Loading...
HomeMy WebLinkAboutSebastian LCG Manager Search UpdatedSub -Style GIMA Status Forecasted P/E (1 Year) vs. Index Market Cap ($M) vs. Index Decision Making # of Securities Foreign Securities Permitted Maximum Cash FEES RISK (5 year) Standard Deviation PERFORMANCE Equity 1 year 3 year 5 year 10 year Since Inception Inception Date OTHERIMPORTANT CONSIDERATIONS Year Firm Established Who Est. Performance Commitment Total Assets City of Sebastian Police Officers' Retirement Plan Large Cap Growth Manager Search Summary Performance as of November 30, 2023 and Other Information as of June 30, 2023 Traditional Growth Conservative Growth Traditional Growth Traditional Growth Conservative Growth Focus Focus Focus Focus Focus 32.3 28.7 31.9 32.9 23.2 Higher Equal Higher Higher Lower $606.2 Billion $621.0 Billion $341.2 Billion $692.6 Billion $692.0 Billion Lower Lower Lower Lower Lower Bottom -up Bottom -up Bottom -up Bottom -up Bottom -up 24 30 33 42 49 Yes (15% Maximum) Yes Yes Yes (10% Maximum) No 10% 5% 5% 5% 5°% 0.65% 0.60% 0.80% 0.50% 0.50% 21.72 18.83 21.52 21.40 17.33 28.7 $1.1 Trillion 444 21.28 Gross Net* Gross Net* Gross Net* Gross Net* Gross Net* 26.73 25.90 19.84 19.12 24.56 23.57 32.11 31.45 19.46 18.87 26.17 2.95 2.29 9.16 8.50 7.21 6.36 6.29 5.76 11.31 10.75 8.92 12.94 12.20 13.51 12.83 15.43 14.51 13.50 12.93 14.29 13.72 16.36 14.78 14.04 11.96 11.29 14.46 13.55 14.05 13.48 13.09 12.52 14.69 13.53 12.80 11.32 10.65 15.49 14.56 10.73 10.18 8.78 8.23 April 1992 January 1998 January 2010 August 1997 April 1998 1979 1994 1993 1995 1998 Team Team Team Team Team (Marty Laprade) Owners/Well Paid Owners/Well Paid Owners/Well Paid Well Paid Owners/Well Paid $65.213 Firm/ $1.713 Firm/ $55AB Firm/ $165.4B Firm/ $2.26 Firm/ $48.713 Strategy $1.213 Strategy $14.813 Strategy $39.613 Strategy $647.2M Strategy Total PM's & Analysts 11 5 39 21 5 Pooled vs. Separate Separate Separate Separate Separate Separate * Note: The net performance shown is net of the manager fee stated on this summary for each manager. Sources: Morgan Stanley Global Investment Manager Analysis team, Informa PSN, and Zephyr StyleADVISOR This summary contains select data for each investment manager and index listed and should not be considered inclusive of all material information available for each investment. Please refer to additional information provided in the complete manager search analysis for each manager. The prices, quotes or statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed. City of Sebastian Police Officers' Retirement Plan As of November 30, 2023 Scott Owens, CFA@, CIMA@ Managing Director - Wealth Management Institutional Consulting Director Corporate Retirement Director Impact Investing Director Alternative Investment Director Scott.Owens@msgraystone.com (813)227-2027 G raystone Consulting from Morgan Stanley Theodore J. (TJ) Loew, CFA@ Institutional Consultant Theodore. Loew@msgraystone.com (813)227-2088 Important Disclosures This report must be accompanied by a separate profile document or other report for each mutual fund and exchange - traded fund (ETF), referred to herein as "fund" or "funds", shown in this report, and for each investment manager shown in this report and approved by Morgan Stanley to be offered to investors in any investment advisory program in which you may invest. These separate documents show, for each manager and fund, various information which may include both gross and net performance (which may be more up-to-date than the performance shown in this report). Morgan Stanley has prepared this report for your personal use, at your request, to help you evaluate the investment disciplines and investment managers/funds shown in this report. It is for informational purposes only. It is not a recommendation of a particular portfolio, investment manager or fund. It is not tax or legal advice. The report is based on information you gave Morgan Stanley about your financial situation, investment objectives, risk tolerance and investment time horizon. IT IS TO BE PRESENTED TO YOU IN A ONE-ON-ONE PRESENTATION WITH YOUR MORGAN STANLEY FINANCIAL ADVISOR OR PRIVATE WEALTH ADVISOR SO THAT YOU HAVE AN OPPORTUNITY TO ASK QUESTIONS. If you asked us to do so, we have included one or more investment managers/funds that have not been approved by Morgan Stanley to be offered to investors in any investment advisory program in which you may invest. Morgan Stanley does not and will not recommend any such manager/fund for investment in these programs, and has included the manager/fund in the report solely at your request and for your information. The performance shown in this report for any such managers or funds could differ materially from their performance in investment advisory programs offered by firms other than Morgan Stanley. If you have invested with any such manager/fund through another firm, we recommend that you seek information from that firm on the manager's or fund's gross and net performance in its programs. This report is not complete unless it contains all pages (as indicated in the page numbering below). Please see "Important Notes About Performance" and "Important Notes About this Report" for other important information (including the effect of fees and a summary of the risks associated with particular investment disciplines). © 2022 Morningstar, Inc. All Rights Reserved. The data contained in this report relating to funds: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this data. Past performance is no guarantee of future results. CRC 5081991 1 11/4/2022 Important Notes About Performance The performance data in this report is historical. Past performance does not guarantee future results. NET PERFORMANCE See the accompanying Select UMA Manager Profiles for each investment manager in this report for net performance information on the manager. See the accompanying Morningstar profiles for each fund in the report for standardized fund performance (i.e. returns net of any maximum sales charges that apply if you purchase the Mutual Fund or ETF outside of our investment advisory programs) and also returns net of the maximum annual investment advisory fees that apply if you purchase the fund in one of our investment advisory programs. You should carefully read the manager/fund profiles, which may contain more up-to-date performance information than in this report. NOTE ABOUT ETF PERFORMANCE For ETFs, performance shown may be based on net asset value (NAV), market price (MKT) or both. The Morningstar profile that must accompany this report shows performance based on both NAV and market price. CRC 5081991 1 11/4/2022 Important Notes About Performance (Cont'd) GENERAL DISCLOSURE The investment return and principal value of an investment will fluctuate so that an investor's shares in a fund, when redeemed, may be worth more or less than their original cost, and investments in separately managed accounts may be worth more or less than the original amount. Current performance may be lower or higher than the performance quoted. For performance data for a fund current to the most recent month end, please either contact the fund (at the toll -free number or website address specified in that fund's profile given to you with this report) or call your Financial Advisor or Private Wealth Advisor at the toll -free number on the cover page of this report. You would not necessarily have obtained the performance results shown in this report if you had invested with these managers or funds for the periods indicated. Actual performance results of accounts vary due to factors such as the timing of contributions and withdrawals, client restrictions, rebalancing schedules, and fees and costs. THE SELECTION OF MANAGERS/FUNDS IN THIS REPORT MAY REFLECT THE BENEFIT OF HINDSIGHT BASED ON HISTORICAL RATES OF RETURN. See the applicable Morgan Stanley ADV brochure for an explanation of the fees and charges that would apply if you invest with an investment manager or in a fund through a Morgan Stanley investment advisory program. See "Important Notes About This Report" for information on the sources of performance information in this report. CRC 5081991 1 11/4/2022 Manager and Fund Designations Managers shown in this report may be approved managers offered in some or all of Morgan Stanley's Consulting and Evaluation Services program or Select UMA program. Please ask your Financial Advisor or Private Wealth Advisor about availability in particular programs. See "Important Notes About This Report" for more information on how Morgan Stanley approves managers for these programs. E*Trade Capital Management LLC is an affiliate of Morgan Stanley Smith Barney LLC ("MSSB"). Certain SMA strategies, ETFs and Mutual Funds that are sponsored, managed or sub advised by, or receive other services from, MSSB or our affiliates, including but not limited to Morgan Stanley Investment Management ("MSIM") and Eaton Vance Management ("EVM"), Boston Management and Research, Calvert Research and Management, Atlanta Capital Management Company and Parametric Portfolio Associates, may be included in a client's account. Morgan Stanley Global Investment Manager Analysis ("GIMA") evaluates certain investment products for the purposes of some - but not all - of Morgan Stanley Smith Barney LLC's investment advisory programs. Please see the applicable Form ADV, which can be accessed at www.morganstanley.com/adv, for information about affiliated investment products that are not reviewed or evaluated by GIMA, as well as additional disclosures and conflicts of interest applicable to affiliated products, that could be included in a strategy. In this report, all performance returns for periods of more than one year are annualized returns and for periods of less than one year are not annualized. Terms have the following meanings: (S) Manager participates in the Select UMA program, performance is Gross of advisory fees (n) Manager participates in the Select UMA program, performance is Net of advisory fees (C) Manager participates in the Consulting and Evaluation Services program, performance is Gross of advisory fees (Cn) Manager participates in the Consulting and Evaluation Services program, performance is Net of advisory fees The "Inception Date" is, for separately managed accounts, the date when the investment manager began managing the applicable investment discipline and, for funds, the date the fund was established. In either case, this date may be before the investment discipline or fund became available in any applicable Morgan Stanley investment advisory program. CRC 5081991 1 11/4/2022 G raystone Consulting from Morgan Stanley QUANTITAT IVEANALYSIS (Gross -of -Fees Performance) City of Sebastian Police Officers' Retirement Plan Trailing Period ReturnsAnaiysis as of N ovember 30, 2023 Manager vs Benchmark: Return As of Nov 2023 30 25 20 c v 15 10 5 0 • 2 Months 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years ■ Polen Capital Focus Growth AMI Asset Mgmt Large Cap Growth Brown Advisory LCSG ClearBridge Inv LCG ■ Sawgrass Asset Diversified Larg ■ Russell 1000 Growth Manager vs Benchmark: Return As of Nov 2023 Polen Capital Focus Growth AMI Asset Mgmt Large Cap Growth Brown Advisory LCSG ClearBridge Inv LCG Sawgrass Asset Diversified Larg Russell 1000 Growth 2 MONTHS 1 YEAR 3 YEARS 5 YEARS 7 YEARS 10 YEARS 15 YEARS 11.01 26.73 2.95 12.94 15.48 14.78 16.24 8.05 19.84 9.16 13.51 14.43 11.96 13.97 9.35 24.56 7.21 15.43 16.68 14.46 N/A 11.20 32.11 6.29 13.50 14.83 14.05 16.65 7.36 19.46 11.31 14.29 15.36 13.09 14.98 9.32 26.17 8.92 16.36 17.16 14.69 16.48 SINCE INCEPTION 13.53 11.32 15.49 10.73 8.78 11.88 The prices, quotes, or stetistics contained herein hate been obtained from sources believed to be rdialole, howcver, its accuracycannot be gu2ranteed. Past performance is not a Graystone guarantee of future results Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Calendar Year ReturnsAnalysis as of November 30, 2023 Calendar Year Return As of Nov 2023 YTD 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Polen Capital Focus Growth 35.60 (37.50) 24.71 34.65 38.79 8.98 27.72 1.75 15.89 17.60 23.77 12.43 9.04 15.65 39.71 AMI Asset Mgmt Large Cap Growth 25.48 (20.61) 25.30 28.44 29.68 (0.53) 23.09 0.32 3.85 14.31 31.11 17.95 7.03 15.92 22.00 3rown Advisory LCSG 32.48 (31.23) 29.79 39.06 35.08 4.45 28.00 5.66 12.76 6.21 33.37 15.58 4.56 22.44 N/A ClearBridge Inv LCG 40.29 (32.10) 22.71 32.10 33.01 0.70 26.38 8.06 10.43 14.65 39.02 21.63 (0.15) 10.40 42.96 Sawgrass Asset Diversified Larg 26.22 (17.57) 27.59 21.71 30.63 3.46 23.05 6.54 2.27 13.92 35.51 14.27 9.29 10.85 28.54 Russell 1000 Growth 36.63 (29.14) 27.60 38.49 36.39 (1.51) 30.21 7.08 5.67 13.05 33.48 15.26 2.64 16.71 37.21 The prices, quotes, or statistics oontaned herein have been obtaned from sources believed to be rdiable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 5-Yeer Rolling Period Returns as of November 30, 2023 Rolling Manager vs Benchmark: Return 60-Month Moving Windows, Computed Quarterly, December 2008 - November 2023 26 s ♦ 24 22 _ ♦ ♦ f� 20 ♦ '� ■ _ :18 ■ .. Z ■ ■ ■ ■ ♦ ♦ * 14 12 10 8 11/2013 11/2016 11/2019 11/2023 Polen Capital Focus Growth AMI Asset Mgmt Large Cap Growth Brown Advisory LCSG ClearBridge Inv LCG ■ Sawgrass Asset Diversified Larg ♦ Russell 1000 Growth Manager vs Benchmark: Return As of Nov 2023 =olen Capital Focus Growth AMI Asset Mgmt Large Cap Growth Brown Advisory LCSG ClearBridge Inv LCG 3awgrass Asset Diversified Larg Russell 1000 Growth 12/2018- 12/2017- 12/2016- 12/2015- 12/2014- 12/2013- 11/2023 11/2022 11/2021 11/2020 11/2019 11/2018 12.94 11.24 25.85 20.46 17.29 16.66 13.51 11.66 19.88 14.27 10.53 10.42 15.43 13.10 26.17 20.15 15.76 13.51 13.50 9.69 22.17 18.41 14.53 14.60 14.29 12.96 19.65 15.52 12.10 11.90 16.36 12.92 25.10 19.56 13.71 13.04 The prices, quotes, or statistics contained herein hate been obtained from sources believed to be rdiable, however, its -,. ,, .-t be guaranteed. Past Na fug � �. Lb is not a Graystone guaantee of future results. Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 5-Yeer Rolling Period Alphas as of November 30, 2023 Rolling Manager vs Benchmark: Alpha 60-Month Moving Windows, Computed Quarterly, December 2008 - November 2023 6 _ 5 ■ _ �• ■ ■ �— of • ♦ ♦ . • • • • • • • • • ♦ • • ♦ ! • • • • • • • • * • ■ • • • • • t • i —V -2 A ♦ — V 4 11/2013 11/2016 11/2019 11/2023 — Polen Capital Focus Growth AMI Asset Mgmt Large Cap Growth Brown Advisory LCSG ClearBridge Inv LCG ■ Sawgrass Asset Diversified Larg ♦ Russell 1000 Growth Manager vs Benchmark: Alpha As of Nov 2023 Polen Capital Focus Growth AMI Asset Mgmt Large Cap Growth Brown Advisory LCSG ClearBridge Inv LCG Sawgrass Asset Diversified Larg Russell 1000 Growth 12/2018- 11/2023 (2.74) (0.38) (0.36) (2.39) 1.21 1 11 12/2017- 11/2022 (1.08) 0.53 0.76 (2.61) 2.44 IR 12/2016 - 11/2021 2.54 (1.69) 3.29 (1.16) 0.02 AM 12/2015- 11/2020 2.24 (2.69) 2.66 (0.15) (0.02) 0.00 12/2014 - 12/2013 - 11/2019 11/2018 4.32 3.99 (0.51) (0.19) 2.85 1.27 1.43 2.46 1.22 1.65 0.00 0.00 The prices, quotes, or statistics oontaned herein hate been obtaned from sources believed to be rdiable, howcver, its ac uracy cannot be guaranteed. Past performance is not a Graystone guars tee of future results. Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 3-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2020 - November 2023 13 12 11 10 9 • 8 Polen Capital Focus Growth E 7 AMI Asset Mgmt Large Cap Growth 6 Brown Advisory LCSG ClearBridge Inv LCG 5 ■ Sawgrass Asset Diversified Larg 4 ♦ Russell 1000 Growth 3 - FTSE 3-Month Treasury Bill 2 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Standard Deviation (%) Risk & Return Analysis December 2020 - November 2023 RETURN EXCESS RETURN Polen Capital Focus Growth 2.95 (5.97) AMI Asset Mgmt Large Cap 9.16 0.24 Growth Brown Advisory LCSG 7.21 (1.71) ClearBridge Inv LCG 6.29 (2.63) awgrass Asset Diversified Larg 11.31 2.39 Russell 1000 Growth 8.92 0.00 STANDARD BETA MAXIMUM DEVIATION DRAWDOWN 22.57 1.05 (38.14) 17.20 0.80 (25.87) 22.67 1.06 (33.17) 21.18 1.00 (35.20) 16.60 0.76 (22.92) 20.81 1.00 (30.66) UP DOWN SHARPE R- ALPHA CAPTURE CAPTURE RATIO SQUARED 91.26 109.35 (5.67) 0.04 93.87 82.39 85.04 1.74 0.41 92.83 99.86 104.39 (1.84) 0.23 95.00 94.31 102.79 (2.40) 0.20 97.43 85.63 81.58 4.08 0.56 90.22 100.00 100.00 0.00 0.33 100.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 5-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2018 - November 2023 20 18 16 14 12 Polen Capital Focus Growth E AMI Asset Mgmt Large Cap Growth ' 10 Brown Advisory LCSG v 8 ClearBridge Inv LCG ■ Sawgrass Asset Diversified Larg 6 ♦ Russell 1000 Growth 4 FTSE 3-Month Treasury Bill 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Standard Deviation (%) Risk & Return Analysis December 2018 - November 2023 RETURN EXCESS RETURN Polen Capital Focus Growth 12.94 (3.42) AMI Asset Mgmt Large Cap 13.51 (2.85) Growth Brown Advisory LCSG 15.43 ClearBridge Inv LCG 13.50 awgrass Asset Diversified Larg 14.29 Russell 1000 Growth 16.36 STANDARD MAXIMUM UP DOWN SHARPE R- BETA ALPHA DEVIATION DRAWDOWN CAPTURE CAPTURE RATIO SQUARED 21.72 0.99 (38.14) 91.73 101.66 (2.74) 0.51 94.42 18.83 0.85 (25.87) 80.51 89.13 (0.38) 0.62 92.59 (0.93) 21.52 0.98 (33.17) 92.75 95.91 (0.36) 0.63 93.35 (2.86) 21.40 1.00 (35.20) 94.28 102.46 (2.39) 0.54 97.99 (2.07) 17.33 0.78 (22.92) 80.25 86.56 1.21 0.72 92.69 0.00 21.28 1.00 (30.66) 100.00 100.00 0.00 0.68 100.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 7-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2016 - November 2023 20 18 16 ■ 14 12 Polen Capital Focus Growth E AMI Asset Mgmt Large Cap Growth v 10 Brown Advisory LCSG 8 ClearBridge Inv LCG ■ Sawgrass Asset Diversified Larg 6 ♦ Russell 1000 Growth 4 FTSE 3-Month Treasury Bill 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Standard Deviation (%) Risk & Return Analysis December 2016 - November 2023 RETURN EXCESS RETURN Polen Capital Focus Growth 15.48 (1.67) AMI Asset Mgmt Large Cap 14.43 (2.73) Growth Brown Advisory LCSG 16.68 ClearBridge Inv LCG 14.83 awgrass Asset Diversified Larg 15.36 Russell 1000 Growth 17.16 STANDARD MAXIMUM UP DOWN SHARPE R- BETA ALPHA DEVIATION DRAWDOWN CAPTURE CAPTURE RATIO SQUARED 19.23 0.99 (38.14) 94.75 99.96 (1.17) 0.72 93.86 16.60 0.84 (25.87) 81.34 88.21 0.02 0.77 91.33 (0.48) 18.92 0.97 (33.17) 93.19 94.20 0.16 0.79 92.99 (2.33) 18.80 0.98 (35.20) 93.48 100.78 (1.71) 0.70 96.90 (1.80) 15.23 0.78 (22.92) 81.60 85.09 1.80 0.90 92.20 0.00 18.84 1.00 (30.66) 100.00 100.00 0.00 0.82 100.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 10-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2013 - November 2023 18 16 14 12 c 10 v 8 6 4 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Standard Deviation (%) Risk & Return Analysis December 2013 - November 2023 RETURN EXCESS RETURN Polen Capital Focus Growth 14.78 0.09 AMI Asset Mgmt Large Cap 11.96 Growth Brown Advisory LCSG 14.46 ClearBridge Inv LCG 14.05 awgrass Asset Diversified Larg 13.09 Russell 1000 Growth 14.69 (2.73) (0.22) (0.64) (1.60) 0.00 Polen Capital Focus Growth AMI Asset Mgmt Large Cap Growth Brown Advisory LCSG ClearBridge Inv LCG ■ Sawgrass Asset Diversified Larg ♦ Russell 1000 Growth FTSE 3-Month Treasury Bill STANDARD BETA MAXIMUM UP DOWN ALPHA SHARPE R- DEVIATION DRAWDOWN CAPTURE CAPTURE RATIO SQUARED 17.22 0.98 (38.14) 97.42 96.61 0.45 0.79 92.84 15.05 0.85 (25.87) 80.48 87.82 (0.38) 0.71 90.59 17.06 0.97 (33.17) 94.01 93.89 0.32 0.78 92.23 16.84 0.98 (35.20) 96.23 98.30 (0.23) 0.76 96.54 13.83 0.78 (22.92) 81.66 84.24 1.41 0.86 91.98 16.94 1.00 (30.66) 100.00 100.00 0.00 0.80 100.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results Consulting from Morgan Stanley G raystone Consulting from Morgan Stanley QUANTITAT IVEANALYSIS (N et -of -Fees Performance) City of Sebastian Police Officers' Retirement Plan Trailing Period ReturnsAnaiysis as of November 30, 2023 Manager vs Benchmark: Return As of Nov 2023 30 25 20 c c2 15 10 - - 5 - 0 2 Months 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years ■ Polen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.500/a Mgr Fee ■ Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee ■ Russell 1000 Growth Manager vs Benchmark: Return As of Nov 2023 Polen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee 3rown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.50% Mgr Fee awgrass Asset Diversified Larg - Net 0.50% Mgr Fee Russell 1000 Growth 2 MONTHS 1 YEAR 3 YEARS 5 YEARS 7 YEARS 10 YEARS 15 YEARS SINCE INCEPTION 10.89 25.90 2.29 12.20 14.74 14.04 15.49 12.80 7.94 19.12 8.50 12.83 13,74 11.29 13.29 10.65 9.21 23.57 6.36 14.51 15.75 13.55 N/A 14.56 11.11 31.45 5.76 12.93 14.25 13.48 16.07 10.18 7.27 18.87 10.75 13.72 14.78 12.52 14.40 8.23 9.32 26.17 8.92 16.36 17.16 14.69 16.48 11.88 The prices, quotes, or statistics contained herein hate been obtained from sources believed to be reliable, however, its aocuray cannot be guerenteed. Past Na fu. � � . ,L). is not a Graystone guars itee of future results Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Calendar Year ReturnsAnalysis as of November 30, 2023 Calendar Year Return As of Nov 2023 YTD 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Polen Capital Focus Growth - Net 0.65% Mgr Fee 34.80 (37.91) 23.90 33.78 37.89 8.28 26.90 1.09 15.14 16.83 22.97 11.70 8.33 14.90 38.81 AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee 24.80 (21.08) 24.55 27.67 28.91 (1.13) 22.35 (0.28) 3.23 13.63 30.32 17.24 6.39 15.23 21.27 3rown Advisory LCSG - Net 0.80% Mgr Fee 31.51 (31.78) 28.75 37.95 34.00 3.62 26.98 4.82 11.86 5.36 32.31 14.66 3.72 21.47 N/A ClearBridge Inv LCG - Net 0.50% Mgr Fee 39.65 (32.43) 22.10 31.44 32.35 0.20 25.75 7.52 9.87 14.07 38.32 21.02 (0.64) 9.85 42.25 Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee 25.64 (17.98) 26.96 21.10 29.98 2.94 22.43 6.01 1.76 13.35 34.83 13.70 8.74 10.30 27.90 Russell 1000 Growth 36.63 (29.14) 27.60 38.49 36.39 (1.51) 30.21 7.08 5.67 13.05 33.48 15.26 2.64 16.71 37.21 The prices, quotes, or statistics contained herein have been obtained from sources believed to be rdiable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 5-Yeer Rolling Period Returns as of November 30, 2023 Rolling Manager vs Benchmark: Return 60-Month Moving Windows, Computed Quarterly, December 2008 - November 2023 26 24 22 = Z * : . 20 Cal 16 _• ■ .t■ ■ •. ■ ■ 14 ♦ ■ ■ ■ V ♦ . ♦ V, • 10 • • ■ ■-■ fi■ • r * z : . , . 8 • 11/2013 11/2016 11/2019 11/2023 Polen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.500/u Mgr Fee ■ Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee ♦ Russell 1000 Growth Manager vs Benchmark: Return As of Nov 2023 =olen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.50% Mgr Fee Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee Russell 1000 Growth 12/2018- 12/2017- 12/2016- 12/2015- 12/2014- 12/2013- 11/2023 11/2022 11/2021 11/2020 11/2019 11/2018 12.20 10.51 25.03 19.68 16.53 15.90 12.83 10.99 19.17 13.59 9.87 9.76 14.51 12.20 25.16 19.19 14.84 12.60 12.93 9.14 21.56 17.82 13.96 14.03 13.72 12.40 19.05 14.94 11.54 11.34 16.36 12.92 25.10 19.56 13.71 13.04 The prices, quotes, or statistics contained herein hate been obtained from sources believed to be rdiable, however, its -,. ,, .-t be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results. Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 5-Yeer Rolling Period Alphas as of November 30, 2023 Rolling Manager vs Benchmark: Alpha 60-Month Moving Windows, Computed Quarterly, December 2008 - November 2023 5 4 " s as ,_.:�.♦..�-_-!Z■�■.....�ii* �-ice.-_.�,�-�. -1 • • V -2 - V • : -3 V 7— -4 -5 11/2013 11/2016 11/2019 11/2023 Polen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.500/u Mgr Fee ■ Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee ♦ Russell 1000 Growth Manager vs Benchmark: Alpha As of Nov 2023 =olen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.50% Mgr Fee Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee Russell 1000 Growth 12/2018- 11/2023 (3.37) (0.98) (1.16) (2.88) 0.71 wi 12/2017- 11/2022 (1.72) (0.07) (0.04) (3.10) 1.93 111 12/2016 - 11/2021 1.88 (2.28) 2.47 (1.65) (0.48) 0.00 12/2015- 12/2014- 12/2013- 11/2020 11/2019 11/2018 1.58 3.64 3.31 (3.27) (1.10) (0.79) 1.85 2.03 0.46 (0.65) 0.92 1.95 (0.51) 0.71 1.15 0.00 0.00 0.00 The prices, quotes, or statistics contained herein hate been obtained from sources believed to be rdiable, however, its —,. ,, .-t be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results. Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 3-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2020 - November 2023 13 12 11 10 9 8 - Polen Capital Focus Growth - Net 0.65% Mgr Fee E 7 AMI Asset Mgmt Large Cap Growth - Net 0.601/. Mgr Fee y Brown Advisory LCSG - Net 0.80% Mgr Fee 01 6 • ClearBridge Inv LCG -Net 0.50% Mgr Fee 5 ■ Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee 4 ♦ Russell 1000 Growth 3 FTSE 3-Month Treasury Bill 2 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Standard Deviation (%) Risk & Return Analysis December 2020 - November 2023 Polen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.50% Mgr Fee Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee Russell 1000 Growth EXCESS STANDARD MAXIMUM UP DOWN SHARPE R- RETURN RETURN DEVIATION BETA DRAWDOWN CAPTURE CAPTURE ALPHA RATIO SQUARED 2.29 (6.63) 22.55 1.05 (38.60) 89.91 110.12 (6.28) 0.01 93.87 8.50 (0.42) 17.19 0.80 (26.21) 81.19 85.89 1.13 0.37 92.83 6.36 (2.56) 22.65 1.06 (33.66) 98.12 105.37 (2.62) 0.19 95.00 5.76 (3.16) 21.17 1.00 (35.44) 93.25 103.42 (2.89) 0.17 97.43 10.75 1.83 16.59 0.76 (23.20) 84.62 82.31 3.56 0.52 90.22 8.92 0.00 20.81 1.00 (30.66) 100.00 100.00 0.00 0.33 100.00 The prices, quotes, or statistics contained herein hate been obtained from sources believed to be rdiable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results. Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 5-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2018 - November 2023 20 18 16 14 12 Polen Capital Focus Growth - Net 0.65% Mgr Fee E AMI Asset Mgmt Large Cap Growth - Net 0.601/u Mgr Fee v 10 Brown Advisory LCSG - Net 0.80% Mgr Fee 8 ClearBridge Inv LCG - Net 0.50% Mgr Fee ■ Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee 6 ♦ Russell 1000 Growth 4 FTSE 3-Month Treasury Bill 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Standard Deviation (%) Risk & Return Analysis December 2018 - November 2023 Polen Capital Focus Growth - Net 0.65% Mgr Fee AMI Asset Mgmt Large Cap Growth - Net 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee ClearBridge Inv LCG - Net 0.50% Mgr Fee Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee Russell 1000 Growth EXCESS STANDARD MAXIMUM UP DOWN SHARPE R- RETURN RETURN DEVIATION BETA DRAWDOWN CAPTURE CAPTURE ALPHA RATIO SQUARED 12.20 (4.15) 21.71 0.99 (38.60) 90.39 102.40 (3.37) 0.48 94.42 12.83 (3.52) 18.82 0.85 (26.21) 79.35 89.89 (0.98) 0.58 92.59 14.51 (1.85) 21.50 0.98 (33.66) 91.11 96.87 (1.16) 0.59 93.35 12.93 (3.43) 21.39 1.00 (35.44) 93.24 103.02 (2.88) 0.52 97.99 13.72 (2.64) 17.33 0.78 (23.20) 79.29 87.21 0.71 0.68 92.69 16.36 0.00 21.28 1.00 (30.66) 100.00 100.00 0.00 0.68 100.00 The prices, quotes, or statistics contained herein hate been obtained from sources believed to be rdiable, however, its -,. ,, ,.d be guaranteed. Past Na fug � �. Lb is not a Graystone guarantee of future results. Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 7-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2016 - November 2023 20 18 16 14 12 Polen Capital Focus Growth - Net 0.65% Mgr Fee E AMI Asset Mgmt Large Cap Growth - Net 0.601/u Mgr Fee v 10 Brown Advisory LCSG - Net 0.80% Mgr Fee 8 ClearBridge Inv LCG - Net 0.50% Mgr Fee ■ Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee 6 ♦ Russell 1000 Growth 4 FTSE 3-Month Treasury Bill 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Standard Deviation (%) Risk & Return Analysis December 2016 - November 2023 RETURN EXCESS RETURN Polen Capital Focus Growth - Net 0.65% Mgr 14.74 (2.42) Fee AMI Asset Mgmt Large Can Growth - Net STANDARD MAXIMUM UP DOWN SHARPE R- DEVIATION BETA DRAWDOWN CAPTURE CAPTURE ALPHA RATIO SQUARED 19.22 0.99 (38.60) 93.18 100.76 (1.81) 0.68 93.86 13.74 (3.41) 16.59 0.84 (26.21) 79.97 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee 15.75 (1.41) 18.91 0.97 (33.66) 91.26 ClearBridge Inv LCG - Net 0.50% Mgr Fee 14.25 (2.90) 18.79 0.98 (35.44) 92.27 Sawgrass Asset Diversified Larg - Net 0.50% 14.78 (2.37) 15.22 0.78 (23.20) 80.45 Mgr Fee Russell 1000 Growth 17.16 0.00 18.84 1.00 (30.66) 100.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be rdiable, however, it--, -, -,, ,.d be guaranteed. Past Na fug � �.a ,L). is not a guaantee of future results 89.02 (0.57) 0.73 91.33 95.23 (0.64) 0.74 92.99 101.39 (2.20) 0.67 96.90 85.78 1.29 0.86 92.20 100.00 0.00 0.82 100.00 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan 10-Year Risk/ Return Analysis as of November 30, 2023 Risk / Return December 2013 - November 2023 18 16 14 12 � Polen Capital Focus Growth - Net 0.65% Mgr Fee c 10 AMI Asset Mgmt Large Cap Growth - Net 0.601/. Mgr Fee v Brown Advisory LCSG - Net 0.80% Mgr Fee g ClearBridge Inv LCG -Net 0.50% Mgr Fee 6 ■ Sawgrass Asset Diversified Larg - Net 0.50% Mgr Fee ♦ Russell 1000 Growth 4 FTSE 3-Month Treasury Bill 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Standard Deviation (%) Risk & Return Analysis December 2013 - November 2023 RETURN EXCESS RETURN Polen Capital Focus Growth - Net 0.65% Mgr 14.04 (0.65) Fee AMI Asset Mgmt Large Can Growth - Net STANDARD MAXIMUM UP DOWN SHARPE R- DEVIATION BETA DRAWDOWN CAPTURE CAPTURE ALPHA RATIO SQUARED 17.21 0.98 (38.60) 95.73 97.76 (0.21) 0.75 92.84 11.29 (3.40) 15.04 0.85 (26.21) 79.02 0.60% Mgr Fee Brown Advisory LCSG - Net 0.80% Mgr Fee 13.55 (1.14) 17.05 0.97 (33.66) 91.96 ClearBridge Inv LCG - Net 0.50% Mgr Fee 13.48 (1.21) 16.84 0.98 (35.44) 94.93 Sawgrass Asset Diversified Larg - Net 0.50% 12.52 (2.16) 13.82 0.78 (23.20) 80.44 Mgr Fee Russell 1000 Growth 14.69 0.00 16.94 1.00 (30.66) 100.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be rdiable, however, it--, -, -,, ,.d be guaranteed. Past Na fug � �.a ,L). is not a guaantee of future results 88.93 (0.97) 0.67 90.59 95.33 (0,48) 0.72 92.23 99.17 (0.73) 0.73 96.54 85.19 0.91 0.82 91.98 100.00 0.00 0.80 100.00 Graystone Consulting from Morgan Stanley Important Notes About This Report PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ACTUAL INDIVIDUAL ACCOUNT RESULTS WILL DIFFER FROM THE PERFORMANCE SHOWN IN THIS REPORT. INVESTMENT DECISIONS: Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment disciplines or investment managers/funds based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager or fund, as well as matters such as your investment objectives, risk tolerance and investment time horizon. SOURCE OF PERFORMANCE INFORMATION FOR INVESTMENT MANAGERS AVAILABLE IN CONSULTING AND EVALUATION SERVICES OR SELECT UMA: Each investment manager included in this report that participates in one or more of the Consulting and Evaluation Services or Select UMA programs ("Programs") has a track record of investing assets in the relevant investment discipline. The investment manager's gross performance track record shown in this report consists of its gross performance in either the Morgan Stanley or the Smith Barney form of the Select UMA program (if that investment manager was in the Select UMA program) for periods for which sufficient data is available. If the strategy or similar strategies are available in both the Morgan Stanley and Smith Barney forms of the program, this profile presents the composite for the strategy that is closest to the strategy currently offered in the Select UMA program. If both strategies are equally close, the profile shows the longer of the two composites. For other periods, the gross performance track record is provided by the investment manager and consists of accounts managed by the investment manager in the same or a similar investment discipline, whether at Morgan Stanley or elsewhere (and may include institutional accounts, retail accounts and/or pooled investment vehicles such as mutual funds). Morgan Stanley Smith Barney LLC offers investment program services through a variety of investment programs, which are opened pursuant to written client agreements. Each program offers investment managers, funds and features that are not available in other programs; conversely, some investment managers, funds or investment strategies may be available in more than one program. Morgan Stanley's investment advisory programs may require a minimum asset level and, depending on a client's specific investment objectives and financial position, may not be appropriate for the client. Please see the applicable program disclosure document for more information, available at www.morganstanley.com/ADV or from your Financial Advisor. The investment management services of Morgan Stanley Smith Barney LLC and investment vehicles managed by Morgan Stanley Smith Barney LLC or its affiliates are not guaranteed and could result in the loss of value to your account. You should note that investing in financial instruments carries with it the possibility of losses and that a focus on above -market returns exposes the portfolio to above -average risk. Performance aspirations are not guaranteed and are subject to market conditions. CRC 5082012 11/4/2022 Important Notes About This Report (Cont'd) Generally, investment advisory accounts are subject to an annual asset -based fee (the "Fee") which is payable monthly in advance (some account types may be billed differently). In general, the Fee covers Morgan Stanley investment advisory services, custody of securities with Morgan Stanley, trade execution with or through Morgan Stanley or its affiliates, as well as compensation to any Morgan Stanley Financial Advisor. In addition, each account that is invested in a program that is eligible to purchase certain investment products, such as mutual funds, will also pay a Platform Fee (which is subject to a Platform Fee offset) as described in the applicable ADV brochure. Accounts invested in the Select UMA program may also pay a separate Sub -Manager fee, if applicable. If your account is invested in mutual funds or exchange traded funds (collectively "funds"), you will pay the fees and expenses of any funds in which your account is invested. Fees and expenses are charged directly to the pool of assets the fund invests in and are reflected in each fund's share price. These fees and expenses are an additional cost to you and would not be included in the Fee amount in your account statements. The advisory program you choose is described in the applicable Morgan Stanley Smith Barney LLC ADV Brochure, available at www.morganstanley.com/ADV. Morgan Stanley or Executing Sub -Managers, as applicable, in some of Morgan Stanley's Separately Managed Account ("SMA") programs may effect transactions through broker -dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: nitp:iiwww.rr,iorgaristariiev.coifiiweaitniinves[I'fi@riLsoluilG is/i)uis/acAv/so[resooilsC.ou www.morganstanley.com/wealth/investmentsolutions/pdfs/adv/sotresponse.pdf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), available at www.morganstanley.com/ADV, or contact your Financial Advisor / Private Wealth Advisor. CRC 5082012 11/4/2022 Important Notes About This Report (Cont'd) There may be differences between the performance in the different forms of the Select UMA program, in different Programs, and between the performance in Programs and performance outside the Programs, due to, among other things, investment and operational differences. For example: Institutional accounts included in related performance may hold more securities than the Program accounts, participate in initial public offerings (IPOs) and invest directly in foreign securities (rather than in ADRs). • Mutual funds included in related performance may hold more securities than the Program accounts, may participate in IPOs, may engage in options and futures transactions, and are subject to certain regulatory limitations. • Performance results in Select UMA accounts could differ from that in Consulting and Evaluation Services accounts because Select UMA accounts may hold fewer securities, and have automatic rebalancing, wash sale loss and tax harvesting features. You should read the investment manager profile accompanying this report for each investment manager. The investment manager profile gives further details on the sources of performance information for a particular investment manager, as well as other calculations of the manager's performance returns (such as performance net of fees and expenses). SOURCE OF PERFORMANCE INFORMATION FOR OTHER INVESTMENT MANAGERS: For any investment managers shown in this report that are not available in the Consulting and Evaluation Services or Select UMA programs, the performance data is obtained from databases maintained by parties outside Morgan Stanley. This data has been included for your information, and has not been verified by Morgan Stanley in any way. See "Sources of Information" below. The gross performance shown in this report for these managers could differ materially from their gross performance in investment advisory programs offered by firms other than Morgan Stanley. If you have invested with any such manager through another firm, we recommend that you seek information from that firm on the manager's gross and net performance in its programs. CRC 5082012 11/4/2022 Important Notes About This Report (Cont'd) SOURCE OF PERFORMANCE INFORMATION FOR FUNDS: For any fund shown in this report, the performance data is obtained from databases maintained by parties outside Morgan Stanley. This data has been included for your information, and has not been verified by Morgan Stanley in any way. See "Sources of Information" below. BENCHMARK INDICES: Depending on the composition of your account and your investment objectives, the indices shown in this report may not be appropriate measures for comparison purposes and are therefore presented for illustration only. The indices used in this report may not be the same indices used for comparative purposes in the profile for each investment manager, mutual fund and/or ETF that accompanies this report. Indices are unmanaged. They do not reflect any management, custody, transaction or other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Performance of selected indices may be more or less volatile than that of any investment manager/fund shown in this report. Past performance of indices does not guarantee future results. You cannot invest directly in an index. MANAGERS AND FUNDS APPROVED IN MORGAN STANLEY WEALTH MANAGEMENT PROGRAMS: Morgan Stanley Wealth Management approves certain managers and funds offered in its investment advisory programs: Morgan Stanley Wealth Management's Global Investment Manager Analysis ("GIMA") team approves managers and funds offered in Consulting and Evaluation Services and Select UMA. Managers and funds offered in Institutional Consulting Group and Graystone Consulting programs may be approved by GIMA, approved by Morgan Stanley Wealth Management using another process, or not approved by Morgan Stanley Wealth Management. • Morgan Stanley Wealth Management does not approve managers in the Investment Management Services consulting program. CRC 5082012 11/4/2022 Important Notes About This Report (Cont'd) If you invest in a manager or fund that is not approved by Morgan Stanley Wealth Management, you are responsible for selecting and/or retaining that manager or fund, and Morgan Stanley Wealth Management does not recommend or monitor that manager or fund. For more information on the approval process in any program, see the applicable ADV brochure, available at www.MorganStanley.com/ADV or from your Financial Advisor or Private Wealth Advisor. If you have any questions about whether or how Morgan Stanley Wealth Management has approved a manager or fund shown in this report, please ask our Financial Advisor or Private Wealth Advisor. SHARE CLASSES OF FUNDS SHOWN IN THIS REPORT: The share class of a fund shown in this report may differ from the share class available in any Morgan Stanley Wealth Management investment advisory program in which you invest. The performance of the share class in which you invest may differ from that of the share class shown in this report. REINVESTMENT: The performance results shown in this report assume that all dividends, accrued income and capital gains were reinvested. SOURCES OF INFORMATION: Although the statements of fact in this report have been obtained from, and are based on, sources that Morgan Stanley believes to be reliable, Morgan Stanley makes no representation as to the accuracy or completeness of the information from sources outside Morgan Stanley. Any such information may be incomplete and you should not use it as the sole basis for investment decisions. It is important to consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. A copy of the prospectus may be obtained from your Financial Advisor or Private Wealth Advisor. Please read the prospectus carefully before investing in the fund. CRC 5082012 11/4/2022 Important Notes About This Report (Cont'd) KEY ASSET CLASS RISK CONSIDERATIONS: Investing in securities entails risk including the risk of losing principal. There is no assurance that the investment disciplines and investment managers/funds selected will meet their intended objectives. Commodities — Diversified: The commodities markets may fluctuate widely based on a variety of factors including changes in supply and demand relationships; governmental programs and policies; national and international political and economic events; war and terrorist events; changes in interest and exchange rates; trading activities in commodities and related contracts; pestilence; weather; technological change; and the price volatility of a commodity. In addition to commodity risk, commodity -linked notes may be subject to special risks, such as risk of loss of interest and principal, lack of a secondary market and risk of greater volatility that do not affect traditional equity and debt securities. Commodities - Precious Metals: The prices of Commodities - Precious Metals tend to fluctuate widely and in an unpredictable manner, and have historically experienced extended periods of flat or declining prices. The prices of Commodities - Precious Metals are affected by several factors, including global supply and demand, investors' expectations with respect to the rate of inflation, currency exchange rates, interest rates, investment and trading activities of hedge funds and commodity funds, and global or regional political, economic or financial events and situations. Fixed Income: Fixed income securities are subject to certain inherent risks such as credit risk, reinvestment risk, call risk, and interest rate risk. Fixed income securities are sensitive to changes in prevailing interest rates. When interest rates rise, the value of fixed income securities generally declines. Accordingly, managers or funds that invest in fixed income securities are subject to interest rate risk and portfolio values can decline in value as interest rates rise and an investor can lose principal. High Yield Fixed Income: As well as being subject to risks relating to fixed income generally (see "Fixed Income"), high yield or "junk" bonds are considered speculative, have significantly higher credit and default risks (including loss of principal), and may be less liquid and more volatile than investment grade bonds. Clients should only invest in high yield strategies if this is consistent with their risk tolerance, and high yield investments should comprise only a limited part of a balanced portfolio. CRC 5082012 11/4/2022 Important Notes About This Report (Cont'd) International/Emerging Market: International investing (including investing in particular countries or groups of countries) should be considered only one component of a complete and diversified investment program. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as foreign political, currency, economic and market risks. In addition, the securities markets of many emerging markets are substantially smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other more developed countries. Further, a portfolio that focuses on a single country may be subject to higher volatility than one that is more diversified. Preferred Securities: Preferred securities are generally subject to the same risks as apply to fixed income securities. (See "Fixed Income.") However, preferred securities (especially equity preferred securities) may rank below traditional forms of debt for the purposes of repayment in the event of bankruptcy. Many preferred securities are "callable" meaning that the issuer may retire the securities at specific prices and dates prior to maturity. If a preferred security is called, the investor bears the risk of reinvesting proceeds at a potentially lower return. Investors may not receive regular distributions on preferred securities. For example, dividends on equity preferred securities may only be declarable in the discretion of the issuer's board and may not be cumulative. Similarly, interest payments on certain debt preferred securities may be deferred by the issuer for periods of up to 10 years or more, in which case the investor would still have income tax liability even though payments would not have been received. Real Estate: Real estate investments are subject to special risks, including interest rate and property value fluctuations as well as risks related to general and local conditions. Small and Mid Cap: Investments in small -to medium-sized corporations are generally more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the broad equity market. Hedged and Alternatives Strategies: In most Consulting Group investment advisory program, alternative investments are limited to US registered open-end mutual funds, separate account strategies, and ETFs that seek to pursue alternative investment strategies or returns utilizing publicly traded securities. Investment products in this category may employ various investment strategies and techniques for both hedging and more speculative purposes such as short selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Alternative Investments are not suitable for all investors. CRC 5082012 11/4/2022 Important Notes About This Report (Cont'd) Managed Futures: Involve a high degree of risk, often involve leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies whose interests (limited partnership or limited liability company units) are generally traded on securities exchanges like shares of common stock. Investment in MI -Ps entails different risks, including tax risks, than is the case for other types of investments. Currently, most MI -Ps operate in the energy, natural resources or real estate sectors and are subject to the risks generally applicable to companies in those sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Depending on the ownership vehicle, MLP interests are subject to varying tax treatment. CRC 5082012 11/4/2022 Glossary ALPHA: Synonym of 'value added', linearly similar to the way beta is computed, alpha is the incremental return on a portfolio when the market is stationary. In other words, it is the extra expected return due to non -market factors. This risk -adjusted measurement takes into account both the performance of the market as a whole and the volatility of the portfolio. A positive alpha indicates that a portfolio has produced returns above the expected level at that level of risk, and vice versa for a negative alpha. ANNUALIZED RETURN: The constant rate of return that, compounded annually, would yield the same overall return for a period of more than one year as the actual return observed for that period. ANNUALIZED EXCESS RETURN: Excess return represents the difference between the manager's return and the return of a benchmark for that manager. Annualized excess return is calculated by taking the annualized return of the original series and forming the difference between the two. A positive annualized excess return implies that the manager outperformed the benchmark over the time period shown. BEST AND WORST PERIOD RETURNS: The best period return for a time window is simply the maximum of the returns for that period inside this window. Similarly, the worst period return for a time window is the minimum of the returns for that period inside this window. To calculate the best one-year return for a return series, the program moves a one-year time window along the series and calculates the compound return for each of these windows. The best one-year return is the maximum of the returns thus found. Similarly, the worst one-year return is the minimum of the returns thus found. Therefore, best and worst one-year returns do not refer to calendar years. BETA: The measure of a portfolio's risk in relation to the market (for example, the S&P 500) or to an alternative benchmark or factors. Roughly speaking, a portfolio with a beta of 1.5 will have moved, on average, 1.5 times the market return. According to asset pricing theory, beta represents the type of risk, systematic risk, which cannot be diversified away. When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; (2) betas may be different depending on the direction of the market (i.e. betas may be greater for down moves in the market rather than up moves); (3) the estimated beta will be biased if the portfolio does not frequently trade; and (4) the beta is not necessarily a complete measure of risk (you may need multiple betas). Also, note that the beta is a measure of co movement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market. CRC 5082012 11/4/2022 Glossary (Cont'd) CORRELATION: Statistical method to measure how closely related the variances of two series are. Assets that are highly correlated would be expected to react in similar ways to changing market conditions. CUMULATIVE RETURN: The total return on an investment over a specified time period. CUMULATIVE EXCESS RETURN: Excess return represents the difference between the manager's return and the return of a benchmark for that manager. Cumulative excess return is calculated by taking the cumulative return of the original series and forming the difference between the two. A positive cumulative excess return implies that the manager outperformed the benchmark over the time period shown. DOWNSIDE CAPTURE RATIO: For each portfolio, this is calculated by (1) identifying the calendar quarters in which the portfolio's benchmark index had negative returns and then (2) for those quarters, dividing the portfolio's annualized net performance by the benchmark index's performance. For investors, the lower the downside capture ratio, the better. For example, a downside capture ratio of 90% means that the portfolio's losses were only 90% of the market's losses (as represented by the benchmark index). DOWNSIDE DEVIATION: Similar to Standard Deviation, but Downside Deviation captures the range of expected returns only on the down side [when the returns fall below the minimum acceptable return (MAR)]. DRAWDOWN (MAXIMUM DRAWDOWN): The Maximum loss (compounded, not annualized) that the manager incurred during any sub -period of the time period shown. DRAWDOWN BEGIN DATE: the first date of the sub -period used to calculate the maximum drawdown DRAWDOWN END DATE: The last date of the sub period used to calculate the maximum drawdown DRAWDOWN LENGTH: The number of periods (months or quarters depending on the periodicity of the data) the sub -period used to calculate the maximum drawdown DRAWDOWN RECOVERY DATE: Date at which the compounded returns regain the peak level that was reached before the drawdown began DRAWDOWN RECOVERY LENGTH: Number of periods it takes to reach the recovery level from maximum drawdown end date CRC 5082012 11/4/2022 Glossary (Cont'd) EXCESS RETURN: The difference between the returns of two portfolios. Usually excess return is the difference between a portfolio's return and the return of a benchmark for that portfolio. GAIN TO LOSS RATIO: Divides the average gain in an up period by the average loss in a down period. A higher Gain to Loss Ratio is more favorable. HIGH WATER MARK: The High Water Mark represents the peak level of the manager's return, as represented by the peak of the cumulative return series. HIGH WATER MARK DATE: The date which the High Water Mark was reached. UNDER WATER LOSS: Loss incurred between the high water mark date and the end of the period analyzed UNDER WATER LENGTH: Length of the time interval that begins with the high water mark and ends with the analysis period TO HIGH WATER MARK: The percentage of gain that the manager/fund needs to regain the peak level of the cumulative return series INFORMATION RATIO: Measures the active return of the manager divided by the manager's active risk. Active return is the annualized differences of the manager and the benchmark index, while active risk is measured by tracking error. The higher the information ratio, the better. An information ratio of 0 implies that a manager/fund (or benchmark index, if applicable) has provided a return that is equivalent to the risk of the benchmark return. MAR: Stands for "Minimum Acceptable Return." This represents the lowest return possible that could be considered a successful result of the investment. In most cases, the MAR will either be defined as 0 (meaning no negative return) or as the return of a cash benchmark (meaning the investment had a higher return that simply keeping the investment amount in the relatively safe investment of money market funds). Please refer to the specific chart/statistic to see the specific MAR used in the illustration. CRC 5082012 11/4/2022 Glossary (Cont'd) MANAGER STYLE (RETURNS BASED STYLE ANALYSIS): A measure for analyzing the style of a portfolio's returns when compared with the quarterly returns on a number of selected style indices (the "Style Basis"). These style indices represent distinct investment styles or asset classes such as large cap value, large cap growth, small cap growth, small cap value, government bonds, or cash equivalents asset classes. Style analysis uses a calculation procedure that finds the combination of selected indices that best tracks (i.e. that has the highest correlation to) a given manager's return series. This allows the advisor to capture an accurate picture of the investment style of the manager without viewing the underlying holdings. OMEGA: A measure of volatility designed to capture the entire return distribution (useful for investments that do not have normal return distributions), the Omega is tied to a MAR (see above) and shows the ratio of the entire upside performance to the entire downside, with the MAR representing the dividing line between upside and downside. (e.g. If MAR = 0.00%, any positive return is captured in the upside and any negative return is captured in the downside). PAIN INDEX: Represents the frequency, the depth, and the width of the manager/fund's drawdowns. The Pain Index captures the information for every period in which the manager/fund is negative. A higher Pain Index indicates that the manager/fund had a more negative result when considering not just the depth (lowest return) but also the frequency of negative returns (frequency) and the amount of time that the return remained negative (width). PAIN RATIO: A risk/return ratio which uses the Pain Index as the measure of risk. The higher the Pain Ratio, the better the risk - adjusted return of the portfolio. ROLLING WINDOW: Indicates that the chart or statistic was evaluated using periodic smaller windows of data on a rolling basis. As an example, a 20 Quarter Rolling Window (Annual Roll) over a 10 year period indicates that 5 year (20 quarter) periods of time were evaluated from the start date, moving forward one year at a time, for the duration of the 10 year period, resulting in 5 "windows". Evaluating data this way allows us to remove end point bias and determine a measure of consistency in performance. R-SQUARED: Used to show how much of a portfolio's variability can be accounted for by the market. For example, if a portfolio's R-Squared is 0.79, then 79% of the portfolio's variability is due to market conditions. As R-Squared approaches 100%, the portfolio is more closely correlated with the market. CRC 5082012 11/4/2022 Glossary (Cont'd) SHARPE RATIO: Developed by William F. Sharpe, this calculation measures a ratio of return to volatility. It is useful in comparing two portfolios or stocks in terms of risk -adjusted return. The higher the Sharpe Ratio, the better the risk -adjusted return of the portfolio. It is calculated by first subtracting the risk free rate (Citigroup 3-month T-bill) from the return of the portfolio, then dividing by the standard deviation of the portfolio. Using Sharpe ratios to compare and select among investment alternatives can be difficult because the measure of risk (standard deviation) penalizes portfolios for positive upside returns as much as the undesirable downside returns. SINGLE COMPUTATION: For a single computation chart, StyleADVISOR calculates the information over the entire time period shown as a single data point. AS an example, in a chart showing 10 years of performance, a "Single Computation" would represent the statistic shown over the entire 10 year window. STANDARD DEVIATION: A statistical measure of the degree to which the performance of a portfolio varies from its average performance during a specified period. The higher the standard deviation, the greater the volatility of the portfolio's performance returns relative to its average return. A portfolio's returns can be expected to fall within plus or minus one standard deviation, relative to its average return, two-thirds of the time, and fall within plus or minus two standard deviations relative to its average return, 95% of the time. For example, if a portfolio had a return of 5% and a standard deviation of 13% then, if future volatility of returns is similar to historical volatility (which may not be the case): About two-thirds of the time, the future returns could be expected to fall between -8% and 18% (being 5% +/- 13%) About 95% of the time, the future returns could be expected to fall between -21 % and 31 % (being 5% +/- 26%). In performance measurement, it is generally assumed that a larger standard deviation means that great risk was taken to achieve the return. CRC 5082012 11/4/2022 Glossary (Cont'd) STYLE BASIS: A set of indices that represent the broad asset category being utilized. The Style Basis is used in the equation that calculates the Manager Style (see definition). The "Manager Style" chart shows the specific benchmarks utilized in the Style Basis. The following Style Bases would be appropriate for the asset classes shown below: Domestic Equity: Russell Generic Corners; Russell 6 Way Style basis; S&P Pure Style Basis International Equity: MSCI Regional Style Basis; MSCI World Ex USA Style Basis; MSCI International Equity Style Basis; S&P Regional International Indexes, S&P International 4 Way Style Basis Global Equity: MSCI World Style Basis; MSCI World Regional Indexes; MSCI Global Equity Style Basis Fixed income: Citigroup Corporate Bond Indexes; BofA Merrill Lynch Fixed Income Indexes; Citigroup Govt Fixed Income Indexes; Global Bond Indexes STYLE BENCHMARK: A unique benchmark calculated for each manager/fund based on the Returns Based Style Analysis described above. The "Asset Allocation" chart in Zephyr shows the specific weightings used for the Style Benchmark for each manager or fund. TRACKING ERROR: A measurement that indicates the standard deviation of the difference between a selected market index and a portfolio's returns. The portfolio's returns are then compared to the index's returns to determine the amount of excess return, which produces a tracking error. A low tracking error indicates that the portfolio is tracking the selected index closely or has roughly the same returns as the index. UPSIDE CAPTURE RATIO: For each portfolio, this is calculated by (1) identifying the calendar quarters in which the portfolio's benchmark index had positive returns and then (2) for those quarters, dividing the portfolio's annualized net performance by the benchmark index's performance. A percentage less than 100% indicates that the portfolio "captured" less performance than the benchmark index, while a percentage greater than 100% indicates the portfolio captured more performance than the benchmark index. For investors, the higher the upside capture ratio, the better. For example, if the annualized performance of an benchmark index during "up" markets (when its returns were zero or positive) is 20.8% and the portfolio's annualized performance during the same period is 16.8%, then the portfolio's upside capture ratio is 16.8%/20.8% = 80.7%, meaning the portfolio "captured" 80.7% of the upside performance of the index. Stated another way, the portfolio in this example performed almost 20% worse than the market during up periods. VARIANCE: A measure of how spread out a distribution is. It is computed as the average squared deviation of each number from its mean. CRC 5082012 11/4/2022 G raystone Consulting from Morgan Stanley QUALITATIVE DUE DILIGENCE REPORTS Morgan Stanley WEALTH MANAGEMENT Global Investment Manager Analysis I April 12, 2023 Focus List Report Polen Capital Management Focus Growth (SMA) & Polen Growth Fund Highlights • Global Investment Manager Analysis (GIMA) has a favorable opinion of Polen Capital Management's (Polen) investment capabilities based on the portfolio managers' depth of knowledge of the strategy's holdings and the transparent, repeatable investment process that has been consistently implemented over time. • The portfolio is concentrated, with 20 to 30 stocks. Polen seeks companies with durable earnings profiles, sustainable competitive advantage, strong financials, and proven management teams. • GIMA positively views the significant broadening of employee ownership over the years since founder David Polen passed away in 2012. Employee ownership has increased from 51% in 2014 to 72% in 2022. • GIMA notes that nearly all of the firm's assets are in the Focus Growth strategy, which represents potential business risk should the strategy underperform for an extended period. • The SMA was previously soft -closed before reopening to new investors in February 2023. The mutual fund remains open. Performance Expectations The portfolio may, at times, fall between a Traditional Growth and a Conservative Growth sub -style, due to its lower beta and downside capture. GIMA assigns the strategy to Traditional Growth, driven in part by its elevated tracking error and its concentration. Historically, volatility has been in line with the benchmark. The strategy may struggle during speculative, "risk -on" market environments, typically Led by lower -quality, highly levered companies. Amrit Tewary Investment Analyst Amrit.Tewary@morganstanLey.com +1 212 296-6465 Strategy Details Investment Style: US Large Cap Growth Sub -Style: Traditional Growth Benchmark: Russell 1000 Growth Index GIMA Status: Focus List Product Type: Separately Managed Account and Mutual Fund Ticker Symbol: POLIX (UMA) https://www.paLencapitaL.com Strategy Description Polen seeks higher -quality, large -cap growth companies that have above - average sustainable growth potential, and are trading at a discount to their estimated intrinsic valuation. This report is only to be used in connection with investment advisory programs and not brokerage accounts. Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact your Financial Advisor for a prospectus containing this and other information about the fund. Read it carefully before investing. More information regarding the fees, expenses and performance (but not including the Morgan Stanley Wealth Management program fee) is available at the website noted above. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker -dealer in the United States. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Past performance is not necessarily a guide to future performance. This Manager Analysis Report does not constitute investment advice and the provision of this report itself does not create an investment advisory relationship between you and Morgan Stanley Wealth Management. This is not a "research report" as defined by FINRA Rule 2241 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or its affiliates. INVESTMENT PRODUCTS: NOT FDIC INSURED*NO BANK GUARANTEE* MAY LOSE VALUE © 2023 Morgan Stanley Smith Barney LLC. Member SIPC. FOCUS LIST REPORT Positive Attributes • Polen adopts a disciplined and repeatable investment process, which has been consistently implemented over time. • The portfolio managers have demonstrated in-depth knowledge of the portfolio holdings, and a strong ability to articulate their investment thesis. • Employee ownership has increased significantly over the years since founder David Polen passed away in 2012, when the Polen family had previously owned 90% of the firm. • The firm has expanded its research resources, hiring several analysts to the investment team in recent years. Points to Consider The portfolio is highly concentrated, with 20 to 30 holdings. Polen has a long-term investment horizon. Thus, annual portfolio turnover is low, at approximately 25%. Sector weightings can vary materially from the benchmark. There is a preferred habitat with Polen's growth style, with a preference for stable growth over cyclical growth. As such, there is significant exposure to areas such as software, fintech, and consumer businesses that have recurring revenues. Polen typically avoids certain cyclical sectors such as energy, industrials, materials, as well as the commercial banking portion of financials. While Polen seeks a discount to intrinsic value, valuation metrics are of secondary importance as Polen is willing to pay a premium for quality growth companies that can compound returns over time. Thus, the portfolio's price - to -earnings and price -to -book ratios have tended to be higher than the benchmark. Former Focus Growth co -PM Damon Ficklin relinquished his day-to-day responsibilities on the strategy, effective July 2019. Mr. Ficklin remains at the firm and continues as lead PM on Polen's Global Growth strategy. Focus Growth lead PM Dan Davidowitz remains in his role. iM Global Partner, which owns a 20% passive stake in Polen, invests in asset managers based in the US, Europe and Asia. Areas of Concern • Nearly all of the firm's assets are in the Focus Growth strategy, which represents potential product concentration risk. Should the strategy underperform for an extended period, the firm could lose a substantial amount of assets. Portfolio Management Team & Investment Process • Lead portfolio manager, Dan Davidowitz, and co -portfolio manager, Brandon Ladoff, manage the Polen Focus Growth strategy. • Mr. Davidowitz joined the firm in 2005 as an analyst, and became a PM in 2007. Prior to Polen, Mr. Davidowitz was an analyst at Osprey Partners. • Brandon Ladoff, who is also director of research, joined the firm in 2013 and was named a co -PM for Focus Growth in 2018. Previously, Mr. Ladoff was a corporate lawyer at Willkie Farr & Gallagher. • Investment decisions are made jointly by the PMs, though Mr. Davidowitz has final authority. The PMs are supported by nine analysts, who act as generalists. • Polen seeks higher -quality, large -cap growth companies, that have above -average sustainable growth potential, and are trading at a discount to Polen's estimated intrinsic valuation. • Such companies should have a sustainable competitive advantage, strong financials, proven management teams, and be of high quality. Polen defines high -quality companies as those that have lower levels of volatility and risk because of more stable earnings, above -average cash flows, and low levels of debt. • The initial universe is the Russell 1000 Index. The universe is screened weekly and the quantitative screens include:1) market cap greater than $4 billion; 2) better -than -average earnings growth expectations; 3) high levels of free cash flow; 4) return -on -Equity (ROE) consistently above 20%; 5) stable to improving profit margins; and 6) strong balance sheet. • The screens tend to result in 100-150 companies, which are assigned to the investment team members for further analysis. • Fundamental analysis includes a review of SEC filings, management presentations, conference calls, and assessment of sell -side reports. • The investment team evaluates companies on the strength and sustainability of their competitive advantages. • An initial position is typically 2%-3% of the portfolio's market value. An average position is typically 5%-6% and the maximum position size is generally 10%. • Polen will review a holding for a sell if there is a potential threat to the company's competitive advantage, if there is degradation in earnings growth, or if valuation becomes unattractive. please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 2 FOCUS LIST REPORT PORTFOLIO TRAITS Range of Holdings 20-30 Max. Position Size TypicaLLy maximum ISO% of index weight Econ Sector Constraints TypicaLLy maximum ISO% of index weight Typical Annual Turnover Approximately 2S% Invests in ADRs 15% maximum Invests in ETFs No Invests in Derivatives No Invests in IPOs No Max. Cash 10% Typical Cash Position <S% Source: Polen Capital OWNERSHIP & PARENT COMPANY Name of Owner Polen Capital Employees Percentage Owned 72% Publicly Traded No Name of Owner Polen Family Trusts Percentage Owned 8% Publicly Traded No Name of Owner W GLobaL Partner Percentage Owned 20% Publicly Traded No Source: Polen Capital ASSETS UNDER MANAGEMENT ($ BILLIONS) YEAR FIRM STRATEGY 2022 S4,833 41,483 2021 82,790 71,7S4 2020 S9,271 52,365 2019 34,784 33,186 2018 20,602 20,230 2017 17,422 17,242 2016 11,251 11,209 Source: Polen Capital Please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 3 FOCUS LIST REPORT Disclosure Section Definitions Russell 1000 Growth - Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price -to -book ratios and higher forecasted growth values. Sub -Styles: Subjective classifications designed to assist with manager selection and performance evaluation based on GIMA's understanding of a manager's long-term investment philosophy and portfolio structuring biases and techniques. At points in time managers may display attributes of other sub -style classifications, and these classifications may change due to changes in the capital markets, evolution of performance benchmarks, industry trends, or changes involving a manager's personnel or process. Traditional Growth: Generally invest in a mix of lower and higher growth companies, portfolios and performance Likely to be more highly correlated to the respective growth benchmark than peers and may demonstrate the flexibility at times to take on characteristics of more Conservative or Aggressive growth peers. Glossary of Terms Active Share — is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index; Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the manager's portfolio versus the weight of each holding in the benchmark index and dividing by two. ADRs — American Depositary Receipts are U.S. dollar denominated forms of equity ownership in non-U.S. companies. These shares are issued against the local market shares held in the home market. ADRs are typically listed on U.S. exchanges such as NYSE, AMEX and NASDAQ. Alpha — measures the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by Beta. A positive Alpha figure indicates the portfolio has performed better than its Beta would predict. A negative Alpha indicates the portfolio's underperformance given the expectations established by the Beta. The accuracy of the Alpha is therefore dependent on the accuracy of the Beta. Alpha is often viewed as a measurement of the value added or subtracted by a portfolio's manager. Beta — measures a portfolio's volatility relative to its benchmark. A portfolio with a Beta higher than 1.0 has historically been more volatile than the benchmark, while a portfolio with a Beta lower than 1.0 has been less volatile. The accuracy of the Beta is dependent on R-Squared. Correlation — measures the degree to which the returns of two securities or indices are related. The range of possible correlations is between 1.0 and -1.0. Positive correlation indicates that returns tend to move in the same direction. Negative correlation indicates that returns tend to move in opposite directions. Zero correlation implies that there is no relationship between the securities' returns. EPS Growth — Forecast — a measure of one year earnings (cash flow or dividends) per share growth from the prior fiscal year (FYO) to the current fiscal year (FY1) using analyst consensus forecasts. Growth is expressed as a percent. The FY1 EPS (earnings per share) growth rate for the portfolio is a weighted average of the forecasts for the individual stocks in the portfolio. EPS Growth — 5 Year Historical — The weighted average annualized earnings per share growth for a portfolio over the past five years. Excess Return — represents the average quarterly total return of the portfolio relative to its benchmark. A portfolio with a positive Excess Return has on average outperformed its benchmark on a quarterly basis. This statistic is obtained by subtracting the benchmark return from the portfoLio's return. Historical EPS Growth - calculated by regressing over time the quarterly earnings per share for the past 20 quarters to determine the share's historical growth rate in earnings. The quarterly historical growth rate for each share is then annualized and the Historical EPS Growth shown in this report is the weighted average of these results. Long Term EPS Growth Rate — analyst consensus of expected annual increase in operating earnings per share over the company's next full business cycle - usually three to five years. The Long Term EPS Growth Rate for the portfolio is a weighted average of the results for the individual stocks in the portfolio. P/E - Forecast 12-Mo. — The price/earnings ratio for the stock based on the most recent closing price divided by the annual mean expected earnings for the current fiscal year (FYI EPS forecast). P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. WE — Trailing 12-Mo. — the current price of a stock divided by the most recent 12 months trailing earnings per share. P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Price -to -Book — price per share divided by book value per share. Price -to -Book for the portfolio is a weighted average of the results for the individual stocks in the portfolio. R-Squared (R2) — represents the percentage of the volatility of returns that is attributable to Tovements of the benchmark. It is a measure of "co -movement" between portfolio returns and benchmark returns. The closer the portfolio's RZ is to 100%, the more closely the portfolio correlates to, or follows, the benchmark. Generally, highly diversified portfolios have higher R percentages. Return on Equity (ROE) — is another profitability ratio which gauges return on investment by measuring how effectually stockholder money is being employed by the company. ROE is calculated by dividing a company's net income by average total equity. Unlike Return on Assets (ROA), ROE considers the degree to which a company uses leveraging, as interest expense paid to creditors is generally deducted from earnings to arrive at net income. ROE for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Morgan Stanley Wealth Management 4 FOCUS LIST REPORT Sharpe Ratio — measures a portfolio's rate of return based on the risk it assumed and is often referred to as its risk -adjusted performance. Using Standard Deviation and returns in excess of the returns of T-bills, it determines reward per unit of risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing risk. Standard Deviation — quantifies the volatility associated with a portfolio's returns. The statistic measures the variation in returns around the mean return. Unlike Beta, which measures volatility relative to the aggregate market, Standard Deviation measures the absolute volatility of a portfobo's return. Tracking Error — represents the Standard Deviation of the Excess Return. This provides a historical measure of the variability of the portfolio's returns relative to its benchmark. A portfolio with a low Tracking Error would have quarterly Excess Returns that have exhibited very Low volatility. Important Disclosures Reoort for Use Only in Investment Advisont Programs This report is only to be used in Morgan Stanley Wealth Management investment advisory programs and not in connection with brokerage accounts. The Global Investment Manager Analysis (GIMA) services Only Apply to Certain Investment AdvisoryPrograms GIMA evaluates certain investment products for the purposes of some — but not aLL — of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA status changes even though it may give notice to clients in other programs. Focus List, Approved List and Tactical Opr)ortunities List.; Watch Policy, GIMA uses two methods to evaluate investment products in applicable advisory programs: Focus (and investment products meeting this standard are described as being on the Focus List) and Approved (and investment products meeting this standard are described as being on the Approved List). In general, Focus entails a more thorough evaluation of an investment product than Approved. Sometimes an investment product may be evaluated using the Focus List process but then placed on the Approved List instead of the Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under either process and will no Longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a'Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved." The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. GIMA may, but is not obligated to, note the Watch status in this report with a "W" or "Watch" next to the "Status" on the cover page. Certain investment products on either the Focus List or Approved List may also be recommended for the Tactical Opportunities List based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change over time. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "GIMA at a Glance". No Obligation to Update Morgan Stanley Wealth Management has no obligation to update you when any information or opinion in this report changes. Strateg)/ Mav Be Available as a Separately Manaeed Account or Mutual Fund Strategies are sometimes available in Morgan Stanley Wealth Management investment advisory programs both in the form of a separately managed account ("SMA") and a mutual fund. These may have different expenses and investment minimums. Your Financial Advisor or Private Wealth Advisor can provide more information on whether any particular strategy is available in more than one form in a particular investment advisory program. Morgan Stanley or Executing Sub -Managers, as applicable, in some of Morgan Stanley's Separately Managed Account ("SMA'D programs may effect transactions through broker -dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: www.moreanstanLev.com/wealth/in estrr�er solutions/pdfs/adv/sotrespons .pdf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), availab eat www.morp-anstanLey.com/ADV, or contact your Financial Advisor / Private Wealth Advisor. Consider Your Own Investment Needs This report is not intended to be a client specific analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities (includes securities of Morgan Stanley, and/or their affiliates if shown in this report). Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant Morgan Stanley Wealth Management 5 FOCUS LIST REPORT information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon Performance and Other Portfolio Information General Past performance does not guarantee future results. There is no guarantee that this investment strategy will work under all market conditions. As a result of recent market activity, current performance may vary from the performance referenced in this report. For mutual funds, the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance information, current to the most recent month -end, please contact the fund directly at the website set out on the cover page of this report. Benchmark index Depending on the composition of your account and your investment objectives, any indices shown in this report may not be an appropriate measure for comparison purposes and are therefore presented for illustration only. Indices are unmanaged. They do not reflect any management, custody, transaction or other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Past performance of indices does not guarantee future results. You cannot invest directly in an index. Performance of indices may be more or less volatile than any investment product. The risk of loss in value of a specific investment (such as with an investment manager or in a fund) is not the same as the risk of Loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment product. Other data Portfolio analysis may be based on information on less than all of the securities held in the portfolio. For equity portfolios, the analysis typically reflects securities representing at Least 95% of portfolio assets. This may differ for other strategies, including those in the fixed income and specialty asset classes, due to availability of portfolio information. Other data in this report is accurate as of the date this report was prepared unless stated otherwise. Data in this report may be calculated by the investment manager, Morgan Stanley Wealth Management or a third party service provider, and may be based on a representative account or a composite of accounts. Securities holdings Holdings are subject to change daily, so any securities discussed in this report may or may not be included in your portfolio if you invest in this investment product. Your portfolio may also include other securities in addition to or instead of any securities discussed in this report. Do not assume that any holdings mentioned were, or will be, profitable. Sources of Data Material in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or timeliness of the data they provide and are not Liable for any damages relating to this data. Asset Class and Other Risks Investing in stocks, mutual funds and exchange -traded funds ('ETFO entails the risks of market volatility. The value of all types of investments may increase or decrease over varying time periods. Besides 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 underperformance, and potential leverage. Some funds also invest in foreign securities, which may involve currency risk. Value and growth investing also carry risks. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. International securities may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets and frontier markets Small- and mid- capitalization companies may Lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than, those of Larger, more established companies. Nondiverslfication: For a portfolio that holds a concentrated or limited number of securities, a decline in the value of these investments would cause the portfolio's overall value to decline to a greater degree than a Less concentrated portfolio. Portfolios that invest a large percentage of assets in only one industry sector (or in only a few sectors) are more vulnerable to price fluctuation than those that diversify among a broad range of sectors. Morgan Stanley Wealth Management 6 FOCUS LIST REPORT 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 diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. The companies identified and investment examples are for illustrative purposes only and should not be deemed a recommendation to purchase, hold or sell any securities or investment products. They are intended to demonstrate the approaches taken by managers who focus on ESG criteria in their investment strategy. There can be no guarantee that a client's account will be managed as described herein. No Tax Advice Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ("Morgan Stanley'), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not "fiduciaries" (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanLey.com/disclosures/doL. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. If any investments in this report are described as "tax free", the income from these investments may be subject to state and local taxes and (if applicable) the federal Alternative Minimum Tax. Realized capital gains on these investments may be subject to federal, state and local capital gains tax. Conflicts of Interest GIMA's goal is to provide professional, objective evaluations in support of the Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, we also believe that investors are entitled to full disclosure of conflicts of interests which could affect the objectivity of our Manager Profiles. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan Stanley Wealth Management or its affiliates. Such persons may have an ongoing business relationship with certain investment managers or mutual fund companies whereby they, Morgan Stanley Wealth Management or its affiliates 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 recommendation is permissible, GIMA is responsible for the opinions expressed by GIMA. Separately, certain strategies managed or sub -advised by us or our affiliates, including but not Limited to MSIM and Eaton Vance Management ("EVM'D and its investment affiliates, may be included in your account. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of other types of conflicts that may be relevant to GIMA's evaluation of managers and funds. In addition, Morgan Stanley Wealth Management, MS&Co., managers and their affiliates provide a variety of services (including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts, and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS&Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. 2023 Morgan Stanley Smith Barney LLC. Member SIPC. RS11681331038798 04/2023 Morgan Stanley Wealth Management 7 Morgan Stanley WEALTH MANAGEMENT Global Investment Manager Analysis I September 14, 2023 Focus List Report AMI Asset Management Large Cap Growth Amy Tonkin Investment Analyst Highlights Amy.Tonkin@morganstanley.com +1 212 296-7295 • Global Investment Manager Analysis (GIMA) notes the differentiated GARP investment approach of identifying growth companies with recurring revenue Strategy Details business models, which AMI believes allows companies to grow at a more consistent and sustainable rate and, in turn, may reduce the volatility of earnings. Investment Style: • Two out of the four investment professionals have long histories managing US Large Cap Growth growth equities; AMI's founder, Bill Tanner, remains involved with the strategy in Sub -Style: an advisory capacity with over 2S years of investment experience. Chris Sessing has been a portfolio manager on the strategy since 2O0S. Conservative Growth • Mr. Sessing and Mr. Tanner are supported by co -PM, Andrew Zamfotis, and a Benchmark: senior research analyst. Russell1000 Growth Index Performance Expectations GIMA Status: • As a result of the investment philosophy's emphasis on high -quality companies Focus List with recurring revenue, the strategy has historically exhibited lower beta, and Product Type: lower up and Lower down capture ratios relative to the Index over the longer Separately Managed Account term. Historically, in addition to a lower beta profile, the strategy's growth and valuation characteristics are Lower than its benchmark, resulting in a Conservative Ticker Symbol: Growth sub -style. N/A • The strategy may perform well on a relative basis when low -quality, momentum www.amiassetmanaRement.com stocks are out of favor. Strategy Description • The portfolio may underperform during periods favoring Information Technology and Consumer Discretionary stocks as the strategy has historically been AMI manages a bottom -up, , fundamental underweight these sectors. strategy focusing onn ccompompanies with recurring revenue business models, strong cash flows and solid balance sheets. AMI defines recurring revenue as a company with a product that has a lifespan less than two years. This report is only to be used in connection with investment advisory programs and not brokerage accounts. Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact your Financial Advisor for a prospectus containing this and other information about the fund. Read it carefully before investing. More information regarding the fees, expenses and performance (but not including the Morgan Stanley Wealth Management program fee) is available at the website noted above. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker -dealer in the United States. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Past performance is not necessarily a guide to future performance. This Manager Analysis Report does not constitute investment advice and the provision of this report itself does not create an investment advisory relationship between you and Morgan Stanley Wealth Management. This is not a "research report" as defined by FINRA Rule 2241 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or its affiliates. INVESTMENT PRODUCTS: NOT FDIC INSURED*NO BANK GUARANTEE* MAY LOSE VALUE @ 2023 Morgan Stanley Smith Barney LLC. Member SIPC. FOCUS LIST REPORT Positive Attributes 100% employee -owned firm, with all three portfolio managers holding equity in the company. An experienced team of portfolio managers who have effectively managed the strategy through various market cycles and market conditions. A distinctive investment process focused on companies with recurring revenue business models; this consistency in revenue has typically resulted in lower earnings volatility and a more defensive posture for the portfolio. Points to Consider • Relatively concentrated portfolio of 30-35 stocks. • Low portfolio turnover of 25%-35%. • The investment process typically results in overweight positions in the Consumer Staples and Health Care sectors, and underweights to the Information Technology and Consumer Discretionary sectors. • Although Mr. Tanner is a named co -portfolio manager, Mr. Sessing has taken on increasing portfolio management and research responsibilities since the late 2000s. Mr. Sessing also serves as the lead portfolio manager for the Small Cap Growth strategy. Areas of Concern Given the small team size and consensus -driven decision - making, the departure of Mr. Sessing would be considered material to GIMA's opinion. GIMA notes Mr. Sessing's relatively low equity ownership as a concern. GIMA will monitor the distribution of equity ownership over time as Mr. Tanner and Peter Mainstain reduce their equity interests. There is business concentration risk for AMI Asset Management, with the majority of the assets concentrated to the Large Cap Growth strategy. Portfolio Management Team & Investment Process • The investment team consists of three portfolio managers: Chris Sessing, Bill Tanner and Andrew Zamfotis. The firms president, Matt Humiston, is an additional member of the investment committee. • CIO, Chris Sessing, has final decision -making authority on the portfolio. • AMI believes that a company with a recurring business model can grow at a more consistent and sustainable growth rate while reducing volatility in earnings. • Ideas are identified through various sources, such as quantitative screens, industry conferences, third -party research and through their long-term experience managing large -cap stocks. • AMI is looking for companies with consistent recurring revenue, attractive growth prospects, strong cash flow, and good balance sheets. Additional criteria include companies that exhibit pricing power, preferably are No. 1 or No. 2 in market share, those with a minimum 10%+ sustainable EPS growth potential, and companies with low debt (typically less than 2.5x EBITDA). • The valuation aspect of their process utilizes a Discounted Cash Flow (DCF) analysis along with P/E and PEG ratios to determine the firm value and whether it is undervalued. If the discount is greater than 10%, the team will consider purchasing the stock. • Risk controls include maximum individual position sizes of 6% at time of purchase and 8% maximum with appreciation as well as portfolio stress testing and correlation scenario testing. Please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 2 FOCUS LIST REPORT PORTFOLIO TRAITS Range of Holdings 30-35 Max. Position Size 6% at cost, 8% with appreciation If benchmark weight >20%, sector max 1.5x Econ Sector Constraints the Index; if benchmark weight 10-20%, sector max 2x the Index, if benchmark weight <10%, sector max 2x the Index + 5% Typical Annual Turnover 25-35% Invests in ADRs Yes Invests in ETFs No Invests in Derivatives No Invests in IPOs No Max. Cash 5% Typical Cash Position 1-2% Source: AMI Asset Management OWNERSHIP & PARENT COMPANY Name of Owner Bill Tanner Percentage Owned 35% Publicly Traded No Ticker Symbol N/A Name of Owner Chris Sessing Percentage Owned 10% Publicly Traded No Ticker Symbol N/A Name of Owner Other employees Percentage Owned SS% Publicly Traded No Ticker Symbol N/A Source: AMI Asset Management ASSETS UNDER MANAGEMENT ($ MILLIONS) YEAR FIRM STRATEGY 2Q 2023 2.162 1,569 2022 1,914 1,348 2021 2,580 1,834 2020 2,467 1,760 2019 2,431 1,717 2018 2,270 1,445 2017 2,707 1,706 Source: AMI Asset Management please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 3 FOCUS LIST REPORT Disclosure Section Definitions Russell 1000 Growth - Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price -to -book ratios and higher forecasted growth values. Sub -Styles - Subjective classifications designed to assist with manager selection and performance evaluation based on GIMA's understanding of a manager's long-term investment philosophy and portfolio structuring biases and techniques. At points in time managers may display attributes of other sub -style classifications, and these classifications may change due to changes in the capital markets, evolution of performance benchmarks, industry trends, or changes involving a manager's personnel or process. Conservative Growth - Growth managers that generally follow a more valuation -sensitive approach and focus on more established companies that frequently have longer earnings histories and greater visibility and perceived sustainability in earnings. Portfolios may display Lower valuation Levels and Less exposure to the highest growth and more speculative companies and performance may display less volatility than the benchmark and peers. Glossary of Terms Active Share — is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index; Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the manager's portfolio versus the weight of each holding in the benchmark index and dividing by two. ADRs — American Depositary Receipts are U.S. dollar denominated forms of equity ownership in non-U.S. companies. These shares are issued against the Local market shares held in the home market. ADRs are typically Listed on U.S. exchanges such as NYSE, AMEX and NASDAQ. Alpha — measures the difference between a portfoho's actual returns and its expected performance, given its level of risk as measured by Beta. A positive Alpha figure indicates the portfolio has performed better than its Beta would predict. A negative Alpha indicates the portfolio's underperformance given the expectations established by the Beta. The accuracy of the Alpha is therefore dependent on the accuracy of the Beta. Alpha is often viewed as a measurement of the value added or subtracted by a portfolio's manager. Beta — measures a portfolio's volatility relative to its benchmark. A portfolio with a Beta higher than 1.0 has historically been more volatile than the benchmark, while a portfolio with a Beta lower than 1.0 has been less volatile. The accuracy of the Beta is dependent on R-Squared. Correlation — measures the degree to which the returns of two securities or indices are related. The range of possible correlations is between 1.0 and -1.0. Positive correlation indicates that returns tend to move in the same direction. Negative correlation indicates that returns tend to move in opposite directions. Zero correlation implies that there is no relationship between the securities' returns. EPS Growth — 5 Year Historical — The weighted average annualized earnings per share growth for a portfolio over the past five years. EPS Growth — Forecast — a measure of one year earnings (cash flow or dividends) per share growth from the prior fiscal year (FYO) to the current fiscal year (FYI) using analyst consensus forecasts. Growth is expressed as a percent. The FYI EPS (earnings per share) growth rate for the portfolio is a weighted average of the forecasts for the individual stocks in the portfolio. Excess Return — represents the average quarterly total return of the portfolio relative to its benchmark. A portfolio with a positive Excess Return has on average outperformed its benchmark on a quarterly basis. This statistic is obtained by subtracting the benchmark return from the portfolio's return. Historical EPS Growth - calculated by regressing over time the quarterly earnings per share for the past 20 quarters to determine the share's historical growth rate in earnings. The quarterly historical growth rate for each share is then annualized and the Historical EPS Growth shown in this report is the weighted average of these results. Information Ratio — represents the Excess Return divided by the Tracking Error. It provides a measure of the historical consistency of the portfolio's outperformance or underperformance relative to its benchmark. A higher, positive Information Ratio suggests that the portfolio's excess returns may have been the result of making measured or moderate bets against the relevant benchmark's risk exposures. Long Term EPS Growth Rate — analyst consensus of expected annual increase in operating earnings per share over the company's next full business cycle - usually three to five years. The Long Term EPS Growth Rate for the portfolio is a weighted average of the results for the individual stocks in the portfolio. P/E - Forecast 12-Mo. — The price/earnings ratio for the stock based on the most recent closing price divided by the annual mean expected earnings for the current fiscal year (FYI EPS forecast). P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. P/E — Trailing 12-Mo. — the current price of a stock divided by the most recent 12 months trailing earnings per share. P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Price -to -Book — price per share divided by book value per share. Price -to -Book for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Return on Equity (ROE) — is another profitability ratio which gauges return on investment by measuring how effectually stockholder money is being employed by the company. ROE is calculated by dividing a company's net income by average total equity. Unlike Return on Assets (ROA), ROE considers the degree to which a company uses leveraging, as interest expense paid to creditors is generally deducted from earnings to Morgan Stanley Wealth Management 4 FOCUS LIST REPORT arrive at net income. ROE for the portfolio is a weighted average of the results for the individual stocks in the portfolio R-Squared (R2) — represents the percentage of the volatility of returns that is attributable to movements of the benchmark. It is a measure of "co -movement" between portfolio returns and benchmark returns. The closer the portfoho's R2 is to 100%, the more closely the portfolio correlates to, or follows, the benchmark. Generally, highly diversified portfolios have higher R2 percentages. Sharpe Ratio — measures a portfolio's rate of return based on the risk it assumed and is often referred to as its risk -adjusted performance. Using Standard Deviation and returns in excess of the returns of T-bills, it determines reward per unit of risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing risk. Standard Deviation — quantifies the volatility associated with a portfolio's returns. The statistic measures the variation in returns around the mean return. Unlike Beta, which measures volatility relative to the aggregate market, Standard Deviation measures the absolute volatility of a portfolio's return. Tracking Error — represents the Standard Deviation of the Excess Return. This provides a historical measure of the variability of the portfolio's returns relative to its benchmark. A portfolio with a Low Tracking Error would have quarterly Excess Returns that have exhibited very Low volatility. Important Disclosures $eport for Use Only in Investment Advisont Programs This report is only to be used in Morgan Stanley Wealth Management investment advisory programs and not in connection with brokerage accounts. The Global Investment Manager Analysis (GIMA) services Only Apply to Certain Investment Advisory Programs GIMA evaluates certain investment products for the purposes of some — but not aLL — of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA status changes even though it may give notice to clients in other programs. Focus List. Approved List and TacticaL Opportunities List; Watch Policy GIMA uses two methods to evaluate investment products in applicable advisory programs: Focus (and investment products meeting this standard are described as being on the Focus List) and Approved (and investment products meeting this standard are described as being on the Approved List). In general, Focus entails a more thorough evaluation of an investment product than Approved. Sometimes an investment product may be evaluated using the Focus List process but then placed on the Approved List instead of the Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under either process and will no Longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a "Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved" The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. GIMA may, but is not obligated to, note the Watch status in this report with a "W" or "Watch" next to the "Status" on the cover page. Certain investment products on either the Focus List or Approved List may also be recommended for the Tactical Opportunities List based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change over time. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "GIMA at a Glance." No Obligation to Update Morgan Stanley Wealth Management has no obligation to update you when any information or opinion in this report changes. Strategi Mav Be Available as a Separately Managed Account or Mutual Fund Strategies are sometimes available in Morgan Stanley Wealth Management investment advisory programs both in the form of a separately managed account CSMAO and a mutual fund. These may have different expenses and investment minimums. Your Financial Advisor or Private Wealth Advisor can provide more information on whether any particular strategy is available in more than one form in a particular investment advisory program. Morgan Stanley or Executing Sub -Managers, as applicable, in some of Morgan Stanley's Separately Managed Account ("SMA") programs may effect transactions through broker -dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: www.�norg nstarLey.com/wealth/investrr�e soLutions/pdfs/adv/sotresponse.gdf. For more information on trading and costs, please refer to the ADV Broc�ure for your program(s), avaiLWe at www.morRanstanley.com/ADV, or contact your Financial Advisor / Private Wealth Advisor. Morgan Stanley Wealth Management 5 FOCUS LIST REPORT Consider Your Own Investment Needs This report is not intended to be a client -specific appropriateness analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities (includes securities of Morgan Stanley, and/or their affiliates if shown in this report). Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider AL relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Performance and Other Portfolio Information General Past performance does not guarantee future results. There is no guarantee that this investment strategy will work under aLL market conditions. As a result of recent market activity, current performance may vary from the performance referenced in this report. For mutual funds, the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance information, current to the most recent month -end, please contact the fund directly at the website set out on the cover page of this report. Benchmark index Depending on the composition of your account and your investment objectives, any indices shown in this report may not be an appropriate measure for comparison purposes and are therefore presented for illustration only. Indices are unmanaged. They do not reflect any management, custody, transaction or other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Past performance of indices does not guarantee future results. You cannot invest directly in an index. Performance of indices may be more or less volatile than any investment product. The risk of loss in value of a specific investment (such as with an investment manager or in a fund) is not the same as the risk of Loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment product.. Other Data Portfolio analysis may be based on information on less than all of the securities held in the portfolio. For equity portfolios, the analysis typically reflects securities representing at Least 95% of portfolio assets. This may differ for other strategies, including those in the fixed income and specialty asset classes, due to availability of portfolio information. Other data in this report is accurate as of the date this report was prepared unless stated otherwise. Data in this report may be calculated by the investment manager, Morgan Stanley Wealth Management or a third party service provider, and may be based on a representative account or a composite of accounts. Securities holdings Holdings are subject to change daily, so any securities discussed in this report may or may not be included in your portfolio if you invest in this investment product. Your portfolio may also include other securities in addition to or instead of any securities discussed in this report. Do not assume that any holdings mentioned were, or will be, profitable. Sources of Data Material in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or timeliness of the data they provide and are not liable for any damages relating to this data. Asset Class and Other Risks Investing in stocks, mutual funds and exchange -traded funds OETFO entails the risks of market volatility. The value of aLL types of investments may increase or decrease over varying time periods. Besides 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 underperformance, and potential leverage. Some funds also invest in foreign securities, which may involve currency risk. Value and growth investing also carry risks. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. International securities may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets and frontier markets. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies Morgan Stanley Wealth Management 6 FOCUS LIST REPORT Health care sector stocks are subject to government regulation, as well as government approval of products and services, which can significantly impact price and availability, and which can also be significantly affected by rapid obsolescence and patent expirations. The returns on a portfolio consisting primarily of environmental, social, andgovernance-aware investments (ESG) may be Lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because Impact Investing criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. No Tax Advice Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ("Morgan Stanley"), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or Legal advice and are not "fiduciaries" `under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanLey.com/disclosures/doL. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. If any investments in this report are described as "tax free", the income from these investments may be subject to state and Local taxes and (if applicable) the federal Alternative Minimum Tax. Realized capital gains on these investments may be subject to federal, state and local capital gains tax. HyperLinks This material may provide the addresses of, or contain hyperLinks to, websites. Except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm has not reviewed the linked site. Equally, except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm takes no responsibility for, and makes no representations or warranties whatsoever as to, the data and information contained therein. Such address or hyperlink (including addresses or hyperLinks to website material of Morgan Stanley Wealth Management) is provided solely for your convenience and information and the content of the Linked site does not in any way form part of this document. Accessing such website or following such link through the material or the website of the firm shaLL be at your own risk and we shall have no Liability arising out of, or in connection with, any such referenced website. By providing links to third -party websites or online pubLication(s) or article(s), Morgan Stanley Smith Barney LLC ("Morgan Stanley") is not implying an affiliation, sponsorship, endorsement, approval, investigation, verification with the third parties or that any monitoring is being done by Morgan Stanley of any information contained within the articles or websites. Morgan Stanley is not responsible for the information contained on the third -party websites or your use of or inability to use such site. Nor do we guarantee their accuracy and completeness. The terms, conditions, and privacy policy of any third -party website may be different from those applicable to your use of any Morgan Stanley website. The information and data provided by the third -party websites or publications are as of the date when they were written and subject to change without notice. Conflicts of Interest GIMA's goal is to provide professional, objective evaluations in support of the Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, we also believe that investors are entitled to full disclosure of conflicts of interests which could affect the objectivity of our Manager Profiles. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan Stanley Wealth Management or its affiliates. Such persons may have an ongoing business relationship with certain investment managers or mutual fund companies whereby they, Morgan Stanley Wealth Management or its affiliates 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 recommendation is permissible, GIMA is responsible for the opinions expressed by GIMA. Separately, certain strategies managed or sub -advised by us or our affiliates, including but not limited to MSIM and Eaton Vance Management ("EVM") and its investment affiliates, may be included in your account. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of other types of conflicts that may be relevant to GIMA's evaluation of managers and funds. In addition, Morgan Stanley Wealth Management, MS&Co., managers and their affiliates provide a variety of services (including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts, and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS&Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. 2023 Morgan Stanley Smith Barney LLC. Member SIPC. R S 11694697479231 09/2023 Morgan Stanley Wealth Management 7 Morgan Stanley WEALTH MANAGEMENT Global Investment Manager Analysis I July 25, 2023 Focus List Report Brown Advisory Sustainable Growth Strategy Highlights The Brown Advisory Large -Cap Sustainable Growth strategy is appropriate for Morgan Stanley's Investing with Impact Platform, a suite of investment strategies that have been evaluated for their financial integrity and return potential, with the added goal of achieving a positive environmental and/or social impact. The portfolio managers at Brown Advisory (Brown), are experienced, long tenured, and supported by a large, centralized team of research analysts. The strategy employs a bottom -up, fundamental approach centered on companies with durable fundamental strengths, compelling valuations as well as sustainable business advantages. The team's emphasis on consistency and sustainability of earnings growth has historically resulted in low beta and lower, or similar, standard deviation compared with its benchmark. As such, GIMA expects that at times, the strategy may tilt toward the Conservative Growth sub - style. The team conducts an Environmental, Social, and Governance (ESG) risk assessment on all securities in the portfolio, which includes meetings with company management and third -party research. Performance Expectations The Brown Advisory Large -Cap Sustainable Growth strategy has historically underperformed in momentum -driven and dividend yield -oriented markets and outperformed during periods favoring quality growth investing. GIMA expects an overweight to Healthcare and Financials, and an underweight to Consumer Staples. As a result, relative performance may be materially impacted by movements in these sectors. The team's emphasis on consistency and sustainability of earnings growth results in low beta, and lower or similar standard deviation compared to its benchmark. Meredith Loughlin Investment Analyst Meredith.Loughlin@morganstanley.com +1 212 296-6178 Strategy Details Investment Style: US Large Cap Growth Sub -Style: Traditional Growth Benchmark: Russell 1000 Growth GIMA Status: Focus List Product Type: Mutual Fund and Separately Managed Account Ticker Symbol: BIAWX (UMA) https://www.brownadvisorNi.com Strategy Description The Brown Advisory Large -Cap Sustainable Growth strategy employs a bottom -up, fundamental approach, seeking companies with durable fundamental strengths, compelling valuations as well as sustainable business advantages. This report is only to be used in connection with investment advisory programs and not brokerage accounts. Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact your Financial Advisor for a prospectus containing this and other information about the fund. Read it carefully before investing. More information regarding the fees, expenses and performance (but not including the Morgan Stanley Wealth Management program fee) is available at the website noted above. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker -dealer in the United States. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Past performance is not necessarily a guide to future performance. This Manager Analysis Report does not constitute investment advice and the provision of this report itself does not create an investment advisory relationship between you and Morgan Stanley Wealth Management. This is not a "research report" as defined by FINRA Rule 2241 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or its affiliates. INVESTMENT PRODUCTS: NOT FDIC INSURED*NO BANK GUARANTEE* MAY LOSE VALUE © 2023 Morgan Stanley Smith Barney LLC. Member SIPC. FOCUS LIST REPORT Positive Attributes • Employees collectively own 70% of the firm and 100% of the voting rights. • Experienced and long -tenured PMs who have managed the strategy since its inception. • Consistent risk -adjusted performance over multiple rolling periods. Brown's central research team has considerable depth and breadth consisting of 38 sector analysts, six ESG analysts and four investigative analysts. • The investigative analysts utilize a journalistic approach and perform more research -intensive projects that help assess a company's investment thesis. Points to Consider • Effective Q2 2023, the max position size changed from S% to 10%. The change was made to allow the PMs more flexibility when expressing conviction in positions. • Concentrated portfolio of 30-40 stocks with low turnover that ranges from 20%-40%. The strategy has historically maintained lower weighted average market capitalization compared to the Russell 1000 Growth index. • The strategy does not implement restriction screening but has historically not invested in fossil fuel companies as those do not meet the team's sustainable business advantages criteria. • The team conducts an ESG risk assessment on all securities in the portfolio, which includes meetings with the company management and third -party research, such as MSCI, ISS and Carbon Disclosure Project (CDP). This research helps the team to better understand: the overall environmental impact and benefits of the company's operations or products/service offerings as well as uncovering risks or controversies associated with the companies. Areas of Concern The two co-PMs are in separate locations, with Ms. Funk Located in Boston, MA as a result of Brown acquiring Winslow Management Company in 2009, and Mr. Powell Located in the Baltimore, MD campus. Portfolio Management Team & Investment Process • The two co-PMs, Karina Funk and David Powell, have managed the strategy since its inception in 2009. Karina Funk joined Brown in 2009 and is the chair of sustainable investing at the firm. David Powell joined Brown in 1999 as an equity research analyst covering the industrial and energy sectors. • The PMs are supported by an 11 member "working group" of analysts, including six sustainability analysts, which are part of the central research team. The PMs utilize the working group as a sounding board. • The team places emphasis on a company's Sustainable Business Advantages (SBA). Companies can embody SBA in three ways: • Revenue Growth — by offering a product or service that helps customers solve for challenging sustainability issues or attracting and retaining business through the sustainable attributes • Cost Improvements — by improving margins from efficient operations, risk mitigation or other measures to increase productivity. • Enhanced Franchise Value — by improving the value of the business franchise via improving customer loyalty or growth via market share to sustainable commitments or positive societal impact. Please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley wealth Management 2 FOCUS LIST REPORT PORTFOLIO TRAITS Range of Holdings Typical Annual Turnover Invests in Derivatives Max. Position Size Econ Sector Constraints Country Constraints Emerging Mkts Constraints Currency Hedging Invests in ADRs Invests in ETFs Invests in IPOs Typical Cash Position Source: Brown Advisory INVESTING WITH IMPACT STRATEGY Investing with Impact Approach Manager Restriction Screens Engagement Impact Reporting Source: Brown Advisory OWNERSHIP & PARENT COMPANY 30-40 Name of Owner Firm colleagues 20 — 40% Percentage Owned 70% No Publicly Traded No 10% Name of Owner Board/private investors No constraints Percentage Owned 30% U.S. equities and ADRs. Publicly Traded No U.S. equities and ADRs. Source: Brown Advisory. Employees own 100% of the voting rights. No Yes, up to 15% ASSETS UNDER MANAGEMENT ($ Billions) No No YEAR FIRM SMA FUND 2 - 5% Q2' 2023 138.1 9.5 7.6 2022 121.7 6.9 5.7 2021 146.5 5.2 7.4 2020 109.4 2.5 4.7 2019 81.4 1.3 1.9 2018 66.3 0.7 0.7 Intentionality (ESG Integration), Influence Source: Brown Advisory No Proxy Voting, Company Dialogue, Summary Reporting on SharehoLder Engagement Efforts Yes Please refer to important information. disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 3 FOCUS LIST REPORT Disclosure Section Definitions Russell 1000 Growth - Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price -to -book ratios and higher forecasted growth values. Sub -Styles - Subjective classifications designed to assist with manager selection and performance evaluation based on GIMA's understanding of a manager's long-term investment philosophy and portfolio structuring biases and techniques. At points in time managers may display attributes of other sub -style classifications, and these classifications may change due to changes in the capital markets, evolution of performance benchmarks, industry trends, or changes involving a manager's personnel or process. Traditional Growth - Generally invest in a mix of lower and higher growth companies, portfolios and performance likely to be more highly correlated to the respective growth benchmark than peers and may demonstrate the flexibility at times to take on characteristics of more Conservative or Aggressive growth peers. Glossary of Terms Active Share — is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index; Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the manager's portfolio versus the weight of each holding in the benchmark index and dividing by two. ADRs — American Depositary Receipts are U.S. dollar denominated forms of equity ownership in non-U.S. companies. These shares are issued against the local market shares held in the home market. ADRs are typically listed on U.S. exchanges such as NYSE, AMEX and NASDAQ. Alpha — measures the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by Beta. A positive Alpha figure indicates the portfolio has performed better than its Beta would predict. A negative Alpha indicates the portfolio's underperformance given the expectations established by the Beta. The accuracy of the Alpha is therefore dependent on the accuracy of the Beta. Alpha is often viewed as a measurement of the value added or subtracted by a portfolio's manager. Beta — measures a portfoLio's volatility relative to its benchmark. A portfolio with a Beta higher than 1.0 has historically been more volatile than the benchmark, while a portfolio with a Beta tower than 1.0 has been less volatile. The accuracy of the Beta is dependent on R-Squared. Correlation — measures the degree to which the returns of two securities or indices are related. The range of possible correlations is between 1.0 and -1.0. Positive correlation indicates that returns tend to move in the same direction. Negative correlation indicates that returns tend to move in opposite directions. Zero correlation implies that there is no relationship between the securities' returns. Credit Quality Rating — weighted average of the assessments of credit worthiness given by credit rating agencies such as Standard & Poor's Ratings Services, Moody's Investors Service, and Fitch Ratings to bonds in the portfolio. Credit rating agencies evaluate issuers and assign ratings based of their opinions of the issuer's ability to pay interest and principal as scheduled. Duration — quantifies the effect of changes in interest rates on the price of a bond or bond portfolio. The longer the duration, the more sensitive the bond or portfolio would be to changes in interest rates. Generally, if interest rates rise, bond prices fall and vice versa. Longer - term bonds carry a longer or higher duration than shorter -term bonds; as such, they would be affected by changing interest rates for a greater period of time if interest rates were to increase. Consequently, the price of a long-term bond would drop significantly as compared to the price of a short-term bond. EPS Growth — 5 Year Historical — The weighted average annualized earnings per share growth for a portfolio over the past five years. EPS Growth — Forecast — a measure of one year earnings (cash flow or dividends) per share growth from the prior fiscal year (FYO) to the current fiscal year (FYI) using analyst consensus forecasts. Growth is expressed as a percent. The FYI EPS (earnings per share) growth rate for the portfolio is a weighted average of the forecasts for the individual stocks in the portfolio. Excess Return — represents the average quarterly total return of the portfolio relative to its benchmark. A portfolio with a positive Excess Return has on average outperformed its benchmark on a quarterly basis. This statistic is obtained by subtracting the benchmark return from the portfoho's return. Historical EPS Growth - calculated by regressing over time the quarterly earnings per share for the past 20 quarters to determine the share's historical growth rate in earnings. The quarterly historical growth rate for each share is then annualized and the Historical EPS Growth shown in this report is the weighted average of these results. Information Ratio — represents the Excess Return divided by the Tracking Error. It provides a measure of the historical consistency of the portfoho's outperformance or underperformance relative to its benchmark. A higher, positive Information Ratio suggests that the portfolio's excess returns may have been the result of making measured or moderate bets against the relevant benchmark's risk exposures. Long Term EPS Growth Rate — analyst consensus of expected annual increase in operating earnings per share over the company's next full business cycle - usually three to five years. The Long Term EPS Growth Rate for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Maturity — the weighted average portfolio length of time until the principal amount of a bond must be repaid. Mortgage -backed securities (MBS) — securities backed by a mortgage loan or a pool of mortgage Loans secured by real property. Investors receive payments of interest and principal that are derived from payments received on the underlying mortgage loans. Morgan Stanley Wealth Management 4 FOCUS LIST REPORT P/E - Forecast 12-Mo. — The price/earnings ratio for the stock based on the most recent closing price divided by the annual mean expected earninggs for the current fiscal year (FYI EPS forecast). P/E for the portfolio is a weighted average of the results for the individual stocks in the portfo`.io. PIE — Trailing 12-Mo. — the current price of a stock divided by the most recent 12 months trailing earnings per share. P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Pass -Through Security — security backed by a package of assets. A servicing intermediary collects the monthly payments from issuers and, after deducting a fee, remits or passes them through to the holders of the pass -through security. Price -to -Book — price per share divided by book value per share. Price -to -Book for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Return on Equity (ROE) — is another profitability ratio which gauges return on investment by measuring how effectually stockholder money is being employed by the company. ROE is calculated by dividing a company's net income by average total equity. Unlike Return on Assets (ROA), ROE considers the degree to which a company uses Leveraging, as interest expense paid to creditors is generally deducted from earnings to arrive at net income. ROE for the portfolio is a weighted average of the results for the individual stocks in the portfolio. R-Squared (R2) — represents the percentage of the volatility of returns that is attributable to movements of the benchmark. It is a measure of "co -movement" between portfolio returns and benchmark returns. The closer the portfoho's R2 is to 100%, the more closely the portfolio correlates to, or follows, the benchmark. Generally, highly diversified portfolios have higher R2 percentages. Sharpe Ratio — measures a portfolio's rate of return based on the risk it assumed and is often referred to as its risk -adjusted performance. Using Standard Deviation and returns in excess of the returns of T-bills, it determines reward per unit of risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing risk. Standard Deviation — quantifies the volatility associated with a portfolio's returns. The statistic measures the variation in returns around the mean return. Unlike Beta, which measures volatility relative to the aggregate market, Standard Deviation measures the absolute volatility of a portfoho's return. Tracking Error — represents the Standard Deviation of the Excess Return. This provides a historical measure of the variability of the portfolio's returns relative to its benchmark. A portfolio with a low Tracking Error would have quarterly Excess Returns that have exhibited very Low volatility. Important Disclosures Report for Use Only in Investment Advisont Programs This report is only to be used in Morgan Stanley Wealth Management investment advisory programs and not in connection with brokerage accounts. The GLobaL Investment Manager Analysis (GIMA) services Only Apply to Certain Investment Advisory Programs GIMA evaluates certain investment products for the purposes of some — but not aLL — of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA status changes even though it may give notice to clients in other programs. Focus List. Approved List and Tactical Opportunities List, Watch Policy GIMA uses two methods to evaluate investment products in applicable advisory programs: Focus (and investment products meeting this standard are described as being on the Focus List) and Approved (and investment products meeting this standard are described as being on the Approved List). In general, Focus entails a more thorough evaluation of an investment product than Approved. Sometimes an investment product may be evaluated using the Focus List process but then placed on the Approved List instead of the Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under either process and will no Longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a "Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved" The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. GIMA may, but is not obligated to, note the Watch status in this report with a "W" or "Watch" next to the "Status" on the cover page. Certain investment products on either the Focus List or Approved List may also be recommended for the Tactical Opportunities List based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change over time. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "GIMA at a Glance." No Obligation to Update Morgan Stanley Wealth Management 5 FOCUS LIST REPORT Morgan Stanley Wealth Management has no obligation to update you when any information or opinion in this report changes Strategv Mav Be Available as a Separately Managed Account or Mutual Fund Strategies are sometimes available in Morgan Stanley Wealth Management investment advisory programs both in the form of a separately managed account C'SMA") and a mutual fund. These may have different expenses and investment minimums. Your Financial Advisor or Private Wealth Advisor can provide more information on whether any particular strategy is available in more than one form in a particular investment advisory program. Morgan Stanley or Executing Sub -Managers, as appLicable, in some of Morgan Stanley`s Separately Managed Account ("SMA") programs may effect transactions through broker -dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: www.morRanstanLev.com/weaLth/investmentsoLutions/ndfs/adv/so resnons -.ndf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), available at www.morggnstanLev.com/ADV, or contact your Financial Advisor / Private Wealth Advisor. Consider Your Own Investment Needs This report is not intended to be a client -specific appropriateness analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities (includes securities of Morgan Stanley, and/or their affiliates if shown in this report). Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Performance and Other Portfolio Information General Past performance does not guarantee future results. There is no guarantee that this investment strategy will work under aLL market conditions. As a result of recent market activity, current performance may vary from the performance referenced in this report. For mutual funds, the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance information, current to the most recent month -end, please contact the fund directly at the website set out on the cover page of this report. Benchmark index Depending on the composition of your account and your investment objectives, any indices shown in this report may not be an appropriate measure for comparison purposes and are therefore presented for illustration only. Indices are unmanaged. They do not reflect any management, custody, transaction or other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Past performance of indices does not guarantee future results. You cannot invest directly in an index. Performance of indices may be more or Less volatile than any investment product. The risk of Loss in value of a specific investment (such as with an investment manager or in a fund) is not the same as the risk of loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment product.. Other Data Portfolio analysis may be based on information on Less than aLL of the securities held in the portfolio. For equity portfolios, the analysis typically reflects securities representing at least 95% of portfolio assets. This may differ for other strategies, including those in the fixed income and specialty asset classes, due to availability of portfolio information. Other data in this report is accurate as of the date this report was prepared unless stated otherwise. Data in this report may be calculated by the investment manager, Morgan Stanley Wealth Management or a third party service provider, and may be based on a representative account or a composite of accounts. Securities holdings Holdings are subject to change daily, so any securities discussed in this report may or may not be included in your portfolio if you invest in this investment product. Your portfolio may also include other securities in addition to or instead of any securities discussed in this report. Do not assume that any holdings mentioned were, or will be, profitable. Sources of Data Material in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or timeliness of the data they provide and are not liable for any damages relating to this data. Asset Class and Other Risks Morgan Stanley Wealth Management 6 FOCUS LIST REPORT Investing in stocks, mutual funds and exchange -traded funds OETFs) entails the risks of market volatility. The value of all types of investments may increase or decrease over varying time periods. Besides 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 underperformance, and potential leverage. Some funds also invest in foreign securities, which may involve currency risk. Value and growth investing also carry risks. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. International securities may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets and frontier markets. Small- and mid- capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than, those of Larger, more established companies. Companies paying dividends can reduce or cut payouts at any time. 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 @[Lows the issuer to retain the right to redeem the debt, fully or partially, before the scheduled maturity date. Proceeds from sales prior to maturity may be more or less than originally invested due to changes in market conditions or changes in the credit quality of the issuer. Ultra -short bond funds generally invest in fixed income securities with very short maturities, typically less than one year. They are not money market funds. While money market funds attempt to maintain a stable net asset value, an ultra -short bond fund's net asset value will fluctuate, which may result in the loss of the principal amount invested. They are therefore subject to the risks associated with debt securities such as credit and interest rate risk. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. Mortgage -backed securities CMBS"), which include collateralized mortgage obligations ("CMOs'), also referred to as real estate mortgage investment conduits ("REMICO, may not be appropriate for all investors. There is the possibility of early return of principal due to mortgage prepayments, which can reduce expected yield and result in reinvestment risk. Conversely, return of principal may be slower than initial prepayment speed assumptions, extending the average life of the security up to its listed maturity date (also referred to as extension risk). Additionally, the underlying collateral supporting MBS may default on principal and interest payments. Investments in subordinated MBS involve greater credit risk of default than the senior classes of the same issue. MBS are also sensitive to interest rate changes which can negatively impact the market value of the security. During times of heightened volatility, MBS can experience greater levels of illiquidity and Larger price movements. Asset -backed securities generally decrease in value as a result of interest rate increases, but may benefit less than other fixed -income securities from declining interest rates, principally because of prepayments. Interest on municipal bonds is generally exempt from federal income tax; however, some bonds may be subject to the alternative minimum tax (AMT). Typically, state tax -exemption applies if securities are issued within one's state of residence and, if applicable, local tax -exemption applies if securities are issued within one's city of residence. Treasury inflation Protection Securities'(TIPS)cou on payments and underlying principal are automatically increased to compensate for inflation by tracking the consumer price index (CPU. While the real rate of return is guaranteed, TIPS tend to offer a low return. Because the return of TIPS is linked to inflation, TIPS may significantly underperform versus conventional U.S. Treasuries in times of low inflation. 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 diversified or where decisions are based solely on investment considerations. Because Impact Investing criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. Derivatives, in general, involve special risks and costs that may result in losses. The successful use of derivatives requires sophisticated management, in order to manage and analyze derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. In addition, correlation between the particular derivative and an asset or liability of the manager may not be what the investment manager expected. Some derivatives are "leveraged" and therefore may magnify or otherwise increase investment losses. Other risks include the potential inability to terminate or sell derivative positions, as a result of counterparty failure to settle or other reasons. Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets. No Tax Advice Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ("Morgan StanleyD, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or Legal advice and are not "fiduciaries" (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as Morgan Stanley Wealth Management 7 FOCUS LIST REPORT described at www.morganstanLey.com/discLosures/doL. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. If any investments in this report are described as "tax free", the income from these investments may be subject to state and local taxes and (if applicable) the federal Alternative Minimum Tax. Realized capital gains on these investments may be subject to federal, state and Local capital gains tax. Hyperlinks This material may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm has not reviewed the linked site. Equally, except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm takes no responsibility for, and makes no representations or warranties whatsoever as to, the data and information contained therein. Such address or hyperlink (including addresses or hyperlinks to website material of Morgan Stanley Wealth Management) is provided solely for your convenience and information and the content of the linked site does not in any way form part of this document. Accessing such website or following such link through the material or the website of the firm shall be at your own risk and we shall have no Liability arising out of, or in connection with, any such referenced website. By providing links to third -party websites or online publications) or article(s), Morgan Stanley Smith Barney LLC ("Morgan StanleyO is not implying an affiLiation, sponsorship, endorsement, approval, investigation, verification with the third parties or that any monitoring is being done by Morgan Stanley of any information contained within the articles or websites. Morgan Stanley is not responsible for the information contained on the third -party websites or your use of or inability to use such site. Nor do we guarantee their accuracy and completeness. The terms, conditions, and privacy policy of any third -party website may be different from those applicable to your use of any Morgan Stanley website. The information and data provided by the third -party websites or publications are as of the date when they were written and subject to change without notice. Conflicts of Interest GIMA's goal is to provide professional, objective evaluations in support of the Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, we also believe that investors are entitled to full disclosure of conflicts of interests which could affect the objectivity of our Manager Profiles. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan Stanley Wealth Management or its affiliates. Such persons may have an ongoing business relationship with certain investment managers or mutual fund companies whereby they, Morgan Stanley Wealth Management or its affiliates 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 recommendation is permissible, GIMA is responsible for the opinions expressed by GIMA. Separately, certain strategies managed or sub -advised by us or our affiliates, including but not limited to MSIM and Eaton Vance Management ("EVM") and its investment affiliates, may be included in your account. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of other types of conflicts that may be relevant to GIMA's evaluation of managers and funds. In addition, Morgan Stanley Wealth Management, MS&Co., managers and their affiliates provide a variety of services (including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts, and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS&Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. 2023 Morgan Stanley Smith Barney LLC. Member SIPC. RS11690310042046 07/2023 Morgan Stanley Wealth Management 8 Morgan Stanley WEALTH MANAGEMENT Global Investment Manager Analysis I August 29, 2023 Focus List Report ClearBridge Large Cap Growth SMA / Fund Highlights Global Investment Analysis (GIMA) has a favorable view of the long -tenured, experienced investment team, which includes Peter Bourbeau and Margaret Vitrano. Mr. Bourbeau has served as co -portfolio manager for the strategy since 2003 and Ms. Vitrano since 2012; they joined the firm in 1992 and 1997, respectively. GIMA finds the investment approach flexible as the team seeks different types of growth stocks, which they categorize as Cyclical Growth, Stable Growth, and Select Growth. As a result of their growth-at-a-reasonab le -price (GARP) investment process and portfolio construction approach, the products have generated attractive excess and risk -adjusted (alpha) performance across multiple market environments over the tenure of the current co -portfolio managers. Performance Expectations The portfolio is structured in a way that seeks to provide diversification across different types of growth stocks (Cyclical Growth, Stable Growth and Select Growth), with Stable Growth the largest allocation. This diversified structure has helped the strategy generally perform well in multiple market environments. As a result of the investment philosophy's emphasis on high -quality companies with stable growth, the strategy historically has exhibited lower beta, and lower up-market and lower down-market capture ratios relative to its index over the longer term. Positive Attributes • GIMA considers the two co -portfolio managers experienced and tenured investment professionals, who are supported by two dedicated analysts. • The centralized research team supporting the strategy consists of 17 research analysts organized as sector specialists and averaging approximately 18 years of investment experience. Keisha Barrow Investment Analyst Keisha.Barrow@morganstanley.com +1 212 296-918S Strategy Details Investment Style: US Large Cap Growth Sub -Style: Traditional Growth Benchmark: Russell 1000 Growth Index GIMA Status: Focus List Product Type: Separately Managed Account & Mutual Fund Ticker Symbol: SBLYX (UMA) https://www.frankLintempLeton.com/ Strategy Description ClearBridge Large Cap Growth utilizes a GARP framework and seeks high -quality stocks by emphasizing companies with consistent growth of capital and lower volatility, and attempts to outperform over a full market cycle. This report is only to be used in connection with investment advisory programs and not brokerage accounts. Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact your Financial Advisor for a prospectus containing this and other information about the fund. Read it carefully before investing. More information regarding the fees, expenses and performance (but not including the Morgan Stanley Wealth Management program fee) is available at the website noted above. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker -dealer in the United States. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Past performance is not necessarily a guide to future performance. This Manager Analysis Report does not constitute investment advice and the provision of this report itself does not create an investment advisory relationship between you and Morgan Stanley Wealth Management. This is not a "research report" as defined by FINRA Rule 2241 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or its affiliates. INVESTMENT PRODUCTS: NOT FDIC INSURED*NO BANK GUARANTEE* MAY LOSE VALUE © 2023 Morgan Stanley Smith Barney LLC. Member SIPC. FOCUS LIST REPORT Points to Consider • GIMA considers this strategy to have a more Traditional to Conservative Growth tilt, given its bias toward high - quality stocks with large market capitalizations, and a GARP investment framework. • Despite the team sticking to their process, GIMA has taken note of the strategy's underperformance in recent calendar year periods; however, the portfolio has outperformed during the YTD period through June 30, 2023. • Historically, the portfolio has had an underweight in Technology. • Low turnover ranging between 15% and 30%. Areas of Concern • The two co -portfolio managers are in separate Locations, as Peter Bourbeau relocated to Nashville, Tennessee, from New York in late 2013, and Ms. Vitrano remains in New York. Portfolio Management Team & Investment Process • The strategy is managed by co -portfolio managers Peter Bourbeau and Margaret Vitrano. Mr. Bourbeau has been associated with the strategy since 2003, while Ms. Vitrano assumed co -portfolio management responsibilities in 2012. • The portfolio managers are supported by two dedicated analysts, in addition to CLearBridge's fundamental equity research team, which supports all strategies across the firm. • Mr. Bourbeau and Ms. Vitrano make aLL final purchase and sell decisions. • CLearBridge seeks long-term growth of capital utilizing a fundamental bottom -up investment process within a GARP framework. • The process begins with an investable universe of companies with market capitalizations similar to their benchmark, the Russell 1000 Growth Index. • Fundamental and business model analysis seeks to identify companies with competitive advantages that have the potential to sustain a high growth rate and maintain margins. • The team focuses primarily on profitability (revenue mix, margins, pricing, competition), leverage (management quality, distribution strategy), and management execution (financial strategy, capital allocation). • The next step of the investment process is valuation. The team believes market -based multiples and discounted cash flow approaches are related by the same value determinants: growth rate, reinvestment rate, and discount rate (risk). CLearBridge utilizes relative valuation frameworks that are typically sector -specific and market - driven. Further, growth rates are determined by returns on capital, reinvestment rates, and competitive advantage. • In terms of portfolio construction, a multi -tiered approach capitalizes on the team's highest -conviction ideas through active weighting. • Portfolio construction seeks diversification across different types of growth stocks, which CLearBridge categorizes as Cyclical Growth, Stable Growth, and Select Growth, with Stable Growth having the larger number of positions. • Portfolio managers monitor and manage risk by controlling sector, industry and security exposures on an absolute and relative basis. • The sell criteria include deteriorating fundamentals, when the original investment thesis has changed, a company fails to meet growth expectations, a better idea is found, or the risk/reward is no longer favorable. Please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 2 FOCUS LIST REPORT PORTFOLIO TRAITS OWNERSHIP & PARENT COMPANY Range of Holdings 40-50 Name of Owner Franklin Resources, Inc. Max. Position Size +/ 5% vs. Index; unless > 10% in Index Percentage Owned 100% Econ Sector Constraints +/ 50% vs. Index Publicly Traded Yes Typical Annual Turnover 15-30% Ticker Symbol BEN Invests in ADRs Yes, limited to 10% Source: Franklin Templeton Invests in ETFs No Invests in Derivatives No ASSETS UNDER MANAGEMENT ($ MILLIONS) Invests in IPOs No Max. Cash 5% YEAR FIRM SMA FUND Typical Cash Position <5% 2Q23 165,352 39,587 17,767 Source: Franklin Templeton 2022 151,275 34,319 13,387 2021 208,338 62,516 25,963 2020 177,009 55,308 24,798 2019 154,585 42,825 19,996 2018 125,457 28,468 13,063 2017 136,992 24,401 12,009 Source: Franklin Templeton Please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 3 FOCUS LIST REPORT Disclosure Section Definitions Russell 1000 Growth - Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price -to -book ratios and higher forecasted growth values. Sub -Styles - Subjective classifications designed to assist with manager selection and performance evaluation based on GIMA's understanding of a manager's long-term investment philosophy and portfolio structuring biases and techniques. At points in time managers may display attributes of other sub -style classifications, and these classifications may change due to changes in the capital markets, evolution of performance benchmarks, industry trends, or changes involving a manager's personnel or process. Traditional Growth - Generally invest in a mix of lower and higher growth companies, portfolios and performance likely to be more highly correlated to the respective growth benchmark than peers and may demonstrate the flexibility at times to take on characteristics of more Conservative or Aggressive growth peers. Glossary of Terms Active Share — is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index; Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the manager's portfolio versus the weight of each holding in the benchmark index and dividing by two. ADRs — American Depositary Receipts are U.S. dollar denominated forms of equity ownership in non-U.S. companies. These shares are issued against the local market shares held in the home market. ADRs are typically listed on U.S. exchanges such as NYSE, AMEX and NASDAQ. Alpha — measures the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by Beta. A positive Alpha figure indicates the portfolio has performed better than its Beta would predict. A negative Alpha indicates the portfolio's underperformance given the expectations established by the Beta. The accuracy of the Alpha is therefore dependent on the accuracy of the Beta. Alpha is often viewed as a measurement of the value added or subtracted by a portfolio's manager. Beta — measures a portfolio's volatility relative to its benchmark. A portfolio with a Beta higher than 1.0 has historically been more volatile than the benchmark, while a portfolio with a Beta lower than 1.0 has been less volatile. The accuracy of the Beta is dependent on R-Squared. Correlation — measures the degree to which the returns of two securities or indices are related. The range of possible correlations is between 1.0 and -1.0. Positive correlation indicates that returns tend to move in the same direction. Negative correlation indicates that returns tend to move in opposite directions. Zero correlation implies that there is no relationship between the securities' returns. EPS Growth — 5 Year Historical — The weighted average annualized earnings per share growth for a portfolio over the past five years. EPS Growth — Forecast — a measure of one year earnings (cash flow or dividends) per share growth from the prior fiscal year (FYO) to the current fiscal year (FYI) using analyst consensus forecasts. Growth is expressed as a percent. The FYI EPS (earnings per share) growth rate for the portfolio is a weighted average of the forecasts for the individual stocks in the portfolio. Excess Return — represents the average quarterly total return of the portfolio relative to its benchmark. A portfolio with a positive Excess Return has on average outperformed its benchmark on a quarterly basis. This statistic is obtained by subtracting the benchmark return from the portfoLio's return. Historical EPS Growth - calculated by regressing over time the quarterly earnings per share for the past 20 quarters to determine the share's historical growth rate in earnings. The quarterly historical growth rate for each share is then annualized and the Historical EPS Growth shown in this report is the weighted average of these results. Information Ratio — represents the Excess Return divided by the Tracking Error. It provides a measure of the historical consistency of the portfolio's outperformance or underperformance relative to its benchmark. A higher, positive Information Ratio suggests that the portfolio's excess returns may have been the result of making measured or moderate bets against the relevant benchmark's risk exposures. Long Term EPS Growth Rate — analyst consensus of expected annual increase in operating earnings per share over the company's next full business cycle - usually three to five years. The Long Term EPS Growth Rate for the portfolio is a weighted average of the results for the individual stocks in the portfolio. P/E - Forecast 12-Mo. — The price/earnings ratio for the stock based on the most recent closing price divided by the annual mean expected earnings for the current fiscal year (FYI EPS forecast). P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. WE — Trailing 12-Mo. — the current price of a stock divided by the most recent 12 months trailing earnings per share. P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Price -to -Book — price per share divided by book value per share. Price -to -Book for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Return on Equity (ROE) — is another profitability ratio which gauges return on investment by measuring how effectually stockholder money is being employed by the company. ROE is calculated by dividing a company's net income by average total equity. Unlike Return on Assets (ROA), ROE considers the degree to which a company uses leveraging, as interest expense paid to creditors is generally deducted from earnings to arrive at net income. ROE for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Morgan Stanley Wealth Management 4 FOCUS LIST REPORT R-Squared (R2) — represents the percentage of the volatility of returns that is attributable to movements of the benchmark. It is a measure of "co -movement" between portfolio returns and benchmark returns. The closer the portfolio's R2 is to 100%, the more closely the portfolio correlates to, or follows, the benchmark. Generally, highly diversified portfolios have higher R2 percentages. Sharpe Ratio — measures a portfolio's rate of return based on the risk it assumed and is often referred to as its risk -adjusted performance. Using Standard Deviation and returns in excess of the returns of T-bills, it determines reward per unit of risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing risk. Standard Deviation — quantifies the volatility associated with a portfolio's returns. The statistic measures the variation in returns around the mean return. Unlike Beta, which measures volatility relative to the aggregate market, Standard Deviation measures the absolute volatility of a portfolio's return. Tracking Error — represents the Standard Deviation of the Excess Return. This provides a historical measure of the variability of the portfolio's returns relative to its benchmark. A portfolio with a Low Tracking Error would have quarterly Excess Returns that have exhibited very Low volatility. Important Disclosures Report for Use OnLv in Investment Advisont Programs This report is only to be used in Morgan Stanley Wealth Management investment advisory programs and not in connection with brokerage accounts. The Global Investment Manaeer AnaLvsis (GIMA) services Only AnpLy to Certain Investment AdvisoryPrograms GIMA evaluates certain investment products for the purposes of some — but not aLL — of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA status changes even though it may give notice to clients in other programs. Focus List, Aporoved List and Tactical O000rtunities List; Watch Policy GIMA uses two methods to evaluate investment products in applicable advisory programs: Focus (and investment products meeting this standard are described as being on the Focus List) and Approved (and investment products meeting this standard are described as being on the Approved List). In general, Focus entails a more thorough evaluation of an investment product than Approved. Sometimes an investment product may be evaluated using the Focus List process but then placed on the Approved List instead of the Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under either process and will no Longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a "Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved." The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. GIMA may, but is not obligated to, note the Watch status in this report with a "W" or "Watch" next to the "Status" on the cover page. Certain investment products on either the Focus List or Approved List may also be recommended for the Tactical Opportunities List based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change over time. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "GIMA at a Glance." No Obligation to Update Morgan Stanley Wealth Management has no obligation to update you when any information or opinion in this report changes Strategv Mav Be Available as a Separately Managed Account or Mutual Fund Strategies are sometimes available in Morgan Stanley Wealth Management investment advisory programs both in the form of a separately managed account ("SMA") and a mutual fund. These may have different expenses and investment minimums. Your Financial Advisor or Private Wealth Advisor can provide more information on whether any particular strategy is available in more than one form in a particular investment advisory program. Morgan Stanley or Executing Sub -Managers, as applicable, in some of Morgan Stanley's Separately Managed Account ("SMA'D programs may effect transactions through broker -dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not aLL, of their trades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: www.morganstanLey.com/wealth/ingest rye solutions/pdfs/adv/so .response.pdf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), available at www.morganstan�ev.co�DV, or contact your Financial Advisor / Private Wealth Advisor. Consider Your Own Investment Needs Morgan Stanley Wealth Management 5 FOCUS LIST REPORT This report is not intended to be a client -specific appropriateness analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities (includes securities of Morgan Stanley, and/or their affiliates if shown in this report). Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Performance and Other Portfolio Information General Past performance does not guarantee future results. There is no guarantee that this investment strategy will work under all market conditions. As a result of recent market activity, current performance may vary from the performance referenced in this report. For mutual funds, the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance information, current to the most recent month -end, please contact the fund directly at the website set out on the cover page of this report. Benchmark index Depending on the composition of your account and your investment objectives, any indices shown in this report may not be an appropriate measure or comparison purposes and are therefore presented for illustration only. Indices are unmanaged. They do not reflect any management, custody, transaction or other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Past performance of indices does not guarantee future results. You cannot invest directly in an index. Performance of indices may be more or less volatile than any investment product. The risk of loss in value of a specific investment (such as with an investment manager or in a fund) is not the same as the risk of Loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment product.. Other Data Portfolio analysis may be based on information on less than all of the securities held in the portfolio. For equity portfolios, the analysis typically reflects securities representing at Least 95% of portfolio assets. This may differ for other strategies, including those in the fixed income and specialty asset classes, due to availability of portfolio information. Other data in this report is accurate as of the date this report was prepared unless stated otherwise. Data in this report may be calculated by the investment manager, Morgan Stanley Wealth Management or a third party service provider, and may be based on a representative account or a composite of accounts. Securities holdings Holdings are subject to change daily, so any securities discussed in this report may or may not be included in your portfolio if you invest in this investment product. Your portfolio may also include other securities in addition to or instead of any securities discussed in this report. Do not assume that any holdings mentioned were, or will be, profitable. Sources of Data Material in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or timeliness of the data they provide and are not liable for any damages relating to this data. Asset Class and Other Risks Investing in stocks, mutual funds and exchange -traded funds ICETFO entails the risks of market volatility. The value of all types of investments may increase or decrease over varying time periods. Besides 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 underperformance, and potential leverage. Some funds also invest in foreign securities, which may involve currency risk. Value and growth investing also carry risks. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Small- and mid- capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than, those of Larger, more established companies. Companies paying dividends can reduce or cut payouts at any time. International securities may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency Morgan Stanley Wealth Management 6 FOCUS LIST REPORT exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets and frontier markets. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Technology stocks may be especially volatile. 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 diversified or where decisions are based solely on investment considerations. Because Impact Investing criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. No Tax Advice Tax Laws are complex and subject to change. Morgan Stanley Smith Barney LLC (".Morgan Stanley'D, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or Legal advice and are not "fiduciaries" (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanLey.com/disclosures/doL. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. If any investments in this report are described as "tax free", the income from these investments may be subject to state and local taxes and (if applicable) the federal Alternative Minimum Tax. Realized capital gains on these investments may be subject to federal, state and Local capital gains tax. Hyperlinks This material may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm has not reviewed the Linked site. Equally, except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm takes no responsibility for, and makes no representations or warranties whatsoever as to, the data and information contained therein. Such address or hyperlink (including addresses or hyperlinks to website material of Morgan Stanley Wealth Management) is provided solely for your convenience and information and the content of the Linked site does not in any way form part of this document. Accessing such website or following such link through the material or the website of the firm shall be at your own risk and we shall have no liability arising out of, or in connection with, any such referenced website. By providing links to third -party websites or online publications) or article(s), Morgan Stanley Smith Barney LLC ("Morgan Stanley is not implying an affiliation, sponsorship, endorsement, approval, investigation, verification with the third parties or that any monitoring is being done by Morgan Stanley of any information contained within the articles or websites. Morgan Stanley is not responsible for the information contained on the third -party websites or your use of or inability to use such site. Nor do we guarantee their accuracy and completeness. The terms, conditions, and privacy policy of any third -party website may be different from those applicable to your use of any Morgan Stanley website. The information and data provided by the third -party websites or publications are as of the date when they were written and subject to change without notice. Conflicts of Interest GIMA's goal is to provide professional, objective evaluations in support of the Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, we also believe that investors are entitled to full disclosure of conflicts of interests which could affect the objectivity of our Manager Profiles. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan Stanley Wealth Management or its affiliates. Such persons may have an ongoing business relationship with certain investment managers or mutual fund companies whereby they, Morgan Stanley Wealth Management or its affiliates 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 recommendation is permissible, GIMA is responsible for the opinions expressed by GIMA. Separately, certain strategies managed or sub -advised by us or our affiliates, including but not limited to MSIM and Eaton Vance Management ("EVM") and its investment affiliates, may be included in your account. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of other types of conflicts that may be relevant to GIMA's evaluation of managers and funds. In addition, Morgan Stanley Wealth Management, MS&Co., managers and their affiliates provide a variety of services (including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts, and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS&Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. Q 2023 Morgan Stanley Smith Barney LLC. Member SIPC. RS11693344152990 08/2023 Morgan Stanley Wealth Management 7 Morgan Stanley WEALTH MANAGEMENT Global Investment Manager Analysis I September 29, 2023 Focus List Report Sawgrass Diversified Large Cap Growth Equity Keisha Barrow Investment Analyst Highlights Keisha.Barrow@morganstanley.com • Sawgrass Asset Management (Sawgrass) is a 100% employee -owned boutique Strategy Details asset management firm with a long history of managing growth equities since its founding in 1998. Investment Style: • Global Investment Manager Analysis (GIMA) considers the investment team, led US Large Cap Growth by Martin LaPrade, experienced with an average 26 years of investment experience. It is also long -tenured, as three of the eight investment professionals Sub -Style: on the equity team have worked together since the firm's inception in 1998. Conservative Growth • Sawgrass' investment approach focuses on quality companies that it views as Benchmark: having more stable growth, and trading at attractive valuations (e.g., growth at a Russell 1000 Growth Index reasonable price, or GARP). • GIMA expects the strategy to exhibit a lower beta and lower downside capture, GIMA Status: and a lower upside capture relative to the benchmark over multiple rolling Focus List periods. • GIMA notes the low level of strategy assets compared to peers in the large cap Product Type: growth space, particularly managers with a higher growth profile; however, the Separately Managed Account strategy has experienced net asset inflows in recent periods. Ticker Symbol: Performance Expectations N/A www.saw-Rrass.com With a Lower risk profile (beta, standard deviation) relative to the Russell 1000 Strategy Description Growth Index, the strategy has historically tended to perform better on a relative basis in weaker equity market environments (e.g., 2022) and generally The Sawgrass Diversified Large Cap underperformed in market environments favoring more aggressive growth stocks Growth portfolio focuses on companies (e.g., 2020). with above -average appreciation Given the historical underweights to Information Technology and the overweights potential through an investment process to Consumer Staples and Industrials sectors, strategy performance may be that identifies companies with more impacted when results in these sectors deviate materially from the benchmark. consistent growth profiles, higher earnings quality, and reasonable valuations. The process combines both quantitative models and bottom -up fundamental research. This report is only to be used in connection with investment advisory programs and not brokerage accounts. Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact your Financial Advisor for a prospectus containing this and other information about the fund. Read it carefully before investing. More information regarding the fees, expenses and performance (but not including the Morgan Stanley Wealth Management program fee) is available at the website noted above. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker -dealer in the United States. This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Past performance is not necessarily a guide to future performance. This Manager Analysis Report does not constitute investment advice and the provision of this report itself does not create an investment advisory relationship between you and Morgan Stanley Wealth Management. This is not a "research report" as defined by FINRA Rule 2241 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or its affiliates. INVESTMENT PRODUCTS: NOT FDIC INSURED*NO BANK GUARANTEE* MAY LOSE VALUE © 2023 Morgan Stanley Smith Barney LLC. Member SIPC. FOCUS LIST REPORT Positive Attributes Sawgrass has a long history of managing growth equity assets dating back to the firm's founding in 1998. The team implements the same investment approach across three strategies. The firm is 100% employee -owned, including the ownership of three portfolio managers. The investment team is seasoned, with an average 26 years of investment experience, and long -tenured, as three of the seven investment professionals on the Equity team have worked together since the firm's inception in 1998. Points to Consider As a result of the portfolio's emphasis on companies with higher -quality attributes, the strategy has historically exhibited lower beta and downside capture, as well as Lower upside capture over multiple rolling periods. Further, the strategy's investment approach results in a portfolio with valuation multiples that have historically been in -line with to below the benchmark, and growth metrics that have been below the benchmark. These portfolio characteristics are consistent with a Conservative Growth sub -style. Areas of Concern • Given that Mr. LaPrade is the lead portfolio manager and has managed the portfolio since its inception, GIMA may reevaluate the status of this product, should Mr. LaPrade no longer manage it. Portfolio Management Team & Investment Process • The equity investment team comprises eight investment professionals, which includes the four portfolio managers (PMs) of the Diversified Large Growth Equity strategy, the other equity PMs and an equity trader. • Martin LaPrade has served as the lead PM for the portfolio since its inception in 1998. Mr. LaPrade has final decision -making authority for all purchases and sales. • Marc Davis became a PM for the strategy in 2012. Prior to that, Mr. Davis performed security analysis since 2001. • Anthony Brooks joined Sawgrass in 2012 as a senior portfolio analyst and became a portfolio manager on the strategy in 2022. • Liridon Gila started at Sawgrass in 2008 and took on the co -CIO role in the middle of 2022. While Mr. Gila has primarily focused on the Fixed Income side, he has added value to the Equity team and this strategy. • The firm's philosophy centers on companies with attractive valuations, and more consistent/stable growth, which may compound value over time, particularly during periods of weakness. • The investment process combines both quantitative and fundamental criteria to identify stocks. • The team uses a proprietary factor model to sift through the investable universe, which includes stocks in the Russell 1000 Index with a market capitalization greater than $2 billion. • The model consists of 24 factors grouped into six groups: profitability, sales earnings and margin stability, earnings quality, price volatility, business valuation, and equity valuation. The 24 factors have different weights in each sector. For example, price volatility has a higher weight for Information Technology than Utilities. • The fundamental analysis seeks to confirm that the quantitative attributes are repeatable. • The team reviews the overall quantitative scoring (e.g., understanding where a stock scored well and didn't score well), financial statement analysis (e.g., looking for earnings and margin stability), evaluation of management's growth outlook, review of analyst research and estimate revisions, and a risk/reward analysis. • Approximately 70% of the research is generated in-house through proprietary models, and the remaining 30% is from external resources, primarily sell -side analysts. The sell -side research is used to better understand the Street's view of a particular company rather than to rely on the underlying rating of the security. • Important fundamental criteria to purchase a stock include a strong record of demonstrated earnings growth, positive changes in projected future earnings, reasonable earnings growth valuations, strong balance sheet and financial statement data, and viability of continued earnings growth. • The sell discipline is driven by deteriorating quantitative rankings, significant changes to company fundamentals, changes to the portfolio's risk profile and identification of a more attractive security. Please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley wealth Management 2 FOCUS LIST REPORT PORTFOLIO TRAITS ASSETS UNDER MANAGEMENT ($ MILLIONS) Range of Holdings 40-60 YEAR FIRM SMA Max. Position Size Greater of S% or Index + 2% 2Q23 2,183 647 Econ Sector Constraints +/ 10% vs. Index 2022 2,108 606 Country Constraints +/ S% vs. Index 2021 2,926 866 Typical Annual Turnover —30% 2020 3,22S 946 Invests in ADRs No 2019 3,041 1,009 Invests in ETFs No 2018 3,S22 1,7S2 Invests in Derivatives No 2017 3,8S2 1,908 Invests in IPOs No 2016 3,800 1,907 Max. Cash <S% Source: Sawgrass Typical Cash Position <S% Source: Sawgrass OWNERSHIP & PARENT COMPANY Name of Owner Employees Percentage Owned 100% Publicly Traded No Ticker Symbol N/A Source: Sawgrass please refer to important information, disclosures and qualifications at the end of this material. Morgan Stanley Wealth Management 3 FOCUS LIST REPORT Disclosure Section Definitions Russell. 1000 - Russell 1000 Index measures the performance of the 1,000 largest US companies based on total market capitalization Sub -Styles - Subjective classifications designed to assist with manager selection and performance evaluation based on GIMA's understanding of a manager's long-term investment philosophy and portfolio structuring biases and techniques. At points in time managers may display attributes of other sub -style classifications, and these classifications may change due to changes in the capital markets, evolution of performance benchmarks, industry trends, or changes involving a manager's personnel or process. Conservative Growth - Growth managers that generally follow a more valuation -sensitive approach and focus on more established companies that frequently have longer earnings histories and greater visibility and perceived sustainability in earnings. Portfolios may display Lower valuation Levels and Less exposure to the highest growth and more speculative companies and performance may display less volatility than the benchmark and peers. Glossary of Terms Active Share — is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index; Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the manager's portfolio versus the weight of each holding in the benchmark index and dividing by two. ADRs — American Depositary Receipts are U.S. dollar denominated forms of equity ownership in non-U.S. companies. These shares are issued against the local market shares held in the home market. ADRs are typically listed on U.S. exchanges such as NYSE, AMEX and NASDAQ. Alpha — measures the difference between a portfolo's actual returns and its expected performance, given its level of risk as measured by Beta. A positive Alpha figure indicates the portfolio has performed better than its Beta would predict. A negative Alpha indicates the portfolio's underperformance given the expectations established by the Beta. The accuracy of the Alpha is therefore dependent on the accuracy of the Beta. Alpha is often viewed as a measurement of the value added or subtracted by a portfolio's manager. Beta — measures a portfolio's volatility relative to its benchmark. A portfolio with a Beta higher than 1.0 has historically been more volatile than the benchmark, while a portfolio with a Beta lower than 1.0 has been less volatile. The accuracy of the Beta is dependent on R-Squared. Correlation — measures the degree to which the returns of two securities or indices are related. The range of possible correlations is between 1.0 and -1.0. Positive correlation indicates that returns tend to move in the same direction. Negative correlation indicates that returns tend to move in opposite directions. Zero correlation implies that there is no relationship between the securities' returns. EPS Growth — 5 Year Historical — The weighted average annualized earnings per share growth for a portfolio over the past five years. EPS Growth — Forecast — a measure of one year earnings (cash flow or dividends) per share growth from the prior fiscal year (FYO) to the current fiscal year (FYI) using analyst consensus forecasts. Growth is expressed as a percent. The FYI EPS (earnings per share) growth rate for the portfolio is a weighted average of the forecasts for the individual stocks in the portfolio. Excess Return — represents the average quarterly total return of the portfolio relative to its benchmark. A portfolio with a positive Excess Return has on average outperformed its benchmark on a quarterly basis. This statistic is obtained by subtracting the benchmark return from the portfoho's return. Historical EPS Growth - calculated by regressing over time the quarterly earnings per share for the past 20 quarters to determine the share's historical growth rate in earnings. The quarterly historical growth rate for each share is then annualized and the Historical EPS Growth shown in this report is the weighted average of these results. Information Ratio — represents the Excess Return divided by the Tracking Error. It provides a measure of the historical consistency of the portfolio's outperformance or underperformance relative to its benchmark. A higher, positive Information Ratio suggests that the portfolio's excess returns may have been the result of making measured or moderate bets against the relevant benchmark's risk exposures. Long Term EPS Growth Rate — analyst consensus of expected annual increase in operating earnings per share over the company's next full business cycle - usually three to five years. The Long Term EPS Growth Rate for the portfolio is a weighted average of the results for the individual stocks in the portfolio. P/E - Forecast 12-Mo. — The price/earnings ratio for the stock based on the most recent closing price divided by the annual mean expected earnings for the current fiscal year (FYI EPS forecast). P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. WE — Trailing 12-Mo. — the current price of a stock divided by the most recent 12 months trailing earnings per share. P/E for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Price -to -Book — price per share divided by book value per share. Price -to -Book for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Return on Equity (ROE) — is another profitability ratio which gauges return on investment by measuring how effectually stockholder money is being employed by the company. ROE is calculated by dividing a company's net income by average total equity. Unlike Return on Assets (ROA), ROE considers the degree to which a company uses leveraging, as interest expense paid to creditors is generally deducted from earnings to arrive at net income. ROE for the portfolio is a weighted average of the results for the individual stocks in the portfolio. Morgan Stanley Wealth Management 4 FOCUS LIST REPORT R-Squared (R2) — represents the percentage of the volatility of returns that is attributable to movements of the benchmark. It is a measure of "co -movement" between portfolio returns and benchmark returns. The closer the portfolio's R2 is to 100%, the more closely the portfolio correlates to, or follows, the benchmark. Generally, highly diversified portfolios have higher R2 percentages. Sharpe Ratio — measures a portfolio's rate of return based on the risk it assumed and is often referred to as its risk -adjusted performance. Using Standard Deviation and returns in excess of the returns of T-bills, it determines reward per unit of risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing risk. Standard Deviation — quantifies the volatility associated with a portfolio's returns. The statistic measures the variation in returns around the mean return. Unlike Beta, which measures volatility relative to the aggregate market, Standard Deviation measures the absolute volatility of a portfolio's return. Tracking Error — represents the Standard Deviation of the Excess Return. This provides a historical measure of the variability of the portfolio's returns relative to its benchmark. A portfolio with a Low Tracking Error would have quarterly Excess Returns that have exhibited very Low volatility. Important Disclosures The summary at the beginning of the report may have been generated with the assistance of artificial intelligence (AI). J3eport for Use Only in Investment Advisont Programs This report is only to be used in Morgan Stanley Wealth Management investment advisory programs and not in connection with brokerage accounts. This report relates to one of the share classes that is offered in the investment advisory programs and may not be the share class that you own or that is currently available in the investment advisory programs you have or in which you may invest. Typically, GIMA will select the share class with the Longest performance track record. Mutual fund fees, expenses and performance may differ for different share classes. More information regarding the fees, expenses and performance (but not including the Morgan Stanley Wealth Management program fee) is available at the website set out on the cover of the report. The Global Investment Manager Analvsis (GIMA) services OnLv Apply to Certain Investment Advisory Programs GIMA evaluates certain investment products for the purposes of some — but not aLL — of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA status changes even though it may give notice to clients in other programs. Focus List, Approved List and Tactical ODDortunities List, Watch Policy GIMA uses two methods to evaluate investment products in applicable advisory programs: Focus (and investment products meeting this standard are described as being on the Focus List) and Approved (and investment products meeting this standard are described as being on the Approved List). In general, Focus entails a more thorough evaluation of an investment product than Approved. Sometimes an investment product may be evaluated using the Focus List process but then placed on the Approved List instead of the Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under either process and will no Longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a "Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved" The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. GIMA may, but is not obligated to, note the Watch status in this report with a "W" or "Watch" next to the "Status' on the cover page. Certain investment products on either the Focus List or Approved List may also be recommended for the Tactical Opportunities List based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change over time. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "GIMA at a Glance." No Obligation to Update Morgan Stanley Wealth Management has no obligation to update you when any information or opinion in this report changes. Strategy May Be Available as a Separately Managed Account or Mutual Fund Strategies are sometimes available in Morgan Stanley Wealth Management investment advisory programs both in the form of a separately managed account ("SMA") and a mutual fund. These may have different expenses and investment minimums. Your Financial Advisor or Private Wealth Advisor can provide more information on whether any particular strategy is available in more than one form in a particular investment advisory program. Morgan Stanley or Executing Sub -Managers, as applicable, in some of Morgan Stanley's Separately Managed Account C'SMA'D programs may Morgan Stanley Wealth Management 5 FOCUS LIST REPORT effect transactions through broker -dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: wwyv�norg nsta Ley.com/wealth/inyestrr�e tsolutions/pdfs/adv/sotresoonse.Ddf. For more information on trading and costs, please refer to the ADV Broc�ure or your program(s), availZle at www.morRanstanLev.com/ADV, or contact your Financial Advisor / Private Wealth Advisor. Consider Your Own Investment Needs This report is not intended to be a client -specific appropriateness analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities (includes securities of Morgan Stanley, and/or their affiliates if shown in this report). Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Performance and Other Portfolio Information General Past performance does not guarantee future results. There is no guarantee that this investment strategy will work under aLL market conditions. As a result of recent market activity, current performance may vary from the performance referenced in this report. For mutual funds, the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance information, current to the most recent month -end, please contact the fund directly at the website set out on the cover page of this report. Performance results are time weighted and include all cash and cash equivalents, realized and unrealized capital gains and losses, and reinvestment of dividends, interest and other income. From time to time, the fund's investment manager may waive some fees and/or reimburse some expenses. Without these waivers and reimbursements, performance would be lower. Waivers and/or reimbursements are subject to change. Fund performance since inception begins with the first full month of fund's operation. Performance results are annualized for periods greater than one year. Returns for periods of less than a calendar year show the total return for the period and are not annualized. Performance results may be presented in a currency other than the currency of the country in which you live. Your actual return on this investment product may increase or decrease with fluctuations between currencies. Return (NAV) Net asset value (NAV) performance data is net of the fund's internal fees and expenses (such as the investment management fee that the fund pays to the fund's investment advisor, and any 12b-1 fees). It does not reflect any sales charges that could apply if you bought fund shares outside an investment advisory program, nor the program fees you would pay if you bought fund shares in an advisory program. Returns net of r)rogram fees You will pay a Morgan Stanley Wealth Management program fee if you invest in this fund through a Morgan Stanley Wealth Management investment advisory program. See applicable Form ADV brochure for Morgan Stanley Wealth Management for an explanation of the applicable fees and charges. The net performance shown in this report reflects a deduction of a 0.50% quarterly fee (equivalent to a 2.00% annual fee). Fees are deducted quarterly in many Morgan Stanley Wealth Management investment advisory programs. The quarterly deduction has a compounding effect on performance. Actual client performance may differ from investment returns detailed in this report. Net performance does not reflect the deduction of any sales load Benchmark index Depending on the composition of your account and your investment objectives, any indices shown in this report may not be an appropriate measure for comparison purposes and are therefore presented for illustration only. Indices are unmanaged. They do not reflect any management, custody, transaction or other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Past performance of indices does not guarantee future results. You cannot invest directly in an index. Performance of indices may be more or Less volatile than any investment product. The risk of loss in value of a specific investment (such as with an investment manager or in a fund) is not the same as the risk of loss in a broad market index. Therefore, the historical returns of an index will not be the same as the historical returns of a particular investment product.. Other Data Portfolio analysis may be based on information on less than all of the securities held in the portfolio. For equity portfolios, the analysis typically reflects securities representing at Least 95% of portfolio assets. This may differ for other strategies, including those in the fixed income and specialty asset classes, due to availability of portfolio information. Other data in this report is accurate as of the date this report was prepared unless stated otherwise. Data in this report may be calculated by Morgan Stanley Wealth Management 6 FOCUS LIST REPORT the investment manager, Morgan Stanley Wealth Management or a third party service provider, and may be based on a representative account or a composite of accounts. Economic Sector Allocations and Largest Holdings are accurate as of the most recent quarter end for which information was available when this report was prepared, and are subject to change at any time. The Largest Holdings lists indicate the largest security holdings in the index, and Economic Sector Allocations are based on industry standard sector identification codes. Both are measured as a percentage of the total portfolio in terms of asset value as of the date indicated above. Securities holdings Holdings are subject to change daily, so any securities discussed in this report may or may not be included in the fund's holdings if you invest in this investment product. The fund may also hold other securities in addition to or instead of any securities discussed in this report. Do not assume that any holdings mentioned were, or will be, profitable. Sources of Data Material in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or timeliness of the data they provide and are not liable for any damages relating to this data. Asset Class and Other Risks Investing in stocks, mutual funds and exchange -traded funds (°ETFs) entails the risks of market volatility. The value of all types of investments may increase or decrease over varying time periods. Besides 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 underperformance, and potential leverage. Some funds also invest in foreign securities, which may involve currency risk. Value and growth investing also carry risks. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Small- and mid- capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of smaLL capitalization companies may not trade as readily as, and be subject to higher volatility than, those of larger, more established companies. Companies paying dividends can reduce or cut payouts at any time. International securities may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets and frontier markets. 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 diversified or where decisions are based solely on investment considerations. Because Impact Investing criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Technology stocks may be especially volatile. No Tax Advice Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ("Morgan Stanley"), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or Legal advice and are not "fiduciaries" `under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanLey.com/disclosures/doL. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. If any investments in this report are described as "tax free", the income from these investments may be subject to state and local taxes and (if applicable) the federal Alternative Minimum Tax. Realized capital gains on these investments may be subject to federal, state and Local capital gains tax. Hyperlinks This material may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm has not reviewed the linked site. Equally, except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm takes no responsibility for, and makes no representations or warranties whatsoever as to, the data and information contained therein. Such address or hyperlink (including addresses or hyperlinks to website material of Morgan Stanley Wealth Management) is provided solely for your convenience and information and the content of the Morgan Stanley Wealth Management 7 FOCUS LIST REPORT Linked site does not in any way form part of this document. Accessing such website or following such link through the material or the website of the firm shaLL be at your own risk and we shall have no Liability arising out of, or in connection with, any such referenced website. By providing links to third -party websites or online publication(s) or article(s), Morgan Stanley Smith Barney LLC ("Morgan Stanley') is not implying an affiliation, sponsorship, endorsement, approval, investigation, verification with the third parties or that any monitoring is being done by Morgan Stanley of any information contained within the articles or websites. Morgan Stanley is not responsible for the information contained on the third -party websites or your use of or inability to use such site. Nor do we guarantee their accuracy and completeness. The terms, conditions, and privacy policy of any third -party website may be different from those applicable to your use of any Morgan Stanley website. The information and data provided by the third -party websites or publications are as of the date when they were written and subject to change without notice. Conflicts of Interest GIMA's goal is to provide professional, objective evaluations in support of the Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, we also believe that investors are entitled to full disclosure of conflicts of interests which could affect the objectivity of our Manager Profiles. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan Stanley Wealth Management or its affiliates. Such persons may have an ongoing business relationship with certain investment managers or mutual fund companies whereby they, Morgan Stanley Wealth Management or its affiliates 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 recommendation is permissible, GIMA is responsible for the opinions expressed by GIMA. Separately, certain strategies managed or sub -advised by us or our affiliates, including but not limited to MSIM and Eaton Vance Management (" EVM'D and its investment affiliates, may be included in your account. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of other types of conflicts that may be relevant to GIMA's evaluation of managers and funds. In addition, Morgan Stanley Wealth Management, MS&Co., managers and their affiliates provide a variety of services (including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts, and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS&Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. 2023 Morgan Stanley Smith Barney LLC. Member SIPC. RS11696002348025 09/2023 Morgan Stanley Wealth Management 8