traditional investment products - morgan stanley ??2 introducing morgan stanley traditional...

Download Traditional Investment Products - Morgan Stanley ??2 Introducing Morgan Stanley Traditional Investment Products Morgan Stanley is an industry leader in traditional investment products,

Post on 07-Feb-2018




4 download

Embed Size (px)


  • 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).

  • 116



    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/

  • 2

    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 guidesthefirmsassetallocationadvicetoclients.

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

  • 3

    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.

  • 4

    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 firms 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 evaluatesafirmsbusinessprocesses, infrastructure and controls.

  • 5

    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.

  • 6

    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

  • 7

    Global Investment Committee Strategic Asset AllocationsI



    29%fixed Income

    5%ultrashort fixed Income



    29%fixed Income

    5%ultrashort fixed Income

  • 8

    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.


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

    Can either be actively managed or indexed.9

    Benefits10dIvErSIfICatIOn11: 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 & Poors 500 Index (S&P 500).10 Source: The Mutual Fund Education Alliance ( and the U.S. Securities and Exchange Commission (, 2015.11 Diversification does not assure a profit or protect against loss. Please see the disclosures at the end of this brochure for


View more >