Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (October 2023)
36 slides from Morgan Stanley's investor presentation, October 2023
Slide 1: Wealth Management Perspectives
Wealth Management Perspectives
Slide 2: Alternative Investments – Contents
Alternative Investments – Contents Introducing Morgan Stanley Alternative Investments Investment Global Investment Global Investment Alternative Alternative Solutions: Committee: Manager Analysis Investments Investments Our Unique Strategic Asset (GIMA) Team: Strategies Eligibility Alternative Alloc
Slide 3: Our Commitment to Alternative Investments
Our Commitment to Alternative Investments Morgan Stanley launched its alternative investment business in 1977 with the founding of Morgan Stanley Real Estate and Morgan Stanley Managed Futures. Today, the firm is a global leader in alternative investments, offering a comprehensive suite of products
Slide 4: An Industry-Leading Alternative Investments Platform
An Industry-Leading Alternative Investments Platform Our comprehensive strategies, diverse talent and global resources enable us to offer investment opportunities that may help qualified investors enhance returns, reduce volatility, manage taxes and generate income. • A curated platform of alternati
Slide 5: Innovative Strategies to Help Achieve Your Goals
Innovative Strategies to Help Achieve Your Goals The power of alternative investments derives from their versatility to offer innovative strategies that align with sophisticated investors’ financial goals. Across the variety of available strategies, these can be organized into four core solutions. I
Slide 6: A Strong Network of Alternative Investment Managers
A Strong Network of Alternative Investment Managers Morgan Stanley has extensive experience in the alternative investments industry through a strong commitment to managing alternative investment strategies across an established global network. The power of the Morgan Stanley Alternative Investments
Slide 7: A Comprehensive Alternative Investments Platform
A Comprehensive Alternative Investments Platform Qualified investors benefit from a robust selection of 200+ alternative offerings representing a broad range of vehicles across the liquidity spectrum, with access to exclusive funds, often at lower investment minimums. 50-55 2-4 15-20 2-4 10-15 SINGL
Slide 8: Alternative Investments Differ from Traditional Investments
Alternative Investments Differ from Traditional Investments Alternative investments describe a spectrum of strategies that cannot be accessed through traditional fixed income and equity markets. These strategies have the potential to help lower volatility and increase diversification in clients’ por
Slide 9: Adding Alternatives Exposure to a Portfolio May Reduce Volatility
Adding Alternatives Exposure to a Portfolio May Reduce Volatility and Potentially Increase Returns Risk and Return Trade-Off With and Without Alternatives Data as of January 1, 1990, to December 30, 2022 10.5% 75% Stocks 25% Alternatives 10.0% 9.5% 100% Stocks 9.0% 75% Stocks & Bonds 25% Alternative
Slide 10: Alternative Investments Offer Diversification in Challenging Market Environments
Alternative Investments Offer Diversification in Challenging Market Environments Alternatives’ Outperformance in Rising Rate Environments Quarterly Data as of June 30, 2023 10 1 2 3 4 5 6 3,600 3,200 8 2,800 2,400 Avg. Alts Yield (%) 6 outperformance +29% 2,000 1,600 4 1,200 in rising rate 2 Dec. 31
Slide 11: The Importance of Manager Selection Across Asset Classes
The Importance of Manager Selection Across Asset Classes Private and Public Manager Return Dispersion Upper Quartile – Median – Lower Quartile based on 10-Year Annualized Returns As of March 31, 2023 30% Average 1.1% difference Average 14.2% difference Traditional Alternative between top and bottom
Slide 12: Global Investment Committee: Alternative Investment Strategic Asset Allocation
Global Investment Committee: Alternative Investment Strategic Asset Allocation The Morgan Stanley Wealth Management Depending on investor risk tolerance and net Ask your Financial Advisor or Global Investment Committee (GIC) continually worth, the GIC may recommend a certain Private Wealth Advisor f
Slide 13: GIC Categorizes Alternative Investments into Five Buckets
The Global Investment Committee (GIC) Categorizes Alternative Investments into Five Buckets REAL ASSETS ABSOLUTE RETURN ASSETS Commodities, Precious Equity Market Neutral, Relative Metals/Gold, MLPs, REITs Value, Unconstrained F.I. GIC Alternatives Categories PRIVATE INVESTMENTS EQUITY HEDGE ASSETS
Slide 14: What is Global Investment Manager Analysis (GIMA)?
What is Global Investment Manager Analysis (GIMA)? GIMA engages with a broad array of investment managers to identify high-quality strategies for your portfolio. THE TRADITIONAL ALTERNATIVE GIMA TEAM INVESTMENTS INVESTMENTS • ~80 investment professionals Traditional Team Provides Advice On: Alternat
Slide 15: GIMA Robust Alternative Investments Due Diligence Process
The GIMA Team Utilizes a Robust Alternative Investments Due Diligence Process The Global Investment Manager Analysis (GIMA) team, a leader in manager analysis, applies a common framework in its review of all investment products under consideration. 1 2 3 4 5 COMPREHENSIVE ONGOING BUSINESS & QUANTITA
Slide 16: Alternative Investment Manager Due Diligence at Morgan Stanley
Alternative Investment Manager Due Diligence at Morgan Stanley The Global Investment Manager Analysis (GIMA) team engages with a broad array of investment managers to identify high-quality strategies for your portfolio. Before managers are selected for inclusion on the platform, GIMA employs a thoro
Slide 17: 2023 GIMA Alternative Investments Themes
2023 GIMA Alternative Investments Themes THEME IMPLEMENTATION KEY RATIONALE • Low Correlation Hedge Fund Higher interest rates and continued inflation are meaningful headwinds for equity and bond Seek Near-Zero Correlation Strategies markets. We continue to favor uncorrelated opportunities such as l
Slide 18: Alternative Investments Strategies in Development – 4Q 2023
Alternative Investments Strategies in Development – 4Q 2023 Control equity and hybrid solutions pursued for later stage development and Value buyers seeking to buy at discounted market multiples based on entry prices and Private Equity Real Estate operating assets with value-add opportunities within
Slide 19: Alternative Investments Strategies in Development – 1Q 2024
Alternative Investments Strategies in Development – 1Q 2024 The fund invests in assets that generate contractual cash flows with a strategy Invests in GP-led and LP-led secondaries, primarily within the mature buyout space, Private Credit Private Equity that emphasizes downside protection and capita
Slide 20: Alternative Investments Eligibility
Alternative Investments Eligibility CLIENT NET WORTH/NET INVESTABLE ASSET MINIMUMS Investors participating in $1MM+ $2.2MM+ $5MM+ $10MM+ $125MM+ $500MM+ alternative investments offered through Morgan Stanley must Managed Futures Funds meet certain SEC and/or state Registered Funds (Accredited Invest
Slide 21: Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC
Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. The sole purpose of this material is to inform, and it in no way is intended to be an ofer or solicitation to purchase or sell any security, other investment or ser
Slide 22: manager due diligence process are equally important factors for investors when considering managers for
manager due diligence process are equally important factors for investors when considering managers for use through an investment advisory program. Factors including, but not limited to, manager turnover and changes to investment process can partially or fully negate a positive Adverse Active Alpha
Slide 23: Management or its afliates receive compensation from, or otherwise related to, those investment managers
Management or its afliates receive compensation from, or otherwise related to, those investment managers or mutual funds. For example, a Financial Advisor may suggest that GIMA evaluates an investment manager or fund in which a portion of his or her clients’ assets are already invested. While such a
Slide 24: other hand, mutual funds typically must meet daily client redemptions. This difering liquidity profle
other hand, mutual funds typically must meet daily client redemptions. This difering liquidity profle can have a material impact on the investment returns generated by a mutual fund or ETF pursuing an alternative investing strategy compared with a traditional hedge fund pursuing the same strategy. N
Slide 25: Treasuries in times of low infation. There is no guarantee that investors will receive
Treasuries in times of low infation. There is no guarantee that investors will receive par if TIPS are sold prior to maturity. The returns on a portfolio consisting primarily of environmental, social, and governance-aware investments (“ESG”) may be lower or higher than a portfolio that is more diver
Slide 26: It should be noted that the majority of hedge fund indexes are comprised of
It should be noted that the majority of hedge fund indexes are comprised of hedge fund manager returns. This is in contrast to traditional indexes, which are comprised of individual securities in the various market segments they represent and ofer complete transparency as to membership and construct
Slide 27: - Certain Digital Assets are not intended to function as currencies but are intended
- Certain Digital Assets are not intended to function as currencies but are intended to have other use cases. These other Digital Assets may be subject to some or all of the risks and considerations set forth herein, as well as additional risks applicable to such Digital Assets. Buyers, sellers and
Slide 28: Assets versus the USD has in the past dropped more than 50% in a
Assets versus the USD has in the past dropped more than 50% in a single day. Other Digital Assets may be afected by such volatility as well. - Digital Asset exchanges have limited operating and performance histories and are not regulated with the same controls or customer protections available to mo
Slide 29: Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code of
Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code of 1986, and any information in this report is not intended to be considered investment advice or a recommendation for either ERISA or Internal Revenue Code purposes and that (unless otherwise provided in a written
Slide 30: GIFT. Back ofce administration provided by RenPSG, an unafliated charitable gift administrator. 529 Plans
GIFT. Back ofce administration provided by RenPSG, an unafliated charitable gift administrator. 529 Plans - Investors should carefully read the Program Disclosure statement, which contains more information on investment options, risk factors, fees and expenses, and possible tax consequences before p
Slide 31: substantial. Trusts often incur ongoing administrative fees and expenses such as the services of
substantial. Trusts often incur ongoing administrative fees and expenses such as the services of a corporate trustee or tax professional. The Portfolio Analysis report (“Report”) is generated by Morgan Stanley Smith Barney LLC’s (“Morgan Stanley”) Portfolio Risk Platform. The assumptions used in the
Slide 32: not to fund any advance request due to insufcient collateral or for any other
not to fund any advance request due to insufcient collateral or for any other reason except for any portion of a securities based loan that is identifed as a committed facility ; (5) Morgan Stanley reserves the right to increase your collateral maintenance requirements at any time without notice; an
Slide 33: Through the pledged-asset feature ofered by Morgan Stanley Private Bank, National Association, the applicant(s)
Through the pledged-asset feature ofered by Morgan Stanley Private Bank, National Association, the applicant(s) or third party pledgor (collectively “Client”) may be able to pledge eligible securities in lieu of a full or partial cash down payment or in connection with a refnance mortgage loan. To b
Slide 34: The Platinum Card® from American Express exclusively for Morgan Stanley and the Morgan Stanley
The Platinum Card® from American Express exclusively for Morgan Stanley and the Morgan Stanley Blue Cash Preferred® Card are issued by American Express National Bank, not Morgan Stanley Smith Barney LLC. Services and rewards for the Cards are provided by Morgan Stanley Smith Barney LLC, American Exp
Slide 35: intended for clients who need to have frequent access to funds and those funds
intended for clients who need to have frequent access to funds and those funds will not be automatically accessed to reduce a debit or margin loan in your brokerage account. Withdrawals from an account in Savings are limited to 10 transactions per calendar month, and any withdrawal or transfer over
Slide 36: Disclosures
CRC 5493230 (3/2023) DISCLOSURES Page 36 of 36
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