund assets, plotted as a six-month moving average.II The total return on equities is measured as the year-over-year percentage change in the MSCI All Country World Daily Total Return Index.Sources: Investment Company Institute and Morgan Stanley Capital International.

-1.00

-0.75

-0.50

-0.25

0.00

0.25

0.50

0.75

1.00Percentage of Total Net Assets Percent

2000 2002 2004 2006 2008 2010 2012 2014

Net new cash flow I

Total returnII

-60

-40

-20

0

20

40

60

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Leverage a Leader in Wealth ManagementIn today’s complex and volatile financial markets, traditional investment products remain a critical component of your wealth management strategy. As the foundation of a balanced portfolio, traditional investment products help you manage risk and reach your long-term goals by increasing diversification, flexibility and transparency.

To learn more about our traditional investment products, and to determine which strategies can help you achieve your unique needs and objectives, speak with your Morgan Stanley Financial Advisor orPrivateWealthAdvisor.

Disclosures

ETFs AND MUTUAL FUNDSMutual funds and exchange-traded funds are sold by prospectus, which containsmorecompleteinformationaboutthefund.PleasecontactyourFinancialAdvisorforcopies.Pleasereadtheprospectusandconsiderthefund’sobjectives,risks,chargesandexpensescarefullybeforeinvesting.The prospectus contains this and other information about the fund.• ETFs and mutual funds are subject to market risk and may fluctuate in value. Shares may be worth more or less than original cost when they are redeemed or sold. • Frequent trading of ETFs may increase costs such that they offset any savings from low fees or expenses.• Investing in the markets entails the risk of market volatility. The value of all types of securities may increase or decrease over varying time periods.• Funds that invest a large percentage of their assets in only one industry sector (or in only a few sectors) are more vulnerable to price fluctuation than funds that diversify among a broad range of sectors. With respect to real estate investments, property values can fall due to environmental, economic or other reasons, and changes in interest rates can negatively impact the performance of real estate companies.

CLOSED-END FUNDSBesides the general risk of holding securities that may decline in value, closed-end funds may have additional risks related to declining market prices relative to net asset values (NAVs), active manager underperfor-mance, and potential leverage. Some funds also invest in foreign securi-ties, which may involve currency risk. Closed-end funds, unlike open-end funds, are generally not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Net asset value (NAV) is total assets less total liabilities divided by the number of shares outstanding. At the time of sale, your shares may have a market price that is above or below NAV. There is no assurance that the fund will achieve its investment objective. The fund is subject to investment risks, including possible loss of principal invested.

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UNIT INvESTMENT TRUSTSThere is no assurance that an individual UIT portfolio will achieve its investment objective.An investment in a unit investment trust is subject to market risk, which is the pos-sibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them.A trust is unmanaged and its portfolio is not intended to change during the trust’s life except in limited circumstances. Accordingly, you can lose money investing in a trust.Investors should be willing and able to assume the risks of equity investing. The value of the fund’s portfolio changes daily and can be affected by changes in interest rates, general market conditions and other political, social and eco-nomic developments, as well as specific matters relating to the companies in whose securities the fund invests. International investing involves certain risks, such as currency fluctuations, economic instability and political developments.Bonds are subject to interest rate risk. When interest rates rise, bond prices fall; generally, the longer a bond’s maturity, the more sensitive it is to this risk. Bonds may also be subject to call risk, which is the risk that the issuer will redeem the debt at its option, fully or partially, before the scheduled maturity date. The market value of debt instruments may fluctuate, and proceeds from sales prior to maturity may be more or less than the amount originally invested or the maturity value due to changes in market conditions or changes in the credit quality of the issuer.Because of their narrow focus, sector investments tend to be more vola-tile than investments that diversify across many sectors and companies.Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets. There is no guarantee that past performance or information relating to return, volatility, style reliability, and other attributes will be predictive of future results.A trust should be considered as a part of a long-term investment strategy and you should consider your ability to pursue it by investing in succes-sive trusts, if available. You will realize tax consequences associated with investing from one series to the next.

A unit investment trust is sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges and expenses, and other information regarding the unit investment trust, which should be carefullyconsideredbeforeinvesting.Prospectusesareavailablethroughyour Financial Advisor. Read the prospectus carefully before you invest.

529 COLLEGE SAvINGS PLANSInvestors should consider many factors before deciding which 529 plan is ap-propriate. Some of these factors include: the Plan’s investment options and the historical investment performance of these options, the Plan’s flexibility and features, the reputation and expertise of the Plan’s investment manager, Plan contribution limits and the federal and state tax benefits associated with an investment in the Plan. Some states, for example, offer favorable tax treatment and other benefits to their residents only if they invest in the state’s own Qualified Tuition Program. Investors should determine their home state’s tax treatment of 529 plans when considering whether to choose an in-state or out-of-state plan. Investors should consult with their tax or legal advisor before investing in any 529 Plan or contact their state tax division for more information. Morgan Stanley Smith Barney does not provide tax and/or legal advice. Investors should review a Program Disclo-sure Statement, which contains more information on investment options, risk factors, fees and expenses, and possible tax consequences.

GENERALAlthough the statements of fact and data in this report have been obtained from, and are based upon, sources that the firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions included in this report constitute the firm’s judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not pro-vide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning, and their attorney for legal matters.

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© 2016 Morgan Stanley Smith Barney LLC. Member SIPC. IP 8395880 CRC1356686 (02/16) CS8395880 03/16